Scorpio Tankers (STNG, Financial) has become the center of attention due to a merger and acquisition rumor reported by the M&A-focused Betaville blog. This speculation has reportedly stirred interest among investors, according to sources connected to the situation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Scorpio Tankers Inc (STNG, Financial) is $63.33 with a high estimate of $75.00 and a low estimate of $47.00. The average target implies an upside of 44.63% from the current price of $43.79. More detailed estimate data can be found on the Scorpio Tankers Inc (STNG) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Scorpio Tankers Inc's (STNG, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Scorpio Tankers Inc (STNG, Financial) in one year is $48.32, suggesting a upside of 10.34% from the current price of $43.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Scorpio Tankers Inc (STNG) Summary page.
STNG Key Business Developments
Release Date: May 01, 2025
- Adjusted EBITDA: $123 million for Q1 2025.
- Adjusted Net Income: $49 million, or $1.03 per diluted share for Q1 2025.
- Debt Reduction: Reduced debt by $2.2 billion since 2022.
- Liquidity: Approximately $1.4 billion, including $397 million in cash and $838 million in undrawn revolving capacity.
- Revolving Credit Facility: $50 million paid into a $225 million facility, covering all remaining quarterly principal amortization payments until January 2028.
- Investment in DHT: Increased by purchasing 4.3 million shares at an average price of $10.67 per share.
- Net Debt: Declined to $535 million as of the press release date.
- Cash Breakeven: Lowered to $12,500 per day.
- Time Charter Coverage: Extensions on three LR2 tankers at $31,000 per day and a new two-year charter on a Handymax tanker at $24,000 per day.
- Cash Flow Potential: Up to $271 million at $20,000 per day, $632 million at $30,000 per day, and $994 million at $40,000 per day.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Scorpio Tankers Inc (STNG, Financial) reported strong financial results with $123 million in adjusted EBITDA and $49 million in adjusted net income for the first quarter of 2025.
- The company has significantly reduced its debt by $2.2 billion since 2022, strengthening its balance sheet.
- Liquidity stands at approximately $1.4 billion, including nearly $400 million in cash and $838 million in undrawn revolving credit capacity.
- Operational upgrades have been completed on 63 vessels over the last six quarters, enhancing vessel efficiencies and reducing the need for repositioning voyages.
- The outlook for both crude and refined oil products remains positive, with product tanker rates starting the second quarter at higher levels than the first quarter.
Negative Points
- Persistent global uncertainty due to policy shifts, tariffs, and geopolitical developments continues to cloud visibility.
- The macroeconomic backdrop remains unpredictable, impacting the company's ability to forecast future performance accurately.
- The company has taken a more conservative approach to capital allocation due to broader global uncertainty.
- There is a significant disconnect between ship values and tanker rates, influenced by global uncertainty.
- The impact of tariffs and ongoing trade wars could potentially affect chartering habits and market dynamics.
