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MONACO - Scorpio Tankers Inc. (NYSE:STNG), a $2.68 billion market cap company with an impressive 62.89% gross profit margin, announced Monday it has entered into agreements to sell two 2019-built scrubber-fitted LR2 product tankers for $61.2 million each, with closings expected in the fourth quarter of 2025. According to InvestingPro analysis, the company maintains a strong financial health score of 3.14, rated as "GREAT."
The vessels, STI Lobelia and STI Lavender, are part of the company’s ongoing fleet optimization and balance sheet strengthening strategy. These sales follow the previously announced sale of the 2020-built MR product tanker STI Maestro for $42 million, also set to close in the fourth quarter.
"These sales offer the dual benefit of capitalizing on cyclically high secondhand vessel values while further strengthening our balance sheet," said Emanuele Lauro, Chairman and Chief Executive Officer of Scorpio Tankers.
Following these transactions and planned debt repayments, the company’s pro-forma net debt could decrease to approximately $131.3 million from $290.8 million as of September 25, 2025. This aligns with InvestingPro data showing the company operates with a moderate debt-to-equity ratio of 0.3 and maintains strong liquidity with a current ratio of 4.95.
The company also reported selling 4,778,000 common shares in DHT Holdings Inc. during the third quarter at an average price of $12.50 per share, retaining 4,054,480 shares in DHT.
Additionally, Scorpio plans to exercise purchase options on three vessels currently financed through sale and leaseback arrangements. Two vessels are scheduled for purchase in December 2025 and one in February 2026, with an aggregate outstanding lease obligation of $67.8 million.
After the announced sales, Scorpio Tankers will own or lease finance 96 product tankers with an average age of 9.5 years, according to the company’s press release statement. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive ProTips available to subscribers, including insights on shareholder returns and dividend stability. Get access to the comprehensive Pro Research Report for deeper analysis of STNG’s financial health and market position.
In other recent news, Scorpio Tankers Inc. reported strong second-quarter earnings for 2025, with earnings per share reaching $1.41, significantly surpassing analyst forecasts of $1.12. The company’s revenue also exceeded expectations, coming in at $230.23 million compared to the anticipated $217.73 million. Additionally, Scorpio Tankers announced the sale of its 2020-built MR product tanker, STI Maestro, for $42 million, with the transaction expected to close in the fourth quarter of 2025. BofA Securities upgraded Scorpio Tankers from Neutral to Buy, citing strong product tanker rates and accelerating cash generation as positive indicators. Jefferies also raised its price target for the company to $70, maintaining a Buy rating, highlighting Scorpio’s advantageous position in the rising product tanker market. Furthermore, Scorpio Tankers secured a five-year charter for its LR2 product tanker, STI Orchard, at a rate of $28,350 per day, starting in the third quarter of 2025. The company reported that its LR2 vessels are averaging $32,700 per day in the pool and spot market, covering 86% of its LR2 fleet revenue days. These developments reflect a series of strategic moves and favorable market conditions for Scorpio Tankers.
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