Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q3 2022 Earnings Presentation
23 slides from Scorpio Tankers's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Scorpio Tankers Inc. Third Quarter 2022 Earnings Presentation November 1, 2022
Slide 2: Disclaimer and Forward-looking Statements
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”) curr
Slide 3: Q3 2022 Call Agenda
Q3 2022 Call Agenda 1.Q3 2022 Highlights 2.Product Tanker Market 3.Financial Highlights 4.Conclusion 5.Q&A 3
Slide 4: Q3 2022 Highlights
Q3 2022 Highlights 4
Slide 5: Q3 2022 Highlights
Q3 2022 Highlights Highlights Quarterly TCE Rates ($/day) Financial Results Q1-22 Q2-22 Q3-22 • Adj EBITDA of $360.0 million $48,152 $46,231 $41,143 $41,831 • Adj net income of $264.8 million or $4.81 basic and $4.29 $36,065 $34,904 diluted earnings per share (1) $16,305 $15,949 • Dividend of $0.10
Slide 6: Year to Date Highlights
Year to Date Highlights Significant Debt Repayment Time Charter Agreements • From January 1, 2021, through October 31, 2022, the Company has Total Fixed Revenue reduced its indebtedness by $720.8 million # Vessel Name Type Year of Built Duration Daily Rate ($ Million) 1 STI Memphis MR 2014 Three Yea
Slide 7: Product Tanker Market
Product Tanker Market 7
Slide 8: Short Term Market Update
Short Term Market Update Weekly MR & LR2 Spot Earnings Since November 2021 ($/day) LR2 Eco-Middle East to Japan MR Eco-Avg Earnings $80,000 $70,000 $60,000 $50,000 USG-Latin America MR Rates Reach Record Levels $40,000 Russia Invades Ukraine $30,000 MR & LR2 spot rates continue to oscillate at stron
Slide 9: Inventories Decline as Demand Continues to Increase
Inventories Decline as Demand Continues to Increase US Crude Oil (Incl SPR) & Product (Diesel, Jet & Gasoline) Inventories (1) Refined Product Demand Expected to Increase through 2023 (2) (million barrels) Diesel Gasoline Jet Naphtha Fuel Oil 1,800 76.9 76.7 78.1 77.2 77.4 78.6 79.2 74.0 74.9 75.0 6
Slide 10: Seaborne Product Exports Increase as Regional Imbalances Persist
Seaborne Product Exports Increase as Regional Imbalances Persist Seaborne Refined Product Exports > Pre-Pandemic Levels (1) Global Diesel Supply / Demand Balance (2) (mb/d) (mb/d) CPP (Diesel, Gasoline, Naphtha & Jet) Fuel Oil 24.4 24.5 24.3 23.3 23.6 23.1 23.5 23.3 23.7 23.5 22.3 22.4 22.7 6.2 5.9
Slide 11: Refinery Changes Continue to Drive Ton Mile Demand
Refinery Changes Continue to Drive Ton Mile Demand Refinery Closures By Region (1) Upcoming Refinery CDU Capacity Additions > 200 kb/d (2) (mb/d) (mb/d) North America Europe Asia Pacific Latin America Africa Middle East Saudi Arabia Kuwait China Nigeria Oman Bahrain United States UAE India 1.5 1.0 0
Slide 12: Potential Impacts on Trade Flows from Russia's Invasion of Ukraine
Potential Impacts on Trade Flows from Russia’s Invasion of Ukraine European Imports of Russian CPP (excl Fuel Oil) Seeing Slight Decline(1) Russian Diesel Trade Flows & Potential Changes (mb/d) Europe Asia Americas Africa Other 1.8 1.8 0.1 0.1 0.2 1.5 1.5 1.5 0.1 1.5 1.4 0.1 1.4 1.3 0.3 0.2 1.3 0.1
Slide 13: Seaborne Exports & Ton Miles > Fleet Growth
Seaborne Exports & Ton Miles > Fleet Growth Orderbook as a % of Fleet at Record Lows Newbuilding Product Tanker Orders (# of Vessels) 70% MR LR1 LR2 60% 500 433 50% 400 40% 300 255 30% 186 180 179 188 20% 200 153 106 113 111 106 116 95 81 77 69 77 10% 5.0% 100 64 62 57 28 22 37 0% 13 0 24 Product Ta
Slide 14: Financial Highlights
Financial Highlights 14
Slide 15: Improving Balance Sheet, Strong Liquidity & Minimal CapEx
Improving Balance Sheet, Strong Liquidity & Minimal CapEx Outstanding Indebtedness Debt Repayment Schedule ($USD millions) ($USD millions) $3,500 $296.3 $3,164 $300.0 $2,966 $3,000 $2,652 $2,479 2,443 Payments made through October 28, 2022 $200.0 Remaining Principal Payments $2,500 $218.8 Repurchase
Slide 16: Summary of Debt & Lease Repayments
Summary of Debt & Lease Repayments Schedule of Debt Facility & Lease Repayments # Vessel Name Type Built Financing Debt Repayment ($mm) Completed/Expected* 1 STI Opera MR 2014 Lease Financing Q3-22 ($USD millions) 2 STI Venere MR 2014 Lease Financing Q3-22 3 STI Virtus MR 2014 Lease Financing Q3-22
Slide 17: Company to Reduce Indebtedness by $981 Million in 2022
Company to Reduce Indebtedness by $981 Million in 2022 Company to Reduce Outstanding Debt by $981mm in 2022 ($USD millions) $3,500 $3,164 $3,000 $685 $2,479 $2,500 $60 $219 $2,183 $18 $2,000 $1,500 $1,000 Outstanding Debt Dec 31, 2021 Debt Repayment from Dec 31, Outstanding Sep 30, 2022 Scheduled Pr
Slide 18: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment ($/day) ($USD millions) $45,611 $44,152 $1,500 $36,006 $29,693 $1,160 $1,000 $954 $748 $22,644 $542 $335 $15,100 $15,415 $500 $11,608 $11,166 $11,954 $12,615 $10,
Slide 19: Conclusion
Conclusion 19
Slide 20: Q&A
Q&A 20
Slide 21: Financials
Financials 21
Slide 22: Quarterly Financial Performance
Quarterly Financial Performance (In '000s of USD) Q3-22 Q2-22 Revenue $ 489,996 $ 405,073 Vessel operating costs (75,801) (76,923) Voyage expenses (33,721) (23,485) Charterhire - - Depreciation (50,989) (50,819) Impairment of vessels and goodwill - - G&A (26,490) (22,803) Loss on vessel sales 2,732
Slide 23: www.scorpiotankers.com
www.scorpiotankers.com