Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Investor Presentation (January 2017)
26 slides from Scorpio Tankers's investor presentation, January 2017
Slide 1: Company Presentation
Company Presentation January 2017 1
Slide 2: Company Overview
Company Overview • Scorpio Tankers Inc. (“STNG” or “Company") is the world’s largest ECO-spec product tanker company • By Q1-18, the Company will own a fleet of 87 eco-design product tankers • 77 product tankers on the water with an average age of 2.2 years 21 LR2s (110,000 DWT, ~750,000 bbls) 42
Slide 3: Operating Leverage Continues to Grow
Operating Leverage Continues to Grow Class Existing To be Delivered Total Owned TC-In Total 2017 2018 Handymax 14 - - 14 5 19 (35,000 DWT) MR 42 7 1 50 8 58 (52,000 DWT) LR1 - - - - 1 1 (75,000 DWT) LR2 21 2 - 23 2 25 (110,000 DWT) Total 77 9 1 87 16 103 3
Slide 4: Market Cap & Liquidity
Market Cap & Liquidity Mcap (USDm) Liquidity ($m pd) $1,400 $20 $1,200 $15 $1,000 Liquidity ($m pd) (Millions $USD) $800 $10 $600 $1,316 $1,204 $890 $400 $773 $5 $200 $373 $379 $357 $283 $259 $- $- Euronav US Frontline Nordic Scorpio Tankers Gener 8 DHT Holdings Teekay Tankers Navios Mar. Ardmore Am
Slide 5: Product Tankers in the Oil Supply Chain
Product Tankers in the Oil Supply Chain • Crude Tankers provide the marine transportation of the crude oil to the refineries. • Product Tankers provide the marine transportation of the refined products to areas of demand. • Structural demand drivers in the product tanker industry: • US has emerged a
Slide 6: Product and Crude Tankers
Product and Crude Tankers Tankers “Dirty” “Clean” Crude Products Vessel VLCC Suezmax Aframax Panamax Handysize LR2 LR1 Hmx/MR Handysize Size (200,000 + (120,000 - (80,000 - (60,000 - (< 60,000 (80,000- (60,000- (25,000- (<25,000 DWT) 200,00 DWT) 120,00 DWT) 80,00 DWT) DWT) 120,000 80,000 DWT) 60,000
Slide 7: Product Tanker Specifications
Product Tanker Specifications IMO Classes I, II, & III IMO Class I Chemical Tankers IMO Class I refers to the transportation of the most hazardous, very acidic, chemicals. The tanks can be stainless steel, epoxy or marine-line coated. IMO Class II Chemical & Product Tankers IMO Class II carries Veg
Slide 8: New Design Features on Scorpio Product Tankers
New Design Features on Scorpio Product Tankers Lower Co2 Emissions at Vapor Recovery Deepwell Pumps, Cleaning Capability for Rapid Sea & In Port System Discharge & Cargo Flexibility Bulbous Bow Mewis Duct Hydrodynamic Hull Form Enhanced Cargo Tank Coatings G-Type Larger Propeller (Electronic Long St
Slide 9: Ballast Water Treatment Systems
Ballast Water Treatment Systems • The IMO’s Ballast Water Convention is due to enter force on BWTS Filtering Unit September 8, 2017. • After September 2017, ship operators will need to install type-approved ballast water treatment systems by the time the International Oil Pollution Prevention (IOPP)
Slide 10: New Sulfur Emission Regulations
New Sulfur Emission Regulations • On October 27, 2016 the International Maritime Organization's MARPOL Annex VI SOx Emission Timeline (IMO) announced the results from a vote to ratify and formalize regulations mandating a reduction in sulfur emissions from 3.5% currently to 0.5% as of the beginning
Slide 11: Product Tanker Fleet Age Profile
Product Tanker Fleet Age Profile 100% 2% 3% 6% 4% 12% 10% 7% 13% 80% 29% 16% 22% 60% 36% 40% 37% 40% 52% 26% 20% 31% 27% 13% 13% 0% Handymax MR LR1 LR2 0-4 5-9 10-14 15-19 20+ Uses current fleet, order book, and # of vessels. Assumes no slippage, cancellation or scrapping Clarksons Research Services
Slide 12: Newbuilding Asset Prices
Newbuilding Asset Prices Historical Data 2005-2016 Scorpio Average Vessel ($ in millions) Current Avg Max Min Purchase Price Handymax $30 $34 $52 $28 ($ In Millions) Price MR $32.5 $40 $54 $33 Handymax $31 LR2 $46.5 $58 $83 $47 MR $36 LR2 $53 $90 $80 $70 $60 ($ Millions) $50 $40 $30 $20 $10 $0 Dec-0
Slide 13: Scorpio Pools Have Consistently Outperformed The Market
