Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Pareto Securities Conference 2024
30 slides from Scorpio Tankers's conference presentation, Sep 12, 2024
Slide 1: Pareto Securities Conference Presentation
Scorpio Tankers Inc. Pareto Securities Conference Presentation September 12, 2024
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 Key Facts NYSE Ticker Fleet Vessels(1) 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 102 • Vessels employed in well-establi
Slide 4: 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 Scorpio Tankers Active Fleet HM MR LR1 LR2 18 17.1 Scorpio 102 16 Peer 1 90 14 12.8 Peer 2 89 12 10.8 9.9 Peer 3 70 10 8.5 8.0 Peer 4 65 8 6
Slide 5: Investment Highlights
Investment Highlights Company • One of the largest product tanker fleets in the world • 102 Eco (fuel-efficient) vessels on the water (1) • Fully delivered fleet with an average age of 8.4 years (1) New Slide • No newbuildings on order = $0 newbuild capex • Significant Operating Leverage • A $10,000
Slide 6: 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) $/day Number of deliveries Product Tanker Deliveries Average Weighted Clean Product Tanker Earnings $70,000 40 $60,000 2020: 2022: COVID-19 floating Russia 2002-2008:
Slide 7: Refined Products Demand and Seaborne Exports Exceed Pre-Pandemic Levels
Refined Products Demand and Seaborne Exports Exceed Pre-Pandemic Levels Refined Product Demand (1) Seaborne Refined Product Exports (2) Million barrels per day Million barrels per day Diesel Gasoline Jet Naphtha Fuel Oil Previous 5Y Range 2024 CPP Exports Previous 5Y AVG 90.0 22.0 80.2 80.1 78.6 79.
Slide 8: Short Term Market Update
Short Term Market Update Refinery Maintenance Crude Tankers Carrying Clean Products is Expected to Slow Million barrels per day Million barrels Asia Pacific North America Europe Latin America FSU Middle East Africa VLCC Suezmax 15.0 50.0 12.0 11.7 40.0 11.1 37.0 35.1 9.0 9.0 8.5 30.0 7.9 25.9 23.2 6
Slide 9: Inventories Below Historical Averages
Inventories Below Historical Averages US Diesel Inventories US Gasoline Inventories Million barrels 5Y Range Previous 5Y AVG YTD Million barrels 5Y Range Previous 5Y AVG YTD 190 270 180 260 170 250 160 150 240 140 230 130 220 120 210 110 100 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Fe
Slide 10: Disruptions Exacerbate Strong Supply & Demand Fundamentals
Disruptions Exacerbate Strong Supply & Demand Fundamentals Ton Mile Demand Since 2019 Product Tankers Continue to Transit Around the Cape of Good Hope Index = 100, Base January 2019 Million barrels per day Via COGH Via Suez Ton Mile Demand (Excl. Russia) Ton Mile Demand (Incl. Russia) 130 4.5 125 4.
Slide 11: Refining Capacity Changes Increase Seaborne Exports, Trading & Ton Miles
Refining Capacity Changes Increase Seaborne Exports, Trading & Ton Miles Net CDU Additions From 2013 to 2025 By Region (1) Middle East CPP Ton Miles Have Increased ~84% Since 2017 (2) Million barrels per day Billion ton miles 6.0 5.5 300.0 Increased ~84% 5.0 245.8 250.0 4.0 3.5 3.0 200.0 2.0 150.0 1
Slide 12: Crude Oil Demand Could Outpace Distillation Capacity
Crude Oil Demand Could Outpace Distillation Capacity Crude Oil Demand vs Refining Distillation Capacity Spare Distillation Capacity & Impact of Refinery Closures Million barrels per day Oil demand Distillation capacity Million barrels per day Spare Distillation Capacity* Effect of Actual Closures Ef
Slide 13: Refined Product Demand Has Been Resilient
Refined Product Demand Has Been Resilient Global Refined Product Demand Global Product Demand - Global Financial Crisis & COVID-19 Million barrels per day Diesel Gasoline Jet Naphtha Fuel Oil YoY change, million barrels per day Change Excl Fue Oil 6.0 80.0 78.6 4.5 77.4 3.8 4.0 7.0 7.7 68.8 70.0 1.9
Slide 14: Seaborne Exports & Ton Mile Demand
Seaborne Exports & Ton Mile Demand Seaborne Product Exports Have Increased in 21 of the Last 25 Years Ton Mile Demand Has Grown at a 3.6% CAGR Since 2000 Yoy change Seaborne Product Exports Billion ton miles 4,000 10.0% 5.0% 3,000 0.0% -5.0% 2,000 -10.0% -15.0% 1,000 Clarksons Shipping Intelligence,
