Scorpio Tankers (S0QA) Q3 2026 Earnings Report
DE:S0QA Q3 2026 EPS Results
- Actual EPS
- EUR 2.23
- Consensus EPS
- EUR 1.85
- Beat/Miss
- Beat by +EUR 0.38
- One Year Ago EPS
- EUR 1.33
DE:S0QA Q3 2026 Revenue Results
- Actual Revenue
- EUR 238.59M
- Expected Revenue
- EUR 218.46M
- Beat/Miss
- Beat by +EUR 20.13M
- YoY Revenue Growth
- +10.40%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
DE:S0QA Upcoming Earnings
Scorpio Tankers's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:S0QA Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly optimistic, supported by record liquidity, sharply reduced debt, lower cash breakevens, a 67% dividend increase, strong fourth-quarter bookings, and rapidly improving product tanker rates. Management also cited favorable supply-demand fundamentals and substantial cash flow potential. The main cautions were market and geopolitical uncertainty, an aging tanker fleet, rate volatility, and refinery margins declining from record levels. Overall, the highlights significantly outweighed the lowlights.
Company Guidance
For Q4, Scorpio Tankers has booked LR at approximately a $181 thousand per day, MRs at $56 thousand per day, and Handymax vessels at $40 thousand per day; it expects to continue increasing the dividend annually, with the quarterly dividend increased from $0.40 per share to $0.75 per share, and expects liquidity position to grow through the end of the year, including over $100 million in October hire payments and sales of 2 LR2s for over $140 million pending closing. The company said refined product demand could reach 76 million barrels per day a year from now, compared with probably 74 million currently and around 70 million barrels per day in May, with 2 million barrels more of demand growth, and expects increased supply from The Middle East and continued exports out of Asia through 2027; it would not expect restocking until potentially end of next year. Adjusting for LR2s trading crude, effective supply growth could be closer to 4% over the next 3 years, but factoring in accelerated retirements of older vessels, that figure could fall to just 1%; cash flow could reach up to $520 million per year at $30 thousand per day and up to $1.3 billion in cash flow per year at $60 thousand per day, while time charter coverage will be added at opportune times, with no urgency to put time charter coverage on.
- Record Financial Position and Strong Quarterly ResultsScorpio Tankers reported third-quarter adjusted EBITDA of $172 million and adjusted net income of $127 million. Management said the company entered the fourth quarter of 2026 in the strongest financial position in its history.
- Major Balance Sheet ImprovementDebt declined from $3.1 billion five years ago to $655 million, while cash increased from $230 million to more than $2 billion. Net debt declined by $4.5 billion from $2.9 billion at the end of 2021 to a net cash position of $1.4 billion, or $27 per share, as of the call.
- Lower Cash BreakevensDaily cash breakevens are below $11 thousand per day per vessel, including vessel operating costs, cash G&A, cash interest, commitment fees, and scheduled loan amortization. Management said this provides resilience in weaker markets and substantial free cash flow potential in stronger markets.
- Strong Liquidity and Additional Cash ExpectedThe company had $2.1 billion in cash as of October 26 and $483 million of availability under revolving credit facilities, for total available liquidity of $2.5 billion. October hire payments of over $100 million were expected within the following week, and two pending LR2 sales were expected to generate over $140 million.
- Quarterly Dividend Increased 67%The board increased the quarterly dividend to $0.75 per share, described as an approximately 67% increase. Emanuele Lauro described the increase as being from $0.40 per share, while Christopher Avella described it as being from $0.45 per share. Management expects to continue increasing the dividend annually.
- Debt Refinancing and Lower Cost of CapitalThe company repaid $200 million of 7.5% coupon-rate senior unsecured notes and $357 million of legacy secured debt. Its debt is now primarily fixed-rate convertible debt with a 1% yield to maturity; the convertible notes carry a 1.75% coupon, while the follow-on offering reduced the combined yield to maturity to below 1%. A $90 million undrawn credit facility carries a margin of 120 basis points and has a seven-year tenure from drawdown.
- Fleet Renewal and Asset SalesThe company sold five vessels and recorded a $153 million gain on the sales. Management said it had sold its vessels at attractive prices and selectively reinvested in modern, fuel-efficient tonnage as part of its fleet renewal strategy. Two LR2 sales totaling approximately $145 million were pending closing.
- Very Strong Fourth-Quarter BookingsFourth-quarter bookings were approximately $181 thousand per day for LR vessels, $56 thousand per day for MRs, and $40 thousand per day for Handymax vessels.
- Rates Accelerated Across Product Tanker ClassesManagement reported a sharp monthly increase in rates. MR earnings rose from approximately $29 thousand per day in July to $30 thousand in August, $32 thousand in September, $53 thousand in October, and nearly $70 thousand for the first 37% of November. LR2 earnings increased from $55 thousand per day in July to $71 thousand in August, $82 thousand in September, $168 thousand in October, and approximately $215 thousand for the first 37% of November.
