Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three and six months
ended June 30, 2020. 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 June
30, 2020 and 2019
For the three months ended June 30, 2020, the
Company had net income of $143.9 million,
or $2.63 basic and $2.40 diluted earnings per
share. For the three months ended June 30, 2020, the Company
had an adjusted net income (see Non-IFRS Measures section below) of
$144.3 million, or $2.63 basic and $2.40 diluted earnings per
share, which excludes from net income a $0.3 million,
or $0.01 per basic and diluted share, write-off of
deferred financing fees.
For the three months ended June 30, 2019, the
Company's net loss was $29.7 million, or $0.62 basic and
diluted loss per share. There were no Non-IFRS adjustments to the
net loss for the three months ended June 30, 2019.
Results for the six months ended June
30, 2020 and 2019
For the six months ended June 30, 2020, the
Company had net income of $190.6 million,
or $3.48 basic and $3.21 diluted earnings per
share. For the six months ended June 30, 2020, the Company
had an adjusted net income (see Non-IFRS Measures section below) of
$190.9 million, or $3.49 basic and $3.21 diluted earnings per
share, which excludes from net income a $0.3 million,
or $0.01 per basic and diluted share, write-off of
deferred financing fees.
For the six months ended June 30, 2019, the
Company had a net loss of $15.2 million,
or $0.32 basic and diluted loss per share. For the
six months ended June 30, 2019, the Company’s adjusted net loss
(see Non-IFRS Measures section below) was $15.0 million,
or $0.31 basic and diluted loss per share, which excludes
from the net loss a $0.3 million, or $0.01 per basic
and diluted share, write-off of deferred financing fees.
Declaration of Dividend
On August 5, 2020, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about September 29, 2020 to all shareholders
of record as of September 9, 2020 (the record date). As of
August 5, 2020, there were 58,807,747 common shares of the
Company outstanding.
Summary of Second Quarter 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 pool voyages and time charters for the Company's
vessels thus far in the third quarter of 2020 as of the date hereof
(See footnotes to "Other operating data" table below for the
definition of daily TCE revenue):
| |
Total |
|
Pool |
Average daily TCE revenue |
% of Days |
|
LR2 |
$22,500 |
49 |
% |
| LR1 |
$22,000 |
53 |
% |
| MR |
$15,300 |
45 |
% |
| Handymax |
$12,000 |
52 |
% |
- Below is a summary of the average daily TCE revenue earned by
the Company's vessels in each of the pools during the second
quarter of 2020:
|
Pool |
Average daily TCE revenue |
|
LR2 |
$47,064 |
|
LR1 |
$35,794 |
|
MR |
$21,808 |
|
Handymax |
$17,698 |
- The Company's strong second quarter results, coupled with the
repayment of debt, have resulted in the Company's net debt position
decreasing by $228.8 million from $3.1 billion at March 31, 2020 to
$2.9 billion at August 5, 2020.
- The Company is in discussions with a group of financial
institutions to refinance the existing debt on eight of its vessels
which, if consummated, is expected to increase the Company’s
liquidity by an additional $80 million, after the repayment of
existing debt. These refinancings are expected to be agreed
in the next few months, and the drawdowns are expected to occur
before the end of 2020.
- In July 2020, the Company repurchased $13.8
million aggregate principal amount of its Convertible Notes
due 2022 at an average price
of $882.23 per $1,000 principal amount,
or $12.2 million.
- In May 2020, the Company's Senior Unsecured Notes due May 2020
matured and the outstanding principal balance of $53.8 million was
repaid in full. Subsequently in May 2020, the Company issued
$28.1 million aggregate principal amount of 7.0% senior unsecured
notes due June 30, 2025 (the "Senior Notes due 2025") in an
underwritten public offering. This amount includes $3.1
million related to the partial exercise of the underwriters' option
to purchase additional Senior Notes due 2025 under the same terms
and conditions. The aggregate net proceeds were approximately
$26.5 million after deducting underwriting commissions and offering
expenses.
- In May 2020, the Company executed a credit facility for up to
$225.0 million with a group of European financial institutions (the
"2020 $225.0 Million Credit Facility"). The Company drew
$101.2 million from this facility in June 2020, and the proceeds
were used to refinance the existing debt on four LR2s that were
previously financed under the ABN AMRO Credit Facility, which was
scheduled to mature during the third quarter of 2020. The
remaining availability under this credit facility is expected to be
used to refinance the existing debt on five of the Company's
vessels and scrubbers on two LR2s.
- In May 2020, the Company executed an agreement to upsize its
$179.2 million credit facility with ING Bank N.V. to $251.4
million. The upsized portion of this facility was fully drawn
in May 2020, and the proceeds were used to refinance the existing
debt on five vessels, which were previously financed under the
KEXIM Credit Facility.
- Based upon the commitments received to date, which include the
remaining availability under the 2020 $225.0 Million Credit
Facility and certain financing transactions that have been
previously announced, the Company expects to raise approximately
$56 million of aggregate additional liquidity (after the repayment
of existing debt) once all of the agreements are closed and
drawn. These drawdowns are expected to occur at varying
points in the future as several of these financings are tied to
scrubber installations on the Company’s vessels.
- In April 2020, the Company reached an agreement with its
counterparty to postpone the purchase and installation of scrubbers
on 19 of its vessels. The installation of these
scrubbers is now expected to begin not earlier than
2021.
Diluted Weighted Number of
Shares
Diluted earnings per share is determined using
the if-converted method. Under this method, the Company assumes
that its Convertible Notes due 2022, which were issued in May and
July 2018, were converted into common shares at the beginning of
each period and the interest and non-cash amortization expense
associated with these notes of $3.8 million and $7.6 million,
respectively, during the three and six months ended June 30, 2020
were not incurred. Conversion is not assumed if the results of this
calculation are anti-dilutive.
For the three and six months ended June 30,
2020, the Company's basic weighted average number of shares were
54,827,479 and 54,747,345, respectively. For the three and
six months ended June 30, 2020, the Company's diluted weighted
average number of shares were 56,318,815 and 56,525,701 (which
includes the potentially dilutive impact of unvested shares of
restricted stock and excludes the impact of the Convertible Notes
due 2022), respectively, and 61,593,958 and 61,801,095,
respectively, under the if-converted method. Given the
Company's results for the three and six months ended June 30, 2020,
earnings per diluted share were calculated under the if-converted
method as the result of this calculation was dilutive.
Novel Coronavirus (COVID-19)
Since the beginning of calendar year 2020, the
outbreak of COVID-19 that originated in China and that has spread
to most developed nations of the world has resulted in the
implementation of numerous actions taken by governments and
governmental agencies in an attempt to mitigate the spread of the
virus. These measures have resulted in a significant
reduction in global economic activity and extreme volatility in the
global financial and commodities markets (including oil).
