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Scorpio Tankers (STNG)
NYSE:STNG

Scorpio Tankers (STNG) AI Stock Analysis

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STNG

Scorpio Tankers

(NYSE:STNG)

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Outperform 82 (OpenAI - 5.2)
Rating:82Outperform
Price Target:
$92.00
â–²(16.34% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by strong financial performance (robust cash flow and improved leverage) and favorable technicals (price above key moving averages with positive momentum). Valuation is reasonable with a modest dividend, and the earnings call adds upside with confidence in balance-sheet strength and market conditions, tempered by the company’s cyclical exposure.
Positive Factors
Material deleveraging and ample liquidity
A shift from multi‑billion net debt to net cash and roughly $1.7B liquidity materially reduces financial risk, lowers interest burden and increases strategic optionality. This durable balance‑sheet strength supports dividend policy, newbuild funding flexibility and resilience through cyclical troughs.
Consistent strong cash generation
Robust EBITDA and free cash flow that tracked net income in 2025 indicate high cash conversion. Persistent cash generation underpins sustainable shareholder returns, funds reinvestment in vessels, and provides a buffer against cyclical rate volatility, improving long‑term financial durability.
Disciplined fleet renewal and low cash breakeven
Active recycling of older tonnage into modern newbuilds plus a record low cash breakeven strengthens structural earnings power. A younger, more efficient fleet lowers operating and compliance costs, improves charter competitiveness and reduces downside sensitivity in prolonged weak rate environments.
Negative Factors
Cyclical, capital‑intensive industry exposure
Product tanker earnings and utilization are highly cyclical and driven by macro trade flows and geopolitics. Capital intensity and rate swings can rapidly compress margins and cash flow, challenging the sustainability of dividends and newbuild financing during prolonged downturns.
Aging global product tanker fleet pressures
A large share of the global fleet aging past 20 years elevates maintenance, reliability and regulatory compliance costs industry‑wide. For Scorpio, this dynamic forces ongoing capex and asset recycling to remain competitive, constraining margins and requiring sustained reinvestment over multiple years.
Concentrated newbuilding commitments and timing risk
Significant forward newbuilding obligations concentrated in 2027–2029 create refinancing and execution risk if spot rates weaken. Even with strong liquidity today, sizable near‑term installments could limit optionality and force asset sales or debt funding under adverse market conditions.

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

Scorpio Tankers Business Overview & Revenue Model

Company DescriptionScorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 18, 2022, the company's fleet consisted of 124 owned, finance leased, or bareboat chartered-in tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax with a weighted average age of approximately 6.2 years. Scorpio Tankers Inc. was incorporated in 2009 and is based in Monaco.
How the Company Makes MoneyScorpio Tankers generates revenue primarily through time charters and spot market contracts. The company earns income by leasing its vessels to customers for a fixed period (time charters) or on an as-needed basis (spot market), with revenue dependent on the prevailing market rates for shipping refined products. Additionally, Scorpio Tankers may benefit from long-term contracts with major oil companies and trading houses, providing a stable revenue stream. The company's strategic focus on maintaining a modern and efficient fleet allows it to optimize operational efficiency and reduce costs, which in turn enhances profitability. Market dynamics, such as fluctuations in oil prices and demand for refined products, also significantly impact the company's earnings.

