Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q3 2024 Earnings Presentation
28 slides from Scorpio Tankers's earnings presentation, Oct 29, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Scorpio Tankers Inc. Third Quarter 2024 Earnings Presentation October 29, 2024
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 2024 Call Agenda
Q3 2024 Call Agenda 1. Q3 2024 Highlights 2. Product Tanker Market 3. Financial Highlights 4. Conclusion 5. Q&A
Slide 4: Q3 2024 Highlights
Q3 2024 Highlights 4
Slide 5: Financial Highlights
Financial Highlights Financial Results Quarterly TCE Rates (Includes Vessels on Time Charter) • Adj EBITDA of $166.1 million (1) $USD per day Q3-23 Q3-24 • Adj net income of $87.7 million or $1.83 basic and $1.75 diluted earnings per share (1) Significant Debt Repayment $36,288 • From July 1, 2024,
Slide 6: Product Tanker Market
Product Tanker Market 6
Slide 7: Short Term Market Update
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $USD per day Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Monthly MR & LR2 Spot Rates Aug-21 Clarksons Shipping Intelligence, October 2024 Sep-21 Oct-21 Nov-21 Short Term Market Update Dec-21 Jan-22 Feb-22 Mar-22
Slide 8: Refinery Maintenance Winds Down as Seasonality Demand Strengthens
Refinery Maintenance Winds Down as Seasonality Demand Strengthens Refinery Maintenance (Capacity Offline) (1) Average Weighted Clean and Dirty Tanker Earnings Index (Since 1990) (2) Million barrels per day Asia Pacific North America Europe Latin America FSU Middle East Africa Index Q1 Q2 Q3 Q4 15 18
Slide 9: Crude Vessels Which Carried Clean Products are Moving Back to Dirty
Crude Vessels Which Carried Clean Products are Moving Back to Dirty Easing Crude Tankers Carrying Clean Products & Wider Spread (1)(2) Snapshot of Crude Tanker Cleanup Behavior After Discharging CPP (2) $USD per day VLCC+Suezmax Carrying Clean Volume(RHS) Million barrels Vessel Count VLCC+ Suezmax V
Slide 10: Inventories are Well Below the Five-Year Averages
Inventories are Well Below the Five-Year Averages US Diesel Inventories US Gasoline Inventories Million barrels Million barrels Range Previous TD Range Previous TD 19 18 1 1 1 1 1 1 1 11 1 an Feb Mar pr May un ul ug Sep ct Nov Dec an Feb Mar pr May un ul ug Sep ct Nov Dec EIA, October 2024 10
Slide 11: Refined Product Demand & Seaborne Exports Remains Strong
Refined Product Demand & Seaborne Exports Remains Strong Global Refined Product Demand (1) Seaborne Refined Product Exports (2) Million barrels per day Diesel Gasoline Jet Naphtha Fuel Oil Million barrels per day Previous 5Y Range 2024 YTD CPP Exports Previous 5Y AVG 90.0 22.0 80.4 79.6 80.5 80.6 78
Slide 12: Ton Mile Demand Increases as Refining Capacity Moves Away from the Consumer
Ton Mile Demand Increases as Refining Capacity Moves Away from the Consumer Ton Mile Demand Since 2019 (1) Announced Refinery Closures (2) Index = 100, Base January 2019 Ton Mile Demand (Excl. Russia) Ton Mile Demand (Incl. Russia) Million barrels per day Africa 130 2.5 Asia Pacific Europe FSU 125 L
Slide 13: Vessels Continue to Transit Around the Cape of Good Hope
Vessels Continue to Transit Around the Cape of Good Hope Product Tankers Continue to Transit Around the Cape of Good Hope (1) Middle East Refinery Capacity & Trade Routes(1)(2) Million barrels per day Via COGH Via Suez 4.5 4.0 3.8 3.6 3.5 3.5 3.3 3.3 Suez Canal 3.2 3.1 3.2 3.1 3.6 mb/d (2024YTD Aver
Slide 14: Majority of Aframax & LR2 Market is Focused on Crude & Dirty Products
Majority of Aframax & LR2 Market is Focused on Crude & Dirty Products Aframax & LR2 Cargo Breakdown - ~20% of Cargoes are Clean Product (1) Global Aframax & LR2 Fleet – 39% of the Fleet is LR2’s (2) Million barrels per day Clean Products Crude Oil & Dirty Products # of vessels % of Fleet Aframax LR2
