- Rates for refined product transportation were extremely weak at the beginning of the quarter and any marked improvement on particular routes has been obscured by seemingly lackluster market conditions.
- 3Q21 financial performance will likely reflect additional declines in EBITDA and operating cash flow which will result in increased leverage and, potentially, lender restiveness.
- Scorpio is better positioned to capitalize on increased rates than its peers, especially if prices for different types of fuel oil diverge significantly.
- Near-term concerns are outweighed by longer-term strengthening fundamentals.
For further details see:
Scorpio Tankers: Q3 2021 Results Will Be Weak But The Future Is More Promising