Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three and six months
ended June 30, 2024. The Company also announced that its board of
directors (the "Board of Directors") has declared a quarterly cash
dividend on its common shares of $0.40 per share.
Results for the three
months ended June 30, 2024 and
2023
For the three months ended June 30, 2024, the
Company had net income of $227.3 million, or $4.54 basic
and $4.34 diluted earnings per share.
For the three months ended June 30, 2024, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $188.4 million, or $3.77 basic and $3.60 diluted earnings
per share, which excludes from net income a $43.3 million, or $0.87
per basic and $0.83 per diluted share, gain on sales of vessels and
a $4.4 million, or $0.09 per basic and $0.08 per diluted share,
write-off or acceleration of the amortization of deferred financing
fees related to unscheduled debt and lease payments and debt
extinguishment costs on certain lease financing obligations.
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.
Results for the six
months ended June 30, 2024 and
2023
For the six months ended June 30, 2024, the
Company had net income of $441.5 million, or $8.84 basic and
$8.45 diluted earnings per share.
For the six months ended June 30, 2024, the
Company had adjusted net income (see Non-IFRS Measures section
below) of $394.9 million, or $7.90 basic and $7.56 diluted earnings
per share, which excludes from net income a $54.7 million, or $1.09
per basic and $1.05 per diluted share, gain on sales of vessels and
a $8.1 million, or $0.16 per basic and $0.15 per diluted share,
write-off or acceleration of the amortization of deferred financing
fees related to unscheduled debt and lease payments and debt
extinguishment costs on certain lease financing obligations.
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.
Declaration of Dividend
On July 29, 2024, the Company's Board of
Directors declared a quarterly cash dividend of $0.40 per common
share, with a payment date of September 13, 2024 to all
shareholders of record as of August 15, 2024 (the record date). As
of July 29, 2024, there were 53,175,099 common shares of the
Company outstanding.
Emanuele Lauro, Chairman and Chief Executive
Officer commented, "The Company’s balance sheet and cash flow
generation potential continue to improve. In the second quarter, we
repaid $399 million of debt and reduced our daily cash break evens
to $12,500. Additionally, we've agreed to convert our 2023 $225.0
million Credit Facility to a revolving credit facility and
committed to prepaying our $64 million credit facility with BNP
Paribas and Sinosure. These initiatives could potentially reduce
our daily cash break-even rates by over $1,000."
Summary of Second Quarter 2024 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 2024 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 DailyTCE Revenue |
Expected RevenueDays (1) |
% of Days |
|
Average DailyTCE Revenue |
Expected RevenueDays (1) |
% of Days |
|
LR2 |
$ |
44,000 |
2,550 |
43 |
% |
|
$ |
30,750 |
910 |
100 |
% |
|
MR |
$ |
34,000 |
4,050 |
35 |
% |
|
$ |
21,750 |
430 |
100 |
% |
|
Handymax |
$ |
25,000 |
1,120 |
29 |
% |
|
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 2024:
| |
Average Daily TCE Revenue |
|
Vessel class |
Pool / Spot |
Time Charters |
|
LR2 |
$ |
52,807 |
$ |
30,884 |
|
MR |
$ |
37,019 |
$ |
21,884 |
|
Handymax |
$ |
28,011 |
N/A |
|
|
|
|
|
-
On July 29, 2024, the Company’s Board of Directors replenished and
increased the 2023 Securities Repurchase Program to purchase up to
an aggregate of $400 million of the Company’s securities which, in
addition to its common shares also consist of its Senior Unsecured
Notes Due 2025 (NYSE: SBBA).
-
In July 2024, the Company reached an agreement with the lenders on
its 2023 $225.0 Million Credit Facility to convert the $174.2
million outstanding balance remaining on this facility from a term
loan to a revolving credit facility. This amendment is expected to
give the Company the flexibility to make unscheduled repayments
that can be re-drawn in the future subject to a quarterly
amortization profile. This amendment is subject to the execution of
definitive documentation and is expected to close in the third
quarter of 2024.
-
In July 2024, the Company submitted notice to repay the outstanding
balance on its BNPP Sinosure Credit Facility. The outstanding
balance on this facility is $64.2 million and the facility
currently bears interest at SOFR plus a blended margin (between the
Commercial and Sinosure facilities) of 2.91% per annum. This
prepayment is expected to occur in September 2024.
-
In June 2024, the Company made an unscheduled prepayment on its
2023 $1.0 Billion Credit Facility of $223.6 million which was
applied against the eight quarterly principal payments of the term
loan falling due between the third quarter of 2024 and second
quarter of 2026.
-
During June and July 2024, the Company repurchased an aggregate of
1,397,966 of its common shares in the open market at an average
price of $78.16 per share.
-
During the second quarter of 2024, the Company entered into
agreements to sell five MR product tankers (four 2012 built and one
2013 built). The 2012 built vessels (three of which are scrubber
fitted), STI Garnet, STI Onyx, STI Ruby, and STI Topaz, were
contracted to be sold for $142.5 million in aggregate to three
separate buyers. The 2013 built vessel, STI Beryl (which is not
scrubber fitted), was contracted to be sold for $36.6 million. The
Company will make no debt repayments associated with these sales as
these vessels are unencumbered. The sale of STI Garnet closed in
July 2024 and the remaining vessel sales are expected to close
within the third quarter of 2024.
-
In July 2024, the Company closed the previously announced sale of
its 2015 built MR product tanker, STI Manhattan, for $40.8 million.
