Scorpio Tankers (STNG)
NYSE:STNG
Advertisement

Scorpio Tankers (STNG) AI Stock Analysis

Compare
1,154 Followers

Top Page

STNG

Scorpio Tankers

(NYSE:STNG)

Select Model
Select Model
Select Model
Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$69.00
▲(11.56% Upside)
Scorpio Tankers' strong earnings call performance and positive technical indicators are the most significant factors driving the score. The company's solid profitability and strategic financial management further support its position. However, challenges in revenue and cash flow growth, along with geopolitical uncertainties, present risks that temper the overall score.
Positive Factors
Strong Liquidity Position
A robust liquidity position ensures Scorpio Tankers can navigate market uncertainties and invest in growth opportunities, supporting long-term stability.
Debt Prepayment Strategy
Prepaying debt improves financial flexibility and reduces interest expenses, enhancing Scorpio Tankers' ability to manage future financial obligations.
Modern Fleet and Market Position
A modern fleet enhances operational efficiency and competitiveness, positioning Scorpio Tankers to capitalize on growing energy demand and refined products transportation.
Negative Factors
Revenue Growth Challenges
Declining revenue growth can hinder Scorpio Tankers' ability to expand market share and invest in new opportunities, affecting long-term growth prospects.
Free Cash Flow Decline
A decline in free cash flow growth limits Scorpio Tankers' capacity to reinvest in the business and manage debt, impacting financial flexibility.
Geopolitical and Economic Uncertainty
Geopolitical and economic uncertainties can disrupt operations and demand for shipping services, posing risks to Scorpio Tankers' long-term stability.

Scorpio Tankers (STNG) vs. SPDR S&P 500 ETF (SPY)

Scorpio Tankers Business Overview & Revenue Model

Company DescriptionScorpio Tankers Inc. is a leading provider of marine transportation of refined petroleum products, specializing in the transportation of clean petroleum products such as gasoline, diesel, and jet fuel. Headquartered in Monaco, the company operates a modern fleet of tankers, primarily focusing on the long-range and medium-range segments. Scorpio Tankers is engaged in the shipping industry and is positioned to benefit from the growing demand for energy and refined products across global markets.
How the Company Makes MoneyScorpio Tankers generates revenue primarily through the time and voyage chartering of its fleet. The company earns money by leasing its vessels to third parties for predetermined periods (time charters) or for specific voyages (voyage charters), with rates typically influenced by market conditions, shipping demand, and operational costs. Additionally, Scorpio Tankers may engage in spot market transactions, which can yield higher returns in favorable market conditions. The company's revenue model is supported by its strong operational efficiency, strategic fleet management, and a focus on maintaining a competitive edge through modern, eco-friendly vessels. Partnerships with oil companies and refiners also contribute to stable business relationships and revenue opportunities.

Scorpio Tankers Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Scorpio Tankers' strong financial performance, improved cash breakeven, and positive market outlook. While there are challenges related to Russian exports and geopolitical uncertainties, the company's solid liquidity and strategic debt management indicate a positive position moving forward.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Scorpio Tankers reported $87.7 million in adjusted EBITDA and $72.7 million in adjusted net income for the third quarter of 2025.
Cash Breakeven Reduction
The company reduced its daily cash breakeven from $17,500 to $12,500 and plans to further reduce it to $11,000 by repaying amortizing debt.
Liquidity Position
Scorpio Tankers has a strong liquidity position with approximately $1.4 billion, including cash, undrawn revolving credit, and investments.
Dividend Increase
A 5% increase in the quarterly dividend was announced, with a focus on making the dividend sustainable and steadily growing.
Debt Prepayment
The company has agreements to prepay $154.6 million in debt, covering all scheduled loan amortization for 2026 and 2027.
Strong Market Outlook
The product tanker market is expected to strengthen, driven by factors like refinery rationalization, longer trade routes, and an aging fleet.
Negative Updates
Russian Export Challenges
Drone attacks and new sanctions have reduced Russian refined product exports by 30%, impacting market dynamics.
Geopolitical and Economic Uncertainty
The company is cautious due to high geopolitical and economic uncertainty, including potential impacts from global crises.
Company Guidance
In the third quarter of 2025, Scorpio Tankers reported a robust financial performance with an adjusted EBITDA of $87.7 million and an adjusted net income of $72.7 million. The company has successfully reduced its daily breakeven costs from $17,500 to $12,500 over the past four years, with expectations to lower it further to $11,000 following recent debt repayments. The company boasts a liquidity position of approximately $1.4 billion, supported by cash, undrawn revolving credit, and investments. The product tanker market remains strong, with MRs earning around $28,000 per day and LR2s approximately $35,000 per day. The company announced a 5% increase in its quarterly dividend, aiming for sustainable and steadily growing returns for shareholders. With a modern fleet and a conservative balance sheet, Scorpio Tankers is well-prepared to navigate market uncertainties and continue delivering long-term value.

