Scorpio Tankers (STNG) stock price is $81.05, down 0.49% on the day, as of Oct 19, 2026. It has a market cap of $3.76Bn and a P/E ratio of 4.61, and is classified in the Marine Shipping industry (Industrials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap3.76 Bn
P/E4.61
P/S3.09
Div. Yield0.00
Total Debt (Qtr)728.88 Mn
Revenue Growth (1y) (Qtr)77.54
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About
Scorpio Tankers Inc. provides seaborne transportation of crude oil and refined petroleum products worldwide. The company's core operations involve the maritime movement of energy commodities to support global supply chains. As of March 19, 2026, the company operated a fleet of 90 wholly owned tankers consisting of 34 LR2, 42 MR, and 14 Handymax vessels with a weighted average age of approximately 10.1 years. Notably, many vessels in the fleet are equipped with scrubber…
Scorpio Tankers Inc. provides seaborne transportation of crude oil and refined petroleum products worldwide. The company's core operations involve the maritime movement of energy commodities to support global supply chains. As of March 19, 2026, the company operated a fleet of 90 wholly owned tankers consisting of 34 LR2, 42 MR, and 14 Handymax vessels with a weighted average age of approximately 10.1 years. Notably, many vessels in the fleet are equipped with scrubber systems to comply with sulfur emissions regulations, allowing operation in emission control areas.
Scorpio Tankers generates revenue through time charter agreements, spot market voyages, and participation in commercial pools operated by related entities. The company secures fixed income via longer term time charters, exemplified by recent agreements such as a time charter agreement for LR2 vessel STI Lombard for five years at a rate of $33,000 per day and a time charter agreement for STI Rambla for eight years at a rate of $30,500 per day. Revenue is also derived from voyage charters in the spot market where rates fluctuate based on cargo availability and vessel supply. Furthermore, Scorpio earns through its involvement in commercial pools operated by related entities including the Scorpio LR2 Pool (SLR2P), the Scorpio MR Pool (SMRP), and the Scorpio Handymax Tanker Pool (SHTP), which aggregate vessels from multiple owners to optimize utilization, negotiate better charter rates, and provide customers with reliable service and scheduling flexibility.
Scorpio Tankers maintains a competitive stance in the global tanker sector through its modern fleet and adaptable employment strategy. The company's vessel mix spanning LR2, MR, and Handymax classes allows it to serve both crude oil and refined petroleum products effectively while adjusting to shifts in trade flows and demand patterns. While the tanker industry features intense competition from numerous global operators, Scorpio benefits from its scale of 90 vessels and integration with affiliated commercial pools, which collectively enhance vessel occupancy rates and revenue stability. Additionally, the company's focus on younger vessels with an average age of 10.1 years positions it favorably against older fleets in terms of operational efficiency and regulatory compliance.
The company serves an international clientele engaged in the energy sector including major integrated oil companies, independent petroleum traders, and refining corporations requiring marine transportation services. These customers utilize Scorpio's vessels for the movement of commodities such as crude oil, gasoline, diesel, jet fuel, and other petroleum products across key trade routes. Although specific customer names are not disclosed in the filing, the nature of Scorpio's revenue streams comprising time charters, spot voyages, and pool participation indicates relationships with entities involved in global energy trading, refining, and distribution activities spanning regions from the Americas to Europe and Asia.
