Scorpio Tankers(STNG)

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Scorpio Tankers(STNG) - 2023 Q1 - Quarterly Report
2023-02-16 21:15
Exhibit 99.1 Scorpio Tankers Inc. Announces Financial Results for the Fourth Quarter of 2022 and an Increase to its Quarterly Dividend MONACO--(GLOBE NEWSWIRE - February 16, 2023) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months and year ended December 31, 2022. The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share on the Company's common stock. Results for the three months ende ...
Scorpio Tankers(STNG) - 2022 Q4 - Earnings Call Transcript
2023-02-16 19:29
Call Start: 8:30 January 1, 0000 9:28 AM ET Scorpio Tankers Inc. (NYSE:STNG) Q4 2022 Earnings Conference Call February 16, 2022 8:30 AM ET Company Participants James Doyle - Head of Corporate Development and IR Emanuele Lauro - Chief Executive Officer Robert Bugbee - President Brian Lee - Chief Financial Officer Cameron Mackey - Chief Operating Officer Lars Dencker Nielsen - Commercial Director Conference Call Participants Omar Nokta - Jefferies Jonathan Chappell - Evercore ISI Ken Hoexter - Bank of Ameri ...
Scorpio Tankers(STNG) - 2022 Q4 - Earnings Call Presentation
2023-02-16 14:40
This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Scorpio Tankers Inc.'s ("Scorpio's") current views with respect to future events and financial performance. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect" and similar expressions identify forward-looking statements. ...
Scorpio Tankers(STNG) - 2022 Q3 - Quarterly Report
2022-11-01 20:18
[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Third Quarter 2022 Financial Performance](index=1&type=section&id=Third%20Quarter%202022%20Financial%20Performance) Scorpio Tankers achieved a significant financial turnaround in Q3 2022, reporting substantial net income and adjusted net income, driven by a strong tanker market Q3 Financial Performance Comparison (2022 vs. 2021) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | **Net Income / (Loss)** | $266.2 million | ($73.3 million) | | Basic EPS / (LPS) | $4.84 | ($1.34) | | Diluted EPS / (LPS) | $4.31 | ($1.34) | | **Adjusted Net Income / (Loss)** | $264.8 million | ($76.1 million) | | Adjusted Basic EPS / (LPS) | $4.81 | ($1.39) | | Adjusted Diluted EPS / (LPS) | $4.29 | ($1.39) | [Nine Months 2022 Financial Performance](index=1&type=section&id=Nine%20Months%202022%20Financial%20Performance) For the first nine months of 2022, the company achieved substantial net income, reversing prior-year losses and reflecting sustained positive market conditions Nine-Month Financial Performance Comparison (2022 vs. 2021) | Metric | Nine Months 2022 | Nine Months 2021 | | :--- | :--- | :--- | | **Net Income / (Loss)** | $372.8 million | ($188.4 million) | | Basic EPS / (LPS) | $6.74 | ($3.46) | | Diluted EPS / (LPS) | $6.07 | ($3.46) | | **Adjusted Net Income / (Loss)** | $446.0 million | ($184.5 million) | | Adjusted Basic EPS / (LPS) | $8.06 | ($3.38) | | Adjusted Diluted EPS / (LPS) | $7.21 | ($3.38) | [Operational and Corporate Developments](index=1&type=section&id=Operational%20and%20Corporate%20Developments) [Time Charter Equivalent (TCE) Revenue Performance](index=1&type=section&id=Time%20Charter%20Equivalent%20%28TCE%29%20Revenue%20Performance) The company experienced a dramatic increase in earnings, with average daily TCE revenue surging in Q3 2022 across all vessel classes, and Q4 2022 bookings indicate continued strength Q4 2022 Bookings Summary (as of Nov 1, 2022) | Vessel Class | Avg. Daily TCE Revenue | % of Days Booked | | :--- | :--- | :--- | | LR2 | $58,000 | 55% | | MR | $43,000 | 42% | | Handymax | $44,000 | 36% | Q3 2022 