Scorpio Tankers (STNG) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 adjusted EBITDA of $278 million and adjusted net income of $188.4 million, with basic EPS of $3.77 and diluted EPS of $3.60, driven by strong market fundamentals and rate increases.

• Net income for Q2 2024 was $227.3 million ($4.54 basic EPS), up from $132.4 million in Q2 2023; adjusted net income excludes vessel sale gains and debt-related costs.

• Reduced net debt to $712 million as of July 29, 2024, with pro forma net debt below $600 million after pending vessel sales.

• Returned $2.86 per share to shareholders in 2024 through dividends and buybacks, including a $0.40 per share quarterly dividend and a $400 million repurchase program.

• Repurchased 1.4 million shares for $109 million in Q2 2024 at an average price of $78 per share.

Financial highlights

• Q2 2024 vessel revenue was $380.7 million, up from $329.3 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $278 million, up from $235.2 million in Q2 2023.

• Over the last six quarters, generated $1.5 billion in adjusted EBITDA and $965 million in adjusted net income.

• Reduced debt by $955 million, paid $101 million in dividends, and repurchased $543 million in stock at an average price of $53 per share over the last six quarters.

• Net cash inflow from operating activities for the first half of 2024 was $494.2 million.

Outlook and guidance

• Optimistic for the remainder of 2024, with strong spot rates and expectations for continued high demand and favorable supply-demand balance.

• Projected annual cash generation potential: $652 million at $30,000/day TCE, over $1 billion at $40,000/day TCE.

• Management expects further reduction in daily cash break-evens by over $1,000 due to debt facility conversions and prepayments.

• Seaborne exports and ton mile demand are expected to outpace fleet growth through 2026.

• Expectation of modest fleet growth (2%-3.5% over the next two years) due to aging fleet and scrapping assumptions.