While the reduction of economic activity
significantly reduced global demand for oil and refined petroleum
products, the extreme volatility in the oil markets and the steep
contango that developed in the prices of oil and refined petroleum
products resulted in record increases in spot TCE rates as an
abundance arbitrage and floating storage opportunities opened
up. These conditions persisted for most of the second quarter
of 2020 but began to abate in June 2020 as the underlying oil
markets stabilized.
The Company expects that the future impact
of the ongoing COVID-19 pandemic and the uncertainty in the demand
for oil and refined petroleum products will continue to cause
volatility in the commodities markets. The scale and duration
of the impact of these factors remain unknowable but could have a
material impact on our earnings, cash flow and financial condition
for the remainder of 2020 and beyond. An estimate of the impact on
the Company’s results of operations and financial
condition cannot be made at this time.
$250 Million Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its Senior
Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and
Convertible Notes due 2022, which were issued in May and July
2018.
In July 2020, the Company repurchased $13.8
million aggregate principal amount of its Convertible Notes
due 2022 at an average price
of $882.23 per $1,000 principal amount,
or $12.2 million. No other securities were repurchased
under this program during the second quarter of 2020 and through
the date of this press release.
As of the date hereof, the Company has
repurchased a total of $140.6 million of its securities under the
Securities Repurchase Program and has the authority to purchase up
to an additional $109.4 million of its securities. The Company may
repurchase its securities in the open market, at times and prices
that are considered to be appropriate by the Company, but is not
obligated under the terms of the Securities Repurchase Program to
repurchase any of its securities.
At the Market Offering
Program
In June 2020, the Company sold an aggregate of
137,067 of its common shares at an average price of $18.79 per
share for aggregate net proceeds of $2.6 million under its
previously announced “at the market” offering program pursuant to
which the Company may sell up to $100 million of its
common shares. There is $97.4 million of remaining
availability under this program as of August 5, 2020.
Conference Call
The Company has scheduled a conference call on
August 6, 2020 at 9:30 AM Eastern Daylight Time and 3:30 PM
Central European Summer Time. The dial-in information is as
follows:
US Dial-In Number: 1 (855) 861-2416
International Dial-In Number: +1 (703)
736-7422
Conference ID: 7309339
Participants should dial into the call 10
minutes before the scheduled time. The information provided on the
teleconference is only accurate at the time of the conference call,
and the Company will take no responsibility for providing updated
information.
There will also be a simultaneous live webcast
over the internet, through the Scorpio Tankers Inc. website
www.scorpiotankers.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Webcast URL:
https://edge.media-server.com/mmc/p/yaoh87zz
Current Liquidity
As of August 5, 2020, the Company
had $285.7 million in unrestricted cash and cash
equivalents.
Drydock, Scrubber and Ballast Water
Treatment Update
Set forth below is a table summarizing the
drydock, scrubber and ballast water treatment system activity that
occurred during the second quarter of 2020 and that is in progress
as of July 1, 2020:
|
|
Number of Vessels |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Aggregate Costs ($ in millions) (1) |
Aggregate Off-hire Days in Q2 2020 |
| Completed in the second
quarter of 2020 |
|
|
|
|
|
|
| LR2 |
8 |
7 |
3 |
8 |
$36.3 |
335 |
| LR1 |
2 |
— |
— |
2 |
6.0 |
12 |
| MR |
6 |
3 |
3 |
6 |
22.8 |
214 |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
16 |
10 |
6 |
16 |
$65.1 |
561 |
| |
|
|
|
|
|
|
| In progress as of July
1, 2020 |
|
|
|
|
|
|
| LR2 |
2 |
1 |
1 |
2 |
$7.4 |
75 |
| LR1 |
— |
— |
— |
— |
— |
— |
| MR |
5 |
3 |
3 |
5 |
18.5 |
126 |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
7 |
4 |
4 |
7 |
$25.9 |
201 |
(1) Aggregate costs for vessels completed
in the quarter represent the total costs incurred, some of which
may have been incurred in prior periods. Aggregate costs for
vessels in progress as of July 1, 2020 represent the total costs
incurred through that date, some of which may have been incurred in
prior periods.
Set forth below are the estimated expected
payments to be made for the Company's drydocks, ballast water
treatment system installations, and scrubber installations through
2020 (which also include actual payments made during the second
quarter of 2020 and through August 5, 2020):
| In millions of U.S.
dollars |
As of August 5, 2020 (1) (2) |
| |
|
|
|
| Q3 2020 - payments made
through August 5, 2020 |
$ |
11.9 |
|
| Q3 2020 - remaining
payments |
25.8 |
|
| Q4 2020 |
15.1 |
|
| FY 2021 |
41.3 |
|
| FY 2022 |
48.9 |
|
(1) Includes estimated cash payments for
drydocks, ballast water treatment system installations and scrubber
installations. These amounts include 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) Based upon the commitments received to
date, which include the remaining availability under the 2020
$225.0 Million Credit Facility and certain financing transactions
that have been previously announced, the Company expects to raise
approximately $56 million of aggregate additional liquidity (after
the repayment of existing debt) once all of the agreements are
closed and drawn. These drawdowns are expected to occur at
varying points in the future as several of these financings are
tied to scrubber installations on the Company’s vessels.
Set forth below are the estimated expected
number of ships and estimated expected off-hire days for the
Company's drydocks, ballast water treatment system installations,
and scrubber installations (1):
| |
Q3 2020 |
|
| |
Ships Scheduled for (2): |
Off-hire |
| |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
4 |
|
— |
|
6 |
|
282 |
|
|
LR1 |
— |
|
— |
|
1 |
|
48 |
|
|
MR |
1 |
|
1 |
|
3 |
|
188 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total Q3
2020 |
5 |
|
1 |
|
10 |
|
518 |
|
| |
|
|
|
|
| |
Q4 2020 |
|
| |
Ships Scheduled for (2): |
Off-hire |
| |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
— |
|
— |
|
1 |
|
50 |
|
|
LR1 |
1 |
|
— |
|
— |
|
20 |
|
|
MR |
— |
|
— |
|
— |
|
39 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total Q4
2020 |
1 |
|
— |
|
1 |
|
109 |
|
| |
|
|
|
|
| |
FY 2021 |
|
| |
Ships Scheduled for (2): |
Off-hire |
| |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
12 |
|
— |
|
1 |
|
280 |
|
|
LR1 |
11 |
|
— |
|
— |
|
220 |
|
|
MR |
— |
|
— |
|
8 |
|
293 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total FY
2021 |
23 |
|
— |
|
9 |
|
793 |
|
| |
|
|
|
|
| |
FY 2022 |
|
| |
Ships Scheduled for (2): |
Off-hire |
| |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
5 |
|
— |
|
— |
|
100 |
|
|
LR1 |
— |
|
— |
|
5 |
|
200 |
|
|
MR |
11 |
|
5 |
|
5 |
|
402 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total FY
2022 |
16 |
|
5 |
|
10 |
|
702 |
|
(1) The number of vessels in these tables
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 may vary as drydock, ballast water treatment
system installation and scrubber installation times are
finalized.(2) 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.(3) Represents total estimated off-hire days
during the period, including vessels that commenced work in a
previous period.