Achieved TCE Revenue | Vessel Class | Pool / Spot TCE | Time Charters TCE | | :--- | :--- | :--- | | LR2 | $50,765 | $26,710 | | MR | $42,463 | $20,548 | | Handymax | $46,231 | N/A | [Capital Allocation and Shareholder Returns](index=1&type=section&id=Capital%20Allocation%20and%20Shareholder%20Returns) The company maintained its commitment to shareholder returns by declaring a quarterly cash dividend and actively repurchasing common shares, signaling confidence in its financial position - The Board of Directors declared a quarterly cash dividend of **$0.10 per common share**[9](index=9&type=chunk) - Since July 2022, the company has repurchased **3,120,341** of its common shares at an average price of **$38.66 per share**[12](index=12&type=chunk) - A new Securities Repurchase Program was authorized on October 31, 2022, allowing for the purchase of up to **$250 million** of the Company's securities, including common shares and notes[12](index=12&type=chunk)[14](index=14&type=chunk) [Fleet and Debt Management](index=3&type=section&id=Fleet%20and%20Debt%20Management) The company is actively managing its fleet and balance sheet by exercising purchase options on 17 vessels to reduce debt, complemented by vessel sales and multiple debt repayments - The company has given notice to exercise purchase options on an aggregate of **17 vessels**, which is expected to result in a debt reduction of **$302.2 million**[12](index=12&type=chunk) - In 2022, the company sold **18 vessels** (3 LR2s, 12 LR1s, 3 MRs), raising a total of **$265.3 million** in new liquidity after debt repayment[13](index=13&type=chunk) - In August 2022, the company exercised purchase options on **six MR product tankers**, resulting in an aggregate debt reduction of **$95.0 million**[12](index=12&type=chunk)[16](index=16&type=chunk) - In October 2022, the company repaid **$17.5 million** in outstanding debt for one LR2 product tanker[12](index=12&type=chunk)[22](index=22&type=chunk) [Financial Position and Outlook](index=6&type=section&id=Financial%20Position%20and%20Outlook) [Liquidity](index=6&type=section&id=Liquidity) As of October 28, 2022, Scorpio Tankers maintained a strong liquidity position with $490.9 million in unrestricted cash and cash equivalents, with additional funds anticipated from Scorpio pools - As of October 28, 2022, the Company had **$490.9 million** in unrestricted cash and cash equivalents[30](index=30&type=chunk) - An additional estimated **$105 million** was expected from Scorpio pools for the October monthly cash distribution[30](index=30&type=chunk) [Debt Profile](index=7&type=section&id=Debt%20Profile) The company has actively reduced its gross debt to $2.44 billion as of October 28, 2022, with a detailed repayment schedule outlining significant maturities and scheduled repayments through 2024 and beyond Debt and Net Debt Summary (in thousands USD) | Date | Gross Debt Outstanding | Cash and Cash Equivalents | Net Debt | | :--- | :--- | :--- | :--- | | June 30, 2022 | $2,652,424 | $359,528 | $2,292,896 | | Sep 30, 2022 | $2,478,885 | $467,635 | $2,011,250 | | Oct 28, 2022 | $2,442,835 | $490,903 | $1,951,932 | Future Principal Repayment Schedule (as of Sep 30, 2022, in millions USD) | Period | Total Repayments | Vessel Repurchases | Scheduled Repayments | | :--- | :--- | :--- | :--- | | Q4 2022 | $259.2 | $218.8 | $40.4 | | Q1 2023 | $78.9 | $27.8 | $51.1 | | Q2 2023 | $84.1 | $27.8 | $56.3 | | Q3 2023 | $77.4 | $27.8 | $49.6 | | 2024 and thereafter | $1,887.6 | — | $1,613.8 | [Capital Expenditures](index=6&type=section&id=Capital%20Expenditures) The company has outlined its estimated capital expenditures for drydocks, ballast water treatment systems, and