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Scorpio Tankers (STNG)
NYSE:STNG
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Scorpio Tankers
(NYSE:STNG)
74Outperform
Positive Factors
Debt Reduction
Scorpio Tankers has significantly reduced its debt by $2.2 billion, lowering its cash operating breakeven to $12,500 per day.
Market Position
Scorpio Tankers has raised its stake in DHT to 7.2%, potentially strengthening its position in the market.
Revenue Performance
Revenues topped estimates due to fewer off hire days, with a significant beat driven by 470 days compared to the forecast of 606 days.
Negative Factors
Cash Flow
Decelerating rates and increasing capacity are expected to lead to thinner cash flow going forward.
Operating Days
Extended maintenance for a vessel reduced the company's operating days, affecting revenue generation.
Revenue Projections
Product tanker rates ended below target and continue to trend downwards, impacting revenue projections.
Scorpio Tankers (STNG) vs. S&P 500 (SPY)
Market Cap
$1.98B
Dividend Yield4.02%
Average Volume (3M)1.08M
Price to Earnings (P/E)2.9
Beta (1Y)0.56
Revenue Growth-7.25%
EPS Growth31.85%
CountryUS
Employees24
SectorEnergy
Sector Strength47
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)13.63
Shares Outstanding49,916,542
10 Day Avg. Volume869,549
30 Day Avg. Volume1,077,248
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.18
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$55.25Price Target Upside38.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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 makes money primarily through the chartering of its tanker vessels to customers who need to transport refined petroleum products. The company's revenue model is based on time charters and spot charters. In time charters, Scorpio Tankers leases its vessels to customers for a fixed period, providing predictable and stable revenue streams. In spot charters, the company leases vessels for single voyages based on current market rates, which can lead to variable earnings depending on market conditions. Key revenue streams are derived from these charter agreements and are influenced by factors such as global oil demand, freight rates, and the availability of tanker capacity. Strategic partnerships with oil companies, traders, and other shipping firms also contribute to Scorpio Tankers' earnings, enhancing its market presence and operational efficiency.
Scorpio Tankers Financial Statement Overview
Summary
Scorpio Tankers has shown a strong improvement in profitability and cash flow management, with a significant increase in net profit and reduced debt levels. However, declining revenues and decreasing total assets are concerns that need to be addressed for sustained growth.Income Statement
Scorpio Tankers has demonstrated a strong improvement in profitability over the years, with a significant increase in net profit from negative values in earlier years to substantial positive figures in recent periods. The company exhibits robust EBIT and EBITDA margins, indicative of effective cost management and operational efficiency. However, recent revenue has seen a decline from 2022 to 2024, which could be a concern if the trend continues.78
Positive
Balance Sheet
The balance sheet shows a healthy equity position with a debt-to-equity ratio that has improved over the years, indicating reduced leverage and financial risk. The equity ratio is strong, suggesting a solid capital structure. However, the total assets have been decreasing, which may limit future growth if not addressed.72
Positive
Cash Flow
Scorpio Tankers has shown strong cash flow management, with rising operating cash flows and free cash flows. The free cash flow to net income ratio is high, indicating efficient conversion of earnings into cash. The company has also successfully reduced capital expenditures, contributing to better cash flow sustainability.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.24B | 1.34B | 1.56B | 540.79M | 915.89M | Gross Profit |
| 894.43M | 809.89M | 939.62M | -37.76M | 328.37M | EBIT |
| 764.60M | 705.15M | 797.71M | -84.83M | 245.33M | EBITDA |
| 773.38M | 916.11M | 1.00B | 146.32M | 490.86M | Net Income Common Stockholders |
| 668.77M | 546.90M | 637.25M | -380.60M | -62.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 406.74M | 355.55M | 376.87M | 230.41M | 187.51M | Total Assets |
| 3.83B | 4.23B | 4.56B | 5.01B | 5.16B | Total Debt |
| 861.97M | 1.59B | 1.93B | 3.12B | 3.05B | Net Debt |
| 529.39M | 1.23B | 1.56B | 2.89B | 2.86B | Total Liabilities |
| 967.77M | 1.67B | 2.05B | 3.18B | 3.09B | Stockholders Equity |
| 2.87B | 2.55B | 2.51B | 1.84B | 2.07B |
| Cash Flow | Free Cash Flow | |||
| 825.18M | 842.40M | 734.85M | 26.20M | 244.90M | Operating Cash Flow |
| 825.18M | 865.49M | 769.33M | 73.30M | 419.38M | Investing Cash Flow |
| 307.99M | 43.61M | 571.96M | -52.28M | -174.48M | Financing Cash Flow |
| -1.16B | -930.42M | -1.19B | 21.88M | -259.70M |
Scorpio Tankers Technical Analysis
Neutral
39.76
Price Trends
37.72
Positive
43.01
Negative
54.08
Negative
Market Momentum
0.13
Negative
60.57
Neutral
87.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STNG, the sentiment is Neutral. The current price of 39.76 is above the 20-day moving average (MA) of 35.43, above the 50-day MA of 37.72, and below the 200-day MA of 54.08, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STNG.
