Scorpio Tankers Q3 2024

[HohumYNWA]

Scorpio Tankers (STNG) announced Q3 2024 results on 10/29. Among the items

• Rev of $268M
• Net Income of $158.7M
• TCE rev (daily): LR2 $31.6K, MR2 $20.8K, Handymax $13K
• Significantly improved rates for Q4 2024, across all vessel sizes
• Continue to pay down debt and reduce leverage.
• Passive investment in DHT holdings
• STNG repurchased own shares during the qtr @ $73+/sh
• Declared div of 40c/sh
  Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2024 and the Declaration of a Dividend | Seeking Alpha

Company has around 15 - 16 vessels under time charters. In general, rates were probably decent when signed. However, more recent charters probably have much better margins. STNG have also been monetizing with decent gains on some vessel sales.

STNG was a very profitable 10-month holding. No position currently. May consider a do-over

[HohumYNWA]

A couple of additional comments on the DHT investment

1. STNG purchased almost 8M shares @ $11+, so a decent size passive investment
2. DHT had a “poison pill”-type clause added to its ??? (shareholder plan, I think it is), to prevent a take-over by FRO. At the time, FRO already had a double-digit %, so STNG’s almost 5% stake is not close to the trigger.

[Edit: Thought I had commented on the various vessel category rates for the most recent qtr. Q3 is traditionally a weaker qtr for conventional tanker segment. However, I think STNG’s Q3 rates seem weaker across each category. My expectation (daily rate)
LR2 - $33k - $35K
MR2 $28K - $31K
Handy > $19K ]