Scorpio Tankers To Sell Two Ships For $122M As It Moves Closer To Wiping Out Debt

Author: Benzinga Newsdesk | September 29, 2025 05:48am

Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers," or the "Company") announced today that it has entered into agreements to sell two vessels and provided an update on its outstanding debt.

Vessel Sales

The Company has recently entered into agreements to sell two 2019 built scrubber-fitted LR2 product tankers, STI Lobelia and STI Lavender, for $61.2 million per vessel. The sales are expected to close within the fourth quarter of 2025.

Emanuele Lauro, Chairman and Chief Executive Officer, commented "These sales offer the dual benefit of capitalizing on cyclically high secondhand vessel values while further strengthening our balance sheet. At $131 million on a pro-forma basis, the Company's net debt could reach zero in the near future, an outcome which underscores both the cash-generating power of this market and our commitment to deleveraging."

Update on Current Liquidity and Debt

The table below summarizes the Company's outstanding indebtedness as of the dates presented, and on a pro-forma basis to illustrate the impact of announced vessel sales and debt repayments that are pending closing:

In thousands	June 30, 2025		July 28, 2025	September 25, 2025	September 25, 2025 Pro-forma*
Gross debt outstanding	$	924,403	$	910,987	$	896,552	$	814,702
Cash and cash equivalents	471,062	472,727	605,786	683,417
Net debt	$	453,341	$	438,260	$	290,776	$	131,285
Availability under revolving credit facilities	$	838,241	$	833,692	$	823,542	$	792,842

During the third quarter of 2025, the Company sold 4,778,000 common shares in DHT Holdings Inc. ("DHT") at an average price of $12.50 per share. The Company currently owns 4,054,480 common shares in DHT.

* Amounts reflect the balances as of September 25, 2025, adjusted for announced debt and lease repayments and net proceeds from vessel sales (after estimated selling costs) which have not yet closed. These include:

• The exercise of the purchase options on three vessels that are currently financed through sale and leaseback arrangements. Two of the vessels, STI Guard and STI Gallantry, are scheduled to be purchased in December 2025 and the third vessel, STI Symphony, is scheduled to be purchased in February 2026. The aggregate outstanding lease obligation on these vessels is currently $67.8 million.
• The agreements to sell the 2020 built scrubber-fitted MR product tanker, STI Maestro for $42.0 million, along with the 2019 built scrubber-fitted LR2 product tankers, STI Lobelia and STI Lavender, for $61.2 million per vessel. These sales are expected to close within the fourth quarter of 2025. The outstanding debt on STI Maestro of $5.1 million was repaid on the 2023 $1.0 Billion Credit Facility in September 2025, with a corresponding $10.2 million reduction in the undrawn revolving portion of the facility. An aggregate of $14.0 million is expected to be paid on the 2023 $1.0 Billion Credit Facility with respect to STI Lobelia and STI Lavender, with a corresponding $30.7 million reduction in the undrawn revolving portion of the facility.

Posted In: STNG