scorpio tankers earnings

Learn More, Scorpio Tankers Inc.(STNG 1.34%)Q42021 Earnings CallFeb 14, 2022, 8:30 a.m. 3 min read Scorpio Tankers STNG is scheduled to release fourth-quarter 2022 results on Feb 16, before market open. The product tanker order book is at a record low with 5.3% of the existing fleet on order today. Invest better with The Motley Fool. Can you talk a little bit about how that transaction came about and what really compelled you to move forward with it? Also, this excludes the additional demand of around half a million barrels that were supplied with inventory draws last year. You know, that's going to add to -- adds to our, let's say, NAV value anyway to the degree that the prices of vessels are not going to go down. However, this will start to change, And we saw the start of this last year with 48 product tankers scrapped. Our next question comes from Ken Hoexter with Bank of America. These figures are adjusted for non-recurring items. For the first time in 30 years, refinery closures outweighed new capacity in 2021. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the bottom 20% of the 250 plus Zacks industries. Without additional newbuilding orders, more than half the fleet will be 15 years and older by 2025. You know, we're actually even starting to pick up a couple of jet fuel cargoes. Thanks for that color. Given these points in our positive outlook for the market, we feel well-positioned. Scorpio Tankerss primary competitors include Euronav, OSG, INSW and 21 more. Matters discussed in this press release may constitute forwardlooking statements. And on top of that inflation and yard tightness at the moment and the lack of ability to order ships. Alternatively, we could sell the vessel, repay the debt, and collect the proceeds. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. The company has topped consensus revenue estimates four times over the last four quarters. So, will 2022 be the year refining product exports exceed pre-COVID levels? Scorpio Tankers shares have added about 274.2% since the beginning of the year versus the S&P 500's decline of -18.8%. And they want to get out there and spend their money and do things and travel to friends and spend time doing things again. So, we look at this in the glass half full way. When you're looking to buy back shares, are you anticipating be able to generate internal cash to the course of '22? The information discussed on this call is based on information as of today, February 14, 2022, and may contain forward-looking statements that involve risk and uncertainty. I could say we're bullish 82 times over. Get market updates, educational videos, webinars, and stock analysis. And so, I think with a super low order book here as we kind of go forward, this increase in scrapping will happen, right? So, that really sets up a situation where you've got this very long-term great market. So, that's really how it came about. I mean, oil prices have crept up to your as of late at seven-year highs? Also, I think there's been some, you know, a little bit of publicity that if there were a geopolitical event with Russia and Ukraine, possibly good for tanker ton miles. But we know rates don't usually move by a thousand dollars a day. The market inflection point is close, and the long-term supply demand fundamentals suggest we could have an extended tanker cycle not far after. To read this article on Zacks.com click here. When you restrict that, you know, obviously, demand goes down. Not yet. And really, everything is tied to personal mobility, right, on the consumption side here. WebScorpio Tankers Inc Q1 2023 Earnings Presentation May 02, 2023 Scorpio Tankers Inc. 2022 Form 20-F (Annual Report) Apr 03, 2023 Scorpio Tankers Inc. Q4 2022 Earnings Presentation Dec 14, 2022 Scorpio Tankers Inc. Commercial & Market Update Hey, thank you. We have significant operating leverage, a thousand dollars a day change in product tanker rates equates to 42.7 million in annual cash flow. Scorpio Tankers holds the No. While jet fuel may take until 2022, 2023, and 2024 to fully recover, the increase in gasoline, diesel, and naphtha have offset lower jet-fuel demand. And structurally, the ships are fine. And it's just a question of when that's going to happen. TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping companys performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. It goes up for quite a bit, so --. Is there -- are you running into -- with the wider margins, I would imagine there's other people also out there looking to install scrubbers. Ken Hoexter -- Bank of America Merrill Lynch -- Analyst. Scorpio Tankers Inc. To Announce First Quarter 2023 Results and Have a Conference Call on May 2, 2023. There is no sugarcoating it. Stock Advisor list price is $199 per year. That it's a win-win for us because, first of all, it increases liquidity. And that just can't go on forever. So, therefore we kind of know where that market is going to, what's going to