Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three and six months
ended June 30, 2023. The Company also announced that its board of
directors (the "Board of Directors") has declared a quarterly cash
dividend on its common shares of $0.25 per share.
Results for the three months ended June
30, 2023 and 2022
For the three months ended June 30, 2023, the
Company had net income of $132.4 million, or $2.50 basic
and $2.40 diluted earnings per share.
For the three months ended June 30, 2023, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $133.3 million, or $2.51 basic and $2.41 diluted earnings
per share, which excludes from net income a $0.9 million, or $0.02
per basic and diluted share, write-off or acceleration of the
amortization of deferred financing fees on certain lease financing
obligations and related debt extinguishment costs.
For the three months ended June 30, 2022, the
Company had net income of $191.1 million, or $3.44 basic and $3.06
diluted earnings per share.
For the three months ended June 30, 2022, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $196.1 million, or $3.53 basic and $3.13 diluted earnings
per share, which excludes from net income (i) a $1.5 million, or
$0.03 per basic and $0.02 per diluted share, aggregate write-down
of vessels held for sale and loss on the sale of vessels, (ii) a
$3.9 million, or $0.07 per basic and $0.06 per diluted share,
write-off or acceleration of the amortization of deferred financing
fees on the debt or lease financing obligations relating to these
vessel sales and related debt extinguishment costs, and (iii) a
$0.4 million, or $0.01 per basic and $0.01 per diluted share, gain
recorded on the repurchase of the Company's Convertible Notes Due
2025.
Results for the six months ended June
30, 2023 and 2022
For the six months ended June 30, 2023, the
Company had net income of $325.6 million, or $5.93 basic
and $5.69 diluted earnings per share.
For the six months ended June 30, 2023, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $328.9 million, or $5.99 basic and $5.75 diluted earnings
per share, which excludes from net income a $3.3 million, or $0.06
per basic and diluted share, write-off or acceleration of the
amortization of deferred financing fees on certain lease financing
obligations and related debt extinguishment costs.
For the six months ended June 30, 2022, the
Company had net income of $106.7 million, or $1.92 basic and $1.84
diluted earnings per share.
For the six months ended June 30, 2022, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $181.3 million, or $3.27 basic and $2.99 diluted earnings
per share, which excludes from net income (i) a $69.2 million, or
$1.25 per basic and $1.07 per diluted share, aggregate write-down
of vessels held for sale and loss on the sale of vessels, (ii) a
$5.8 million, or $0.10 per basic and $0.09 per diluted share,
write-off or acceleration of the amortization of deferred financing
fees on the debt or lease financing obligations relating to these
vessel sales and related debt extinguishment costs and (iii) a $0.4
million, or $0.01 per basic and $0.01 per diluted share, gain
recorded on the repurchase of the Company's Convertible Notes Due
2025.
Declaration of Dividend
On August 1, 2023, the Board of Directors
declared a quarterly cash dividend of $0.25 per common share, with
a payment date of September 15, 2023 to all shareholders of record
as of August 15, 2023 (the record date). As of August 1, 2023,
there were 54,493,654 common shares of the Company outstanding.
Summary of Second Quarter 2023 and Other
Recent Significant Events
- Below is
a summary of the average daily Time Charter Equivalent ("TCE")
revenue (see Non-IFRS Measures section below) and duration of
contracted voyages and time charters for the Company's vessels
(both in the pools and outside of the pools) thus far in the third
quarter of 2023 as of the date hereof (See footnotes to "Other
operating data" table below for the definition of daily TCE
revenue):
|
Pool and Spot Market |
|
Time Charters Out of the Pool |
|
Average Daily TCE Revenue |
Expected Revenue Days(1) |
% of Days |
|
Average Daily TCE Revenue |
Expected Revenue Days(1) |
% of Days |
LR2 |
$ |
27,000 |
2,650 |
41 |
% |
|
$ |
30,500 |
910 |
100 |
% |
MR |
$ |
27,000 |
4,900 |
37 |
% |
|
$ |
21,800 |
450 |
100 |
% |
Handymax |
$ |
20,000 |
1,270 |
33 |
% |
|
N/A |
N/A |
N/A |
(1) Expected Revenue
Days are the total number of calendar days in the quarter for each
vessel, less the total number of expected off-hire days during the
period associated with major repairs or drydockings. Consequently,
Expected Revenue Days represent the total number of days the vessel
is expected to be available to earn revenue. Idle days, which are
days when a vessel is available to earn revenue, yet is not
employed, are included in revenue days. The Company uses revenue
days to show changes in net vessel revenues between periods.
-
Below is a summary of the average daily TCE revenue earned by the
Company's vessels during the second quarter of 2023:
|
Average Daily TCE Revenue |
Vessel class |
Pool / Spot |
Time Charters |
LR2 |
$ |
42,647 |
$ |
30,361 |
MR |
$ |
29,207 |
$ |
21,711 |
Handymax |
$ |
26,784 |
N/A |
-
In July 2023, the Company executed its previously announced $1.0
billion term loan and revolving credit facility with a group of
financial institutions (the "2023 $1.0 Billion Credit Facility").
The Company drew $440.6 million from this facility (split evenly
between the term and revolving portions) to finance 21 of the
Company’s unencumbered vessels. This facility has a final maturity
of June 30, 2028 and bears interest at SOFR plus a margin of 1.95%
per annum. The remaining availability of this facility is expected
to be drawn between the third quarter of 2023 and the end of the
first quarter of 2024, and mainly be used to repay (and re-finance)
more expensive lease financing.
-
In July 2023, the Company gave notice to exercise the purchase
options on two MR product tankers (STI Leblon and STI Bosphorus)
which are currently financed on the 2020 CMBFL Lease Financing.
Additionally, the Company gave notice in October 2022 to exercise
the purchase option on one LR2 product tanker (STI Supreme) which
is currently financed on the Ocean Yield Lease Financing. These
purchases are expected to take place prior to the end of the third
quarter of 2023 and result in an aggregate debt reduction of $64.3
million.
-
In July 2023, the Company exercised the purchase options on six MR
product tankers (STI Miracle, STI Maestro, STI Mighty, STI Modest,
STI Maverick, and STI Millennia) that were previously financed as
part of the IFRS 16 - Leases - $670.0 Million lease financing.
These transactions resulted in an aggregate debt reduction of
$143.6 million.
-
In July 2023, the Company sold the 2013 built MR product tanker,
STI Ville, for $32.5 million. As the vessel was unencumbered, the
Company made no debt repayments associated with this sale.
-
During the second quarter of 2023, the Company exercised the
purchase options on five LR2s and seven MRs (STI Steadfast, STI
Grace, STI Jermyn, STI Lavender, STI Lobelia, STI Magnetic, STI
Marshall, STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI
Magister) that were previously financed on the IFRS 16 - Leases -
$670.0 Million lease financing, the Ocean Yield Lease Financing,
and the 2021 CSSC Lease Financing. These transactions resulted in
an aggregate debt reduction of $300.2 million.
-
In May 2023, the Company executed a $117.4 million credit facility
from a European financial institution (the "2023 $117.4 Million
Credit Facility"). This facility was fully drawn upon execution and
seven vessels (STI Battersea, STI Wembley, STI Texas City, STI
Meraux, STI Mayfair, STI St. Charles, and STI Alexis) were
collateralized on the facility upon drawdown. The 2023 $117.4
Million Credit Facility has a final maturity of five years from the
drawdown date of each vessel and bears interest at SOFR plus a
margin of 1.925% per annum.
-
In June 2023, the Company received a commitment from DekaBank
Deutsche Girozentrale for a credit facility of up to $94.0 million
(the "2023 $94.0 Million Credit Facility"). This credit facility is
expected to be used to finance one MR product tanker and three LR2
product tankers. This credit facility has a final maturity of five
years from the drawdown date of each vessel and bears interest at
SOFR plus a margin of 1.70% per annum.
-
Since April 1, 2023 and through the date of this press release, the
Company has repurchased an aggregate of 5,893,324 of its common
shares in the open market at an average price of $48.00 per
share.
Securities Repurchase
Program
On February 15, 2023, the Board of Directors
authorized a new Securities Repurchase Program (the "2023
Securities Repurchase Program") to purchase up to an aggregate of
$250.0 million of the Company’s securities which, in addition to
its common shares also currently consist of its Senior Unsecured
Notes Due 2025 (NYSE: SBBA).
On May 1, 2023, and again on May 31, 2023, the
Board of Directors authorized to reset the 2023 Securities
Repurchase Program up to an aggregate of $250.0 million of the
Company’s securities.
