Scorpio Tankers(US:STNG)2025-02-12 22:14Financial 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].