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MONACO, May 01, 2025 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months ended March 31, 2025. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend on its common shares of $0.40 per share.
Results for the three months ended March 31, 2025 and 2024
For the three months ended March 31, 2025, the Company had net income of $58.2 million, or $1.26 basic and $1.22 diluted earnings per share.
For the three months ended March 31, 2025, the Company had adjusted net income (see Non-IFRS Measures section below) of $49.0 million, or $1.06 basic and $1.03 diluted earnings per share, which excludes from net income (i) a $9.4 million, or $0.20 per basic and per diluted share, fair value gain on financial assets measured at fair value, and (ii) a $0.3 million, or $0.01 per basic and diluted share, loss on the extinguishment of debt and write-offs of deferred financing fees.
For the three months ended March 31, 2024, the Company had net income of $214.2 million, or $4.29 basic and $4.11 diluted earnings per share.
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For the three months ended March 31, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $206.6 million, or $4.14 basic and $3.97 diluted earnings per share, which excludes from net income (i) a $3.7 million, or $0.07 per basic and diluted share, loss on the extinguishment of debt and write-offs of deferred financing fees, and (ii) an $11.3 million, or $0.23 per basic and $0.22 per diluted share, gain on the sale of a vessel.
Declaration of Dividend
On April 30, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of June 16, 2025 to all shareholders of record as of May 30, 2025 (the record date). As of April 30, 2025, there were 51,016,290 common shares of the Company outstanding.
Summary of First Quarter 2025 and Other Recent Significant Events
- Below is a summary of the average daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS Measures section below) and duration of contracted voyages and time charters for the Company's vessels (both in the pools and outside of the pools) thus far in the second quarter of 2025 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):
| Pool and Spot Market | Time Charters Out of the Pool | ||||||||||
| Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | ||||||
| LR2 | $ | 34,000 | 2,480 | 49 | % | $ | 31,500 | 880 | 100 | % | |
| MR | $ | 21,000 | 3,570 | 41 | % | $ | 22,500 | 540 | 100 | % | |
| Handymax | $ | 23,000 | 1,179 | 33 | % | $ | 23,500 | 77 | 100 | % | |
(1)
- Below is a summary of the average daily TCE revenue earned by the Company's vessels during the first quarter of 2025:
| Average Daily TCE Revenue | |||||
| Vessel class | Pool / Spot | Time Charters | |||
| LR2 | $ | 30,137 | $ | 31,059 | |
| MR | $ | 20,529 | $ | 23,011 | |
| Handymax | $ | 18,240 | N/A | ||
- In April 2025, the Company entered into a time charter-out agreement on a Handymax product tanker (STI Battersea) for a term of two years at an average rate of $24,000 per day.
- Since January 1, 2025, the charterers of three LR2s currently on long-term time charter-out agreements (STI Gratitude, STI Gladiator, and STI Guide) exercised the options to extend the terms of their charters, each for an additional year at $31,000 per day, commencing in May, July, and July 2025, respectively.
- In April 2025, the Company made a prepayment of $50.0 million under its 2023 $225.0 Million Revolving Credit Facility (formerly, the "2023 $225.0 Million Credit Facility"), which had been amended to become a revolving credit facility during 2024. This payment represents the 11 remaining quarterly installment payments due under this facility, with the exception of the balloon payment due at maturity. Under the amended terms, the Company has the ability to re-borrow the prepayment at amounts reducing by $4.5 million per quarter starting July 2025. After this repayment, there is $102.6 million outstanding and $50.0 million available to draw on this facility.
- In March 2025, the Company redeemed the outstanding balance of $70.6 million of its Unsecured Senior Notes Due 2025, which were scheduled to mature on June 30, 2025.
- In February 2025, the Company executed a revolving credit facility of up to $500.0 million with a group of financial institutions (the "2025 $500.0 Million Revolving Credit Facility"). The 2025 $500.0 Million Revolving Credit Facility is a 100% revolving loan, which has a final maturity of seven years from the signing date and gives the Company the flexibility to draw down or repay the loan during the loan tenor. The 2025 $500.0 Million Revolving Credit Facility bears interest at SOFR plus a margin of 1.85% per annum for any drawn amounts and a commitment fee of 0.74% per annum applies for any undrawn amounts. The 2025 $500.0 Million Revolving Credit Facility is collateralized by 26 product tankers and will amortize/reduce in quarterly installments (starting after the second anniversary of the signing date), with a balloon payment due at maturity.
