Scorpio Tankers Stock Intrinsic Value – Q3 Earnings for Scorpio Tankers Expected to Take a Dip

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Scorpio Tankers ($NYSE:STNG), a global provider of marine transportation services for refined petroleum products, is expected to experience a dip in its third quarter earnings. This has caused a sharp decrease in the demand for oil, leading to a decrease in Scorpio Tankers’ profits. Despite this, the company has managed to remain profitable by adapting and taking advantage of the current market conditions. They provide transportation services to customers in the oil and gas industry and have grown significantly since their inception.

Scorpio Tankers has seen a decline in its Q3 earnings due to the current market conditions arising from the pandemic. The decrease in oil demand along with other factors have caused an overall decrease in profits for the company. Despite this, the company is still achieving profitability and is adjusting its operations to be able to respond to the current market conditions.

Earnings

The most recent earnings report of SCORPIO TANKERS for FY2023 Q2 as of June 30 2021 reveals that the shipping company saw a dramatic drop in its total revenue and net income. Compared to the previous year, there was a 65.6% decrease in total revenue and a 127.6% decrease in net income, with the total revenue amounting to 139.44M USD and the net income amounting to 52.78M USD. Despite this downturn, SCORPIO TANKERS’ total revenue has increased from 139.44M USD to 329.3M USD over the past three years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Scorpio Tankers. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Scorpio Tankers. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Scorpio Tankers. More…

Key Ratios Snapshot

Some of the financial key ratios for Scorpio Tankers are shown below. More…

Share Price

On Friday, Scorpio Tankers saw a small upturn in its stock price, with shares opening at $58.2 and closing at $58.6, up 0.1% from the previous close of 58.5. Analysts have speculated that the lack of global demand for oil and tankers will create a significant financial burden for the company in the upcoming quarter. Despite the current market conditions, Scorpio Tankers is still expecting to remain competitive by taking measures such as reducing operating expenses and cutting back on capital expenditures. It remains to be seen how the company will weather this period of low demand and what their Q3 earnings results will be. Live Quote…

Analysis – Scorpio Tankers Stock Intrinsic Value

At GoodWhale, we have analyzed SCORPIO TANKERS‘s financials and believe that the intrinsic value of the company’s share is around $54.0 This value has been calculated by our proprietary Valuation Line which takes into account a variety of factors. However, the current market price of SCORPIO TANKERS stock is traded at $58.6. This implies that the stock is currently overvalued by 8.4%. More…

Peers

Scorpio Tankers Inc is one of the largest tanker shipping companies in the world. Founded in 2009, the company is headquartered in Monaco. Scorpio Tankers Inc has a fleet of over 100 tankers and operates in over 30 countries. The company’s main competitors are TORM PLC, Petro Times JSC, and Pilipinas Shell Petroleum Corp.

– TORM PLC ($LTS:0RG4)

In 2022, Dorman Products, Inc. had a market capitalization of $16.22 billion and a return on equity of 17.86%. Dorman Products, Inc. is a leading supplier of original equipment dealer “exclusive” automotive and heavy duty replacement parts, automotive hardware, brake parts, and fasteners to the automotive aftermarket.

– Petro Times JSC ($HNX:PPT)

Pilipinas Shell Petroleum Corporation is a publicly listed company in the Philippines with a market capitalization of 28.95 billion as of 2022. The company is engaged in the business of refining, marketing, and distributing petroleum products in the Philippines. The company has a return on equity of 17.04%.

Summary

Scorpio Tankers, a global shipping company, is expected to report a decline in its third quarter earnings. Analysts predict that Scorpio’s revenue will decline due to the challenging market conditions. Scorpio’s performance is likely to remain weak due to the decrease in the demand for shipping and the low freight rates. Investors should watch for the company’s financial results closely to determine if their investment in Scorpio Tankers is worth keeping.