Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three and nine months
ended September 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 $0.35 per share.
Results for the three months ended
September 30, 2023 and 2022
For the three months ended September 30, 2023,
the Company had net income of $100.4 million, or
$2.01 basic and $1.93 diluted earnings per share.
For the three months ended September 30, 2023,
the Company had adjusted net income (see Non-IFRS Measures section
below) of $99.2 million, or $1.99 basic and $1.91 diluted earnings
per share, which excludes from net income (i) a $6.0 million, or
$0.12 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, and (ii) a $7.1
million, or $0.14 per basic and diluted share, gain on the sale of
a vessel.
For the three months ended September 30, 2022,
the Company had net income of $266.2 million, or $4.84 basic and
$4.31 diluted earnings per share.
For the three months ended September 30, 2022,
the Company had adjusted net income (see Non-IFRS Measures section
below) of $264.8 million, or $4.81 basic and $4.29 diluted earnings
per share, which excludes from net income (i) a $2.7 million, or
$0.05 per basic and $0.04 per diluted share, gain on the sale of a
vessel, (ii) $1.4 million, or $0.03 per basic and $0.02 per diluted
share, write-off or acceleration of the amortization of deferred
financing fees on certain debt or lease financing obligations and
related debt extinguishment costs, and (iii) $0.1 million, or $0.00
per basic and diluted share, gain recorded on the repurchase of the
Company’s Convertible Notes Due 2025.
Results for the nine months ended
September 30, 2023 and 2022
For the nine months ended September 30, 2023,
the Company had net income of $426.0 million, or
$8.00 basic and $7.68 diluted earnings per share.
For the nine months ended September 30, 2023,
the Company had adjusted net income (see Non-IFRS Measures section
below) of $428.1 million, or $8.04 basic and $7.72 diluted earnings
per share, which excludes from net income (i) a $9.3 million, or
$0.17 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, and (ii) a $7.1
million, or $0.13 per basic and diluted share, gain on the sale of
a vessel.
For the nine months ended September 30, 2022,
the Company had net income of $372.8 million, or $6.74 basic and
$6.07 diluted earnings per share.
For the nine months ended September 30, 2022,
the Company had adjusted net income (see Non-IFRS Measures section
below) of $446.0 million, or $8.06 basic and $7.21 diluted earnings
per share, which excludes from net income (i) a $66.5 million, or
$1.20 per basic and $1.04 per diluted share, aggregate net loss on
the sale of vessels, (ii) $7.1 million, or $0.13 per basic and
$0.11 per diluted share, write-off or acceleration of the
amortization of deferred financing fees on debt or lease financing
obligations and related debt extinguishment costs, and (iii) $0.5
million, or $0.01 per basic and diluted share, gain recorded on the
repurchases of the Company’s Convertible Notes due 2025.
Declaration of Dividend
On November 9, 2023, the Board of Directors
declared a quarterly cash dividend of $0.35 per common share, with
a payment date of December 15, 2023 to all shareholders of record
as of November 30, 2023 (the record date). As of November 9, 2023,
there were 53,107,765 common shares of the Company outstanding.
Summary of Third 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 fourth
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 |
$ |
40,000 |
2,550 |
50 |
% |
|
$ |
30,750 |
910 |
100 |
% |
MR |
$ |
31,000 |
4,850 |
48 |
% |
|
$ |
21,800 |
450 |
100 |
% |
Handymax |
$ |
30,000 |
1,250 |
47 |
% |
|
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 third quarter of 2023:
|
Average Daily TCE Revenue |
Vessel class |
Pool / Spot |
Time Charters |
LR2 |
$ |
29,430 |
$ |
31,089 |
MR |
$ |
29,181 |
$ |
22,192 |
Handymax |
$ |
22,875 |
N/A |
- On November 9,
2023, the Company’s Board of Directors replenished the 2023
Securities Repurchase Program to purchase up to an aggregate of
$250 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 May 31, 2023. There is $250 million available under
the 2023 Securities Repurchase Program as of November 9, 2023.
-
The Company recently entered into an agreement to sell the 2012
built MR product tanker, STI Amber, for a selling price of $33.7
million. As a result, the Company gave notice to exercise the
purchase option on this vessel on the BCFL Lease Financing (MRs),
which is expected to result in a lease liability repayment of $8.2
million. The sale of this vessel and the corresponding lease
repayment are expected to close before the end of the fourth
quarter of 2023.
-
In October 2023, the Company gave notice to exercise the purchase
options on 10 lease financed vessels consisting of (i) two Handymax
vessels and four LR2 product tankers on the 2021 $146.3 Million
Lease Financing (STI Rotherhithe, STI Hammersmith, STI Broadway,
STI Connaught, STI Lauren and STI Winnie), and (ii) three MR
product tankers and an LR2 product tanker on the 2021 AVIC Lease
Financing (STI Soho, STI Osceola, STI Memphis and STI Lombard).
These purchases are expected to take place in the fourth quarter of
2023 and first quarter of 2024 and the aggregate lease liability is
expected to be $197.9 million at the date of purchase.
-
In October 2023, the Company closed on the previously announced
exercise of purchase options on eight lease financed vessels
consisting of (i) five LR2 product tankers on the CSSC Lease
Financing (STI Gauntlet, STI Gladiator, STI Goal, STI Gratitude and
STI Guide), and (ii) an MR product tanker and two LR2 product
tankers (STI Maximus, STI Lily and STI Lotus) on the IFRS 16 -
Leases - $670.0 Million lease financing. The Company repaid the
aggregate outstanding lease liability of $195.9 million as a result
of these purchases.