Slide 15: Orderbook & Historical Product Tanker Fleet Growth
Orderbrook & Historical Product Tanker Fleet Growth Product Tanker Earnings vs Orderbook as % of Fleet Product Tanker Fleet Growth $/day Orderbook as % of Fleet Yoy growth Avg Product Tanker Earnings (LHS) Orderbook as a % of Fleet (RHS) $70,000 70.0% 13.8% $60,000 60.0% 12.1% 11.6% 11.4% $50,000 50
Slide 16: Newbuild Prices & Delivery Lead Times Continue to Increase
Newbuild Prices & Delivery Lead Times Continue to Increase Newbuilding Prices Average Time Between Vessel Order & Delivery $USD millions Years LR2 MR MR LR2 $90.0 3.5 $80.0 3.2 3.0 $70.0 2.7 $60.0 2.6 2.6 2.5 2.5 $50.0 2.2 $40.0 2.0 2.0 $30.0 1.6 $20.0 1.5 $10.0 $0.0 Sep-01 Mar-04 Sep-06 Mar-09 Sep-
Slide 17: Time Charter Rates Remain Strong
Time Charter Rates Remain Strong LR2 Time Charter Rates MR Time Charter Rates $USD per day $USD per day LR2 3 Yr Charter Rate LR2 1 Yr Charter Rate MR 3 Yr Charter Rate MR 1 Yr Charter Rate $50,000 $35,000 $45,000 $30,000 $40,000 $25,000 $35,000 $30,000 $20,000 $25,000 $15,000 $20,000 $15,000 $10,00
Slide 18: 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 (1) % of LR2 Vessels Trading Clean Products (2) Clean Petroleum Products Crude Oil Dirty Petroleum Products 70% 12% 12% 12% 13% 12% 12% 11% 11% 65% 60% 55% 69% 69% 55% 72% 70% 70% 72% 72% 73% 50% 45%
Slide 19: Aframax & LR2 Orderbook
Aframax & LR2 Orderbook Aframax & LR2 Newbuild Orders Aframax & LR2 Orderbook as a % of Fleet Number of vessels Aframax LR2 50% 400 45% 347 336 40% 300 82 126 35% 263 239 30% 200 25% 188 175 127 203 20% 19% 35 92 254 15% 221 100 10% 140 112 96 5% 60 0 0% 1996-2000 2001-2005 2006-2010 2011-2015 2016-
Slide 20: Product Tanker Orderbook & Fleet Average Age
Product Tanker Orderbook & Fleet Average Age Orderbook as % of Global Fleet vs Avg Fleet Age Global Fleet Age Breakdown by 2027 (Including Newbuildings) Orderbook as % of Fleet 30.0% 70% Scrap Candidates 2007 24.7% 60% 25.0% 24.2% 2008 50% 20.0% 19.3% 17.7% 2006 2005 40% 2009 2004 15.0% 14.1% 30% 20
Slide 21: Significant 2000's Fleet Growth Expected to be Phased Out
Significant 2000’s Fleet Growth Expected to be Phased Out Historical Deliveries and Projected Orderbook Vessels At or Above 20 Years Old Number of vessels Cumulative number of vessels HM MR LR1 LR2 HM MR LR1 LR2 160 1,400 140 1,200 120 1,000 100 800 80 600 60 400 40 20 200 0 0 2002 2015 2000 2001 20
Slide 22: 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 (2) Number of vessels Yoy change Scenario 1 Scenario 2 Scenario 3 Refined Product Exports Ton Mile Demand 7.9% 7.5% 6.2% 5.5% 5.3% 4.9% 3.4% 3.7% 2.7% 3.5% 1.7% 2.8% 0.5% 2.0
Slide 23: Financials
Financials 23
Slide 24: Financial Highlights
Financial Highlights Adj EBITA of $278.0 million Q2-24 Financial Results Adj net income of $188.4 million or $3.77 basic and $3.60 diluted earnings per share (1) From January 1, 2024, through July 29, 2024, the Company made $603.8 million in unscheduled debt and lease Significant Debt Repayment repa
Slide 25: Financial Highlights
Financial Highlights Financial Highlights Over Last Six Quarters (Q1-23 through Q2-24) $USD millions 2,500 $2,091 2,000 $1,530 1,500 $965 $955 1,000 $543 500 $101 0 TCE Revenue Adj EBITDA Adj Net income Debt Reduction Share Repurchases Dividends 25
Slide 26: 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 $2,933 $3,164 $3,000 $70 $2,500 $574 $1,581 $1,263
Slide 27: Debt Repayment Schedule
Debt Repayment Schedule Debt Repayment Schedule (1) Debt Repayment from December 31, 2021, through September 30, 2024 $USD millions Payments made through July 29, 2024 Scheduled repayments $USD millions Unsecured Notes Prepayment of Credit Facility $100.0 $3,500 $3,164 $85.2 $3,000 $82.8 $2,500 $1,9
Slide 28: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rates Potential Annual Cash Flow Generation After Debt Repayment (1) $USD/day $USD millions $45,679 $44,222 $1,734 $39,660 $38,813 $37,500 $36,006 $34,800 $1,369 $32,949 $32,154 $34.2/Share $28,313 $1,004 $27.0/Share $19.8/Share $
Slide 29: Q&A
Q&A 29
Slide 30: www.scorpiotankers.com
www.scorpiotankers.com