Debt
Set forth below is a summary of the Company’s
outstanding indebtedness as of the dates presented:
| |
In thousands of U.S.
Dollars |
Outstanding Principal as of March 31, 2020 |
Drawdowns and (repayments), net |
Outstanding Principal as of June 30, 2020 |
Drawdowns and (repayments), net |
Outstanding Principal as of August 5, 2020 |
| 1 |
KEXIM Credit Facility (3)
(8) |
$ |
|
|
140,191 |
|
$ |
|
|
(78,033 |
) |
$ |
|
|
62,158 |
|
(1,092 |
) |
$ |
|
|
61,066 |
|
| 2 |
ABN AMRO Credit Facility
(7) |
89,816 |
|
(89,816 |
) |
— |
|
— |
|
— |
|
| 3 |
ING Credit Facility (3) |
128,254 |
|
68,941 |
|
197,195 |
|
2,181 |
|
199,376 |
|
| 4 |
2018 NIBC Credit Facility
(1) |
30,813 |
|
2,318 |
|
33,131 |
|
(1,032 |
) |
32,099 |
|
| 5 |
2017 Credit Facility |
128,183 |
|
(3,316 |
) |
124,867 |
|
— |
|
124,867 |
|
| 6 |
Credit Agricole Credit
Facility |
88,586 |
|
(2,142 |
) |
86,444 |
|
— |
|
86,444 |
|
| 7 |
ABN AMRO / K-Sure Credit
Facility |
44,716 |
|
(963 |
) |
43,753 |
|
— |
|
43,753 |
|
| 8 |
Citibank / K-Sure Credit
Facility |
93,129 |
|
(2,104 |
) |
91,025 |
|
— |
|
91,025 |
|
| 9 |
ABN / SEB Credit Facility
(9) |
100,450 |
|
374 |
|
100,824 |
|
1,633 |
|
102,457 |
|
| 10 |
Hamburg Commercial Credit
Facility (2) |
41,355 |
|
606 |
|
41,961 |
|
— |
|
41,961 |
|
| 11 |
Prudential Credit
Facility |
54,538 |
|
(1,386 |
) |
53,152 |
|
(924 |
) |
52,228 |
|
| 12 |
2019 DNB / GIEK Credit
Facility |
31,850 |
|
(979 |
) |
30,871 |
|
— |
|
30,871 |
|
| 13 |
BNPP Sinosure Credit Facility
(8) |
42,096 |
|
22,790 |
|
64,886 |
|
— |
|
64,886 |
|
| 14 |
2020 $225.0 Million Credit
Facility (7) |
— |
|
101,200 |
|
101,200 |
|
— |
|
101,200 |
|
| 15 |
Ocean Yield Lease
Financing |
146,815 |
|
(2,715 |
) |
144,100 |
|
(937 |
) |
143,163 |
|
| 16 |
CMBFL Lease Financing |
55,836 |
|
(1,227 |
) |
54,609 |
|
— |
|
54,609 |
|
| 17 |
BCFL Lease Financing (LR2s)
(10) |
91,123 |
|
(2,086 |
) |
89,037 |
|
1,045 |
|
90,082 |
|
| 18 |
CSSC Lease Financing |
224,889 |
|
(4,327 |
) |
220,562 |
|
(1,442 |
) |
219,120 |
|
| 19 |
CSSC Scrubber Lease
Financing |
9,604 |
|
(1,372 |
) |
8,232 |
|
(457 |
) |
7,775 |
|
| 20 |
BCFL Lease Financing (MRs)
(10) |
84,964 |
|
(2,932 |
) |
82,032 |
|
958 |
|
82,990 |
|
| 21 |
2018 CMBFL Lease Financing
(4) |
123,900 |
|
7,596 |
|
131,496 |
|
— |
|
131,496 |
|
| 22 |
$116.0 Million Lease Financing
(10) |
104,322 |
|
(1,784 |
) |
102,538 |
|
5,043 |
|
107,581 |
|
| 23 |
AVIC Lease Financing |
124,361 |
|
(2,948 |
) |
121,413 |
|
— |
|
121,413 |
|
| 24 |
China Huarong Lease
Financing |
120,375 |
|
(3,375 |
) |
117,000 |
|
— |
|
117,000 |
|
| 25 |
$157.5 Million Lease
Financing |
134,407 |
|
(3,536 |
) |
130,871 |
|
— |
|
130,871 |
|
| 26 |
COSCO Lease Financing |
74,525 |
|
(1,925 |
) |
72,600 |
|
— |
|
72,600 |
|
| 27 |
IFRS 16 - Leases - 7
Handymax |
10,071 |
|
(3,279 |
) |
6,792 |
|
(794 |
) |
5,998 |
|
| 28 |
IFRS 16 - Leases - 3
MR |
42,430 |
|
(1,813 |
) |
40,617 |
|
(593 |
) |
40,024 |
|
| 29 |
$670.0 Million Lease
Financing |
601,447 |
|
(15,306 |
) |
586,141 |
|
(5,129 |
) |
581,012 |
|
| 30 |
Unsecured Senior Notes Due
2020 (5) |
53,750 |
|
(53,750 |
) |
— |
|
— |
|
— |
|
| 31 |
Unsecured Senior Notes Due
2025 (6) |
— |
|
28,100 |
|
28,100 |
|
— |
|
28,100 |
|
| 32 |
Convertible Notes Due
2022 |
203,500 |
|
— |
|
203,500 |
|
(12,205 |
) |
191,295 |
|
| |
Gross debt
outstanding |
$ |
3,220,296 |
|
$ |
(49,189 |
) |
3,171,107 |
|
$ |
(13,745 |
) |
$ |
3,157,362 |
|
| |
Cash and cash
equivalents |
119,825 |
|
— |
|
250,592 |
|
— |
|
|
|
|
285,665 |
|
| |
Net debt |
$ |
|
|
3,100,471 |
|
$ |
|
|
(49,189 |
) |
$ |
|
|
2,920,515 |
|
$ |
|
|
(13,745 |
) |
$ |
|
|
2,871,697 |
|
(1) In April 2020, the Company drew $3.1 million from its
upsized $35.7 million loan facility to partially finance the
purchase and installation of scrubbers on two vessels. The
upsized portion of this facility matures in June 2021, bears
interest at LIBOR plus a margin of 2.50% per annum and is expected
to be repaid in equal quarterly installments of approximately $0.1
million per vessel, with a balloon payment due at maturity.