From April 1, 2023 through the date of this
press release, the Company has purchased an aggregate of 5,893,324
of its common shares in the open market at an average price of
$48.00 per share.
There is $213.2 million available under the 2023
Securities Repurchase Program as of August 1, 2023.
Lease Repayments
During the second quarter of 2023, the Company
exercised the purchase options on five LR2s and seven MRs (STI
Steadfast, STI Grace, STI Jermyn, STI Lavender, STI Lobelia, STI
Magnetic, STI Marshall, STI Magic, STI Mystery, STI Marvel, STI
Mythic, and STI Magister) that were previously financed on the IFRS
16 - Leases - $670.0 Million lease financing, the Ocean Yield Lease
Financing, and the 2021 CSSC Lease Financing. These transactions
resulted in an aggregate debt reduction of $300.2 million.
In July 2023, the Company exercised the purchase
options on six MR product tankers that were previously financed on
the IFRS 16 - Leases - $670.0 Million lease financing (STI Miracle,
STI Maestro, STI Mighty, STI Modest, STI Maverick, and STI
Millennia). These transactions resulted in an aggregate debt
reduction of $143.6 million.
In July 2023, the Company gave notice to
exercise the purchase options on two MR product tankers (STI Leblon
and STI Bosphorus) that are currently financed on the 2020 CMBFL
Lease Financing. These purchases are expected to take place prior
to the end of the third quarter of 2023 and result in an aggregate
debt reduction of $36.5 million.
The Company also expects to complete the
previously announced repurchase of STI Supreme, which is currently
financed on the Ocean Yield Lease Financing, in the third quarter
of 2023 and which is expected to result in a debt reduction of
$27.8 million.
All of these lease financings bore interest at
LIBOR plus margins of between 3.2% and 5.4%.
New Executed or Committed
Financings
The Company has executed or received commitments
for three separate credit facilities for up to $1.2 billion in the
aggregate (the "New Facilities").
The first credit facility, the 2023 $117.4
Million Credit Facility, is from a European financial institution
for $117.4 million and was executed in May 2023. This facility was
fully drawn upon execution and seven vessels (STI Battersea, STI
Wembley, STI Texas City, STI Meraux, STI Mayfair, STI St. Charles,
and STI Alexis) were collateralized on the facility upon drawdown.
The 2023 $117.4 Million Credit Facility has a final maturity of
five years from the drawdown date of each vessel, bears interest at
SOFR plus a margin of 1.925% per annum and is expected to be repaid
in equal, aggregate, installments of $4.3 million per quarter, with
a balloon payment due at maturity. The remaining terms and
conditions of this credit facility, including financial covenants,
are similar to those set forth in the Company’s existing credit
facilities.
The second credit facility, the 2023 $1.0
Billion Credit Facility, is a term loan and revolving credit
facility from a group of financial institutions for up to $1.0
billion. Upon execution in July 2023, $440.6 million was drawn from
this facility (split evenly between the term loan and the revolver)
to finance 21 of the Company’s unencumbered vessels (STI Lobelia,
STI Lavender, STI Jermyn, STI Steadfast, STI Magic, STI Mystery,
STI Marvel, STI Millennia, STI Magister, STI Mythic, STI Modest,
STI Maverick, STI Miracle, STI Maestro, STI Mighty, STI Magnetic,
STI Seneca, STI Brooklyn, STI Manhattan, STI Bronx, and STI
Tribeca). This facility has a final maturity of June 30, 2028 and
bears interest at SOFR plus a margin of 1.95% per annum. The
remaining availability of this facility is expected to be drawn
between the third quarter of 2023 and the end of the first quarter
of 2024, and mainly be used to repay (and re-finance) more
expensive lease financing. This credit facility is expected to be
repaid in quarterly installments with a balloon payment due at
maturity date, where the term loan portion for each vessel shall be
repaid in full prior to the reduction of the revolver for each
vessel. The amounts drawn thus far are expected to be repaid in
aggregate repayments of $12.9 million per quarter for the first two
years, $8.7 million per quarter in years three through five, with a
balloon payment at maturity.
The 2023 $1.0 Billion Credit Facility offers the
Company an ability to substitute vessels and also includes an
uncommitted accordion feature of up to $200.0 million, which may be
incurred under the same terms and conditions at no later than 24
months after the closing date. The other terms and conditions of
the 2023 $1.0 Billion Credit Facility, including financial
covenants, are similar to those set forth in the Company’s existing
credit facilities.
The third credit facility commitment, the 2023
$94.0 Million Credit Facility, is from DekaBank Deutsche
Girozentrale for a credit facility of up to $94 million. This
credit facility is expected to be used to finance one MR product
tanker and three LR2 product tankers. This credit facility will
have a final maturity of five years from the drawdown date of each
vessel and will bear interest at SOFR plus a margin of 1.70% per
annum. The terms and conditions of this credit facility, including
financial covenants, will be similar to those set forth in the
Company’s existing credit facilities. This credit facility will be
subject to customary conditions precedent, and the execution of
definitive documentation, and is expected to close within the third
quarter of 2023.
The proceeds of the new facilities are expected
to be used, primarily, to repay more expensive lease financing.
Diluted Weighted Number of
Shares
The computation of earnings per share is
determined by taking into consideration the potentially dilutive
shares arising from the Company’s equity incentive plan. These
potentially dilutive shares are excluded from the computation of
earnings per share to the extent they are
anti-dilutive.
For the three and six months ended June 30,
2023, the Company’s basic weighted average number of shares
outstanding were 53,040,031 and 54,926,939,
respectively. For the three and six months ended June
30, 2023, the Company’s diluted weighted average number of shares
outstanding were 55,228,080 and 57,186,103, respectively, which
included the potentially dilutive impact of restricted shares
issued under the Company's equity incentive plan.
Conference Call
On Wednesday August 2, 2023, the Company plans
to issue its second quarter 2023 earnings press release in the
morning (Eastern Daylight Time) and host a conference call at 8:30
AM Eastern Daylight Time and 2:30 PM Central European Summer
Time.
Title: Scorpio Tankers Inc. Second Quarter 2023 Conference
Call
Date: Wednesday August 2, 2023
Time: 8:30 AM Eastern Daylight Time and 2:30 PM Central European
Summer Time
The conference call will be available over the internet, through
the Scorpio Tankers Inc. website www.scorpiotankers.com and the
webcast link:
https://edge.media-server.com/mmc/p/8q35pjcs
Participants for the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
The conference will also be available telephonically:
US/CANADA Dial-In Number: 1 (833) 636-1321
International Dial-In Number: +1 (412) 902-4260
Please ask to join the Scorpio Tankers Inc call
Participants should dial into the call 10 minutes before the
scheduled time.
To access the replay telephonically (valid until August 16,
2023):
US Toll Free: 1-877-344-7529
International Toll: +1-412-317-0088
Canada Toll Free: 1-855-669-9658
To access dial-in numbers for additional countries click on the
below link
https://services.choruscall.com/ccforms/replay.html
Replay Access Code: 8082952The information provided on the
teleconference is only accurate at the time of the conference call,
and the Company will take no responsibility for providing updated
information. Information on the Company’s website does not
constitute a part of and is not incorporated by reference into this
press release.
Current Liquidity
As of July 31, 2023, the Company had $682.7
million in unrestricted cash and cash equivalents.
Drydock, Scrubber and Ballast Water
Treatment Update
Set forth below is a table summarizing the
drydock, scrubber, and ballast water treatment system ("BWTS")
activity that occurred during the second quarter of 2023 and the
estimated expected payments to be made, and off-hire days that are
expected to be incurred, for the Company's drydocks, ballast water
treatment system installations, and scrubber installations through
2023 and 2024:
|
|
|
Number of(3) |
|
Aggregate costs in millions of USD(1) |
Aggregate offhire days(2) |
LR2s |
MRs |
Handymax |
Q2
2023 - actual (a) |
$ |
5.1 |
64 |
— |
3 |
— |
Q3 2023 - estimated (b) |
|
3.9 |
20 |
— |
1 |
— |
Q4 2023 - estimated (c) |
|
7.5 |
20 |
— |
1 |
— |
FY 2024 - estimated (d) |
|
69.9 |
1,355 |
11 |
36 |
12 |
(1) These costs include estimated cash
payments for drydocks, ballast water treatment system installations
and scrubber installations. These amounts may include costs
incurred for previous projects for which payments may not be due
until subsequent quarters, or installment payments that are due in
advance of the scheduled service and may be scheduled to occur in
quarters prior to the actual installation. In addition to these
installment payments, these amounts also include estimates of the
installation costs of such systems. The timing of the
payments set forth are estimates only and may vary as the timing of
the related drydocks and installations finalize.
