Scorpio Tankers Inc. Announces a Time Charter-Out Agreement and an Update on Daily TCE Rates

Rhea-AI Summary

Scorpio Tankers (NYSE:STNG) has announced a significant time charter-out agreement for its 2014-built LR2 product tanker, STI Orchard, securing a five-year contract at $28,350 per day starting Q3 2025.

The company also provided Q3 2025 TCE rate updates across its fleet segments: LR2 vessels are achieving $32,700 per day in the pool/spot market and $31,500 for time charters, MR tankers are earning $23,500 and $22,500 respectively, while Handymax vessels are securing $20,500 and $23,000 per day. The company maintains high fleet utilization with 86% of LR2, 85% of MR, and 67% of Handymax expected revenue days in pool and spot markets.

Positive

• Secured long-term 5-year charter agreement at $28,350 per day for LR2 tanker
• Strong TCE rates across all vessel segments, with LR2s earning up to $32,700 per day
• High fleet utilization rates, particularly in LR2 (86%) and MR (85%) segments

Negative

• None.

Insights

Maritime Financial Analyst

Scorpio Tankers secures strong 5-year charter at $28,350/day amid solid Q3 rates, indicating robust demand and stable long-term revenue.

Scorpio Tankers' new 5-year charter agreement for their LR2 tanker STI Orchard at $28,350 per day represents a strategic move to lock in favorable rates for extended period revenue stability. This rate sits slightly below the current LR2 pool/spot rate of $32,700 per day but provides guaranteed income through 2030, reducing exposure to potential market volatility.

The Q3 2025 TCE data reveals particularly strong performance in the LR2 segment, with rates of $32,700 per day significantly outperforming the smaller vessel classes. The MR and Handymax segments are generating respectable but notably lower rates of $23,500 and $20,500 per day respectively. This reinforces the industry trend where larger vessels command premium rates in the current market.

The high utilization rates across vessel classes (86% for LR2s, 85% for MRs, and 67% for Handymax) indicate strong demand for product tankers. The lower Handymax utilization suggests potential maintenance periods or strategic positioning of these smaller vessels.

With this new charter, Scorpio continues balancing its revenue mix between spot market exposure (capturing current high rates) and fixed-rate time charters (ensuring stable cash flow). This prudent approach provides downside protection while maintaining upside potential if market conditions remain strong, enhancing the company's financial resilience through market cycles.

MONACO, Sept. 04, 2025 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today a time charter-out agreement and an update on daily TCE rates.

Time Charter-Out Agreement

The Company recently reached an agreement to time charter-out the 2014 built LR2 product tanker, STI Orchard.  The term of this agreement is for five years at a rate of $28,350 per day commencing in the third quarter of 2025.

Daily TCE Rate Update

Below is a summary of the average daily Time Charter Equivalent (“TCE”) revenue and duration of contracted voyages and time charters for the Company’s vessels (both in the pools and outside of the pools) thus far in the third quarter of 2025 as of the date hereof:

	Pool and Spot Market						Time Charters Out of the Pool				Bareboat Charter Out of the Pool
	Average Daily TCE Revenue(1)		Expected Revenue Days (2)	% of Days			Average Daily TCE Revenue(1)		Expected Revenue Days (2)		Average Daily Revenue (1)		Expected Revenue Days (2)	% of Days
LR2	$	32,700	2,456	86	%		$	31,500	914		$	—	—	100	%
MR	$	23,500	3,707	85	%		$	22,500	454		$	12,750	41	100	%
Handymax	$	20,500	1,183	67	%		$	23,000	91		$	—	—	100	%
	(1)	TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.
	(2)	Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of estimated off-hire days during the period associated with repairs or drydockings. Consequently, Expected Revenue Days represent the total number of days the vessel is expected to be available to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in revenue days. The Company uses revenue days to show changes in net vessel revenues between periods.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns or lease finances 99 product tankers (38 LR2 tankers, 47 MR tankers and 14 Handymax tankers) with an average age of 9.5 years. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward‐looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward‐looking statements in order to encourage companies to provide prospective information about their business. Forward‐looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "expect," "anticipate," "estimate," "intend," "plan," "target," "project," "likely," "may," "will," "would," "could" and similar expressions identify forward‐looking statements.

The forward‐looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies in response to epidemics and other public health concerns including any effect on demand for petroleum products and the transportation thereof, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including the impact of the conflict in Ukraine and the developments in the Middle East, including the armed conflict between Israel and Hamas, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off‐hires, and other factors. Please see the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Contact Information

Scorpio Tankers Inc.

James Doyle – Head of Corporate Development & Investor Relations

Tel: +1 203-900-0559

Email: investor.relations@scorpiotankers.com

FAQ

What is the new time charter agreement announced by Scorpio Tankers (STNG)?

Scorpio Tankers secured a 5-year time charter agreement for its 2014-built LR2 product tanker STI Orchard at $28,350 per day, starting in Q3 2025.

What are the current TCE rates for Scorpio Tankers' LR2 vessels in Q3 2025?

LR2 vessels are earning $32,700 per day in the pool/spot market and $31,500 per day for time charters out of the pool.

How many revenue days does Scorpio Tankers expect for its MR tankers in Q3 2025?

Scorpio Tankers expects 3,707 revenue days for MR tankers in the pool/spot market and 454 revenue days for time charters out of the pool.

What are the fleet utilization rates for Scorpio Tankers' vessels in Q3 2025?

The fleet utilization rates are 86% for LR2 vessels, 85% for MR tankers, and 67% for Handymax vessels in the pool and spot markets.

What are the TCE rates for Scorpio Tankers' Handymax vessels in Q3 2025?

Handymax vessels are earning $20,500 per day in the pool/spot market and $23,000 per day for time charters out of the pool.