A seaborne shipping company that carries refined petroleum products—gasoline, diesel, jet fuel, and naphtha—across the world's oceans aboard a fleet of product tankers. It was founded in 2009 by Emanuele Lauro, whose family has run shipping interests under the Scorpio name for generations, and the company took that name from the Scorpio Group it grew out of.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Net income fell 49% to $344.3M as spot tanker rates normalized from Red Sea-driven highs, but the company used cash to slash debt and buy back shares.
The rate windfall that lifted the last two years faded. fell 7% to $1.24 billion and dropped 49% to $344.3 million as daily spot TCE rates declined 24% from the disruption-driven levels of 2024. The company ended the year with $752 million in cash and its lowest debt load in years, positioning it to fund newbuildings and shareholder returns through the cycle.
Key takeaways
fell 49% to $344.3 million, driven by a 25% decline in vessel to $938.2 million as consolidated daily pool and spot TCE dropped 24% to $25,447 following the normalization of Red Sea trade disruptions.
The MR was hit hardest, with pool and spot falling 35% to $330.1 million and daily TCE down 25% to $22,349, while LR2 pool and spot revenue declined 29% to $326.8 million on lower .
Time charter-out grew 11% to $170.2 million as three new charters commenced during the year, providing a partial buffer against the spot market decline.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks are floating-rate interest, spot tanker rates, and foreign exchange, with limited hedging and quantified sensitivities.
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A one-percentage-point rise in floating rates would increase annual by $4.3 million based on December 31, 2025 unhedged variable-rate debt.
Unhedged floating-rate principal payments total $19.2 million due in 2026 and $409.2 million due in 2027–2028, with no floating-rate debt thereafter.
Financial expenses dropped 27% to $80.1 million as the average debt balance fell to $907.6 million from $1.2 billion, reflecting continued deleveraging.
Cash and cash equivalents more than doubled to $752.0 million, supported by $491.2 million in and $272.2 million from investing activities, including $155.2 million from the sale of the DHT Holdings stake.
The company has 10 newbuildings under construction—4 MR, 4 LR2, and 2 VLCC—with deliveries expected between 2026 and 2029, signaling a fleet renewal cycle.
What changed
The spot rate sensitivity flagged last year materialized: a $1,000/day change now impacts by $28.9 million, down from $32.0 million, as the fleet shrank and rates fell from 2024's elevated levels.
The 13% product tanker orderbook flagged in 2024 has grown to approximately 18% of the existing fleet, increasing the risk of future rate pressure as new vessels deliver.
The proposed U.S. port fees on Chinese-built vessels flagged last year were suspended, removing an immediate cost threat, though evolving sanctions and trade tensions remain a risk.
The company fully exited its passive equity stake in DHT Holdings, generating $155.2 million in proceeds, and redirected capital toward debt reduction and its newbuilding program.
What to watch
Daily TCE rates across LR2, MR, and Handymax classes as the 18% orderbook delivers into a market with 72 of 90 vessels still in spot-oriented pools.
Progress on the $409.2 million in unhedged floating-rate debt principal due in 2027–2028 and the impact of interest rate moves, with each percentage-point rise adding $4.3 million in annual .
Delivery and financing of the 10 newbuildings (4 MR, 4 LR2, 2 VLCC) between 2026 and 2029, and whether they replace sold vessels or grow the fleet.
Geopolitical disruption risk, particularly the military conflict in Iran and its potential to close the Strait of Hormuz, a major chokepoint for product tanker routes.
A $1,000 per day change in spot rates across all vessel classes would have changed by $28.9 million for the year ended December 31, 2025.
The company does not hedge foreign exchange risk, though most revenues and operating expenses are in U.S. dollars, with some Euro-denominated costs.
Bunker fuel price risk is unhedged, and the company states it does not expect inflation to be a significant risk to direct expenses.
Scorpio Tankers faces material risks from tanker industry cyclicality, geopolitical disruptions, evolving sanctions, and its dependence on spot market-oriented pools.
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The company is highly dependent on spot market-oriented pools (Scorpio Pools) and for 72 of its 90 vessels, exposing earnings to volatile spot charter rate fluctuations.
Geopolitical conflicts, including in the Middle East and Ukraine, are actively disrupting energy trade patterns and shipping routes, with uncertain continued impacts on tanker rates and operations.
Evolving U.S.-China trade tensions and sanctions regimes, including recently suspended port fees and price caps on Russian oil, create unpredictable compliance and operational cost risks.
An over-supply of tanker capacity is a risk, with the newbuilding orderbook at approximately 18% of the existing fleet, which could depress charter rates if demand does not keep pace.
The company's fleet operates solely in the oil transportation sector, making it vulnerable to a long-term shift in consumer demand away from oil towards alternative energy sources.
Operational risks include potential from charter rate declines, the costs and challenges of operating an aging secondhand fleet, and substantial for fleet maintenance and expansion.
Scorpio Tankers provides worldwide seaborne transportation of refined petroleum products with a fleet of 90 owned product tankers.
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The company operates a fleet of 90 wholly owned product tankers (34 LR2, 42 MR, 14 Handymax) with a weighted average age of 10.1 years.
Vessels are employed through a mix of commercial pools (72 vessels in Scorpio Pools), time charters, bareboat charters, and the to optimize .
Commercial and technical management is outsourced to related parties SCM and SSM under a revised master agreement effective January 1, 2024.
The company has 10 newbuildings under construction (4 MR, 4 LR2, and 2 VLCC) with deliveries expected between 2026 and 2029.
Recent fleet activity includes vessel sales, new agreements for LR2 tankers at rates between $29,000 and $33,000 per day, and a declared quarterly of $0.45 per share.
The ongoing military conflict in Iran is cited as a risk that could adversely affect financial condition due to potential disruptions to major trading routes like the Strait of Hormuz.
Net income fell 49% to $344.3M in FY2025 as vessel revenue dropped 25% on lower spot TCE rates following the normalization of Red Sea-driven trade disruptions.
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Vessel decreased 25% to $938.2M, driven by a 24% decline in consolidated daily pool and spot market TCE to $25,447 as global supply chains adjusted from 2024 disruptions.
MR pool and spot fell 35% to $330.1M, with daily TCE down 25% to $22,349, while LR2 pool and spot revenue declined 29% to $326.8M on lower ton-mile demand.
Time charter-out grew 11% to $170.2M as three new charters commenced in 2025, partially offsetting spot market weakness.
Vessel operating costs decreased 10% to $287.9M, reflecting a reduction in operating days from vessel sales and lower daily costs for spares and repairs.
Financial expenses dropped 27% to $80.1M due to significant , with the average debt balance falling to $907.6M from $1.2B.
Cash and cash equivalents rose to $752.0M, supported by $491.2M in and $272.2M from investing activities, including $155.2M from the sale of DHT Holdings shares.