Scorpio Tankers Expands Newbuilding Orders with Two Additional Vessels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy STNG?
Source: seekingalpha
- Newbuilding Order Expansion: Scorpio Tankers announced the purchase of two additional scrubber-fitted LR2 newbuilding product tankers at China's Dalian Shipbuilding for $68.5 million each, with deliveries expected in Q3 and Q4 of 2029, thereby doubling its order at the yard to four vessels and raising its overall newbuilding orderbook to 10 ships.
- Fleet Renewal Strategy: This latest order continues Scorpio's fleet renewal strategy initiated in December, when the company agreed to sell two LR2 product tankers for $52.3 million each while also securing two scrubber-fitted LR2 newbuildings at Dalian for $70.8 million each, scheduled for delivery in Q3 2027.
- Strong Financial Performance: Scorpio reported adjusted Q4 earnings that exceeded analyst expectations, alongside a 7% increase in quarterly dividends to $0.45 per share, reflecting the company's robust performance and profitability in the market.
- Future Delivery Plans: In addition to the four LR2s at Dalian, Scorpio's orderbook includes four MR tankers due for delivery in 2026 and 2027, as well as two VLCCs slated for H2 2028, further enhancing its competitive position in the industry.
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Analyst Views on STNG
Wall Street analysts forecast STNG stock price to fall
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 73.660
Low
53.00
Averages
72.00
High
80.00
Current: 73.660
Low
53.00
Averages
72.00
High
80.00
About STNG
Scorpio Tankers Inc is a Monaco-based provider in the transportation of refined petroleum products. The Company involves in the oil, seaborne transportation of refined petroleum products from the tanker industry to the international shipping markets. It operates through four segments: Handymax, MR (Medium Range), Long Range 1 (LR1)/Panamax and Long Range 2 (LR2)/Aframax. It consists of 113 wholly owned, finance leased or bareboat chartered-in tankers (39 LR2, 60 MR and 14 Handymax). The segments represent a different type of vessel being around 110 with which it operates with the smaller and bigger type of ships that include Handymax, MR, LR1 and LR2 under its own ownership as well as finance, leased or chartered in.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Scorpio Tankers Sells Two MR Product Tankers for $35 Million Each
- Transaction Overview: Scorpio Tankers has entered into agreements to sell two 2015-built scrubber-fitted MR product tankers, STI Brooklyn and STI Black Hawk, for $35 million each, with the sale expected to close in Q2 2026, enhancing the company's liquidity.
- Fleet Restructuring: This sale is part of the company's strategy to optimize its fleet structure, as it currently owns 89 tankers with an average age of 10.1 years, and divesting older vessels will help improve overall operational efficiency.
- Newbuilding Plans: The company has also secured agreements for four MR newbuildings and four LR2 newbuildings, with deliveries expected between 2026 and 2029, which will further strengthen its market competitiveness and service capabilities.
- Market Outlook: By combining the sale of older vessels with newbuilding strategies, Scorpio Tankers aims to enhance its flexibility and adaptability in response to changing global oil transportation demands, positioning itself to tackle future market challenges.
See More
Scorpio Tankers to Sell Two MR Product Tankers for $35 Million Each
- Transaction Value: Scorpio Tankers has entered into agreements to sell two 2015-built scrubber-fitted MR product tankers for $35 million each, totaling $70 million, demonstrating the company's strong pricing power in the market.
- Closing Timeline: The sale is expected to close in the second quarter of 2026, indicating the company's proactive approach to optimizing its asset portfolio in alignment with future market demands and operational strategies.
- Market Impact: This transaction is likely to positively affect Scorpio Tankers' financial position, enhancing liquidity and providing funding for subsequent investments, thereby strengthening the company's competitive edge in the oil transportation sector.
- Strategic Shift: By divesting these two tankers, Scorpio Tankers can concentrate resources on more promising assets, reflecting the company's ability to adapt its strategy flexibly in a dynamic market environment.
See More
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- Q2 Outlook: For Q2 2026, the average daily TCE revenue for LR2 vessels is projected to rise to $101,000, despite only 1,780 expected revenue days, reflecting market volatility and the company's potential for profitability in a high-demand environment.
