Nat just released the tanker rates from last week and they are jaw dropping especially LR2 which is important for Scorpio Tankers.
Scorpio’s break even is about $15k. For every $1,000 increase in rates, this translates into $45 million of incremental cash flow.
$175k – $15k = $160k
160 x $1,000 = $7.2 billion or $600 million every 30 days
The current market cap is $1.4 billion. At these rates, Scorpio is earning it in 60 days. This is unbelievable.
Disclosure: Long Scorpio Tankers