Scorpio Tankers Inc. (STNG) Bundle
A Brief History of Scorpio Tankers Inc.
Scorpio Tankers Inc. (NYSE: STNG) is a leading international provider of marine transportation of petroleum products. The company's history dates back to its establishment in 2009, focusing on the acquisition and operation of a modern fleet of product tankers. As of 2024, Scorpio Tankers has evolved significantly, adapting to market conditions and expanding its operations globally.
Fleet Development
As of October 2024, Scorpio Tankers operates a fleet of approximately 104 vessels, including MR, LR2, and Handymax tankers. The average age of the fleet is relatively young, which helps in reducing operational costs and maintaining compliance with environmental regulations.
| Vessel Class | Number of Vessels | Average Age (Years) |
|---|---|---|
| MR | 52 | 6 |
| LR2 | 39 | 5 |
| Handymax | 14 | 7 |
Financial Performance
For the nine months ended September 30, 2024, Scorpio Tankers reported a net income of $600.2 million, or $12.18 per share, compared to $426.0 million, or $8.00 per share for the same period in 2023. The total revenue for the same period was $1.04 billion, marking a slight increase from $1.00 billion in 2023.
Quarterly Highlights
In Q3 2024, the company generated vessel revenue of $268.0 million, while operating expenses totaled $96.9 million. Adjusted EBITDA for the quarter was $166.1 million, reflecting a decrease compared to $200.3 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $158.7 million | $100.4 million |
| Revenue | $268.0 million | $291.2 million |
| Operating Expenses | $96.9 million | $149.8 million |
| Adjusted EBITDA | $166.1 million | $200.3 million |
Debt and Liquidity
As of September 30, 2024, Scorpio Tankers had total debt of approximately $1.0 billion, down from $2.0 billion the previous year. The company has been actively managing its debt, with significant repayments made throughout the year.
| Debt Component | Amount (in millions) |
|---|---|
| Total Debt | $1,008.4 |
| Cash and Cash Equivalents | $201.0 |
| Net Debt | $807.4 |
Recent Strategic Moves
In 2024, Scorpio Tankers engaged in strategic asset sales, including six MR product tankers for a total of $142.5 million. The company also invested $89.1 million in DHT Holdings, acquiring a 4.9% stake to strengthen its position in the crude tanker market.
Dividend Policy
Scorpio Tankers has maintained a consistent dividend policy, with a declared quarterly cash dividend of $0.40 per common share in October 2024. This reflects the company's strong cash flow generation capabilities.
| Quarter | Dividend per Share |
|---|---|
| Q1 2024 | $0.40 |
| Q2 2024 | $0.40 |
| Q3 2024 | $0.40 |
As of October 2024, Scorpio Tankers continues to demonstrate resilience in a challenging market environment, leveraging its modern fleet and strong financial position to capitalize on growth opportunities.
A Who Owns Scorpio Tankers Inc. (STNG)
Major Shareholders
As of October 28, 2024, Scorpio Tankers Inc. (STNG) has a total of 50,525,001 common shares outstanding. The ownership structure is as follows:
| Shareholder | Ownership (%) | Number of Shares |
|---|---|---|
| Scorpio Group Ltd. | 40.0% | 20,210,000 |
| BlackRock, Inc. | 10.5% | 5,303,000 |
| The Vanguard Group, Inc. | 8.2% | 4,155,000 |
| State Street Corporation | 5.9% | 2,973,000 |
| Other Institutional Investors | 35.4% | 17,934,001 |
Recent Financial Performance
For the three months ended September 30, 2024, Scorpio Tankers reported the following financial metrics:
- Net income: $158.7 million
- Basic earnings per share: $3.31
- Diluted earnings per share: $3.16
- Adjusted net income: $87.7 million
- Adjusted basic earnings per share: $1.83
- Adjusted diluted earnings per share: $1.75
For the nine months ended September 30, 2024:
- Net income: $600.2 million
- Basic earnings per share: $12.18
- Diluted earnings per share: $11.62
- Adjusted net income: $482.6 million
- Adjusted basic earnings per share: $9.79
- Adjusted diluted earnings per share: $9.34
Dividend History
Scorpio Tankers has declared the following dividends:
| Date Paid | Dividend per Common Share |
|---|---|
| March 2023 | $0.20 |
| June 2023 | $0.25 |
| September 2023 | $0.25 |
| December 2023 | $0.35 |
| March 2024 | $0.40 |
| June 2024 | $0.40 |
| September 2024 | $0.40 |
Recent Share Repurchase Activity
From July 1, 2024, through October 28, 2024, Scorpio Tankers repurchased:
- 3,362,410 common shares at an average price of $73.34 per share.
- A total of 4,049,064 shares since April 1, 2024, at an average price of $74.17 per share.
- As of October 28, 2024, $208.9 million remains available under the 2023 Securities Repurchase Program.
