Scorpio Tankers reports strong H1 2024 results

Scorpio Tankers has reported a strong financial performance for the first half of 2024, with results for the second quarter reflecting a marked improvement over the previous year.

The company, a leading player in the global product tanker market, revealed substantial growth in both net income and earnings per share (EPS) during this period.

Concurrently, the board of directors declared a quarterly cash dividend and authorised a notable increase in the company’s securities repurchase programme.

For the second quarter ending 30 June 2024, Scorpio Tankers recorded net income of US$227.3M, translating to basic earnings per share of US$4.54 and diluted earnings per share of US$4.34.

This represents a considerable rise from the same period in 2023, where the company posted net income of US$132.4M with basic EPS of US$2.50 and diluted EPS of US$2.40.

Over the first six months of 2024, the company’s net income reached US$441.5M, with basic EPS standing at US$8.84 and diluted EPS at US$8.45.

This compares favourably with the first half of 2023, during which net income was US$325.6M, with basic EPS of US$5.93 and diluted EPS of US$5.69.

In addition to reporting strong financial results, Scorpio Tankers provided adjusted figures that exclude certain non-recurring items.

Chairman and chief executive Emanuele Lauro underscored the company’s ongoing commitment to enhancing shareholder value through disciplined financial management. He highlighted the company’s strong balance sheet and cash flow generation as key drivers behind the decision to reward shareholders with a dividend.

Operationally, Scorpio Tankers achieved impressive time charter equivalent (TCE) revenue across its fleet. During the second quarter, the company’s LR2 vessels earned an average daily TCE of US$52,807 in the spot market, while MR vessels earned US$37,019.

The company also executed a series of asset sales, selling five MR product tankers, which contributed to its financial liquidity without requiring debt repayments.

Mr Lauro commented on the strategic direction of Scorpio Tankers, emphasising the company’s focus on debt reduction, fleet optimisation and shareholder returns.

He noted the company’s recent actions, including the debt repayments and fleet sales, are intended to lower operating costs and improve financial stability.