Financial Data and Key Metrics Changes - In Q4 2024, the company generated $105 million in adjusted EBITDA and $30 million in adjusted net income, while for the full year 2024, adjusted EBITDA was $842 million and adjusted net income was $513 million [8][9] - The company reduced its indebtedness by $740 million, resulting in a liquidity position of $1.3 billion, which includes $531 million in cash and $788 million in undrawn revolving capacity [9][12] - Daily cash breakevens were lowered to $12,500 per day [9] Business Line Data and Key Metrics Changes - The company completed special surveys and dry docking for fifty-four vessels in 2024, improving operational efficiency and reducing the need for repositioning voyages [10][11] - Twelve vessels were sold at attractive prices, enhancing the age profile of the fleet [11] Market Data and Key Metrics Changes - Demand for refined products is expected to increase by close to one million barrels per day in 2025, with seaborne exports averaging over twenty million barrels per day in January [26][27] - Global inventories of refined products are below the five-year average, and refinery closures are accelerating, contributing to a positive outlook for the product tanker market [25][26] Company Strategy and Development Direction - The company aims to maintain financial flexibility and position itself to thrive in any rate environment while also acting opportunistically [11][12] - The recent increase in stake in DHT is viewed as an attractive investment opportunity, capitalizing on its share price lag relative to improving market fundamentals [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for both crude oil and refined products, emphasizing the importance of maintaining a strong balance sheet and liquidity [12][24] - The geopolitical landscape and its impact on trade flows were acknowledged as uncertain, with management focusing on operational safety and monitoring policy changes [19][22] Other Important Information - The company has no new building CapEx requirements and is fully financed for years to come [16] - The company returned $419 million to shareholders through share repurchases and dividends in 2024 [12][49] Q&A Session Summary Question: Impact of recent sanctions on trade flows - Management noted that the implementation of sanctions takes time, and while there has been some rerouting of ships, the actual impact on shipping rates is not yet evident [66][72] Question: Reasons for increased dry dockings - The decision to advance dry dockings was based on strategic planning and market conditions, resulting in a significant number of vessels being optimized for future operations [74][80] Question: Driving down cash breakevens - The company plans to achieve lower cash breakevens through improved fleet efficiency and by utilizing liquidity to pay down drawn revolving credit [83][85] Question: Investment in DHT and crude market outlook - The investment in DHT is seen as a strategic move to capitalize on expected improvements in VLCC rates, with management confident in the potential for better performance in the crude market [96][99] Question: Effects of potential peace in Ukraine on vessel availability - Management expressed skepticism about a quick return to pre-conflict trade patterns, emphasizing that even with peace, the dynamics of demand and supply would likely remain altered [102][104] Question: Insurance market response to geopolitical risks - The insurance market remains cautious, with pricing reflecting ongoing risks, and insurers are generally agnostic to the underlying risks associated with shipping routes [111][115] Question: Transition of vessels between product and crude markets - Management indicated that while there has been historical flexibility in vessel usage, current market conditions do not favor significant shifts between product and crude operations [118][130]

Group 1: Earnings Performance - Scorpio Tankers reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, but down from $2.75 per share a year ago, representing an earnings surprise of 28.57% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Scorpio Tankers posted revenues of $192.15 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.31% and down from $334.07 million year-over-year [2] Group 2: Stock Performance and Outlook - Scorpio Tankers shares have declined about 3% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.92 on revenues of $197.17 million, and for the current fiscal year, it is $4.86 on revenues of $903.42 million [7] Group 3: Industry Context - The Transportation - Shipping industry, to which Scorpio Tankers belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Scorpio Tankers' stock performance [5] - The unfavorable trend in estimate revisions has resulted in a Zacks Rank 4 (Sell) for Scorpio Tankers, suggesting expected underperformance in the near future [6]

