Scorpio Tankers’ profits slide as freight rates normalise

Scorpio Tankers has reported a sharp decline in profitability for the second quarter and first half of 2025, as revenues fell from the exceptional highs seen in the previous year.

The Monaco-based company’s earnings were significantly lower as the product tanker market adjusted from the inflated freight rates caused by shipping route disruptions that characterised the first half of 2024.

For the three months ending June 30, the company posted vessel revenues of $230.2 million, a substantial decrease from the $380.7 million generated in the second quarter of 2024. This led to a net income of $73.5 million, a steep fall from the $227.3 million profit recorded in the same period last year.

The company’s vessel operating costs, a key outgoing, decreased to $68.7 million from $79.3 million, which the company attributed primarily to operating a smaller fleet.

The downward trend was consistent across the first half of the year. For the six months ending June 30, revenues were $444.2 million, compared to $772.0 million in the first half of 2024. Consequently, net income for the period fell to $131.7 million, a significant drop from the $441.5 million earned in the corresponding period last year.

Despite the lower earnings, the company has continued with its fleet and capital management strategy. Recent activities include exercising purchase options on three vessels currently under finance lease arrangements, securing a new long-term bareboat charter for one of its MR tankers, and extending existing time charters for three of its LR2 tankers.

The company's board also declared a quarterly cash dividend of $0.40 per share.