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Scorpio Tankers
(NYSE:STNG)
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Rating:82Outperform
Price Target:
$100.00
▲(29.53% Upside)
Action:Reiterated
Date:08/02/26
STNG scores well primarily due to very strong current-cycle profitability/cash generation and a meaningfully de-risked balance sheet, reinforced by a positive earnings call emphasizing liquidity, low breakevens, and shareholder returns. Valuation also supports the score with a low P/E and dividend yield. The score is tempered by shipping cyclicality and uncertainty around forward rates, plus limited momentum confirmation due to missing technical indicators.
Positive Factors
Multi-year charter coverage
Multi-year time charters lock in revenue at fixed daily rates and reduce reliance on volatile spot markets for covered vessels. This improves forward cash-flow visibility, supports fleet utilization, and gives Scorpio a more durable earnings base while retaining exposure to stronger market rates elsewhere.
Negative Factors
Cyclical freight-rate exposure
Because charter revenue is closely linked to tanker freight rates, moderation from peak levels can reduce earnings and cash generation even when rates remain historically favorable. This cyclicality makes forward profitability less predictable and can weaken returns when vessel supply or refined-product demand shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year charter coverage
Multi-year time charters lock in revenue at fixed daily rates and reduce reliance on volatile spot markets for covered vessels. This improves forward cash-flow visibility, supports fleet utilization, and gives Scorpio a more durable earnings base while retaining exposure to stronger market rates elsewhere.
Read all positive factors
Scorpio Tankers (STNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.19B
Dividend Yield2.11%
Average Volume (3M)838.48K
Price to Earnings (P/E)4.8
Beta (1Y)0.50
Revenue Growth32.68%
EPS Growth130.22%
CountryUS
Employees24
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)17.45
Shares Outstanding50,081,352
10 Day Avg. Volume1,148,969
30 Day Avg. Volume838,478
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.78
Price to Sales (P/S)2.65
P/FCF Ratio5.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$93.00Price Target Upside20.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)11.42
Revenue Forecast (FY)$1.19B
Scorpio Tankers Business Overview & Revenue Model
Company Description
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oil and refined petroleum products worldwide. As of March 19, 2026, its fleet consisted of 90 wholly owned tankers, including 34 LR2, 42MR, and 1...
How the Company Makes Money
Scorpio Tankers primarily makes money by earning charter revenue from leasing the carrying capacity of its product tanker fleet to customers moving refined petroleum products. Its key revenue streams are: (1) Voyage/spot and pool-based earnings: W...
Scorpio Tankers Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call emphasized a transformational quarter driven by record adjusted EBITDA, strong net income, substantial liquidity, aggressive debt reduction and lower cost of capital, plus active share buybacks and dividends. Management also highlighted fleet optimization, opportunistic commercial contracts and a low cash breakeven that supports robust cash generation in current markets. Counterbalancing these positives are geopolitical uncertainties, moderation from peak rates, YoY declines in seaborne product exports, aging/sanctioned tonnage and some reliance on non-recurring sale gains and convertible issuance that could dilute equity. On balance, the operational and financial achievements materially outweigh the risks presented.Positive Updates
Record Quarterly Financial Results
Second quarter was the strongest in company history: adjusted EBITDA of $300.5 million and adjusted net income of $243.7 million (IFRS net income $388 million). The quarter included a $154 million gain on sale of vessels.
Negative Updates
Geopolitical Uncertainty and Operational Risk
Ongoing Middle East conflict, Strait of Hormuz fragility, and Red Sea attacks (Houthis) continue to create uncertainty and volatile trading patterns; management emphasized markets are cyclical and unpredictable.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Financial Results
Second quarter was the strongest in company history: adjusted EBITDA of $300.5 million and adjusted net income of $243.7 million (IFRS net income $388 million). The quarter included a $154 million gain on sale of vessels.