scrubber installations through 2023, with the largest outlays expected in Q4 2022 and Q1 2023 Estimated Capital Expenditures and Offhire Days (2022-2023) | Period | Aggregate Costs (millions USD) | Aggregate Offhire Days | Vessels Commencing Work | | :--- | :--- | :--- | :--- | | Q3 2022 (actual) | $3.6 | 71 | 4 MRs | | Q4 2022 (est.) | $12.5 | 139 | 5 MRs | | Q1 2023 (est.) | $12.8 | 150 | 4 MRs | | Q2 2023 (est.) | $9.3 | 190 | 5 MRs | | Q4 2023 (est.) | $2.0 | 40 | 1 MR | [Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) [Condensed Consolidated Statements of Income or Loss](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20or%20Loss) The income statement highlights a substantial increase in vessel revenue to $490.0 million in Q3 2022, leading to an operating income of $305.7 million compared to a loss in the prior-year quarter Condensed Consolidated Statements of Income or Loss (in thousands USD) | | For the three months ended Sep 30, | For the nine months ended Sep 30, | | :--- | :--- | :--- | | | **2022** | **2021** | **2022** | **2021** | | Vessel revenue | $489,996 | $119,271 | $1,069,116 | $392,878 | | Total operating expenses | ($184,269) | ($159,711) | ($580,654) | ($473,323) | | Operating income / (loss) | $305,727 | ($40,440) | $488,462 | ($80,445) | | Total other expense, net | ($39,562) | ($32,827) | ($115,614) | ($107,998) | | **Net income / (loss)** | **$266,165** | **($73,267)** | **$372,848** | **($188,443)** | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2022, shows total assets of $4.65 billion and total liabilities of $2.53 billion, reflecting strong cash generation with increased cash and cash equivalents Condensed Consolidated Balance Sheets (in thousands USD) | | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $467,635 | $230,415 | | Total current assets | $751,112 | $289,227 | | Total non-current assets | $3,900,677 | $4,724,742 | | **Total assets** | **$4,651,789** | **$5,013,969** | | **Liabilities & Equity** | | | | Total current liabilities | $488,583 | $527,841 | | Total non-current liabilities | $2,041,825 | $2,649,200 | | **Total liabilities** | **$2,530,408** | **$3,177,041** | | **Total shareholders' equity** | **$2,121,381** | **$1,836,928** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2022, net cash inflow from operating activities significantly improved, with investing activities providing substantial cash from vessel sales, offset by financing outflows Condensed Consolidated Statements of Cash Flows (Nine Months Ended Sep 30, in thousands USD) | | 2022 | 2021 | | :--- | :--- | :--- | | Net cash inflow from operating activities | $452,988 | $23,080 | | Net cash inflow / (outflow) from investing activities | $581,969 | ($47,709) | | Net cash (outflow) / inflow from financing activities | ($797,737) | $29,538 | | **Increase in cash and cash equivalents** | **$237,220** | **$4,909** | [Supplementary Information](index=14&type=section&id=Supplementary%20Information) [Other Operating Data](index=14&type=section&id=Other%20Operating%20Data) Adjusted EBITDA for Q3 2022 saw a substantial increase to $360.0 million, with fleet average TCE per revenue day rising significantly, while vessel operating costs per day experienced a slight increase Key Operating Metrics (Q3 2022 vs Q3 2021) | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Adjusted EBITDA (in thousands) | $360,013 | $25,365 | | Fleet TCE per revenue day | $44,222 | $10,139 | | Vessel operating costs per day | $7,256 | $7,126 | [Fleet List](index=16&type=section&id=Fleet%20List) As of October 31, 2022, Scorpio Tankers' fleet comprised 113 product tankers with an average age of 6.8 years, consisting of LR2, MR, and