Scorpio Tankers delivered fourth-quarter results that exceeded Wall Street’s expectations, with management attributing the performance to strong operating leverage, disciplined fleet renewal, and support from favorable industry dynamics. CEO Emanuele Lauro highlighted the company's net cash position and lower breakeven costs, noting, “We have fundamentally reset the company.” The quarter was also shaped by a younger, more efficient fleet after selling older vessels and reinvesting in modern newbuildings. Management emphasized robust ton-mile demand, driven by refinery closures lengthening trade routes and constrained vessel supply, as core contributors to revenue growth and margin expansion.
Is now the time to buy STNG? Find out in our full research report (it’s free for active Edge members).
Scorpio Tankers (STNG) Q4 CY2025 Highlights:
- Revenue: $241.4 million vs analyst estimates of $228 million (25.6% year-on-year growth, 5.9% beat)
- Adjusted EPS: $1.62 vs analyst estimates of $1.50 (7.9% beat)
- Adjusted EBITDA: $151.6 million vs analyst estimates of $129.9 million (62.8% margin, 16.7% beat)
- Operating Margin: 55.1%, up from 49.4% in the same quarter last year
- total vessels: 96.5, down 4.4 year on year
- Market Capitalization: $3.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Scorpio Tankers’s Q4 Earnings Call
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Omar Nokta (Clarksons Platou Securities) asked about future dividend policy. CEO Emanuele Lauro said the aim is to grow the dividend sustainably through the cycle, with regular reviews but no fixed schedule.
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Omar Nokta (Clarksons Platou Securities) inquired about VLCC options. Lauro confirmed that prior options expired unused, emphasizing a disciplined and measured approach to new fleet additions.
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Greg Lewis (BTIG) questioned the deployment of LR2s between clean and crude trades. COO Lars Dencker Nielsen explained that the company remains opportunistic, switching only when sustained economics justify the move.
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Greg Lewis (BTIG) followed up on customer appetite for multi-year charters. Lauro noted increased demand and improving rates for longer-term charters, especially in the LR2/Aframax segment.
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Tim Chang (Bank of America) asked about rate outlook in the near term. Management expects a strong market to persist, citing structural tightness and ongoing geopolitical factors.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team is closely monitoring (1) the pace and pricing of asset sales and newbuild deliveries as Scorpio Tankers continues fleet renewal, (2) shifts in global refinery closures and new capacity that could alter trade routes, and (3) the company’s ability to sustain low breakeven costs while increasing shareholder distributions. Developments in sanctions and geopolitical events impacting vessel supply will also be critical to watch.
Scorpio Tankers currently trades at $70.38, in line with $69.89 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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