Scorpio Tankers is raising its quarterly dividend 67 percent to $0.75 per share after a record third quarter, one of the largest payout increases in the shipping sector this year. The increase lifts the annualized payout to $3.00 per share. The dividend is payable December 4 to shareholders of record on November 13.
The dividend increase in numbers
The board declared the higher payout on October 26 and announced it with third-quarter results on October 28. Scorpio had 51.1 million shares outstanding at the declaration date, which puts the new quarterly outlay near $38 million.
| Dividend item | Detail |
|---|---|
| Previous quarterly rate | $0.45 per share |
| New quarterly rate | $0.75 per share |
| Increase | 67 percent |
| New annualized payout | $3.00 per share |
| Record date | November 13, 2026 |
| Payment date | December 4, 2026 |
Record quarter behind the raise
Scorpio reported third-quarter net income of $224.3 million, or $4.60 per diluted share, up from $84.5 million a year ago. Adjusted net income of $127.4 million, or $2.49 per diluted share, beat the average analyst estimate of $1.83 compiled by Zacks.
The gains came from stronger rates rather than more ships. Average daily time charter equivalent revenue rose to $37,508 per vessel from $26,231, even as the average fleet shrank to 75 vessels from 99 a year earlier. Vessel revenue reached $266.5 million, and adjusted EBITDA came in at $172.2 million.
What management said
President Robert Bugbee told analysts the increase was designed to be sustainable through the shipping cycle and raised every year. He described a quantum step up in balance sheet strength and said the board wanted to give shareholders certainty in uncertain times.
Chief Financial Officer Brian Lauro framed the move as a signal on the earnings call. “Today, our board increased the quarterly dividend from $0.45 per share to $0.75 per share. This is an increase of approximately 67 percent,” Lauro said.
At the new rate, the total annualized payout rises from roughly $92 million to about $153 million.
The higher payout remains well covered. Scorpio paid $23 million in dividends during the third quarter at the old rate, about 18 percent of its $127.4 million in adjusted net income. At the new rate, the quarterly outlay of roughly $38 million equals near 30 percent of that figure. Reported net income also included a $152.6 million gain on vessel sales, which management excludes from adjusted results.
What income investors should watch
- Shares must be purchased before the November 13 ex-dividend date to collect the December 4 payment.
- Tanker rates are cyclical, and the same rates that fund this dividend can fall sharply when product trade patterns weaken.
- The company has been selling vessels, so a smaller fleet must keep earning more per ship for profits to hold.
- A 100-share position now generates $300 in annual dividend income, up from $180 at the old rate.
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