Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Capital Link Presentation (January 2025)
30 slides from Scorpio Tankers's conference presentation, Jan 7, 2025
Slide 1: Scorpio Tankers Inc. Capital Link Presentation
Scorpio Tankers Inc. Capital Link Presentation January 07, 2025
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: Table of Contents
Table of Contents The Company Product Tanker Market Financials Q&A Appendix
Slide 4: The Company
The Company 4
Slide 5: Scorpio Tankers At a Glance
Scorpio Tankers At a Glance Key Facts NYSE Ticker Fleet Vessels(2) NUMBER • Scorpio Tankers Inc. (“Scorpio”) is the world’s largest product tanker owner, providing marine transportation of refined petroleum products (gasoline, diesel, jet fuel and naphtha) STNG 99 • Vessels employed in well-establis
Slide 6: Investment Highlights
Investment Highlights Company • One of the largest product tanker fleets in the world • 99 Eco (fuel-efficient) vessels on the water • Fully delivered fleet with an average age of 8.8 years New Slide • No newbuildings on order = $0 newbuild capex • Significant Operating Leverage • A $10,000/day incr
Slide 7: What is a Product Tanker?
What is a Product Tanker? • Product tankers provide the marine transportation of refined petroleum products to areas of demand, whereas crude tankers provide the marine transportation of crude oil to refineries • Product tankers have coated tanks (typically epoxy) making them easy to clean and preve
Slide 8: Largest and Most Modern Product Tanker Fleet in the World
Largest and Most Modern Product Tanker Fleet in the World Scorpio’s Fleet vs. Peers Scorpio Average Age vs Worldwide Fleet Number of vessels Fleet average age HM MR LR1 LR2 Scorpio Tankers Active Fleet 20.0 17.4 Scorpio 99 16.0 Peer 1 91 13.1 Peer 2 79 12.0 11.0 10.3 Peer 3 70 8.9 8.2 Peer 4 58 8.0
Slide 9: Product Tanker Market
Product Tanker Market 9
Slide 10: Product Tanker Earnings Remain at Historically High Levels
Product Tanker Earnings Remain at Historically High Levels Product Tanker Earnings (LHS) vs. Product Tanker 10k+ DWT Deliveries (RHS) $USD per day Number of deliveries Product Tanker Deliveries Average Weighted Clean Product Tanker Earnings $70,000 35 $60,000 2020: 2022: 30 COVID-19 floating Russia
Slide 11: Rates Improving as Maintenance Eases & Crude Vessels Exit Clean Trade
Rates Improving as Maintenance Eases & Crude Vessels Exit Clean Trade Monthly MR & LR2 Spot Rates (1) Refinery Maintenance (Capacity Offline) (2) Million barrels per day LR2 Eco Middle East to Japan MR Eco Avg Earnings Million barrels per day Asia Pacific North America Europe Latin America FSU Middl
Slide 12: Global Inventories Well Below Historical Averages
Global Inventories Well Below Historical Averages US Diesel Inventories (1) EU Distillate Inventories (2) Million barrels Million barrels 5Y Range Previous 5Y AVG YTD 5Y Range Previous 5Y AVG YTD 190 360 180 340 170 320 160 150 300 140 280 130 260 120 240 110 100 220 Jan Feb Mar Apr May Jun Jul Aug
Slide 13: Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels
Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels 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 79.4 80.1
Slide 14: 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 Million barrels per day Africa Asia Pacific Europe FSU Latin America Middle East North America 130 2.5 Ton Mile Demand (Excl. Russ
Slide 15: Product Tanker Orderbook & Average Age
Product Tanker Orderbook & Average Age Orderbook as % of Fleet vs Avg Fleet Age Product Tanker Orderbook Distribution by Vessel Class Orderbook as % of Fleet Average Age (Years) % of Product Tanker Orderbook HM MR LR1 LR2 70% 60% 2007 1.3% 2008 50% 2006 36.2% 40% 2009 2005 2004 50.4% 30% 2010 20% Ja
Slide 16: 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 Products (1) Global Aframax & LR2 Fleet – 39% of the Fleet is LR2’s (2) Million barrels per day Number of vessels Aframax LR2 LR2 % of Aframax & LR2 Fleet (RHS) % of Fleet
Slide 17: Significant 2000’s Fleet Growth Expected to be Phased Out
Significant 2000’s Fleet Growth Expected to be Phased Out Product Tanker Fleet Growth Vessels At or Above 20 Years Old YoY change Cumulative number of vessels HM MR LR1 LR2 20+ yrs old % of active fleet (RHS) 1,400 35.0% 14% 30.3% 1,200 30.0% 12% 12% 11% 1,000 24.2% 25.0% 10% 10% 20.3% 800 20.0% 17.
Slide 18: Older Vessels Serve Tertiary Markets, Carry Less Cargo & Reduce Effective Fleet Growth
Older Vessels Serve Tertiary Markets, Carry Less Cargo & Reduce Effective Fleet Growth 2004 Built MR Voyages by Year & Age (1) 2023-24 Scrapping Reached Lowest Levels in ~30 Years (2) Million barrels per year Non-Russia Russian % of Product Tanker Fleet Scrapped 3.5 3.2 5.1% 3.0 0.4 2.8 2.7 Post Rus
Slide 19: 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 Number of vessels Scenario 1 Scenario 2 Scenario 3 YoY change Seaborne Exports Growth Ton Mile Demand Growth 10.0% 8.1% 7.6% 6.8% 5.2% 5.4% 4.8% 5.0% 4.9% 3.9% 4.6% 4.1% 3.7%
Slide 20: Financials
Financials 20
Slide 21: Financial Highlights
Financial Highlights Financial Highlights Over Last Seven Quarters (Q1-23 through Q3-24) $USD millions 2,500 $2,349 2,000 $1,696 1,500 $1,053 $1,038 1,000 $786 500 $121 0 TCE Revenue Adj EBITDA Adj Net income Debt Reduction Share Repurchases Dividends 21
Slide 22: 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 23: 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 24: 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 $19
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix 26
Slide 27: Time-Chartered Out Vessels
Time-Chartered Out Vessels Vessel Vessel Class Term Average Rate ($/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 28: Product Tanker Specifications
Product Tanker Specifications IMO Classes I, II, & III IMO Class I refers to the transportation of the most hazardous, very IMO Class I Chemical Tankers acidic, chemicals. The tanks can be stainless steel, epoxy or marine-line coated. Chemical & IMO Class II carries Veg & Palm Oils, Caustic Soda. Th
Slide 29: Design Features on Scorpio Product Tankers
Design Features on Scorpio Product Tankers 29
Slide 30: www.scorpiotankers.com
www.scorpiotankers.com
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