Financial Performance - For Q4 2024, Scorpio Tankers reported a net income of $68.6 million, translating to $1.48 basic and $1.43 diluted earnings per share[2]. - Adjusted net income for Q4 2024 was $30.3 million, or $0.65 basic and $0.63 diluted earnings per share, excluding a $52.6 million gain on vessel sales[3]. - For the full year 2024, net income reached $668.8 million, with basic earnings per share of $13.78 and diluted earnings per share of $13.15[6]. - The company reported a net cash inflow from operating activities of $825,180,000 for the year ended December 31, 2024, compared to $865,492,000 in 2023[33]. - Net income for the year ended December 31, 2024, was $668,774,000, up 22% from $546,898,000 in 2023[33]. - Basic earnings per share for 2024 was $13.78, an increase of 32% from $10.44 in 2023[28]. - Adjusted EBITDA for Q4 2024 was $105.146 million, a decrease of 55.8% from $237.452 million in Q4 2023[34]. - The company’s adjusted EBITDA for the year ended December 31, 2024, was $842,012,000, compared to $959,349,000 for 2023[50]. Revenue and Expenses - TCE revenue for Q4 2024 was $192.1 million, a decline of $141.9 million from $334.1 million in Q4 2023, representing a decrease of 42.5%[25]. - Vessel revenue for Q4 2024 was $203,969,000, a decrease of 39% from $336,313,000 in Q4 2023[28]. - Operating income for the year ended December 31, 2024, increased to $764,603,000, compared to $705,150,000 in 2023, reflecting a growth of 8%[28]. - Financial expenses for Q4 2024 decreased by $27.9 million to $18.3 million from $46.3 million in Q4 2023, primarily due to reduced interest expenses[26]. - The company’s financial expenses for the year ended December 31, 2024, were $109,539,000[50]. Dividends and Share Repurchases - The company declared a quarterly cash dividend of $0.40 per common share, payable on March 21, 2025[10]. - The company repurchased common stock amounting to $335,593,000 in 2024, compared to $489,680,000 in 2023, indicating a decrease of 31%[33]. - The company declared dividends of $0.20, $0.25, and $0.25 per common share for March, June, and September 2023, respectively, with a planned increase to $0.35 in December 2023[43]. Debt and Liquidity - As of February 11, 2025, Scorpio Tankers had $530.5 million in unrestricted cash and cash equivalents, along with $788.2 million of undrawn revolver capacity[19]. - As of February 11, 2025, the total gross debt outstanding was $1,067.6 million, with a net debt of $537.1 million[21]. - The Company prepaid $22.9 million on its 2023 $1.0 Billion Credit Facility in October 2024, with an undrawn amount of $288.2 million still available[22]. - In January 2025, the company placed $200 million of new senior unsecured bonds due in January 2030, with a fixed coupon rate of 7.50%[12]. - The Company executed a $500.0 Million Revolving Credit Facility in February 2025, with $500.0 million available to be drawn[23]. Fleet and Operations - The average daily Time Charter Equivalent (TCE) revenue for LR2 vessels in Q4 2024 was $25,594, while for MR vessels it was $19,351[11]. - The average number of vessels decreased to 100.9 in Q4 2024 from 111.5 in Q4 2023, a decline of 9.3%[25]. - The company owns or leases 99 product tankers, including 38 LR2 tankers, 47 MR tankers, and 14 Handymax tankers, with an average age of 8.9 years[44]. - The company continues to focus on fleet optimization and cost management strategies to navigate market challenges[34]. Market Conditions and Risks - The company acknowledges the impact of geopolitical events, including the conflict in Ukraine and the Middle East, on its operations[53]. - Key risks include unforeseen liabilities, capital expenditures, and economic performance, which could impact future revenues and expenses[53]. - Market conditions such as fluctuations in charter rates and vessel values are critical factors affecting the company's performance[53]. - There is a potential for disruptions in shipping routes due to accidents or political events, which could affect operational efficiency[53]. - The company is committed to monitoring changes in governmental regulations and their potential impact on business operations[53]. Future Outlook - Management's assumptions for future performance are based on historical operating trends and third-party data, but actual results may differ significantly[52]. - The company is focused on the expansion and growth of operations, including potential acquisitions and the integration of new assets[53]. - The company emphasizes the importance of forward-looking statements and the inherent uncertainties associated with them[51].

Core Viewpoint - Scorpio Tankers Inc. reported a decline in net income for the fourth quarter of 2024 compared to the same period in 2023, alongside a quarterly cash dividend declaration of $0.40 per share [1][11]. Financial Results - For the three months ended December 31, 2024, the company had a net income of $68.6 million, or $1.48 basic and $1.43 diluted earnings per share [2][4]. - Adjusted net income for the same period was $30.3 million, or $0.65 basic and $0.63 diluted earnings per share, excluding specific gains and losses [3]. - In comparison, for the three months ended December 31, 2023, the company reported a net income of $120.9 million, or $2.43 basic and $2.34 diluted earnings per share [4][5]. Yearly Performance - For the year ended December 31, 2024, the company reported a net income of $668.8 million, or $13.78 basic and $13.15 diluted earnings per share [6]. - Adjusted net income for the year was $512.9 million, or $10.57 basic and $10.08 diluted earnings per share, after excluding certain gains and losses [7]. - In contrast, for the year ended December 31, 2023, the company had a net income of $546.9 million, or $10.44 basic and $10.03 diluted earnings per share [8][9]. Revenue and Operating Metrics - The average daily Time Charter Equivalent (TCE) revenue for the fourth quarter of 2024 was $21,978 per vessel, down from $32,949 per vessel in the same quarter of 2023 [34]. - TCE revenue for the fourth quarter of 2024 decreased by $141.9 million to $192.1 million, compared to $334.1 million in the fourth quarter of 2023 [34]. - The average number of vessels was 100.9 in Q4 2024, down from 111.5 in Q4 2023, contributing to the decline in revenue [34]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.40 per common share, payable on March 21, 2025, to shareholders of record as of March 7, 2025 [11]. Debt and Financing Activities - In January 2025, the company successfully placed $200 million of new senior unsecured bonds due in January 2030, with a fixed coupon rate of 7.50% per annum [12][25]. - The company executed a $500 million revolving credit facility in February 2025, providing flexibility for future financing needs [27]. - As of February 11, 2025, the company had $530.5 million in unrestricted cash and cash equivalents, along with $788.2 million of undrawn revolver capacity [20]. Share Repurchase Program - From October 1, 2024, to February 12, 2025, the company repurchased 658,125 common shares at an average price of $59.33 per share, with $173.5 million remaining under the 2023 Securities Repurchase Program [14].

