Scorpio Tankers Inc. (STNG): Financial results for Q2 2026
Scorpio Tankers Inc. (STNG) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Scorpio Tankers Inc. Announces Financial Results for the Second Quarter of 2026 and the Declaration of a Dividend MONACO--(GLOBE NEWSWIRE - July 30, 2026) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the thre
How this was made
The 30-second read
Why it matters
Earnings beat and dividend initiation are likely to attract income‑focused investors and support the stock.
Market read
The earnings release provides fresh material for traders; the dividend adds a new income component.
What to watch
Potential volatility from fuel price swings and charter market cycles not reflected in the release.
Scorpio Tankers reported net income of $387.5 million and adjusted net income of $243.7 million for the three months ended June 30, 2026, alongside a $0.45 per common share quarterly dividend.
Vessel revenue, TCE revenue, operating income, net income and adjusted EBITDA all increased substantially from the prior-year quarter as daily TCE rates rose across LR2, MR and Handymax vessels. The result included a $154.1 million gain on sales of vessels, while adjusted net income was $243.7 million. The company also reported $2.0 billion in unrestricted cash and cash equivalents as of July 28, 2026.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Vessel revenueother | $ 408,734 (in thousands of U.S. dollars) | – | – |
| TCE revenuenon-GAAP | $ 391,800 (in thousands of U.S. dollars) | – | increased by $169.0 million to $391.8 million, from $222.8 million |
| Vessel operating costsother | $ 64,827 (in thousands of U.S. dollars) | – | – |
| Voyage expensesother | $ 16,934 (in thousands of U.S. dollars) | – | – |
| Depreciationother | $ 36,244 (in thousands of U.S. dollars) | – | – |
| General and administrative expensesother | $ 46,550 (in thousands of U.S. dollars) | – | – |
| Gain on sales of vesselsother | $ 154,149 (in thousands of U.S. dollars) | – | – |
| Operating incomeother | $ 398,328 (in thousands of U.S. dollars) | – | – |
| Financial expensesother | $ 36,101 (in thousands of U.S. dollars) | – | – |
| Financial incomeother | $ 14,884 (in thousands of U.S. dollars) | – | – |
| Fair value gain on financial liabilities measured at fair value through profit or lossother | $ 13,824 (in thousands of U.S. dollars) | – | – |
| Net incomeother | $ 387,536 (in thousands of U.S. dollars) | – | – |
| Adjusted net incomenon-GAAP | $ 243,720 (in thousands of U.S. dollars) | – | – |
| Basic earnings per shareother | $ 8.47 | – | – |
| Diluted earnings per shareother | $ 7.37 | – | – |
| Adjusted basic earnings per sharenon-GAAP | $ 5.33 | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $ 4.68 | – | – |
| Adjusted EBITDAnon-GAAP | $ 300,500 (in thousands of U.S. dollars) | – | – |
| Fleet TCE per revenue daynon-GAAP | $ 52,661 | – | – |
| Vessel operating costs per dayother | $ 8,394 | – | – |
| Average number of vesselsother | 84.5 | – | – |
| Six-month vessel revenueother | $ 721,594 (in thousands of U.S. dollars) | – | – |
| Six-month operating incomeother | $ 617,843 (in thousands of U.S. dollars) | – | – |
| Six-month net incomeother | $ 603,800 (in thousands of U.S. dollars) | – | – |
| Six-month adjusted net incomenon-GAAP | $ 394,578 (in thousands of U.S. dollars) | – | – |
| Six-month adjusted EBITDAnon-GAAP | $ 514,627 (in thousands of U.S. dollars) | – | – |
| Net cash inflow from operating activities for the six months ended June 30, 2026other | $ 483,499 (in thousands of U.S. dollars) | – | – |
| Cash and cash equivalents as of June 30, 2026other | $ 1,838,782 (in thousands of U.S. dollars) | – | – |
| Gross debt outstanding as of June 30, 2026other | $ 855,000 (in thousands of U.S. dollars) | – | – |
| Net cash as of June 30, 2026other | $ 983,782 (in thousands of U.S. dollars) | – | – |
third quarter of 2026 as of the date hereof outlook
- NoteLR2 pool and spot market average daily TCE revenue: $ 65,000; Expected Revenue Days: 1,282; % of Days: 34 %
- NoteLR2 time charters out of the pool average daily TCE revenue: $ 30,300; Expected Revenue Days: 922
- NoteMR pool and spot market average daily TCE revenue: $ 29,000; Expected Revenue Days: 3,092; % of Days: 46 %
- NoteMR time charters out of the pool average daily TCE revenue: $ 28,000; Expected Revenue Days: 95
- NoteMR bareboat charter out of the pool average daily revenue: $ 12,986; Expected Revenue Days: 91; % of Days: 100 %
- NoteHandymax pool and spot market average daily TCE revenue: $ 20,800; Expected Revenue Days: 1,183; % of Days: 38 %
- NoteHandymax time charters out of the pool average daily TCE revenue: $ 23,000; Expected Revenue Days: 91
- NoteQ3 2026 estimated aggregate drydock costs: $ 10.1; estimated aggregate off-hire days: 155; number of LR2s for drydock: 4
Capital returns
- On July 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.45 per common share, with a payment date of August 31, 2026 to all shareholders of record as of August 17, 2026.
