Shares of Scorpio Tankers Inc. (STNG) plummeted as much as 5.79% on October 29, 2024, after the company reported lower-than-expected financial results for the third quarter of 2024.

The shipping company reported revenue of $267.99 million, missing analysts' consensus estimate of $290.84 million by 7.86%. The revenue also declined by 7.97% compared to the same period last year. Scorpio Tankers attributed the revenue decline to lower average daily time charter equivalent (TCE) rates earned by its vessels during the quarter.

The company's adjusted earnings per share (EPS) came in at $1.75, falling short of analysts' expectations of $2.17 by 19.35%. The adjusted EPS was also down from $1.91 in the third quarter of 2023.

Scorpio Tankers cited several factors contributing to the weaker-than-expected performance, including seasonality, reduced product exports in certain regions, and increased competition from crude tankers entering the product tanker trade. These factors led to pressure on daily spot TCE rates, particularly for the company's LR2 and MR vessels.

While the company's operating income and adjusted EBITDA increased year-over-year, higher general and administrative expenses and lower vessel gains compared to the prior year period weighed on profitability.