Scorpio Tankers Inc. (STNG)

Scorpio Tankers reported net income of $224.3 million, or $4.60 diluted earnings per share, for the third quarter of 2026 in a release of 28 October 2026 1. The quarter included a $152.6 million gain on sales of vessels and a $55.6 million fair value loss on financial liabilities 1. Without both items, adjusted net income was $127.4 million, against $72.7 million a year earlier 1.

Time charter equivalent revenue, which is vessel revenue less voyage costs such as fuel and port charges, rose to $249.1 million from $232.9 million, even though the average fleet shrank to 75.1 vessels from 99.0 1. Average daily earnings per vessel rose to $37,508 from $26,231 1. The company called it a substantially stronger product tanker market and pointed to the conflict in the Middle East, which lengthened refined product voyages 1.

The board declared a quarterly dividend of $0.75 per share, payable on 4 December 2026 to holders of record on 13 November 2026, up from the $0.45 paid in August 2026 1. The company held $2.1 billion in unrestricted cash as of 26 October 2026 1.

In October 2026 the company bought 2,400,000 shares of Volare Shipping Ltd. for $38.4 million, a passive stake of about 3.4 percent in a company that owns large crude tankers 1. Its order book now includes four very large crude carriers, called VLCCs, beside product tankers 1.

Scorpio Tankers was incorporated in the Marshall Islands on 1 July 2009 and began operating in October 2009 with three vessels 2. It completed its initial public offering in April 2010, and its shares began trading on the New York Stock Exchange under the symbol STNG 2.

In September 2017 it acquired Navig8 Product Tankers Inc. and assumed that company's debt and a lease on four LR2 tankers 2. Its annual report lists the former Navig8 company among its subsidiaries today 8.

Revenue fell 41 percent in 2021 to $540.8 million from $915.9 million in 2020 5. Average daily earnings per vessel, shown as TCE, dropped to $11,466 from $19,655 5. The company blamed adverse market conditions and a steep decline in the use of refined petroleum products 5.

Revenue rose 189 percent in 2022 to $1.6 billion, and daily earnings per vessel rose to $34,878 from $11,466 3. The company credited record refining margins, high refinery use and low inventories, which pushed fuel exports from regions such as the U.S. Gulf 3.

Revenue slipped 14 percent in 2023 to $1,341.2 million 4. Income from time charters, where a customer hires a ship for a fixed period at a fixed daily rate, rose to $153.3 million from $48.2 million 4.

Revenue fell again in 2025, by 25 percent to $938.2 million from $1,244.0 million in 2024 2. The 2024 figure had been lifted in the first half by spikes in spot rates after conflict in the Middle East and attacks on ships in the Red Sea 2. Net income was $344.3 million against $668.8 million 2.

Demand held up in 2023 for the company's ships, which the 20-F tied to growing consumption of refined petroleum products and a modest orderbook of new ships 4.

In 2025 average daily earnings per vessel fell to $25,964 from $32,573, and revenue days, the days ships were available to earn, fell to 34,816 from 37,263 2.

The company said the drop in pool and spot revenue was largely an adjustment to the shipping disruptions of 2024 2. Income from time charters rose to $170.2 million from $153.9 million 2.

It sold 12 vessels in 2024 and six in 2025, and its gain on vessel sales was $176.5 million in 2024 and $45.5 million in 2025 2. That cut the number of ships earning revenue and with it the vessel operating costs 2.

The business and the fleet

Scorpio Tankers provides seaborne transportation of refined petroleum products, meaning fuels such as diesel and gasoline carried in ships 2. Its 28 October 2026 release says it owns 74 product tankers: 25 LR2, 35 MR and 14 Handymax, with an average age of 10.3 years 1. The classes are sizes of ship, LR2 the largest of the three 1.

LR2 tankers

LR2 tankers earned $55,184 per day in the third quarter of 2026, against $31,482 a year earlier 1. The company said tight LR2 supply helped, because larger vessels stayed employed in crude trades 1. LR2s in pools or on the spot market averaged $72,283 per day in the quarter 1.

For the fourth quarter so far, the company reported LR2 pool and spot bookings of $181,000 per day for 44 percent of available days 1. Its LR2 time charters out of the pool were at $32,150 per day 1.

MR and Handymax tankers

MR tankers in pools or the spot market averaged $31,183 per day in the third quarter, and Handymax tankers $24,253 1. The company said MR and Handymax rates strengthened as the quarter went on, helped by rising export volumes from the U.S. Gulf and Asia 1.

One MR, STI Bosphorus, is on a bareboat charter at $13,150 per day to a joint venture that flagged it in the United States for the Tanker Security Program 2. Under a bareboat charter the customer crews and runs the ship 2.

How the ships earn

The company puts ships in commercial pools run by a related company, on time charters, or in the spot market 2. Seventy-two ships were in the Scorpio pools as of 19 March 2026 2. A pool combines many owners' ships so that cargoes and return trips can be planned together 2.

