Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Investor Presentation (June 2016)
22 slides from Scorpio Tankers's investor presentation, June 2016
Slide 1: Scorpio Tankers Inc. Company Presentation
0 Scorpio Tankers Inc. Scorpio Tankers Inc. Company Presentation June 2016
Slide 2: Company Overview
Tankers Inc. 1 Company Overview • Scorpio Tankers Inc. (“STNG” or “Company") is the world’s largest ECO-spec product tanker company • By Q4-17, the Company will own a fleet of 87 eco-design product tankers • 76 (1) product tankers on the water with an average age of 1.7 years 20 LR2s (110,000 DWT,
Slide 3: Product Tankers in the Oil Supply Chain
Tankers Inc. 2 Product Tankers in the Oil Supply Chain • Crude Tankers provide the marine transportation of the crude oil to the refineries. • Product Tankers provide the marine transportation of the refined products to areas of demand. • Structural demand drivers in the product tanker industry: • U
Slide 4: Product and Crude Tankers
Tankers Inc. 3 Product and Crude Tankers Tankers “Dirty” “Clean” Crude Products VLCC Suezmax Aframax Panamax Handysize LR2 LR1 Hmx/MR Handysize Vessel (200,000 + (120,000 - (80,000 - (60,000 - (< 60,000 (80,000- (60,000- (25,000- (<25,000 Size DWT) 200,00 DWT) 120,00 DWT) 80,00 DWT) DWT) 120,000 DWT
Slide 5: Product Tanker Specifications
Tankers Inc. 4 Product Tanker Specifications IMO Classes I, II, & III IMO Class I Chemical Tankers IMO Class I refers to the transportation of the most hazardous, very acidic, chemicals. The tanks can be stainless steel, epoxy or marine-line coated. IMO Class II Chemical & Product Tankers IMO Class
Slide 6: New Design Features on Scorpio Tankers' Product Tankers
Tankers Inc. 5 New Design Features on Scorpio Tankers’ Product Tankers Lower Co2 Emissions at Vapor Recovery Deepwell Pumps, Cleaning Capability for Rapid Sea & In Port System Discharge & Cargo Flexibility Bulbous Bow Mewis Duct Hydrodynamic Hull Form Enhanced Cargo Tank Coatings G-Type Larger Prope
Slide 7: Scorpio's Newbuildings Ordered at Favorable Values
Tankers Inc. 6 Scorpio’s Newbuildings Ordered at Favorable Values Historical Data 2005-2016 ($ in millions) Current Avg Max Min Scorpio Average Vessel Handymax $31 $34 $52 $28 Purchase Price MR $34 $40 $54 $34 ($ In Millions) Price LR2 $52 $59 $83 $47 Handymax $31 MR $36 LR2 $53 $90 $80 $70 $60 ($ M
Slide 8: Scorpio Well Positioned Now that Rates Have Recovered
Tankers Inc. 7 Scorpio Well Positioned Now that Rates Have Recovered LR2 MR Handymax $90,000 $80,000 $70,000 $60,000 $50,000 $/Day $40,000 $30,000 $20,000 $10,000 $0 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 Source: Clarksons Research Services, June 2016
Slide 9: Scorpio Pools Have Consistently Outperformed The Market
Tankers Inc. 8 Scorpio Pools Have Consistently Outperformed The Market Pool Performance ($/day) $25,000 Scorpio Handymax Pool Handymax Benchmark $20,000 Scorpio $15,000 Handymax Tanker Pool $10,000 (SHTP) $5,000 $0 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q
Slide 10: Product Tanker Owners & Operators
Tankers Inc. 9 Product Tanker Owners & Operators Scorpio’s trading platform operates the largest product tanker fleet in the market with over 150 vessels under commercial management Top Pool Operators Top Five Handymax & MR Owners (1) Pool Operator Handymax MR LR2 Total # Owner Vessels Scorpio 32 80
Slide 11: Product Tanker Fleet Growth
10 Product Tanker Fleet Growth Product Tanker Newbuild Contracts (Million DWT) Product Tanker Supply Growth through 2019 2013 2014 2015 2016 YTD HM/MR LR1 LR2 Total Fleet NB Contracts 17.9 6.7 11.4 0.5 CAGR 3.4% 6.0% 7.1% 4.8% 180.0 20.0 160.0 17.9 140.0 39.1 39.7 39.7 15.0 35.5 120.0 31.1 32.3 DWT
