What is the market's earnings forecast for Scorpio Tankers next quarter?

Did Scorpio Tankers beat or miss consensus estimates last quarter?

What factors drove the changes in Scorpio Tankers's revenue and profit?

What is Scorpio Tankers's gross profit margin?

What were the key takeaways from Scorpio Tankers's earnings call?

What is the revenue and EPS growth rate for Scorpio Tankers year over year?

What guidance did Scorpio Tankers's management provide for the next earnings period?

What were the key takeaways from Scorpio Tankers’s earnings call?

- **Record Financials**: Q3 2025 EBITDA of $87.7 million and net income of $72.7 million, driven by strong product tanker rates and cost control.
- **Sustainable Growth**: 5% dividend increase and $154.6 million debt prepayment reduce breakeven to $11,000/day, enhancing cash flow resilience.
- **Market Strength**: Freight rates for MRs ($28,000/day) and LR2s ($35,000/day) reflect tightening supply amid geopolitical tensions and refinery closures.
- **Strategic Fleet**: Young fleet (average age 6.5 years) and disciplined vessel sales maintain operational efficiency, positioning Scorpio for long-term value creation.

**【Management Opening Remarks】**
Scorpio Tankers reported Q3 2025 results with $87.7 million in adjusted EBITDA and $72.7 million in adjusted net income. The company emphasized a strong balance sheet, reducing daily breakeven from $15,000 to $11,000 through debt repayment and cost control. A 5% dividend increase was announced, with plans to review dividends annually for sustainability.

**【CEO Commentary】**
CEO Emanuele Lauro highlighted the product tanker market's structural strength, driven by refined product demand, evolving trade patterns, and longer voyages. Freight rates for MRs ($28,000/day) and LR2s ($35,000/day) remain robust, supported by geopolitical tensions (e.g., Russian sanctions) and refinery closures. The company aims to reduce volatility through lower breakeven rates and increased charter coverage.

**【CFO Financial Commentary】**
CFO Chris Avella detailed financial performance: operating cash flow of $135 million (Q3) and $375 million (YTD). Debt prepayment of $154.6 million reduced net debt to $34 million (pro forma). Liquidity stands at $1.4 billion, including $627 million in cash. Cash breakeven rates are expected to fall to $11,000/day, enabling $315 million annual cash flow at $20,000/day rates.

**【Q&A Highlights】**
1. **Market Outlook**: Commercial Director Lars Nielsen noted record seaborne exports and tightening supply due to aging fleets. Q4 rates are expected to rise, with LR2s moving into crude trades, further restricting clean product tonnage.
2. **Fleet Strategy**: President Robert Bugbee emphasized maintaining a young fleet (average age 6.5 years) and selling older vessels to optimize utilization. No immediate plans for newbuilds unless market conditions justify.
3. **Geopolitical Risks**: Sanctions on Russian exports and U.S.-China trade dynamics were cited as drivers for higher rates. The company remains cautious on China's export quotas but sees limited impact on global markets.
4. **Dividend Policy**: The 5% dividend increase reflects confidence in cash flow stability. Future dividend growth will balance shareholder returns with fleet modernization needs.


Scorpio Tankers Inc. (STNG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

STNG

STNG fundamentals

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