-
In July 2023, the Company executed its previously announced 2023
$1.0 Billion Credit Facility. In July and August 2023, the Company
drew an aggregate of $576.4 million from this facility (split
evenly between the term loan and the revolver) to finance 26
vessels. In September 2023, the Company repaid $288.2 million on
the revolving portion of this credit facility, which may be
re-borrowed in the future. In November 2023, the Company drew down
$202.3 million from this facility (split evenly between the term
loan and the revolver) and five LR2 product tankers (STI Lotus, STI
Lily, STI Gladiator, STI Gratitude, and STI Goal) and three MR
product tankers (STI Maximus, STI Leblon and STI Bosphorus) were
placed as collateral under the facility.
-
In September 2023, the Company executed its previously announced
2023 $94.0 Million Credit Facility. Upon execution of the credit
facility, the Company drew down $43.8 million and two vessels (STI
Marshall and STI Grace) were placed as collateral under the
facility. In October 2023, the Company drew down $50.2 million and
two vessels (STI Guide and STI Gauntlet) were placed as collateral
under the facility.
-
During the third quarter of 2023, the Company closed on the
previously announced exercise of purchase options on eight MR
product tankers (STI Mighty, STI Modest, STI Maestro, STI Maverick,
STI Millennia, STI Miracle, STI Bosphorus and STI Leblon) and an
LR2 product tanker (STI Supreme) which were financed on the IFRS 16
- Leases - $670.0 Million lease financing, 2020 CMBFL Lease
Financing, and the Ocean Yield Lease Financing. These transactions
resulted in an aggregate debt reduction of $207.9 million.
-
During the third quarter of 2023, the Company completed the
previously announced debt repayments for six vessels which were
financed on the 2019 DNB / GIEK Credit Facility (STI Condotti and
STI Sloane), 2020 $225.0 Million Credit Facility (STI Kingsway and
STI Spiga) and Hamburg Commercial Credit Facility (STI Veneto and
STI Poplar). These transactions resulted in an aggregate debt
reduction of $101.3 million.
-
During the third quarter of 2023, the Company gave notice to
exercise the purchase options on nine vessels consisting of six MR
product tankers (STI Galata, STI La Boca, STI Esles II, STI Donald
C Trauscht, STI Jardins and STI San Telmo) and three LR2 product
tankers (STI Stability, STI Solace and STI Solidarity). These
vessels are currently financed on the 2020 SPDBFL Lease Financing,
2020 TSFL Lease Financing, and BCFL Lease Financing (LR2s) and the
repurchases are expected to occur in the fourth quarter of 2023 and
first quarter of 2024. This will result in a reduction of lease
liabilities of $136.0 million in the fourth quarter of 2023 and
$38.3 million in the first quarter of 2024.
-
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.
-
Since July 1, 2023 and through the date of this press release, the
Company has repurchased an aggregate of 1,889,643 of its common
shares in the open market at an average price of $48.02 per
share.
Securities Repurchase
Program
From July 1, 2023 through September 30, 2023,
the Company repurchased 1,648,355 of its common shares in the open
market at an average price of $47.74 per share under the 2023
Securities Repurchase Program.
From October 1, 2023 through November 8,
2023, the Company repurchased 241,288 of its common shares in the
open market at an average price of $49.88 per share under the 2023
Securities Repurchase Program.
On November 9, 2023, the Company’s Board of
Directors replenished the 2023 Securities Repurchase Program to
purchase up to an aggregate of $250 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 May 31,
2023.
There is $250 million available under the 2023
Securities Repurchase Program as of November 9, 2023.
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 nine months ended September
30, 2023, the Company’s basic weighted average number of shares
outstanding were 49,906,783 and 53,235,165 respectively. For the
three and nine months ended September 30, 2023, the Company’s
diluted weighted average number of shares outstanding were
51,943,617 and 55,482,321, respectively, which included the
potentially dilutive impact of restricted shares issued under the
Company's equity incentive plan.
Conference Call
On Thursday November 9, 2023, the Company plans
to issue its third quarter 2023 earnings press release in the
morning (Eastern Daylight Time) and host a conference call at 9:00
AM Eastern Standard Time and 3:00 PM Central European Time.
Title: Scorpio Tankers Inc. Third Quarter 2023 Conference
Call
Date: Thursday November 9, 2023
Time: 9:00 AM Eastern Standard Time and 3:00 PM Central European
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/suwrc98n
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 November 8, 2023, the Company had
$521.2 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.
Debt
The following table sets forth the unscheduled
debt and lease repayments that the Company has recently completed
or are pending. This table excludes the September 2023 payment of
$288.2 million into the revolving portion of the 2023 $1.0 Billion
Credit facility, which can be re-drawn in the future.