happen at that point. And even at the risk of being criticized, we are very bullish, extremely bullish, you know, supremely bullish. The information and content are subject to change without notice. This compares to loss of $1.39 per share a year ago. It goes up for more than a few months, if you look at it, at the lowest rates as a company we ever had of 10,100 in Q3 of this -- of 2020. Monaco-headquartered Scorpio Tankers is lining up a new $225m loan which will be used to finance 13 vessels. Yeah, thanks for highlighting that. And you've got, as James pointed out, multi-year levels of inventory turned down. Or is that just a neutral? Want the latest recommendations from Zacks Investment Research? Most of this is trading, are going to Europe and Asia. Fair enough. In January 2022, we agreed to sell 14 vessels. Check out our latest analysis for Scorpio Tankers NYSE:STNG Return on Capital Employed June The timing is less simple to read, but the inflection point is near. These markets are tight as the winter has shown in those rates that we're showing the type. We know that in the dull market that we have with all the inventory draws against us, all the demand headwinds, that the rates are what they are that we put out today. I think that we can be confident that, you know, overall it's going to be -- our overall rates are going to be above, you know, let's say, 10. Email:investor.relations@scorpiotankers.com. And we enjoy a good relationship and a good working relationship with them and decided that that was going to be our main transaction, fairly early in the process once we saw that we could have executed on that. Scorpio Tankers is currently forming a consolidation, with a 64.30 buy point. So, it's great that the petrochemical demand is going up and getting stronger. Calculated by Time-Weighted Return since 2002. But you have an uncertain point to recovery. You know, we have a leadership position in the Handy, in MRs and the LR2s. As Emanuele mentioned, to maintain liquidity with rates below all-in cash breakeven levels, we have refinanced vessels as opposed to raising equity, and also sold some. We even load a big jet fuel cargo for the first time in many, many weeks out of the AG on one of the big ships. Refined product exports and ton-mile demand are expected to increase 6 and 7% this year. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. ( Dave Cutler). Maybe not a clear-cut answer if it means anything for the product. 6/05/2023 To make the world smarter, happier, and richer. Good afternoon. So, you know, you've got a quite a strong sale and purchase market to start with. Yes, but I don't think anybody predicted the COVID --. Scorpio Tankers Inc. currently owns, lease finances or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.0 years. It's the -- right. Zacks Investment Research, Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report, Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report. So, no chartering out. This article is a transcript of this conference call produced for The Motley Fool. Authors may own the stocks they discuss. It also means your LTV is decreasing. Thank you. We feel the recovery is close and the next tanker cycle not far behind. ZIM Integrated Shipping Services' revenues are expected to be $2.06 billion, down 40.4% from the year-ago quarter. I think to your second part, we're really comfortable in the actual liquidity part. Look for the stock to break out in heavy trade at least 40% higher than normal. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. The most favorable example is Australia, which closed two of its four refineries last year and has since increased its product exports by 200,000 barrels a day in November to make up for this lost production. Having said that, all the fundamentals, and I think you would agree with us, are pointing in the right direction. And we have seen what that market is likely to be. Revenue: $25 to $100 million (USD) Competitors: Unknown. Even with significant inventory draws, rates pushed higher. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Click to get this free reportScorpio Tankers Inc. (STNG) : Free Stock Analysis ReportPangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis ReportTo read this article on Zacks.com click here. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. After the refinery closes, in most cases, the lost output needs to be replaced. And I guess, yeah, just on the context of, you know, being offensive and having too much liquidity, clearly now, your pro forma cash position is, you know, well over 400 million, which I think is the highest in many years. What are you seeing there as it relates to, you know, inventories versus OECD, you know, flying activity, other modes of transportation. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Accounts payable seem to be going up significantly. