Scorpio Tankers (STNGN) AI Stock Analysis

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.