Scorpio Tankers (STNG) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 adjusted EBITDA of $105.1M and adjusted net income of $30.3M; full-year 2024 adjusted EBITDA was $842M and adjusted net income $513M.

• Reduced debt by $740M in 2024 and by $2.3B since 2021; net debt at year-end 2024 was $545.5M.

• Repurchased 4.7M shares for $335.8M and paid $84M in dividends in 2024; quarterly dividend maintained at $0.40 per share.

• Increased stake in DHT Holdings, investing $42.4M in January 2025 and viewing it as an attractive investment.

• Completed an extensive dry docking cycle, positioning the fleet for higher efficiency and fewer off-hire days.

Financial highlights

• Full-year 2024 IFRS net income was $669M, including a $177M gain from the sale of 12 older vessels.

• TCE revenue for the last four quarters reached $1,214M; Q4 2024 vessel revenue was $204M.

• Cash and liquidity as of Feb 11, 2025, stood at $1.58B, including a new $500M revolving credit facility.

• Gross debt outstanding as of Feb 11, 2025, was $1.32B; net debt at $878M.

• Operating cash flow for FY 2024 was $825.2M; cash and cash equivalents at year-end were $332.6M.

Outlook and guidance

• Market outlook remains constructive with strong demand for refined products and global inventories below five-year averages.

• No newbuildings on order, resulting in $0 newbuild capex; modest fleet growth expected due to aging fleet and scrapping.

• As of early Q1 2025, LR2s and MRs have contracted TCEs of $29,000 and $22,000 per day, respectively, for 60% and 57% of expected revenue days.

• A $10,000/day increase in average daily freight rates could generate ~$361M in incremental annualized cash flow.

• No plans to change dividend policy, pay extraordinary dividends, or order/acquire new ships; open to share buybacks and selective investments.