Two analysts have questioned the sustainability of Scorpio Tankers' payout to shareholders if the products tanker market stays as low as it has been in recent months.
Debt analysis firm Reorg Research has issued a report pointing to the 10.6% yield on the New York-listed products tanker owner's $0.13-per-share quarterly dividend.
That hefty yield is an indication that the market is divided on the company's ability to execute on a strategy focused on pursuing a more conservative capital structure while returning capital to shareholders, Reorg said
The US research firm said Scorpio may need to the dividend if the market does not improve.