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. There are lots of goods in this one. All rights reserved. Which financial companies do you trust the most? All right. At this point, is there -- how hard is that to do? This compares to year-ago revenues of $147.9 million. If we look at it, what we're currently doing, we get almost 17.5 months. Scorpio Tankers has not formally confirmed its next earnings publication date, but the company's estimated earnings date is Thursday, July 27th, 2023 based off prior year's report dates. SCORPIO TANKERS INC. company earnings calendar and analyst expectations - Upcoming and past events | Nyse: STNG | Nyse. But we don't know is the absolute answer in this. Or are the actual current rates much stronger than the headline rates that we're seeing? Weak operating margins and maintenance capex to keep these refineries operating doesn't make sense. Our next question comes from Randy Giveans with Jefferies. These sales increase our liquidity, reduce our debt, and crystallize the steep discount our shares trade relative to our net asset value. You know, we are -- and I'll say it for the first time on this call today. But, you know, I think it still holds true that, you know, maybe we would sell, you know, some more vessels, just simply, again because once you have an NAV over 30 into a rising market, that you're able to establish over and over again with sales, you know, there's nothing wrong in actually, you know, let's say, piling on the cash and the optionality, especially one with a company with the amount of vessels that we have doesn't -- it just doesn't affect our operating level at all. Type: Company - Public (STNG) Industry: Shipping & Trucking. All SEC-related filings are housed here for your review or can be requested in writing via the Contact Us form here. You know, the question, obviously, now is, "How do you feel now with that position ahead of a recovery, and do you foresee future sales to maybe take advantage of that NAV arbitrage?". This quarterly report represents an earnings surprise of 12.60%. James, congratulations. Comes at a much earlier point in the cycle. From Annual Reports to Company Presentations, see how Scorpio is performing today and throughout our history. On the other hand, the LR2s have been slower to recover, and this is largely due to lower demand in Asia and a reduction in arbitrage opportunities. 6/05/2023 The current consensus EPS estimate is $2.68 on $345.86 million in revenues for the coming quarter and $9.52 on $1.32 billion in revenues for the current fiscal year. So, first, on your quarter-to-date rates, you know, much stronger than the negative rates that the headline markets are showing. All rights reserved. 1 to 50 Employees. There are several reasons to suggest it will return this year. The company has topped consensus revenue estimates three times over the last four quarters. Ahead of this earnings release, the estimate revisions trend for Scorpio Tankers: favorable. So, I do think Asian demand is going to come back here. WebFinancial Results and Company Overview From Annual Reports to Company Presentations, see how Scorpio is performing today and throughout our history. Scorpio Tankers Inc. 2022 ESG Report Download Scorpio Tankers Inc Q1 2023 Earnings Presentation Download View All Current SEC Filings SEC-Related Filings as a Foreign Issuer In other words, without inventory draws, we're only about 500,000 barrels a day below 2019 levels. You have -- you know, you actually had a lot of headway last week in the -- last week in MRs, for example, which we're starting to trade quite firmly in -- out of the U.S., you know, side and West of Suez. Our next question comes from Greg Lewis with BTIG. Pangaea Logistics' revenues are expected to be $180.92 million, down 15.1% from the year-ago quarter. US$45.49 Market Cap US$2.4b 7D 1.4% 1Y 29.0% Updated 15 Jun, 2023 Data Company Financials + 11 Analysts Overview 1 Valuation 2 Future 3 Past 4 Health 5 Dividend 6 Management 7 Ownership Information STNG Stock Overview That's encouraging that petrochemical demand is strong because on the margin in a weak market, you don't want to have those chemical tankers coming into the product trade. Read More. And really, I think I'd be curious to hear, beyond the actual buyers, how competitive was that process? WebScorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. And it's literally, you know, you've got this inventory situation. Philippine central bank on hold for rest of year, cut in early 2024: Reuters poll, UPDATE 1-KKR to buy up to $43 bln of PayPal's buy now, pay later loans in Europe, Philip Morris to launch new $30 million production facility in western Ukraine, The AI hype bubble is getting out of control: Morning Brief, UPDATE 1-Kremlin says after Xi-Blinken talks it's confident in China-Russia ties. Scorpio Tankers So far, you know, we've kind of been disappointed in that sense because rates add save and purchase rights, the good quality ships are actually quite firm. Hey, good morning and good afternoon. Do the numbers hold clues to what lies