There was no debt repayment as a result of this sale as this vessel
was replaced by one of its unencumbered vessels, STI Notting Hill,
as collateral on the 2023 $1.0 Billion Credit Facility.
-
In April and May 2024, the Company closed the previously announced
sales of its 2013 built MR product tankers, STI Larvotto and STI Le
Rocher, respectively, for $36.15 million each. There was no debt
repayment as a result of these sales as these vessels are
unencumbered.
-
From April 1, 2024 through the date of this press release, the
Company made $341.8 million in previously announced unscheduled
debt and lease repayments.
Securities Repurchase
Program
From April 1, 2024 through July 29, 2024,
the Company repurchased 1,397,966 of its common shares in the open
market at an average price of $78.16 per share under the 2023
Securities Repurchase Program.
On July 29, 2024, the Company’s Board of
Directors replenished and increased the 2023 Securities Repurchase
Program to purchase up to an aggregate of $400 million of the
Company’s securities which, in addition to its common shares also
consist of its Senior Unsecured Notes Due 2025 (NYSE: SBBA). This
program resets the program that was previously replenished on
November 9, 2023.
There is $400 million available under the 2023
Securities Repurchase Program as of July 29, 2024.
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,
2024, the Company’s basic weighted average number of shares
outstanding were 50,024,615 and 49,964,944, respectively. For the
three and six months ended June 30, 2024, the Company’s diluted
weighted average number of shares outstanding were 52,354,175 and
52,237,114, respectively, which included the potentially dilutive
impact of restricted shares issued under the Company’s equity
incentive plan.
Conference Call
Title: Scorpio Tankers Inc. Second Quarter 2024
Conference Call
Date: Tuesday, July 30, 2024
Time: 9:00 AM Eastern Daylight Time and 3:00 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/uc4pks7s
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.
Current Liquidity
As of July 29, 2024, the Company had $279.5
million in unrestricted cash and cash equivalents and $288.2
million of availability under the revolving portion of the 2023
$1.0 Billion Credit Facility. Within the next two weeks, the
Company is expected to receive approximately $90 million from the
Scorpio pools with respect to the monthly cash distribution for
July 2024.
Debt
The following table sets forth the unscheduled
debt and lease repayments that the Company completed during the
second quarter of 2024.
|
Facility |
Repaymentdate |
Principalbalance repaid(in millions) |
|
Vessels |
|
2021 CMBFL Lease Financing |
Apr-24 |
$ |
15.8 |
|
|
STI Westminster |
|
2022 AVIC Lease Financing |
May-24 |
|
39.6 |
|
|
STI Gramercy and STI Queens |
|
2022 AVIC Lease Financing |
Jun-24 |
|
62.8 |
|
|
STI Oxford and STI Selatar |
|
2023 $1.0 Billion Credit Facility |
Jun-24 |
|
223.6 |
|
(1) |
|
|
Total unscheduled repayments - Q2 2024 |
$ |
341.8 |
|
|
|
| |
|
|
|
|
|
(1) The amount represents the prepayment of eight
quarters of term loan amortization. The next quarterly amortization
payment will be due in the third quarter of 2026. |
|
|
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 |
OutstandingPrincipal as ofMarch 31, 2024 |
OutstandingPrincipal as ofJune 30, 2024 |
OutstandingPrincipal as ofJuly 29, 2024 |
|
1 |
BNPP Sinosure Credit Facility (1) |
$ |
69,667 |
$ |
64,212 |
$ |
64,212 |
|
2 |
2023 $225.0 Million Credit Facility (2) |
|
191,100 |
|
182,625 |
|
174,150 |
|
3 |
2023 $49.1 Million Credit Facility |
|
44,472 |
|
43,318 |
|
43,318 |
|
4 |
2023 $117.4 Million Credit Facility |
|
104,638 |
|
100,386 |
|
100,386 |
|
5 |
2023 $1.0 Billion Credit Facility (3) |
|
630,838 |
|
374,128 |
|
374,128 |
|
6 |
2023 $94.0 Million Credit Facility |
|
90,491 |
|
88,075 |
|
86,751 |
|
7 |
Ocean Yield Lease Financing |
|
24,624 |
|
23,871 |
|
23,610 |
|
8 |
2021 CMBFL Lease Financing (3) |
|
15,795 |
|
— |
|
— |
|
9 |
2021 Ocean Yield Lease Financing |
|
56,624 |
|
55,166 |
|
54,669 |
|
10 |
2022 AVIC Lease Financing (3) |
|
102,344 |
|
— |
|
— |
|
11 |
Unsecured Senior Notes Due 2025 |
|
70,571 |
|
70,571 |
|
70,571 |
| |
Gross debt outstanding |
|
1,401,164 |
|
1,002,352 |
|
991,795 |
| |
Cash and cash equivalents |
|
369,504 |
|
224,649 |
279,545 |
| |
Net debt |
$ |
1,031,660 |
$ |
777,703 |
$ |
712,250 |
| |
|
|
|
|
|
|
(1) In July 2024, the Company
submitted notice to repay the outstanding balance on its BNPP
Sinosure Credit Facility. The outstanding balance on this facility
is $64.2 million and the facility currently bears interest at SOFR
plus a blended margin, (between the Commercial and Sinosure
facilities) of 2.91% per annum which includes the credit adjustment
spread that was agreed to upon the transition from LIBOR to SOFR.
This facility is currently collateralized by five vessels (three
LR2s and two Handymax). The prepayment is expected to occur in
September 2024.
