Scorpio Tankers (STNG) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 adjusted EBITDA of $123.7 million and adjusted net income of $49 million, with basic EPS of $1.06 and diluted EPS of $1.03, amid global uncertainty and robust product earnings.

• Net income for Q1 2025 was $58.2 million, down from $214.2 million in Q1 2024, reflecting normalization after extraordinary 2024 market conditions.

• Paid a quarterly dividend of $0.40 per share in March 2025, declared for June 16, 2025.

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

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

Financial highlights

• Q1 2025 adjusted EBITDA: $123.7 million; adjusted net income: $49 million; TCE revenue: $204.2 million; average daily TCE revenue: $23,971.

• Cash and cash equivalents as of March 31, 2025: $419.9 million; as of April 30, 2025: $397 million.

• Net debt as of March 31, 2025: $535.4 million; as of April 30, 2025: $878 million.

• Reduced overall indebtedness by ~$2.4 billion since December 2021.

• Successfully placed $200 million of new senior unsecured bonds maturing in 2030 at a 7.5% coupon.

Outlook and guidance

• Q2 2025 TCE guidance: LR2 $34,000/day, MR $21,000/day, Handymax $23,000/day; spot and pool rates as of April 30, 2025: LR2 $30,392/day (49% booked), MR $20,847/day (41% booked), HM $18,240/day (33% booked).

• Product tanker rates and demand remain robust, with market fundamentals favorable and effective fleet growth expected to remain modest.

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

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

• Significant operating leverage: a $10,000/day increase in average daily freight rates could generate ~$361 million in incremental annualized cash flow.