Sector:IndustrialsSector rationaleScorpio Tankers operates as a marine shipping company, providing seaborne transportation of crude oil and refined petroleum products. According to the sector definitions, 'Marine Shipping' and 'Logistics' fall under Industrials, and the company's revenue is derived from chartering vessels to energy sector clients.Industry:Marine ShippingMarine ShippingPrimaryScorpio Tankers operates a fleet of 90 tankers (LR2, MR, and Handymax) to provide seaborne transportation of crude oil and refined petroleum products. Its revenue is derived from time charter agreements, spot market voyages, and commercial pools for the maritime movement of energy commodities.Classified using BQ-MICSCIK: 0001483934
Bull & bear
Investment Thesis
▲ Bull case
Scorpio Tankers Inc. is positioned to benefit from a structural shift in global oil flows driven by prolonged geopolitical disruptions in the Strait of Hormuz, which have forced longer voyage distances and increased ton-mile demand for product tankers, particularly LR2 and Aframax vessels. Management highlighted that despite a 1.9 million barrels per day decline in April seaborne exports year-over-year, voyage distances have more than offset lower volumes, tightening effective supply and supporting rates well above $70,000 per day. This dynamic is not temporary but reflects a fundamental rebalancing of trade routes, with U.S. Gulf Coast, African, and European exports now filling gaps left by Middle Eastern and Asian flows. The company’s low cash breakeven of approximately $11,000 per day — the lowest in company history — allows it to generate substantial free cash flow even in volatile markets, with illustrative cash flow generation showing potential annual cash flow of up to $1.1 billion at $50,000 per day TCE. This structural advantage is reinforced by the company’s ability to lock in generational high multiyear time charters at favorable rates, providing a stable income floor while maintaining spot market exposure for upside. The constrained effective fleet growth, adjusted for aging vessels, sanctioned capacity, and LR2 crossover tonnage, means that even with an 18% headline order book, net fleet expansion is projected to average only 3% annually over the next three years, creating a persistent supply-demand imbalance that should support elevated rates through 2029. Furthermore, the company’s balance sheet transformation — reducing net debt by $3.8 billion since end-2021 to a pro forma net cash position of $876 million — provides unprecedented flexibility to capitalize on dislocations, including opportunistic vessel sales at prices above original purchase levels and selective newbuilding investments with 80% of payments deferred until 2027–2029, minimizing near-term capital pressure while modernizing the fleet.
Scorpio Tankers Inc. is positioned to benefit from a structural shift in global oil flows driven by prolonged geopolitical disruptions in the Strait of Hormuz, which have forced longer voyage distances and increased ton-mile demand for product tankers, particularly LR2 and Aframax vessels. Management highlighted that despite a 1.9 million barrels per day decline in April seaborne exports year-over-year, voyage distances have more than offset lower volumes, tightening effective supply and supporting rates well above $70,000 per day. This dynamic is not temporary but reflects a fundamental rebalancing of trade routes, with U.S. Gulf Coast, African, and European exports now filling gaps left by Middle Eastern and Asian flows. The company’s low cash breakeven of approximately $11,000 per day — the lowest in company history — allows it to generate substantial free cash flow even in volatile markets, with illustrative cash flow generation showing potential annual cash flow of up to $1.1 billion at $50,000 per day TCE. This structural advantage is reinforced by the company’s ability to lock in generational high multiyear time charters at favorable rates, providing a stable income floor while maintaining spot market exposure for upside. The constrained effective fleet growth, adjusted for aging vessels, sanctioned capacity, and LR2 crossover tonnage, means that even with an 18% headline order book, net fleet expansion is projected to average only 3% annually over the next three years, creating a persistent supply-demand imbalance that should support elevated rates through 2029. Furthermore, the company’s balance sheet transformation — reducing net debt by $3.8 billion since end-2021 to a pro forma net cash position of $876 million — provides unprecedented flexibility to capitalize on dislocations, including opportunistic vessel sales at prices above original purchase levels and selective newbuilding investments with 80% of payments deferred until 2027–2029, minimizing near-term capital pressure while modernizing the fleet.