- Middle East Crude Exports and Refinery Runs Supporting Product TankersSince May, Middle East crude exports more than doubled from 8 million barrels per day to nearly 17 million barrels per day. The additional crude supply supported a 4 million barrel-per-day increase in global refinery runs, higher refined product exports, and stronger tanker rates.
- Growth in Seaborne Product ExportsSeptember seaborne product exports reached 20.6 million barrels per day, a 14% increase from May lows. Approximately 20% of Asian exports were moving long-haul to destinations west of the Suez Canal, strengthening LR2 and MR rates through longer voyages and fleet repositioning.
- Strong Underlying Product Demand and Potential RunwayRefined product demand excluding fuel oil increased from approximately 70 million barrels per day in May to about 74 million currently, with management saying it could reach 76 million barrels per day a year from now. The largest supply opportunities were identified as the Middle East and continued exports from Asia, with forecasted refinery runs expected to support demand through 2027.
- Structural Increase in Product Tanker Ton-Mile DemandProduct tanker ton-mile demand has increased by more than 20% since 2019 as global refining capacity moved farther from end consumers and net capacity growth remained limited. Management expects further ton-mile demand growth as refinery runs and exports continue to rise.
- Effective Product Tanker Supply Growth Could Remain LimitedApproximately 15% of the global tanker fleet is sanctioned, and 70% of those vessels are over 20 years old. Nearly half of the product tanker orderbook consists of LR2s, but 69% of the existing LR2 fleet is currently trading crude oil. After adjusting for LR2s trading crude, effective supply growth could be closer to 4% over the next three years and could fall to 1% with accelerated retirements.
- High MR Rates in Both Major RegionsManagement reported MR rates above $80 thousand per day in the U.S. Gulf and between $70 thousand and $80 thousand per day for long-haul round voyages in Asia, describing the strength in the Asian market as unprecedented in the speaker's career. Longer-haul movements, Australian demand, increased flows to the U.S. West Coast and South America, double handling, and vessel repositioning were cited as drivers.
- Flexible LR2 Trading StrategyThe proportion of LR2 spot exposure in crude increased from approximately one in eight voyages at the prior call to about one in three in the third quarter, and management estimated that approximately 70% of LR2s were trading dirty by the end of September. Scorpio said its LR2s would remain in the dirty trade under current market conditions, with changes considered if the spread shifts.
- Significant Cash Flow Generation PotentialAt a $30 thousand per day rate, management estimated the company could generate up to $520 million in annual cash flow. At $60 thousand per day, it estimated annual cash flow could reach up to $1.3 billion.
- Vessel Commitments Can Be Funded Without DebtThe company has commitments to purchase 17 newbuilding vessels and contribute equity to a joint venture owning eight VLCCs under construction. Remaining commitments total approximately $1.3 billion, and management said the company can afford all of these vessels without obtaining debt financing.
- Opportunistic Approach to Time-Charter CoverageManagement said there was no urgency to add time-charter coverage given the current market and the approaching winter season. It expects to continue adding coverage opportunistically as vessels come off existing contracts, based on market conditions and the forward curve.
- Market Outlook Remains Structurally FavorableManagement cited low inventories, resilient demand, rising refinery runs, longer trade routes, and limited vessel supply as fundamentals supporting further product tanker strengthening. It also said refinery margins could remain healthy because few refineries are being built over the next few years and 90% of new capacity is expected to come from India and China.
DE:S0QA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 4.77- | 1.45 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 1.852.23 | 1.33 | 67.11% (+0.90) | |
| Jul 30, 2026 | 2026 (Q2) | 4.084.19 | 1.26 | 231.91% (+2.93) | |
| May 05, 2026 | 2026 (Q1) | 2.502.70 | 0.92 | 193.20% (+1.78) | |
| Feb 12, 2026 | 2025 (Q4) | 1.421.45 | 0.56 | 157.14% (+0.89) | |
| Oct 30, 2025 | 2025 (Q3) | 1.311.33 | 1.57 | -14.86% (-0.23) | |
| Jul 30, 2025 | 2025 (Q2) | 0.981.26 | 3.22 | -60.83% (-1.96) | |
| May 01, 2025 | 2025 (Q1) | 0.660.92 | 3.55 | -74.06% (-2.63) | |
| Feb 12, 2025 | 2024 (Q4) | 0.500.56 | 2.46 | -77.09% (-1.90) | |
| Oct 29, 2024 | 2024 (Q3) | 1.431.57 | 1.71 | -8.38% (-0.14) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