Scorpio Tankers Financial Statement Overview

Summary
Scorpio Tankers demonstrates strong profitability and a solid balance sheet with reduced leverage. However, challenges in revenue and free cash flow growth could impact future performance. Effective cash generation and a strong equity base support financial health, but attention to revenue and cash flow trends is necessary for sustained growth.
Income Statement
65
Positive
Scorpio Tankers shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 2.91%, which is a concern. However, the company maintains strong profitability with a net profit margin of 32.01% and an EBIT margin of 37.15%. The gross profit margin is also healthy at 47.35%. Despite the revenue decline, the company has managed to sustain good profitability metrics.
Balance Sheet
72
Positive
The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.0425 in the TTM period, indicating reduced leverage compared to previous years. The return on equity is decent at 12.36%, suggesting effective use of equity to generate profits. The equity ratio is not explicitly calculated but appears stable given the high stockholders' equity relative to total assets.
Cash Flow
58
Neutral
Cash flow analysis reveals challenges with a decline in free cash flow growth by 16.63% in the TTM period. However, the operating cash flow to net income ratio is strong at 2.19, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.76, suggesting efficient conversion of earnings into cash flow despite the growth challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue889.54M1.24B1.34B1.56B540.79M915.89M
Gross Profit421.18M709.11M809.89M939.62M-37.76M328.37M
EBITDA465.68M955.11M908.82M1.06B146.32M508.00M
Net Income284.73M668.77M546.90M637.25M-234.44M94.12M
Balance Sheet
Total Assets4.03B3.83B4.23B4.56B5.01B5.16B
Cash, Cash Equivalents and Short-Term Investments651.66M406.74M355.55M376.87M230.41M187.51M
Total Debt884.40M861.97M1.59B1.93B3.12B3.05B
Total Liabilities955.07M967.77M1.67B2.05B3.18B3.09B
Stockholders Equity3.07B2.87B2.55B2.51B1.84B2.07B
Cash Flow
Free Cash Flow337.60M731.81M842.40M734.85M26.20M244.90M
Operating Cash Flow441.81M825.18M865.49M769.33M73.30M419.38M
Investing Cash Flow115.11M307.99M43.61M571.96M-52.28M-174.48M
Financing Cash Flow-154.71M-1.16B-930.42M-1.19B21.88M-259.70M

Scorpio Tankers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price61.85
Price Trends
50DMA
58.38
Positive
100DMA
51.73
Positive
200DMA
45.45
Positive
Market Momentum
MACD
1.57
Positive
RSI
58.20
Neutral
STOCH
44.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STNG, the sentiment is Positive. The current price of 61.85 is above the 20-day moving average (MA) of 60.85, above the 50-day MA of 58.38, and above the 200-day MA of 45.45, indicating a bullish trend. The MACD of 1.57 indicates Positive momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STNG.