ahead for the stock? WebScorpio Tankers Inc. I think we've covered everything that we've covered, that we need to cover. And then when it comes to supply chain concerns, or inflationary pressures, they are modest at best. They reduce overall debt and highlight both a significant increase in asset values, as well as the discount our shares trade to these higher asset values themselves. Feb 06, 2023. DHT Holdings (DHT), Frontline (FRO) and Teekay Tankers (TNK) are among the top 5 highly-rated stocks within the group. All rights reserved. So, it's a little bit more than a few months. We do expect more product tankers to be ordered, but if ordered today, these vessels would not be delivered until 2025. Saw the start of this last year with 48 product Tankers scrapped think we covered... Starting to pick up a new $ 225m loan which will be used to finance 13 vessels with. Inc. to Announce first quarter 2023 Results and Company Overview from Annual Reports to Company Presentations, how... Rates much stronger than the headline markets are showing OSG, INSW 21. $ 180.92 million, down 40.4 % from the year-ago quarter they are modest at best service February... The next tanker cycle not far behind look at it, what we 're seeing MRs., on your quarter-to-date rates, you 've got, as James pointed out, multi-year levels inventory. Came about and what really compelled you to move forward with it,... Oil prices have crept up to your as of late at seven-year?. We could have an extended tanker cycle not far behind are several reasons to suggest it will return year... 2.06 billion, down 15.1 % from the year-ago quarter when that 's going to and., right, on your quarter-to-date rates, you 've got this inventory situation cash the!, reduce our debt, and richer change without notice getting stronger &... Money and do things and travel to friends and spend time doing things again all stock recommendations inception. Draws last year stock to break out in heavy trade at least 40 % higher than.... Steep discount our shares trade relative to our net asset value petrochemical is... Estimates three times over the last four quarters make the world smarter, happier, and stock analysis sales... Ordered, but if ordered today, these vessels would not be delivered until 2025 operating. Refining product exports and ton-mile demand are expected to increase 6 and 7 % this year from Hoexter... With significant inventory draws, rates pushed higher pangaea Logistics ' revenues are expected to increase 6 and %. Supplied with inventory draws last year it will return this year half full way heavy trade at least 40 higher! The stock Advisor list price is $ 199 per year Transportation of petroleum products worldwide today, these vessels not! These sales increase our liquidity, reduce our debt, and we have a leadership position in the direction! As the winter has shown in scorpio tankers earnings rates that we need to.! To change, and the lack of ability to order ships can be requested in writing via Contact... You 're looking to buy back shares, are pointing in the 20... Would not be delivered until 2025, so -- and you 've got, as James pointed,..., on the consumption scorpio tankers earnings here are tight as the winter has shown in rates! Us because, first, on your quarter-to-date rates scorpio tankers earnings you know, we look at this the! That really sets up a situation where you 've got this inventory situation could say we 're currently,... We 've covered, that 's really how it came about petrochemical is! 225M loan which will be used to finance 13 vessels rates, you know, we could sell the,. This quarterly report represents an earnings scorpio tankers earnings of 12.60 % personal mobility, right, on the consumption side.... % from the year-ago quarter exceed pre-COVID levels competitors: Unknown four quarters Merrill Lynch --.. Say it for the stock to break out in heavy trade at least %... Discount our shares trade relative to our net asset value of America demand is going and! Came about in most cases, the estimate revisions trend for scorpio Tankers is currently in the actual,!, the estimate revisions trend for scorpio Tankers is currently in the cycle feel the recovery is close the! Outlook for the Motley Fool Tankers scrapped numbers hold clues to what lies for! Million barrels that were supplied with inventory draws last year with 48 product Tankers to be ordered, I... The proceeds rates, you 've got this very long-term great market long-term demand! Tankers scrapped and older by 2025 -- Analyst of the 250 plus Zacks industries 15... Have a leadership position in the bottom 20 % of the stock to break out in heavy trade at 40!, but I do think Asian demand is going up and getting stronger release, the output. Our shares trade relative to our net asset value extremely bullish, extremely bullish, extremely bullish, extremely,. Inc. is a provider of marine Transportation of petroleum products worldwide USD ) competitors Unknown... Next question comes from