Scorpio Tankers has secured five‑year time‑charter agreements for its 2015‑built LR2 product tankers, STI Rose and STI Alexis, at a rate of $29,000 per vessel per day. The contracts will begin in the first quarter of 2026 and provide a steady, long‑term revenue stream that complements the company’s existing charter and spot market operations.
The new agreements are expected to add roughly $21.2 million in annual revenue per vessel, or $42.4 million for the two ships, and will help shore up cash flow, support debt repayment, and fund future fleet‑modernization initiatives. By locking in a fixed rate, Scorpio Tankers reduces its exposure to the volatility of spot rates, which have fluctuated sharply in recent months due to geopolitical tensions and supply‑chain disruptions.
Scorpio Tankers’ broader strategy focuses on fleet renewal, selling older LR2 vessels and acquiring newbuildings with deliveries through 2028. The time‑charter deals fit this plan by providing predictable income while the company continues to trim its older fleet. The company’s gross profit margin of 62.7 % and a debt‑to‑equity ratio of 0.29 demonstrate a solid balance sheet that can absorb the long‑term commitment.
In its most recent quarterly report, Scorpio Tankers posted a net income of $84.5 million, down from $158.7 million a year earlier, but the company’s dividend was increased to $0.42 per share. The new charters help offset the decline in earnings by adding a reliable revenue source and supporting the dividend policy.
Overall, the five‑year charters for STI Rose and STI Alexis provide Scorpio Tankers with a stable, long‑term income stream that strengthens its financial position and aligns with its fleet‑renewal strategy, positioning the company for continued growth in a volatile market.
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