(2) In July 2024, the Company
reached an agreement with the lenders on its 2023 $225.0 Million
Credit Facility to convert this credit facility from a term loan to
a revolving credit facility. This amendment gives the Company the
flexibility to make unscheduled repayments on this facility that
can be re-drawn in the future. There is currently $174.2 million
outstanding on this facility and under the proposed amendment, the
outstanding and/or availability of the revolving credit facility is
expected to amortize quarterly. This amendment is subject to the
execution of definitive documentation and is expected to close in
the third quarter of 2024.
(3) Refer to the preceding table for
a description of unscheduled payment activity that has recently
occurred.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of June 30, 2024, which includes principal amounts
due under the Company's secured credit facilities, lease financing
arrangements and Senior Notes Due 2025 (which also include actual
scheduled payments made from July 1, 2024 through July 29,
2024):
| |
|
|
|
|
|
|
In millions of U.S. dollars |
|
Repayments/maturities ofunsecured debt |
Vesselfinancings -maturities in2024 and 2025 |
Vesselfinancings -scheduledrepayments, inaddition
tomaturities in2026 andthereafter |
Total (1) |
Prepayment ofBNPP SinosureCredit
Facility(3) |
Pro-formarepaymentsafterprepayment ofBNPP SinosureCredit
Facility |
|
July 1, 2024 to July 29, 2024 |
|
$ |
— |
|
$ |
— |
|
$ |
10.6 |
|
$ |
10.6 |
|
$ |
— |
|
$ |
10.6 |
|
|
Remaining Q3 2024 |
|
|
— |
|
|
— |
|
|
8.0 |
|
|
8.0 |
|
|
64.2 |
|
|
72.2 |
|
|
Q4 2024 |
|
|
— |
|
|
— |
|
|
24.0 |
|
|
24.0 |
|
|
(5.5 |
) |
|
18.5 |
|
|
Q1 2025 |
|
|
— |
|
|
— |
|
|
18.5 |
|
|
18.5 |
|
|
— |
|
|
18.5 |
|
|
Q2 2025 |
|
|
70.6 |
|
|
— |
|
|
17.9 |
|
|
88.5 |
|
|
(3.3 |
) |
|
85.2 |
|
|
Q3 2025 |
|
|
— |
|
|
— |
|
|
14.6 |
|
|
14.6 |
|
|
— |
|
|
14.6 |
|
|
Q4 2025 (2) |
|
|
— |
|
|
55.4 |
|
|
14.7 |
|
|
70.1 |
|
|
(55.4 |
) |
|
14.7 |
|
|
2026 and thereafter |
|
|
— |
|
|
— |
|
|
768.1 |
|
|
768.1 |
|
|
— |
|
|
768.1 |
|
| |
|
$ |
70.6 |
|
$ |
55.4 |
|
$ |
876.4 |
|
$ |
1,002.4 |
|
$ |
— |
|
$ |
1,002.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of June
30, 2024.
(2) Includes the original scheduled
maturity payment of $55.4 million on the BNPP Sinosure Credit
Facility.
(3) Reflects the July 2024 notice to
prepay the BNPP Sinosure Credit Facility that is expected to occur
before the end of the third quarter of 2024.
Drydock Update
Set forth below is a table summarizing the
drydock activity that occurred during the second quarter of 2024
and the estimated expected payments to be made, and off-hire days
that are expected to be incurred, for the Company's drydocks
through 2024 and 2025:
| |
|
|
Number of (3) |
|
|
Aggregate costsin millions ofUSD (1) |
Aggregate off-hire days (2) |
LR2s |
MRs |
Handymax |
|
Q2 2024 - actual |
13.3 |
160 |
0 |
7 |
3 |
|
Q3 2024 - estimated |
40.4 |
425 |
4 |
9 |
6 |
|
Q4 2024 - estimated |
25.1 |
362 |
4 |
8 |
5 |
|
FY 2025 - estimated |
29.4 |
420 |
10 |
11 |
0 |
|
|
|
|
|
|
|
(1) These costs include estimated
cash payments for drydocks. These amounts may include costs
incurred for previous projects for which payments may not be due
until subsequent quarters, or payments that are due in advance of
the scheduled service and may be scheduled to occur in quarters
prior to the actual drydocks. The timing of the payments set forth
are estimates only and may vary as the timing of the related
drydocks finalize.
(2) Represents the total estimated
off-hire days during the period for drydockings or major repairs,
including vessels that commenced work in a previous period.
(3) Represents the number of vessels
scheduled to commence drydock. It does not include vessels that
commenced work in prior periods but will be completed in the
subsequent period. Additionally, the timing set forth in these
tables may vary as drydock times are finalized.
Explanation of Variances on the Second
Quarter of 2024 Financial Results Compared to the Second Quarter of
2023
For the three months ended June 30, 2024, the
Company recorded net income of $227.3 million compared to net
income of $132.4 million for the three months ended June 30, 2023.
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, 2024, and 2023:
| |
|
|
For the three months ended June 30, |
|
In thousands of U.S. dollars |
|
|
2024 |
|
|
|
2023 |
|
|
|
Vessel revenue |
|
$ |
380,660 |
|
|
$ |
329,299 |
|
| |
Voyage expenses |
|
|
(7,187 |
) |
|
|
(1,744 |
) |
| |
TCE revenue |
|
$ |
373,473 |
|
|
$ |
327,555 |
|
| |
|
|
|
|
|
|
|
|
|
-
TCE revenue for the three months ended June 30, 2024 increased by
$45.9 million to $373.5 million, from $327.6 million for the three
months ended June 30, 2023. Overall, the average daily TCE revenue
increased to $38,813 per vessel during the three months ended June
30, 2024, from $32,154 per vessel during the three months ended
June 30, 2023. The average number of vessels was 108.7 during the
three months ended June 30, 2024 as compared to 113.0 during the
three months ended June 30, 2023.
