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MONACO - Scorpio Tankers Inc. (NYSE:STNG), currently trading at $58.69 and considered undervalued according to InvestingPro Fair Value analysis, announced Tuesday it has entered into an agreement to sell its 2020 built scrubber-fitted MR product tanker, STI Maestro, for $42.0 million. The transaction is expected to close within the fourth quarter of 2025.
Following the sale, Scorpio Tankers will own or lease finance 98 product tankers, comprising 38 LR2 tankers, 46 MR tankers, and 14 Handymax tankers. The company’s fleet has an average age of 9.5 years. With impressive gross profit margins of 63% and a strong current ratio of 4.95, InvestingPro data shows the company maintains robust financial health.
Scorpio Tankers describes itself as a provider of marine transportation of petroleum products worldwide. The company made the announcement in a press release statement.
The sale represents a continuation of the company’s fleet management strategy as it adjusts its vessel portfolio. The STI Maestro is a medium-range product tanker equipped with scrubber technology that allows it to comply with maritime emissions regulations.
The transaction comes amid ongoing fluctuations in the tanker market, which has seen varying charter rates and vessel valuations influenced by global shipping demands and regulatory requirements.
In other recent news, Scorpio Tankers reported impressive second-quarter earnings for 2025, surpassing analysts’ expectations. The company’s earnings per share reached $1.41, significantly higher than the projected $1.12, while revenue totaled $230.23 million, exceeding the anticipated $217.73 million. Additionally, Scorpio Tankers has secured a five-year time charter for its LR2 product tanker, STI Orchard, at a rate of $28,350 per day, starting in the third quarter of 2025. This announcement comes as the company’s LR2 vessels are averaging $32,700 per day in the pool and spot market for the third quarter to date.
Analyst firms have also been optimistic about Scorpio Tankers, with BofA Securities upgrading the stock from Neutral to Buy, citing strong product tanker rates and accelerating cash generation. BofA Securities increased its price target to $60.00, while Jefferies raised its price target to $70.00, maintaining a Buy rating. Jefferies highlighted Scorpio Tankers as a primary beneficiary of rising product tanker rates. These developments reflect a positive outlook for Scorpio Tankers in the current market environment.
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