(2) Represents the total estimated off-hire
days during the period, including vessels that commenced work in a
previous period.
(3) Represents the number of vessels
scheduled to commence drydock, ballast water treatment system,
and/or scrubber installations during the period. It does not
include vessels that commenced work in prior periods but will be
completed in the subsequent period. The number of vessels in these
tables may reflect a certain amount of overlap where certain
vessels are expected to be drydocked and have ballast water
treatment systems and/or scrubbers installed simultaneously.
Additionally, the timing set forth in these tables may vary as
drydock, ballast water treatment system installation and scrubber
installation times are finalized.
(a) Includes one BWTS
installation.(b) Includes one BWTS
installation.(c) Includes one BWTS
installation.(d) Includes 11 scrubber
installations.
Debt
Set forth below is a summary of the principal
balances of the Company’s outstanding indebtedness as of the dates
presented:
|
In thousands of U.S. Dollars |
Outstanding Principal as of March 31, 2023 |
Outstanding Principal as of June 30, 2023 |
Outstanding Principal as of July 31, 2023 |
1 |
Hamburg Commercial Credit Facility (6) |
$ |
32,909 |
$ |
32,086 |
$ |
32,086 |
2 |
Prudential Credit Facility (6) |
|
37,899 |
|
36,513 |
|
35,589 |
3 |
2019 DNB / GIEK Credit Facility (6) |
|
36,559 |
|
34,781 |
|
34,781 |
4 |
BNPP Sinosure Credit Facility (6) |
|
80,576 |
|
75,121 |
|
75,121 |
5 |
2020 $225.0 Million Credit Facility (6) |
|
36,482 |
|
35,198 |
|
35,198 |
6 |
2023 $225.0 Million Credit Facility |
|
225,000 |
|
216,525 |
|
208,050 |
7 |
2023 $49.1 Million Credit Facility |
|
49,088 |
|
47,934 |
|
47,934 |
8 |
2023 $117.4 Million Credit Facility (1) |
|
— |
|
117,394 |
|
117,394 |
9 |
2023 $1.0 Billion Credit Facility (2) |
|
— |
|
— |
|
440,600 |
10 |
Ocean Yield Lease Financing (3) (6) |
|
84,372 |
|
54,895 |
|
54,443 |
11 |
BCFL Lease Financing (LR2s) |
|
65,598 |
|
62,837 |
|
61,931 |
12 |
CSSC Lease Financing (6) |
|
117,635 |
|
113,994 |
|
112,780 |
13 |
BCFL Lease Financing (MRs) |
|
49,202 |
|
45,040 |
|
43,688 |
14 |
2020 CMBFL Lease Financing (6) |
|
37,279 |
|
36,468 |
|
36,468 |
15 |
2020 TSFL Lease Financing |
|
39,777 |
|
38,947 |
|
38,947 |
16 |
2020 SPDBFL Lease Financing (6) |
|
81,887 |
|
80,264 |
|
80,264 |
17 |
2021 AVIC Lease Financing (6) |
|
82,822 |
|
81,009 |
|
81,009 |
18 |
2021 CMBFL Lease Financing (6) |
|
66,415 |
|
64,785 |
|
64,380 |
19 |
2021 TSFL Lease Financing |
|
48,902 |
|
47,807 |
|
47,807 |
20 |
2021 CSSC Lease Financing (4) |
|
47,315 |
|
— |
|
— |
21 |
2021 $146.3 Million Lease Financing (6) |
|
130,404 |
|
127,110 |
|
123,815 |
22 |
2021 Ocean Yield Lease Financing (6) |
|
62,490 |
|
61,032 |
|
60,535 |
23 |
2022 AVIC Lease Financing (6) |
|
111,512 |
|
109,220 |
|
109,220 |
24 |
IFRS 16 - Leases - 3 MR |
|
19,063 |
|
16,904 |
|
16,195 |
25 |
IFRS 16 - Leases - $670.0 Million (5) |
|
464,813 |
|
231,015 |
|
86,673 |
26 |
Unsecured Senior Notes Due 2025 |
|
70,571 |
|
70,571 |
|
70,571 |
|
Gross debt outstanding |
|
2,078,570 |
|
1,837,450 |
|
2,115,479 |
|
Cash and cash equivalents |
|
612,655 |
|
313,923 |
|
682,678 |
|
Net debt |
$ |
1,465,915 |
$ |
1,523,527 |
$ |
1,432,801 |
(1) The 2023 $117.4 Million Credit Facility
was executed and drawn in May 2023. Seven product tankers (two
Handymax, four MRs and one LR2) were collateralized under this
facility as part of the drawdown. The 2023 $117.4 Million Credit
Facility has a final maturity of five years from the drawdown date
of each vessel, bears interest at SOFR plus a margin of 1.925% per
annum and is expected to be repaid in equal, aggregate,
installments of $4.3 million per quarter, with a balloon payment
due at maturity The remaining terms and conditions of this credit
facility, including financial covenants, are similar to those set
forth in the Company’s existing credit facilities.
(2) The 2023 $1.0 Billion Credit Facility
was executed in July 2023. Upon execution, $440.6 million was drawn
from this facility (split evenly between the term loan and the
revolver) to finance 21 of the Company’s unencumbered vessels (17
MRs and four LR2s). This facility has a final maturity of June 30,
2028 and bears interest at SOFR plus a margin of 1.95% per annum.
The amounts drawn, thus far, are expected to be repaid in aggregate
repayments of $12.9 million per quarter for the first two years,
$8.7 million per quarter in years three through five, with a
balloon payment at maturity, where the term loan portion for each
vessel shall be repaid in full prior to the reduction of the
revolver for each vessel. The remaining terms and conditions of
this credit facility, including financial covenants, are similar to
those set forth in the Company’s existing credit facilities.
(3) In October 2022, the Company gave
notice to exercise the purchase options on STI Steadfast and STI
Supreme on the Ocean Yield Lease Financing. In May 2023, the
Company exercised the purchase option on STI Steadfast resulting in
a debt reduction of $27.8 million. The remaining transaction for
STI Supreme is expected to occur in the third quarter of 2023
resulting in a debt reduction of $27.8 million.
(4) In May 2023, the Company exercised the
purchase options on STI Grace and STI Jermyn on the 2021 CSSC Lease
Financing and repaid the aggregate outstanding lease obligation of
$46.9 million as part of these transactions.
(5) In May and June 2023, the Company
exercised the purchase options on STI Lavender, STI Magnetic, STI
Marshall, STI Lobelia, STI Magic, STI Mystery, STI Marvel, STI
Mythic, and STI Magister on the IFRS 16 - Leases - $670.0 Million
lease financing and repaid the aggregate outstanding lease
obligation of $225.5 million as part of these transactions. In July
2023, the Company exercised the purchase options on STI Miracle,
STI Maestro, STI Mighty, STI Modest, STI Maverick, and STI
Millennia on the IFRS 16 - Leases - $670.0 Million lease financing
and repaid the aggregate outstanding lease obligation of $143.6
million as part of these transactions.
(6) We have agreed to, or executed an
amendment agreement for the transitioning from LIBOR to SOFR. The
weighted average credit adjustment spread of all these transition
agreements (based on June 30, 2023 debt outstanding), which will be
added to the margin on each facility, is 0.17%.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of June 30, 2023, which includes principal amounts
due under the Company's secured credit facilities, lease financing
arrangements, Senior Notes Due 2025, and lease liabilities under
IFRS 16 (which also include actual scheduled payments made from
July 1, 2023 through July 31, 2023):
|
|
|
|
|
|
In
millions of U.S. dollars |
|
Repayments/maturities of unsecured debt |
Vessel financings - announced vessel purchases and
maturities in 2023 and 2024 |
Vessel financings - scheduled repayments, in addition to
maturities in 2025 and thereafter |
Total(1) |
Repayments of new borrowing during July
2023(4) |
Pro forma, including new borrowing |
July 1, 2023 to July 31, 2023(2) |
|
$ |
— |
$ |
143.6 |
$ |
19.0 |
$ |
162.6 |
$ |
— |
$ |
162.6 |
Q3 2023(3) |
|
|
— |
|
64.3 |
|
29.9 |
|
94.2 |
|
12.9 |
|
107.1 |
Q4 2023 |
|
|
— |
|
— |
|
54.2 |
|
54.2 |
|
12.9 |
|
67.1 |
Q1 2024 |
|
|
— |
|
— |
|
48.3 |
|
48.3 |
|
12.9 |
|
61.2 |
Q2 2024 |
|
|
— |
|
— |
|
53.7 |
|
53.7 |
|
12.9 |
|
66.6 |
Q3 2024(5) |
|
|
— |
|
42.7 |
|
46.5 |
|
89.2 |
|
12.9 |
|
102.1 |
Q4 2024(6) |
|
|
— |
|
38.2 |
|
48.0 |
|
86.2 |
|
12.9 |
|
99.1 |
2025 and thereafter |
|
|
70.6 |
|
— |
|
1,178.5 |
|
1,249.1 |
|
363.2 |
|
1,612.3 |
|
|
$ |
70.6 |
$ |
288.8 |
$ |
1,478.1 |
$ |
1,837.5 |
$ |
440.6 |
$ |
2,278.1 |
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of June
30, 2023.