Facility |
Repayment date |
Principal balance repaid (in millions) |
|
Vessels |
Unscheduled repayments made - Q3 2023 |
|
|
|
|
IFRS 16 - Leases - $670.0 Million |
Jul-23 |
$ |
143.6 |
|
STI Miracle*, STI Maestro*, STI Mighty*, STI Modest*, STI
Maverick*, and STI Millennia* |
Ocean Yield Lease
Financing |
Aug-23 |
|
27.8 |
|
STI Supreme* |
2019 DNB / GIEK Credit
Facility |
Aug-23 |
|
34.8 |
|
STI Condotti* and STI
Sloane* |
2020 $225.0 Million Credit
Facility |
Aug-23 |
|
35.2 |
|
STI Spiga* and STI
Kingsway* |
2020 CMBFL Lease
Financing |
Sep-23 |
|
36.5 |
|
STI Leblon* and STI
Bosphorus* |
Hamburg Commercial Credit
Facility |
Sep-23 |
|
31.3 |
|
STI Veneto and STI Poplar |
Total unscheduled
repayments - Q3 2023 |
|
$ |
309.2 |
|
|
|
|
|
|
|
Unscheduled repayments made -
Q4 2023 |
|
|
|
|
CSSC Lease Financing |
Oct-23 |
|
110.4 |
|
STI Gladiator*, STI Goal*, STI
Gratitude*, STI Guide** and STI Gauntlet** |
IFRS 16 - Leases - $670.0
Million |
Oct-23 |
|
85.5 |
|
STI Maximus*, STI Lily* and
STI Lotus* |
Total unscheduled
repayments - October 1 through November 8, 2023 |
|
$ |
195.9 |
|
|
|
|
|
|
|
Purchase option notices
issued, repayment pending |
|
|
|
|
BCFL Lease Financing
(MRs) |
Nov-23 |
|
8.2 |
|
STI Amber*** |
2020 TSFL Lease Financing |
Nov-23 |
|
38.1 |
|
STI Galata and STI La
Boca |
2020 SPDBFL Lease
Financing |
Nov-23 |
|
39.5 |
|
STI Donald C Trauscht* and STI
Esles II* |
BCFL Lease Financing
(LR2s) |
Dec-23 |
|
58.4 |
|
STI Stability*, STI Solace*
and STI Solidarity* |
2021 $146.3 Million Lease
Financing |
Dec-23 |
|
120.5 |
|
STI Rotherhithe, STI
Hammersmith, STI Broadway, STI Connaught, STI Lauren and STI
Winnie |
2020 SPDBFL Lease
Financing |
Jan-24 |
|
38.3 |
|
STI Jardins* and STI San
Telmo* |
2021 AVIC Lease Financing |
Jan-24 |
|
77.4 |
|
STI Soho*, STI Osceola*, STI
Memphis and STI Lombard |
Total repayments
pending |
|
$ |
380.4 |
|
|
|
|
|
|
|
* Vessel
subsequently collateralized or is expected to be collateralized on
the 2023 $1.0 Billion Credit Facility |
** Vessel
subsequently collateralized on the 2023 $94.0 Million Credit
Facility |
*** Vessel
expected to be sold in Q4 2023 |
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 June 30, 2023 |
Outstanding Principal as of September 30,
2023 |
Outstanding Principal as of November 8, 2023 |
1 |
Hamburg Commercial Credit
Facility (1) |
$ |
32,086 |
$ |
— |
$ |
— |
2 |
Prudential Credit
Facility |
|
36,513 |
|
35,126 |
|
34,202 |
3 |
2019 DNB / GIEK Credit
Facility (1) |
|
34,781 |
|
— |
|
— |
4 |
BNPP Sinosure Credit
Facility |
|
75,121 |
|
75,121 |
|
69,667 |
5 |
2020 $225.0 Million Credit
Facility (1) |
|
35,198 |
|
— |
|
— |
6 |
2023 $225.0 Million Credit
Facility |
|
216,525 |
|
208,050 |
|
199,575 |
7 |
2023 $49.1 Million Credit
Facility |
|
47,934 |
|
46,780 |
|
46,780 |
8 |
2023 $117.4 Million Credit
Facility |
|
117,394 |
|
113,142 |
|
113,142 |
9 |
2023 $1.0 Billion Credit
Facility (2) |
|
— |
|
269,344 |
|
471,644 |
10 |
2023 $94.0 Million Credit
Facility (3) |
|
— |
|
43,750 |
|
94,000 |
11 |
Ocean Yield Lease Financing
(1) |
|
54,895 |
|
26,141 |
|
25,883 |
12 |
BCFL Lease Financing (LR2s)
(1) |
|
62,837 |
|
60,157 |
|
59,269 |
13 |
CSSC Lease Financing (1) |
|
113,994 |
|
110,353 |
|
— |
14 |
BCFL Lease Financing (MRs)
(1) |
|
45,040 |
|
40,820 |
|
39,492 |
15 |
2020 CMBFL Lease Financing
(1) |
|
36,468 |
|
— |
|
— |
16 |
2020 TSFL Lease Financing
(1) |
|
38,947 |
|
38,117 |
|
38,117 |
17 |
2020 SPDBFL Lease Financing
(1) |
|
80,264 |
|
78,640 |
|
78,640 |
18 |
2021 AVIC Lease Financing
(1) |
|
81,009 |
|
79,196 |
|
79,196 |
19 |
2021 CMBFL Lease
Financing |
|
64,785 |
|
63,155 |
|
62,750 |
20 |
2021 TSFL Lease Financing |
|
47,807 |
|
46,712 |
|
46,712 |
21 |
2021 $146.3 Million Lease
Financing (1) |
|
127,110 |
|
123,815 |
|
120,520 |
22 |
2021 Ocean Yield Lease
Financing |
|
61,032 |
|
59,557 |
|
59,060 |
23 |
2022 AVIC Lease Financing |
|
109,220 |
|
106,927 |
|
106,927 |
24 |
IFRS 16 - Leases - 3 MR |
|
16,904 |
|
14,713 |
|
13,993 |
25 |
IFRS 16 - Leases - $670.0
Million (1) |
|
231,015 |
|
85,508 |
|
— |
26 |
Unsecured Senior Notes Due
2025 |
|
70,571 |
|
70,571 |
|
70,571 |
|
Gross debt
outstanding |
|
1,837,450 |
|
1,795,695 |
|
1,830,140 |
|
Cash and cash
equivalents |
|
313,923 |
|
364,908 |
521,176 |
|
Net debt |
$ |
1,523,527 |
$ |
1,430,787 |
$ |
1,308,964 |
(1) Refer to the preceding table for a
description of unscheduled payment activity that has recently
occurred or is expected to occur.
