Scorpio Tankers Q3 profit beats on strong demand, refining margins
STNG•Scorpio Tankers reported Q3 adjusted EPS of $2.49, above the $2.13 analyst consensus, while adjusted net income of $127.4 million slightly missed expectations. Net income was $224.30 million, and the company expects Q4 2026 TCE revenue of $181,000 per day for LR2 vessels and $56,000 per day for MR vessels.
1. Quarterly results
Scorpio Tankers reported Q3 adjusted EPS of $2.49, beating the $2.13 consensus, while adjusted net income of $127.4 million slightly missed the $127.95 million estimate. Net income was $224.30 million, more than double the year-earlier figure, driven by stronger product tanker markets. The company declared a $0.75 dividend.
2. Market outlook
Scorpio Tankers expects Q4 2026 LR2 pool and spot TCE revenue of $181,000 per day and MR pool and spot TCE revenue of $56,000 per day. The company said it has a constructive outlook on the VLCC market. It attributed stronger TCE revenue to robust demand, strong refining margins, rising seaborne volumes and disruption from Middle East conflict.
3. Cost factors
The company said vessel operating costs fell as its average fleet size declined following sales of MR and LR2 vessels. Financial expenses also declined because of reduced debt levels and a lower average cost of debt.