(2) Repayments include the exercise of the
purchase options on STI Miracle, STI Maestro, STI Mighty, STI
Modest, STI Maverick, and STI Millennia on the IFRS 16 - Leases -
$670.0 Million lease financing and the aggregate outstanding lease
obligation of $143.6 million related to these vessels at the date
of the purchases.
(3) Repayments include the exercise the
purchase options on two MR product tankers that are currently
financed on the 2020 CMBFL Lease Financing (STI Leblon and STI
Bosphorus). These purchases are expected to take place prior to the
end of the third quarter of 2023 and result in an aggregate debt
reduction of $36.5 million at the dates of the purchases. In
October 2022, the Company gave notice to exercise the purchase
option on STI Supreme on the Ocean Yield Lease Financing. The
transaction is expected to occur in the third quarter of 2023
resulting in a debt reduction of $27.8 million.
(4) Repayments include the 2023 $1.0
Billion Credit Facility which was executed in July 2023. Upon
execution, $440.6 million was drawn from this facility (split
evenly between the term and revolving portions) to finance 21 of
the Company’s unencumbered vessels (17 MRs and four LR2s). This
facility has a final maturity of June 30, 2028. The amounts drawn
thus far are expected to be repaid in aggregate repayments of $12.9
million per quarter for the first two years, $8.7 million per
quarter in years three through five, with a balloon payment at
maturity, where the term loan portion for each vessel shall be
repaid in full prior to the reduction of the revolver for each
vessel.
(5) Repayments include (i) $15.0 million,
inclusive of the scheduled purchase options, on three MR product
tankers (STI Topaz, STI Ruby, and STI Garnet), which are currently
financed under the BCFL Lease Financing (MRs); and (ii) $27.7
million for the scheduled maturity payments on the 2019 DNB / GIEK
Credit Facility.
(6) Repayments include (i) $10.2 million,
inclusive of the scheduled purchase options, on two MR product
tankers (STI Onyx and STI Amber), which are currently financed
under the BCFL Lease Financing (MRs); and (ii) $28.0 million for
the scheduled maturity payments on the Hamburg Commercial Credit
Facility.
Explanation of Variances on the Second
Quarter of 2023 Financial Results Compared to the Second Quarter of
2022
For the three months ended June 30, 2023, the
Company recorded net income of $132.4 million compared to net
income of $191.1 million for the three months ended June 30, 2022.
The following were the significant changes between the two
periods:
-
TCE revenue, a Non-IFRS measure, is vessel revenues less voyage
expenses (including bunkers and port charges). TCE revenue is
included herein because it is a standard shipping industry
performance measure used primarily to compare period-to-period
changes in a shipping company's performance irrespective of changes
in the mix of charter types (i.e., spot voyages, time charters, and
pool charters), and it provides useful information to investors and
management. The following table sets forth TCE revenue for the
three months ended June 30, 2023 and 2022:
|
|
|
For the three months ended June 30, |
In thousands of
U.S. dollars |
|
|
2023 |
|
|
|
2022 |
|
|
Vessel revenue |
|
$ |
329,299 |
|
|
$ |
405,073 |
|
|
Voyage expenses |
|
|
(1,744 |
) |
|
|
(23,485 |
) |
|
TCE
revenue |
|
$ |
327,555 |
|
|
$ |
381,588 |
|
-
TCE revenue for the three months ended June 30, 2023 decreased by
$54.0 million to $327.6 million, from $381.6 million for the three
months ended June 30, 2022. Overall average TCE revenue per day
decreased to $32,154 per day during the three months ended June 30,
2023, from $36,006 per day during the three months ended June 30,
2022. The average number of vessels was 113.0 during
the three months end June 30, 2023 as compared to 119.9 during the
three months ended June 30, 2022. The decrease in the
average number of vessels was due to the previously disclosed sales
of 18 vessels during the year ended December 31, 2022.
-
TCE revenue for the three months ended June 30, 2023 was robust
despite a decline in daily TCE rates when compared to the same
period in the prior year. The second quarter of 2022 reflected
several key events and market conditions (discussed below), which
provided multiple catalysts simultaneously and resulted in a
counter-seasonal spike in daily TCE rates. The second quarter of
2023 (particularly the latter half) reflected a more normalized
seasonal pattern whereby extended refinery maintenance, lower
refining margins and a reduction in arbitrage opportunities all led
to reduced refinery throughput and decreased volumes from major
export regions. Nevertheless, on a seasonally adjusted basis,
demand for the Company's vessels remained resilient, driven by low
inventory levels, a modest newbuilding orderbook (with a dearth of
deliveries expected in the next two years), and growing underlying
consumption for refined petroleum products.
-
TCE revenue for the three months ended June 30, 2022 reflected a
structural change in the supply and demand balance for product
tankers. A confluence of events served as a catalyst to a
substantial increase in ton-mile demand beginning in March 2022.
First, the continued easing of COVID-19 restrictions around the
globe resulted in increased personal mobility thus stimulating
underlying demand for refined petroleum products. Second, record
refining margins combined with low global refined petroleum product
inventories incentivized refiners to increase and maintain high
utilization levels, which drove substantial increases in refined
petroleum product export volumes throughout the world. Third, the
volatility brought on by the ongoing conflict in Ukraine has
disrupted supply chains for crude oil and refined petroleum
products, changing volumes and trade routes, and thus increasing
ton-mile demand for refined petroleum products.
The Company also had
an increased number of vessels operating outside of the Scorpio
pools during the three months ended June 30, 2022, which led to an
increase in voyage revenue and voyage expenses for that period.
-
Vessel operating costs for the three months ended June 30, 2023
increased by $1.9 million to $78.9 million, from $76.9 million for
the three months ended June 30, 2022. Vessel operating costs per
vessel per day increased to $7,669 per day for the three months
ended June 30, 2023 from $7,048 per day for the three months ended
June 30, 2022. General inflationary pressures were the main driver
behind the increase, as vessel operating costs per day increased
across all vessel classes with the largest increases affecting
certain crewing expenses, spares and stores expenses. The aggregate
increase is offset by the sale of 18 owned or lease financed
vessels during the year ended December 31, 2022 (16 of which closed
during the first half of the year and two in the second half of
2022).
-
Depreciation expense – owned or sale leaseback vessels for the
three months ended June 30, 2023 increased by $1.1 million to $42.2
million, from $41.1 million for the three months ended June 30,
2022. This increase was attributable to the exercise of purchase
options on nine lease financed vessels during the second quarter of
2023 that were previously accounted for as IFRS 16 - Leases. The
carrying value of these vessels was reclassified to Vessels from
Right of Use Assets on the Company's balance sheet on the date of
purchase. Depreciation expense going forward from the date of
repurchase will be recorded as a part of owned vessels and will not
change significantly. This increase was offset by the sale of 17 of
the Company's owned or sale leaseback vessels during the year ended
December 31, 2022 (16 of which closed during the first half of
2022). These vessels were written down to their net realizable
value upon being designated as held for sale, and depreciation
expense ceased being recorded upon that designation.
-
Depreciation expense - right of use assets for the three months
ended June 30, 2023 decreased by $1.3 million to $8.5 million from
$9.8 million for the three months ended June 30, 2022. Depreciation
expense - right of use assets reflects the straight-line
depreciation expense recorded under IFRS 16 - Leases. This decrease
was attributable to the exercise of purchase options on nine lease
financed vessels during the second quarter of 2023 that were
previously accounted for as IFRS 16 - Leases. The carrying value of
these vessels was reclassified to Vessels from Right of Use Assets
on the Company's balance sheet on the date of purchase.
