Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Pareto Securities Conference 2023
21 slides from Scorpio Tankers's conference presentation, Sep 21, 2023
Slide 1: Scorpio Tankers Inc. Pareto Securities Conference Presentation
Scorpio Tankers Inc. Pareto Securities Conference Presentation September 21, 2023
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: Scorpio Tankers at a Glance
Scorpio Tankers at a Glance • Scorpio Tankers (NYSE: STNG) is the world’s largest product tanker owner and provides the transportation of refined petroleum products • The Company’s fleet consists of 112 young and modern HM, MR, and LR2 vessels with an average age of 7.7 years • The entire fleet is E
Slide 4: Significant Increase in Company TCE Earnings Since Q2-22
Significant Increase in Company TCE Earnings Since Q2-22 Average Daily TCE Rate by Vessel Type(1) ($/day) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 $52,023 $52,065 $48,152 $46,231 $43,292 $36.9/share $41,143 $41,831 $39,526 $39,783 $38,349 $36,065 $34,904 $33,517 $28,586 $26,784 $16,305 $15,949 $14,475 LR
Slide 5: Significant Operating Leverage
Significant Operating Leverage Historical Adjusted EBITDA(1) ($USD million) $400 $360 $352 $300 $290 $286 $235 $200 $100 $79 $0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 A $10,000/day increase in average daily rates would generate ~$354 million of incremental annualized cash flow (2) 1) Please see the exp
Slide 6: Limited Refinery Maintenance
Limited Refinery Maintenance Global Refinery Maintenance (Capacity Offline) (mbpd) Asia Pacific North America Europe Latin America FSU Middle East Africa 8.0 7.2 7.0 6.7 6.6 6.0 6.0 5.4 5.1 5.2 5.0 4.0 3.5 3.2 3.0 3.1 3.0 1.9 2.0 1.0 0.0 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23
Slide 7: Refining Margins Remain at Strong Levels
Refining Margins Remain at Strong Levels Diesel Refining Margins ($/bbl) USG Europe Asia $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Source: Energy Aspects
Slide 8: US Refined Product Inventories at Historical Lows
US Refined Product Inventories at Historical Lows US Crude and Petroleum Products Stocks US Diesel Inventories (mmbbl) (mmbbl) 5Y Range 5Y AVG YTD 5Y Range 5Y AVG YTD 200 2200 190 2100 180 170 2000 160 1900 150 1800 140 130 1700 120 1600 110 100 1500 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23
Slide 9: Robust Refined Product Demand
Robust Refined Product Demand Global Refined Product Demand (mb/d) Diesel Gasoline Jet Naphtha Fuel Oil 90 81.3 81.1 78.8 79.9 79.9 79.9 76.9 77.0 76.7 76.9 77.9 75.5 75.5 7.8 74.0 7.8 6.8 69.8 7.7 7.5 7.0 7.4 8.5 8.5 7.4 6.5 8.0 8.3 60 7.6 8.2 8.1 8.2 6.5 5.4 4.9 25.4 26.7 27.0 26.2 25.6 23.6 30 28
Slide 10: Seaborne Refined Product Exports Near Record Levels
Seaborne Refined Product Exports Near Record Levels Global Seaborne CPP and DPP Exports (mb/d) CPP DPP 30.0 25.4 25.2 24.5 24.5 24.8 24.9 25.0 24.2 23.9 24.2 24.2 24.3 24.2 23.5 22.6 6.2 6.0 6.2 5.9 5.7 5.9 6.1 6.2 6.3 6.2 5.9 6.5 6.4 20.0 5.9 15.0 10.0 19.2 19.3 18.3 18.0 18.0 18.6 18.5 18.4 18.4 1
Slide 11: Spot Earnings Remain at Elevated Levels
