Scorpio Tankers Inc. Announces Time Charter-Out Agreements
Rhea-AI Summary
Scorpio Tankers (NYSE:STNG) entered two time charter-out agreements for the LR2 product tankers STI Rose and STI Alexis. Each charter is for a five-year term at a rate of $29,000 per vessel per day. The charters are expected to commence in the first quarter of 2026, providing multi-year contracted revenue for the two 2015-built vessels.
Positive
- Two LR2 tankers chartered for five years
- Charter rate of $29,000 per vessel per day
- Charters expected to commence in Q1 2026
Negative
- Vessels committed to multi-year charters, reducing spot exposure
News Market Reaction
On the day this news was published, STNG declined 0.36%, reflecting a mild negative market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $10M from the company's valuation, bringing the market cap to $2.71B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
STNG was down 2.24% while peers were mixed: INSW (-2.51%), CMBT (-4.06%), TRMD (-0.4%), EE (+1.8%), GLNG (+1.99%). Moves do not indicate a uniform sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 16 | Fleet sale/purchase | Positive | -1.3% | Sale of two LR2 tankers and purchase of two LR2 newbuildings. |
| Nov 11 | Fleet expansion | Positive | -3.0% | LOIs to construct two VLCCs and sale of DHT stake portion. |
| Nov 06 | Fleet sale/purchase | Positive | +3.1% | Sale of four MR tankers and purchase of four MR newbuildings. |
| Oct 30 | Earnings & dividend | Positive | -1.4% | Q3 2025 earnings with net income and dividend increase. |
| Oct 16 | Earnings preview | Neutral | +3.1% | Announcement of timing and details for Q3 2025 results call. |
Recent news-driven moves have been mixed, with both positive and neutral corporate updates sometimes followed by negative price reactions.
Over the last few months, Scorpio Tankers reported multiple fleet-optimization steps and solid financials. On Oct 30, 2025, Q3 2025 results and a higher dividend were announced, followed by a modest share price decline. Subsequent announcements in November and December detailed sales of older LR2 and MR product tankers and purchases of newer scrubber-fitted vessels, along with VLCC construction plans. Price reactions ranged from about -3% to +3%, showing no consistent pattern but underscoring ongoing fleet renewal and balance sheet activity ahead of today’s charter news.
Market Pulse Summary
This announcement details five-year time charter-out agreements for two LR2 product tankers, providing contracted employment at a disclosed daily rate and expected commencement in the first quarter of 2026. It follows recent fleet sale-and-purchase activity and prior earnings updates, indicating continued focus on balancing asset exposure with cash-flow visibility. Investors may watch how these charters interact with future vessel transactions, financing decisions reported in filings, and subsequent earnings releases to assess the longer-term impact on utilization and earnings stability.
Key Terms
time charter-out financial
product tankers technical
AI-generated analysis. Not financial advice.
MONACO, Jan. 05, 2026 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today that it has entered into agreements to time charter-out the 2015 built LR2 product tankers, STI Rose and STI Alexis. The term of each agreement is five years at a rate of
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 93 product tankers (37 LR2 tankers, 42 MR tankers and 14 Handymax tankers) with an average age of 9.8 years. The Company has entered into agreements to sell three LR2 product tankers which are expected to close in the first quarter of 2026. The Company has also reached agreements for four MR newbuildings that are currently under construction with deliveries expected in 2026 and 2027, two VLCC newbuildings with deliveries expected in the second half of 2028, and two LR2 newbuildings with deliveries expected in the third quarter of 2027. 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 did Scorpio Tankers (STNG) announce on January 5, 2026 about STI Rose and STI Alexis?
When do the STNG time charters for the two LR2 vessels begin?
How long are the time charters for the STNG LR2 tankers and what is the rate?
How many vessels did Scorpio Tankers (STNG) charter out in the January 5, 2026 announcement?
What is the immediate financial effect of the STNG charters for investors?