Handymax vessels employed in pools or on time charters - The company owns, lease finances, or bareboat charters-in **113 product tankers**[62](index=62&type=chunk) - Fleet composition: **39 LR2 tankers**, **60 MR tankers**, and **14 Handymax tankers**[62](index=62&type=chunk) - The average age of the fleet is **6.8 years**[62](index=62&type=chunk) [Dividend Policy](index=20&type=section&id=Dividend%20Policy) The company has consistently paid a quarterly dividend of $0.10 per share throughout 2021 and 2022, with another $0.10 per share dividend declared for December 2022, subject to Board discretion - On October 31, 2022, the Board of Directors declared a quarterly cash dividend of **$0.10 per common share**, payable on or about December 15, 2022[59](index=59&type=chunk) Dividends Paid per Common Share | Date Paid | Dividend | | :--- | :--- | | March 2021 | $0.10 | | June 2021 | $0.10 | | September 2021 | $0.10 | | December 2021 | $0.10 | | March 2022 | $0.10 | | June 2022 | $0.10 | | September 2022 | $0.10 | [Market Risks and Outlook](index=20&type=section&id=Market%20Risks%20and%20Outlook) The company acknowledges ongoing market volatility from the COVID-19 pandemic and the significant impact of the military conflict in Ukraine, which has disrupted trade routes and supply chains for petroleum products - The COVID-19 virus is expected to continue causing volatility in commodities markets, and the full scale and duration of its impact remain unknowable[60](index=60&type=chunk) - The conflict in Ukraine has disrupted the supply of Russian oil, leading to significant price volatility and changes in trade routes for petroleum products, which could adversely affect financial results[61](index=61&type=chunk) [Non-IFRS Measures](index=21&type=section&id=Non-IFRS%20Measures) This section provides reconciliations for non-IFRS financial measures, including Adjusted Net Income and Adjusted EBITDA, to their most directly comparable IFRS measures Reconciliation of Net Income to Adjusted Net Income (Q3 2022, in thousands USD) | Description | Amount | | :--- | :--- | | Net income | $266,165 | | Net gain on sales of vessels | ($2,732) | | Write-offs of deferred financing fees | $1,443 | | Gain on repurchase of Convertible Notes | ($69) | | **Adjusted net income** | **$264,807** | Reconciliation of Net Income to Adjusted EBITDA (Q3 2022, in thousands USD) | Description | Amount | | :--- | :--- | | Net Income | $266,165 | | Financial expenses | $42,302 | | Financial income | ($2,183) | | Depreciation | $50,989 | | Amortization of restricted stock | $5,472 | | Net gain on sales of vessels | ($2,732) | | **Adjusted EBITDA** | **$360,013** |
Scorpio Tankers(STNG) - 2022 Q3 - Earnings Call Transcript
2022-11-01 16:36
Scorpio Tankers Inc. (NYSE:STNG) Q3 2022 Earnings Conference Call November 1, 2022 8:30 AM ET Company Participants James Doyle - Head of Corporate Development and Investor Relations Emanuele Lauro - Chief Executive Officer Robert Bugbee - President Cameron Mackey - Chief Operating Officer Brian Lee - Chief Financial Officer Lars Dencker Nielsen - Commercial Director Conference Call Participants Omar Nokta - Jefferies Jon Chappell - Evercore ISI Liam Burke - B. Riley Greg Lewis - BTIG Turner Holm - Clarkson ...
Scorpio Tankers(STNG) - 2022 Q3 - Earnings Call Presentation
2022-11-01 12:44
Scorpio Tankers Inc. Third Quarter 2022 Earnings Presentation November 1, 2022 Disclaimer and Forward-looking Statements This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Scorpio Tankers Inc.'s ("Scorpio's") current views with respect to future events and financial performance. The words "believe," "anticipate," "intend," "estimate," "forecast ...