Scorpio Tankers Earnings Call Summary

Earnings Call Date:Feb 12, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive tone: management highlighted transformational progress—material deleveraging to a net cash position, substantial liquidity (~$1.7B), record-low cash breakevens (~$11k/day), robust adjusted EBITDA ($568M for 2025), a raised dividend (+12.5% YoY) and disciplined fleet renewal (10 sales / 10 newbuilds). Market fundamentals were characterized as structurally supportive (increased ton‑miles, higher exports, favorable LR2/MR spot rates). The main cautions related to industry-wide challenges—an aging global fleet, sanctions removing capacity, and cyclical/geo‑political risks—but these were presented as manageable given the company’s strengthened balance sheet and operating leverage. Overall, highlights significantly outweigh the lowlights.
Q4-2025 Updates
Positive Updates
Strong Quarterly and Full-Year EBITDA
Adjusted EBITDA of $152,000,000 in Q4 2025 and $568,000,000 for the full year 2025, demonstrating sustained profitability and cash generation.
Net Income and Debt Reduction
IFRS net income of $344,000,000 for 2025 and a reduction in net debt from ~$3.1 billion (end of 2021) to a net cash position of approximately $308,000,000 as of the call, reflecting roughly a $3.0 billion deleveraging since 2021.
Substantial Liquidity and Improved Balance Sheet
Total available liquidity of ~$1.7 billion (cash $937,000,000 plus $767,000,000 revolver availability); $450,000,000 of debt repaid in 2025 including a $154,600,000 prepayment in Q4; no principal debt maturities until 2028 (after final lease settlement).
Dividend Increase
Quarterly dividend raised to $0.45 per share, a 12.5% year-over-year increase, supported by structural cash generation and a low cash breakeven.
Very Low Cash Breakeven and Cash Generation Scenarios
Company cash breakeven approximately $11,000 per day per vessel (lowest in company history). At illustrative TCEs the company can generate up to $292M/year at $20,000/day, $617M/year at $30,000/day, and $942M/year at $40,000/day.
Fleet Renewal and Operational Discipline
Sold 10 older vessels at attractive valuations and signed contracts to purchase 10 modern newbuildings (total forward outlay slightly over $700,000,000). Fleet is younger and more efficient, improving earnings power and financing attractiveness.
Market Fundamentals and Strong Spot Rates
Five consecutive quarters of rate improvement with current spot rates cited at approximately $46,000/day for LR2s and $38,000/day for MRs; structural drivers highlighted include expanding ton-mile demand (+~20% since 2019) and higher seaborne refined product exports (~22.1M bpd in January, ~+1.0M bpd YoY).
Successful Asset Monetization
Exit from DHT generated an approximately $30,000,000 cash gain, representing about a 24% return on the investment when including dividends received.
Capital Structure Optionality
$200,000,000 five-year senior unsecured notes issued in Jan 2025 trading ~103% of par; $240,000,000 of secured borrowings are revolver-drawn, preserving future liquidity flexibility; management noted ability to pay for newbuildings in cash if desired.
Negative Updates
Aging Global Product Tanker Fleet
21% of the product tanker fleet is already over 20 years old and is projected to be ~30% by 2028, creating replacement pressures and potential reliability/regulatory challenges for the broader market.
Sanctions and Constrained Effective Supply
Sanctions materially remove tonnage from the mainstream market: ~26% of Aframax/LR2 fleet and ~9% of MR/Handy fleet are sanctioned; nearly 50% of Russian crude/product exports are moving on vessels older than 19 years, tightening effective clean supply and adding market complexity.
Orderbook vs. Effective Growth Uncertainty
Headline product tanker orderbook is ~19% of existing fleet, but when adjusted for aging vessels, sanctioned ships, and LR2 crossover, management expects fleet growth to average roughly 3% over the next three years, indicating potential mismatch and uncertainty in future supply dynamics.
Industry Cyclicality and External Risks
Company operates in a cyclical, capital‑intensive industry with elevated inflation and geopolitical uncertainty; outcomes depend on sustaining favorable rate environments and ton-mile tailwinds—risks remain if market conditions deteriorate.
Expired VLCC Options and Opportunistic Limits
Short‑lived options on VLCCs expired (not exercised), reflecting management discipline but also a missed/limited opportunity to expand into the VLCC segment during a period of heightened interest.
Company Guidance
Management guided that Scorpio is structurally stronger heading into 2026, highlighting Q4 adjusted EBITDA of $152.0M and FY2025 adjusted EBITDA of $568.0M (IFRS net income $344.0M), a net cash position of roughly $308–309M (down from ~$3.1B net debt in 2021), cash of $937M plus $767M revolver availability for ~$1.7B total liquidity, and $450M of debt repaid in 2025 including a Q4 prepayment of $154.6M; the company has secured $200M of five‑year senior unsecured notes (trading ~103% of par) and $428M of secured borrowings ( ~$240M drawn revolver). Operationally management reiterated a low cash breakeven of ~$11,000/day per vessel, sale of 10 older ships and contracts for 10 newbuilds (newbuilding commitments slightly over $700M, ~70% of installments due 2027–2029), >70% of the fleet recently completed special surveys with a light forward drydock schedule, and an increased quarterly dividend of $0.45/share (up 12.5% YoY). Market guidance emphasized spot LR2/MR rates near ~$46k/$38k/day, structural demand tailwinds (+~1,000,000 bpd refined product demand growth expected this year; Jan seaborne exports ~22.1M bpd, +~1M y/y), longer ton‑miles (+~20% since 2019), a product tanker orderbook ~19% of the fleet offset by an aging fleet (21% >20 years today, ~30% by 2028) and sanctioned capacity (≈26% Aframax/LR2, 9% MR/Handy), and cash‑flow sensitivity where at $20k/day the company could generate up to $292M/year ( $617M at $30k/day; $942M at $40k/day).

