Key Takeaways
Scorpio Tankers Inc. reported first-quarter net income of $216.3 million, a more than 270% increase from a year earlier, as stronger charter rates and higher demand for petroleum product transport boosted earnings.
The company also announced its board of directors declared a quarterly cash dividend of $0.45 per share.
The Monaco-based tanker owner posted diluted earnings per share of $4.32, up from $1.22 in the same period last year. Adjusted net income, which excludes gains on vessel sales, was $150.9 million, or $3.02 per diluted share. Time charter equivalent (TCE) revenue, a key industry metric, rose 48% to $303.0 million.
The robust results reflect a tightening supply-demand balance for product tankers, which was further amplified by fleet dislocations from disruptions in the Middle East. Scorpio Tankers also replenished its securities repurchase program to $500 million, signaling confidence in its financial position and future cash flow.
The company's fleet achieved an average daily TCE revenue of $37,697 in the first quarter, a significant jump from $23,971 in the first quarter of 2025. Vessel operating costs increased slightly to $8,355 per day from $7,924 a year earlier, which the company attributed mainly to the timing of spares and stores expenses.
Scorpio Tankers has been actively managing its fleet, closing the sale of four vessels in the first quarter and entering agreements to sell an additional nine tankers. Concurrently, the company has commitments for ten newbuilding vessels, including four MRs, four LR2s, and two VLCCs, with deliveries scheduled from 2026 through 2029.
As of May 1, 2026, Scorpio Tankers had $1.4 billion in unrestricted cash and cash equivalents. The company recently issued $375 million in convertible senior notes due 2031 and secured a commitment for a new $50 million credit facility to refinance two vessels.
The strong earnings and shareholder returns underscore a continued bullish cycle for the product tanker market. Investors will be watching the company's second-quarter results to see if the favorable rate environment persists and how the company utilizes its significant liquidity for fleet renewal and shareholder returns.
This article is for informational purposes only and does not constitute investment advice.