Slide 15: Owners Have Ordered LR2's as Opposed to Aframax Vessels for Optionality
But wners Have rdered LR ’s as pposed to framax essels for ptionality Aframax & LR2 Newbuild Orders (2) % of LR2 Vessels Trading Clean Products (2) Number of vessels LR2 Aframax 400 70% 347 350 336 65% 300 263 60% 250 239 221 60 56% 254 55% 200 188 175 112 150 50% 96 100 140 203 45% 126 127 50 92 82
Slide 16: Product Tanker Orderbook & Fleet Average Age
Product Tanker Orderbook & Fleet Average Age Orderbook as % of Fleet vs Avg Fleet Age Global Fleet Age Breakdown by 2027 (Including Newbuildings) Orderbook as % of Fleet Average Age (Years) 70% Product TankerOrderbook % Fleet (LHS) Global Fleet - Average Age (RHS) 18 30.0% Scrap Candidates 60% 16 25
Slide 17: Significant Tanker Fleet Expected to be Phased Out Amid Mild Fleet Growth
Significant Tanker Fleet Expected to be Phased Out Amid Mild Fleet Growth 2004 Built MR Voyages by Year & Age (1) Vessels At or Above 20 Years Old (2) Million barrels per year Number of vessels HM MR LR1 LR2 Non-Russian Russian 3.5 1,400 3.2 3.0 0.4 1,200 2.8 2.7 Post Russian 0.4 Sanctions 0.2 2.5 2
Slide 18: Seaborne Exports & Ton Mile Demand to Outpace Fleet Growth
Seaborne Exports & Ton Mile Demand to Outpace Fleet Growth Product Tanker Fleet Growth (1) Seaborne Ton Mile Demand & Exports (2) Number of vessels Scenario 1 Scenario 2 Scenario 3 YoY change Seaborne Exports Growth - bmd Ton Mile Demand Growth 10.0% 8.1% 7.8% 7.0% 5.2% 4.8% 5.1% 5.0% 3.9% 4.8% 3.9%
Slide 19: Financial Highlights
Financial Highlights 19
Slide 20: Financial Highlights
Financial Highlights Financial Highlights Over Last Seven Quarters (Q1-23 through Q3-24) Debt Reduction, Share Repurchases & Dividends $USD millions $USD millions Debt Reduction / (Increase) Share Repurchases Dividends 2,500 $2,349 $516 $14 $474 $22 2,000 $54 $1,696 $261 $346 $21 1,500 $239 $208 $21
Slide 21: Continued Reduction In Leverage & Expensive Lease Financing
Continued Reduction In Leverage & Expensive Lease Financing Outstanding Indebtedness by Type Net Debt $USD millions Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $USD millions Gross Debt Outstanding Cash & Cash Equivalents $3,500 $3,164 $2,933 $3,000 $70 $2,500 $574 $1,581 $1,958
Slide 22: Debt Repayment Schedule
Debt Repayment Schedule Debt Repayment Schedule Debt Repayment from December 31, 2021, through December 31, 2024 $USD millions $USD millions Payments made through October 25, 2024 Scheduled repayments Unsecured Notes $3,500 $100.0 $3,164 $3,000 $85.2 $2,500 $1,958 $2,000 $1,618 $50.0 $70.6 $1,500 $4
Slide 23: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rates Potential Annual Cash Flow Generation After Debt Repayment (1) $USD per day $USD millions $45,679 $44,222 $1,716 $39,660 $38,813 $37,500 $36,006 $32,949 $1,355 $32,154 $34.0/Share $28,313 $28,488 $994 $23,900 $26.8/Share $19
Slide 24: Conclusion
Conclusion 24
Slide 25: Investment Highlights
Investment Highlights Company • One of the largest product tanker fleets in the world • 102 Eco (fuel-efficient) vessels on the water (1) • Fully delivered fleet with an average age of 8.6 years(1) New Slide • No newbuildings on order = $0 newbuild capex • Significant Operating Leverage • A $10,000/
Slide 26: Time-Chartered Out Vessels
Time-Chartered Out Vessels Vessel Vessel Class Term Average Rate ($/day) Commencement Date STI Memphis MR Three Years $21,000 June-22 STI Miracle MR Three Years $21,000 August-22 STI Magnetic MR Three Years $23,000 July-22 STI Marshall MR Three Years $23,000 July-22 STI Duchessa MR Three Years $25,0
Slide 27: Q&A
Q&A 27
Slide 28: www.scorpiotankers.com
www.scorpiotankers.com