Scorpio Tankers Q2 profit misses estimates

Overview

• Product tanker operator's Q2 adjusted EPS missed analyst expectations, adjusted net income missed

• Company declared $0.45 per share quarterly dividend

• Q2 TCE revenue rose on stronger product tanker market

Outlook

• Scorpio Tankers did not provide specific financial guidance for the current or future quarters

Result Drivers

• STRONGER TANKER MARKET - Co said Q2 TCE revenue rose due to a significantly stronger product tanker market, despite a smaller fleet

• MIDDLE EAST CONFLICT - Co said initial disruptions from Middle East conflict caused spot TCE rates to spike to record levels, with new trade routes supporting higher rates despite lower export volumes

• HIGHER OPERATING COSTS - Co said vessel operating costs per day increased due to higher repairs, maintenance, and supply chain adjustments from new trade routes

Company press release: ID:nGNX5khmbS

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Scorpio Tankers Inc is $97.50, about 24.2% above its July 29 closing price of $78.53

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 29 - Bermuda's Teekay Tankers Q2 net income jumps on record spot rates

• July 29 - Ardmore Shipping Q2 revenue jumps on higher spot charter rates

• July 30 - Houthis' Red Sea attacks prompt London insurers to widen high-risk zone

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)