Scorpio Tankers Stock Earnings Reports

Scorpio Tankers reported a strong Q3 2025 with robust earnings and cash generation. Key financials: adjusted EBITDA of $148.1 million and adjusted net income of $72.7 million ($1.49 diluted). Liquidity is approximately $1.4 billion (cash plus undrawn revolvers and DHT stake). Management has aggressively delevered over the past four years, reducing the company's daily cash breakeven from about $17,500 to $12,500 and expects further reduction to around $11,000/day after planned prepayments of $154.6 million that will eliminate scheduled loan amortization for 2026–2027. The board increased the quarterly dividend by 5% and will review it at least annually, prioritizing a sustainable, durable, steadily growing payout. Operationally, management highlighted structural bullish drivers for product tankers: longer voyages and ton-mile growth driven by refinery closures and shifting trade patterns, an aging and effectively shrinking fleet (notably sanctioned vessels being removed from mainstream trades), limited effective newbuild growth, and the potential for further tightening from sanctions and shifting flows. Management is focused on preserving optionality via a strong balance sheet — they are opportunistic on asset sales/purchases and on their DHT equity position (recent sale at ~20% net ROI including dividends). With lower breakevens and substantial liquidity, the company projects significant cash generation potential at prevailing and higher TCEs and is positioned to weather volatility while returning capital to shareholders.