Read all positive updates
Company Guidance
Management guided that Scorpio is focused on balance‑sheet strength and low breakevens: Q2 produced $300.5M adjusted EBITDA and $243.7M adjusted net income (IFRS net income $388M) including a $154M gain on sales; cash >$1.9B (=$2.2B as of July 28) plus $483M revolver availability (≈$2.4B liquidity), net cash ≈$1.3B (~$26/share) after a $4.2B net‑debt reduction since 12/2021; the company issued $605M of convertibles at ≈1% YTM (total debt ≈$655M, $605M convertibles), repaid $589M of debt (incl. $389M secured facilities and $200M 7.5% notes), arranged new 7‑year secured facilities at 120bps, and reports cash breakeven below ~$11,000/day (lowest ever) with potential cash flow of ≈$246M/year at $20k/day and ≈$520M/year at $30k/day. Fleet/capital actions: sold 19 vessels YTD (10 in Q2), orderbook down to 13 vessels, remaining newbuilding/JV commitments ≈$978M, repurchased ~2M shares for $155M and declared a $0.45/share dividend, returning >$175M in Q2. Market metrics cited: product tanker rates remain >$30k/day, LR2 Q3 running ~ $65k/day, Aframax/LR2 crude spots >$100k/day, ton‑mile drivers include Strait of Hormuz flows 12.6M bpd (~17M bpd incl. Yanbu), seaborne refined exports down 2.3M bpd (‑11% YoY in June), global visible inventories down >400M barrels, and management expects fleet growth of ~3–4% p.a. over the next 3 years.Scorpio Tankers Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22B | 938.22M | 1.24B | 1.34B | 1.56B | 540.79M |
| Gross Profit | 718.95M | 433.10M | 709.11M | 809.89M | 939.62M | -37.76M |
| EBITDA | 1.06B | 591.87M | 945.87M | 908.82M | 1.06B | 146.32M |
| Net Income | 816.37M | 344.29M | 668.77M | 546.90M | 637.25M | -234.44M |
Balance Sheet | ||||||
| Total Assets | 4.64B | 3.92B | 3.83B | 4.23B | 4.56B | 5.01B |
| Cash, Cash Equivalents and Short-Term Investments | 1.84B | 751.96M | 406.74M | 355.55M | 376.87M | 230.41M |
| Total Debt | 728.88M | 619.20M | 861.97M | 1.59B | 1.93B | 3.12B |
| Total Liabilities | 995.50M | 718.84M | 967.77M | 1.67B | 2.05B | 3.18B |
| Stockholders Equity | 3.64B | 3.20B | 2.87B | 2.55B | 2.51B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 655.27M | 416.84M | 731.81M | 842.40M | 734.85M | 26.20M |
| Operating Cash Flow | 782.87M | 491.23M | 825.18M | 865.49M | 769.33M | 73.30M |
| Investing Cash Flow | 885.39M | 272.25M | 307.99M | 43.61M | 571.96M | -52.28M |
| Financing Cash Flow | -300.54M | -344.10M | -1.16B | -930.42M | -1.19B | 21.88M |
Scorpio Tankers Technical Analysis
Positive
77.20
Price Trends
79.94
Positive
78.57
Positive
72.71
Positive
Market Momentum
0.93
Positive
55.37
Neutral
34.96
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 77.2 is below the 20-day moving average (MA) of 83.63, below the 50-day MA of 79.94, and above the 200-day MA of 72.71, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 34.96 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.36B | 5.70 | 27.73% | 2.06% | 19.33% | 110.30% | |
82 Outperform | $4.19B | 4.80 | 24.51% | 2.11% | 32.68% | 130.22% | |
82 Outperform | $3.08B | 7.55 | ― | 11.81% | 105.24% | 413.89% | |
78 Outperform | $5.46B | 6.99 | 37.04% | 11.45% | 57.66% | 225.95% | |
74 Outperform | $753.31M | 7.20 | 16.52% | 7.34% | 13.60% | 150.34% | |
74 Outperform | $65.94M | 8.85 | 8.79% | ― | -5.01% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
STNG
Scorpio Tankers
83.70
28.53
51.70%
TNK
Teekay Tankers
97.06
47.37
95.35%
ASC
Ardmore Shipping
18.66
7.60
68.73%
PXS
Pyxis Tankers
7.17
4.29
148.96%
INSW
International Seaways
110.14
70.57
178.37%
ECO
Okeanis Eco Tankers Corp.
76.15
51.44
208.12%
Scorpio Tankers Corporate Events
Scorpio Tankers Locks In Multi-Year Charters and Updates Q3 2026 TCE and Share Count
Sep 3, 2026
On September 3, 2026, Scorpio Tankers reported updated average daily time charter equivalent rates for the third quarter, highlighting strong pool and spot market earnings across its LR2, MR and Handymax fleets and significant coverage of expected...
Scorpio Tankers Appoints New Class III Director Following August Board Resignation
Aug 17, 2026
As disclosed in a Form 6-K dated August 17, 2026, Scorpio Tankers reported that Class III director Marianne Økland resigned from the board effective August 15, 2026, with the company emphasizing her departure was not linked to any disagreemen...
Scorpio Tankers Posts Surge in Q2 2026 Earnings and Lays Out Long-Term Fleet Expansion
Jul 30, 2026
On July 30, 2026, Scorpio Tankers reported a sharp increase in profitability for the quarter and half-year ended June 30, 2026, driven by higher time charter equivalent rates and gains on vessel sales. Second-quarter net income jumped to $387.5 mi...
Scorpio Tankers Sets July 30 Date for Q2 2026 Earnings Release and Investor Call
Jul 22, 2026
Scorpio Tankers Inc. announced from Monaco on July 20, 2026 that it plans to release its second quarter 2026 earnings on Thursday, July 30, 2026. On the same day, the company will host a conference call and live webcast at 8:00 AM Eastern Daylight...
Scorpio Tankers to Redeem $200 Million Notes and Secures $90 Million Credit Line for New MR Tankers
Jul 1, 2026
On July 1, 2026, Scorpio Tankers announced it has issued a redemption notice for its $200 million 7.5% Senior Unsecured Notes, originally due in January 2030, and plans to redeem them on July 17, 2026 at a make-whole price of 106.4% of par plus ac...
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.