(2) In April 2020, the Company drew $1.4
million from its Hamburg Commercial Bank Credit Facility to
partially finance the purchase and installation of a scrubber on
one of its vessels. This drawdown reflects the remaining
availability under this facility. All tranches (including
those previously drawn) of the Hamburg Commercial Bank Credit
Facility mature in November 2024, bear interest at LIBOR plus a
margin of 2.25% per annum and are expected to be repaid in equal
quarterly installments of approximately $0.8 million in aggregate,
with a balloon payment due at maturity.
(3) In May 2020, the Company executed an
agreement to upsize its $179.2 million credit facility with ING
Bank N.V. to $251.4 million. This upsized portion of this
facility of $72.1 million was fully drawn in May 2020, and the
proceeds were used to refinance the existing debt on five vessels
which were previously financed under the KEXIM Credit Facility. The
Company repaid $60.2 million on the KEXIM Credit Facility as part
of this transaction.
The upsized loan has a final maturity of five
years from the initial drawdown date, and bears interest at LIBOR
plus a margin. The upsized portion of the loan is scheduled to be
repaid in equal quarterly installments of approximately $2.1
million per quarter, in aggregate, for the first twelve
installments and approximately $2.0 million per quarter, in
aggregate, thereafter, with a balloon payment due at maturity. The
remaining terms and conditions, including financial covenants, are
similar to the Company’s existing credit facilities.
In July 2020, the Company drew an aggregate of
$3.3 million under the scrubber portion of the facility to
partially finance the purchase and installation of scrubbers on two
MRs and one LR2 that are currently part of this arrangement.
The drawdowns of approximately $1.1 million per vessel bear
interest at LIBOR plus a margin of 1.95%. One MR will be
repaid in seven quarterly principal payments of approximately $0.1
million with the balance due upon maturity in June 2022. The
other two vessels will be repaid in two quarterly principal
payments of approximately $0.7 million in aggregate with the
balance due upon maturity in March 2021.
(4) In May 2020, the Company drew an
aggregate of $10.1 million under the scrubber portion of its 2018
CMB Lease Financing to partially finance the purchase and
installation of scrubbers on the six MRs that are currently part of
this arrangement. The upsized portion of the lease financing
has a final maturity of 3.5 years after the first drawdown, bears
interest at LIBOR plus a margin of 3.10% per annum and will be
repaid in quarterly principal payments of approximately $0.1
million per vessel.
(5) In May 2020, the Company's Senior
Unsecured Notes due May 2020 matured and the outstanding principal
balance of $53.8 million was repaid in full.
(6) In May 2020, the Company issued $28.1
million aggregate principal amount of Senior Notes due 2025 in an
underwritten offering. This amount includes $3.1 million
related to the partial exercise of the underwriters' option to
purchase additional Senior Notes due 2025 under the same terms and
conditions. The aggregate net proceeds were approximately
$26.5 million after deducting underwriting commissions and
expenses.
(7) In May 2020, the Company executed the
2020 $225.0 Million Credit Facility with a group of European
financial institutions. In June 2020 the Company drew $101.2
million from this facility to refinance the existing debt on four
LR2s that were previously financed under the ABN AMRO Credit
Facility (which was scheduled to mature during the third quarter of
2020). The Company repaid $87.7 million on the ABN AMRO Credit
Facility as part of this transaction. The remaining
availability under this credit facility is expected to be used to
refinance the existing debt on five of the Company's vessels and
scrubbers on two LR2s.
This facility has a final maturity of five years
from the closing date of the loan, bears interest at LIBOR plus a
margin, and is expected to be repaid in equal quarterly
installments of approximately $0.6 million per vessel per quarter
with a balloon payment due at maturity. The remaining terms
and conditions, including financial covenants, are similar to the
Company’s existing credit facilities.
(8) In June 2020, the Company drew $24.9
million under its BNPP Sinosure Credit Facility to partially
finance the purchase and installation of scrubbers on 13 vessels.
This borrowing is collateralized by one of its LR2 product tankers
which was previously financed under the KEXIM Credit
Facility. The Company repaid the outstanding debt of $17.8
million on the KEXIM Credit Facility related to this vessel as part
of this transaction.
A total of approximately $67.0 million has been
drawn and there is $67.0 million of remaining availability under
the BNPP Sinosure Credit Facility. Each drawdown is split
evenly into two facilities, (i) a commercial facility (the
"Commercial Facility"), and (ii) a Sinosure facility (the "Sinosure
Facility"), which is being funded by the lenders under the
Commercial Facility and insured by the China Export & Credit
Insurance Corporation ("Sinosure"). The BNPP Sinosure
Credit Facility is split into 70 tranches each of which represent
the lesser of 85% of the purchase and installation price of 70
scrubbers, or $1.9 million per scrubber (not to exceed 65% of the
fair market value of the collateral vessels). The Sinosure
Facility and the Commercial Facility bear interest at LIBOR plus a
margin of 1.80% and 2.80% per annum, respectively. The
remaining availability under this loan facility is available for en
bloc drawdowns on September 15, 2020, December 15, 2020 and March
15, 2021. The Sinosure Facility is expected to be repaid in
10 equal semi-annual installments and the Commercial Facility is
expected to be repaid at the final maturity date of the facility,
or October 2025.
(9) In June 2020, the Company drew $3.2
million from its upsized ABN/SEB Credit Facility to partially
finance the purchase and installation of scrubbers on two
vessels. The upsized portion of this facility matures in June
2023, bears interest at LIBOR plus a margin of 2.60% per annum and
is expected to be repaid in equal quarterly installments of
approximately $0.1 million per vessel, with a balloon payment due
at maturity.
In July 2020, the Company drew an additional
$1.6 million to partially finance the purchase and installation of
a scrubber on one of the vessels covered by the facility under the
same terms.
(10) In April 2020, the Company executed
agreements to increase the borrowing capacities of several of its
lease financing arrangements by up to $1.9 million per vessel, the
proceeds of which are to be used to partially finance the purchase
and installation of scrubbers on certain vessels. Three
vessels are under the BCFL Lease Financing (LR2s) arrangement, five
vessels are under the BCFL Lease Financing (MRs) arrangement, four
vessels are under the $116.0 Million Lease Financing arrangement
and three vessels are under the IFRS-16 - Leases - 3 MR arrangement
for an aggregate of fifteen vessels. Each agreement will be
for a fixed term of three years at the rate of up to $1,910 per
vessel per day to be allocated to principal and interest.
