Scorpio Tankers faces the prospect of cutting its dividend if product tanker rates don’t improve, says a leading shipping equity analyst.
“We expect a renewed focus on the company’s ability to sustain its dividend, which at 12.5 US cents per quarter represents an $86m annual cash call,” says Deutsche Bank’s Amit Mehrotra.
“We continue to believe the dividend is secure for the time being, though rates will have to inflect higher for it to be sustainable.”
Scorpio
