Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the
“Company”) announces updates on fourth quarter of 2023 Daily TCE
Revenues and recent debt and lease activity.
Fourth Quarter of 2023 Daily Time
Charter Equivalent (“TCE”) Revenues
Below is a summary of the estimated average
daily Time Charter Equivalent (“TCE”) revenue 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 fourth
quarter of 2023 as of the date hereof:
|
Pool and Spot Market |
|
Time Charters Out of the Pool |
Vessel
class |
Average DailyTCE Revenue
(1) |
ExpectedRevenue Days
(2) |
% of Days |
|
Average DailyTCE Revenue
(1) |
ExpectedRevenue Days
(2) |
% of Days |
LR2 |
$ |
38,000 |
2,550 |
92 |
% |
|
$ |
30,750 |
910 |
100 |
% |
MR |
$ |
32,500 |
4,850 |
87 |
% |
|
$ |
21,800 |
450 |
100 |
% |
Handymax |
$ |
30,000 |
1,250 |
84 |
% |
|
N/A |
N/A |
N/A |
(1) |
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 charters, time charters,
and pool charters), and it provides useful information to investors
and management. |
|
|
(2) |
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. We
use revenue days to show changes in net vessel revenues between
periods. |
Debt and Lease Activity
Subsequent to debt and lease activity announced
in our Earnings Press Release on November 9th, the Company has
recently committed to repaying the debt or lease financing
obligations on 13 vessels consisting of:
-
Three 2013 built MR product tankers (STI Beryl, STI Le Rocher, and
STI Larvotto) that are currently financed as part of the IFRS 16 -
Leases - 3 MR lease financing. The purchases are expected to occur
in December 2023 for an aggregate amount of $29.1 million.
-
Four 2012 built MR product tankers (STI Ruby, STI Topaz, STI
Garnet, and STI Onyx) that are currently financed as part of the
BCFL Lease Financing (MRs). The purchases are expected to occur in
December 2023 and January 2024 for an aggregate amount of $29.0
million.
-
Three 2014 built Handymax product tankers (STI Acton, STI Camden,
and STI Clapham) that are currently financed as part of the
Prudential Credit Facility. These repayments are expected to occur
in January 2024 for $33.7 million.
-
Three 2015 built MR product tankers (STI Pontiac, STI Notting Hill
and STI Black Hawk) that are currently financed as part of the 2021
TSFL Lease Financing. The purchases are expected to occur in March
2024 for an aggregate amount of $45.6 million.
Emanuele Lauro, Chairman and Chief Executive
Officer, commented “The product tanker market remains strong, MR
rates have led the way and we are seeing an improvement in LR2
rates as winter demand increases and Middle East refinery
maintenance concludes. Our balance sheet continues to improve and
the commitments to repay the debt or lease financing obligations on
13 vessels reflect our commitment to lowering leverage and
borrowing costs.”
Outstanding Debt
The table below summarizes the Company's
outstanding indebtedness as of the dates presented and pro-forma
for previously announced debt and lease repayments and drawdowns
which have been committed but are pending closing:
In millions |
September 30, 2023 |
November 8, 2023 |
December 12, 2023 |
December 12, 2023 pro-forma* |
Gross debt outstanding |
$ |
1,795,695 |
|
$ |
1,830,140 |
|
$ |
1,784,656 |
|
$ |
1,534,279 |
Cash & cash
equivalents |
|
364,908 |
|
|
521,176 |
|
|
558,363 |
|
|
307,986 |
Net debt |
$ |
1,430,787 |
|
$ |
1,308,964 |
|
$ |
1,226,293 |
|
$ |
1,226,293 |
* |
Amounts reflect the balances as of December 12, 2023, adjusted for
previously announced debt and lease repayments and debt drawdowns
which are expected to occur in December 2023 and the first quarter
of 2024. |
There is currently $288.2 million available
under the revolving portion of the 2023 $1.0 Billion Credit
Facility.
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 111
product tankers (39 LR2 tankers, 58 MR tankers and 14 Handymax
tankers) with an average age of 7.9 years. Additional information
about the Company is available at the Company’s website
www.scorpiotankers.com, which is not a part of this press
release.
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
in response to epidemic and other public health
concerns including any 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 and the
developments in the Middle East, including the armed conflict in
Israel and Gaza, 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
Relations
Tel: +1 646-432-1678
Email: investor.relations@scorpiotankers.com
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