Spot Earnings Remain at Elevated Levels Weekly MR and LR2 Spot Earnings ($/day) LR2 Eco-Middle East to Japan MR Eco-Avg Earnings $100,000 $80,000 $60,000 $40,000 $20,000 $0 Source: Clarksons Shipping Intelligence, September 2023 11
Slide 12: Grey Fleet Increases as Russian Exports Find New Markets
Grey Fleet Increases as Russian Exports Find New Markets Russian Grey Fleet Carrying CPP Post Feb 5, 2023 Sanctions(1) Russian CPP Imports by Trading Region (No. Vessels) (mb/d) Unknown MED + Black Sea Asia NW Europe LATAM MEG Africa 2.50 403 38 2.0 2.00 1.8 1.8 56 1.7 1.6 1.6 1.6 1.5 1.6 1.50 1.4 1
Slide 13: Continued Strength in Time Charters & Asset Values
Continued Strength in Time Charters & Asset Values 5Y Old MR Secondhand Prices vs. Time Charter(1) 5Y Old LR2 Secondhand Prices vs. Time Charter(1) ($USD millions) ($/day) ($USD millions) ($/day) Price (LHS) 3Y TC (RHS) Price (LHS) 3Y TC (RHS) 45 30,000 80 40,000 40 70 35,000 25,000 35 60 30,000 30
Slide 14: Newbuilding Prices Approaching Historical Highs
Newbuilding Prices Approaching Historical Highs Historical Newbuild Prices ($USD millions) MR LR2 $90 $80 $70 $60 $50 $40 $30 $20 Sep-07 May-08 Jan-09 Sep-09 May-10 Jan-11 Sep-11 May-12 Jan-13 Sep-13 May-14 Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18 Jan-19 Sep-19 May-20 Jan-21 Sep-21 May-22 Jan-23 Se
Slide 15: Asset Values Significantly Above Normal Levels
Asset Values Significantly Above Normal Levels Histogram of Monthly LR2 Prices since Nov 2006 Histogram Monthly MR Prices since Nov 2006 (Frequency) (Frequency) Sept 2023 Price Sept 2023 Price • $71m • $47m $43-48m $49-54m $55-59m $60-65m $66-70m $71-76m $77-81m $82-87m $33-36m $37-39m $40-43m $44-4
Slide 16: Strong Rate Environment & Modest Orderbook
Strong Rate Environment & Modest Orderbook Historical Clean Tanker Earnings vs. Orderbook Ratio ($/day) (% of Fleet) Clean Tanker Earnings (LHS) Orderbook as % of Fleet (RHS) 70,000 70.0% 60,000 60.0% 50,000 50.0% 40,000 40.0% 30,000 30.0% 20,000 20.0% 10,000 10.0% 0 0.0% Source: Clarksons Shipping
Slide 17: Aging Fleet with Significant Scrapping Potential
Aging Fleet with Significant Scrapping Potential Age Distribution of Active Fleet(1) (Dwt million) HM LR1 LR2 MR 16 14.4 14.0 14 12 Scrapping Candidates 11.1 10.9 10 9.5 8.5 8.8 8.6 8.3 8.5 8.1 7.9 8 6.8 7.0 6.5 6.0 6 5.7 5.2 5.3 5.2 4.9 4.6 4.3 4 3.3 3.1 3.2 2 0 28-25 24 23 22 21 20 19 18 17 16 15
Slide 18: Minimal Fleet Growth
Minimal Fleet Growth Product Tanker Fleet Growth(1) (Growth %) Scenario 1 Scenario 2 6.3% 5.8% 4.8% 4.2% 4.0% 2.7% 2.5% 2.4% 2.1% 2.2% 2.2% 2.0% 1.9% 1.8% 1.5% 0.7% 0.4% -0.4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1) Scenario 1 Historical fleet growth through 2022. Sc
Slide 19: Seaborne Exports and Ton-Miles Continue to Increase
Seaborne Exports and Ton-Miles Continue to Increase Seaborne Trade Growth(1) (Growth %) Seaborne Exports Seaborne Miles 15.0% 12.2% 10.0% 6.7% 5.0% 3.8% 3.6% 0.0% -5.0% -10.0% -15.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 1) Includes Clarksons forecasts for 2023 and 2024. Sour
Slide 20: Q&A
Q&A 20
Slide 21: www.scorpiotankers.com
www.scorpiotankers.com