Scorpio Tankers Inc. Announces Agreements to Sell Four LR2 Product Tankers, a Letter of Intent to Purchase Two Newbuilding MRs and its Intention to Repay All Secured Debt Due 2028
Rhea-AI Summary
Scorpio Tankers (NYSE: STNG) agreed to sell four LR2 product tankers for $285.8 million, with closing expected in Q2 or Q3 2026. The company signed a letter of intent to buy two scrubber-fitted MR newbuildings at $46.25 million each, for delivery in Q1 2030.
Scorpio Tankers plans unscheduled prepayments totaling $367.8 million on secured credit facilities maturing in 2028 and intends to cancel undrawn revolver capacity, leading to termination of these facilities in Q2 2026.
Positive
- Sale of four LR2 product tankers for an aggregate $285.8 million
- Letter of intent to acquire two scrubber-fitted MR newbuildings at $46.25 million each
- Planned unscheduled prepayments totaling $367.8 million on secured credit facilities
- Intention to repay all secured debt maturing in 2028
Negative
- Fleet to be reduced by four LR2 product tankers after vessel sales
- MR newbuilding purchases only at letter-of-intent stage, pending definitive documentation
- Termination of 2023 credit facilities expected after prepayment and revolver cancellations, reducing credit availability
News Market Reaction – STNG
In the May 27 session, STNG declined 3.30%, reflecting a moderate negative market reaction. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | Convertible notes closing | Neutral | -1.6% | Closed additional 2031 convertible notes and completed concurrent stock repurchase. |
| May 07 | Notes pricing & buyback | Neutral | -0.3% | Priced reopening of 2031 convertible notes with concurrent share repurchase agreement. |
| May 07 | Proposed notes reopening | Neutral | -0.3% | Proposed private offering of additional 2031 convertibles and related share repurchases. |
| May 05 | Earnings, dividend, buyback | Neutral | +4.0% | Reported Q1 2026 results, declared dividend and increased repurchase authorization. |
| Apr 27 | New credit facility | Neutral | +1.8% | Announced up to $50M Bank of America facility for two LR2 tankers. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news has focused on convertible note financings, buybacks, strong Q1 earnings, and vessel/credit facility transactions, with generally modest single-day price reactions.
Over the last few months, Scorpio Tankers has combined balance sheet actions with capital returns. It completed and then expanded 1.75% convertible senior notes due 2031, tied to concurrent share repurchases. Q1 2026 results showed net income of $216.3M and a quarterly dividend of $0.45 per share, alongside a refreshed $500M repurchase program. The company also secured a $50M credit facility for two LR2 tankers. Today’s announcement of vessel sales, MR newbuilding intentions, and early repayment of secured debt continues this balance-sheet-focused, fleet-optimization trajectory.
Key Terms
scrubber-fitted technical
revolving credit facility financial
secured credit facilities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MONACO, May 27, 2026 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers,” or the “Company”) announced today that it has entered into agreements to sell four LR2 product tankers, a letter of intent to purchase two newbuilding MR product tankers and its intention to repay all outstanding secured debt due 2028.
Vessel Sales
The Company has entered into agreements to sell four LR2 product tankers consisting of two 2014 built LR2 product tankers, STI Broadway and STI Condotti, and two 2015 built LR2 product tankers, STI Winnie and STI Lauren, for
Newbuilding Vessel Purchases
The Company has entered into a letter of intent to purchase two scrubber-fitted MR newbuilding product tankers for
Debt Prepayment
The Company intends to make unscheduled prepayments totaling
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 83 product tankers (32 LR2 tankers, 37 MR tankers and 14 Handymax tankers) with an average age of 10.2 years. The Company has reached agreements to sell two MR product tankers and seven LR2 product tankers, which are expected to close in the second or third quarter of 2026. The Company has also reached agreements or letters of intent for six MR newbuildings (including the two mentioned in this press release) that are currently under construction with deliveries expected in 2026, 2027 and 2030, four LR2 newbuildings with deliveries expected in 2027 and 2029 and two VLCC newbuildings with deliveries expected in 2028. 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, 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, the impact of the current and future sanctions that may impact the transportation of petroleum products, potential liability from pending or future litigation, general domestic and international political conditions, which have and may continue to disrupt certain global shipping routes, vessel 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