Scorpio Tankers(STNG) - 2022 Q2 - Quarterly Report
2022-10-03 20:44
[Management's Discussion and Analysis of Financial Condition and Results of Operations](index=4&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Information on the Company](index=4&type=section&id=Information%20on%20the%20Company) The company operates a modern fleet of 113 product tankers primarily employed in spot market-oriented pools - As of October 3, 2022, the company's operating fleet consists of **113 product tankers** with a weighted average age of **6.7 years**[13](index=13&type=chunk) - The majority of the company's vessels operate in pools managed by the related party Scorpio Commercial Management S.A.M. (SCM)[18](index=18&type=chunk) Operating Fleet Composition as of October 3, 2022 | Vessel Type | Count | | :--- | :--- | | LR2 | 39 | | MR | 60 | | Handymax | 14 | | **Total** | **113** | [Recent Developments](index=8&type=section&id=RECENT%20DEVELOPMENTS) The company declared a quarterly dividend, sold tankers, repurchased shares, and exercised purchase options on 15 leased vessels - Declared a quarterly cash dividend of **$0.10 per common share** in July 2022[19](index=19&type=chunk) - Sold the MR tanker STI Benicia in July 2022 and the LR2 tanker STI Nautilus in August 2022[20](index=20&type=chunk) - Repurchased a total of **2,690,881 common shares** at an average price around $38[21](index=21&type=chunk) - Exercised purchase options on six MR product tankers in August 2022, repaying **$95.0 million** in lease obligations[23](index=23&type=chunk) - Gave notice to exercise options on an additional nine vessels, which is expected to reduce debt by **$160.8 million**[24](index=24&type=chunk) - Entered into three-year time charter-out agreements for three LR2 product tankers at daily rates between **$30,380 and $32,750**[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Business Overview](index=9&type=section&id=Overview) The company generates revenue from charters and pools, with all vessels managed by related parties SCM and SSM - Primary revenue sources are voyage charters, time/bareboat charters, and commercial pools, which offer flexibility and scheduling efficiencies[29](index=29&type=chunk)[34](index=34&type=chunk) - Vessels are commercially managed by SCM and technically managed by SSM, both related parties controlled by the Lolli-Ghetti family, under a master agreement[32](index=32&type=chunk) - Administrative services, including accounting, legal, and IT, are provided by another related party, Scorpio Services Holding Limited (SSH)[37](index=37&type=chunk) [Important Financial and Operational Terms and Concepts](index=10&type=section&id=Important%20Financial%20and%20Operational%20Terms%20and%20Concepts) The company's performance is evaluated using key metrics like Time Charter Equivalent (TCE) revenue, which more than doubled in H1 2022 - TCE revenue is a key non-IFRS performance measure used to compare period-to-period performance irrespective of charter type mix[46](index=46&type=chunk) - Total expenditures for drydock, scrubbers, and Ballast Water Treatment Systems (BWTS) decreased to **$22.8 million** in H1 2022 from $27.3 million in H1 2021[48](index=48&type=chunk) Average Daily Performance (Six Months Ended June 30) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Fleet TCE per revenue day** | **$25,444** | **$11,552** | | Fleet Vessel operating costs per day | $7,173 | $6,848 | | LR2 TCE per revenue day | $25,287 | $11,949 | | MR TCE per revenue day | $25,583 | $11,871 | | Handymax TCE per revenue day | $29,119 | $9,286 | [Factors Affecting Results](index=12&type=section&id=Items%20You%20Should%20Consider%20When%20Evaluating%20Our%20Results) Financial performance is influenced by the cyclical tanker market, seasonality, and significant fees paid to related parties - The tanker industry is cyclical, with profitability volatility driven by changes in vessel supply and demand for petroleum products[56](index=56&type=chunk) - Tanker markets exhibit seasonality, typically stronger in the winter quarters (Q1, Q4) and weaker in the summer quarters (Q2, Q3)[56](index=56&type=chunk) - Expenses are significantly affected by fees paid to related parties SCM (commercial management), SSM (technical management), and SSH (administrative services)[57](index=57&type=chunk) [Results of Operations](index=14&type=section&id=Results%20of%20Operations) The company reported a net income of $106.7 million in H1 2022, a significant turnaround driven by a 112% increase in vessel revenue [Comparison of Six Months Ended June 30, 2022 and 2021](index=14&type=section&id=Results%20of%20Operations%20for%20the%20six%20months%20ended%20June%2030%2C%202022%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202021) - Vessel revenue surged **112%** due to a structural improvement in the product tanker market, with consolidated TCE revenue per day increasing to **$25,444**[62](index=62&type=chunk)[63](index=63&type=chunk) - Vessel operating costs decreased slightly by 1% to **$161.8 million**, mainly