Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q3 2020 Earnings Presentation
16 slides from Scorpio Tankers's earnings presentation, Nov 5, 2020
Slide 1: Q3-20 Earnings Conference Call
Scorpio Tankers Inc. Q3-20 Earnings Conference Call November 5, 2020
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: Quarterly Highlights
Quarterly Highlights • Fleet average daily TCE(1) of $15,100/day Quarterly Financial Results • Net loss of $20.2 million • Adjusted EBITDA(1) of $82.1 million $297 million in Debt Repayments over Last 12 • For the period October 1, 2019 and September 30, 2020 the Company repaid $297 million in debt
Slide 4: Spot Rates Continued Trend of Quarterly Outperformance in Q3-2020
Spot Rates Continued Trend of Quarterly Outperformance in Q3-2020 • Since Q4-18, year over year quarterly Company TCE rates have been higher every quarter, suggesting that the underlying supply and demand drivers in our market have continued to tighten Scorpio Average Fleet TCE ($/day) FY-18 FY-19 F
Slide 5: Q4-20 Company TCE Guidance
Q4-20 Company TCE Guidance % of Q4 Days Booked as of November 5, 2020 LR2 LR1 MR HM Q4-20 51% 63% 48% 47% Average Daily TCE Revenue by Vessel Class ($/day) $18,250 $12,500 $11,000 $8,500 LR2 LR1 MR HM 5
Slide 6: Financial Performance
Financial Performance Revenue Adjusted EBITDA Millions $USD Millions $USD $400 $300 $346.2 $350 $252.0 $250 $300 $254.2 $250 $221.6 $200 $158.7 $200 $177.3 $150 $124.4 $150 $136.1 $100 $82.1 $100 $54.5 $50 $50 $0 $0 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Net Income Net Debt Mill
Slide 7: Limited Capex & No Major Upcoming Debt Maturities
Limited Capex & No Major Upcoming Debt Maturities • Since 2018, the Company completed $386.4 million in capex payments for drydock, ballast water treatment systems and scrubbers • Remaining capex for FY-20 and FY-21 is $57.6 million • The Company has $61 million of committed scrubber financing that
Slide 8: Summary of Debt Drawdowns, Repayments and Issuance
Summary of Debt Drawdowns, Repayments and Issuance • From the period October 1, 2019 and September 1, Summary of Debt Drawdowns, Repayments and Issuance 2020 the Company repaid $297 million in debt, including: From October 1, 2019 through September 30, 2019 Amount (USD$ Millions) • $53.8 million of
Slide 9: Short Term Market Update
Short Term Market Update Refined Product Floating Storage (million barrels) (1) • The benefit of above average TCE rates in the third quarter has resulted in a lower start to the fourth quarter in 2020 120 107.3 • Despite a significant recovery in oil demand since April, global 100 80 78.7 demand co
Slide 10: Long Term Fundamentals
Long Term Fundamentals Oil and Refined Product Demand Expected to Continue to Recover through 2021 • Oil demand expected to continue to recover and the IEA expects oil demand to increase 5.5 mb/d in 2021 to 97.2 mb/d (1) • Seaborne refined product exports and ton mile demand are estimated to increas
Slide 11: Demand Has Continued to Improve Since April
Demand Has Continued to Improve Since April • Global diesel and gasoline demand has made a significant Global Diesel Demand (mb/d) (1) 35 recovery since April 2020, increasing 4.9 mb/d and 7.6 mb/d, 29.5 29.3 28.2 28.6 30 27.2 27.2 27.1 27.7 27.7 27.9 26.4 respectively 23.7 25.1 25 • While jet fuel
Slide 12: Global Refinery Closures Accelerate
Global Refinery Closures Accelerate • Oil refineries face a wave of closures due to weak refining margins, Announced Refinery Closures tightening environmental rules and overseas competition, prompting some owners to opt for closure or converting plants for storage or Operator Location Capacity (kbd
Slide 13: Orderbook as % of Fleet Remains Near Historical Low
Orderbook as % of Fleet Remains Near Historical Low • Limited newbuilding orders coupled with a low orderbook has kept orderbook as % of fleet near historical low Newbuilding Orders Orderbook as % of Fleet MR LR1 LR2 25.0% Product Tanker 10K+ Orderbook % Fleet 450 433 5 Yr Avg 400 78 10 Yr Avg 20.0%
Slide 14: Significant % of the Fleet Turning 15 Years & Older
Significant % of the Fleet Turning 15 Years & Older • Including the newbuilding orderbook, a significant % the product tanker fleet will turn 15 years and older during the next three years Fleet Age Profile Today vs 2023 (Including Newbuilding Orders) % of fleet 15 years old & older (Today) % of fle
Slide 15: Increasing Environmental Regulations to Benefit Modern Vessels
Increasing Environmental Regulations to Benefit Modern Vessels • The EU has put pressure on the IMO to accelerate it’s 2030 GHG emission targets and implement and may implement its own ETS system by 2023 • It’s unclear how the timeline of these plans will accelerate, but the focus on reducing GHG em
Slide 16: www.scorpiotankers.com
www.scorpiotankers.com