Scorpio Tankers (STNG) Q1 2026 earnings summary

Executive summary

• Generated adjusted EBITDA of $214.1 million and adjusted net income of $150.9 million for Q1 2026, with net income reaching $216.3 million and basic EPS of $3.20, diluted EPS of $3.02.

• Declared a quarterly dividend of $0.45 per share and authorized a $500 million share buyback, with 1.34 million shares repurchased for $100 million in April 2026.

• Issued $375 million in convertible senior notes due 2031 at a 1.75% coupon rate.

• Sold or agreed to sell 12 older vessels at prices above original purchase levels, optimizing the fleet and realizing value.

• Cash position at $1.4 billion as of May 1, 2026, expected to reach $2 billion by early summer, with daily cash breakeven around $11,000.

Financial highlights

• Q1 2026 TCE revenue reached $303 million, adjusted EBITDA $214 million, and adjusted net income $151 million.

• Net debt reduced to $876 million pro forma as of May 1, 2026, down from $2.9 billion in 2021.

• Cash and cash equivalents as of March 31, 2026 were $984.3 million, with total liquidity at $2.52 billion including revolving credit facilities.

• IFRS net income for Q1 2026 was $216 million, including a $66 million gain on vessel sales.

• No debt maturities until 2028 and limited newbuilding commitments.

Outlook and guidance

• Product tanker rates remain at unprecedented levels, with average clean tanker earnings over $70,000 per day.

• Market outlook remains constructive due to robust demand, refinery dislocation, and constrained fleet growth.

• Demand expected to rebound by 2.4 MMbpd in Q3 after a Q2 decline, aligning with anticipated inventory restocking.

• Fleet growth projected to average approximately 3% over the next three years, potentially lower due to ageing and sanctioned vessels.

• Newbuilding commitments include four LR2, four MR, and two VLCC tankers with deliveries through 2029.