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Scorpio Tankers(STNG) - 2022 Q1 - Earnings Call Transcript
2022-04-28 21:38
Financial Data and Key Metrics Changes - The company reduced its debt by more than $500 million through vessel sales and scheduled amortization in the first half of the year [7][17] - The fleet is expected to average $25,000 per day TCE in the second quarter, potentially resulting in $450 million in liquidity by the end of June [7][17] - The company anticipates generating almost $600 million in free cash flow before debt repayment if rates average $25,000 per day for the year [18][19] Business Line Data and Key Metrics Changes - Product tanker rates increased significantly at the end of the quarter and remain elevated, driven by increased demand for refined products and seaborne exports [8][11] - The highest rate increases were observed for vessels operating from the US Gulf to Latin America, while MR rates in the US Gulf declined from record levels but increased in the Middle East and Asia [11][12] Market Data and Key Metrics Changes - Diesel demand is robust and has surpassed pre-pandemic levels, contributing to a tight diesel market [11][12] - The situation in Russia and Ukraine has exacerbated the global diesel shortage, with potential increases in ton miles demand as Europe seeks to replace lost Russian imports [12][13] - Seaborne CPP exports exceeded pre-COVID levels by 700,000 barrels per day in April, with refined product demand expected to increase by 4 million barrels per day through the remainder of the year [15][16] Company Strategy and Development Direction - The company aims to improve its balance sheet and create shareholder value in an improving market, with no plans to sell additional vessels [6][9] - The focus is on reducing leverage through scheduled amortization and opportunistically through vessel refinancings, while also considering a $250 million share repurchase program [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing demand for refined products and the increasing dislocation between producers and consumers, expecting a constructive environment for product tanker rates [8][9] - The company anticipates a sustained tight supply-demand balance for refined products throughout the year, with limited ability to supply demand from inventory draws [15][56] Other Important Information - The product tanker order book is at a record low, with scrapping at an all-time high, leading to expectations of minimal fleet growth in the coming years [16][20] - The company has no new building orders and has completed necessary drydockings, allowing for lower capital expenditures [42][43] Q&A Session Summary Question: Discussion on recent vessel sales and fleet management - Management confirmed that they are done with vessel sales and are now focusing on capitalizing on incoming cash flows [28][29] Question: Insights on the LR2 market strength - Management noted a significant increase in LR2 rates, driven by structural demand and repositioning of vessels [31][33] Question: Risks to the current market outlook - Management indicated that while the market outlook is strong, unexpected geopolitical events or drastic changes in demand could pose risks [38][39] Question: Thoughts on M&A and fleet expansion - Management stated that they are focused on maximizing current assets and do not see the need for acquisitions at this time [42] Question: Future dividend strategy - Management indicated that while dividends are part of capital allocation, any increase would depend on sustained market conditions [63][64] Question: Current cash flow and operational efficiency - Management confirmed that they are not facing difficulties in sourcing high sulfur fuel and are focused on maintaining operational efficiency [65]
Scorpio Tankers(STNG) - 2022 Q1 - Quarterly Report
2022-04-28 20:19
Exhibit 99.1 Scorpio Tankers Inc. Announces Financial Results for the First Quarter of 2022 and Declaration of a Quarterly Dividend MONACO--(GLOBE NEWSWIRE - April 28, 2022) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months ended March 31, 2022. The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share on the Company's common stock. Results for the three months ended March 31, 2022 a ...
Scorpio Tankers(STNG) - 2021 Q4 - Annual Report
2022-03-23 20:29
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ OR ¨ SHELL COMPANY REPOR ...
Scorpio Tankers(STNG) - 2021 Q4 - Earnings Call Transcript
2022-02-14 19:54
Financial Data and Key Metrics Changes - Scorpio Tankers finished 2021 with more cash on the balance sheet than in 2020, indicating improved liquidity [8] - The company has over $460 million in pro forma liquidity after the sale of 14 vessels, which also reduces overall debt [27][30] - The company has seen a substantial increase in asset values, with 5-year-old LR2s increasing by $12.5 million per vessel since January 2021, raising the gross asset value of the LR2 fleet by $525 million [26] Business Line Data and Key Metrics Changes - Smaller vessels, specifically Handymax and MRs, have shown more improvement due to demand strength in the U.S., Latin America, Africa, and Europe [15] - LR2s have been slower to recover due to lower demand in Asia and reduced arbitrage opportunities [15] Market Data and Key Metrics Changes - Oil demand increased by 19 million barrels a day since May 2020 and is expected to surpass pre-COVID levels in 2022 [11] - Refined product inventories are at historically low levels, with 181 million barrels drawn from January to November 2021 [16] - The product tanker order book is at a record low, with only 5.3% of the existing fleet on order [23] Company Strategy and Development Direction - The company aims to maintain a strong liquidity position and significant operating leverage in a challenging market, focusing on creating shareholder value in an improving market [10] - The decision to sell assets is part of a strategy to enhance liquidity and reduce debt while capitalizing on increased asset values [9][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, despite the impact of the Omicron variant, citing strong demand for oil and its derivatives [40] - The company believes that the recovery is close, with ton mile demand exceeding pre-COVID levels due to refinery closures [17][20] - Management highlighted that mobility is the main catalyst for recovery, and all fundamentals are pointing in the right direction [74] Other Important Information - The company has refinanced essentially all upcoming maturities and has minimal CapEx, positioning itself well for a market recovery [30] - The company has the largest product tanker fleet in the world, comprised entirely of ECO vessels, providing significant operating leverage [31] Q&A Session Summary Question: Can you discuss the recent vessel sales and the pricing? - Management noted that the strong purchase market allowed for the sale of vessels at surprisingly high prices, reflecting increased net asset values [36] Question: How does the company feel about its liquidity position ahead of a recovery? - Management is comfortable with the current liquidity and may consider further vessel sales to take advantage of NAV arbitrage, but not out of necessity [41] Question: What are the expectations for rates in the upcoming quarter? - Management indicated that rates are volatile and difficult to predict, but overall rates are expected to be above breakeven levels [46] Question: How does the company view the impact of geopolitical events on demand? - Management acknowledged that geopolitical events could affect demand but emphasized that the fundamentals are strong and mobility is key for recovery [59] Question: What is the outlook on refinery closures and their impact on ton mile demand? - Management believes that the full benefit of refinery closures has not yet been realized and expects to see a multiplier effect on demand as it returns to pre-COVID levels [64]
Scorpio Tankers(STNG) - 2021 Q4 - Earnings Call Presentation
2022-02-14 14:24
Scorpio Tankers Inc. Fourth Quarter 2022 Earnings Presentation February 14, 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," "foreca ...