Depreciation expense going forward from the date of repurchase will
be recorded as part of owned vessels. The decrease is also
attributable to the sale of one of the Company's right of use asset
vessels which was written down to its net realizable value upon
being designated as held for sale during the first quarter of 2022,
and depreciation expense ceased being recorded upon that
designation. The Company had four LR2s and 17 MRs that were
accounted for under IFRS 16 - Leases for all or a portion of the
three months ended June 30, 2023.
-
General and administrative expenses for the three months ended June
30, 2023, increased by $4.4 million to $27.2 million, from $22.8
million for the three months ended June 30, 2022. This increase was
primarily due to an increase in the amortization of restricted
stock awards as a result of a recent grant, the value of which is
determined based on the Company's stock price on the date of the
grant. The awards granted to employees vest ratably in years three,
four, and five following the initial grant.
-
Financial expenses for the three months ended June 30, 2023
increased by $3.0 million to $43.7 million, from $40.7 million for
the three months ended June 30, 2022. This increase was primarily
attributable to increases in benchmark rates, primarily LIBOR. This
increase was partially offset by the overall reduction in the
Company's average indebtedness to $2.0 billion from $2.8 billion
during the three months ended June 30, 2023 as compared to the
three months ended June 30, 2022, arising from the aforementioned
sales of 18 vessels (and repayments of the related debt or lease
financing obligations), the exercise of purchase options on 39
lease financed vessels (six in August 2022, 16 in December 2022,
four in January 2023, one in March 2023, six in May 2023, and six
in June 2023), the maturity of the Convertible Notes Due 2022 in
May 2022 and the conversion of the Convertible Notes Due 2025 in
December 2022.Additionally, the Company recorded $0.9 million of
debt extinguishment related costs during the three months ended
June 30, 2023, as compared to $3.9 million during the three months
ended June 30, 2022. This was accompanied by an aggregate decrease
of $4.1 million in the amortization of deferred financing fees,
accretion on both the convertible notes, and debt assumed in
business combinations, which were $1.7 million during the three
months ended June 30, 2023 as compared to $5.8 million during the
three months ended June 30, 2022. The decrease was primarily
related to maturity and conversion of the convertible notes during
2022, as noted above.
|
Scorpio Tankers Inc. and Subsidiaries Condensed
Consolidated Statements of
Income(unaudited) |
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
In thousands of
U.S. dollars except per share and share data |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
329,299 |
|
|
$ |
405,073 |
|
|
$ |
713,730 |
|
|
$ |
579,120 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
Vessel operating costs |
|
(78,858 |
) |
|
|
(76,923 |
) |
|
|
(152,532 |
) |
|
|
(161,755 |
) |
|
Voyage expenses |
|
(1,744 |
) |
|
|
(23,485 |
) |
|
|
(9,013 |
) |
|
|
(25,508 |
) |
|
Depreciation - owned or sale
leaseback vessels |
|
(42,197 |
) |
|
|
(41,051 |
) |
|
|
(82,688 |
) |
|
|
(85,159 |
) |
|
Depreciation - right of use
assets |
|
(8,513 |
) |
|
|
(9,768 |
) |
|
|
(18,003 |
) |
|
|
(19,488 |
) |
|
General and administrative
expenses |
|
(27,209 |
) |
|
|
(22,803 |
) |
|
|
(49,480 |
) |
|
|
(35,257 |
) |
|
Net loss on sales of
vessels |
|
— |
|
|
|
(1,480 |
) |
|
|
— |
|
|
|
(69,218 |
) |
|
Total operating expenses |
|
(158,521 |
) |
|
|
(175,510 |
) |
|
|
(311,716 |
) |
|
|
(396,385 |
) |
Operating
income |
|
170,778 |
|
|
|
229,563 |
|
|
|
402,014 |
|
|
|
182,735 |
|
Other
(expenses) and income, net |
|
|
|
|
|
|
|
|
Financial expenses |
|
(43,720 |
) |
|
|
(40,709 |
) |
|
|
(87,252 |
) |
|
|
(78,710 |
) |
|
Financial income |
|
4,359 |
|
|
|
836 |
|
|
|
8,544 |
|
|
|
1,024 |
|
|
Other income, net |
|
986 |
|
|
|
1,441 |
|
|
|
2,332 |
|
|
|
1,634 |
|
|
Total other expense, net |
|
(38,375 |
) |
|
|
(38,432 |
) |
|
|
(76,376 |
) |
|
|
(76,052 |
) |
Net
income |
$ |
132,403 |
|
|
$ |
191,131 |
|
|
$ |
325,638 |
|
|
$ |
106,683 |
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.50 |
|
|
$ |
3.44 |
|
|
$ |
5.93 |
|
|
$ |
1.92 |
|
|
Diluted |
$ |
2.40 |
|
|
$ |
3.06 |
|
|
$ |
5.69 |
|
|
$ |
1.84 |
|
|
Basic weighted average shares
outstanding |
|
53,040,031 |
|
|
|
55,594,623 |
|
|
|
54,926,939 |
|
|
|
55,502,389 |
|
|
Diluted weighted average
shares outstanding (1) |
|
55,228,080 |
|
|
|
64,419,318 |
|
|
|
57,186,103 |
|
|
|
64,611,651 |
|
(1) The computation of diluted earnings per
share for the three months ended June 30, 2023 includes the effect
of potentially dilutive unvested shares of restricted stock. The
computation of diluted earnings per share for the three months
ended June 30, 2022 includes the effect of potentially dilutive
unvested shares of restricted stock and the Convertible Notes Due
2022 (which were repaid in full upon maturity in May 2022) and
Convertible Notes Due 2025 (which were fully converted to common
shares in December 2022).
Scorpio Tankers Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(unaudited) |
|
As of |
In thousands of U.S.
dollars |
June 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
313,923 |
|
|
$ |
376,870 |
|
Accounts receivable |
|
201,568 |
|
|
|
276,700 |
|
Prepaid expenses and other
current assets |
|
10,667 |
|
|
|
18,159 |
|
Inventories |
|
8,506 |
|
|
|
15,620 |
|
Assets held for sale |
|
24,561 |
|
|
|
— |
|
Total current
assets |
|
559,225 |
|
|
|
687,349 |
|
Non-current
assets |
|
|
|
Vessels and drydock |
|
3,319,688 |
|
|
|
3,089,254 |
|
Right of use assets for
vessels |
|
348,797 |
|
|
|
689,826 |
|
Other assets |
|
83,742 |
|
|
|
83,754 |
|
Goodwill |
|
8,197 |
|
|
|
8,197 |
|
Restricted cash |
|
783 |
|
|
|
783 |
|
Total non-current
assets |
|
3,761,207 |
|
|
|
3,871,814 |
|
Total
assets |
$ |
4,320,432 |
|
|
$ |
4,559,163 |
|
Current
liabilities |
|
|
|
Current portion of long-term
debt |
$ |
86,087 |
|
|
$ |
31,504 |
|
Lease liability - sale and
leaseback vessels |
|
128,823 |
|
|
|
269,145 |
|
Lease liability - IFRS 16 |
|
161,887 |
|
|
|
52,346 |
|
Accounts payable |
|
11,220 |
|
|
|
28,748 |