due to a smaller fleet size, though daily operating costs rose 5%[74](index=74&type=chunk)[75](index=75&type=chunk) - A loss of **$69.2 million** was recorded on the sale of 18 vessels during the period[83](index=83&type=chunk) - Financial expenses increased by 12% to **$78.7 million**, primarily due to higher LIBOR rates[84](index=84&type=chunk)[88](index=88&type=chunk) Consolidated Results of Operations (in thousands of U.S. dollars) | Line Item | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Vessel revenue | $579,120 | $273,607 | | Vessel operating costs | ($161,755) | ($163,900) | | Loss on sales of vessels | ($69,218) | $0 | | Financial expenses | ($78,710) | ($69,973) | | **Net income / (loss)** | **$106,683** | **($115,176)** | TCE Revenue by Segment (in thousands of U.S. dollars) | Segment | H1 2022 | H1 2021 | | :--- | :--- | :--- | | MR | $289,382 | $136,202 | | LR2 | $188,986 | $88,278 | | Handymax | $88,508 | $25,783 | | LR1 | $11,169 | $23,344 | [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash balance increased to $359.5 million, with management believing liquidity is adequate for the next twelve months - The company's cash balance increased to **$359.5 million** as of June 30, 2022, from $230.4 million at December 31, 2021[96](index=96&type=chunk) - Management believes the company has adequate financial resources to meet its commitments for at least the next twelve months[93](index=93&type=chunk) - Market volatility is expected to continue due to the ongoing impacts of the COVID-19 pandemic and the military conflict in Ukraine[94](index=94&type=chunk)[95](index=95&type=chunk) [Cash Flows](index=20&type=section&id=Cash%20Flows) - Cash flow from operations increased significantly to **$139.8 million**, primarily due to a $305.5 million increase in vessel revenue[101](index=101&type=chunk)[102](index=102&type=chunk) - Investing activities generated a net inflow of **$518.6 million**, driven by $541.2 million in net proceeds from the sale of 16 vessels[107](index=107&type=chunk)[109](index=109&type=chunk) - Financing activities resulted in a net outflow of **$529.3 million**, reflecting significant debt and lease repayments[111](index=111&type=chunk) Summary of Cash Flows (in thousands of U.S. dollars) | Activity | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Net cash from Operating activities | $139,802 | $25,922 | | Net cash from Investing activities | $518,648 | ($27,308) | | Net cash from Financing activities | ($529,337) | $96,104 | [Long-Term Debt Obligations and Credit Arrangements](index=25&type=section&id=Long-Term%20Debt%20Obligations%20and%20Credit%20Arrangements) - The company was in compliance with all debt covenants as of June 30, 2022[114](index=114&type=chunk) - Subsequent to the period end, the company repaid **$95.0 million** on the China Huarong Lease Financing after exercising purchase options on six MR tankers[117](index=117&type=chunk) Total Outstanding Indebtedness (in thousands of U.S. dollars) | Date | Amount Outstanding | | :--- | :--- | | June 30, 2022 | $2,652,424 | | September 30, 2022 | $2,478,815 | [Capital Expenditures](index=27&type=section&id=Capital%20Expenditures) - As of June 30, 2022, the company has future payment commitments of **$15.1 million** for the purchase of scrubbers and BWTS[120](index=120&type=chunk) Capital Expenditure Activity (H1 2022) | Category | Costs Incurred (in thousands) | | :--- | :--- | | Drydock | $8,710 | | Ballast Water Treatment Systems (BWTS) | $2,388 | | Scrubbers | $14,057 | [Material Cash Requirements](index=29&type=section&id=Material%20Cash%20Requirements) - Total material cash requirements amount to over **$3.3 billion**, primarily consisting of payments on credit facilities, leases, and notes[121](index=121&type=chunk) Future Material Cash Requirements as of June 30, 2022 (in thousands) | Period | Amount | | :--- | :--- | | Less than 1 year | $574,225 | | 1 to 3 years | $1,124,296 | | 3 to 5 years | $806,588 | | More than 5 years | $820,229 | [Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to interest rate, spot market, foreign exchange, and inflation risks, with specific sensitivities quantified - **Interest Rate Risk:** A one-percentage point increase in the floating interest rate would increase annual interest expense by **$22.9 million**[127](index=127&type=chunk) - **Spot Market Rate Risk:** A $1,000 per day change in spot rates would have altered operating income by **$21.7 million** for the first six months of 2022[128](index=128&type=chunk) - **Foreign Exchange Risk:** The company incurs some expenses in currencies other than the U.S. dollar, creating exposure to currency fluctuations[129](index=129&type=chunk) - **Inflation Risk:** High inflation has impacted vessel operating costs and voyage expenses, posing a risk to future operating costs[132](index=132&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=32&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=33&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $4.61 billion while