Scorpio Tankers (NYSE:STNG) Releases Earnings Results, Beats Estimates By $0.25 EPS

Scorpio Tankers (NYSE:STNG) released its quarterly earnings results on Thursday. The shipping company reported $1.62 EPS for the quarter, beating the consensus estimate of $1.37 by $0.25, FiscalAI reports. The business had revenue of $241.42 million for the quarter, compared to analysts’ expectations of $238.93 million. Scorpio Tankers had a net margin of 32.01% and a return on equity of 7.42%. Scorpio Tankers’s revenue was up 23.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.63 earnings per share.

Here are the key takeaways from Scorpio Tankers’ conference call:

• Net cash and liquidity: Scorpio reduced net debt from $3.1 billion in 2021 to a net cash position (~$309 million today) and holds approximately $1.7 billion of available liquidity, giving the company strong balance-sheet flexibility to fund newbuilds or opportunistic actions.
• Strong 2025 results and low breakeven: The company reported $152 million of Adjusted EBITDA in Q4 and $568 million for the full year (IFRS net income $344 million), with a record low cash break-even of about $11,000/day per vessel, implying significant free cash flow potential at current rates.
• Shareholder returns increased: Scorpio raised its quarterly dividend to $0.45 per share (up 12.5% YoY) and signaled intent to grow and sustain the payout through the cycle, supported by structural cash generation.
• Supportive market fundamentals: Management highlighted five consecutive quarters of improving rates, rising ton-mile demand from refinery relocations, LR2 crossover into crude trades, and sanctions that tighten effective supply—factors they view as structurally supportive of higher product-tanker rates.
• Fleet and capital discipline: the company sold 10 older vessels, contracted 10 modern newbuilds, prepaid ~$154.6 million of secured debt and remains opportunistic on S&P or M&A, but acknowledges shipping is cyclical and outcomes depend on future market conditions.

Scorpio Tankers Trading Down 2.9%

NYSE STNG opened at $67.86 on Friday. The company has a market cap of $3.46 billion, a price-to-earnings ratio of 11.48 and a beta of -0.25. Scorpio Tankers has a twelve month low of $30.63 and a twelve month high of $71.48. The company has a quick ratio of 4.75, a current ratio of 4.81 and a debt-to-equity ratio of 0.25. The business’s fifty day moving average is $57.02 and its 200 day moving average is $55.85.

Scorpio Tankers Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, March 6th. This is a positive change from Scorpio Tankers’s previous quarterly dividend of $0.42. Scorpio Tankers’s dividend payout ratio is currently 28.43%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Scorpio Tankers in a research note on Monday, December 29th. Jefferies Financial Group reissued a “buy” rating and set a $70.00 price objective on shares of Scorpio Tankers in a research note on Thursday, October 30th. Bank of America cut shares of Scorpio Tankers from a “buy” rating to an “underperform” rating in a report on Friday, January 9th. Evercore set a $80.00 price objective on Scorpio Tankers and gave the stock an “outperform” rating in a report on Monday, November 3rd. Finally, B. Riley Financial reiterated a “buy” rating and issued a $80.00 price target (up from $75.00) on shares of Scorpio Tankers in a research note on Thursday, October 16th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Scorpio Tankers currently has a consensus rating of “Hold” and an average price target of $71.83.

Key Stories Impacting Scorpio Tankers

Here are the key news stories impacting Scorpio Tankers this week:

• Positive Sentiment: Q4 beat — STNG reported $1.62 EPS vs. ~ $1.30 consensus and revenue +23.8% y/y, showing materially stronger earnings and margin expansion versus last year; this underpins the stock’s fundamental rally. GlobeNewswire
• Positive Sentiment: Dividend hike — the board raised the quarterly cash dividend to $0.45/sh (7.1% q/q increase), implying a ~2.7% yield and signaling confidence in cash flow and capital return policy. Ex‑dividend date: Mar 6; pay date: Mar 20. Dividend Release
• Positive Sentiment: Analyst lift — BTIG raised its price target from $80 to $85 and maintains a Buy, offering roughly low‑to‑mid‑20s% upside from current levels; analyst support can sustain investor interest. Benzinga
• Neutral Sentiment: Newbuild options — the company exercised options for two additional newbuildings in China (lifting the Dalian order to four ships), expanding the forward fleet pipeline; this increases tonnage growth potential but adds capex/timing considerations. Tradewinds
• Neutral Sentiment: Fleet strategy comment — CEO Robert Bugbee said Scorpio is not ordering additional VLCCs (very large crude carriers), clarifying growth focus and limiting exposure to the VLCC segment; investors should view this as strategic posture rather than an immediate earnings driver. Tradewinds – VLCC comment
• Neutral Sentiment: Supplementary disclosure — full Q4 earnings transcript and slide deck are available for details on rates, utilization and capital allocation; useful for modeling forward cash flow but contain no surprise headline. Earnings Transcript Slide Deck

Institutional Trading of Scorpio Tankers

A number of hedge funds have recently made changes to their positions in the company. Global Retirement Partners LLC grew its holdings in Scorpio Tankers by 1,645.2% during the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock worth $27,000 after acquiring an additional 510 shares during the period. Zions Bancorporation National Association UT bought a new stake in shares of Scorpio Tankers during the 4th quarter valued at about $29,000. Quantbot Technologies LP acquired a new stake in Scorpio Tankers during the third quarter worth approximately $36,000. Larson Financial Group LLC lifted its stake in Scorpio Tankers by 122.8% in the third quarter. Larson Financial Group LLC now owns 851 shares of the shipping company’s stock valued at $48,000 after buying an additional 469 shares during the period. Finally, Quarry LP bought a new stake in shares of Scorpio Tankers in the 3rd quarter valued at $53,000. 54.64% of the stock is owned by institutional investors and hedge funds.

Scorpio Tankers Company Profile

Scorpio Tankers Inc (NYSE: STNG) is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.