(2) The 2023 $1.0 Billion Credit Facility
was executed in July 2023. In July and August 2023, the Company
drew an aggregate of $576.4 million from this facility (split
evenly between the term loan and the revolver) and 26 of the
Company's vessels (17 MRs and nine LR2s) were placed as collateral
under the facility. In September 2023, the Company repaid $288.2
million on the revolving portion of this credit facility, which may
be re-borrowed in the future. In November 2023, the Company drew
down $202.3 million from this facility (split evenly between the
term loan and the revolver) and eight of the Company's vessels
(three MRs and five LR2s) were placed as collateral under the
facility. This facility has a final maturity of June 30, 2028,
bears interest at SOFR plus a margin of 1.95% per annum and is
expected to be repaid in quarterly installments with a balloon
payment due at the maturity date, where the term loan portion for
each vessel shall be repaid in full prior to the reduction of the
revolving loan for each vessel. The amounts drawn thus far, and the
currently available $288.2 million under the revolving portion of
the facility, are scheduled to be repaid and/or permanently reduced
in aggregate amounts of $24.7 million per quarter through June 30,
2025 and gradually decreasing from $18.1 million to $16.2 million
per quarter in years three through five of the loan, with a balloon
payment due at the maturity date. 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 Company expects to draw $37.7 million under this
facility before the end of the fourth quarter of 2023, and the
remaining $183.6 million within the first quarter of 2024.
(3) In September 2023, the Company
executed its previously announced 2023 $94.0 Million Credit
Facility. Upon execution of the credit facility, the Company drew
$43.8 million and two vessels (one MR and one LR2) were placed as
collateral under the facility. In October 2023, the Company drew
$50.2 million and two vessels (two LR2s) were placed as collateral
under the facility. Each tranche of the facility has a final
maturity five years from the respective drawdown date and bears
interest at SOFR plus a margin of 1.70% per annum. The facility is
scheduled to be repaid in aggregate repayments of $2.4 million per
quarter with a balloon payment due maturity.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of September 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 October 1, 2023 through November 8, 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 borrowings after September 30,
2023 (5) |
Pro forma, including new borrowing |
October 1, 2023 to November 8, 2023 (2) |
|
$ |
— |
$ |
195.9 |
$ |
22.2 |
$ |
218.1 |
$ |
— |
$ |
218.1 |
Remaining Q4 2023 (2) |
|
|
— |
|
264.7 |
|
39.1 |
|
303.8 |
|
5.9 |
|
309.7 |
Q1 2024 (2) |
|
|
— |
|
115.7 |
|
47.7 |
|
163.4 |
|
7.2 |
|
170.6 |
Q2 2024 |
|
|
— |
|
— |
|
53.2 |
|
53.2 |
|
7.2 |
|
60.4 |
Q3 2024 (3) |
|
|
— |
|
15.0 |
|
47.8 |
|
62.8 |
|
7.2 |
|
70.0 |
Q4 2024 (4) |
|
|
— |
|
5.2 |
|
50.2 |
|
55.4 |
|
7.2 |
|
62.6 |
2025 and thereafter |
|
|
70.6 |
|
— |
|
868.4 |
|
939.0 |
|
217.8 |
|
1,156.8 |
|
|
$ |
70.6 |
$ |
596.5 |
$ |
1,128.6 |
$ |
1,795.7 |
$ |
252.5 |
$ |
2,048.2 |
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of
September 30, 2023.
(2) Includes the unscheduled payment
activity that has recently occurred or is expected to occur as
described in the preceding section describing unscheduled debt and
lease repayments.
(3) Includes the repayment of $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).
(4) Includes the repayment of $5.2
million, inclusive of the scheduled purchase option, on an MR
product tanker (STI Onyx), which is currently financed under the
BCFL Lease Financing (MRs).
(5) Reflects the scheduled repayments on
the amounts borrowed in October and November 2023 on the 2023 $94.0
Million Credit Facility and 2023 $1.0 Billion Credit Facility of
$52.0 million and $202.3 million, respectively.
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 third 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 |
Q3 2023 - actual(a) |
3.6 |
28 |
0 |
1 |
0 |
Q4 2023 - estimated(b) |
7.6 |
125 |
3 |
2 |
0 |
Q1 2024 - estimated(c) |
16.1 |
180 |
1 |
6 |
0 |
Q2 2024 - estimated(d) |
18.2 |
335 |
0 |
11 |
3 |
Q3 2024 - estimated(e) |
23.1 |
500 |
4 |
13 |
4 |
Q4 2024 - estimated |
20.7 |
400 |
4 |
9 |
7 |
(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 two scrubber
installations.
(d) Includes four scrubber
installations.
(e) Includes five scrubber
installations.
Explanation of Variances on the Third
Quarter of 2023 Financial Results Compared to the Third Quarter of
2022
For the three months ended September 30, 2023,
the Company recorded net income of $100.4 million compared to net
income of $266.2 million for the three months ended September 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 September 30, 2023, and 2022:
|
|
|
For the three months ended September 30, |
In thousands of
U.S. dollars |
|
|
2023 |
|
|
|
2022 |
|
|
Vessel revenue |
|
$ |
291,179 |
|
|
$ |
489,996 |
|
|
Voyage expenses |
|
|
(1,985 |
) |
|
|
(33,721 |
) |
|
TCE
revenue |
|
$ |
289,194 |
|
|
$ |
456,275 |
|
-
TCE revenue for the three months ended September 30, 2023,
decreased by $167.1 million to $289.2 million, from $456.3 million
for the three months ended September 30, 2022. Overall average TCE
revenue per day decreased to $28,313 per day during the three
months ended September 30, 2023, from $44,222 per day during the
three months ended September 30, 2022. The average number of
vessels was 112.1 during the three months ended September 30, 2023
as compared to 113.5 during the three months ended September 30,
2022.
