STNG

Scorpio Tankers Inc

Industrial/Transportation, Energy


Presented:01/12/2016
Price:$61.70
Cap:$1.27B
Current Price:$66.70
Cap:$3.55B

Presented

Date01/12/2016
Price$61.70
Market Cap$1.27B
Ent Value$3.75B
P/E Ratio6.67x
Book Value$80.00
Div Yield8.1%
Shares O/S20.53M
Ave Daily Vol239,143
Short Int5.18%

Current

Price$66.70
Market Cap$3.55B
Scorpio Tankers, Inc. engages in the provision of marine transportation of petroleum products worldwide. The company operates through the following business segments: Handymax, MR, Panamax/LR1, and Aframax/LR2. The Handymax segment includes the vessels STI Conqueror, STI Matador, STI Gladiator, and STI Highlander. The MR segment comprises the vessels STI Coral and STI Diamond. The Panamax/LR1 segment constitutes the vessels STI Harmony and STI Heritage. The Aframax/LR2 segment includes the vessels STI Spirit and Khawr Aladid. The company was founded by Emanuele A. Lauro on July 1, 2009 and is headquartered in Monaco.

Please note, this stock split on 1/18/2019 at a ratio of 1/10. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $6.17.

Publicly traded companies mentioned herein: Scorpio Tankers (STNG)

Highlights

The presenter is long shares of Scorpio, which owns approximately 80 midsized tanker ships that transport petroleum products including gasoline, diesel and jet fuel. He described a structural shift currently underway in global refining from which the company is well positioned to benefit. Global refining capacity currently stands at about 94 million barrels per day, but the industry is now seeing an additional 4-5 mm barrels of capacity coming on line. Most of this incremental capacity is coming from India/ China and Saudi Arabia/ UAE, resulting in an overall increase in ton miles for product tankers. Accordingly, while global refining capacity is expected to increase by roughly 4-5% over the next couple of years, demand for product tankers should increase at a rate closer to 5-10%, according to the presenter. 

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Idea Discussion

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