Scorpio Tankers (STNG) Q4 2023 earnings summary

Executive summary

• Q4 2023 adjusted EBITDA was $237.5 million; adjusted net income was $142.2 million, or $2.85 basic and $2.75 diluted EPS.

• Product tanker markets remained supported by firm demand, disrupted trade routes and limited fleet growth; capital priorities included reducing leverage and returning capital to shareholders.

Financial highlights

• Q4 2023 adjusted EBITDA of $237.5 million and adjusted net income of $142.2 million; EPS was $2.85 basic and $2.75 diluted.

• Quarterly dividend increased from $0.35 to $0.40 per share.

• During 2023, repurchased 10.0 million shares for $489.7 million and paid $58 million in dividends.

Outlook and guidance

• Q1 2024 spot and pool TCE rates as of Feb. 13: LR2 $57,000/day with 68% of days booked; MR $34,500/day with 59%; handymax $32,500/day with 55%.

• Q1 2024 spot and time-charter earnings booked through Feb. 13 were subject to change; estimated vessel cash breakeven fell to $16,000/day from the prior estimate of $17,000/day.

• At $10,000/day higher average rates, annualized incremental cash flow was estimated at $347 million, based on 111 vessels and 365 days of utilization.