Recent fixed hires include STI Jermyn for three years at $42,500 per day, from October 2026, and STI Gladiator for three years at $40,188 per day, from September 2026 1. STI Rambla was hired out for eight years at $30,500 per day from March 2026 1.

Ship sales and new ships

In July 2026 the company closed the sale of four LR2 tankers for $285.8 million in total and one MR for $35.0 million 1. In September 2026 it agreed to sell three more: STI Dama for $37.5 million, STI Elysees for $70.0 million and STI Veneto for $73.0 million 1.

In August and September 2026 it agreed to buy four LR2 newbuildings at $72.8 million each from Jiangsu Hantong in China 1. In September 2026 it agreed to buy two VLCCs at $135.0 million each from Hengli Shipbuilding (Dalian) 1.

The people

Emanuele Lauro is founder, chairman and chief executive, Robert Bugbee is president, Cameron Mackey is chief operating officer and Christopher Avella is chief financial officer 2. The company had 24 shore-based employees at the end of 2025, and its ships are crewed and run through related managers 2.

On 7 October 2026 Charlotte Wheatcroft became secretary, after Auste Adelborg resigned 6. On 17 August 2026 the board named Andrea Lupo Lanzara a director to fill the seat of Marianne Økland, who resigned effective 15 August 2026 7.

Rivals and problems

Competition comes from other tanker owners, including major oil companies and independent tanker companies, some with greater resources, and the annual report names no single rival 2. Competition depends on price, location, size, age and condition of the ship 2.

The annual report says the military conflict in Iran has disrupted trade routes such as the Strait of Hormuz and could adversely affect the company 2. It also says the company has debt covenants that may limit dividends and the sale of vessels 2.

Gross debt was $655.0 million on 26 October 2026, of which $605.0 million is Convertible Notes due 2031, and net cash was $1,396.9 million 1. The company redeemed its 7.5% Senior Unsecured Notes due 2030 in July 2026 1.

The umbrella, in words

The company's commercial manager, Scorpio Commercial Management, its technical manager and its administrator are owned and controlled by the Lolli-Ghetti family, to which Emanuele and Filippo Lauro belong 2. These are agreed service arrangements, paid by fees, not stakes in the company 2.

Scorpio Holdings Limited, a related party, holds 6.5 percent of the common shares, BlackRock 6.7 percent and Dimensional Fund Advisors 5.8 percent as of 19 March 2026 2. The major shareholders have the same voting rights as other holders 2.

Stakes in other companies: the company owns about 3.4 percent of Volare Shipping, bought in October 2026 1. It has agreed to take a minority interest of under 15 percent in a joint venture building eight VLCCs 1. Its income statement also reports a share of income from a dual fuel tanker joint venture 1.

Its subsidiaries are mostly single-ship companies incorporated in the Marshall Islands, such as STI Acton Shipping Company Limited and STI Battersea Shipping Company Limited, each listed at 100 percent ownership 8.

As of 26 October 2026 the company listed commitments to build eight LR2, five MR and four VLCC tankers 1. It estimates remaining installment payments and the joint venture commitment at $1,295.9 million 1.

By its own schedule, one MR is due in the first quarter of 2027 and two MRs in the second quarter 1. Two LR2s are due in the third quarter of 2027, four VLCCs in 2028, six LR2s in 2029 and two MRs in 2030 1. The company says these installment payments are estimates only and may change 1.

The four LR2s bought from Hantong are expected one in each of the second and third quarters of 2029 and two in the fourth quarter of 2029 1. The two VLCCs from Hengli are expected in September and October 2028 1.

The joint venture's eight VLCCs have deliveries scheduled between the third quarter of 2029 and the second quarter of 2030 1. The company says it has until 31 October 2027 to draw on a new $90.0 million credit facility, meant for part of the cost of four MR newbuildings 1.

The sales of STI Elysees and STI Veneto, for $143.0 million in total, are expected to close in the fourth quarter of 2026 1. The charter of STI Pontiac and STI Bronx, each for three years at $23,900 per day, is expected to start in the fourth quarter of 2026 1.

For the fourth quarter so far, the company reported MR bookings of $56,000 per day for 47 percent of available days and Handymax bookings of $40,000 for 37 percent 1. These are the company's own figures for ships already fixed, not a forecast 1.

The company estimates drydock costs, when a ship is taken out of service for inspection and repair, of $11.3 million in the fourth quarter of 2026 and $9.2 million in the first quarter of 2027 1. It lists 212 and 184 off-hire days in those quarters 1.

The company's debt table shows no scheduled repayment before 2028 and $605.0 million of unsecured debt due in 2029 and thereafter 1.

The company reports $445.0 million remaining under its 2023 Securities Repurchase Program as of 28 October 2026 and did not repurchase shares in the third quarter 1. It says dividends depend on the board's discretion, earnings, cash needs and loan restrictions 1.