Scorpio Tankers announced a major fleet expansion that will add two Very Large Crude Carriers (VLCCs) to its roster. The company signed letters of intent with Hanwha Ocean Co. Ltd. in South Korea for the newbuilds, each priced at $128 million and scheduled for delivery in the third and fourth quarters of 2028. The move marks the company’s first foray into the crude‑tanker segment and positions it to capture larger crude shipments as global demand for high‑capacity carriers grows.
In addition to the VLCCs, Scorpio Tankers completed a divestiture of its stake in DHT Holdings. The company sold 2,382,226 shares at an average price of $13.25 per share, reducing its ownership to 1,169,568 shares. The sale provides liquidity that can be deployed toward the newbuilds and other strategic initiatives while trimming exposure to the operator’s earnings profile.
The company also confirmed the sale of four medium‑range (MR) and two LR2 product tankers, with closing dates in Q4 2025 and Q1 2026. Simultaneously, it announced the construction of four new MR vessels, slated for delivery in 2026 and 2027. These transactions improve the fleet’s age profile and introduce scrubber‑equipped, modern vessels that enhance operational efficiency and reduce environmental compliance costs.
Scorpio Tankers’ Q3 2025 earnings demonstrated the financial strength needed to support the expansion. Earnings per share rose to $1.49, beating the consensus estimate of $1.39 by $0.10, while revenue reached $232.92 million, exceeding the $228.09 million forecast. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin crude‑tanker operations, offsetting a 9.9% year‑over‑year decline in revenue and a drop in net income from $158.7 million to $84.5 million. Gross profit margins remained robust at 62.68% and net margins at 32.01%, underscoring the company’s ability to maintain profitability amid a challenging market environment.
Management highlighted the long‑term conviction behind the VLCC investment. Chairman and CEO Emanuele Lauro said the newbuilds “represent a logical and efficient extension of our long‑term view of the crude‑tanker market” and that capital expenditures are weighted toward the end of 2027 and beyond. He added that the sale of older MR vessels and the acquisition of modern newbuildings “enhance the fleet’s age profile and overall quality while requiring minimal incremental capital expenditure.” These comments reinforce the company’s strategy of balancing fleet modernization with disciplined capital allocation, supported by a liquidity position of roughly $1.4 billion and a low debt profile.
Overall, the combination of a strategic fleet expansion, a significant equity divestiture, and a solid earnings performance positions Scorpio Tankers to capitalize on the growing demand for large crude carriers while maintaining financial flexibility for future growth opportunities.
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