Scorpio Pools Have Consistently Outperformed The Market Pool Performance ($/day) Scorpio Handymax Pool Handymax Benchmark (TD16 - TD18 - TC6 - BALTIC/CONT) $25,000 Scorpio $20,000 Handymax $15,000 Tanker Pool $10,000 (SHTP) $5,000 $0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
Slide 14: Product Tanker Owners & Operators
Product Tanker Owners & Operators Scorpio’s trading platform operates the largest product tanker fleet in the market with over 140 vessels under commercial management Top Pool Operators Top Five Handymax & MR Owners (1) Pool Operator Handymax MR LR2 Total # Owner Vessels Scorpio 36 85 24 145 1 Scorp
Slide 15: Product Tanker Fundamentals
Product Tanker Fundamentals 15 15
Slide 16: Product Tanker DWT Before Scrapping
Product Tanker DWT Before Scrapping 180.0 158.8 160.0 160.0 155.4 144.9 140.0 39.3 39.3 38.3 34.3 120.0 28.9 29.0 DWT (Millions) 27.7 100.0 25.5 80.0 60.0 89.5 90.6 91.7 40.0 85.0 20.0 0.0 Current 2017 2018 2019 HM/MR LR1 LR2 . Assumes no slippage, cancellation or scrapping Clarksons Research Servic
Slide 17: Product Tanker Newbuilding Contracts at Year Low
Product Tanker Newbuilding Contracts at 20 Year Low 2016 Newbuilding Contracts Handymax (1) MR LR1 LR2 Total 4 6 4 2 16 600 490 500 400 (# of Vessels) 299 300 217 192 200 160 126 108 98 100 80 47 16 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 HM & MR LR1 LR2 Total (1) Includes one aspha
Slide 18: Global Oil Demand Continues to Increase
Global Oil Demand Continues to Increase • Global oil demand is expected to grow by 7.2 mb/d between 2015 and 2021, or a CAGR growth rate of 1.2%, reaching 101.6 mb/d in 2021. • The growth rate is lower than the 1.7% per annum seen in 2009-2015 due to increasing vehicle fuel efficiency and China’s ec
Slide 19: Structural Drivers in Demand for Refined Products
Structural Drivers in Demand for Refined Products • Between 2000-2016, ton miles have increased an average of 4.4% per year. • Reduction in oil prices has lead to an increase in the production of refined products, and consequently the quantity to be transported. • US has emerged as a refined product
Slide 20: Refinery Capacity Expansions Drive Demand
Refinery Capacity Expansions Drive Demand • The refining industry continues to undergo massive expansion and restructuring as worldscale refining hubs in Asia, the Middle East, and United States are crowding out legacy capacity in Europe and OECD Asia Oceania. • According to International Energy Age
Slide 21: Middle East Investing in New Refinery Capacity
Middle East Investing in New Refinery Capacity • New refinery projects coming on stream in the Middle East exceed regional demand growth, resulting in increased product exports particularly middle distillates. • Europe is the most likely destination for much of the new volumes, particularly diesel.
Slide 22: Product Tanker Trade Map
Product Tanker Trade Map Gasoil/Diesel N. America Gasoline Gasoil/Diesel Med Far East Jet Fuel Gasoline Arabian Gulf Gasoil/Diesel Naphtha Gasoline Caribbean Gasoil/Diesel Gasoil/Diesel Gasoil/Diesel South East Asia Gasoline S. America Gasoil/Diesel Gasoil/Diesel Gasoline Inter-Regional trade routes
Slide 23: Highlights
Highlights 1 World’s largest fleet of ECO-design product tankers Modern, fuel- ECO-design vessels have substantially lower fuel costs than prior generation vessels efficient fleet Young fleet (average age of 2.2 years), built at high quality yards. 2 STNG currently operates a fleet of 77 who
Slide 24: Appendix
Tankers Inc. Appendix 24 24
Slide 25: Fleet List
Fleet List Owned Vessels 2017 Delivery Schedule Name Year DWT Type Name Year DWT Type Name Year DWT Type STI Comandante May-14 38,000 HM STI Yorkville Oct-14 52,000 MR STI Selatar Jan-17 114,000 LR2 STI Brixton Jun-14 38,000 HM STI Memphis Nov-14 52,000 MR STI Rambla Feb-17 114,000 LR2 STI Pimlico J
Slide 26: Largest Shareholders
Largest Shareholders # Holder % 1 Wellington Management Company 11.5% 2 Dimensional Fund Advisors 8.2% 3 Fidelity Management & Research Company 4.1% 4 Putnam Investment Management 4.0% 5 The Vanguard Group, Inc. 3.5% 6 Daruma Capital Management 3.5% 7 BlackRock Fund Advisors 3.5% 8 Investec Asset Ma
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