The TCE update shows strong spot market rates but a meaningful portion of the fleet is on lower-rate time charters. The convertible note dilution adds ~1-2M shares. Monitor the Q2 earnings release for actual revenue and EPS versus the TCE run-rate, and watch for any further vessel sales or newbuilding deliveries that could alter the fleet profile.
Price Chart
Executive Summary
Scorpio Tankers released an update on Q2 2026 TCE rates and diluted share count, showing strong spot market rates (LR2 $80,000/day, MR $53,000/day, Handymax $54,000/day) with high utilization (80-90% of days), while also disclosing time charter-out rates at much lower levels ($30,300/day for LR2, $26,500/day for MR). The company estimates diluted shares at 53-54 million for Q2, reflecting the dilutive effect of the 1.75% Convertible Notes issued in April/May 2026.
Key Facts
- LR2 pool/spot TCE: $80,000/day on 1,721 expected revenue days (88% of days)
- MR pool/spot TCE: $53,000/day on 3,041 expected revenue days (90% of days)
- Handymax pool/spot TCE: $54,000/day on 1,169 expected revenue days (80% of days)
- LR2 time charter-out: $30,300/day on 1,082 expected revenue days
- MR time charter-out: $26,500/day on 317 expected revenue days
- Estimated diluted Q2 2026 shares: 53-54 million (including convertible note dilution)
- Company owns 81 product tankers (31 LR2, 36 MR, 14 Handymax) with average age 10.2 years
- Agreements to sell 1 MR and 6 LR2 tankers, expected to close Q2/Q3 2026
Financial Impact
Spot market TCE rates are strong (LR2 $80K, MR $53K, Handymax $54K) but time charter-out rates are significantly lower (LR2 $30.3K, MR $26.5K). The mix matters for revenue composition.
Risk Factors
- Spot rates may decline from current levels if tanker market softens
- Time charter-out rates are much lower than spot, creating a drag on blended TCE
- Convertible note dilution could pressure EPS if conversion is dilutive
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3314026 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | 144 | $82.12 $85.73 | ▼ −4.40% | ▼ −5.51% | $86.23 (−5.00%) |
Jun 18, 2026 15w ago | Press Release | $80.58 $75.46 | ▼ −6.35% | ▼ −4.69% | $86.23 (+7.01%) |
May 28, 2026 18w ago | 6-K | $74.51 $75.96 | ▲ +1.95% | ▲ +4.47% | $86.23 (+15.73%) |
May 27, 2026 18w ago | Press Release | $77.70 $75.04 | ▼ −3.42% | ▼ −4.63% | $86.23 (+10.98%) |
May 8, 2026 21w ago | Press Release | $84.41 $82.72 | ▼ −2.00% | ▼ −3.47% | $86.23 (+2.16%) |
May 5, 2026 21w ago | 6-K | $82.56 $83.51 | ▲ +1.15% | ▲ +0.02% | $86.23 (+4.45%) |
May 5, 2026 21w ago | Press Release | $86.62 $85.15 | ▼ −1.70% | ▼ −3.68% | $86.23 (−0.45%) |
Apr 21, 2026 23w ago | 6-K | $75.97 $82.08 | ▲ +8.04% | ▲ +7.98% | $86.23 (+13.51%) |
Apr 21, 2026 23w ago | 6-K | $75.97 $82.08 | ▲ +8.04% | ▲ +7.98% | $86.23 (+13.51%) |
Apr 10, 2026 25w ago | Press Release | $76.45 $76.89 | ▲ +0.58% | ▼ −2.72% | $86.23 (+12.79%) |
US Market Status
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