en.Wedoany.com Reported - Scorpio Tankers has released its financial results for the second quarter of 2026. Amid the impact of the Iran war, hostile actions in the Arabian Gulf and neighboring regions caused severe volatility in the refined product tanker market, leading to fluctuating expectations among tanker market participants and financial investors.
The report shows that the company's net income for the second quarter was $387.5 million, with basic earnings per share of $8.47 and diluted earnings per share of $7.37. In the same period last year, net income was $73.5 million, with basic earnings per share of $1.59 and diluted earnings per share of $1.53. Compared to the prior year, results for this period show significant growth year-over-year.
The Iran war had a direct impact on Scorpio Tankers' share price. The company explained in its report that daily spot TCE (Time Charter Equivalent) rates surged to record levels in the early stages of the conflict, as exports through the Strait of Hormuz came to a standstill, oil had to be sourced from more distant markets, and the global fleet was forced to redeploy to adapt to new trading patterns. The company's share price approached a historic high of nearly $87 per share in early May, before retreating to around $77 by the end of July, with a market capitalization slightly above $4 billion.
As the quarter progressed, these initial disruptions gave way to an environment characterized by declining export volumes alongside global fleet redeployment, and daily spot TCE rates retreated from record highs near the end of the quarter. However, longer voyage distances resulting from new trade routes mitigated the impact of reduced exports through the Strait of Hormuz, and daily spot TCE rates remained above year-ago levels.
On the fleet operations front, in the second quarter, the MR (Medium Range) fleet earned nearly $27,000 per day under time charter contracts, with pool and spot operations achieving up to $52,000 per day. The LR2 (Large Range 2) fleet earned $30,400 per day under time charter contracts, with pool and spot voyages achieving up to $77,700 per day.
Entering the third quarter, the company has secured 46% of available days for MR tankers at an average TCE of $29,000 per day, and 34% of available days for LR2 tankers at an average TCE of $65,000 per day. The company also announced a dividend of $0.45 per share payable to shareholders of record as of the end of the second quarter, compared to $0.40 per share in the same period last year.
Brokerage analysts covering the stock remain optimistic. Analysts Omar Nokta of Clarksons Securities and Greg Lewis of BTIG both set target prices of $100 per share. In his report, Nokta stated that Scorpio Tankers is well positioned to capitalize on persistently strong spot market rates while enjoying its strongest balance sheet ever. He also analyzed the factors behind the strength in the LR segment, noting its closer correlation with Aframax crude oil tankers, which continue to command higher rates in a highly inefficient market.
In his report, Lewis noted that Scorpio Tankers is one of the world's largest refined product tanker operators, running one of the most modern and fuel-efficient product tanker fleets globally, with an average fleet age of approximately 10 years (excluding newbuilds), and is poised to benefit from the ongoing cyclical recovery in the product tanker market. BTIG's base case for the $100 per share target price assumes average MR tanker rates of $37,000 per day and LR2 tanker rates of $54,000 per day. Its bull case scenario assumes MR product tanker rates remain around $45,000 per day and LR2 rates around $60,000 per day.