Slide 12: Global Oil Demand Continues to Increase
Tankers Inc. 11 Global Oil Demand Continues to Increase • Global oil demand is expected to grow by 7.2 mb/d between 2015 and 2021, or a CAGR growth rate of 1.2%, reaching 101.6 mb/d in 2021. • The growth rate is lower than the 1.7% per annum seen in 2009-2015 due to increasing vehicle fuel efficienc
Slide 13: Structural Drivers in Demand Dynamics for Refined Products
Tankers Inc. 12 Structural Drivers in Demand Dynamics for Refined Products • Between 2000-2016, ton miles have increased an average of 4.5% per year. • Reduction in oil prices has increased production of refined products, and consequently the quantity be transported. • US has emerged as a refined pr
Slide 14: U.S. Has Become the World's Largest Products Exporter
Tankers Inc. 13 U.S. Has Become the World’s Largest Products Exporter • In the last few years, the US refining industry has experienced an extraordinary reversal and is now the world’s largest product exporter with 4.5 mb/d of gross exports in September 2015, roughly five times as much as in January
Slide 15: Refinery Capacity Expansions Drive Demand
Tankers Inc. 14 Refinery Capacity Expansions Drive Demand • The refining industry continues to undergo massive expansion and restructuring as worldscale refining hubs in Asia, the Middle East, and United States are crowding out legacy capacity in Europe and OECD Asia Oceania. • According to Internat
Slide 16: Middle East Investing in New Refinery Capacity
Tankers Inc. 15 Middle East Investing in New Refinery Capacity • New refinery projects coming on stream in the Middle East exceed regional demand growth, resulting in increased product exports particularly middle distillates. • Europe is the most likely destination for much of the new volumes, parti
Slide 17: Product Tanker Trade Map
Tankers Inc. 16 Product Tanker Trade Map Gasoil/Diesel N. America Gasoline Gasoil/Diesel Med Far East Jet Fuel Gasoline Arabian Gulf Gasoil/Diesel Naphtha Gasoline Caribbean Gasoil/Diesel Gasoil/Diesel Gasoil/Diesel South East Asia Gasoline S. America Gasoil/Diesel Gasoil/Diesel Gasoline Inter-Regio
Slide 18: Highlights
Tankers Inc. 17 Highlights 1 World’s largest fleet of ECO-design product tankers Modern, fuel- ECO-design vessels have substantially lower fuel costs than prior generation vessels efficient fleet Newbuilds contracted at favourable prices, relative to historical averages, and at reputable yards
Slide 19: Appendix
on: STNG CeccRrio 2 Tankers Inc. NYSE Appendix
Slide 20: Appendix 1 - Operating Leverage Continues to Grow
Tankers Inc. 19 Appendix 1 - Operating Leverage Continues to Grow Class Existing To be Delivered Total Owned TC-In Total 2016 2017 Handymax 14 - - 14 5 19 (35,000 DWT) MR 42 (1) - 8 50 4 54 (52,000 DWT) LR1 - - - - 1 1 (75,000 DWT) LR2 20 3 - 23 2 25 (110,000 DWT) Total 76 3 8 87 12 99 (1) Excludes
Slide 21: Appendix 2 – Fleet List
Tankers Inc. 20 Appendix 2 – Fleet List Owned Vessels 2016 Delivery Schedule Name Year DWT Type Name Year DWT Type Name Year DWT Type STI Comandante May-14 38,000 HM STI Mayfair Oct-14 52,000 MR STI Jermyn May-16 114,000 LR2 STI Brixton Jun-14 38,000 HM STI Yorkville Oct-14 52,000 MR STI Selatar Aug
Slide 22: Appendix 3 – Largest Shareholders
Tankers Inc. 21 Appendix 3 – Largest Shareholders # Holder Ownership 1 Wellington Management Company 9.7% 2 Dimensional Fund Advisors 6.3% 3 BlackRock Fund Advisors 4.0% 4 Putnam Investment Management 3.9% 5 Daruma Capital Management 3.3% 6 Avenue Capital Management II 3.0% 7 Baron Capital Managemen