In July 2020, the Company drew an aggregate of
$9.4 million on these agreements to partially finance the purchase
and installation of scrubbers on five vessels as follows: (i) $1.8
million on one vessel under the BCFL Lease Financing (LR2s)
arrangement; (ii) $1.9 million on one vessel under the BCFL
Lease Financing (MRs) arrangement; and (iii) $5.7 million on three
vessels under the $116.0 Million Lease Financing
arrangement.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of June 30, 2020, which includes principal
amounts due under secured credit facilities, Convertible Notes due
2022, lease financing arrangements, the Senior Notes due 2025, and
lease liabilities under IFRS 16 (which also include actual payments
made during the second quarter of 2020 and through August 5,
2020):
| In millions of U.S.
dollars |
|
As of June 30, 2020 (1) |
| Q3 2020 - principal payments
made through August 5, 2020 |
|
$ |
|
|
28.0 |
|
| Q3 2020 - remaining principal
payments |
|
49.6 |
|
| Q4 2020 |
|
74.1 |
|
| Q1 2021 (2) |
|
156.9 |
|
| Q2 2021 (3) |
|
99.8 |
|
| Q3 2021 |
|
66.6 |
|
| Q4 2021 |
|
70.0 |
|
| 2022 and thereafter |
|
2,626.1 |
|
| |
|
$ |
3,171.1 |
|
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of June
30, 2020 and do not incorporate the impact of any of the Company’s
new financing initiatives which have not closed as of that
date.
(2) Repayments include the maturities of
the Company's KEXIM Credit Facility for $57.9 million and two
tranches of the ING Credit Facility for $29.6 million. As of
the date of this press release, the Company has received
commitments to refinance the amounts borrowed on the KEXIM Credit
Facility (the timing of this refinancing may be impacted by the
timing of installations of scrubbers on certain vessels). The
Company expects to commence refinancing discussions on the ING
Credit Facility during the fourth quarter of 2020.
(3) Repayments include the maturity of the
Company's NIBC Credit Facility for $30.0 million. The
Company expects to commence refinancing discussions on the NIBC
Credit Facility during the fourth quarter of 2020.
Explanation of Variances on the Second
Quarter of 2020 Financial Results Compared to the Second Quarter of
2019
For the three months ended June 30, 2020, the
Company recorded net income of $143.9 million compared to net loss
of $29.7 million for the three months ended June 30, 2019. 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 June 30, 2020 and 2019:
| |
|
|
For the three months ended June 30, |
| In thousands of
U.S. dollars |
|
2020 |
|
2019 |
| |
Vessel revenue |
|
$ |
346,239 |
|
|
$ |
150,805 |
|
| |
Voyage expenses |
|
(2,906 |
) |
|
(1,328 |
) |
| |
TCE
revenue |
|
$ |
343,333 |
|
|
$ |
149,477 |
|
- TCE revenue for the three months ended June 30, 2020 increased
by $193.9 million to $343.3 million, from $149.5 million for the
three months ended June 30, 2019. Overall average TCE revenue per
day increased to $29,693 per day during the three months ended June
30, 2020, from $14,348 per day during the three months ended June
30, 2019.During the second quarter of 2020, travel restrictions and
other preventive measures to control the spread of the COVID-19
pandemic resulted in a precipitous decline in oil demand. A
lack of corresponding production and refinery cuts resulted in a
supply glut of crude oil and refined petroleum products, which was
exacerbated by extreme oil price volatility brought on from the
Russia-Saudi Arabia oil price war. This oversupply of petroleum
products resulted in a steep contango in oil prices which led to an
abundance of arbitrage opportunities of both crude and refined
petroleum products and record floating storage. These market
conditions, which began in March 2020, drove spot TCE rates to
record levels resulting in the second quarter of 2020 being the
Company's most profitable quarter in its history. In June
2020, the oil markets began to stabilize as global economies slowly
re-opened, thus limiting arbitrage opportunities and resulting in
the drawdown of accumulated inventories. Consequently,
trading volumes and spot TCE rates decreased towards the end of the
second quarter and have remained at lower levels through the date
of this press release.The increase in TCE revenue in the second
quarter of 2020 as compared to the second quarter of 2019 was also
affected by an increase in the number of the Company's vessels to
an average of 136.8 operating vessels during the three months ended
June 30, 2020 from an average of 119.0 operating vessels during the
three months ended June 30, 2019, which was primarily the result of
the Company's acquisition of leasehold interests in 19 vessels (11
MRs, four LR2s, and four MRs then under construction) from
Trafigura Maritime Logistics Pte. Ltd. in September 2019 (the
"Trafigura Transaction"). Three of the MRs acquired that were then
under construction were delivered in the first quarter of
2020.
- Vessel operating costs for the three months ended June 30, 2020
increased by $11.0 million to $79.8 million, from $68.8 million for
the three months ended June 30, 2019. This increase was
primarily due to the Trafigura Transaction. Three of the MRs
acquired that were then under construction were delivered in the
first quarter of 2020 and thus operated for the entirety of the
second quarter of 2020. Vessel operating costs per day
remained largely consistent, increasing slightly to $6,407 per day
for the three months ended June 30, 2020 from $6,351 per day for
the three months ended June 30, 2019.
- Depreciation expense - owned or sale leaseback vessels for the
three months ended June 30, 2020 increased by $3.7 million to $48.1
million, from $44.4 million for the three months ended June 30,
2019. The increase was due to the Company's drydock, scrubber
and ballast water treatment system installations that have taken
place over the preceding 12-month period. Depreciation
expense in future periods is expected to increase as the Company
continues the installation of ballast water treatment systems
and/or scrubbers on certain of its vessels in 2020 and beyond. The
Company expects to depreciate the majority of the cost of this
equipment over each vessel's remaining useful life.
- Depreciation expense - right of use assets for the three months
ended June 30, 2020 increased by $7.7 million to $13.4 million from
$5.9 million for the three months ended June 30, 2019.
Depreciation expense - right of use assets reflects the
straight-line depreciation expense recorded under IFRS 16 -
Leases. Right of use asset depreciation expense increased as
a result of the Trafigura Transaction. Three of the MRs
acquired that were then under construction were delivered in the
first quarter of 2020 and all vessels acquired as part of the
Trafigura Transaction are being accounted for as right of use
assets under IFRS 16. The right of use asset depreciation for
these vessels is approximately $0.2 million per MR per month and
$0.3 million per LR2 per month. In addition to the leasehold
interests acquired as part of the Trafigura Transaction, the
Company also had three MRs and seven Handymax leases that were
accounted for under IFRS 16 during the second quarter of
2020. The bareboat charters on two of these Handymax vessels
expired in June of 2020 and a third expired in July 2020.
- General and administrative expenses for the three months ended
June 30, 2020, increased by $3.2 million to $18.7 million, from
$15.5 million for the three months ended June 30, 2019. This
increase was primarily driven by compensation expenses, including
an increase in restricted stock amortization. General and
administrative expenses in future periods are expected to reflect a
similar run-rate to that which was incurred during the first six
months of 2020.
