Scorpio Tankers Inc.has released its financial results for the first quarter of 2025, ending March 31st. In addition to reporting its financial performance, the Company announced that its Board of Directors has approved a quarterly cash dividend of $0.40 per share for its common shareholders, reports Scorpio Tankers.
Lower Than Expected
For the quarter ending March 31, 2025, the company reported a net income of $58.2 million, which translates to $1.26 basic earnings per share and $1.22 diluted earnings per share.
After making certain adjustments (as detailed in the Non-IFRS Measures section), the adjusted net income for the same period was $49.0 million, or $1.06 basic earnings per share and $1.03 diluted earnings per share. These adjustments excluded a $9.4 million fair value gain on financial assets and a $0.3 million loss on debt extinguishment and write-offs of deferred financing fees from the reported net income.
Comparing this to the same quarter in the previous year, the three months ended March 31, 2024, saw a significantly higher net income of $214.2 million, or $4.29 basic earnings per share and $4.11 diluted earnings per share.
The adjusted net income for the first quarter of 2024 was $206.6 million, or $4.14 basic earnings per share and $3.97 diluted earnings per share. These adjustments excluded a $3.7 million loss on debt extinguishment and write-offs of deferred financing fees and an $11.3 million gain on the sale of a vessel from the reported net income.
In summary, the company’s net income and adjusted net income were considerably lower in the first quarter of 2025 compared to the first quarter of 2024.
First Quarter Summary
Here’s a summary of the company’s key activities in 2025.
Chartering Activities:
- In April 2025, a Handymax product tanker (STI Battersea) was time chartered-out for a two-year term at an average rate of $24,000 per day.
- Since January 1, 2025, the charterers of three LR2 tankers (STI Gratitude, STI Gladiator, and STI Guide), which were already under long-term time charter agreements, exercised their options to extend each charter for an additional year at a rate of $31,000 per day. These extensions will commence in May, July, and July 2025, respectively.
Debt Management:
- In April 2025, the company made a $50.0 million prepayment on its 2023 $225.0 Million Revolving Credit Facility. This prepayment covers the remaining 11 quarterly installments (excluding the final balloon payment). The amended terms of this facility allow the company to re-borrow the prepaid amount, reducing by $4.5 million per quarter starting in July 2025. Following this prepayment, the outstanding balance is $102.6 million, with $50.0 million available for borrowing.
- In March 2025, the company redeemed the outstanding balance of $70.6 million of its Unsecured Senior Notes Due 2025, which were scheduled to mature on June 30, 2025.
- In February 2025, the company entered into a new revolving credit facility of up to $500.0 million (the “2025 $500.0 Million Revolving Credit Facility”) with a group of financial institutions. This facility has a seven-year term from the signing date and allows for flexible drawdowns and repayments. It bears interest at SOFR plus a margin of 1.85% per annum on drawn amounts and a commitment fee of 0.74% per annum on undrawn amounts. The facility is collateralized by 26 product tankers and will amortize in quarterly installments (starting after the second anniversary of signing) with a balloon payment at maturity.
- In January 2025, the company successfully placed $200.0 million of new senior unsecured bonds in the Nordic bond market (the “Unsecured Senior Notes Due 2030”). These bonds mature in January 2030 and carry a fixed coupon rate of 7.50% per annum, payable semi-annually.
Investment in DHT Holdings Inc.:
- Since January 1, 2025, the company has purchased an additional 4,295,218 common shares of DHT Holdings Inc. (DHT) at an average price of $10.67 per share.
- During the same period, the company also sold 700,000 common shares of DHT at an average price of $11.85 per share.
- As of the date of the press release, the company owns approximately 7.2% of the outstanding common shares of DHT.
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Source: Scorpio Tankers