Core Viewpoint - Scorpio Tankers (STNG) is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook indicating a significant drop in both earnings and revenues for the quarter ended December 2024 [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on February 13, 2025, with an expected EPS of $0.71, reflecting a year-over-year decrease of 74.2% [3]. - Revenues are projected to be $196.69 million, down 41.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 34.06% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - Scorpio Tankers currently has an Earnings ESP of -38.78%, suggesting that analysts have lowered their expectations significantly [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, which may lead to a negative earnings surprise [10][11]. - Historically, Scorpio Tankers has beaten consensus EPS estimates in the last four quarters, with a surprise of +8.70% in the most recent quarter [12][13]. Industry Comparison - Another company in the shipping industry, Danaos (DAC), is expected to report earnings of $6.52 per share for the same quarter, indicating a year-over-year change of -6.7% [17]. - Danaos has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), making it difficult to predict an earnings beat [18].

Earnings Announcement and Conference Call - Scorpio Tankers Inc plans to release its Q4 2024 earnings on February 13, 2025, followed by a conference call at 9:00 AM EST and 3:00 PM CET [1] - The conference call will be accessible via webcast on the company's website and telephonically with US/Canada and international dial-in numbers provided [2][3] - Participants are advised to register for the webcast or dial in 10 minutes before the scheduled start time [2][3] Company Overview - Scorpio Tankers Inc is a global provider of marine transportation for petroleum products [4] - The company owns or lease finances 99 product tankers, including 38 LR2 tankers, 47 MR tankers, and 14 Handymax tankers, with an average age of 8.9 years [4] Forward-Looking Statements - The press release contains forward-looking statements regarding the company's plans, objectives, strategies, and future performance [5] - These statements are based on management's assumptions, including historical operating trends and third-party data, but are subject to uncertainties and contingencies beyond the company's control [6] - The company undertakes no obligation to update or revise forward-looking statements unless required by law [7] Potential Factors Affecting Performance - Actual results may differ from forward-looking statements due to unforeseen liabilities, capital expenditures, revenues, expenses, and economic performance [8] - Other factors include changes in demand for petroleum products, charter rates, vessel values, operating expenses, financing availability, and regulatory changes [8] - Geopolitical conditions, such as conflicts in Ukraine and the Middle East, and potential disruptions to shipping routes may also impact the company's performance [8]

Group 1 - Scorpio Tankers Inc. has successfully placed USD 200 million of new senior unsecured bonds in the Nordic bond market, with a maturity date in January 2030 and a fixed coupon of 7.5% per annum, payable semi-annually [1][2] - The net proceeds from the bond issue will be used to refinance existing senior unsecured notes amounting to USD 70.6 million and for general corporate purposes [2] - Scorpio Tankers Inc. operates a fleet of 99 product tankers, including 38 LR2 tankers, 47 MR tankers, and 14 Handymax tankers, with an average age of 8.8 years [3]

MONACO, Jan. 12, 2025 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers” or the “Company”) through its Norwegian investment banks, will arrange a series of fixed income investor calls commencing on January 13, 2025. A five-year USD denominated senior unsecured bond issue may follow, subject to inter alia market conditions. The net proceeds from the contemplated bond issue are intended to be used for the refinancing of the Company’s existing 7.0% senior unsecured notes due June 30, 2025 ...

NEW YORK, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Capital Link is hosting a series of online Company Presentations, whereby the Senior Management teams of leading listed maritime companies will present their business development, strategy, growth prospects, and overall sector outlook. Initiating Capital Link’s Company Presentation Series will be: Scorpio Tankers Inc. (NYSE: STNG) on Tuesday, January 7, 2025, at 11:00 AM ET and International Seaways, Inc. (NYSE: INSW) on Thursday, January 9, 2025, at 10:00 AM ET R ...

For almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. In the summer of 2021, I left the city and moved into a yurt I built in the boreal forest. I went from living in downtown Toronto to living alone in the woods approximately 100km away from the closest paved road or grocery store.Self-sufficiency does not exist, as I replaced my relationships with grocery stores and utility providers with natural ecosystems and, ultimately, with God. Knowing that I am able ...