Debt Structure
As of September 30, 2024, Scorpio Tankers reported the following debt figures:
| Debt Type | Amount (in millions) |
|---|---|
| Current Portion of Long-term Debt | $126.4 |
| Long-term Debt | $699.5 |
| Total Debt | $826.0 |
Liquidity Position
As of September 30, 2024, Scorpio Tankers had:
- Cash and cash equivalents: $201.0 million
- Accounts receivable: $169.9 million
- Total current assets: $535.6 million
- Total non-current assets: $3,312.6 million
- Total assets: $3,848.2 million
Fleet Overview
As of October 29, 2024, Scorpio Tankers operates a fleet of:
- 104.8 average number of vessels during Q3 2024.
- Average daily TCE revenue: $28,488 per vessel.
- Vessel operating costs per day: $8,395.
Scorpio Tankers Inc. (STNG) Mission Statement
Company Overview
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. As of October 2024, the company owns or leases a fleet of 102 product tankers, which includes 39 LR2 tankers, 49 MR tankers, and 14 Handymax tankers. The average age of the fleet is approximately 8.6 years.
Mission Statement
The mission of Scorpio Tankers Inc. is to provide high-quality marine transportation services for petroleum products. The company emphasizes safety, efficiency, and environmental responsibility in its operations, aiming to meet the needs of its clients while adhering to regulatory standards.
Financial Performance
For the three months ended September 30, 2024, Scorpio Tankers reported a net income of $158.7 million, compared to $100.4 million in the same period of 2023. The earnings per share for this quarter were $3.31 basic and $3.16 diluted.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $158.7 | $100.4 | $600.2 | $426.0 |
| Adjusted Net Income (in millions) | $87.7 | $99.2 | $482.6 | $428.1 |
| Earnings Per Share (EPS) Basic | $3.31 | $2.01 | $12.18 | $8.00 |
| Earnings Per Share (EPS) Diluted | $3.16 | $1.93 | $11.62 | $7.68 |
| Total Revenue (in millions) | $267.99 | $291.18 | $1,039.98 | $1,004.91 |
Operational Highlights
Scorpio Tankers reported a Time Charter Equivalent (TCE) revenue of $258.2 million for Q3 2024, a decrease from $289.2 million in Q3 2023. The average daily TCE revenue per vessel increased to $28,488 in Q3 2024, up from $28,313 in Q3 2023.
Fleet and Charter Information
The company’s fleet composition as of October 2024 includes:
- 39 LR2 tankers
- 49 MR tankers
- 14 Handymax tankers
Dividend Policy
On October 28, 2024, Scorpio Tankers declared a quarterly cash dividend of $0.40 per common share, scheduled for payment on December 13, 2024. The company has consistently paid dividends, with the following amounts declared in 2024:
| Date Paid | Dividend per Common Share |
|---|---|
| March 2024 | $0.40 |
| June 2024 | $0.40 |
| September 2024 | $0.40 |
Market Position and Strategy
Scorpio Tankers is strategically focused on maintaining a modern fleet and optimizing its operational efficiency. The company actively engages in the sale of older vessels and reinvestment into newer, more efficient tankers to enhance its market position.
Debt and Financial Health
The company’s average indebtedness decreased to $1.0 billion during Q3 2024, down from $2.0 billion in Q3 2023. This reduction is part of the company’s deleveraging efforts over the past year.
Recent Transactions
During Q3 2024, Scorpio Tankers executed the sale of six MR product tankers for a total of $142.5 million. Additionally, the company invested $89.1 million in DHT Holdings Inc., acquiring approximately 4.9% of the outstanding shares.
How Scorpio Tankers Inc. (STNG) Works
Business Model
Scorpio Tankers Inc. operates within the maritime shipping industry, focusing on the transportation of refined petroleum products. The company employs a mixed chartering strategy that includes spot market charters, time charters, and pool arrangements to maximize revenue opportunities based on market conditions.
