Scorpio Tankers Inc. Announces Updates on Third Quarter 2026 TCE Rates and Time Charter-Out Agreements
Scorpio Tankers outlines Q3 2026 TCE performance, new three-year charter coverage on three vessels, and a higher diluted share count range.
Rhea-AI Summary
Scorpio Tankers (STNG) reported preliminary third quarter 2026 average daily TCE rates and new time charter-out agreements for three product tankers.
As of this update, LR2 vessels in the pool and spot market are averaging TCE revenue of $64,900 per day over 1,249 expected revenue days with 85% coverage, while MR and Handymax vessels earn $30,000 and $25,500 per day, respectively. The company has fixed three-year time charters for LR2 vessels STI Gladiator and STI Jermyn at $40,188 and $42,500 per day starting September 2026, and for MR vessel STI Pontiac at $23,900 per day from the fourth quarter of 2026. Scorpio Tankers estimates fully diluted weighted average shares outstanding for the quarter ended September 30, 2026, to be between 54.5 million and 55.5 million, reflecting the potential dilutive impact of its 1.75% Convertible Senior Notes due 2031 and restricted shares.
Positive
- LR2 pool/spot TCE of $64,900 per day on 1,249 expected revenue days with 85% coverage in Q3 2026 supports strong earnings potential for that segment.
- New three-year time charters for LR2 vessels STI Gladiator and STI Jermyn at $40,188 and $42,500 per day, starting September 2026, lock in multi-year cash flow.
- New three-year charter for MR vessel STI Pontiac at $23,900 per day from Q4 2026 adds contracted revenue visibility in the MR segment.
Negative
- Estimated diluted weighted average shares of 54.5–55.5 million for Q3 2026 are higher due to the potentially dilutive effect of 1.75% Convertible Senior Notes and restricted shares.
- TCE rate and coverage figures are preliminary and subject to change as pool voyage results for Q3 2026 are finalized, adding uncertainty to near-term revenue forecasts.
News Explained
For diluted EPS, Scorpio Tankers uses an “if-converted” method that assumes the Convertible Notes were converted into common shares, adds back their related interest and non-cash amortization, and excludes conversion when the effect would be anti-dilutive; the estimate can change with the period’s average share price.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 30 | Second-quarter earnings | Positive | -3.8% | Strong quarterly earnings, cash position, debt actions, repurchases, and dividend declaration |
| Jul 20 | Earnings date notice | Neutral | +1.9% | Announced July 30 results release and conference call schedule |
| Jul 01 | Debt refinancing update | Positive | +5.0% | Announced note redemption and commitment for new vessel financing |
| Jun 18 | Second-quarter TCE update | Positive | +3.3% | Reported TCE rates, coverage percentages, and diluted share estimate |
| May 27 | Fleet transaction update | Neutral | -3.3% | Announced tanker sales, newbuilding purchases, and secured debt prepayments |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Two positive company updates were followed by gains, while the second-quarter results release was followed by a decline.
Key Terms
time charter equivalent financial
bareboat charter financial
convertible senior notes financial
if-converted method financial
anti-dilutive financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MONACO, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today an update on its third quarter of 2026 average daily Time Charter Equivalent (“TCE”) rates and that it has entered into agreements to time charter-out three product tankers.
Third Quarter 2026 TCE Rate Update
Below is a summary of the average daily 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 2026 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 | Expected Revenue Days (2) | % of Days | ||||||||
| LR2 | $ | 64,900 | 1,249 | 85 | % | $ | 30,800 | 902 | $ | — | — | 100 | % | ||
| MR | $ | 30,000 | 3,058 | 79 | % | $ | 28,000 | 95 | $ | 12,986 | 91 | 100 | % | ||
| Handymax | $ | 25,500 | 1,183 | 70 | % | $ | 23,000 | 91 | $ | — | — | 100 | % | ||
| (1) | Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. |
| (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. |
The above rates and coverage percentages are subject to change as the pool results, which include, but are not limited to, estimated results of voyages currently in progress, are finalized.
Time Charter-Out Agreements
The Company has recently entered into agreements to time charter-out two LR2 product tankers, STI Gladiator and STI Jermyn, and one MR product tanker, STI Pontiac. The agreements for STI Gladiator and STI Jermyn are each for a term of three years at rates of
Third Quarter 2026 Diluted Shares Outstanding
The Company estimates that its fully diluted weighted average shares outstanding for the three months ended September 30, 2026 to be between 54.5 to 55.5 million shares.
Following the issuance of the Company's
The dilutive impact of the Convertible Notes is determined using the if-converted method, which assumes that the Convertible Notes were converted into common shares at the beginning of the period (or, at the date of issuance, if issued during the period). Under the if-converted method, net income is adjusted to add back the interest expense and other non-cash amortization expense associated with the Convertible Notes, while the weighted average number of shares outstanding is increased by the potential number of shares issuable upon conversion.
The estimated diluted shares outstanding provided herein is preliminary and subject to change as the calculation is partially dependent upon the average price of the Company’s common stock during the period. Conversion will not be assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 75 product tankers (25 LR2 tankers, 36 MR tankers and 14 Handymax tankers) with an average age of 10.2 years. The Company has reached agreements or letters of intent for five MR newbuildings that are currently under construction with deliveries expected in 2027 and 2030, six 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. Information on the Company’s website does not constitute a part of and is not incorporated by reference into 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, the ongoing military conflict in Iran which has had a significant direct and indirect impact on the trade of crude oil and refined petroleum products, potential disruption of shipping routes due to accidents or political events, 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