Scorpio Tankers(STNG) Presents At Capital Link's Company Presentation Series - Slideshow
2022-01-27 04:47
Scorpio Tankers Inc. Capital Link Webinar Series Presentation January 26, 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) - 2021 Q3 - Earnings Call Presentation
2021-11-11 20:28
Scorpio Tankers Inc. Third Quarter 2021 Earnings Presentation November 11, 2021 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," "forecas ...
Scorpio Tankers(STNG) - 2021 Q3 - Earnings Call Transcript
2021-11-11 17:46
Scorpio Tankers Inc. (NYSE:STNG) Q3 Earnings Conference Call November 11, 2021 8:30 AM ET Company Participants | --- | --- | |------------------------------------------|-------| | | | | Brian Lee – Chief Financial Officer | | | Emanuele Lauro – Chief Executive Officer | | | Robert Bugbee – President | | | Cameron Mackey – Chief Operating Officer | | | Lars Nielsen – Commercial Director | | | James Doyle – Senior Financial Analyst | | | Conference Call Participants | | | Omar Nokta – Clarksons Security | | | ...
Scorpio Tankers(STNG) - 2021 Q2 - Earnings Call Transcript
2021-08-05 19:34
Financial Data and Key Metrics Changes - The company reported a continued market weakness due to the pandemic, but believes the recovery has been deferred rather than canceled [9][10] - The value of the company's fleet has increased, with vessel prices rising and low supply growth [10][14] - The company has maintained a strong liquidity position, with $282 million as of June 30 and $268 million as of the current date, up from $187 million at the end of the previous year [79][80] Business Line Data and Key Metrics Changes - The product tanker market has seen a recovery in demand, particularly in the Americas, with refinery utilization reaching 92% in June and July, the highest since the onset of COVID-19 [21][22] - The company has noted an increase in arbitrage barrels moving longer-haul, which has positively impacted rates recently [20][66] Market Data and Key Metrics Changes - The company observed a significant draw in global inventories and rising demand, with global commercial flights at 89% of 2019 levels, but jet fuel demand still lagging at 70% [22][23] - The tanker market is expected to recover in the second half of the year, with a focus on the latter part of the second half for a meaningful upswing in rates [24][75] Company Strategy and Development Direction - The company is focusing on sensible balance sheet management and liquidity management ahead of the anticipated upswing in rates [10][14] - The company is exploring investments in dual-fuel technology, specifically methanol, to enhance competitiveness in the long term [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the tanker market, citing constrained supply and increasing asset values as positive indicators [14][17] - Concerns over COVID-19 variants continue to impact the global market, but management remains optimistic about the eventual recovery [11][12] Other Important Information - The company has upsized its 2025 convertible bond and is actively managing liquidity to ensure business stability [10][13] - The company is experiencing a benign vessel supply outlook, with historically low product tanker order books and constrained shipyard capacity [23] Q&A Session Summary Question: Investment in Dual Fuel Tankers - The company made a small investment in dual-fuel tankers to engage in the benefits of dual-fuel technology and position itself competitively for the future [29][30] Question: Vessel Age and Fleet Renewal - Management indicated that vessels under 15 years are treated similarly, and the company does not feel immediate pressure for fleet renewal due to the technological advantages of its ECO design vessels [36][38] Question: Capital Commitments and Liquidity - The company is confident in its ability to handle capital commitments, with plans to refinance some of the debt coming due [41][43] Question: Scrubber Installations - The company is reducing the number of scrubber installations going forward, with a focus on efficiency and minimizing off-hire days [47][74] Question: Current Rate Environment - The company is currently booking voyages at higher TCEs compared to previous averages, with expectations for a more meaningful recovery in Q4 [76][77] Question: Refinery Closures and Market Impact - Management noted that refinery closures are leading to increased ton miles and positively impacting the market dynamics [97][98]
Scorpio Tankers(STNG) - 2021 Q2 - Earnings Call Presentation
2021-08-05 13:55
Scorpio Tankers Inc. Second Quarter 2021 Earnings Presentation August 5, 2021 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, ...