-
TCE revenue for the three months ended September 30, 2023 remained
strong despite a decline in daily TCE rates when compared to the
same period in the prior year. The third quarter of 2022 reflected
several key events and market conditions (discussed below), leading
to a counter-seasonal spike in daily TCE rates. The third quarter
of 2023 reflected a more normalized seasonal pattern whereby the
beginning of the quarter was impacted by extended refinery
maintenance, lower refining margins and a reduction in arbitrage
opportunities, which all led to reduced refinery throughput and
decreased volumes from major export regions. These conditions
improved later in the quarter and daily TCE rates strengthened. As
such, on a seasonally adjusted basis, demand for the Company's
vessels remained strong during the third quarter of 2023 supported
by growing underlying consumption for refined petroleum products
against the backdrop of low inventory levels and a modest
newbuilding orderbook (with a dearth of deliveries expected in the
next two years).
-
TCE revenue for the three months ended September 30, 2022 reflected
the continued momentum in the product tanker market that began in
the first quarter of 2022. Initially, the easing of COVID-19
restrictions around the globe resulted in increased personal
mobility which served as a catalyst for underlying demand for
refined petroleum products. This buoyant demand, combined with low
global refined petroleum product inventories and strong refining
margins, incentivized refiners to increase and maintain high
utilization levels which drove substantial increases in refined
petroleum product export volumes throughout the world. Lastly, the
volatility brought on by the conflict in Ukraine significantly
disrupted supply chains for crude oil and refined petroleum
products, changing volumes and trade routes, and thus increasing
ton-mile demand for the seaborne transportation of refined
petroleum products.
The Company also had an increased number of
vessels operating outside of the Scorpio pools during the three
months ended September 30, 2022, which led to an increase in voyage
revenue and voyage expenses for that period.
-
Vessel operating costs for the three months ended September 30,
2023 increased by $3.3 million to $79.1 million, from $75.8 million
for the three months ended September 30, 2022. Vessel operating
costs per vessel per day increased to $7,669 per day for the three
months ended September 30, 2023 from $7,256 per day for the three
months ended September 30, 2022. General inflationary pressures
were the main drivers behind the increase, with certain crewing,
spares and stores, and freight and forwarding expenses being the
most impacted.
-
Depreciation expense – owned or sale leaseback vessels for the
three months ended September 30, 2023 increased by $5.6 million to
$47.0 million, from $41.4 million for the three months ended
September 30, 2022. This increase was attributable to the exercise
of purchase options on six lease financed vessels during the third
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.
-
Depreciation expense - right of use assets for the three months
ended September 30, 2023 decreased by $5.4 million to $4.1 million
from $9.6 million for the three months ended September 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 six lease financed vessels during the third 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.
- General and administrative expenses
for the three months ended September 30, 2023, decreased by $1.8
million to $24.6 million, from $26.5 million for the three months
ended September 30, 2022. This decrease was primarily due to an
aggregate decrease in compensation related costs. General and
administrative expenses for the fourth quarter of 2023 are expected
to reflect a one-time non-cash charge of approximately $8.5 million
for the acceleration of restricted stock amortization which was
triggered by the departure of the Company’s former CFO in October
2023. Excluding any future grants, this acceleration will reduce
restricted stock amortization in subsequent periods gradually over
the remaining vesting period (through 2027).
-
Financial expenses for the three months ended September 30, 2023
increased by $7.4 million to $49.7 million, from $42.3 million for
the three months ended September 30, 2022. This increase was
primarily attributable to increases in benchmark rates, primarily
SOFR. This increase was partially offset by the overall reduction
in the Company's average indebtedness to $2.0 billion from $2.6
billion during the three months ended September 30, 2023 as
compared to the three months ended September 30, 2022. In addition
to regularly scheduled repayments, the Company exercised purchase
options or made unscheduled repayments of debt of $1.2 billion
since October 1, 2022 and settled $205.1 million of debt through
the conversion of the Convertible Notes Due 2025 into common shares
in December 2022. These debt settlements were partially offset by
$1.0 billion of drawdowns under new credit facilities during that
same period.Additionally, the Company recorded $6.0 million of debt
extinguishment related costs during the three months ended
September 30, 2023, as compared to $1.4 million during the three
months ended September 30, 2022. There was no accretion on the
Convertible Notes Due 2025 during the three months ended September
30, 2023 given their conversion in December 2022, as compared to
accretion of $3.1 million during the three months ended September
30, 2022.