shareholders' equity increased to $1.94 billion as of June 30, 2022 Consolidated Balance Sheet Summary (in thousands of U.S. dollars) | Account | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$4,609,643** | **$5,013,969** | | Cash and cash equivalents | $359,528 | $230,415 | | Vessels and drydock, net | $3,144,735 | $3,842,071 | | **Total Liabilities** | **$2,668,881** | **$3,177,041** | | Current portion of long-term debt | $69,272 | $235,278 | | Long-term bank debt and bonds | $474,056 | $666,409 | | Sale and leaseback liability (Current & LT) | $1,546,432 | $1,639,991 | | **Total Shareholders' Equity** | **$1,940,762** | **$1,836,928** | [Unaudited Condensed Consolidated Statements of Income or Loss](index=34&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20or%20Loss) The company reported a net income of $106.7 million, or $1.84 diluted EPS, for H1 2022, a reversal from a net loss in H1 2021 Income Statement Summary (in thousands of U.S. dollars, except per share data) | Metric | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Vessel revenue | $579,120 | $273,607 | | Total operating expenses | ($396,385) | ($313,612) | | Operating income / (loss) | $182,735 | ($40,005) | | **Net income / (loss)** | **$106,683** | **($115,176)** | | Basic EPS | $1.92 | ($2.12) | | Diluted EPS | $1.84 | ($2.12) | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=38&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail vessel sales, debt obligations, extensive related-party transactions, and significant subsequent events [Note 4: Assets Held for Sale and Vessels](index=40&type=section&id=Note%204.%20Assets%20held%20for%20sale%20and%20Vessels%20and%20drydock) - During H1 2022, the company entered into agreements to sell **18 vessels** (3 LR2s, 12 LR1s, 3 MRs)[161](index=161&type=chunk) - The sale of 16 of these vessels closed within the period for an aggregate price of **$558.2 million**, resulting in a total loss of **$63.8 million**[163](index=163&type=chunk) - As of June 30, 2022, two vessels remained classified as held for sale[164](index=164&type=chunk)[165](index=165&type=chunk) [Note 11: Debt](index=46&type=section&id=Note%2011.%20Current%20and%20long-term%20debt) - In May 2022, the company repaid the outstanding **$69.7 million** principal balance of its Convertible Notes Due 2022 upon maturity[203](index=203&type=chunk) - In May 2022, the company repurchased **$10.8 million** face value of its Convertible Notes Due 2025 in the open market for $12.6 million[204](index=204&type=chunk) Debt and Lease Obligations as of June 30, 2022 (Carrying Value, in thousands) | Category | Amount | | :--- | :--- | | Secured Credit Facilities | $283,736 | | Sale and Leaseback Financing | $1,534,228 | | IFRS 16 - Lease Liabilities | $523,589 | | Unsecured Senior & Convertible Notes | $267,926 | | **Total** | **$2,609,479** | [Note 12: Common Shares](index=50&type=section&id=Note%2012.%20Common%20shares) - The Board of Directors authorized a **$250 million** securities repurchase program, with **$237.5 million** remaining available as of June 30, 2022[211](index=211&type=chunk)[212](index=212&type=chunk) - The company paid two quarterly cash dividends of **$0.10 per share** during the first half of 2022[210](index=210&type=chunk) - As of June 30, 2022, there were **59,415,013 common shares** outstanding[214](index=214&type=chunk) [Note 13: Related Party Transactions](index=51&type=section&id=Note%2013.%20Related%20party%20transactions) - As of June 30, 2022, the company had accounts receivable of **$193.9 million** due from the related-party Scorpio Pools[219](index=219&type=chunk) - Termination fees of **$2.7 million** were paid to SCM and SSM during H1 2022 as a result of vessel sales[223](index=223&type=chunk) Transactions with Related Parties (H1 2022, in thousands) | Transaction Type | Amount | | :--- | :--- | | Pool revenue | $491,793 | | Vessel operating costs (to SSM) | ($16,618) | | Administrative expenses (to SSH) | ($6,665) | | Purchases of bunkers | ($10,793) | [Note 21: Subsequent Events](index=63&type=section&id=Note%2021.%20Subsequent%20events) - In July, September, and October 2022, the company repurchased an aggregate of **1,397,220 common shares** in the open market[266](index=266&type=chunk) - In August 2022, the company exercised purchase options on six MR tankers, repaying a **$95.0 million** lease obligation[268](index=268&type=chunk) - In September 2022, the company gave notice to exercise purchase options on an additional nine vessels, expected to result in a debt reduction of **$160.8 million**[269](index=269&type=chunk)
Scorpio Tankers(STNG) - 2022 Q2 - Earnings Call Presentation
2022-07-28 16:32
Scorpio Tankers Inc. Second Quarter 2022 Earnings Presentation July 28, 2022 Disclaimer and Forward-looking Statements This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Scorpio Tankers Inc.'s ("Scorpio's") current views with respect to future events and financial performance. The words "believe," "anticipate," "intend," "estimate," "forecast," ...