- In January 2025, the Company successfully placed $200.0 million of new senior unsecured bonds in the Nordic bond market (the "Unsecured Senior Notes Due 2030”). The Unsecured Senior Notes Due 2030 are due to mature in January 2030 and bear interest at a fixed coupon rate of 7.50% per annum, payable semi-annually in arrears.
- Since January 1, 2025, the Company purchased an additional 4,295,218 common shares in DHT Holdings Inc. ("DHT”) at an average price of $10.67 per share. The Company also sold 700,000 common shares of DHT at an average price of $11.85 per share. The Company owns approximately 7.2% of the outstanding common shares of DHT as of the date of this press release.
Securities Repurchase Program
As of April 30, 2025, there is $173.4 million available under the Company's 2023 Securities Repurchase Program.
Diluted Weighted Number of Shares
The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company's equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.
For the three months ended March 31, 2025, the Company's basic weighted average number of shares outstanding was 46,172,628. For the three months ended March 31, 2025, the Company's diluted weighted average number of shares outstanding was 47,729,905, which included the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan.
Conference Call
Title: Scorpio Tankers Inc. First Quarter 2025 Conference Call
Date: Thursday, May 1, 2025
Time: 9:00 AM Eastern Daylight Time and 3:00 PM Central European Summer Time
The conference call will be available over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com and the webcast link:
https://edge.media-server.com/mmc/p/w9j5qh65
Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
The conference will also be available telephonically:
US/CANADA Dial-In Number: 1-888-596-4144
International Dial-In Number: +1-646-968-2525
Please ask to join the Scorpio Tankers Inc. call.
Participants should dial into the call 10 minutes before the scheduled time.
Current Liquidity
As of April 30, 2025, the Company had $397.0 million in unrestricted cash and cash equivalents and $838.2 million of undrawn revolver capacity, which includes $288.2 million of availability under the revolving portion of the 2023 $1.0 Billion Credit Facility, $50.0 million of availability under the 2023 $225.0 Million Revolving Credit Facility and $500.0 million of availability under the 2025 $500.0 Million Revolving Credit Facility. Within the next two weeks, the Company is expected to receive approximately $49 million from the Scorpio pools with respect to the monthly cash distribution for April 2025.
Debt
Set forth below is a summary of the principal balances of the Company's outstanding indebtedness as of the dates presented:
| In thousands of U.S. Dollars | Outstanding Principal as of December 31, 2024 | Outstanding Principal as of March 31, 2025 | Outstanding Principal as of April 30, 2025 | |||
| 1 | 2023 $225.0 Million Revolving Credit Facility (1) | 165,675 | 157,200 | 102,610 | ||
| 2 | 2023 $49.1 Million Credit Facility | 41,010 | 39,856 | 39,856 | ||
| 3 | 2023 $117.4 Million Credit Facility | 91,883 | 87,631 | 87,631 | ||
| 4 | 2023 $1.0 Billion Credit Facility | 351,213 | 351,213 | 351,213 | ||
| 5 | 2023 $94.0 Million Credit Facility | 83,242 | 80,825 | 79,501 | ||
| 6 | Ocean Yield Lease Financing | 22,309 | 21,547 | 21,294 | ||
| 7 | 2021 Ocean Yield Lease Financing | 52,216 | 50,774 | 50,293 | ||
| 8 | Unsecured Senior Notes Due 2025 (2) | 70,571 | - | - | ||
| 9 | Unsecured Senior Notes Due 2030 (3) | - | 200,000 | 200,000 | ||
| 10 | 2025 $500.0 Million Revolving Credit Facility (4) | - | - | - | ||
| Gross debt outstanding | 878,119 | 989,046 | 932,398 | |||
| Cash and cash equivalents | 332,580 | 419,931 | 396,954 | |||
| Net debt | $ | 545,539 | $ | 569,115 | 535,444 | |
(1)
(2) In March 2025, the Company redeemed the outstanding balance of $70.6 million of its Unsecured Senior Notes Due 2025, which were scheduled to mature on June 30, 2025.