-
TCE revenue for the three months ended June 30, 2024 remained
robust as the cyclical strength in the product tanker market,
combined with the ton mile expansion triggered by recent
geopolitical events, resulted in an increase in daily spot TCE
rates across all of the Company’s vessel classes. Daily spot TCE
rates for the Company's LR2 vessels benefited from strong global
distillate demand and increasing ton miles as vessels continue to
be re-routed around the Cape of Good Hope due to conditions in the
Red Sea. Daily spot TCE rates on the Company’s Handymax and MR
vessel classes saw a modest spill-over effect from the conditions
in the Red Sea, with their performance primarily driven by
seasonally high refinery utilization and export volumes, reflecting
a year-over-year increase in the demand for refined petroleum
products.
-
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, 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, and growing underlying
consumption for refined petroleum products.
- Vessel operating costs for the
three months ended June 30, 2024, increased by $0.4 million to
$79.3 million, from $78.9 million for the three months ended June
30, 2023. Overall, the average daily vessel operating costs
increased to $8,017 per vessel for the three months ended June 30,
2024 from $7,669 per vessel for the three months ended June 30,
2023. The increase is concentrated within the LR2 segment which has
been driven by higher repairs and maintenance costs, coupled with
disruptions in trading patterns that have impacted the costs of
sourcing and transporting spare parts.
-
Depreciation expense – owned or sale leaseback vessels for the
three months ended June 30, 2024, increased by $4.5 million to
$46.7 million, from $42.2 million for the three months ended June
30, 2023. This increase was attributable to the exercise of
purchase options on 21 lease financed vessels, which were
previously accounted for under IFRS 16 – Leases throughout 2023 as
reflected by the $8.5 million decrease in Depreciation expense -
right of use assets for the three months ended June 30, 2024. The
carrying values of these repurchased vessels were reclassified to
Vessels and drydock from Right of use assets for vessels on the
Company's balance sheet and depreciation expense is recorded as a
part of owned vessels as of the dates of each purchase. The
combined decrease in depreciation expense of $4.0 million was due
to the ten vessels that were either classified as held for sale or
sold since June 30, 2023.
-
General and administrative expenses for the three months ended June
30, 2024, increased by $9.9 million to $37.1 million, from $27.2
million for the three months ended June 30, 2023 due to an increase
in non-cash restricted stock amortization resulting primarily from
grants made in the second quarter of 2024. The stock
price on the dates of the grants is used as the fair value for the
accounting of the awards under IFRS. 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, 2024
decreased by $10.4 million to $33.3 million, from $43.7 million for
the three months ended June 30, 2023. This decrease was primarily
attributable to the overall reduction in interest expense on debt
and sale leaseback arrangements due to the Company's focus on
deleveraging. The Company's average indebtedness decreased to $1.3
billion during the three months ended June 30, 2024, as compared to
$2.0 billion during the three months ended June 30, 2023.
Additionally:
-
The Company recorded $4.4 million of debt extinguishment related
costs during the three months ended June 30, 2024, as compared to
$0.9 million during the three months ended June 30, 2023; and
-
The amortization of deferred financing fees and accretion increased
to $2.7 million during the three months ended June 30, 2024, as
compared to $1.7 million during the three months ended June 30,
2023, primarily due to the entrance into new credit facilities
during 2023.
| |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed 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 |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
380,660 |
|
|
$ |
329,299 |
|
|
$ |
771,996 |
|
|
$ |
713,730 |
|
| |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
| |
Vessel operating costs |
|
(79,267 |
) |
|
|
(78,858 |
) |
|
|
(157,392 |
) |
|
|
(152,532 |
) |
| |
Voyage expenses |
|
(7,187 |
) |
|
|
(1,744 |
) |
|
|
(8,762 |
) |
|
|
(9,013 |
) |
| |
Depreciation - owned or sale leaseback vessels |
|
(46,677 |
) |
|
|
(42,197 |
) |
|
|
(94,587 |
) |
|
|
(82,688 |
) |
| |
Depreciation - right of use assets |
|
— |
|
|
|
(8,513 |
) |
|
|
— |
|
|
|
(18,003 |
) |
| |
General and administrative expenses |
|
(37,108 |
) |
|
|
(27,209 |
) |
|
|
(67,197 |
) |
|
|
(49,480 |
) |
| |
Gain on sales of vessels |
|
43,325 |
|
|
|
— |
|
|
|
54,655 |
|
|
|
— |
|
| |
Total operating expenses |
|
(126,914 |
) |
|
|
(158,521 |
) |
|
|
(273,283 |
) |
|
|
(311,716 |
) |
|
Operating income |
|
253,746 |
|
|
|
170,778 |
|
|
|
498,713 |
|
|
|
402,014 |
|
|
Other (expenses) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
|
(33,327 |
) |
|
|
(43,720 |
) |
|
|
(70,321 |
) |
|
|
(87,252 |
) |
| |
Financial income |
|
5,528 |
|
|
|
4,359 |
|
|
|
10,118 |
|
|
|
8,544 |
|
| |
Share of income from dual fuel tanker joint venture |
|
1,327 |
|
|
|
954 |
|
|
|
2,846 |
|
|
|
2,395 |
|
| |
Other income and (expenses), net |
|
47 |
|
|
|
32 |
|
|
|
156 |
|
|
|
(63 |
) |
| |
Total other expense, net |
|
(26,425 |
) |
|
|
(38,375 |
) |
|
|
(57,201 |
) |
|
|
(76,376 |
) |
|
Net income |
$ |
227,321 |
|
|
$ |
132,403 |
|
|
$ |
441,512 |
|
|
$ |
325,638 |
|
| |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
4.54 |
|
|
$ |
2.50 |
|
|
$ |
8.84 |
|
|
$ |
5.93 |
|
| |
Diluted |
$ |
4.34 |
|
|
$ |
2.40 |
|
|
$ |
8.45 |
|
|
$ |
5.69 |
|
| |
Basic weighted average shares outstanding |
|
50,024,615 |
|
|
|
53,040,031 |
|
|
|
49,964,944 |
|
|
|
54,926,939 |
|
| |
Diluted weighted average shares outstanding (1) |
|
52,354,175 |
|
|
|
55,228,080 |
|
|
|
52,237,114 |
|
|
|
57,186,103 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The computation of diluted
earnings per share for the three and six months ended June 30, 2024
and 2023, includes the effect of potentially dilutive unvested
shares of restricted stock.