- During the second quarter of 2026, the Company repurchased 1,994,236 shares of its common stock at an average price of $77.72 per share.
- In April 2026, the Company repurchased 1,344,809 shares of its common stock at $74.36 per share.
- On May 7, 2026, the Company repurchased 649,427 shares of its common stock at $84.69 per share.
- As of July 30, 2026, $445.0 million remains available under the Company's 2023 Securities Repurchase Program.
- Dividends paid for the six months ended June 30, 2026 were $ 45,833 (in thousands of U.S. dollars).
- Repurchase of common stock for the six months ended June 30, 2026 was $ 155,000 (in thousands of U.S. dollars).
What drove it
- The company said TCE revenue increased despite the average number of vessels decreasing to 84.5 from 99.0, as average daily TCE revenue increased to $52,661 per vessel from $25,569 per vessel.
- The company attributed stronger TCE revenue to a significantly stronger product tanker market during the three months ended June 30, 2026.
- The conflict in the Middle East initially drove daily spot TCE rates to record levels as exports through the Strait of Hormuz ground to a halt and cargoes were sourced from more distant markets.
- Longer voyage distances from new trade routes mitigated the impact of lower export volumes through the Strait of Hormuz and kept daily spot TCE rates elevated compared with the prior-year quarter.
- Depreciation declined because 25 vessels had either been sold or classified as held for sale since June 30, 2025.
- The company recently agreed to time charter-out STI Notting Hill and STI Westminster for three years at $25,000 per day each, and STI Bronx for three years at $23,900 per day.
Concerns
- Daily spot TCE rates trended down from record highs toward the end of the quarter as initial disruptions gave way to lower export volumes and a repositioned global fleet.
- Vessel operating costs per day increased to $8,394 from $7,630, primarily due to higher repairs and maintenance and spares and stores expenses on LR2 and MR vessels, as well as the timing of certain expenses.
- General and administrative expenses increased to $46.6 million from $29.6 million, primarily due to an increase in compensation related costs.
- Financial expenses increased to $36.1 million from $21.3 million, including $20.2 million of debt extinguishment costs and write-offs of deferred financing fees.
- The company estimates $978.2 million of remaining installment payments for vessels under construction and the VLCC joint venture.
What to watch
- Third-quarter contracted TCE revenue indications across pool and spot market, time-charter and bareboat vessels.
- The extent to which daily spot TCE rates remain elevated following the late-quarter decline from record highs.
- The planned Q3 2026 drydock schedule, including estimated aggregate drydock costs of $10.1 and estimated aggregate off-hire days of 155.
- Deliveries of committed newbuildings, including one MR expected in the third quarter of 2026.
- The timing and funding of the company's remaining $978.2 million estimated installment payments for vessels under construction and the VLCC joint venture.
- Execution of vessel sales, newbuild purchases and the remaining $445.0 million available under the 2023 Securities Repurchase Program.
Balance sheet and cash flow
- As of July 28, 2026, the Company had $2.0 billion in unrestricted cash and cash equivalents and $483.2 million of undrawn revolver capacity under the 2025 $500.0 Million Revolving Credit Facility.
- As of July 28, 2026, gross debt outstanding was $ 655,000 (in thousands of U.S. dollars), cash and cash equivalents were $ 1,962,251 (in thousands of U.S. dollars), and net cash was $ 1,307,251 (in thousands of U.S. dollars).
- Net cash inflow from operating activities for the six months ended June 30, 2026 was $ 483,499 (in thousands of U.S. dollars), compared with $ 191,857 (in thousands of U.S. dollars) for the six months ended June 30, 2025.
- Net cash inflow from investing activities for the six months ended June 30, 2026 was $ 565,889 (in thousands of U.S. dollars), including net proceeds from sales of vessels of $ 674,302 (in thousands of U.S. dollars).
- Net cash inflow from financing activities for the six months ended June 30, 2026 was $ 37,439 (in thousands of U.S. dollars).