Scorpio Tankers Inc. and Subsidiaries Condensed
Consolidated Statements of
Income(unaudited) |
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
In thousands of
U.S. dollars except per share and share data |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
291,179 |
|
|
$ |
489,996 |
|
|
$ |
1,004,909 |
|
|
$ |
1,069,116 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
Vessel operating costs |
|
(79,113 |
) |
|
|
(75,801 |
) |
|
|
(231,645 |
) |
|
|
(237,556 |
) |
|
Voyage expenses |
|
(1,985 |
) |
|
|
(33,721 |
) |
|
|
(10,998 |
) |
|
|
(59,229 |
) |
|
Depreciation - owned or sale
leaseback vessels |
|
(47,016 |
) |
|
|
(41,422 |
) |
|
|
(129,704 |
) |
|
|
(126,581 |
) |
|
Depreciation - right of use
assets |
|
(4,136 |
) |
|
|
(9,567 |
) |
|
|
(22,139 |
) |
|
|
(29,055 |
) |
|
General and administrative
expenses |
|
(24,647 |
) |
|
|
(26,490 |
) |
|
|
(74,127 |
) |
|
|
(61,747 |
) |
|
Gain (loss) on sales of
vessels |
|
7,127 |
|
|
|
2,732 |
|
|
|
7,127 |
|
|
|
(66,486 |
) |
|
Total operating expenses |
|
(149,770 |
) |
|
|
(184,269 |
) |
|
|
(461,486 |
) |
|
|
(580,654 |
) |
Operating
income |
|
141,409 |
|
|
|
305,727 |
|
|
|
543,423 |
|
|
|
488,462 |
|
Other
(expenses) and income, net |
|
|
|
|
|
|
|
|
Financial expenses |
|
(49,698 |
) |
|
|
(42,302 |
) |
|
|
(136,950 |
) |
|
|
(121,012 |
) |
|
Financial income |
|
6,071 |
|
|
|
2,183 |
|
|
|
14,615 |
|
|
|
3,207 |
|
|
Other income, net |
|
2,586 |
|
|
|
557 |
|
|
|
4,920 |
|
|
|
2,191 |
|
|
Total other expense, net |
|
(41,041 |
) |
|
|
(39,562 |
) |
|
|
(117,415 |
) |
|
|
(115,614 |
) |
Net
income |
$ |
100,368 |
|
|
$ |
266,165 |
|
|
$ |
426,008 |
|
|
$ |
372,848 |
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.01 |
|
|
$ |
4.84 |
|
|
$ |
8.00 |
|
|
$ |
6.74 |
|
|
Diluted |
$ |
1.93 |
|
|
$ |
4.31 |
|
|
$ |
7.68 |
|
|
$ |
6.07 |
|
|
Basic weighted average shares
outstanding |
|
49,906,783 |
|
|
|
55,003,149 |
|
|
|
53,235,165 |
|
|
|
55,334,147 |
|
|
Diluted weighted average
shares outstanding (1) |
|
51,943,617 |
|
|
|
62,820,207 |
|
|
|
55,482,321 |
|
|
|
64,172,301 |
|
(1) The computation of diluted earnings
per share for the three months ended September 30, 2023 includes
the effect of potentially dilutive unvested shares of restricted
stock. The computation of diluted earnings per share for the three
and nine months ended September 30, 2022 includes the effect of
potentially dilutive unvested shares of restricted stock and the
effect of the Convertible Notes Due 2022 and Convertible Notes Due
2025 under the if-converted method.
Scorpio Tankers Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(unaudited) |
|
As of |
In thousands of U.S.
dollars |
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
364,908 |
|
|
$ |
376,870 |
|
Accounts receivable |
|
192,547 |
|
|
|
276,700 |
|
Prepaid expenses and other
current assets |
|
19,373 |
|
|
|
18,159 |
|
Inventories |
|
8,482 |
|
|
|
15,620 |
|
Total current
assets |
|
585,310 |
|
|
|
687,349 |
|
Non-current
assets |
|
|
|
Vessels and drydock |
|
3,478,195 |
|
|
|
3,089,254 |
|
Right of use assets for
vessels |
|
142,508 |
|
|
|
689,826 |
|
Other assets |
|
94,442 |
|
|
|
83,754 |
|
Goodwill |
|
8,197 |
|
|
|
8,197 |
|
Restricted cash |
|
783 |
|
|
|
783 |
|
Total non-current
assets |
|
3,724,125 |
|
|
|
3,871,814 |
|
Total
assets |
$ |
4,309,435 |
|
|
$ |
4,559,163 |
|
Current
liabilities |
|
|
|
Current portion of long-term
debt |
$ |
147,526 |
|
|
$ |
31,504 |
|
Lease liability - sale and
leaseback vessels |
|
369,019 |
|
|
|
269,145 |
|
Lease liability - IFRS 16 |
|
95,171 |
|
|
|
52,346 |
|
Accounts payable |
|
21,492 |
|
|
|
28,748 |
|
Accrued expenses and other
liabilities |
|
73,163 |
|
|
|
91,508 |
|
Total current
liabilities |
|
706,371 |
|
|
|
473,251 |
|
Non-current
liabilities |
|
|
|
Long-term debt |
|
694,026 |
|
|
|
264,106 |
|
Lease liability - sale and
leaseback vessels |
|
454,450 |
|
|
|
871,469 |
|
Lease liability - IFRS 16 |
|
5,676 |
|
|
|
443,529 |
|
Other long-term
liabilities |
|
3,974 |
|
|
|
— |
|
Total non-current
liabilities |
|
1,158,126 |
|
|
|
1,579,104 |
|
Total
liabilities |
|
1,864,497 |
|
|
|
2,052,355 |
|
Shareholders'
equity |
|
|
|
Issued, authorized and fully
paid-in share capital: |
|
|
|
Share capital |
|
745 |
|
|
|
727 |
|
Additional paid-in
capital |
|
3,078,552 |
|
|
|
3,049,732 |
|
Treasury shares |
|
(1,119,190 |
) |
|
|
(641,545 |
) |
Retained earnings |
|
484,831 |
|
|
|
97,894 |
|
Total shareholders'
equity |
|
2,444,938 |
|
|
|
2,506,808 |
|
Total liabilities and
shareholders' equity |
$ |
4,309,435 |
|
|
$ |
4,559,163 |
|
Scorpio Tankers Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows
(unaudited) |
|
For the nine months ended September 30, |
In thousands of U.S. dollars |
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
Net income |
$ |
426,008 |
|
|
$ |
372,848 |
|
Depreciation - owned or sale
leaseback vessels |
|
129,704 |
|
|
|
126,581 |
|
Depreciation - right of use
assets |
|
22,139 |
|
|
|
29,055 |
|
Amortization of restricted
stock |
|
28,838 |
|
|
|
16,148 |
|
Amortization of deferred
financing fees |
|
4,491 |
|
|
|
5,039 |
|
Non-cash debt extinguishment