| |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited) |
| |
| |
As of |
|
In thousands of U.S. dollars |
June 30, 2024 |
|
December 31, 2023 |
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
224,649 |
|
|
$ |
355,551 |
|
|
Accounts receivable |
|
227,725 |
|
|
|
203,500 |
|
|
Prepaid expenses and other current assets |
|
10,273 |
|
|
|
10,213 |
|
|
Inventories |
|
7,872 |
|
|
|
7,816 |
|
|
Assets held for sale |
|
146,513 |
|
|
|
— |
|
|
Total current assets |
|
617,032 |
|
|
|
577,080 |
|
|
Non-current assets |
|
|
|
|
Vessels and drydock |
|
3,311,114 |
|
|
|
3,577,935 |
|
|
Other assets |
|
63,084 |
|
|
|
65,440 |
|
|
Goodwill |
|
8,197 |
|
|
|
8,197 |
|
|
Total non-current assets |
|
3,382,395 |
|
|
|
3,651,572 |
|
|
Total assets |
$ |
3,999,427 |
|
|
$ |
4,228,652 |
|
|
Current liabilities |
|
|
|
|
Current portion of long-term debt |
$ |
138,773 |
|
|
$ |
220,965 |
|
|
Lease liability - sale and leaseback vessels |
|
8,499 |
|
|
|
206,757 |
|
|
Accounts payable |
|
13,831 |
|
|
|
10,004 |
|
|
Accrued expenses and other liabilities |
|
70,397 |
|
|
|
72,678 |
|
|
Total current liabilities |
|
231,500 |
|
|
|
510,404 |
|
|
Non-current liabilities |
|
|
|
|
Long-term debt |
|
765,871 |
|
|
|
939,188 |
|
|
Lease liability - sale and leaseback vessels |
|
69,139 |
|
|
|
221,380 |
|
|
Other long-term liabilities |
|
5,165 |
|
|
|
3,974 |
|
|
Total non-current liabilities |
|
840,175 |
|
|
|
1,164,542 |
|
|
Total liabilities |
|
1,071,675 |
|
|
|
1,674,946 |
|
|
Shareholders' equity |
|
|
|
|
Issued, authorized and fully paid-in share capital: |
|
|
|
|
Share capital |
|
760 |
|
|
|
745 |
|
|
Additional paid-in capital |
|
3,126,178 |
|
|
|
3,097,054 |
|
|
Treasury shares |
|
(1,184,951 |
) |
|
|
(1,131,225 |
) |
|
Retained earnings |
|
985,765 |
|
|
|
587,132 |
|
|
Total shareholders' equity |
|
2,927,752 |
|
|
|
2,553,706 |
|
|
Total liabilities and shareholders' equity |
$ |
3,999,427 |
|
|
$ |
4,228,652 |
|
| |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited) |
| |
| |
For the six months ended June 30, |
|
In thousands of U.S. dollars |
|
2024 |
|
|
|
2023 |
|
|
Operating activities |
|
|
|
|
Net income |
$ |
441,512 |
|
|
$ |
325,638 |
|
|
Depreciation - owned or sale leaseback vessels |
|
94,587 |
|
|
|
82,688 |
|
|
Depreciation - right of use assets |
|
— |
|
|
|
18,003 |
|
|
Equity settled share based compensation expense |
|
29,139 |
|
|
|
16,574 |
|
|
Amortization of deferred financing fees |
|
5,700 |
|
|
|
2,548 |
|
|
Non-cash debt extinguishment costs |
|
3,010 |
|
|
|
824 |
|
|
Net gain on sales of vessels |
|
(54,655 |
) |
|
|
— |
|
|
Accretion of fair value measurement on debt assumed in business
combinations |
|
41 |
|
|
|
656 |
|
|
Share of income from dual fuel tanker joint venture |
|
(2,846 |
) |
|
|
(2,395 |
) |
| |
|
516,488 |
|
|
|
444,536 |
|
|
Changes in assets and liabilities: |
|
|
|
|
(Increase) / decrease in inventories |
|
(56 |
) |
|
|
7,114 |
|
|
(Increase) / decrease in accounts receivable |
|
(22,225 |
) |
|
|
75,132 |
|
|
(Increase) /decrease in prepaid expenses and other current
assets |
|
(60 |
) |
|
|
7,492 |
|
|
Decrease in other assets |
|
1,650 |
|
|
|
918 |
|
|
Increase / (decrease) in accounts payable |
|
2,339 |
|
|
|
(16,497 |
) |
|
Decrease in accrued expenses |
|
(3,903 |
) |
|
|
(17,346 |
) |
| |
|
(22,255 |
) |
|
|
56,813 |
|
|
Net cash inflow from operating activities |
|
494,233 |
|
|
|
501,349 |
|
|
Investing activities |
|
|
|
|
Net proceeds from sales of vessels |
|
108,715 |
|
|
|
— |
|
|
Distributions from dual fuel tanker joint venture |
|
1,260 |
|
|
|
1,489 |
|
|
Investment in dual fuel tanker joint venture |
|
(1,937 |
) |
|
|
— |
|
|
Drydock, scrubber, ballast water treatment system and other vessel
related payments (owned, leased financed and bareboat-in
vessels) |
|
(23,876 |
) |
|
|
(13,545 |
) |
|
Net cash inflow / (outflow) from investing
activities |
|
84,162 |
|
|
|
(12,056 |
) |
|
Financing activities |
|
|
|
|
Debt repayments |
|
(711,490 |
) |
|
|
(260,950 |
) |
|
Issuance of debt |
|
99,000 |
|
|
|
391,482 |
|
|
Debt issuance costs |
|
(202 |
) |
|
|
(7,524 |
) |
|
Principal repayments on lease liability - IFRS 16 |
|
— |
|
|
|
(250,626 |
) |
|
Dividends paid |
|
(42,879 |
) |
|
|
(25,678 |
) |
|
Repurchase of common stock |
|
(53,726 |
) |
|
|
(398,944 |
) |
|
Net cash outflow from financing activities |
|
(709,297 |
) |
|
|
(552,240 |
) |
|
Decrease in cash and cash equivalents |
|
(130,902 |
) |
|
|
(62,947 |
) |
|
Cash and cash equivalents at January 1, |
|
355,551 |
|
|
|
376,870 |
|
|
Cash and cash equivalents at June 30, |
$ |
224,649 |
|
|
$ |
313,923 |
|
| |
|
Scorpio Tankers Inc. and SubsidiariesOther
operating data for the three and six months
ended June 30, 2024 and
2023 (unaudited) |
| |
| |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Adjusted EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
|
$ |
278,000 |
|
|
$ |
235,227 |
|
|
$ |
570,786 |
|
|
$ |
521,611 |
|
| |
|
|
|
|
|
|
|
|
|
Average Daily Results |
|
|
|
|
|
|
|
|
|
Fleet |
|
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
38,813 |
|
|
$ |
32,154 |
|
|
$ |
39,241 |
|
|
$ |
34,810 |
|
|
Vessel operating costs per day (3) |
|
$ |
8,017 |
|
|
$ |
7,669 |
|
|
$ |
7,879 |
|
|
$ |
7,458 |
|
|
Average number of vessels |
|
|
108.7 |
|
|
|
113.0 |
