Scorpio Tankers reports Q3 net income of $84.5 million, declares dividend

MONACO - Scorpio Tankers Inc. (NYSE:STNG) reported net income of $84.5 million, or $1.81 per basic share and $1.73 per diluted share, for the third quarter ended September 30, 2025, down from $158.7 million in the same period last year. Despite the decline, InvestingPro data shows the company trading at a P/E ratio of 8.44, indicating the stock remains undervalued compared to its Fair Value estimate.

The company’s board of directors declared a quarterly cash dividend of $0.42 per share, payable on December 5, 2025, to shareholders of record as of November 14, 2025, representing a $0.02 increase from the previous quarterly dividend of $0.40. InvestingPro data reveals the company has maintained dividend payments for 13 consecutive years, with a current annual dividend of $1.60 per share yielding 2.58%.

Adjusted net income for the quarter, which excludes a $12.7 million fair value gain on financial assets and a $0.9 million loss on debt extinguishment, was $72.7 million, or $1.56 per basic share. This compares to adjusted net income of $87.7 million in the third quarter of 2024.

Revenue for the quarter decreased to $241.4 million from $268 million in the prior-year period. Time charter equivalent (TCE) revenue fell to $232.9 million from $258.2 million, with average daily TCE revenue decreasing to $26,231 per vessel from $28,488 per vessel a year earlier.

The company attributed the decline in TCE revenue to normalized freight rates following the initial disruption caused by attacks on commercial vessels in the Southern Red Sea. While the situation remains unresolved, trade patterns and supply chains for refined petroleum products have adjusted since the initial spike in rates. Notably, the stock’s beta of -0.01 indicates STNG often moves in the opposite direction of the broader market, potentially offering portfolio diversification benefits.

Scorpio Tankers announced agreements to sell three vessels for a total of approximately $164.4 million, with the sales expected to close in the fourth quarter. The company also reached agreements with lenders to make unscheduled debt prepayments totaling $154.6 million, representing scheduled principal amortization due from January 2026 through December 2027. The company operates with a moderate debt level, with a debt-to-equity ratio of 0.30 and total debt of $909.89 million as of Q2 2025.

As of October 28, 2025, Scorpio Tankers had $626.7 million in unrestricted cash and cash equivalents and $788.3 million in undrawn revolver capacity. The company’s fleet consists of 99 product tankers with an average age of 9.6 years.

The financial results were released based on a company press release statement.

In other recent news, Scorpio Tankers Inc. reported its Q2 2025 earnings, highlighting a robust financial performance. The company demonstrated a significant reduction in net debt, which, alongside strong operating cash flow, paints a picture of financial stability. These results come amid a challenging market environment, showcasing the company’s ability to manage its finances effectively. Despite the positive financial indicators, Scorpio Tankers’ stock experienced a decline in aftermarket trading, reflecting complex market sentiment. The earnings report suggests a cautious yet optimistic outlook for the remainder of the year. Investors and analysts may find these developments noteworthy as they assess the company’s financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.