Scorpio Tankers Inc. Announces Sale of Two MR Product Tankers and Time Charter-Out Agreement
Scorpio Tankers Inc. (NYSE: STNG) has revealed agreements for the sale of two mid-range (MR) product tankers, STI San Antonio and STI Texas City, both equipped with scrubbers, for $42.5 million each. Additionally, a new three-year time charter-out agreement for the MR product tanker STI Jardins has been disclosed, with a charter rate of $29,550 per day. These transactions are expected to be finalized in the fourth quarter of 2024, with the charter commencement anticipated in the third or fourth quarter of the same year.
Scorpio Tankers, a leading provider of marine transportation for petroleum products, owns or lease finances a fleet of 104 product tankers. The company plans to sell four MR tankers, with the deals expected to close in the third and fourth quarters of 2024. This news aligns with Scorpio Tankers' broader business strategy and market operations within the marine transportation industry.
The company recently reported strong financial results for the second quarter of 2024, including an adjusted EBITDA of $278 million and an adjusted net income of over $188 million. Scorpio Tankers also reduced its net debt significantly, repurchased shares, and declared a quarterly dividend. The company anticipates continued strength in the product tanker market, with a promising Q3 outlook.
InvestingPro Insights:
Scorpio Tankers Inc. (NYSE: STNG) shows a strong position in the market with strategic asset sales and charter agreements. The company's financial metrics and performance indicate a promising future. With a low P/E ratio and consistent dividend payments, Scorpio Tankers may appeal to investors seeking undervalued opportunities and income-focused investments. Despite a revenue decline, the company's gross profit margins remain robust, and it is predicted to remain profitable.
In conclusion, Scorpio Tankers' recent activities and financial performance suggest a positive outlook for investors. The company's focus on reducing debt, increasing shareholder returns, and exploring new sectors positions it well for growth in the marine transportation industry. Investors looking for potential opportunities in the market may find Scorpio Tankers a compelling choice for their portfolios.
