Scorpio Tankers (NYSE:STNG) Issues Quarterly Earnings Results, Beats Estimates By $0.32 EPS

Scorpio Tankers (NYSE:STNG) issued its earnings results on Thursday. The shipping company reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.30 by $0.32, FiscalAI reports. Scorpio Tankers had a net margin of 32.01% and a return on equity of 7.42%. During the same period last year, the company earned $0.63 EPS. Scorpio Tankers’s revenue for the quarter was up 23.8% on a year-over-year basis.

Here are the key takeaways from Scorpio Tankers’ conference call:

• Net cash and liquidity: Scorpio reduced net debt from $3.1 billion in 2021 to a net cash position (~$309 million today) and holds approximately $1.7 billion of available liquidity, giving the company strong balance-sheet flexibility to fund newbuilds or opportunistic actions.
• Strong 2025 results and low breakeven: The company reported $152 million of Adjusted EBITDA in Q4 and $568 million for the full year (IFRS net income $344 million), with a record low cash break-even of about $11,000/day per vessel, implying significant free cash flow potential at current rates.
• Shareholder returns increased: Scorpio raised its quarterly dividend to $0.45 per share (up 12.5% YoY) and signaled intent to grow and sustain the payout through the cycle, supported by structural cash generation.
• Supportive market fundamentals: Management highlighted five consecutive quarters of improving rates, rising ton-mile demand from refinery relocations, LR2 crossover into crude trades, and sanctions that tighten effective supply—factors they view as structurally supportive of higher product-tanker rates.
• Fleet and capital discipline: the company sold 10 older vessels, contracted 10 modern newbuilds, prepaid ~$154.6 million of secured debt and remains opportunistic on S&P or M&A, but acknowledges shipping is cyclical and outcomes depend on future market conditions.

Scorpio Tankers Stock Down 2.9%

STNG traded down $2.01 during midday trading on Thursday, hitting $67.88. The company had a trading volume of 760,426 shares, compared to its average volume of 1,063,847. The stock’s 50 day moving average price is $56.78 and its 200 day moving average price is $55.77. Scorpio Tankers has a 52 week low of $30.63 and a 52 week high of $71.48. The company has a market capitalization of $3.46 billion, a price-to-earnings ratio of 11.48 and a beta of -0.25. The company has a quick ratio of 4.75, a current ratio of 4.81 and a debt-to-equity ratio of 0.25.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. BTIG Research upped their price target on Scorpio Tankers from $80.00 to $85.00 and gave the company a “buy” rating in a research report on Thursday. Evercore set a $80.00 price objective on Scorpio Tankers and gave the stock an “outperform” rating in a research note on Monday, November 3rd. B. Riley Financial reissued a “buy” rating and set a $80.00 target price (up previously from $75.00) on shares of Scorpio Tankers in a research report on Thursday, October 16th. Zacks Research lowered shares of Scorpio Tankers from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 13th. Finally, Moffett Nathanson raised shares of Scorpio Tankers to a “neutral” rating in a research note on Monday, January 12th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Scorpio Tankers presently has a consensus rating of “Hold” and an average target price of $71.83.

Key Stories Impacting Scorpio Tankers

Here are the key news stories impacting Scorpio Tankers this week:

• Positive Sentiment: Strong Q4 results and dividend bump — STNG reported Q4 EPS $1.62 (well above consensus) with revenue up ~24% year-over-year and a board-declared quarterly cash dividend of $0.45, supporting cash returns and near-term shareholder yield. GlobeNewswire: Q4 Results & Dividend
• Positive Sentiment: Analyst upgrade/price-target increase — BTIG raised its price target to $85 and reiterated a Buy, implying meaningful upside versus recent levels and likely supporting investor interest. Benzinga: BTIG Price Target Raise
• Positive Sentiment: Beat across the street — coverage outlets note STNG topped earnings and revenue estimates (Zacks/other summaries), reinforcing the beat narrative that underpins the analyst lift. Zacks: Q4 Beat
• Positive Sentiment: Short interest fell materially in January (~19% decline), reducing short-squeeze risk and potentially removing a source of selling pressure. No link
• Neutral Sentiment: Newbuild options exercised — the company declared options for two more newbuildings (lifting the Dalian order to four ships). This expands the fleet long-term but brings future capex/delivery timing considerations. Tradewinds: Newbuild Options
• Neutral Sentiment: Management signaling restrained VLCC exposure — CEO Robert Bugbee said the company is not ordering more VLCCs, indicating disciplined growth focus on appropriate segments. Tradewinds: VLCC Comment
• Neutral Sentiment: Earnings materials/transcript available — slide deck and call transcripts provide detail on fleet, rates and forward outlook for active investors doing due diligence. Seeking Alpha: Q4 Presentation
• Negative Sentiment: Share price decline amid positive news — the stock traded down today, likely reflecting profit-taking after a strong run to 52-week highs, lower intraday volume versus average, and repositioning by investors despite the beat and upgrades.

Institutional Trading of Scorpio Tankers

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC boosted its holdings in Scorpio Tankers by 1,645.2% during the 4th quarter. Global Retirement Partners LLC now owns 541 shares of the shipping company’s stock worth $27,000 after acquiring an additional 510 shares during the last quarter. Zions Bancorporation National Association UT bought a new position in shares of Scorpio Tankers during the fourth quarter valued at about $29,000. Quantbot Technologies LP bought a new position in shares of Scorpio Tankers during the third quarter valued at about $36,000. Larson Financial Group LLC boosted its holdings in Scorpio Tankers by 122.8% during the third quarter. Larson Financial Group LLC now owns 851 shares of the shipping company’s stock worth $48,000 after purchasing an additional 469 shares during the last quarter. Finally, Quarry LP bought a new stake in Scorpio Tankers in the 3rd quarter worth about $53,000. 54.64% of the stock is owned by institutional investors.

About Scorpio Tankers

Scorpio Tankers Inc (NYSE: STNG) is an independent provider of marine transportation services, specializing in the carriage of refined petroleum products. The company’s core operations focus on moving clean petroleum cargoes—such as gasoline, diesel, jet fuel and naphtha—on a global scale. By catering to both spot and time charter markets, Scorpio Tankers enables energy companies, refiners and traders to manage their supply chains with flexibility and reliability.

The company’s fleet is composed of modern, eco-designed product tankers, including medium range (MR) and long range (LR) vessels.