Navigating Contradictions: Insights from the Latest Earnings Call on Capital Allocation, Oil Demand, and Trade Dynamics

Financial Performance and Market Outlook:
* Scorpio Tankers generated $144.5 million in adjusted EBITDA and $67.8 million in adjusted net income for Q2 2025.
* The company reported a strong financial performance driven by robust demand for refined products and structural changes in global refining that are extending trade routes and increasing ton miles.

Liquidity and Debt Management:
* Scorpio Tankers has approximately $1.4 billion in liquidity, including cash, undrawn revolving credit, and its investment in DHT.
* The company has reduced its net debt balance by $2.5 billion since December 2021, maintaining a strong balance sheet and low cash breakeven of $12,500 per day.

Fleet Efficiency and Operational Strength:
* The company completed dry docks for 8 vessels in Q2 2025 and 71 vessels over the past 7 quarters, enhancing fleet efficiency and positioning for future quarters.
* Scorpio Tankers added one vessel on a 12-year bareboat charter, further demonstrating its operational strength and commitment to fleet renewal.

Strategic Capital Allocation and Shareholder Returns:
* The company sold 2.7 million shares in DHT at over $12 per share, realizing a 16% return on investment.
* Scorpio Tankers maintained a conservative approach to capital allocation due to global uncertainties, despite positive market outlook, focusing on maintaining financial strength and flexibility.