In This Article:
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Adjusted EBITDA: $123 million for Q1 2025.
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Adjusted Net Income: $49 million, or $1.03 per diluted share for Q1 2025.
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Debt Reduction: Reduced debt by $2.2 billion since 2022.
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Liquidity: Approximately $1.4 billion, including $397 million in cash and $838 million in undrawn revolving capacity.
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Revolving Credit Facility: $50 million paid into a $225 million facility, covering all remaining quarterly principal amortization payments until January 2028.
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Investment in DHT: Increased by purchasing 4.3 million shares at an average price of $10.67 per share.
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Net Debt: Declined to $535 million as of the press release date.
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Cash Breakeven: Lowered to $12,500 per day.
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Time Charter Coverage: Extensions on three LR2 tankers at $31,000 per day and a new two-year charter on a Handymax tanker at $24,000 per day.
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Cash Flow Potential: Up to $271 million at $20,000 per day, $632 million at $30,000 per day, and $994 million at $40,000 per day.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Scorpio Tankers Inc (NYSE:STNG) reported strong financial results with $123 million in adjusted EBITDA and $49 million in adjusted net income for the first quarter of 2025.
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The company has significantly reduced its debt by $2.2 billion since 2022, strengthening its balance sheet.
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Liquidity stands at approximately $1.4 billion, including nearly $400 million in cash and $838 million in undrawn revolving credit capacity.
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Operational upgrades have been completed on 63 vessels over the last six quarters, enhancing vessel efficiencies and reducing the need for repositioning voyages.
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The outlook for both crude and refined oil products remains positive, with product tanker rates starting the second quarter at higher levels than the first quarter.
Negative Points
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Persistent global uncertainty due to policy shifts, tariffs, and geopolitical developments continues to cloud visibility.
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The macroeconomic backdrop remains unpredictable, impacting the company's ability to forecast future performance accurately.
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The company has taken a more conservative approach to capital allocation due to broader global uncertainty.
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There is a significant disconnect between ship values and tanker rates, influenced by global uncertainty.
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The impact of tariffs and ongoing trade wars could potentially affect chartering habits and market dynamics.
Q & A Highlights
Q: How are ship values holding up given the disconnect between equities and tanker values? A: Emanuele Lauro, CEO, explained that the correction in ship values is closely tied to global uncertainty over the past six months. Despite positive fundamentals, values are expected to readjust to match rates once global conditions stabilize.