Scorpio Tankers (STNG) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 adjusted EBITDA of $123.7 million and adjusted net income of $49.0 million ($1.03 diluted EPS), with a quarterly dividend of $0.40 per share declared.

• Entered new time charter agreements, including three LR2s extended at $31,000/day and a two-year Handymax charter at $24,000/day.

• Owns 7.2% of DHT Holdings Inc. as of April 30, 2025, after purchasing 4.3 million shares and selling 0.7 million.

• Balance sheet strengthened with $2.2 billion debt reduction since 2022 and expanded revolving credit facilities.

• Conservative capital allocation and dividend policy maintained amid global uncertainty.

Financial highlights

• Q1 2025 adjusted EBITDA: $123.7 million; adjusted net income: $49.0 million ($1.03 per diluted share).

• Cash and cash equivalents as of April 30, 2025: $397 million; undrawn revolving credit: $838 million; total liquidity near $1.4 billion.

• Net debt reduced by almost $2.4 billion since December 2021, now at $535 million as of March 31, 2025.

• Debt repayment obligations manageable at ~$10 million per quarter through Q1 2026.

• Cash breakeven lowered to $12,500 per day, supporting resilience in challenging rate environments.

Outlook and guidance

• Q2 2025 spot and pool TCE rates as of April 30, 2025: LR2 at $30,392/day (49% booked), MR at $20,847/day (41% booked), Handymax at $18,240/day (33% booked).

• Market fundamentals remain favorable, with robust demand for refined products and inventories below five-year averages.

• Visibility into the second half of 2025 remains limited due to policy shifts, tariffs, and geopolitical risks.

• Fleet growth expected to remain modest, with effective growth potentially as low as 1% per year, while ton mile demand compounds at 3.6% annually.

• No newbuildings on order, resulting in $0 newbuild capex.