Scorpio Tankers Financial Statement Overview

Summary
Overall financial quality is strong, supported by robust cash generation (strong free cash flow in 2025), meaningfully improved leverage to a conservative level, and healthy profitability. The main risk is cyclicality: 2025 results remain solid but are clearly down from 2024, with historical revenue/margin volatility.
Income Statement
78
Positive
Profitability is strong in the latest annual period (2025), with healthy gross and bottom-line margins and solid EBITDA conversion. However, earnings power has cooled versus 2024 (lower revenue and notably lower operating and net margins), suggesting a less favorable pricing/rate environment. The longer view shows a clear recovery from a loss-making 2021 to very strong profitability in 2022–2024, but results remain somewhat cyclical with revenue and margin volatility.
Balance Sheet
84
Very Positive
Leverage has improved materially over time, with debt-to-equity declining from elevated levels in 2020–2021 to a conservative level in 2025, alongside a larger equity base. Returns on equity remain positive in recent years, though they have stepped down in 2025 versus 2022–2024, consistent with softer profitability. Overall balance-sheet risk looks well-contained compared with the company’s recent history.
Cash Flow
86
Very Positive
Cash generation is a key strength: operating cash flow is robust in 2025 and free cash flow is strong, with free cash flow matching net income in the latest year. Cash flow has also been resilient through the upcycle (2022–2024) and shows strong growth in 2025, though year-to-year free-cash-flow momentum was negative in 2024 and remains variable, reflecting an inherently cyclical business profile.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue938.22M1.24B1.34B1.56B540.79M
Gross Profit613.44M709.11M809.89M939.62M-37.76M
EBITDA490.03M945.87M908.82M1.06B146.32M
Net Income344.29M668.77M546.90M637.25M-234.44M
Balance Sheet
Total Assets3.92B3.83B4.23B4.56B5.01B
Cash, Cash Equivalents and Short-Term Investments751.96M406.74M355.55M376.87M230.41M
Total Debt619.20M861.97M1.59B1.93B3.12B
Total Liabilities718.84M967.77M1.67B2.05B3.18B
Stockholders Equity3.20B2.87B2.55B2.51B1.84B
Cash Flow
Free Cash Flow491.23M731.81M842.40M734.85M26.20M
Operating Cash Flow491.23M825.18M865.49M769.33M73.30M
Investing Cash Flow272.25M307.99M43.61M571.96M-52.28M
Financing Cash Flow-344.10M-1.16B-930.42M-1.19B21.88M

Scorpio Tankers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.08
Price Trends
50DMA
60.86
Positive
100DMA
59.50
Positive
200DMA
52.84
Positive
Market Momentum
MACD
4.27
Negative
RSI
81.16
Negative
STOCH
98.35
Negative
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 79.08 is above the 20-day moving average (MA) of 69.73, above the 50-day MA of 60.86, and above the 200-day MA of 52.84, indicating a bullish trend. The MACD of 4.27 indicates Negative momentum. The RSI at 81.16 is Negative, neither overbought nor oversold. The STOCH value of 98.35 is Negative, 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
82
Outperform
$4.09B10.6911.35%3.19%-35.37%-57.86%
81
Outperform
$2.70B7.7518.48%3.72%-20.11%-26.44%
76
Outperform
$1.58B13.0611.21%13.08%-27.21%-62.22%
74
Outperform
$3.13B14.8419.44%6.12%-16.45%23.94%
69
Neutral
$3.73B17.2015.96%6.12%-23.59%-57.70%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
60
Neutral
$2.21B-27.23-2.48%4.14%-36.47%-75.37%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STNG
Scorpio Tankers
79.08
41.12
108.30%
DHT
DHT Holdings
19.49
9.57
96.47%
GEL
Genesis Energy
18.06
5.40
42.68%
TNK
Teekay Tankers
78.27
42.03
115.96%
LPG
Dorian LPG
36.99
18.78
103.14%
INSW
International Seaways
75.53
44.83
146.00%

Scorpio Tankers Corporate Events

Scorpio Tankers Lifts Dividend as Q4 2025 Profit Climbs and Fleet Renewal Accelerates
Feb 12, 2026

Scorpio Tankers reported on February 12, 2026 that it generated net income of $128.1 million for the fourth quarter of 2025, up from $68.6 million a year earlier, and $344.3 million in net income for full-year 2025, down from $668.8 million in 2024 as gains on vessel sales moderated. The board simultaneously approved a higher quarterly dividend of $0.45 per share, reflecting continued cash generation, with record and payment dates set for early March and late March 2026, respectively.