Scorpio Tankers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.16B6.9417.02%3.20%-20.11%-26.44%
77
Outperform
$2.19B10.9918.81%5.41%-16.45%23.94%
76
Outperform
$2.67B12.2911.43%6.24%-23.59%-57.70%
75
Outperform
$3.16B10.079.63%2.62%-35.37%-57.86%
68
Neutral
$1.14B12.008.81%11.74%-27.21%-62.22%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
49
Neutral
$1.96B-11.88%4.12%-36.47%-75.37%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STNG
Scorpio Tankers
61.85
9.39
17.90%
DHT
DHT Holdings
13.67
3.80
38.50%
GEL
Genesis Energy
16.02
4.63
40.65%
TNK
Teekay Tankers
62.47
21.07
50.89%
LPG
Dorian LPG
26.72
2.26
9.24%
INSW
International Seaways
53.98
15.62
40.72%

Scorpio Tankers Corporate Events

Scorpio Tankers Reports Q3 2025 Results and Dividend Increase
Oct 30, 2025

On October 30, 2025, Scorpio Tankers Inc. announced its financial results for the third quarter of 2025, reporting a net income of $84.5 million. The company declared a quarterly cash dividend of $0.42 per share, reflecting its commitment to returning value to shareholders. Additionally, Scorpio Tankers has made strategic moves, including agreements to sell certain vessels and prepay secured credit facilities, which are expected to enhance its financial position and operational flexibility. These developments indicate a proactive approach to managing its fleet and financial obligations, potentially strengthening its market position.

Scorpio Tankers Announces Board Change with COO Retaining Role
Oct 20, 2025

On October 19, 2025, Scorpio Tankers Inc. announced the resignation of Cameron Mackey from his position as director, although he will continue to serve as the Chief Operating Officer. This change in the board does not stem from any disagreements with the company, indicating a stable internal environment. The announcement is part of the company’s ongoing governance and operational adjustments, which may have implications for its strategic direction and stakeholder relations.

Scorpio Tankers to Announce Q3 2025 Results on October 30
Oct 17, 2025

Scorpio Tankers Inc. announced plans to release its third quarter 2025 financial results on October 30, 2025, followed by a conference call. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction amidst ongoing market conditions and geopolitical factors affecting the shipping industry.

Scorpio Tankers Announces Sale of Two LR2 Product Tankers and Debt Update
Sep 29, 2025

On September 29, 2025, Scorpio Tankers Inc. announced agreements to sell two 2019 built LR2 product tankers, STI Lobelia and STI Lavender, for $61.2 million each, with sales expected to close in the fourth quarter of 2025. This move is part of the company’s strategy to capitalize on high secondhand vessel values while reducing its net debt, which could potentially reach zero. The company also provided updates on its outstanding debt and liquidity, highlighting the impact of these sales and other financial maneuvers on its balance sheet.

Scorpio Tankers Expands Equity Incentive Plan with 748,000 Additional Shares
Sep 26, 2025

On September 21, 2025, Scorpio Tankers Inc. announced a resolution by its Board of Directors to increase the number of shares of Common Stock available for issuance under its Amended and Restated 2013 Equity Incentive Plan by 748,000 shares. This decision reflects the company’s strategy to enhance its equity incentive offerings, potentially impacting its market positioning by attracting and retaining talent, which is crucial for its operations and growth in the competitive shipping industry.

Scorpio Tankers Announces Sale of STI Maestro for $42 Million
Sep 9, 2025

Scorpio Tankers Inc. announced on September 9, 2025, that it has entered into an agreement to sell its 2020 built scrubber-fitted MR product tanker, STI Maestro, for $42 million. The sale is expected to close in the fourth quarter of 2025, potentially impacting the company’s fleet composition and financial position.

Scorpio Tankers Announces New Charter Agreement and TCE Rate Update
Sep 4, 2025

On September 3, 2025, Scorpio Tankers Inc. announced a new time charter-out agreement for its 2014 built LR2 product tanker, STI Orchard, at a rate of $28,350 per day for five years starting in the third quarter of 2025. The company also provided an update on its average daily Time Charter Equivalent (TCE) rates for the third quarter of 2025, highlighting its operational performance and market positioning. These developments are likely to impact the company’s revenue streams and reinforce its standing in the marine transportation industry.

Scorpio Tankers Releases Mid-Year Financial Results for 2025
Aug 28, 2025

Scorpio Tankers Inc. released its unaudited interim condensed consolidated financial statements for the six-month period ending June 30, 2025. The report, filed with the U.S. Securities and Exchange Commission, includes a management discussion and analysis of the company’s financial condition and results of operations. This release provides stakeholders with insights into the company’s financial performance and strategic direction, impacting its market positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 03, 2025