|
Accrued expenses and other
liabilities |
|
72,893 |
|
|
|
91,508 |
|
Total current
liabilities |
|
460,910 |
|
|
|
473,251 |
|
Non-current
liabilities |
|
|
|
Long-term debt |
|
569,327 |
|
|
|
264,106 |
|
Lease liability - sale and
leaseback vessels |
|
778,816 |
|
|
|
871,469 |
|
Lease liability - IFRS 16 |
|
86,981 |
|
|
|
443,529 |
|
Total non-current
liabilities |
|
1,435,124 |
|
|
|
1,579,104 |
|
Total
liabilities |
|
1,896,034 |
|
|
|
2,052,355 |
|
Shareholders'
equity |
|
|
|
Issued, authorized and fully
paid-in share capital: |
|
|
|
Share capital |
|
745 |
|
|
|
727 |
|
Additional paid-in
capital |
|
3,066,288 |
|
|
|
3,049,732 |
|
Treasury shares |
|
(1,040,489 |
) |
|
|
(641,545 |
) |
Retained earnings |
|
397,854 |
|
|
|
97,894 |
|
Total shareholders'
equity |
|
2,424,398 |
|
|
|
2,506,808 |
|
Total liabilities and
shareholders' equity |
$ |
4,320,432 |
|
|
$ |
4,559,163 |
|
Scorpio Tankers Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows
(unaudited) |
|
For the six months ended June 30, |
In thousands of U.S. dollars |
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
Net income |
$ |
325,638 |
|
|
$ |
106,683 |
|
Depreciation - owned or sale
leaseback vessels |
|
82,688 |
|
|
|
85,159 |
|
Depreciation - right of use
assets |
|
18,003 |
|
|
|
19,488 |
|
Amortization of restricted
stock |
|
16,574 |
|
|
|
10,676 |
|
Amortization of deferred
financing fees |
|
2,548 |
|
|
|
3,484 |
|
Non-cash debt extinguishment
costs |
|
824 |
|
|
|
4,543 |
|
Accretion of convertible
notes |
|
— |
|
|
|
7,748 |
|
Net loss on sales of
vessels |
|
— |
|
|
|
69,218 |
|
Accretion of fair value
measurement on debt assumed in business combinations |
|
656 |
|
|
|
1,396 |
|
Gain on Convertible Notes
transactions |
|
— |
|
|
|
(412 |
) |
Share of income from dual fuel
tanker joint venture |
|
(2,395 |
) |
|
|
(133 |
) |
|
|
444,536 |
|
|
|
307,850 |
|
Changes in assets and
liabilities: |
|
|
|
Decrease in inventories |
|
7,114 |
|
|
|
5,873 |
|
Decrease / (increase) in
accounts receivable |
|
75,132 |
|
|
|
(166,834 |
) |
Decrease / (increase) in
prepaid expenses and other current assets |
|
7,492 |
|
|
|
(4,583 |
) |
Decrease / (increase) in other
assets |
|
918 |
|
|
|
(185 |
) |
Decrease in accounts
payable |
|
(16,497 |
) |
|
|
(20,740 |
) |
(Decrease) / increase in
accrued expenses |
|
(17,346 |
) |
|
|
18,421 |
|
|
|
56,813 |
|
|
|
(168,048 |
) |
Net cash inflow from
operating activities |
|
501,349 |
|
|
|
139,802 |
|
Investing
activities |
|
|
|
Net proceeds from sales of
vessels |
|
— |
|
|
|
541,187 |
|
Distributions from dual fuel
tanker joint venture |
|
1,489 |
|
|
|
240 |
|
Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
leased financed and bareboat-in vessels) |
|
(13,545 |
) |
|
|
(22,779 |
) |
Net cash (outflow) /
inflow from investing activities |
|
(12,056 |
) |
|
|
518,648 |
|
Financing
activities |
|
|
|
Debt repayments |
|
(260,950 |
) |
|
|
(507,764 |
) |
Issuance of debt |
|
391,482 |
|
|
|
122,637 |
|
Debt issuance costs |
|
(7,524 |
) |
|
|
(1,621 |
) |
Principal repayments on lease
liability - IFRS 16 |
|
(250,626 |
) |
|
|
(52,568 |
) |
Repurchase / repayment of
convertible notes |
|
— |
|
|
|
(82,251 |
) |
Decrease in restricted
cash |
|
— |
|
|
|
4,008 |
|
Dividends paid |
|
(25,678 |
) |
|
|
(11,778 |
) |
Repurchase of common
stock |
|
(398,944 |
) |
|
|
— |
|
Net cash outflow from
financing activities |
|
(552,240 |
) |
|
|
(529,337 |
) |
(Decrease) / increase
in cash and cash equivalents |
|
(62,947 |
) |
|
|
129,113 |
|
Cash and cash equivalents at
January 1, |
|
376,870 |
|
|
|
230,415 |
|
Cash and cash
equivalents at June 30, |
$ |
313,923 |
|
|
$ |
359,528 |
|
Scorpio Tankers Inc. and SubsidiariesOther
operating data for the six months ended June 30,
2023 and 2022
(unaudited) |
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Adjusted
EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
|
$ |
235,227 |
|
$ |
289,485 |
|
$ |
521,611 |
|
$ |
368,910 |
|
|
|
|
|
|
|
|
|
Average Daily
Results |
|
|
|
|
|
|
|
|
Fleet |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
32,154 |
|
$ |
36,006 |
|
$ |
34,810 |
|
$ |
25,444 |
Vessel operating costs per day
(3) |
|
$ |
7,669 |
|
$ |
7,048 |
|
$ |
7,458 |
|
$ |
7,173 |
Average number of vessels |
|
|
113.0 |
|
|
119.9 |
|
|
113.0 |
|
|
124.6 |
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
39,526 |
|
$ |
36,065 |
|
$ |
41,395 |
|
$ |
25,287 |
Vessel operating costs per day
(3) |
|
$ |
8,070 |
|
$ |
7,287 |
|
$ |
7,785 |
|
$ |
7,258 |
Average number of vessels |
|
|
39.0 |
|
|
41.9 |
|
|
39.0 |
|
|
41.9 |
|
|
|
|
|
|
|
|
|
LR1 |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
N/A |
|
$ |
22,345 |
|
N/A |
|
$ |
13,690 |
Vessel operating costs per day
(3) |
|
N/A |
|
$ |
7,708 |
|
N/A |
|
$ |
7,286 |
Average number of vessels |
|
N/A |
|
|
2.8 |
|
N/A |
|
|
6.7 |
|
|
|
|
|
|
|
|
|
MR |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
28,586 |
|
$ |
34,904 |
|
$ |
31,037 |
|
$ |
25,583 |
Vessel operating costs per day
(3) |
|
$ |
7,563 |
|
$ |
6,967 |
|
$ |
7,337 |
|
$ |
7,166 |
Average number of vessels |
|
|
60.0 |
|
|
61.3 |
|
|
60.0 |
|
|
62.0 |
|
|
|
|
|
|
|
|
|
Handymax |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
26,784 |
|
$ |
41,831 |
|
$ |
32,534 |
|
$ |
29,119 |
Vessel operating costs per day
(3) |
|
$ |
7,064 |
|
$ |
6,554 |
|
$ |
7,083 |
|
$ |
6,890 |
Average number of vessels |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
|
|
|
|
|
|
|
Capital
Expenditures |
|
|
|
|
|
|
|
|
Drydock, scrubber, ballast
water treatment system and other vessel related payments (in
thousands of U.S. dollars) |
|
$ |
5,062 |
|
$ |
8,500 |
|
$ |
13,545 |
|
$ |
22,779 |
(1) |
See Non-IFRS Measures section below. |
(2) |
Freight rates are commonly measured in the shipping industry in
terms of time charter equivalent per day (or TCE per day), which is
calculated by subtracting voyage expenses, including bunkers and
port charges, from vessel revenue and dividing the net amount (time
charter equivalent revenues) by the number of revenue days in the
period. Revenue days are the number of days vessels are part of the
fleet less the number of days vessels are off-hire for drydock and
repairs. |
(3) |
Vessel operating costs per day represent vessel operating costs
divided by the number of operating days during the period.
