The Scorpio Tankers dividend has risen 67% to $0.75 per share, as the product tanker operator reported a stronger balance sheet and higher fourth-quarter booking rates on its October 28, 2026 earnings call.
Key Takeaways
- The quarterly dividend increased from $0.45 per share; management said it aims to raise the payment annually.
- Scorpio reported more than $2 billion in cash and $655 million in debt.
- Fourth-quarter bookings included approximately $181,000 a day for LR2 vessels.
Scorpio Tankers dividend and balance sheet
President Robert Bugbee said the company wanted a dividend it could sustain through the market cycle while leaving room for further increases. The aim of annual increases is a management expectation, not a guarantee of future payments.
Scorpio said it had reduced debt from $3.1 billion to $655 million and increased cash to more than $2 billion, leaving it with a net cash position of $1.4 billion. Its daily cash break-even was below $11,000 per vessel.
The company also has $1.3 billion in commitments for newbuilding vessels and a joint venture involving very large crude carriers.
| Item | Details |
|---|---|
| LR2 fourth-quarter bookings | Approximately $181,000 per day |
| MR fourth-quarter bookings | Approximately $56,000 per day |
| Handymax fourth-quarter bookings | Approximately $40,000 per day |
Fourth-quarter bookings and vessel demand
Scorpio reported fourth-quarter booking rates of approximately $181,000 per day for LR2s, $56,000 for MRs and $40,000 for Handymax vessels. These are booking figures, not completed fourth-quarter results.
The company’s fleet categories and capacities span vessels of different sizes: its description puts Handymax capacity at up to about 200,000 barrels, MR at about 300,000 barrels and LR2 at about 700,000 barrels.
Chief Commercial Officer Lars Nielsen attributed recent strength in MR rates to ample cargo, longer voyages, slower speeds and cargo handling that absorbed vessel capacity. He also said roughly one in three of Scorpio’s LR2 voyages in the third quarter carried crude, up from about one in eight at the previous call.
Market risks and charter strategy
Scorpio faces uncertainty from geopolitical events and volatile markets. Refinery margins have retreated from record highs, while a return of LR2 vessels from crude to clean product trades could add supply to the latter market.
Bugbee said the company was not in a hurry to add time-charter coverage ahead of winter, but would consider opportunities as vessels come off charter. Management’s market outlook remains an expectation rather than a confirmed outcome.
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