- Financial expenses for the three months ended June 30, 2020
decreased by $8.2 million to $39.1 million, from $47.3 million for
the three months ended June 30, 2019. The decrease was
primarily driven by significant decreases in LIBOR rates, which
underpin all of the Company's variable rate borrowings, and which
have collapsed since the onset of the COVID-19 pandemic.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
| In thousands of
U.S. dollars except per share and share data |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
|
|
|
|
|
|
| |
Vessel revenue |
$ |
346,239 |
|
|
$ |
150,805 |
|
|
$ |
600,407 |
|
|
$ |
346,635 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
| |
Vessel operating costs |
(79,758 |
) |
|
(68,776 |
) |
|
(161,221 |
) |
|
(138,152 |
) |
| |
Voyage expenses |
(2,906 |
) |
|
(1,328 |
) |
|
(7,125 |
) |
|
(1,622 |
) |
| |
Charterhire |
— |
|
|
— |
|
|
— |
|
|
(4,399 |
) |
| |
Depreciation - owned or sale
leaseback vessels |
(48,102 |
) |
|
(44,369 |
) |
|
(94,943 |
) |
|
(88,183 |
) |
| |
Depreciation - right of use
assets |
(13,609 |
) |
|
(5,895 |
) |
|
(26,806 |
) |
|
(8,030 |
) |
| |
General and administrative
expenses |
(18,747 |
) |
|
(15,528 |
) |
|
(36,010 |
) |
|
(31,240 |
) |
| |
Total operating expenses |
(163,122 |
) |
|
(135,896 |
) |
|
(326,105 |
) |
|
(271,626 |
) |
| Operating
income |
183,117 |
|
|
14,909 |
|
|
274,302 |
|
|
75,009 |
|
| Other
(expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(39,127 |
) |
|
(47,327 |
) |
|
(83,892 |
) |
|
(96,083 |
) |
| |
Financial income |
295 |
|
|
2,725 |
|
|
860 |
|
|
5,843 |
|
| |
Other expenses, net |
(344 |
) |
|
(27 |
) |
|
(702 |
) |
|
(13 |
) |
| |
Total other expense, net |
(39,176 |
) |
|
(44,629 |
) |
|
(83,734 |
) |
|
(90,253 |
) |
| Net income
/ (loss) |
$ |
143,941 |
|
|
$ |
(29,720 |
) |
|
$ |
190,568 |
|
|
$ |
(15,244 |
) |
| |
|
|
|
|
|
|
|
|
| Earnings /
(Loss) per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
2.63 |
|
|
$ |
(0.62 |
) |
|
$ |
3.48 |
|
|
$ |
(0.32 |
) |
| |
Diluted |
$ |
2.40 |
|
|
$ |
(0.62 |
) |
|
$ |
3.21 |
|
|
$ |
(0.32 |
) |
| |
Basic weighted average shares
outstanding |
54,827,479 |
|
|
48,148,885 |
|
|
54,747,345 |
|
|
48,109,924 |
|
| |
Diluted weighted average
shares outstanding (1) |
61,593,958 |
|
|
48,148,885 |
|
|
61,801,095 |
|
|
48,109,924 |
|
(1) The computation of diluted earnings per
share includes the effect of potentially dilutive unvested shares
of restricted stock and the Convertible Notes due 2022 for the
three and six months ended June 30, 2020. The effect of
potentially dilutive securities relating to the Company's
Convertible Notes due 2022 was included in the computation of
diluted earnings per share for the three and six months ended June
30, 2020 as their effect was dilutive under the if-converted
method.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In thousands of U.S.
dollars |
June 30, 2020 |
|
December 31, 2019 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
250,592 |
|
|
$ |
202,303 |
|
| Accounts receivable |
114,925 |
|
|
78,174 |
|
| Prepaid expenses and other
current assets |
11,856 |
|
|
13,855 |
|
| Inventories |
9,806 |
|
|
8,646 |
|
| Total current
assets |
387,179 |
|
|
302,978 |
|
| Non-current
assets |
|
|
|
| Vessels and drydock |
4,062,574 |
|
|
4,008,158 |
|
| Right of use assets |
791,927 |
|
|
697,903 |
|
| Other assets |
83,688 |
|
|
131,139 |
|
| Goodwill |
11,539 |
|
|
11,539 |
|
| Restricted cash |
12,293 |
|
|
12,293 |
|
| Total non-current
assets |
4,962,021 |
|
|
4,861,032 |
|
| Total
assets |
$ |
5,349,200 |
|
|
$ |
5,164,010 |
|
| Current
liabilities |
|
|
|
| Current portion of long-term
debt |
$ |
213,928 |
|
|
$ |
235,482 |
|
| Finance lease liability |
126,275 |
|
|
122,229 |
|
| Lease liability - IFRS 16 |
62,255 |
|
|
63,946 |
|
| Accounts payable |
17,373 |
|
|
23,122 |
|
| Accrued expenses |
33,663 |
|
|
41,452 |
|
| Total current
liabilities |
453,494 |
|
|
486,231 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
1,009,565 |
|
|
999,268 |
|
| Finance lease liability |
1,141,108 |
|
|
1,195,494 |
|
| Lease liability - IFRS 16 |
571,295 |
|
|
506,028 |
|
| Total non-current
liabilities |
2,721,968 |
|
|
2,700,790 |
|
| Total
liabilities |
3,175,462 |
|
|
3,187,021 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and fully
paid-in share capital: |
|
|
|
| Share capital |
652 |
|
|
646 |
|
| Additional paid-in
capital |
2,848,623 |
|
|
2,842,446 |
|
| Treasury shares |
(467,057 |
) |
|
(467,057 |
) |
| Accumulated deficit |
(208,480 |
) |
|
(399,046 |
) |
| Total shareholders'
equity |
2,173,738 |
|
|
1,976,989 |
|
| Total liabilities and
shareholders' equity |
$ |
5,349,200 |
|
|
$ |
5,164,010 |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows(unaudited)
| |
For the six months ended June 30, |
| In thousands of U.S.
