Scorpio Tankers (STNG) Conference presentation summary

Company overview

• Operates one of the world's largest and most modern product tanker fleets, with 75 vessels and 14 newbuildings on order, averaging 10.2 years in age.

• Headquartered in Monaco, incorporated in the Marshall Islands, and listed on the NYSE under ticker STNG.

• Maintains a diversified blue-chip customer base, including Exxon, Chevron, BP, and Trafigura.

• Fleet is employed in Scorpio pools, consistently outperforming market benchmarks.

• Significant fleet renewal and asset sales, including monetizing older tonnage near newbuild-equivalent prices.

Financial performance and capital allocation

• Achieved $814 million in trailing twelve-month adjusted EBITDA and $1,307 million in net cash as of mid-2026.

• Reduced net debt from $2.9 billion in 2021 to a net cash position, lowering fleet-wide cash breakeven to $11,000 per day.

• Returned $1.1 billion to shareholders via share repurchases and increased quarterly dividends to $0.45 per share since 2022.

• No debt maturities until 2028, with strong liquidity of $2.4 billion and limited newbuild commitments.

• Significant operating leverage, with potential annual cash flow generation exceeding $1.3 billion at higher TCE rates.

Market environment and outlook

• Product tanker earnings have surged on improving demand, with global refined product demand and seaborne exports rising, especially from North America and Asia.

• Strong global refining margins are incentivizing high refinery utilization, supporting tanker demand.

• Fleet growth is constrained by a slowing orderbook, aging vessels, and a significant share of sanctioned tankers.

• Ton-mile demand is increasing due to shifts in global refining capacity and trade patterns.

• Inventory restocking is expected to provide a tailwind for seaborne volumes.