- Debt and Liquidity Status: As of March 20, 2026, Scorpio Tankers' total debt stood at $589,056,000, with cash reserves of $974,000,000 and net cash of $384,944,000, indicating a strong position in terms of debt servicing and liquidity.
- Vessel Sale Plans: The company has agreements to sell two MR tankers and one LR2 tanker, expected to generate $105,000,000 in cash inflow, which will further enhance the company's financial position and support future expansion plans.
See More
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- Cyclical Sector Gains: Companies in cyclical sectors, such as construction equipment firm Caterpillar and manufacturing conglomerate 3M, outperformed as reduced geopolitical risks highlighted their strong international operations and potential for growth.
- Stock Performance Highlights: Heavy Transportation Equipment company Greenbrier saw a 3.9% increase, while Electrical Systems company Acuity Brands rose by 4.1%, indicating a resurgence of investor interest in these stocks and potential for future growth.
- Oil Price Volatility Impact: Brent crude prices surged over 6% due to geopolitical tensions, and sustained increases could lead to higher inflation, affecting consumer spending and corporate earnings, which complicates the Federal Reserve's interest rate strategy.
See More
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- Chinese Vessel Transit: During the conflict, 11 China-linked vessels successfully navigated the Strait, despite state-owned Cosco Shipping suspending new bookings, indicating a strategic shift in China's shipping approach to mitigate risks in the region.
- Random Attacks Heighten Uncertainty: The International Maritime Organization reports that at least 16 vessels have been struck near the UAE and Iraq, with attacks lacking a discernible pattern, increasing shipping uncertainty and forcing shipowners to seek alternative routes.
- Congestion on Alternative Routes: At the war's onset, 81 container ships were bound for the Strait, with 43 rerouting to other ports, causing significant congestion in alternative hubs like Fujairah and Sohar, thereby impacting global supply chain efficiency.
See More
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- Oil Price Volatility: The closure of the Strait due to the U.S.-Israel conflict with Iran has led to a spike in crude oil prices, and Bessent's comments may alleviate market concerns about further price increases, thereby boosting investor confidence.
- International Cooperation Outlook: Bessent mentioned the potential for collaboration with an international coalition for escorting vessels, a strategic move that not only enhances U.S. influence in the Middle East but may also encourage other nations to participate in securing global energy transportation.
- Air Control Advantage: Bessent emphasized the U.S. air superiority in the region, noting that the Iranian Navy has been significantly weakened, which provides favorable conditions for U.S. Navy escorts to ensure the safe passage of tankers through the Strait of Hormuz.
See More
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- Transaction Overview: Scorpio Tankers has entered into agreements to sell two 2015-built scrubber-fitted MR product tankers, STI Brooklyn and STI Black Hawk, for $35 million each, with the sale expected to close in Q2 2026, enhancing the company's liquidity.
- Fleet Restructuring: This sale is part of the company's strategy to optimize its fleet structure, as it currently owns 89 tankers with an average age of 10.1 years, and divesting older vessels will help improve overall operational efficiency.
- Newbuilding Plans: The company has also secured agreements for four MR newbuildings and four LR2 newbuildings, with deliveries expected between 2026 and 2029, which will further strengthen its market competitiveness and service capabilities.
- Market Outlook: By combining the sale of older vessels with newbuilding strategies, Scorpio Tankers aims to enhance its flexibility and adaptability in response to changing global oil transportation demands, positioning itself to tackle future market challenges.
See More
Scorpio Tankers to Sell Two MR Product Tankers for $35 Million Each
- Transaction Value: Scorpio Tankers has entered into agreements to sell two 2015-built scrubber-fitted MR product tankers for $35 million each, totaling $70 million, demonstrating the company's strong pricing power in the market.
- Closing Timeline: The sale is expected to close in the second quarter of 2026, indicating the company's proactive approach to optimizing its asset portfolio in alignment with future market demands and operational strategies.
- Market Impact: This transaction is likely to positively affect Scorpio Tankers' financial position, enhancing liquidity and providing funding for subsequent investments, thereby strengthening the company's competitive edge in the oil transportation sector.