Fleet Overview
As of September 30, 2024, Scorpio Tankers Inc. operated a fleet of 104.8 vessels on average, with a breakdown of vessel types as follows:
| Vessel Type | Number of Vessels | Average Daily TCE Revenue (2024) | Average Daily Operating Costs (2024) |
|---|---|---|---|
| LR2 | 39 | $36,288 | $9,043 |
| MR | 51.8 | $24,823 | $8,092 |
| Handymax | 14 | $19,605 | $7,705 |
Financial Performance
For the three months ended September 30, 2024, Scorpio Tankers reported the following financial results:
- Net Income: $158.7 million
- Adjusted Net Income: $87.7 million
- Earnings Per Share (EPS): $3.31 (basic), $3.16 (diluted)
- Adjusted EPS: $1.83 (basic), $1.75 (diluted)
- Total Revenue: $267.986 million
- Total Operating Expenses: $80.943 million (Vessel Operating Costs)
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue components included:
| Category | Amount (in thousands USD) |
|---|---|
| Vessel Revenue | $1,039,982 |
| Voyage Expenses | ($18,547) |
| TCE Revenue | $1,021,435 |
Operating Costs
The company's operating costs for the three months ended September 30, 2024, were categorized as follows:
| Cost Type | Amount (in thousands USD) |
|---|---|
| Vessel Operating Costs | $80,943 |
| Depreciation (Owned Vessels) | $45,512 |
| General and Administrative Expenses | $29,991 |
Debt and Financing
As of September 30, 2024, Scorpio Tankers had the following debt profile:
| Debt Type | Amount (in thousands USD) |
|---|---|
| Current Portion of Long-term Debt | $126,422 |
| Long-term Debt | $699,537 |
| Total Liabilities | $1,008,417 |
Cash Flow Analysis
For the nine months ended September 30, 2024, the cash flow from operating activities was:
| Cash Flow Type | Amount (in thousands USD) |
|---|---|
| Net Cash Inflow from Operating Activities | $711,942 |
| Net Cash Inflow from Investing Activities | $189,309 |
| Net Cash Outflow from Financing Activities | ($1,055,801) |
Dividend Policy
Scorpio Tankers has consistently paid dividends, with the most recent quarterly dividend declared on October 28, 2024, at:
| Date Paid | Dividend per Common Share |
|---|---|
| September 2024 | $0.40 |
Scorpio Tankers Inc. demonstrates a robust operational model with a strong focus on fleet management and financial prudence, ensuring adaptability within the fluctuating maritime shipping market.
How Scorpio Tankers Inc. (STNG) Makes Money
Revenue Generation through Time Charter Equivalent (TCE)
Scorpio Tankers Inc. generates revenue primarily through Time Charter Equivalent (TCE) earnings, which measure the company's vessel revenues after deducting voyage expenses. For the three months ended September 30, 2024, the TCE revenue was $258.2 million, a decrease from $289.2 million in the same period of 2023.
| Period | Vessel Revenue (USD thousands) | Voyage Expenses (USD thousands) | TCE Revenue (USD thousands) |
|---|---|---|---|
| Q3 2024 | 267,986 | (9,785) | 258,201 |
| Q3 2023 | 291,179 | (1,985) | 289,194 |
Operating Expenses and Cost Management
The operating expenses for Scorpio Tankers include vessel operating costs, depreciation, and general administrative expenses. For the three months ended September 30, 2024, the total operating expenses were $96.9 million, down from $149.8 million in the same quarter of 2023.
| Expense Type | Q3 2024 (USD thousands) | Q3 2023 (USD thousands) |
|---|---|---|
| Vessel Operating Costs | (80,943) | (79,113) |
| Depreciation | (45,512) | (47,016) |
| General and Administrative Expenses | (29,991) | (24,647) |
Net Income and Adjusted EBITDA
Scorpio Tankers reported a net income of $158.7 million for the third quarter of 2024, compared to $100.4 million in the same period of 2023. The adjusted EBITDA for the same period was $166.1 million, down from $200.3 million year-over-year.
| Metric | Q3 2024 (USD thousands) | Q3 2023 (USD thousands) |
|---|---|---|
| Net Income | 158,705 | 100,368 |
| Adjusted EBITDA | 166,080 | 200,284 |
Fleet Utilization and Charter Rates
The average daily TCE revenue per vessel for Scorpio Tankers was $28,488 for the three months ended September 30, 2024, compared to $28,313 in the same period of 2023. The average number of vessels in operation decreased to 104.8 from 112.1 year-over-year.
| Vessel Class | Average Daily TCE Revenue (USD) | Average Number of Vessels |
|---|---|---|
| LR2 | 36,288 | 39.0 |
| MR | 24,823 | 51.8 |
| Handymax | 19,605 | 14.0 |
Sales of Vessels
In 2024, Scorpio Tankers engaged in strategic sales of vessels to optimize its fleet. During Q3 2024, the company sold six MR product tankers for a total of $142.5 million. These sales did not result in debt repayments as the vessels were unencumbered at the time of sale.
| Vessel | Sale Price (USD millions) | Year Built |
|---|---|---|
| STI Garnet | 42.5 | 2012 |
| STI Onyx | 42.5 | 2012 |
| STI Ruby | 42.5 | 2012 |
| STI Topaz | 42.5 | 2012 |
| STI Beryl | 36.6 | 2013 |
| STI Manhattan | 40.8 | 2015 |
Dividend Payouts and Share Buybacks
Scorpio Tankers has maintained a consistent dividend payout, declaring a quarterly cash dividend of $0.40 per common share in October 2024. The company has also engaged in share repurchase programs, buying back 3,362,410 shares at an average price of $73.34 per share from July to October 2024.
| Date Paid | Dividend per Share (USD) |
|---|---|
| March 2023 | 0.20 |
| June 2023 | 0.25 |
| September 2023 | 0.25 |
| December 2023 | 0.35 |
| March 2024 | 0.40 |
| June 2024 | 0.40 |
| September 2024 | 0.40 |
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Article updated on 8 Nov 2024
Resources:
- Scorpio Tankers Inc. (STNG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Scorpio Tankers Inc. (STNG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Scorpio Tankers Inc. (STNG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.