Scorpio Tankers(STNG) - 2022 Q2 - Earnings Call Transcript
2022-07-28 16:32
Financial Data and Key Metrics Changes - Scorpio Tankers generated its largest quarterly profit in the company's history, with a significant improvement in investment quality [9] - The company reduced outstanding debt by $511 million in the first half of the year, with a pro forma cash balance increasing by $360 million to $591 million [9][10] - Pro forma liquidity could reach close to $700 million by the end of Q3 if average rates are $35,000 per day [11][31] Business Line Data and Key Metrics Changes - The fleet achieved a time charter rate of $44,800 per day in Q2, with expectations of generating almost $1 billion in free cash flow if rates average $35,000 per day for the year [32] - The company has booked 44% of the days in Q3 at a rate close to $45,000 per day [11] Market Data and Key Metrics Changes - Global inventories remain near historic lows, with demand for refined products expected to increase as the global economy reopens [12][25] - Seaborne exports of refined products are expected to increase by an additional 500,000 to 1 million barrels per day by the end of the year [24] - The product tanker order book is at a record low, with only 5% of the existing fleet on order [27] Company Strategy and Development Direction - The company's top priority is to reduce leverage and increase liquidity, with a focus on improving the balance sheet [13][30] - The management believes that the current market conditions will be sustained due to low inventories and constrained supply [12][25] Management's Comments on Operating Environment and Future Outlook - Management expects refined product demand to continue increasing, with a projected increase of 2 million to 4 million barrels per day through the end of the year [24][73] - The global market is anticipated to remain short on diesel due to unresolved refining capacity deficits [40] Other Important Information - The company has declared repurchase options on six MRs under sale leaseback arrangements for $95 million, contributing to debt reduction [10][31] - The company has seen a structural shift in refining capacity, moving further away from consumers and closer to wellheads, which increases seaborne exports [21][22] Q&A Session Summary Question: Impact of recent refining margin changes on the market - Management indicated that while refining margins have decreased recently, they remain healthy and logistics issues globally will play a significant role in the tanker market [46][48] Question: Plans for capital allocation and shareholder returns - Management emphasized the importance of reducing debt first before considering stock buybacks or dividends, with a focus on maintaining a strong balance sheet [60][64] Question: China's refined product exports and market impact - Management noted that while China's refining utilization is lower, there has been a steady supply of products, particularly diesel, which could positively impact the overall market [66][68] Question: Concerns about crude demand volatility - Management expressed confidence that both crude oil and refined product markets will remain tight due to a lack of investment in the supply chain [72] Question: Structural changes in the market and asset values - Management confirmed that asset prices are increasing due to strong charter demand and limited new building deliveries, indicating a positive outlook for asset values [79]
Scorpio Tankers(STNG) - 2022 Q1 - Earnings Call Presentation
2022-04-29 13:04
Scorpio Tankers Inc. First Quarter 2022 Earnings Presentation April 28, 2022 Disclaimer and Forward-looking Statements This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Scorpio Tankers Inc.'s ("Scorpio's") current views with respect to future events and financial performance. The words "believe," "anticipate," "intend," "estimate," "forecast," ...