Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q4 2017 Earnings Presentation
9 slides from Scorpio Tankers's earnings presentation, Feb 14, 2018
Slide 1: Scorpio Tankers Inc. Q4 2017 Earnings Presentation
Scorpio Tankers Inc. Q4 2017 Earnings Presentation February 14, 2018 1 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document may contain forward-looking statements that reflects management’s expectations for the future. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospecti
Slide 3: Scorpio has the Largest & Youngest Product Tanker Fleet
Scorpio has the Largest & Youngest Product Tanker Fleet Largest & Youngest Product Tanker Fleet Scorpio Average Age vs. Worldwide Fleet 140 14 HM & MR LR1 LR2 Avg. Age of Vessels (Owned Fleet Only) 13.0 Scorpio Tankers Active Fleet 120 12 109 100 10 9.6 9.4 38 8.1 80 75 8 8 12 7 60 56 56 55 6 52 11
Slide 4: MR's Turning 15 vs Newbuild Deliveries
MR’s Turning 15 vs Newbuild Deliveries • Certain key customers will only employ product tankers 15 years and younger • This limits trading opportunities for older tonnage and creates a two tiered market where; • Owners consider continuing to carry refined products, switching from products to crude,
Slide 5: Scorpio Pools Have Consistently Outperformed Market
Scorpio Pools Have Consistently Outperformed Market Pool Performance ($/day) $20,000 Scropio HM Handymax Benchmark (TD16 - TD18 - TC6 - BALTIC/CONT) $15,000 Scorpio Handymax Tanker Pool (SHTP) $10,000 $5,000 2H-15 1H-16 2H-16 1H-17 2H-17 $25,000 Scorpio MR Clarksons MR $20,000 Scorpio MR $15,000 Tan
Slide 6: Highlights
Highlights Year over Year: • ARA and Singapore inventories of gasoline and diesel declined 14.4% and 17.7%, respectively(1) • Asset values increased y-o-y by $2 & $2.5 million for handymax and MR vessels and $1 & $1.5 million for LR1 and LR2 vessels(2) • MR Atlantic triangular spot earnings are up 9
Slide 7: Clarksons Spot Market Average Earnings
Clarksons Spot Market Average Earnings $35,000 13-Feb-2017 13-Feb-2018 $31,450 $30,000 $25,000 $/day $20,000 $17,700 $17,000 $15,000 $11,600 $11,500 $9,900 $10,000 $8,900 $7,750 $5,000 MR Far East MR Atlantic Triangle Suezmax VLCC MR Products Tankers Crude Tankers Suezmax rates: average of WAF/Europ
Slide 8: Refining Capacity Additions: 2017 & 2018
Refining Capacity Additions: 2017 & 2018 Global Oil Products Supply: Global Oil Products Supply: Driven by 10 New Refineries in 2017 Driven by 9 New Refineries in 2018 New New Supply Supply Country Company Plant (MBPD) Country Company Plant (MBPD) 1) Qatar QatarGas Laffan (1Q 17) 65 1) Iran NIORDC P
Slide 9: Significant Operating Leverage to a Market Recovery
Significant Operating Leverage to a Market Recovery • Applying the actual TCE rates earned by the Company in 2015 to its larger fleet today, the company would generate $978 million in revenue or $3.10/share 2015A Rates Annualized Revenue Class # of Vessels Days/Yr Total Days ($/day) (Millions $USD)