costs |
|
6,126 |
|
|
|
5,506 |
|
Accretion of convertible
notes |
|
— |
|
|
|
10,858 |
|
Net (gain) / loss on sales of
vessels |
|
(7,127 |
) |
|
|
66,486 |
|
Accretion of fair value
measurement on debt assumed in business combinations |
|
956 |
|
|
|
1,756 |
|
Gain on Convertible Notes
transactions |
|
— |
|
|
|
(481 |
) |
Share of income from dual fuel
tanker joint venture |
|
(4,940 |
) |
|
|
(695 |
) |
|
|
606,195 |
|
|
|
633,101 |
|
Changes in assets and
liabilities: |
|
|
|
Decrease / (increase) in
inventories |
|
6,640 |
|
|
|
(7,183 |
) |
Decrease / (increase) in
accounts receivable |
|
84,153 |
|
|
|
(208,941 |
) |
Increase in prepaid expenses
and other current assets |
|
(1,214 |
) |
|
|
(13,232 |
) |
Decrease in other assets |
|
2,549 |
|
|
|
16,705 |
|
Decrease in accounts
payable |
|
(5,658 |
) |
|
|
(12,975 |
) |
(Decrease) / increase in
accrued expenses |
|
(12,998 |
) |
|
|
45,513 |
|
|
|
73,472 |
|
|
|
(180,113 |
) |
Net cash inflow from
operating activities |
|
679,667 |
|
|
|
452,988 |
|
Investing
activities |
|
|
|
Net proceeds from sales of
vessels |
|
32,186 |
|
|
|
607,894 |
|
Distributions from dual fuel
tanker joint venture |
|
1,489 |
|
|
|
493 |
|
Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
leased financed and bareboat-in vessels) |
|
(17,101 |
) |
|
|
(26,418 |
) |
Net cash inflow from
investing activities |
|
16,574 |
|
|
|
581,969 |
|
Financing
activities |
|
|
|
Debt repayments |
|
(774,892 |
) |
|
|
(670,108 |
) |
Issuance of debt |
|
1,011,632 |
|
|
|
122,638 |
|
Debt issuance costs |
|
(28,742 |
) |
|
|
(1,701 |
) |
Principal repayments on lease
liability - IFRS 16 |
|
(399,485 |
) |
|
|
(66,030 |
) |
Repurchase / repayment of
convertible notes |
|
— |
|
|
|
(83,968 |
) |
Decrease in restricted
cash |
|
— |
|
|
|
4,008 |
|
Dividends paid |
|
(39,072 |
) |
|
|
(17,683 |
) |
Repurchase of common
stock |
|
(477,644 |
) |
|
|
(84,893 |
) |
Net cash outflow from
financing activities |
|
(708,203 |
) |
|
|
(797,737 |
) |
(Decrease) / increase
in cash and cash equivalents |
|
(11,962 |
) |
|
|
237,220 |
|
Cash and cash equivalents at
January 1, |
|
376,870 |
|
|
|
230,415 |
|
Cash and cash
equivalents at September 30, |
$ |
364,908 |
|
|
$ |
467,635 |
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the
nine months ended September 30, 2023
and 2022
(unaudited)
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Adjusted EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
|
$ |
200,284 |
|
$ |
360,013 |
|
$ |
721,897 |
|
$ |
728,923 |
|
|
|
|
|
|
|
|
|
Average Daily
Results |
|
|
|
|
|
|
|
|
Fleet |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
28,313 |
|
$ |
44,222 |
|
$ |
32,631 |
|
$ |
31,485 |
Vessel operating costs per day
(3) |
|
$ |
7,669 |
|
$ |
7,256 |
|
$ |
7,529 |
|
$ |
7,199 |
Average number of vessels |
|
|
112.1 |
|
|
113.5 |
|
|
112.7 |
|
|
120.9 |
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
29,856 |
|
$ |
48,152 |
|
$ |
37,509 |
|
$ |
32,812 |
Vessel operating costs per day
(3) |
|
$ |
8,129 |
|
$ |
7,349 |
|
$ |
7,901 |
|
$ |
7,288 |
Average number of vessels |
|
|
39.0 |
|
|
39.4 |
|
|
39.0 |
|
|
41.1 |
|
|
|
|
|
|
|
|
|
LR1 |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
N/A |
|
N/A |
|
N/A |
|
$ |
13,724 |
Vessel operating costs per day
(3) |
|
N/A |
|
N/A |
|
N/A |
|
$ |
7,429 |
Average number of vessels |
|
N/A |
|
N/A |
|
N/A |
|
|
4.4 |
|
|
|
|
|
|
|
|
|
MR |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
28,587 |
|
$ |
41,143 |
|
$ |
30,218 |
|
$ |
30,694 |
Vessel operating costs per day
(3) |
|
$ |
7,393 |
|
$ |
7,258 |
|
$ |
7,356 |
|
$ |
7,197 |
Average number of vessels |
|
|
59.1 |
|
|
60.1 |
|
|
59.7 |
|
|
61.3 |
|
|
|
|
|
|
|
|
|
Handymax |
|
|
|
|
|
|
|
|
TCE per revenue day (2) |
|
$ |
22,875 |
|
$ |
46,231 |
|
$ |
29,292 |
|
$ |
34,934 |
Vessel operating costs per day
(3) |
|
$ |
7,568 |
|
$ |
6,835 |
|
$ |
7,246 |
|
$ |
6,873 |
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) |
|
$ |
3,556 |
|
$ |
3,639 |
|
$ |
17,101 |
|
$ |
26,418 |
(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
November 8, 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) (4) |
|
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 (5) |
|
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 (6) |
|
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 (7) |
|
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 (8) |
|
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 (9) |
|
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 (10) |
|
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 (11) |
|
LR2 |
|
Yes |
|
89 |
STI Grace |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (12) |
|
LR2 |
|
Yes |
|
90 |
STI Jermyn |
|
2016 |
|
109,999 |
|
— |
|
Time Charter (13) |
|
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 (14) |
|
LR2 |
|
Yes |
|
100 |
STI Guide |
|
2016 |
|
113,000 |
|
— |
|
Time Charter (15) |
|
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 (16) |
|
LR2 |
|
Yes |
|
104 |
STI Gladiator |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (15) |
|
LR2 |
|
Yes |
|
105 |
STI Gratitude |
|
2017 |
|
113,000 |
|
— |
|
Time Charter (17) |
