Traders should monitor spot tanker rates closely as Scorpio Tankers has minimal contracted exposure in Q2 2026, especially in LR2 and Handymax segments. The strong net cash position provides flexibility, but earnings will be highly sensitive to spot market fluctuations.
Price Chart
Executive Summary
Scorpio Tankers provided an update on its first and second quarter 2026 TCE rates, showing strong first-quarter performance with a significant drop in second-quarter rate exposure, particularly for LR2 tankers. The company also reported improved liquidity with net cash increasing to $384.9M as of March 20, 2026, driven by vessel sales and debt prepayments.
Key Financial Metrics
Key Facts
- First quarter 2026 LR2 average TCE rate of $51,000/day on 97% of revenue days; MR at $32,000/day, Handymax at $34,000/day
- Second quarter 2026 LR2 TCE rate drops to $101,000/day but only on 16% of revenue days, indicating minimal exposure to high rates
- Company has locked in only 16% of LR2 days and 10% of Handymax days for Q2, suggesting heavy reliance on spot markets ahead
- Net cash increased from $123.5M (Dec 2025) to $384.9M (March 20, 2026) due to vessel sales and debt reduction
- Prepaid $20.2M in debt and repaid $18.9M lease; pro forma net cash rises to $512.8M after pending vessel sales
Financial Impact
Net cash position improved by $261.4M in three months; however, minimal Q2 charter coverage suggests earnings volatility ahead despite high current spot rates
Risk Factors
- High dependence on spot market in second quarter exposes company to potential rate declines
- Forward TCE rates not disclosed; lack of visibility beyond Q2 2026 despite newbuilding deliveries scheduled through 2029
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3262593 |
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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