Operating days are the total number of available days in a period
with respect to vessels that are owned, operating under a lease
financing arrangement, or bareboat chartered-in, before deducting
available days due to off-hire days and days in drydock. Operating
days is a measurement that is only applicable to vessels that are
owned, operating under a lease financing arrangement, or bareboat
chartered-in, not time chartered-in vessels. |
Fleet list as of August 1, 2023 |
|
|
Vessel Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Scrubber |
|
|
Owned, sale
leaseback and bareboat chartered-in vessels |
|
|
|
|
|
|
|
|
|
1 |
STI Brixton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
2 |
STI Comandante |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
3 |
STI Pimlico |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
4 |
STI Hackney |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
5 |
STI Acton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
6 |
STI Fulham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
7 |
STI Camden |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
8 |
STI Battersea |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
9 |
STI Wembley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
10 |
STI Finchley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
11 |
STI Clapham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
12 |
STI Poplar |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
13 |
STI Hammersmith |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
14 |
STI Rotherhithe |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
15 |
STI Amber |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
17 |
STI Ruby |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
18 |
STI Garnet |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
19 |
STI Onyx |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
20 |
STI Duchessa |
|
2014 |
|
49,990 |
|
— |
|
Time Charter (4) |
|
MR |
|
Not Yet Installed |
|
21 |
STI Opera |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
22 |
STI Texas City |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
23 |
STI Meraux |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
24 |
STI San Antonio |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
25 |
STI Venere |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
26 |
STI Virtus |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
27 |
STI Aqua |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
28 |
STI Dama |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
29 |
STI Regina |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
30 |
STI St. Charles |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
31 |
STI Mayfair |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
32 |
STI Yorkville |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
33 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
34 |
STI Battery |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
35 |
STI Soho |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
36 |
STI Memphis |
|
2014 |
|
49,990 |
|
— |
|
Time Charter (5) |
|
MR |
|
Yes |
|
37 |
STI Tribeca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
38 |
STI Gramercy |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
39 |
STI Bronx |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
40 |
STI Pontiac |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
41 |
STI Manhattan |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
42 |
STI Queens |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
43 |
STI Osceola |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
44 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
45 |
STI Seneca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
46 |
STI Westminster |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
47 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
48 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
49 |
STI Galata |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
50 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
51 |
STI Leblon |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
52 |
STI La Boca |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
53 |
STI San Telmo |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
54 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
55 |
STI Esles II |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
56 |
STI Jardins |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
57 |
STI Magic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
58 |
STI Mystery |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
59 |
STI Marvel |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
60 |
STI Magnetic |
|
2019 |
|
50,000 |
|
— |
|
Time Charter (6) |
|
MR |
|
Yes |
|
61 |
STI Millennia |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
62 |
STI Magister |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
63 |
STI Mythic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
64 |
STI Marshall |
|
2019 |
|
50,000 |
|
— |
|
Time Charter (7) |
|
MR |
|
Yes |
|
65 |
STI Modest |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
66 |
STI Maverick |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
67 |
STI Miracle |
|
2020 |
|
50,000 |
|
— |
|
Time Charter (8) |
|
MR |
|
Yes |
|
68 |
STI Maestro |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
69 |
STI Mighty |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
70 |
STI Maximus |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
71 |
STI Elysees |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
72 |
STI Madison |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
73 |
STI Park |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
74 |
STI Orchard |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
75 |
STI Sloane |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
76 |
STI Broadway |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
77 |
STI Condotti |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
78 |
STI Rose |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
79 |
STI Veneto |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
80 |
STI Alexis |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
81 |
STI Winnie |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
82 |
STI Oxford |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
83 |
STI Lauren |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
84 |
STI Connaught |
|
2015 |
|
109,999 |
|
— |
|
Time Charter (9) |
|
LR2 |
|
Yes |
|
85 |
STI Spiga |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
86 |
STI Kingsway |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
87 |
STI Solidarity |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
88 |
STI Lombard |
|
2015 |
|
109,999 |
|
— |
|
Time Charter (10) |
|
LR2 |
|
Yes |
|
89 |
STI Grace |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (11) |
|
LR2 |
|
Yes |
|
90 |
STI Jermyn |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (12) |
|
LR2 |
|
Yes |
|
91 |
STI Sanctity |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
92 |
STI Solace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
93 |
STI Stability |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
94 |
STI Steadfast |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
95 |
STI Supreme |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
96 |
STI Symphony |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
97 |
STI Gallantry |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
98 |
STI Goal |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
99 |
STI Guard |
|
2016 |
|
113,000 |
|
— |
|
Time Charter (13) |
|
LR2 |
|
Yes |
|
100 |
STI Guide |
|
2016 |
|
113,000 |
|
— |
|
Time Charter (14) |
|
LR2 |
|
Yes |
|
101 |
STI Selatar |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
102 |
STI Rambla |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
103 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (15) |
|
LR2 |
|
Yes |
|
104 |
STI Gladiator |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (14) |
|
LR2 |
|
Yes |
|
105 |
STI Gratitude |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (16) |
|
LR2 |
|
Yes |
|
106 |
STI Lobelia |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
107 |
STI Lotus |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
108 |
STI Lily |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
109 |
STI Lavender |
|
2019 |
|
110,000 |
|
— |
|
Time Charter (17) |
|
LR2 |
|
Yes |
|
110 |
STI Beryl |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
111 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
112 |
STI Larvotto |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fleet DWT |
|
|
|
7,802,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
This vessel operates in, or is expected to operate in, the Scorpio
Handymax Tanker Pool, or SHTP. SHTP is a Scorpio Pool and is
operated by Scorpio Commercial Management S.A.M. (SCM). SHTP and
SCM are related parties to the Company. |
(2 |
) |
This vessel operates in, or is expected to operate in, the Scorpio
MR Pool, or SMRP. SMRP is a Scorpio Pool and is operated by SCM.
SMRP and SCM are related parties to the Company. |
(3 |
) |
This vessel operates in, or is expected to operate in, the Scorpio
LR2 Pool, or SLR2P. SLR2P is a Scorpio Pool and is operated by SCM.
SLR2P and SCM are related parties to the Company. |
(4 |
) |
This vessel commenced a time charter in October 2022 for three
years at an average rate of $25,000 per day. |
(5 |
) |
This vessel commenced a time charter in June 2022 for three years
at an average rate of $21,000 per day. The daily rate is the
average rate over the three-year period, which is payable during
the first six months at $30,000 per day, the next six months are
payable at $20,000 per day, and years two and three are payable at
$19,000 per day. The charterers have the option to extend the term
of this agreement for an additional year at $22,500 per day. If
this option is declared, the charterers have the option to further
extend the term of this agreement for an additional year at $24,000
per day. |
(6 |
) |
This vessel commenced a time charter in July 2022 for three years
at an average rate of $23,000 per day. The daily rate is the
average rate over the three-year period, which is payable in years
one, two, and three at $30,000 per day, $20,000 per day, and
$19,000 per day, respectively. The charterers have the option to
extend the term of this agreement for an additional year at $24,500
per day. If this option is declared, the charterers have the option
to further extend the term of this agreement for an additional year
at $26,000 per day. |
(7 |
) |
This vessel commenced a time charter in July 2022 for three years
at a rate of $23,000 per day. The charterers have the option to
extend the term of this agreement for an additional year at $24,000
per day. If this option is declared, the charterers have the option
to further extend the term of this agreement for an additional year
at $25,000 per day. If this second option is declared, the
charterers have the option to further extend the term of this
agreement for an additional year at $26,000 per day. |
(8 |
) |
This vessel commenced a time charter in August 2022 for three years
at a rate of $21,000 per day. The daily rate is the average rate
over the three-year period, which is payable during the first six
months at $30,000 per day, the next six months are payable at
$20,000 per day, and years two and three are payable at $19,000 per
day. The charterers have the option to extend the term of this
agreement for an additional year at $22,500 per day. If this option
is declared, the charterers have the option to further extend the
term of this agreement for an additional year at $24,000 per
day. |
(9 |
) |
In April 2023, STI Connaught replaced STI Goal on a time charter
which initially commenced in August 2022 for three years at a rate
of $30,000 per day. The charterers have the option to extend the
term of this agreement for an additional year at $32,000 per day.
If this option is declared, the charterers have the option to
further extend the term of this agreement for an additional year at
$34,000 per day. |
(10 |
) |
This vessel commenced a time charter in September 2022 for three
years at an average rate of $32,750 per day. The charterer has the
option to extend the term of this agreement for an additional year
at $34,750 per day. If this option is declared, the charterer has
the option to further extend the term of this agreement for an
additional year at $36,750 per day. |
(11 |
) |
This vessel commenced a time charter in December 2022 for three
years at an average rate of $37,500 per day. The daily rate is the
average rate over the three-year period, which is payable during
the first six months at $47,000 per day, the next 6 months are
payable at $28,000 per day, and years two and three are payable at
$37,500 per day. |
(12 |
) |
This vessel commenced a time charter in April 2023 for three years
at a rate of $40,000 per day. The charterer has the option to
extend the term of this agreement for an additional year at $42,500
per day. |
(13 |
) |
This vessel commenced a time charter in July 2022 for five years at
a rate of $28,000 per day. The charterers have the option to
convert the term of this agreement to three years at $30,000 per
day, which must be declared within 30 months after the delivery
date. |
(14 |
) |
This vessel commenced a time charter in July 2022 for three years
at an average rate of $28,000 per day. The charterers have the
option to extend the term of this agreement for an additional year
at $31,000 per day. If this option is declared, the charterers have
the option to further extend the term of this agreement for an
additional year at $33,000 per day. |
(15 |
) |
This vessel commenced a time charter in November 2022 for three
years at an average rate of $32,750 per day. |
(16 |
) |
This vessel commenced a time charter in May 2022 for three years at
an average rate of $28,000 per day. The charterers have the option
to extend the term of this agreement for an additional year at
$31,000 per day. If this option is declared, the charterers have
the option to further extend the term of this agreement for an
additional year at $33,000 per day. |
(17 |
) |
This vessel commenced a time charter in December 2022 for three
years at an average rate of $35,000 per day. |
Dividend Policy
The declaration and payment of dividends is
subject at all times to the discretion of the Company's Board of
Directors. The timing and the amount of dividends, if any, depends
on the Company's earnings, financial condition, cash requirements
and availability, fleet renewal and expansion, restrictions in loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2022 and 2023 were as
follows:
Date paid |
Dividend per commonshare |
March 2022 |
$0.10 |
June 2022 |
$0.10 |
September 2022 |
$0.10 |
December 2022 |
$0.10 |
March 2023 |
$0.20 |
June 2023 |
$0.25 |
On August 1, 2023, the Company's Board of
Directors declared a quarterly cash dividend of $0.25 per common
share, with a payment date of September 15, 2023 to all
shareholders of record as of August 15, 2023 (the record date). As
of August 1, 2023, there were 54,493,654 common shares of the
Company outstanding.