(3) In January 2025, the Company successfully placed $200.0 million of new senior unsecured bonds in the Nordic bond market (the "Unsecured Senior Notes Due 2030”). The Unsecured Senior Notes Due 2030 are due to mature in January 2030 and bear interest at a fixed coupon rate of 7.50% per annum, payable semi-annually in arrears. The net proceeds from the bond issue are expected to be used for general corporate purposes, with a portion used to redeem the Company's existing Unsecured Senior Notes Due 2025.
The Unsecured Senior Notes Due 2030 contain certain financial covenants, including (i) a minimum consolidated tangible net worth of not less than $1.0 billion, (ii) minimum liquidity of no less than the greater of (a) $25.0 million and (b) $500,000 per each owned vessel and $250,000 per each time chartered-in vessel, and (iii) the ratio of net debt to total capitalization of no greater than 0.70 to 1.00. Additionally, the Company must maintain minimum liquidity (which includes undrawn amounts under revolving credit facilities with a remaining maturity date in excess of 12 months) of $100.0 million after making any distributions in the form of dividends or stock repurchases.
(4) In February 2025, the Company executed the 2025 $500.0 Million Revolving Credit Facility. There is $500.0 million available to be drawn on this facility as of the date of this press release. The 2025 $500.0 Million Revolving Credit Facility is a 100% revolving loan, which has a final maturity of seven years from the signing date and gives the Company the flexibility to draw down or repay the loan during the loan tenor. The 2025 $500.0 Million Revolving Credit Facility bears interest at SOFR plus a margin of 1.85% per annum for any drawn amounts and a commitment fee of 0.74% per annum applies for any undrawn amounts. The 2025 $500.0 Million Revolving Credit Facility is collateralized by 26 product tankers and will amortize/reduce in quarterly installments (starting after the second anniversary of the signing date) with a balloon payment due at maturity. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's existing credit facilities.
Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness, which includes principal amounts due under the Company's secured credit facilities, lease financing arrangements and Unsecured Senior Notes Due 2030 (which also include actual scheduled payments made from April 1, 2025 through April 30, 2025):
| Outstanding Debt at March 31, 2025 | |||||||||
| In millions of U.S. dollars | Repayments/maturities of unsecured debt | Unscheduled Prepayments | Vessel financings - scheduled repayments, in addition to maturities in 2027 and thereafter | Total (1) | |||||
| April 1, 2025 to April 30, 2025 (2) | $ | - | $ | 50.0 | $ | 6.6 | $ | 56.6 | |
| Remaining Q2 2025 | - | - | 8.0 | 8.0 | |||||
| Q3 2025 | - | - | 10.1 | 10.1 | |||||
| Q4 2025 | - | - | 10.1 | 10.1 | |||||
| Q1 2026 | - | - | 10.1 | 10.1 | |||||
| Q2 2026 | - | - | 10.1 | 10.1 | |||||
| Q3 2026 | - | - | 29.4 | 29.4 | |||||
| Q4 2026 | - | - | 29.4 | 29.4 | |||||
| 2027 and thereafter | 200.0 | - | 625.2 | 825.2 | |||||
| $ | 200.0 | $ | 50.0 | $ | 739.0 | $ | 989.0 | ||
(1)
(2) In April 2025, the Company prepaid $50.0 million, in addition the scheduled April 2025 repayment of $4.5 million, under the 2023 $225.0 Million Revolving Credit Facility.
Drydock and Off-Hire Update
Set forth below is a table summarizing the drydock activity that occurred during the first quarter of 2025 and the estimated expected payments to be made for the Company's drydocks through 2025 and 2026. This table also includes an estimate of off-hire days for these periods which includes (i) estimated off-hire days for drydocks, and (ii) estimated off-hire time for general repairs.
| Number of (3) | ||||||
| Aggregate costs in millions of USD (1) | Aggregate off-hire days (2) | LR2s | MRs | Handymax | ||
| Q1 2025 - actual | $ | 24.7 | 388 | 6 | 3 | 1 |
| Q2 2025 - estimated | 30.6 | 283 | 3 | 4 | 0 | |
| Q3 2025 - estimated | 6.7 | 184 | 1 | 3 | 0 | |
| Q4 2025 - estimated | 2.3 | 119 | 1 | 0 | 0 | |
| FY 2026 - estimated | 27.8 | 339 | 12 | 0 | 0 | |
(1)