dollars |
2020 |
|
2019 |
| Operating
activities |
|
|
|
|
Net income |
$ |
190,568 |
|
|
$ |
(15,244 |
) |
| Depreciation - owned or
finance leased vessels |
94,943 |
|
|
88,183 |
|
| Depreciation - right of use
assets |
26,806 |
|
|
8,030 |
|
| Amortization of restricted
stock |
15,355 |
|
|
13,860 |
|
| Amortization of deferred
financing fees |
3,086 |
|
|
4,088 |
|
| Write-off of deferred
financing fees |
313 |
|
|
275 |
|
| Accretion of convertible
notes |
4,565 |
|
|
6,995 |
|
| Accretion of fair value
measurement on debt assumed in business combinations |
1,742 |
|
|
1,827 |
|
| |
337,378 |
|
|
108,014 |
|
| Changes in assets and
liabilities: |
|
|
|
| Increase in inventories |
(1,160 |
) |
|
(461 |
) |
| (Increase) / decrease in
accounts receivable |
(36,748 |
) |
|
13,248 |
|
| Decrease / (increase) in
prepaid expenses and other current assets |
1,998 |
|
|
(175 |
) |
| Decrease / (increase) in other
assets |
666 |
|
|
(2,807 |
) |
| (Decrease) / increase in
accounts payable |
(5,423 |
) |
|
1,186 |
|
| (Decrease) / increase in
accrued expenses |
(4,616 |
) |
|
2,272 |
|
| |
(45,283 |
) |
|
13,263 |
|
| Net cash inflow from
operating activities |
292,095 |
|
|
121,277 |
|
| Investing
activities |
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
finance leased and bareboat-in vessels) |
(119,805 |
) |
|
(59,688 |
) |
| Net cash outflow from
investing activities |
(119,805 |
) |
|
(59,688 |
) |
| Financing
activities |
|
|
|
| Debt repayments |
(381,657 |
) |
|
(166,755 |
) |
| Issuance of debt |
318,194 |
|
|
— |
|
| Debt issuance costs |
(9,706 |
) |
|
(1,288 |
) |
| Principal repayments on lease
liability - IFRS 16 |
(41,668 |
) |
|
(7,129 |
) |
| Increase in restricted
cash |
— |
|
|
(9 |
) |
| Repayment of convertible
notes |
— |
|
|
(2,266 |
) |
| Gross proceeds from issuance
of common stock |
2,601 |
|
|
— |
|
| Equity issuance costs |
(26 |
) |
|
(295 |
) |
| Dividends paid |
(11,739 |
) |
|
(10,279 |
) |
| Repurchase of common
stock |
— |
|
|
(1 |
) |
| Net cash outflow from
financing activities |
(124,001 |
) |
|
(188,022 |
) |
| Increase / (decrease)
in cash and cash equivalents |
48,289 |
|
|
(126,433 |
) |
| Cash and cash equivalents at
January 1, |
202,303 |
|
|
593,652 |
|
| Cash and cash
equivalents at June 30, |
$ |
250,592 |
|
|
$ |
467,219 |
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the six
months ended June 30, 2020 and
2019(unaudited)
| |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Adjusted EBITDA(1)
(in thousands of U.S. dollars except Fleet
Data) |
|
$ |
251,993 |
|
|
$ |
71,821 |
|
|
$ |
410,704 |
|
|
$ |
185,068 |
|
| |
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
| TCE per day(2) |
|
$ |
29,693 |
|
|
$ |
14,348 |
|
|
$ |
26,250 |
|
|
$ |
16,470 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,407 |
|
|
6,351 |
|
|
$ |
6,499 |
|
|
$ |
6,414 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
46,988 |
|
|
$ |
16,974 |
|
|
$ |
36,503 |
|
|
$ |
19,948 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,656 |
|
|
6,687 |
|
|
$ |
6,699 |
|
|
$ |
6,748 |
|
| Average number of vessels |
|
42.0 |
|
|
38.0 |
|
|
42.0 |
|
|
38.0 |
|
| |
|
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
35,794 |
|
|
$ |
14,527 |
|
|
$ |
28,701 |
|
|
$ |
16,221 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,891 |
|
|
$ |
6,159 |
|
|
$ |
6,785 |
|
|
$ |
6,377 |
|
| Average number of vessels |
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
21,508 |
|
|
$ |
13,436 |
|
|
$ |
21,196 |
|
|
$ |
14,594 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,161 |
|
|
$ |
6,148 |
|
|
$ |
6,291 |
|
|
$ |
6,235 |
|
| Average number of vessels |
|
62.0 |
|
|
48.0 |
|
|
61.4 |
|
|
48.2 |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
17,698 |
|
|
$ |
11,520 |
|
|
$ |
20,117 |
|
|
$ |
14,644 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,359 |
|
|
$ |
6,318 |
|
|
$ |
6,548 |
|
|
$ |
6,240 |
|
| Average number of vessels |
|
20.8 |
|
|
21.0 |
|
|
20.9 |
|
|
21.0 |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of vessels |
|
136.8 |
|
|
119.0 |
|
|
136.3 |
|
|
119.2 |
|
| |
|
|
|
|
|
|
|
|
| Drydock |
|
|
|
|
|
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments for owned,
sale leaseback and bareboat chartered-in vessels (in thousands of
U.S. dollars) |
|
$ |
56,319 |
|
|
$ |
41,448 |
|
|
$ |
119,805 |
|
|
$ |
59,688 |
|
|
(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 the vessel is owned,
finance leased or chartered-in less the number of days the vessel
is 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 the owned, finance leased or bareboat chartered-in
vessels, before deducting available days due to off-hire days and
days in drydock. Operating days is a measurement that is only
applicable to our owned, finance leased or bareboat chartered-in
vessels, not our time chartered-in vessels. |
Fleet list as of August 5,
2020
| |
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) |
|
MR |
|
Yes |
|
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
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 Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
21 |
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
22 |
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
23 |
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
24 |
STI Texas City |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
25 |
STI Meraux |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
26 |
STI San Antonio |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
27 |
STI Venere |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
28 |
STI Virtus |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
29 |
STI Aqua |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
30 |
STI Dama |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
31 |
STI Benicia |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
32 |
STI Regina |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
33 |
STI St. Charles |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
34 |
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
35 |
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
36 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
37 |
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
38 |
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
39 |
STI Memphis |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
40 |
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
41 |
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
42 |
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
43 |
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
44 |
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
45 |
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
46 |
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
47 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
48 |
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
49 |
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
50 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
51 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
52 |
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
53 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
54 |
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
55 |
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
56 |
STI San Telmo |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
57 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
58 |
STI Esles II |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
59 |
STI Jardins |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
60 |
STI Magic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
61 |
STI Majestic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
62 |
STI Mystery |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
63 |
STI Marvel |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
64 |
STI Magnetic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
65 |
STI Millennia |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
66 |
STI Master |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
67 |
STI Mythic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
68 |
STI Marshall |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
69 |
STI Modest |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
70 |
STI Maverick |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
71 |
STI Miracle |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
72 |
STI Maestro |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
73 |
STI Mighty |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
74 |
STI Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
75 |
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
76 |
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
77 |
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
78 |
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
79 |
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
80 |
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
81 |
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
82 |
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
83 |
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
84 |
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
85 |
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
86 |
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
87 |
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
88 |
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
89 |
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
90 |
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
91 |
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
92 |
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
93 |
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
94 |
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
95 |
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
96 |
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
97 |
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
98 |
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
99 |
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
100 |
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
101 |
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
102 |
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
103 |
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
104 |
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
105 |
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
106 |
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
107 |
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
108 |
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
109 |
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
110 |
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
111 |
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
112 |
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
113 |
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
114 |
STI Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
115 |
STI Goal |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
116 |
STI Nautilus |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
117 |
STI Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
118 |
STI Guide |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
119 |
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
120 |
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
121 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
122 |
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
123 |
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
124 |
STI Lobelia |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
125 |
STI Lotus |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
126 |
STI Lily |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
127 |
STI Lavender |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
128 |
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
129 |
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
130 |
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
131 |
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
132 |
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
|
133 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
|
134 |
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned, sale
leaseback and bareboat chartered-in fleet DWT |
|
|
|
9,324,548 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Leasehold
newbuilding currently under construction |
|
|
|
|
|
|
|
|
|
|
|
| |
Hull S471 - TBN STI
Maximus |
|
HVS |
(7 |
) |
50,000 |
|
|
|
|
|
MR |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total leasehold
newbuilding product tankers DWT |
|
50,000 |
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
9,374,548 |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
This vessel operates 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 the Scorpio LR1 Pool, or SLR1P. SLR1P is a
Scorpio Pool and is operated by SCM. SLR1P and SCM are related
parties to the Company. |
|
(4 |
) |
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. |
|
(5 |
) |
In March 2019, we entered into a new bareboat charter-in agreement
on a previously bareboat chartered-in vessel. The term of the
agreement is for two years at a bareboat rate of $6,300 per day.