- During the second quarter of 2026, the Company made unscheduled debt prepayments of $389.1 million in aggregate on certain secured credit facilities.
- During the second quarter of 2026, the Company issued $605.0 million in aggregate principal amount of Convertible Notes due 2031 bearing interest at a coupon rate of 1.75%.
- In July 2026, the Company redeemed $200 million aggregate principal amount of Nordic Bonds at a make-whole price of 106.4 to par plus accrued but unpaid interest.
Analysis
Scorpio Tankers delivered a materially stronger second quarter under IFRS. Vessel revenue was $ 408,734 (in thousands of U.S. dollars), compared with $ 230,225 (in thousands of U.S. dollars) in the prior-year quarter. TCE revenue was $ 391,800 (in thousands of U.S. dollars), compared with $ 222,764 (in thousands of U.S. dollars), while fleet TCE per revenue day was $ 52,661 versus $ 25,569. The increase occurred despite the average number of vessels declining to 84.5 from 99.0, demonstrating that stronger tanker pricing more than offset the smaller fleet.
The underlying earnings result was strong but reported net income also benefited from asset sales. Operating income was $ 398,328 (in thousands of U.S. dollars), and net income was $ 387,536 (in thousands of U.S. dollars), versus $ 79,078 (in thousands of U.S. dollars) and $ 73,508 (in thousands of U.S. dollars), respectively, in the prior-year period. The quarter included a $ 154,149 (in thousands of U.S. dollars) gain on sales of vessels. Adjusted net income was $ 243,720 (in thousands of U.S. dollars), or $ 4.68 adjusted diluted earnings per share, and adjusted EBITDA was $ 300,500 (in thousands of U.S. dollars).
Rates strengthened across all reported vessel classes. LR2 TCE per revenue day was $ 58,959, MR TCE per revenue day was $ 49,551, and Handymax TCE per revenue day was $ 47,327. Management attributed the rate environment to Middle East disruption, altered trading patterns and longer voyage distances. However, the company also said daily spot TCE rates trended down from record highs toward the end of the quarter. Costs require monitoring: vessel operating costs per day increased to $ 8,394 from $ 7,630, and general and administrative expenses rose to $ 46,550 (in thousands of U.S. dollars) from $ 29,614 (in thousands of U.S. dollars).
Capital allocation combined fleet monetization, debt restructuring, newbuilding commitments and shareholder returns. The company generated $ 483,499 (in thousands of U.S. dollars) of operating cash flow in the six-month period and received $ 674,302 (in thousands of U.S. dollars) of net proceeds from sales of vessels. It issued $605.0 million of Convertible Notes due 2031, prepaid $389.1 million of secured debt during the quarter, and redeemed the $200 million Nordic Bonds in July. As of July 28, 2026, it reported $2.0 billion in unrestricted cash and cash equivalents, $483.2 million in undrawn revolver capacity and $ 1,307,251 (in thousands of U.S. dollars) of net cash.
The company declared a $0.45 per common share quarterly dividend and repurchased 1,994,236 common shares during the second quarter at an average price of $77.72 per share. It also expanded its forward vessel pipeline, with commitments or letters of intent for six LR2s, six MRs and two VLCCs, plus a minority interest in a joint venture constructing eight VLCCs. The filing provides third-quarter contracted rate and revenue-day data rather than consolidated revenue or earnings guidance. Those contracted rate disclosures show substantially lower pool and spot market average daily TCE revenue than the second-quarter realized class rates, alongside scheduled drydock costs and off-hire days.
Not in the filing
stated, not guessed- Gross margin
- Formal consolidated revenue guidance
- Formal operating expense guidance
- Formal tax-rate guidance
- Segment revenue by LR2, MR and Handymax vessel class
- Quarterly operating cash flow for the three months ended June 30, 2026
- Free cash flow
- GAAP financial statements, as the foreign private issuer reports under IFRS
- Prior-release outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Scorpio Tankers filed a Form 6‑K with detailed Q2 2026 results and announced a new quarterly dividend.
Ticker impact
Scorpio Tankers reported Q2 2026 earnings with net income $387.5M and declared a $0.45 quarterly dividend.
stock likely to rise on earnings beat and dividend news
Earnings and dividend are fresh primary disclosures with material profit and cash return, prompting buying interest.
Market effects
Positive for the tanker and broader shipping sector as earnings beat may lift peers.
U.S. investors may see increased demand for maritime exposure.
Limited to shipping industry; no broad market shift.
Counterpoint
If the dividend is unsustainable, price could correct on future cash flow concerns.
Key entities
- CompanyScorpio Tankers Inc.
NYSE‑listed tanker operator reporting Q2 2026 results.
