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Scorpio Tankers Q3 profit beats on strong demand, refining margins

By Reuters News


Overview

  • Product tanker operator's Q3 adjusted EPS beat analyst expectations

  • Q3 adjusted net income slightly missed analyst expectations

  • Q3 net income more than doubled yr/yr, driven by stronger product tanker markets


Outlook

  • Scorpio Tankers expects Q4 2026 LR2 pool/spot TCE revenue at $181,000 per day

  • Company expects Q4 2026 MR pool/spot TCE revenue at $56,000 per day

  • Company says it has a constructive outlook on the VLCC market


Result Drivers

  • STRONGER PRODUCT TANKER MARKET - Co said higher TCE revenue was driven by robust demand, strong refining margins, rising seaborne volumes, and disruption from Middle East conflict

  • FEWER VESSELS - Co said vessel operating costs fell due to a lower average number of vessels following sales of MRs and LR2s

  • LOWER FINANCIAL EXPENSES - Co said financial expenses declined due to reduced debt levels and lower average cost of debt


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$2.49

$2.13 (12 Analysts)

Q3 Adjusted Net Income

Slight Miss*

$127.4 mln

$127.95 mln (7 Analysts)

Q3 Net Income

$224.30 mln

Q3 Dividend

$0.75

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas transportation services peer group is "buy"

  • Wall Street's median 12-month price target for Scorpio Tankers Inc. is $106.50, about 24.8% above its October 27 closing price of $85.33

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 27 - Baker Hughes Q3 net income down by a third on Chart deal costs despite revenue, adj EPS beat

  • Oct 27 - NOV Q3 revenue beats estimates on Middle East demand

  • Oct 26 - Oil spill off UAE widens, satellite images show, prompting more beach closures


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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