The agreement is expected to expire on March 31, 2021. |
|
(6 |
) |
In April 2017, we sold and leased back this vessel, on a bareboat
basis, for a period of up to eight years for $8,800 per day.
The sales price was $29.0 million per vessel, and we have the
option to purchase this vessel beginning at the end of the fifth
year of the agreement through the end of the eighth year of the
agreement, at market-based prices. Additionally, a deposit of $4.35
million per vessel was retained by the buyer and will either be
applied to the purchase price of the vessel if a purchase option is
exercised or refunded to us at the expiration of the
agreement. |
|
(7 |
) |
The leasehold interest in this vessel was acquired from Trafigura
in September 2019 as part of the Trafigura Transaction and this
vessel is currently under construction at Hyundai-Vietnam
Shipbuilding Co., Ltd. with delivery expected in the third quarter
of 2020. |
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 2019 and 2020 were as
follows:
|
Date paid |
Dividends per commonshare |
|
March 2019 |
$0.100 |
|
June 2019 |
$0.100 |
|
September 2019 |
$0.100 |
|
December 2019 |
$0.100 |
|
March 2020 |
$0.100 |
|
June 2020 |
$0.100 |
On August 5, 2020, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per share,
payable on or about September 29, 2020 to all shareholders of
record as of September 9, 2020 (the record date). As of
August 5, 2020, there were 58,807,747 common shares of the
Company outstanding.
$250 Million Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its Senior
Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and
Convertible Notes due 2022, which were issued in May and July
2018.
In July 2020, the Company repurchased $13.8
million aggregate principal amount of its Convertible Notes due
2022 at an average price
of $882.23 per $1,000 principal amount,
or $12.2 million. No other securities were repurchased
under this program during the second quarter of 2020 and through
the date of this press release.
As of the date hereof, the Company has
repurchased a total of $140.6 million of its securities under the
Securities Repurchase Program and has the authority to purchase up
to an additional $109.4 million of its securities. The Company may
repurchase its securities in the open market, at times and prices
that are considered to be appropriate by the Company, but is not
obligated under the terms of the Securities Repurchase Program to
repurchase any of its securities.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns, finance leases or bareboat charters-in 134
product tankers (42 LR2 tankers, 12 LR1 tankers, 62 MR tankers and
18 Handymax tankers) with an average age of 4.7 years. In addition,
the Company will bareboat charter-in one MR tanker that is
currently under construction and is scheduled to be delivered in
September 2020. Additional information about the Company is
available at the Company's website www.scorpiotankers.com, which is
not a part of 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 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 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 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 Second Quarter of 2020 Financial Results Compared to the
Second Quarter of 2019". 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 / (Loss) to Adjusted Net
Income / (Loss)
| |
|
|
For the
three months ended June 30, 2020 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of U.S. dollars except per share
data |
|
Amount |
|
basic |
|
diluted |
|
|
|
Net
income |
|
$ |
143,941 |
|
|
$ |
2.63 |
|
|
$ |
2.40 |
|
|
| |
Adjustment: |
|
|
|
|
|
|
|
| |
Deferred financing fees write-off |
|
313 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Adjusted net income |
|
$ |
144,254 |
|
|
$ |
2.63 |
|
(1) |
$ |
2.40 |
|
(1) |
There were no Non-IFRS adjustments to the Net Loss for the three
months ended June 30, 2019.
| |
|
|
For the six
months ended June 30, 2020 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of U.S. dollars except per share
data |
|
Amount |
|
basic |
|
diluted |
|
|
|
Net
income |
|
$ |
190,568 |
|
|
$ |
3.48 |
|
|
$ |
3.21 |
|
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred financing fees write-off |
|
313 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Adjusted net income |
|
$ |
190,881 |
|
|
$ |
3.49 |
|
|
$ |
3.21 |
|
(1) |
| |
|
|
For the six
months ended June 30, 2019 |
| |
|
|
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars except per share
data |
|
Amount |
|
basic |
|
diluted |
| |
Net loss |
|
$ |
(15,244 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.32 |
) |
| |
Adjustment: |
|
|
|
|
|
|
| |
Deferred financing fees write-off |
|
275 |
|
|
0.01 |
|
|
0.01 |
|
| |
Adjusted net loss |
|
$ |
(14,969 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.31 |
) |
(1) Summation differences due to rounding.
Reconciliation of Net Income / (Loss) to Adjusted
EBITDA
| |
|
|
For the
three months ended June 30, |
|
For the six
months ended June 30, |
| In thousands of U.S. dollars |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| |
Net income / (loss) |
|
$ |
143,941 |
|
|
$ |
(29,720 |
) |
|
$ |
190,568 |
|
|
$ |
(15,244 |
) |
| |
Financial expenses |
|
39,127 |
|
|
47,327 |
|
|
83,892 |
|
|
96,083 |
|
| |
Financial income |
|
(295 |
) |
|
(2,725 |
) |
|
(860 |
) |
|
(5,843 |
) |
| |
Depreciation - owned or finance leased vessels |
|
48,102 |
|
|
44,369 |
|
|
94,943 |
|
|
88,183 |
|
| |
Depreciation - right of use assets |
|
13,609 |
|
|
5,895 |
|
|
26,806 |
|
|
8,030 |
|
| |
Amortization of restricted stock |
|
7,509 |
|
|
6,675 |
|
|
15,355 |
|
|
13,859 |
|
| |
Adjusted EBITDA |
|
$ |
251,993 |
|
|
$ |
71,821 |
|
|
$ |
410,704 |
|
|
$ |
185,068 |
|
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 for the
management, length and severity of the ongoing novel coronavirus
(COVID-19) outbreak, including its 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, 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.
Scorpio Tankers Inc.212-542-1616
Scorpio Tankers (NYSE:SBBA)
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