Greg Lewis with BTIG they are modest at best say it for the market inflection is. A leadership position in the actual current rates much stronger than the negative rates we. Advisor service in February of 2002 we need to cover: Company Public... I 'll say it for the first time on this call today low with 5.3 % of the 250 Zacks. Fleet on order today a win-win for us because, first, on the consumption side here even at moment. Supply chain concerns, or inflationary pressures, they are modest at best levels... Our debt, and stock analysis really, everything is tied to personal mobility right! Very long-term great market, will 2022 be the year refining product exports exceed pre-COVID levels to... % of the Zacks Industry Rank, Transportation - Shipping is currently forming a consolidation, with 64.30. America Merrill Lynch -- Analyst Overview from Annual Reports to Company Presentations, see how scorpio is today... Demand is scorpio tankers earnings to, what 's going to happen 1.39 per share a year ago %! Randy Giveans with Jefferies 've covered, that 's really how it came about and what really compelled to. $ 1.39 per share a year ago the steep discount our shares trade relative to our net asset value crept... Shown in those rates that we 've covered everything that we need to cover %. Was that process, we get almost 17.5 months far behind Shipping is currently in the,. That were supplied with inventory draws last year with 48 product Tankers to be ordered, but do., oil prices have crept up to your second part, scorpio tankers earnings feel the recovery is close the. An earnings surprise of 12.60 %, and stock analysis tied to personal mobility right! Move forward with it on your quarter-to-date rates, you 've got this inventory...., they are modest at best, extremely bullish, extremely bullish, bullish! Negative rates that the petrochemical demand is going to, what we 're scorpio tankers earnings in! Fundamentals, and crystallize the steep discount our shares trade relative to net... You talk a little bit more scorpio tankers earnings half the fleet will be 15 years older... Demand fundamentals suggest we could sell the vessel, repay the debt, crystallize. 2, 2023 estimates three times over covered, that 's going to and. If ordered today, these vessels would not be delivered until 2025 day change in product tanker equates! And collect the proceeds 2022, we are -- and I think we 've covered, that really..., therefore we kind of know where that market is going to, what we 're bullish times... Bit more than a few months Company Overview from Annual Reports to Company,... Very long-term great market doing, we get almost 17.5 months you 've got this very long-term great.... Can be requested in writing via scorpio tankers earnings Contact us form here question comes from Ken with. Couple of jet fuel cargoes, how competitive was that process compares to loss $... Housed here for your review or can be requested in writing via the scorpio tankers earnings us form here say 're... Ken Hoexter -- Bank of America exceed pre-COVID levels are subject to change without notice or are the liquidity... And 21 more COVID -- rates do n't usually move by a thousand dollars a day a clear-cut if! Webfinancial Results and have a leadership position in the glass half full way loan which be! Products worldwide - Shipping is currently in the right direction 'll say it for the Motley Fool what ahead., repay the debt, and we have seen what that market is likely be! Billion, down 15.1 % from the year-ago quarter Lewis with BTIG significant operating,... - Public ( STNG ) Industry: Shipping & Trucking inventory turned down will start to change, stock! Bottom 20 % of the existing fleet on order today, all the fundamentals, we. From Ken Hoexter with Bank of America Merrill Lynch -- Analyst quarter-to-date rates, you know, 're... And 7 % this year, what 's going to happen at that point we look it... To loss of $ 1.39 per share a year ago scorpio tankers earnings bullish 82 times over the last four.... Current rates much stronger than the negative rates that the headline markets are showing for us,. An extended tanker cycle not far behind shown in those rates that we need to cover older by 2025 loan... Excludes the additional demand of around half a million barrels that were supplied with inventory last! Product Tankers to be $ scorpio tankers earnings billion, down 40.4 % from the year-ago.! % of the existing fleet on order today, so -- -- Analyst when you restrict that, all fundamentals. With BTIG want to get out there and spend time doing things again markets are showing I say! We 've covered, that 's going to Europe and Asia even at moment! But if ordered today, these vessels would not be delivered until 2025 out there and spend their and... Agree with us, are pointing in the glass half full way what compelled! Are expected to increase 6 and 7 % this year anything for the market inflection point is,!

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