|
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 (18) |
|
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 |
) |
The Company has entered into an agreement to sell this vessel which
is expected to close before the end of the fourth quarter of
2023. |
(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 |
) |
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. |
(8 |
) |
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. |
(9 |
) |
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. |
(10 |
) |
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. |
(11 |
) |
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. |
(12 |
) |
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. |
(13 |
) |
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. |
(14 |
) |
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. |
(15 |
) |
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. |
(16 |
) |
This vessel commenced a time charter in November 2022 for three
years at an average rate of $32,750 per day. |
(17 |
) |
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. |
(18 |
) |
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 |
|
|
September 2023 |
$ |
0.25 |
|
On November 9, 2023, the Board of Directors
declared a quarterly cash dividend of $0.35 per common share, with
a payment date of December 15, 2023 to all shareholders of record
as of November 30, 2023 (the record date). As of November 9, 2023,
there were 53,107,765 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 7.8 years. The Company has entered
into an agreement to sell one of its MR tankers within the fourth
quarter of 2023. 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 Third Quarter of 2023 Financial Results Compared to the
Third 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 September 30, 2023 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
100,368 |
|
|
$ |
2.01 |
|
|
$ |
1.93 |
|
|
|
Adjustment: |
|
|
|
|
|
|
|
|
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
5,999 |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
Gain on sales of vessels |
|
|
(7,127 |
) |
|
|
(0.14 |
) |
|
|
(0.14 |
) |
|
|
Adjusted net income |
|
$ |
99,240 |
|
|
$ |
1.99 |
|
|
$ |
1.91 |
|
|
|
|
|
For the three months ended September 30, 2022 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
266,165 |
|
|
$ |
4.84 |
|
|
$ |
4.31 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Net gain on sales of vessels |
|
|
(2,732 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.04 |
) |
|
|
Write-offs of deferred financing fees and debt extinguishment
costs |
|
|
1,443 |
|
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
|
Gain on repurchase of Convertible Notes |
|
|
(69 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
|
Adjusted net income |
|
$ |
264,807 |
|
|
$ |
4.81 |
|
(1) |
$ |
4.29 |
|
|
(1) Summation difference due to rounding
|
|
|
For the nine months ended September 30, 2023 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
426,008 |
|
|
$ |
8.00 |
|
|
$ |
7.68 |
|
|
|
Adjustment: |
|
|
|
|
|
|
|
|
Write-offs of deferred
financing fees and debt extinguishment costs |
|
|
9,253 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
Gain on sales of vessels |
|
|
(7,127 |
) |
|
|
(0.13 |
) |
|
|
(0.13 |
) |
|
|
Adjusted net income |
|
$ |
428,134 |
|
|
$ |
8.04 |
|
|
$ |
7.72 |
|
|
|
|
|
For the nine months ended September 30, 2022 |
|
|
|
|
|
|
Per share |
|
Per share |
|
In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net income |
|
$ |
372,848 |
|
|
$ |
6.74 |
|
|
$ |
6.07 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Net loss on sales of
vessels |
|
|
66,486 |
|
|
$ |
1.20 |
|
|
$ |
1.04 |
|
|
|
Write-offs of deferred
financing fees and debt extinguishment costs |
|
|
7,144 |
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
|
Gain on repurchase of
Convertible Notes |
|
$ |
(481 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
Adjusted net income |
|
$ |
445,997 |
|
|
$ |
8.06 |
|
|
$ |
7.21 |
|
|
Reconciliation of Net Income to Adjusted
EBITDA
|
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
In thousands of
U.S. dollars |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net Income |
|
$ |
100,368 |
|
|
$ |
266,165 |
|
|
$ |
426,008 |
|
|
$ |
372,848 |
|
|
Financial expenses |
|
|
49,698 |
|
|
|
42,302 |
|
|
|
136,950 |
|
|
|
121,012 |
|
|
Financial income |
|
|
(6,071 |
) |
|
|
(2,183 |
) |
|
|
(14,615 |
) |
|
|
(3,207 |
) |
|
Depreciation - owned or lease financed vessels |
|
|
47,016 |
|
|
|
41,422 |
|
|
|
129,704 |
|
|
|
126,581 |
|
|
Depreciation - right of use assets |
|
|
4,136 |
|
|
|
9,567 |
|
|
|
22,139 |
|
|
|
29,055 |
|
|
Amortization of restricted stock |
|
|
12,264 |
|
|
|
5,472 |
|
|
|
28,838 |
|
|
|
16,148 |
|
|
Net (gain) / loss on sales of vessels |
|
|
(7,127 |
) |
|
|
(2,732 |
) |
|
|
(7,127 |
) |
|
|
66,486 |
|
|
Adjusted EBITDA |
|
$ |
200,284 |
|
|
$ |
360,013 |
|
|
$ |
721,897 |
|
|
$ |
728,923 |
|
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 RelationsTel: +1
646-432-1678Email: investor.relations@scorpiotankers.com
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