0001483934-26-000042
SEC filingScorpio Tankers reported Q1 2026 net income of $216.3 million ($4.58 basic EPS), declared a $0.45 quarterly dividend, increased its share repurchase program to $500.0 million, issued $375.0 million in convertible notes, and announced vessel sales totaling over $600 million.
Scorpio Tankers delivered a materially stronger Q1 2026 performance driven by elevated tanker market rates and strategic asset monetization. Net income surged to $216.3 million, more than tripling year-over-year, with adjusted net income rising to $150.9 million — underscoring core operating strength beyond one-time gains. The $65.9 million gain on vessel sales contributed meaningfully but was explicitly excluded from adjusted metrics, indicating management’s focus on sustainable earnings power. TCE revenue data reveals robust demand: LR2 average daily TCE reached $96,000 in early Q2 (up sharply from $50,830 in Q1), with 41% of LR2 days contracted at premium pool/spot rates — signaling continued tightness in the midsize tanker segment. Capital allocation was aggressive and multi-pronged: the $0.45 dividend reaffirms shareholder returns, while the $500 million repurchase program expansion — now covering convertible notes — provides unprecedented flexibility. The $375 million convertible note issuance adds long-dated, low-cost capital without immediate dilution (conversion threshold ~$100.39/share, well above current trading levels), and the $50 million Bank of America facility supports targeted refinancing. Critically, over $605 million in vessel sales — spanning older LR2s and MRs — accelerates fleet modernization and de-leveraging, with pro forma net cash improving to $479 million as of May 1. Liquidity remains exceptionally strong at $1.4 billion cash plus $712 million undrawn revolvers, positioning the company to capitalize on acquisition opportunities or further opportunistic buybacks amid sustained market strength.