Welcome to the latest updates from Scorpio Tankers Inc., a prominent player in the transportation of petroleum products. The company recently unveiled details about its securities repurchase program and shared insights into its second-quarter daily Time Charter Equivalent (TCE) revenues.
Scorpio Tankers disclosed that it has repurchased 641,654 of its common shares at an average price of $78.26, leaving $199.8 million available for further repurchases under the 2023 program as of last Thursday.
In the second quarter of 2024, the company estimates that its LR2 class vessels will bring in an average of $55,000 per day, with 81% of the quarter’s revenue days already covered. The MR tankers are expected to generate $37,000 daily, accounting for 88% of the quarter’s days, while the Handymax vessels are projected to earn $28,000 daily, with 80% of the days contributing to the quarter’s revenue.
Scorpio Tankers has also announced agreements to sell six MR tankers, anticipated to close in the third quarter of 2024, as part of its fleet optimization strategy. This move aligns with the company’s goal to enhance its fleet size and composition.
Moreover, Scorpio Tankers reported robust financial results for the first quarter of 2024, showcasing a 20% year-over-year increase in adjusted earnings per share. The company achieved an adjusted EBITDA of $293 million and an adjusted net income of $207 million, prompting BofA Securities to raise its stock price target from $76 to $82.
Notably, Scorpio Tankers plans to make a substantial unscheduled loan repayment of $223.6 million in June 2024 to reduce its daily cash break-even rates. Additionally, the company has been actively repurchasing vessels to strengthen its operational capabilities.
InvestingPro Insights
InvestingPro data highlights Scorpio Tankers Inc.’s market capitalization of $3.87 billion with a low P/E ratio and impressive Gross Profit Margin. The company’s commitment to dividend payments and share repurchase program reflects confidence in its financial stability and growth prospects.
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