Operationally, the company disclosed robust Time Charter Equivalent rates in the fourth quarter of 2025 and into the first quarter of 2026, underscoring resilient product tanker market conditions. It also detailed an active fleet renewal and expansion program, including agreements since November 2025 to sell older LR2 tankers, charter out two LR2s on five-year contracts, and order multiple scrubber-fitted LR2, MR and VLCC newbuildings for delivery between 2027 and 2029, signaling a long-term bet on sustained demand and cleaner, more efficient tonnage.

The most recent analyst rating on (STNG) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

Scorpio Tankers Sets February 12 Date for Q4 2025 Results Amid Active Fleet Renewal
Jan 29, 2026

On January 28, 2026, Scorpio Tankers announced that it will release its fourth-quarter 2025 financial results and host a conference call on February 12, 2026, offering investors and analysts an opportunity to assess recent performance and discuss the company’s outlook. The upcoming earnings disclosure comes as the Monaco-based tanker owner continues to reshape its fleet through scheduled vessel sales and a pipeline of newbuild deliveries stretching to 2028, developments that could influence its earnings profile, leverage to product tanker markets and long-term positioning in global refined oil transportation.

The most recent analyst rating on (STNG) stock is a Sell with a $56.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

Scorpio Tankers Swings to Net Cash as Vessel Sales and Debt Prepayments Bolster Liquidity
Jan 13, 2026

On January 13, 2026, Scorpio Tankers reported a sharp strengthening of its balance sheet, detailing that total debt fell from $896.6 million at September 30, 2025 to $628.4 million by January 9, 2026, or $609.2 million on a pro forma basis, while cash rose to $991.9 million pro forma, resulting in a net cash position of approximately $382.7 million. The company highlighted $783.9 million of available revolving credit capacity as of January 9, 2026 and outlined significant fourth-quarter 2025 deleveraging steps, including prepayments across multiple 2023 credit facilities, repayment of Ocean Yield lease financings, and the sale of its remaining stake in DHT Holdings, alongside completed and pending vessel disposals that both fund debt reduction and reshape the fleet. Scorpio also quantified $572.8 million of remaining newbuilding commitments for VLCCs, LR2s and MRs through 2028, indicating that its strengthened liquidity and reduced leverage are intended to support an ongoing fleet renewal and expansion program, with implications for future earnings capacity and capital allocation flexibility for shareholders and creditors.

The most recent analyst rating on (STNG) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

Scorpio Tankers to Sell LR2 Tanker STI Kingsway for $57.5 Million
Jan 12, 2026

On January 12, 2026, Scorpio Tankers Inc. announced that it had entered into an agreement to sell the STI Kingsway, a scrubber-fitted LR2 product tanker built in 2015, for $57.5 million, with the transaction expected to close in the first or second quarter of 2026. The deal is part of a broader fleet optimization strategy that includes the planned sale of four LR2 tankers and the introduction of multiple MR, LR2 and VLCC newbuildings over the next several years, signaling a continued reshaping of the company’s fleet profile and potential implications for its operational efficiency and long-term market positioning in the petroleum products shipping segment.

The most recent analyst rating on (STNG) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

Scorpio Tankers Locks In Five-Year Charters for Two LR2 Product Tankers
Jan 5, 2026

On January 5, 2026, Scorpio Tankers Inc. announced that it has entered into five-year time charter-out agreements for two of its 2015-built LR2 product tankers, STI Rose and STI Alexis, at a daily rate of $29,000 per vessel, with the charters expected to commence in the first quarter of 2026. The move provides the tanker owner with multi-year earnings visibility on part of its LR2 fleet and underscores its strategy of locking in fixed-rate employment as it simultaneously recycles older assets and invests in newbuildings, a combination that may smooth cash flows and support its positioning in the volatile product tanker market.

The most recent analyst rating on (STNG) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

Scorpio Tankers Announces Sale and Purchase of LR2 Tankers
Dec 16, 2025

On December 16, 2025, Scorpio Tankers Inc. announced agreements to sell two 2016-built LR2 product tankers, STI Goal and STI Gallantry, for $52.3 million each, with sales expected to close in the first quarter of 2026. Concurrently, the company plans to purchase two scrubber-fitted LR2 newbuilding product tankers for $70.8 million each, with deliveries anticipated in the third quarter of 2027. These strategic moves reflect Scorpio Tankers’ ongoing efforts to modernize its fleet and maintain its competitive position in the marine transportation industry.

The most recent analyst rating on (STNG) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Scorpio Tankers stock, see the STNG Stock Forecast page.

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: Feb 14, 2026