|
|
|
109.8 |
|
|
|
113.0 |
|
| |
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
47,156 |
|
|
$ |
39,526 |
|
|
$ |
48,906 |
|
|
$ |
41,395 |
|
|
Vessel operating costs per day (3) |
|
$ |
8,984 |
|
|
$ |
8,070 |
|
|
$ |
8,768 |
|
|
$ |
7,785 |
|
|
Average number of vessels |
|
|
39.0 |
|
|
|
39.0 |
|
|
|
39.0 |
|
|
|
39.0 |
|
| |
|
|
|
|
|
|
|
|
|
MR |
|
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
35,600 |
|
|
$ |
28,586 |
|
|
$ |
34,751 |
|
|
$ |
31,037 |
|
|
Vessel operating costs per day (3) |
|
$ |
7,492 |
|
|
$ |
7,563 |
|
|
$ |
7,430 |
|
|
$ |
7,337 |
|
|
Average number of vessels |
|
|
55.7 |
|
|
|
60.0 |
|
|
|
56.8 |
|
|
|
60.0 |
|
| |
|
|
|
|
|
|
|
|
|
Handymax |
|
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
28,011 |
|
|
$ |
26,784 |
|
|
$ |
30,245 |
|
|
$ |
32,534 |
|
|
Vessel operating costs per day (3) |
|
$ |
7,406 |
|
|
$ |
7,064 |
|
|
$ |
7,216 |
|
|
$ |
7,083 |
|
|
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) |
|
$ |
13,316 |
|
|
$ |
5,062 |
|
|
$ |
23,876 |
|
|
$ |
13,545 |
|
|
(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 July 30, 2024 |
| |
|
|
Vessel Name |
|
YearBuilt |
|
DWT |
|
Iceclass |
|
Employment |
|
Vessel type |
|
Scrubber |
| |
Owned and sale leaseback 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 Topaz |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) (7) |
|
MR |
|
Yes |
|
16 |
STI Ruby |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) (7) |
|
MR |
|
No |
|
17 |
STI Onyx |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) (7) |
|
MR |
|
Yes |
|
18 |
STI Beryl |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) (7) |
|
MR |
|
No |
|
19 |
STI Duchessa |
|
2014 |
|
49,990 |
|
— |
|
Time Charter (5) |
|
MR |
|
No |
|
20 |
STI Opera |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
No |
|
21 |
STI Texas City |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
22 |
STI Meraux |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
23 |
STI San Antonio |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
24 |
STI Venere |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
25 |
STI Virtus |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
26 |
STI Aqua |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
27 |
STI Dama |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
28 |
STI Regina |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
29 |
STI St. Charles |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
30 |
STI Mayfair |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
31 |
STI Yorkville |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
32 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
33 |
STI Battery |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
34 |
STI Soho |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
35 |
STI Memphis |
|
2014 |
|
49,990 |
|
— |
|
Time Charter (6) |
|
MR |
|
Yes |
|
36 |
STI Gramercy |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
37 |
STI Bronx |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
38 |
STI Pontiac |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
39 |
STI Queens |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
40 |
STI Osceola |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
41 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
42 |
STI Seneca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
43 |
STI Westminster |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
44 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
45 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
46 |
STI Galata |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
47 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
No |
|
48 |
STI Leblon |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
49 |
STI La Boca |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
50 |
STI San Telmo |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
No |
|
51 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
No |
|
52 |
STI Esles II |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
No |
|
53 |
STI Jardins |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
No |
|
54 |
STI Magic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
55 |
STI Mystery |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
56 |
STI Marvel |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
57 |
STI Magnetic |
|
2019 |
|
50,000 |
|
— |
|
Time Charter (8) |
|
MR |
|
Yes |
|
58 |
STI Millennia |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
59 |
STI Magister |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
60 |
STI Mythic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
61 |
STI Marshall |
|
2019 |
|
50,000 |
|
— |
|
Time Charter (9) |
|
MR |
|
Yes |
|
62 |
STI Modest |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
63 |
STI Maverick |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
64 |
STI Miracle |
|
2020 |
|
50,000 |
|
— |
|
Time Charter (10) |
|
MR |
|
Yes |
|
65 |
STI Maestro |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
66 |
STI Mighty |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
67 |
STI Maximus |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
68 |
STI Elysees |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
69 |
STI Madison |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
