Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q4 2022 Earnings Presentation
23 slides from Scorpio Tankers's earnings presentation, Feb 16, 2023
Slide 1: Fourth Quarter 2022 Earnings Presentation
Scorpio Tankers Inc. Fourth Quarter 2022 Earnings Presentation February 16, 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: Q4 2022 Call Agenda
Q4 2022 Call Agenda 1.Q4 2022 Highlights 2.Product Tanker Market 3.Financial Highlights 4.Conclusion 5.Q&A 3
Slide 4: Q4 2022 Highlights
Q4 2022 Highlights 4
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights Highlights Quarterly TCETCE Rates ($/day) Financial Results Q1-22 Q2-22 Q3-22 Q4-22 $52,023 $52,065 • Adj EBITDA of $351.8 million $48,152 $41,143 $39,783 $41,831 $46,231 $36,065 • Adj net income of $256.0 million or $4.59 basic and $4.24 $34,904 diluted earnings per share (1) $16
Slide 6: 2022 Full Year Highlights
2022 Full Year Highlights Debt Reduction by Quarter ($USD millions) Significant Debt Repayment in 2022 $521.2 • From January 1, 2021, through December 31, 2022, the Company reduced its indebtedness by $1.2 billion $313.2 New Loan Facilities $198.1 • The Company has received commitments for three sep
Slide 7: Product Tanker Market
Product Tanker Market 7
Slide 8: Short Term Market Update
Short Term Market Update Weekly MR & LR2 Spot Earnings Since January 2022 ($/day) (1) Global Refinery Maintenance (Capacity Offline) (2) ($/day) (mb/d) $100,000 LR2 Eco-Middle East to Japan MR Eco-Avg Earnings Asia Pacific North America Europe Latin America FSU Middle East Africa $80,000 7.2 7.4 7.0
Slide 9: Refined Product Demand & Seaborne Exports Continue to Increase
Refined Product Demand & Seaborne Exports Continue to Increase Refined Product Demand Expected to Increase through 2023 (1) • Global refined product demand continues (mb/d) Diesel Gasoline Jet Naphtha Fuel Oil 90.0 to increase 76.9 74.0 75.4 75.4 76.8 76.9 76.4 77.2 78.5 78.6 69.8 7.2 6.8 7.5 7.5 •
Slide 10: Refinery Changes Drive Global Trade Flows & Ton Miles
Refinery Changes Drive Global Trade Flows & Ton Miles Global Refining Capacity Additions / (Closures) Excluding China(1) Australia Refined Product Imports Increase as Refining Capacity Declines (2) (mb/d) (mb/d) Africa Asia (Excl China) Europe FSU Middle East Latin America North America CPP Product
Slide 11: Russian Diesel Trade Flows & Potential Changes
1.0 1.5 2.0 (mb/d) 1) Kpler, February 2023 Russian CPP Exports (1) Russian Diesel Trade Flows & Potential Changes - 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.1 0.2 0.3 (mb/d) (mb/d) Are Embargo Effects Already Priced In? Jan-21 Jan-21 Feb-21 Feb-21 Mar-21 Mar-21 Apr-21 Apr-21 May-21 May-21 Jun-21 Jun-21 Jul
Slide 12: Or Just Starting?
Or Just Starting? Russian CPP Exports to New Regions(1) European Weekly Diesel Imports(1) (mb/d) (mb/d) Unknown China Taiwan UAE Brazil Tunisia Morocco 1.2 Algeria Nigeria Saudi Arabia Malta India Ghana Gibraltar 3.0 1.0 2.5 0.8 0.6 2.0 0.4 1.5 0.2 1.0 0.0 06-Feb-23 03-Oct-22 17-Oct-22 31-Oct-22 14-
Slide 13: Limited Fleet Growth & Ageing Fleet
Limited Fleet Growth & Ageing Fleet Newbuilding Product Tanker Orders Fleet Age Profile as of February 2023 (# of Vessels) (# of Vessels) MR LR1 LR2 HM MR LR1 LR2 500 300 433 233 238 400 200 200 172 300 255 154 162 149 146 146 134 186 180 179 188 112 116 113 200 106 108 152 95 89 100 77 83 78 77 106
Slide 14: Seaborne Exports & Ton Miles > Fleet Growth
Seaborne Exports & Ton Miles > Fleet Growth Orderbook as a % of Fleet at Record Lows Historical Product Tanker Earnings vs. Orderbook as a % of Fleet Orderbook as % of Fleet ($/day) 70.0% 70.0% Orderbook as a % of Fleet (LHS) Clean Tanker Earnings (RHS) $70,000 60.0% 60.0% $60,000 50.0% 50.0% $50,00
Slide 15: Financial Highlights
Financial Highlights 15
Slide 16: Quarterly TCE Rates, Revenue Opex & Capex
Quarterly TCE Rates, Revenue Opex & Capex TCE Rates by Vessel Type Quarterly TCE Revenue ($/day) ($USD millions) Q1-22 Q2-22 Q3-22 Q4-22 $456.3 $460.3 $52,023 $52,065 $48,152 $46,231 $381.6 $41,143 $39,783 $41,831 $36,065 $34,904 $172.0 $16,305 $15,949 $14,475 LR2 MR HM Q1-22 Q2-22 Q3-22 Q4-22 Quart
Slide 17: 2022 Financial Highlights
2022 Financial Highlights For the Twelve Months Ending December 31, 2022 ($USD millions) $1,563 $1,081 $798 $637 ($23) ($161) ($1,206) Revenue EBITDA Operating income Net income Debt reduction Shares repurchased Dividends paid 17
Slide 18: Improving Balance Sheet, Strong Liquidity & Minimal Capex
Improving Balance Sheet, Strong Liquidity & Minimal Capex Outstanding Indebtedness Debt Repayment Schedule ($USD millions) ($USD millions) $3,500 Payments made through February 15, 2023 $200.0 $3,164 Remaining Principal Payments $2,966 Repurchase of Lease Financing $3,000 $153.3 $2,652 $2,479 $27.8
Slide 19: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment (1) ($/day) ($USD millions) $45,679 $44,152 $1,969 $37,978 $36,006 $33.2/share $1,557 $29,693 $26.2/share $1,145 $22,644 $19.3/share $15,415 $732 $15,100 $11,608
Slide 20: Investment Highlights
Investment Highlights Company Industry & Outlook Strategy • One of the largest product • Significant increase in product • Reduce leverage, maintain tanker fleets in the world tanker rates since Q1-22 liquidity and return to capital • 113 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 21: Conclusion
Conclusion 21
Slide 22: Q&A
Q&A 22
Slide 23: www.scorpiotankers.com
www.scorpiotankers.com