Scorpio Tankers(STNG) - 2024 Q4 - Annual Report

Debt and Financing - As of December 31, 2024, the company had $878.1 million in interest-bearing debt[175]. - In January 2025, the company placed$200.0 million of new senior unsecured bonds due in January 2030 with a fixed coupon rate of 7.50% per annum[185]. - In February 2025, the company executed a revolving credit facility of up to $500.0 million, bearing interest at SOFR plus a margin of 1.85$70.6 million of Unsecured Senior Notes due 2025 in March 2025[186]. - The company is in compliance with the financial covenants in its debt agreements as of December 31, 2024[180]. - The company may face restrictions on paying dividends or incurring additional indebtedness due to its debt and lease financing agreements[182]. Revenue and Growth - The company reported a revenue of $4.9 billion for Q3 2023, representing a 15$5.1 billion and $5.3 billion, indicating a potential growth of 8$200 million in revenue in the next quarter[193]. - The company reported a revenue of $999 million for the quarter, maintaining a steady performance compared to previous periods[1]. - The company provided a future outlook with a revenue guidance of$1.2 billion for the next quarter, indicating a projected growth of 20%[1]. User and Market Expansion - User data showed a growth of 10 million active users, bringing the total to 150 million users[193]. - User data showed an increase in active users, reaching 8.2 million, which represents a growth of 5% year-over-year[1]. - The company is expanding its market presence in Asia, targeting a 15% increase in market share by the end of the fiscal year[1]. - Market expansion efforts include entering three new international markets by the end of 2023[193]. Operational Performance - The company reported a gross margin of 45%, up from 42% in the previous year[193]. - Operating expenses increased by 5% year-over-year, primarily due to higher marketing costs[193]. - The company operates a total of 7,092,312 vessels, with various time charters generating average daily rates ranging from $21,000 to$47,000[195]. - The average daily rate for time charters varies, with some vessels having options to extend at rates between $22,500 and$36,750 per day[195][196]. - The company participates in commercial pools to enhance vessel utilization, with 83 vessels operating in Scorpio Pools as of March 20, 2025[198]. Fleet and Chartering Strategy - As of March 20, 2025, the company's fleet consisted of 99 wholly owned or leased financed tankers with a weighted average age of approximately 9.0 years[183]. - The company’s chartering strategy includes a mix of time charters and spot market operations to optimize revenue based on market conditions[197]. - The charterer of STI Gratitude extended the time charter-out agreement for an additional year at $31,000 per day starting in May 2025[190]. - As of December 31, 2024, 16 vessels are on long-term charter-out agreements with terms of three years or greater, providing stable cash flow[199]. Financial Performance - Net income for the year ended December 31, 2024, was$668.77 million, an increase of $121.88 million or 22$546.90 million in 2023[375]. - Vessel revenue for the year ended December 31, 2024, was $1,243.95 million, a decrease of$97.27 million or 7% compared to $1,341.22 million in 2023[375]. - Financial expenses decreased by 40$109.54 million from $183.23 million in 2023[375]. - The gain on sales of vessels increased dramatically by 1,369$176.54 million compared to $12.02 million in 2023[375]. - General and administrative expenses rose by 14$121.05 million from $106.26 million in 2023[375]. Environmental and Regulatory Compliance - The company aims to achieve net zero emission shipping services by 2030 and has signed the Call to Action for Shipping Decarbonization[274]. - The company is committed to responsible ship recycling in accordance with the Hong Kong Convention and the IMO Convention for the Safe and Environmentally Sound Recycling of Ships[274]. - The company is subject to significant expenses for compliance with international and national environmental regulations, which may impact profitability[275]. - The EU aims to reduce net greenhouse gas emissions by at least 55$1 billion per incident for each vessel, which may increase to approximately $8.2 billion in case of 'overspill' claims[318]. - The current protection and indemnity insurance coverage for pollution is$1 billion per vessel per incident, with the International Group's Pool providing a mechanism for sharing claims exceeding $10 million up to approximately$3.1 billion[344]. - The company maintains hull and machinery insurance, protection and indemnity insurance, and war risk insurance to mitigate operational risks[343]. Strategic Investments and R&D - The company is investing 300 million in R&D for new technologies aimed at enhancing user experience[193]. - The company completed a strategic acquisition of a smaller tech firm for 150 million to bolster its product offerings[193]. - The company is exploring potential acquisitions to strengthen its portfolio, with a budget of $500 million allocated for strategic investments[1].