Scorpio Tankers(US:STNG)2024-10-29 20:16Financial Performance - For Q3 2024, Scorpio Tankers reported a net income of $158.7 million, translating to $3.31 basic and $3.16 diluted earnings per share, compared to a net income of $100.4 million in Q3 2023[2] - Adjusted net income for Q3 2024 was $87.7 million, or $1.83 basic and $1.75 diluted earnings per share, while in Q3 2023 it was $99.2 million, or $1.99 basic and $1.91 diluted earnings per share[2] - For the nine months ended September 30, 2024, net income reached $600.2 million, or $12.18 basic and $11.62 diluted earnings per share, up from $426.0 million in the same period of 2023[3] - The Company recorded a net income of $158.7 million for Q3 2024, up from $100.4 million in Q3 2023, representing a 57.8% increase[21] - Net income for the nine months ended September 30, 2024, was $600,217,000, compared to $426,008,000 for the same period in 2023, representing a 41% increase[31] - Basic earnings per share for Q3 2024 was $3.31, up from $2.01 in Q3 2023, reflecting a 65% increase[26] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.40 per common share, with a payment date set for December 13, 2024[4] - The company declared dividends of $0.20, $0.25, $0.25, and $0.35 per common share in March, June, September, and December 2023 respectively, and $0.40 per common share in March, June, and September 2024[45][47] Revenue and Operating Metrics - TCE revenue for Q3 2024 decreased by $31.0 million to $258.2 million compared to $289.2 million in Q3 2023, a decline of approximately 10.7%[21] - Average daily Time Charter Equivalent (TCE) revenue for LR2 vessels in Q3 2024 was $38,011, while for MR vessels it was $25,146[6] - The average daily TCE revenue increased to $28,488 per vessel in Q3 2024, up from $28,313 per vessel in Q3 2023, reflecting a 0.6% increase[21] - Vessel revenue for Q3 2024 was $267,986,000, a decrease of 8% from $291,179,000 in Q3 2023[26] - Operating income increased to $171,061,000 in Q3 2024, up 21% from $141,409,000 in Q3 2023[26] Costs and Expenses - Vessel operating costs rose by $1.8 million to $80.9 million in Q3 2024, with average daily costs increasing to $8,395 per vessel from $7,669 per vessel in Q3 2023[21] - Financial expenses decreased by $28.8 million to $20.9 million in Q3 2024, primarily due to reduced interest expenses from deleveraging efforts[23] - Average TCE per revenue day for MR vessels decreased to $24,823 in Q3 2024 from $28,587 in Q3 2023, a decline of 13.5%[34] - Average TCE per revenue day for Handymax vessels decreased to $19,605 in Q3 2024 from $22,875 in Q3 2023, a decline of 14.9%[34] Debt and Financial Position - The Company repaid $64.2 million on its BNPP Sinosure Credit Facility during Q3 2024, which was collateralized by five vessels[8] - The Company amended its 2023 $225.0 Million Credit Facility to a revolving credit facility, with $174.2 million outstanding as of October 25, 2024[16] - Total gross debt outstanding decreased from $1.002 billion to $895.9 million from June 30, 2024, to October 25, 2024[18] - Estimated future principal repayments total $919.6 million, including $70.6 million due in Q2 2025[18] Investments and Asset Management - Scorpio Tankers entered into an agreement to sell the LR2 product tanker STI Lily for $73.5 million, expected to close in Q4 2024[6] - The Company invested $89.1 million for a 4.9% minority interest in DHT Holdings Inc., reflecting a positive outlook in the crude tanker sector[6] - The company reported a net gain on sales of vessels of $123,961,000 for the nine months ended September 30, 2024[31] - The company has entered into agreements to sell three vessels, which are expected to close in the fourth quarter of 2024[48] Fleet and Operational Capacity - The total fleet DWT (Deadweight Tonnage) is 7,302,292 tons, consisting of 102 product tankers, including 39 LR2 tankers, 49 MR tankers, and 14 Handymax tankers[48] - The average age of the fleet is 8.6 years, indicating a relatively modern fleet[48] - Average number of vessels in operation decreased to 104.8 in Q3 2024 from 112.1 in Q3 2023[34] - The company has successfully maintained a diverse range of vessel types, including MR and LR2 categories, to meet varying market demands[40] Market Strategy and Future Outlook - The company is focusing on expanding its market presence with new vessels like STIM Aesthetic and STIM Mighty, both built in 2020[40] - The company is exploring new strategies for market expansion, particularly with the introduction of innovative vessel designs[40] - The company anticipates future growth and expansion, although specific projections are subject to uncertainties[55] - The company is focused on managing risks related to market conditions, operational expenses, and geopolitical factors affecting its business[57]