Scorpio Tankers(STNG) - 2023 Q4 - Annual Report

Financial Performance - For Q4 2023, Scorpio Tankers reported a net income of $120.9 million, translating to $2.43 basic and $2.34 diluted earnings per share[2]. - Adjusted net income for Q4 2023 was $142.2 million, or $2.85 basic and $2.75 diluted earnings per share, after excluding certain costs[3]. - For the full year 2023, the company achieved a net income of $546.9 million, or $10.44 basic and $10.03 diluted earnings per share[6]. - The adjusted net income for the year 2023 was $570.3 million, or $10.89 basic and $10.46 diluted earnings per share[7]. - The company recorded a net income of $546.9 million for the year ended December 31, 2023, compared to $637.3 million in 2022[33]. - Net income for the year ended December 31, 2023, was $546,898 thousand, a decrease of 14.2% compared to $637,251 thousand in 2022[37]. - Basic earnings per share for Q4 2023 were $2.43, down from $4.74 in Q4 2022[33]. - Adjusted EBITDA for the year ended December 31, 2023, was $959,349 thousand, down 11.2% from $1,080,691 thousand in 2022[39]. Revenue and Earnings - TCE revenue for Q4 2023 was $334.1 million, down $126.2 million (27.4%) from $460.3 million in Q4 2022, with average daily TCE revenue decreasing to $32,949 from $45,679[30]. - The average daily TCE (Time Charter Equivalent) per revenue day for the fleet was $32,711 in 2023, a decrease of 6.3% from $34,878 in 2022[39]. - The company reported a revenue of $70 billion for Q2 2020, marking a 10% increase year-over-year[8]. - The company provided guidance for Q3 2020, expecting revenue between $72 billion and $75 billion, indicating a potential growth of 3% to 7%[6]. Dividends - The board declared a quarterly cash dividend of $0.40 per common share, with a payment date set for March 27, 2024[10]. - The company paid dividends of $0.10 per share quarterly in 2022, increasing to $0.25 per share in June 2023 and $0.35 per share in December 2023[46]. Debt and Financial Management - The company plans to exercise purchase options on multiple vessels, resulting in a total debt reduction of approximately $209.1 million[12]. - Scorpio Tankers made unscheduled debt and lease repayments totaling $497.1 million in Q4 2023 and an additional $171.1 million from January 1 to February 13, 2024[12]. - As of December 31, 2023, the company's gross debt outstanding was $1.618 billion, with net debt at $1.263 billion[23]. - The company drew down $324.6 million from the 2023 $1.0 billion credit facility in November and December 2023, with 13 vessels placed as collateral[24]. - Estimated future principal repayments from January 1, 2024, to December 31, 2026, total $1.618 billion, including $171.1 million due in Q1 2024[26]. - The company expects to make total unscheduled repayments of $171.1 million in 2024[21]. - Financial expenses for the year increased to $183,231,000 from $169,795,000, reflecting an 8% rise[56]. Operational Costs - Vessel operating costs decreased by $2.2 million to $83.9 million in Q4 2023, with costs per vessel per day slightly down to $8,181 from $8,289 in Q4 2022[30]. - The company incurred $6.0 million in aggregate costs for drydock and ballast water treatment in Q4 2023, with estimated costs of $11.3 million in Q1 2024[27]. - Depreciation expense for owned or sale leaseback vessels increased by $7.1 million to $48.6 million in Q4 2023, attributed to the purchase of 21 lease-financed vessels[30]. - General and administrative expenses rose by $5.7 million to $32.1 million in Q4 2023, primarily due to a one-time non-cash charge of $8.4 million related to stock amortization[31]. Fleet and Operations - The company operates a fleet of 42 vessels, primarily Handymax and MR types, with deadweight tonnage (DWT) ranging from 38,734 to 49,990[43]. - The average age of the fleet is approximately 8 years, suggesting a modern and efficient operational capability[43]. - The average number of vessels operated was 111.5 in Q4 2023, compared to 113.0 in Q4 2022[30]. - The company has a total of 30 MR vessels equipped with scrubbers, enhancing their environmental compliance and operational efficiency[43]. - The company has a diverse fleet with 10 vessels under time charter agreements, potentially reducing market risk[43]. Market and Strategic Outlook - The company is exploring opportunities for market expansion and potential acquisitions to enhance its competitive position[43]. - Future growth strategies may include investments in new technologies and vessel upgrades to meet evolving industry standards[43]. - The ongoing military conflict in Ukraine has led to significant volatility in oil prices, impacting the company's operations[48]. - The company anticipates potential risks related to economic performance and market conditions, including fluctuations in charter rates and vessel values[60].