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Highlights

  • In Q2 FY24, Scorpio Tankers’ Vessel revenue rose 15.6% to USD 380.7 million
  • Net income increased 71.7% to USD 227.3 million, propelled by higher revenues
  • The company has recently announced a deal to sell its LR2 product tanker for USD 73.5mn

Scorpio Tankers Inc (NYSE:STNG) is based in Monaco. It specialises in transporting refined petroleum products. The company operates in the oil sector, focusing on seaborne transportation of these products within the tanker industry and international shipping markets. It has a market cap of USD 3.72bn.

In Q2 FY24, the company’s vessel revenue reached USD 380.7 million, a 15.6% increase from USD 329.3 million in Q2 FY23. This rise was driven by a boost in average daily time charter equivalent (TCE) revenue, which climbed to USD 38,813 per vessel, compared to USD 32,154 per vessel during the same period last year. Additionally, net income available to common shareholders soared to USD 227.3 million, reflecting a significant 71.7% increase, primarily due to higher revenues and lower total operating expenses.

On a year-to-date basis, net operating cash inflows slightly decreased by 1.4%, totaling USD 494.2 million, down from USD 501.4 million. This decline was attributed to the unfavorable impact of changes in net working capital, although it was partially offset by increased net income. Furthermore, total cash and cash equivalents decreased by 36.8%, falling to USD 224.7 million from USD 355.6 million. This drop was mainly due to cash outflows from financing activities, although it was somewhat balanced by inflows from operating and investing activities.

Recent Business Update

On October 1, 2024, STNG announced a deal to sell its LR2 product tanker for USD 73.5mn. STI Lily was built in 2019. The transaction is expected to close in the fourth quarter of FY24.  

Top 10 Shareholders

The top 10 shareholders of STNG own about 36.94% of the total shares, showing concentrated ownership. Scorpio Bulkers Inc. is the largest shareholder with 7.30%. Dimensional Fund Advisors, L.P. follows closely with 6.87%.

Price Information

The stock price of STNG has declined by 9.21% over the past three months, but it has gained 20.49% year-to-date. As of 02 October, 2024, the stock’s closing price was USD 73.26.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 02, 2024. The reference data in this report has been partly sourced from EODHD/Others.