Conflict in Ukraine
The ongoing military conflict in Ukraine has had
a significant direct and indirect impact on the trade of refined
petroleum products. This conflict has resulted in the United
States, the United Kingdom, and the European Union countries, among
other countries and jurisdictions, implementing sanctions and
executive orders against citizens, entities, and activities
connected to Russia. Some of these sanctions and executive orders
target the Russian oil sector, including a prohibition on the
import of oil from Russia to the United States or the United
Kingdom, and the European Union's recent ban on Russian crude oil
and petroleum products which took effect in December 2022 and
February 2023, respectively. The Company cannot foresee what other
sanctions or executive orders may arise that affect the trade of
petroleum products. Furthermore, the conflict and ensuing
international response has disrupted the supply of Russian oil to
the global market, and as a result, the price of oil and petroleum
products has experienced significant volatility. The Company cannot
predict what effect the higher price of oil and petroleum products
will have on demand, and it is possible that the current conflict
in Ukraine could adversely affect the Company's financial
condition, results of operations, and future performance.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns, lease finances or bareboat charters-in 112
product tankers (39 LR2 tankers, 59 MR tankers and 14 Handymax
tankers) with an average age of 7.5 years. Additional information
about the Company is available at the Company's website
www.scorpiotankers.com. Information on the Company’s website does
not constitute a part of and is not incorporated by reference into
this press release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS
Financial Information
This press release describes time charter
equivalent revenue, or TCE revenue, adjusted net income or loss,
and adjusted EBITDA, which are not measures prepared in accordance
with IFRS ("Non-IFRS" measures). The Non-IFRS measures are
presented in this press release as we believe that they provide
investors and other users of our financial statements, such as our
lenders, with a means of evaluating and understanding how the
Company's management evaluates the Company's operating performance.
These Non-IFRS measures should not be considered in isolation from,
as substitutes for, or superior to financial measures prepared in
accordance with IFRS.
The Company believes that the presentation of
TCE revenue, adjusted net income or loss with adjusted earnings or
loss per share, basic and diluted, and adjusted EBITDA are useful
to investors or other users of our financial statements, such as
our lenders, because they facilitate the comparability and the
evaluation of companies in the Company’s industry. In addition, the
Company believes that TCE revenue, adjusted net income or loss with
adjusted earnings or loss per share, basic and diluted, and
adjusted EBITDA are useful in evaluating its operating performance
compared to that of other companies in the Company’s industry. The
Company’s definitions of TCE revenue, adjusted net income or loss
with adjusted earnings or loss per share, basic and diluted, and
adjusted EBITDA may not be the same as reported by other companies
in the shipping industry or other industries.
TCE revenue, on a historical basis, is
reconciled above in the section entitled "Explanation of Variances
on the Second Quarter of 2023 Financial Results Compared to the
Second Quarter of 2022". The Company has not provided a
reconciliation of forward-looking TCE revenue because the most
directly comparable IFRS measure on a forward-looking basis is not
available to the Company without unreasonable effort.
Reconciliation of Net Income to Adjusted Net
Income
|
|
|
For the three months ended June 30, 2023 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
132,403 |
|
$ |
2.50 |
|
$ |
2.40 |
|
|
Adjustment: |
|
|
|
|
|
|
|
|
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
939 |
|
|
0.02 |
|
|
0.02 |
|
|
Adjusted net income |
|
$ |
133,342 |
|
$ |
2.51 |
(1) |
$ |
2.41 |
(1) |
|
|
|
For the three months ended June 30, 2022 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
191,131 |
|
|
$ |
3.44 |
|
|
$ |
3.06 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Loss on sales of vessels |
|
|
1,480 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
|
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
3,929 |
|
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
|
Gain on repurchase of Convertible Notes |
|
|
(412 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
Adjusted net income |
|
$ |
196,128 |
|
|
$ |
3.53 |
|
|
$ |
3.13 |
|
|
|
|
|
For the six months ended June 30, 2023 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
325,638 |
|
$ |
5.93 |
|
$ |
5.69 |
|
|
Adjustment: |
|
|
|
|
|
|
|
|
Write-offs of deferred
financing fees and debt extinguishment costs |
|
|
3,254 |
|
|
0.06 |
|
|
0.06 |
|
|
Adjusted net income |
|
$ |
328,892 |
|
$ |
5.99 |
|
$ |
5.75 |
|
|
|
|
For the six months ended June 30, 2022 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
106,683 |
|
|
$ |
1.92 |
|
|
$ |
1.84 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Loss on sales of vessels |
|
|
69,218 |
|
|
$ |
1.25 |
|
|
$ |
1.07 |
|
|
|
Write-offs of deferred
financing fees and debt extinguishment costs |
|
|
5,784 |
|
|
$ |
0.10 |
|
|
$ |
0.09 |
|
|
|
Gain on repurchase of
Convertible Notes |
|
$ |
(412 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
Adjusted net income |
|
$ |
181,273 |
|
|
$ |
3.27 |
|
(1) |
$ |
2.99 |
|
|
(1) Summation difference due to rounding
Reconciliation of Net Income to Adjusted
EBITDA
|
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
In thousands of
U.S. dollars |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net Income |
|
$ |
132,403 |
|
|
$ |
191,131 |
|
|
$ |
325,638 |
|
|
$ |
106,683 |
|
|
Financial expenses |
|
|
43,720 |
|
|
|
40,709 |
|
|
|
87,252 |
|
|
|
78,710 |
|
|
Financial income |
|
|
(4,359 |
) |
|
|
(836 |
) |
|
|
(8,544 |
) |
|
|
(1,024 |
) |
|
Depreciation - owned or lease financed vessels |
|
|
42,197 |
|
|
|
41,051 |
|
|
|
82,688 |
|
|
|
85,159 |
|
|
Depreciation - right of use assets |
|
|
8,513 |
|
|
|
9,768 |
|
|
|
18,003 |
|
|
|
19,488 |
|
|
Amortization of restricted stock |
|
|
12,753 |
|
|
|
6,182 |
|
|
|
16,574 |
|
|
|
10,676 |
|
|
Net loss on sales of vessels |
|
|
— |
|
|
|
1,480 |
|
|
|
— |
|
|
|
69,218 |
|
|
Adjusted EBITDA |
|
$ |
235,227 |
|
|
$ |
289,485 |
|
|
$ |
521,611 |
|
|
$ |
368,910 |
|
Forward-Looking Statements
Matters discussed in this press release may
constitute forward‐looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward‐looking statements in order to encourage companies to
provide prospective information about their business.
Forward‐looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "target," "project," "likely," "may," "will," "would,"
"could" and similar expressions identify forward‐looking
statements.
The forward‐looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although management believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or
projections. The Company undertakes no obligation, and specifically
declines any obligation, except as required by law, to publicly
update or revise any forward‐looking statements, whether as a
result of new information, future events or otherwise.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward‐looking statements include unforeseen liabilities, future
capital expenditures, revenues, expenses, earnings, synergies,
economic performance, indebtedness, financial condition, losses,
future prospects, business and management strategies for the
continuing impacts of the novel coronavirus (COVID-19) pandemic,
including its effect on demand for petroleum products and the
transportation thereof, expansion and growth of the Company’s
operations, risks relating to the integration of assets or
operations of entities that it has or may in the future acquire and
the possibility that the anticipated synergies and other benefits
of such acquisitions may not be realized within expected timeframes
or at all, the failure of counterparties to fully perform their
contracts with the Company, the strength of world economies and
currencies, general market conditions, including fluctuations in
charter rates and vessel values, changes in demand for tanker
vessel capacity, changes in the Company’s operating expenses,
including bunker prices, drydocking and insurance costs, the market
for the Company’s vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political
conditions, including the impact of the conflict in Ukraine,
potential disruption of shipping routes due to accidents or
political events, vessels breakdowns and instances of off‐hires,
and other factors. Please see the Company's filings with the SEC
for a more complete discussion of certain of these and other risks
and uncertainties.
Contact Information
Scorpio Tankers Inc.James Doyle - Head of
Corporate Development & Investor RelationsTel: +1
646-432-1678Email: investor.relations@scorpiotankers.com
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