Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q4 2019 Earnings Presentation
13 slides from Scorpio Tankers's earnings presentation, Feb 19, 2020
Slide 1: Fourth Quarter and Full Year 2019 Earnings Presentation
Scorpio Tankers Inc. Fourth Quarter and Full Year 2019 Earnings Presentation February 19, 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: Agenda
Q4-19 & Full Year 2019 Earnings Presentation Agenda • Q4-19 Financial Highlights • YoY Quarterly & Annual Performance • Q1-19 Guidance • Scrubber Update • Market Update • Coronavirus • IMO 2020 • Long Term Fundamentals 3
Slide 4: Q4-19 Highlights
Q4-19 Highlights Q4-19 • Adjusted net profit of $12.0 million or $0.22 per share for Q4-19, compared to adjusted net loss of $17.7 million or $0.38 per share in Q4-18 Adjusted Net Profit Q4-19 Product Rates • Company’s average fleet TCE increased from $15,008 in Q4-18 to $19,910 in Q4-19, an increas
Slide 5: YoY Quarterly Performance
YoY Quarterly Performance Average Daily TCE ($/day) Financial Performance (USD$ Millions) $30,000 Q4-18 Q4-19 Q4-18 Q4-19 $250 $222 $24,987 $25,000 $200 $168 $20,000 $19,294 $17,648 $17,261 $150 $16,228 $14,999 $124 $15,000 $14,412 $13,548 $100 $78 $10,000 $69 $59 $50 $5,000 $28 $23 $0 $0 Revenue Ad
Slide 6: YoY Annual Performance
YoY Annual Performance Average Daily TCE ($/day) Financial Performance (USD$ Millions) $25,000 $800 FY-18 FY-19 FY-18 FY-19 $704 $700 $20,254 $20,000 $600 $585 $15,846 $15,095 $15,000 $14,575 $500 $13,968 $12,589 $12,196 $400 $364 $10,775 $10,000 $300 $212 $210 $200 $5,000 $130 $100 $58 $11 $0 $0 LR
Slide 7: Q4-19 & Q1-20 TCE Earnings Update
Q4-19 & Q1-20 TCE Earnings Update 4th Quarter 2019 1st Quarter 2020 Vessel Type Spot ($/day) % Fixed Spot ($/day) LR2 $25,230 70% $25,000 LR1 $17,653 80% $19,000 MR $17,429 60% $22,000 Handymax $19,294 60% $24,000 7
Slide 8: Scrubber Savings & Installation Schedule
Scrubber Savings & Installation Schedule Fuel Savings for Scrubber Fitted Vessels (January 2020) Scrubber Installation Schedule (1) LR2 LR1 MR $6,000 60 $5,400 55 $5,300 $5,000 50 $4,000 40 30 (# of Vessels) $3,000 $2,800 30 25 3 19 20 11 $2,000 14 11 4 10 22 7 $1,000 4 10 5 8 4 0 2 $0 Installed as
Slide 9: Market Update: Looking Back Q4-19
Market Update: Looking Back Q4-19 Saudi Refined Product Exports (1) Strong Rate Environment Pre IMO 2020 FY-18 FY-19 • Product tankers saw a significant improvement in Q4 rates y-o-y driven 2.0 by strong underlying demand and limited fleet growth 1.8 Despite several headwinds: 1.7 1.7 1.6 • Saudi Oi
Slide 10: Market Update: Looking Forward
Market Update: Looking Forward • Wuhan Coronavirus (COVID-19) • In the short-term, disruptions can cause re-routing and increased utilization, masking the underlying economic consequences of the virus in China. • We expect Asian inventories to grow at the same time that regularly scheduled maintenan
Slide 11: IMO 2020: It's Still Early
IMO 2020: It’s Still Early • What We Have Seen So Far Singapore Bunker Sales By Type (1) ➢ High Levels of VLSFO Fuel Adoption: Accumulated storage in 35 HSFO VLSFO MGO preparation of IMO 2020 allowed for greater availability. (Million Barrels per Month) 30 ➢ Widening of the VLSFO-HSFO Spread: In Jan
Slide 12: Long Term Fundamentals
Long Term Fundamentals Demand Favorable Supply/Demand Balance • Growing regional imbalances of products driven by Product Tanker Net Fleet Growth Seaborne Refined Products Trade different crude slates, product yields/grades and 8.0% 7.1% refining capacity expected to continue 6.0% 5.7% 6.3% 5.0% 4.6
Slide 13: Investment Highlights
Investment Highlights Largest and Most Modern • 128 owned or financed lease vessels (126 on the water) with an average age of 4.0 years with track record of Product Tanker Fleet in the outperforming the market World Largest Scrubber Fitted • Scorpio's ECO fleet well positioned as the largest scrubbe