Scorpio Tankers Inc. (STNG): Strategic Tanker Sales and Solid Cash Flow Highlight Growth Potential

Scorpio Tankers Inc. (NYSE:STNG) is one of the best marine shipping stocks to buy right now.

On March 5, Scorpio Tankers Inc. (NYSE:STNG) announced agreements to sell three 2015-built scrubber-fitted tankers: MR vessels STI Seneca and STI Osceola at $35 million each, and LR2 tanker STI Solidarity for $60 million, with closings expected in Q1 or Q2 2026.

The vessels carry $20.2 million in debt under the company’s $1 billion 2023 credit facility. Scorpio Tankers also agreed to time charter LR2 tankers STI Lombard (5 years at $33,000/day) and STI Rambla (8 years at $30,500/day), starting Q1–Q2 2026.

On February 14, Evercore ISI reiterated an Outperform rating on Scorpio Tankers but cut the price target to $83 from $86. The price target cut comes on the company delivering higher General and Administrative expenses.

The company delivered adjusted net income of $80 million, or $1.62 per diluted share, for the fourth quarter, a significant improvement from $30.3 million, or $0.63 per share, delivered in Q4 2024. Adjusted net income for the full year totaled $269.5 million or $5.51 per diluted share, a significant reduction from $512.9 million or $10.08 per diluted share delivered in 2024.

On the other hand, B. Riley analyst Liam Burke raised the stock’s price target to $90 from $80 and reiterated a Buy rating. The raise is in response to the company’s fourth quarter time charter equivalent revenue increasing to $241.4 million from $192.1 million a year ago.

Time Charter equivalent revenue for the full year totaled $901 million with an adjusted EBITDA of $568 million and operating cash flow of $517 million. During the year, the company reduced its indebtedness by $2.5 billion, exiting with 91 product tankers.

Scorpio Tankers Inc. reiterated its focus on operating a high-quality fleet, supported by a strong balance sheet capable of generating attractive returns and returns to shareholders. On February 11, the company’s board approved a quarterly dividend of $0.45 per share, payable on March 20 to shareholders of record as of March 6.

Scorpio Tankers Inc. (NYSE:STNG) is a global provider of responsible seaborne transportation, operating a fleet of 93 tankers—37 LR2, 42 MR, and 14 Handymax—through ownership, finance leases, or bareboat charters.

While we acknowledge the potential of STNG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Best Gold Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.