Scorpio Tankers (NYSE:STNG) said Wednesday it purchased nearly 137.5K of its common shares on the open market, and exercised a purchase option for an LR2 product tanker that is currently leased.
The shares were bought at an average price of $43.27/share as part of the company’s stock buyback program, which has $169.1M remaining.
Scorpio (STNG) also said it has given notice to exercise its purchase option on the STI Sanctity LR2 product tanker; the company expects the purchase will occur in Q1 2023 and result in a $27.8M debt reduction for the company.
Scorpio Tankers (STNG) should benefit as a shortage of refined petroleum products leads to a spike in shipping demand and increased ton-mile demand, Corey Zimmerman writes in a bullish analysis posted recently on Seeking Alpha.