Scorpio Tankers Inc. faces significant near-term demand headwinds that management may be underestimating, particularly the persistent decline in refined product demand and inventory draws that could signal deeper structural weakness in global oil consumption rather than temporary disruption. The company acknowledged that refined product demand is expected to decline by approximately 1.5 million barrels per day year-over-year in Q2 before rebounding by 2.4 million barrels per day in Q3, but this recovery is contingent on Strait of Hormuz normalization, which remains uncertain and subject to geopolitical escalation. More critically, high-frequency refined product inventories have declined by more than 80 million barrels since the start of the year, with U.S. inventories drawn in 12 of the past 13 weeks — a trend that, if sustained, could indicate weakening end-demand or refinery rationalization rather than mere stockpiling ahead of a rebound. Management’s emphasis on restocking as a catalyst assumes that global refiners will increase utilization to rebuild stocks, but with global refining capacity growth sluggish and many regions facing margin pressure, there is risk that inventory replenishment lags or fails to materialize at expected scale, leaving the company exposed to a prolonged period of low utilization and weak seaborne flows. Additionally, while the company celebrates its low cash breakeven of $11,000 per day, this metric is heavily dependent on maintaining ultra-low operating costs, which could be challenged by inflationary pressures in crewing, maintenance, and regulatory compliance — particularly for aging vessels, as 21% of the product tanker fleet is already over 20 years old and projected to reach 30% by 2028, increasing the likelihood of costly dry-docks, emissions retrofits, or early retirements. The sanctioned capacity issue further complicates fleet efficiency, with roughly 25% of the Aframax/LR2 fleet and 9% of the MR/Handy fleet sanctioned and averaging 20–21 years of age, meaning a significant portion of the fleet may be structurally impaired, less flexible, and subject to sudden value impairment if sanctions regimes evolve or tighten. Finally, although the company has generated substantial cash from vessel sales — 12 older vessels sold year-to-date at above original purchase levels — this strategy risks accelerating fleet aging if not paired with timely, cost-effective newbuilding, and the $641 million in remaining newbuilding commitments, while deferred, still represent a future capital overhang that could strain liquidity if spot rates weaken unexpectedly before delivery, especially given the company’s stated preference for maintaining flexibility over aggressive fleet renewal.
Scorpio Tankers Inc. faces significant near-term demand headwinds that management may be underestimating, particularly the persistent decline in refined product demand and inventory draws that could signal deeper structural weakness in global oil consumption rather than temporary disruption. The company acknowledged that refined product demand is expected to decline by approximately 1.5 million barrels per day year-over-year in Q2 before rebounding by 2.4 million barrels per day in Q3, but this recovery is contingent on Strait of Hormuz normalization, which remains uncertain and subject to geopolitical escalation. More critically, high-frequency refined product inventories have declined by more than 80 million barrels since the start of the year, with U.S. inventories drawn in 12 of the past 13 weeks — a trend that, if sustained, could indicate weakening end-demand or refinery rationalization rather than mere stockpiling ahead of a rebound. Management’s emphasis on restocking as a catalyst assumes that global refiners will increase utilization to rebuild stocks, but with global refining capacity growth sluggish and many regions facing margin pressure, there is risk that inventory replenishment lags or fails to materialize at expected scale, leaving the company exposed to a prolonged period of low utilization and weak seaborne flows. Additionally, while the company celebrates its low cash breakeven of $11,000 per day, this metric is heavily dependent on maintaining ultra-low operating costs, which could be challenged by inflationary pressures in crewing, maintenance, and regulatory compliance — particularly for aging vessels, as 21% of the product tanker fleet is already over 20 years old and projected to reach 30% by 2028, increasing the likelihood of costly dry-docks, emissions retrofits, or early retirements. The sanctioned capacity issue further complicates fleet efficiency, with roughly 25% of the Aframax/LR2 fleet and 9% of the MR/Handy fleet sanctioned and averaging 20–21 years of age, meaning a significant portion of the fleet may be structurally impaired, less flexible, and subject to sudden value impairment if sanctions regimes evolve or tighten. Finally, although the company has generated substantial cash from vessel sales — 12 older vessels sold year-to-date at above original purchase levels — this strategy risks accelerating fleet aging if not paired with timely, cost-effective newbuilding, and the $641 million in remaining newbuilding commitments, while deferred, still represent a future capital overhang that could strain liquidity if spot rates weaken unexpectedly before delivery, especially given the company’s stated preference for maintaining flexibility over aggressive fleet renewal.