70 |
STI Park |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
71 |
STI Orchard |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
72 |
STI Sloane |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
73 |
STI Broadway |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
74 |
STI Condotti |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
75 |
STI Rose |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
76 |
STI Veneto |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
77 |
STI Alexis |
|
2015 |
|
109,999 |
|
— |
|
MPL (4) |
|
LR2 |
|
Yes |
|
78 |
STI Winnie |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
79 |
STI Oxford |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
80 |
STI Lauren |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
81 |
STI Connaught |
|
2015 |
|
109,999 |
|
— |
|
Time Charter (11) |
|
LR2 |
|
Yes |
|
82 |
STI Spiga |
|
2015 |
|
109,999 |
|
— |
|
MPL (4) |
|
LR2 |
|
Yes |
|
83 |
STI Kingsway |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
84 |
STI Solidarity |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
85 |
STI Lombard |
|
2015 |
|
109,999 |
|
— |
|
Time Charter (12) |
|
LR2 |
|
Yes |
|
86 |
STI Grace |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (13) |
|
LR2 |
|
Yes |
|
87 |
STI Jermyn |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (14) |
|
LR2 |
|
Yes |
|
88 |
STI Sanctity |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
89 |
STI Solace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
90 |
STI Stability |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
91 |
STI Steadfast |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
92 |
STI Supreme |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
93 |
STI Symphony |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
94 |
STI Gallantry |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
95 |
STI Goal |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
96 |
STI Guard |
|
2016 |
|
113,000 |
|
— |
|
Time Charter (15) |
|
LR2 |
|
Yes |
|
97 |
STI Guide |
|
2016 |
|
113,000 |
|
— |
|
Time Charter (16) |
|
LR2 |
|
Yes |
|
98 |
STI Selatar |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
99 |
STI Rambla |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
100 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (17) |
|
LR2 |
|
Yes |
|
101 |
STI Gladiator |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (16) |
|
LR2 |
|
Yes |
|
102 |
STI Gratitude |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (18) |
|
LR2 |
|
Yes |
|
103 |
STI Lobelia |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
104 |
STI Lotus |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
105 |
STI Lily |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (3) |
|
LR2 |
|
Yes |
|
106 |
STI Lavender |
|
2019 |
|
110,000 |
|
— |
|
Time Charter (19) |
|
LR2 |
|
Yes |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
7,502,252 |
|
|
|
|
|
|
|
|
|
(1) |
|
This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP.
SHTP is operated by Scorpio Commercial Management S.A.M. (SCM).
SHTP and SCM are related parties to the Company. |
|
(2) |
|
This vessel operates in the Scorpio MR Pool, or SMRP. SMRP is
operated by SCM. SMRP and SCM are related parties to the
Company. |
|
(3) |
|
This vessel operates in the Scorpio LR2 Pool, or SLR2P. SLR2P is
operated by SCM. SLR2P and SCM are related parties to the
Company. |
|
(4) |
|
This vessel operates in the Mercury Pool Limited, or MPL. MPL is
operated by SCM. MPL and SCM are related parties to the
Company. |
|
(5) |
|
This vessel commenced a time charter in October 2022 for three
years at an average rate of $25,000 per day. |
|
(6) |
|
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. |
|
(7) |
|
The Company has entered into an agreement to sell this vessel which
is expected to close in the third quarter of 2024. |
|
(8) |
|
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. |
|
(9) |
|
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. |
|
(10) |
|
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. |
|
(11) |
|
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. |
|
(12) |
|
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. |
|
(13) |
|
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. |
|
(14) |
|
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. |
|
(15) |
|
This vessel commenced a time charter in July 2022 for five years at
a rate of $28,000 per day. |
|
(16) |
|
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. |
|
(17) |
|
This vessel commenced a time charter in November 2022 for three
years at an average rate of $32,750 per day. |
|
(18) |
|
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. |
|
(19) |
|
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 2023 and 2024
were as follows:
|
Date paid |
Dividend per commonshare |
|
March 2023 |
$0.20 |
|
June 2023 |
$0.25 |
|
September 2023 |
$0.25 |
|
December 2023 |
$0.35 |
|
March 2024 |
$0.40 |
|
June 2024 |
$0.40 |
|
|
|
On July 29, 2024, the Company's Board of
Directors declared a quarterly cash dividend of $0.40 per common
share, with a payment date of September 13, 2024 to all
shareholders of record as of August 15, 2024 (the record date). As
of July 29, 2024, there were 53,175,099 common shares of the
Company outstanding.