- Strategic Shift: By divesting these two tankers, Scorpio Tankers can concentrate resources on more promising assets, reflecting the company's ability to adapt its strategy flexibly in a dynamic market environment.
See More
Scorpio Tankers Updates 2026 TCE Revenue and Debt Position
- TCE Revenue Growth: In Q1 2026, Scorpio Tankers reported an average daily TCE revenue of $51,000 for LR2 vessels with 2,095 expected revenue days, achieving a 97% utilization rate, indicating stable revenue growth amid strong market demand.
- Q2 Outlook: For Q2 2026, the average daily TCE revenue for LR2 vessels is projected to rise to $101,000, despite only 1,780 expected revenue days, reflecting market volatility and the company's potential for profitability in a high-demand environment.
- Debt and Liquidity Status: As of March 20, 2026, Scorpio Tankers' total debt stood at $589,056,000, with cash reserves of $974,000,000 and net cash of $384,944,000, indicating a strong position in terms of debt servicing and liquidity.
- Vessel Sale Plans: The company has agreements to sell two MR tankers and one LR2 tanker, expected to generate $105,000,000 in cash inflow, which will further enhance the company's financial position and support future expansion plans.
See More
Trump Administration Delays Military Action Against Iran, Boosting Stocks
- Market Reaction: The Trump administration's postponement of military action against Iran led to a significant rise in the Dow Jones Industrial Average, reflecting increased investor confidence in global economic stability and optimism in trading floors.
- Cyclical Sector Gains: Companies in cyclical sectors, such as construction equipment firm Caterpillar and manufacturing conglomerate 3M, outperformed as reduced geopolitical risks highlighted their strong international operations and potential for growth.
- Stock Performance Highlights: Heavy Transportation Equipment company Greenbrier saw a 3.9% increase, while Electrical Systems company Acuity Brands rose by 4.1%, indicating a resurgence of investor interest in these stocks and potential for future growth.
- Oil Price Volatility Impact: Brent crude prices surged over 6% due to geopolitical tensions, and sustained increases could lead to higher inflation, affecting consumer spending and corporate earnings, which complicates the Federal Reserve's interest rate strategy.
See More
Strait of Hormuz Blockade Raises Global Oil Supply Concerns
- Shipping Traffic Plummets: Since the onset of the conflict on February 28, only 21 tankers have transited the Strait of Hormuz, a drastic drop from over 100 daily before the war, potentially leading to soaring global oil prices and a supply crisis.
- Chinese Vessel Transit: During the conflict, 11 China-linked vessels successfully navigated the Strait, despite state-owned Cosco Shipping suspending new bookings, indicating a strategic shift in China's shipping approach to mitigate risks in the region.
- Random Attacks Heighten Uncertainty: The International Maritime Organization reports that at least 16 vessels have been struck near the UAE and Iraq, with attacks lacking a discernible pattern, increasing shipping uncertainty and forcing shipowners to seek alternative routes.
- Congestion on Alternative Routes: At the war's onset, 81 container ships were bound for the Strait, with 43 rerouting to other ports, causing significant congestion in alternative hubs like Fujairah and Sohar, thereby impacting global supply chain efficiency.
See More
U.S. Navy to Escort Vessels Through Strait of Hormuz
- Escort Plan Initiation: Treasury Secretary Scott Bessent announced that the U.S. Navy will begin escorting vessels through the Strait of Hormuz as soon as militarily feasible, highlighting the U.S. commitment to ensuring the safe passage of oil tankers, which could influence global oil price trends.
- Oil Price Volatility: The closure of the Strait due to the U.S.-Israel conflict with Iran has led to a spike in crude oil prices, and Bessent's comments may alleviate market concerns about further price increases, thereby boosting investor confidence.
- International Cooperation Outlook: Bessent mentioned the potential for collaboration with an international coalition for escorting vessels, a strategic move that not only enhances U.S. influence in the Middle East but may also encourage other nations to participate in securing global energy transportation.
- Air Control Advantage: Bessent emphasized the U.S. air superiority in the region, noting that the Iranian Navy has been significantly weakened, which provides favorable conditions for U.S. Navy escorts to ensure the safe passage of tankers through the Strait of Hormuz.
See More