Scorpio Tankers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.52B | 3.79 | 23.93% | 2.27% | -16.70% | -24.06% | |
80 Outperform | $942.13M | 5.61 | 15.72% | ― | -24.25% | -48.08% | |
74 Outperform | $1.98B | 2.89 | 24.68% | 4.02% | -7.25% | 31.85% | |
74 Outperform | $634.90M | 5.32 | 18.55% | ― | -16.70% | -8.04% | |
67 Neutral | $1.41B | 13.98 | 32.48% | 10.79% | -1.39% | -23.38% | |
56 Neutral | $6.99B | 3.76 | -4.38% | 5.90% | -0.24% | -48.46% |
* Energy Sector Average
Performance Comparison
STNG
Scorpio Tankers
39.76
-30.24
-43.20%
DMLP
Dorchester Minerals
29.82
1.46
5.15%
TK
Teekay
7.60
0.96
14.46%
TNK
Teekay Tankers
44.09
-13.32
-23.20%
LPG
Dorian LPG
22.01
-15.43
-41.21%
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Scorpio Tankers Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 5.49%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Scorpio Tankers reported strong financial results with significant debt reduction and a positive outlook on the market. However, persistent global uncertainty and geopolitical tensions present challenges. The highlights, particularly in financial performance and operational strength, slightly outweigh the lowlights related to external uncertainties.Q1-2025 Updates
Positive Updates
Strong Financial Results
Scorpio Tankers reported $123 million in adjusted EBITDA and $49 million in adjusted net income for the first quarter of 2025.
Debt Reduction and Balance Sheet Strengthening
The company has reduced debt by $2.2 billion since 2022, expanded revolving credit capacity, and lowered daily cash breakevens to $12,500 per day.
Liquidity Position
Scorpio Tankers has close to $1.4 billion in liquidity, including $400 million in cash and $838 million in undrawn revolving capacity.
Operational Upgrades
Completed special surveys and drydocking for 10 vessels, enhancing vessel efficiency and reducing the need for repositioning voyages.
Positive Market Outlook
Product tanker rates began the second quarter of 2025 at higher levels than the first quarter, with a constructive view on the crude and refined products market.
Negative Updates
Global Uncertainty
Persistent global uncertainty, including policy shifts, tariffs, and geopolitical developments, is clouding visibility and impacting the market.
Tariff Impact on Market
Ongoing tariffs and trade war have caused significant uncertainty in the market, affecting chartering habits and ship values.
Geopolitical Tensions
Geopolitical crosscurrents and sanctions have made the macroeconomic backdrop less predictable, impacting visibility into future market conditions.
Company Guidance
During Scorpio Tankers Inc.'s first quarter 2025 earnings call, the company provided several key metrics and strategic updates. The company reported an adjusted EBITDA of $123.7 million and an adjusted net income of $49 million, or $1.03 per diluted share. Notably, they have significantly reduced their debt by $2.4 billion since December 31, 2021, bringing the net debt balance down to $535 million. The company's liquidity stands at approximately $1.4 billion, which includes $397 million in cash and $838 million in undrawn revolving credit capacity. Scorpio Tankers also highlighted their strategic decision to reduce their daily cash breakeven to $12,500 per day and maintain a diverse capital structure with flexible funding options. Furthermore, they secured additional time charter coverage with LR2 charters extended at $31,000 per day and a new time charter for a Handymax tanker at $24,000 per day. The company remains optimistic about the refined product tanker market, with strong demand, low inventories, and structural shifts in refinery capacity contributing to a positive outlook despite global uncertainties.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.