Conflict in Ukraine and Middle
East
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, United Kingdom, and the European Union, among other
countries, 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 and refined petroleum
products from Russia to the United States, United Kingdom or the
European Union, and a prohibition on a variety of specified
services related to the maritime transport of Russian Federation
origin crude oil and petroleum products, including
trading/commodities brokering, financing, shipping, insurance
(including reinsurance and protection and indemnity), flagging, and
customs brokering, which took effect in December 2022 and February
2023 respectively. An exception exists to permit such services when
the price of the seaborne Russian oil does not exceed the relevant
price cap; but implementation of this price exception relies on a
recordkeeping and attestation process that requires each party in
the supply chain of seaborne Russian oil to demonstrate or confirm
that oil has been purchased at or below the price cap. 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 while thus
far the impact has been favorable, it is possible that the current
conflict in Ukraine could adversely affect the Company's financial
condition, results of operations, and future performance.
Additionally, since December 2023, there have
been multiple drone and missile attacks on commercial vessels
transiting international waters in the southern Red Sea by groups
believed to be affiliated with the Yemen-based Houthi rebel group
purportedly in response to the ongoing military conflict between
Israel and Hamas. Recent attacks on U.S. military installations in
Jordan and other locations in the middle east, the continuing
military actions by the U.S. government and certain of its allies
against the Houthi rebel group, which the U.S. government believes
to be supported by the government of Iran, and the ongoing military
conflict between Israel and Hamas continue to threaten the
political stability of the region and may lead to further military
conflicts, including continued hostile actions towards commercial
shipping in the region. We cannot predict the severity or length of
the current conditions impacting international shipping in this
region and the continuing disruption of the trade routes in the
region of the Red Sea. While thus far the impact of these events
has been favorable to the demand for our vessels, it is also
possible that it could have a material and adverse impact on our
results of operations in the future.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns or lease finances 106 product tankers (39 LR2
tankers, 53 MR tankers and 14 Handymax tankers) with an average age
of 8.4 years. The Company has entered into agreements to sell four
of its MR tankers, which are expected to close in the third quarter
of 2024. 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 2024 Financial Results Compared to the
Second Quarter of 2023". 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, 2024 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
|
In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
|
Net income |
|
$ |
227,321 |
|
|
$ |
4.54 |
|
|
$ |
4.34 |
|
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
4,380 |
|
|
|
0.09 |
|
|
|
0.08 |
|
|
| |
Gain on sales of vessels |
|
|
(43,325 |
) |
|
|
(0.87 |
) |
|
|
(0.83 |
) |
|
| |
Adjusted net income |
|
$ |
188,376 |
|
|
$ |
3.77 |
|
(1) |
$ |
3.60 |
|
(1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Summation difference
due to rounding
| |
|
|
|
|
| |
|
|
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) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Summation difference
due to rounding
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2024 |
|
|
|
|
|
|
|
Per share |
|
Per share |
|
|
In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
|
Net income |
|
$ |
441,512 |
|
|
$ |
8.84 |
|
|
$ |
8.45 |
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
8,072 |
|
|
|
0.16 |
|
|
|
0.15 |
|
|
|
|
Gain on sales of vessels |
|
|
(54,655 |
) |
|
|
(1.09 |
) |
|
|
(1.05 |
) |
|
|
|
Adjusted net income |
|
$ |
394,929 |
|
|
$ |
7.90 |
|
(1) |
$ |
7.56 |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Summation difference
due to rounding
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Net Income |
|
$ |
227,321 |
|
|
$ |
132,403 |
|
|
$ |
441,512 |
|
|
$ |
325,638 |
|
| |
Financial expenses |
|
|
33,327 |
|
|
|
43,720 |
|
|
|
70,321 |
|
|
|
87,252 |
|
| |
Financial income |
|
|
(5,528 |
) |
|
|
(4,359 |
) |
|
|
(10,118 |
) |
|
|
(8,544 |
) |
| |
Depreciation - owned or lease financed vessels |
|
|
46,677 |
|
|
|
42,197 |
|
|
|
94,587 |
|
|
|
82,688 |
|
| |
Depreciation - right of use assets |
|
|
— |
|
|
|
8,513 |
|
|
|
— |
|
|
|
18,003 |
|
| |
Equity settled share based compensation expense |
|
|
19,528 |
|
|
|
12,753 |
|
|
|
29,139 |
|
|
|
16,574 |
|
| |
Gain on sales of vessels |
|
|
(43,325 |
) |
|
|
— |
|
|
|
(54,655 |
) |
|
|
— |
|
| |
Adjusted EBITDA |
|
$ |
278,000 |
|
|
$ |
235,227 |
|
|
$ |
570,786 |
|
|
$ |
521,611 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
epidemics 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 between Israel and Hamas,
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
Grafico Azioni Scorpio Tankers (NYSE:STNG)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Scorpio Tankers (NYSE:STNG)
Storico
Da Dic 2023 a Dic 2024
