Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Merger or Acquisition (May 2017)
15 slides from Scorpio Tankers's merger presentation, May 24, 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May 2017
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: Offering Summary
Offering Summary Issuer (Ticker / Exchange): Scorpio Tankers Inc. (STNG / NYSE) Offering Size: $200 million / 100% primary Over-Allotment Option: 15% (100% primary) Cash to further strengthen the balance sheet and enhance liquidity, costs Use of Proceeds: related to the proposed merger, acquisition
Slide 4: Scorpio Overview – Today
Scorpio Overview – Today (1)(2) Leading Product Tanker Company Scorpio is the world’s largest product tanker company By Q1-18, the Company expects to own a fleet of 82 product tankers (76 vessels currently on the water and 6 vessels under construction) Vessels employed in well-established pools mana
Slide 5: Proposed Merger Overview
Proposed Merger Overview to acquire NPTI in exchange for 55 million(1) Scorpio newly issued shares in STNG NPTI shareholders to own ~24% post transaction (before proposed equity offering) NPTI’s fleet consists of high quality vessels, comprised of 15 LR2s and 12 LR1s Modern fleet, average age of 0.9
Slide 6: Proposed Merger Highlights
Proposed Merger Highlights Highly complementary fleet of newly built, high quality vessels, which enlarges STNG’s fleet 1 and extends coverage to all product tanker classes – NPTI is the only available fleet that is younger than STNG’s Solidifies leadership position in product tankers, more than dou
Slide 7: Highly Complementary Fleet of Newly Built Vessels
1 Highly Complementary Fleet of Newly Built Vessels (1) 60 2.8 Avg. Age of Vessels (Owned Fleet Only) 50 6 (2) 1.5 9 40 1 Vessels 30 15 2.6 of # 20 39 (3) 1.0 9 23 10 12 14 0 LR2 LR1 MR Handymax STNG NPTI TC-In / Bareboat Chartered-In Total Newbuilds Notes: Owned vessels as of 05/23/17 Refers to STN
Slide 8: Economies of Scale from being Largest Tanker Owner
2 Economies of Scale from being Largest Tanker Owner World’s Largest Product Tanker Owner Becomes Larger Avg. Age of Vessels (Owned Fleet Only) 2.0 120 109 (1) 27 11.2 8.6 80 77 74 7.7 4.4 Vessels 23 17 8.9 20 60 of 56 # 51 24 14 40 20 59 60 54 42 36 31 0 Scorpio Tankers * TORM A/S A.P. Moller China
Slide 9: Young and Efficient Fleet to Drive Superior Performance
2 Young and Efficient Fleet to Drive Superior Performance Scorpio Average Age vs. Worldwide Fleet 14.0 12.4 12.0 10.0 9.4 8.8 (Years) 8.2 8.0 Age Average 6.0 4.0 2.9 2.5 2.0 1.5 0.9 0.0 Handymax MR LR1 LR2 Scorpio Tankers Active Fleet Source: Clarksons Research Services, April 2017 9
Slide 10: Scorpio Pools Have Consistently Outperformed Market
3 Scorpio Pools Have Consistently Outperformed Market Pool Performance ($/day) $30,000 $20,000 Scorpio Handymax Tanker $10,000 Pool (SHTP) $0 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Scorpio Handymax Pool Handymax Benchmark (TD16—TD18—TC6 -BALTIC/CONT) $30,000 $20,000 Scorpio MR Pool $10,000
Slide 11: Market Fundamentals: Product Tanker Supply at Historical Lows
Market Fundamentals: Product Tanker Supply at Historical 4 Lows Newbuildings at Twenty Year Low 2017 Newbuilding Contracts YTD Handymax MR LR1 LR2 Total 2 7 2 8 19 # of Vessels 600 491 500 400 300 217 200 160 98 100 47 0 2006 2007 2008 2009 2010 299 190 126 108 80 17 19 2011 2012 2013 2014 2015 2016
Slide 12: Market Fundamentals: Positive Demand Outlook for Product Tankers
Market Fundamentals: Positive Demand Outlook for 4 Product Tankers Seaborne Product Exports & Global Demand Seaborne Product Exports (mb/d) Global Oil Demand (mb/d) 25 100 20 90 15 80 10 70 2000 2002 2004 2006 2008 2010 2012 2014 2016 Seaborne Refined Product Exports Global Demand Seaborne Refined P
Slide 13: Market Capitalization and Trading Liquidity Likely To Be Enhanced
STNG Market Capitalization and Trading Liquidity Likely 5 To Be Enhanced Scorpio Represents Most Liquid Product Tanker Operator (1) ($MM) STNG is Trading Liquidity ($MM pd) 105MM in new shares $1,400 issued will significantly currently most Sources ($MM) $16 enhance market liquid public Equity for M
Slide 14: Strong Balance Sheet and Liquidity Maintained in Pro Forma STNG
Strong Balance Sheet and Liquidity Maintained in 6 Pro Forma STNG Cash Net Debt / Capitalization (4) $300 70% 60% 57.9% $250 56.7% 50% $200 40% $187 $150 $256 30% $39 $100 20% $44 (1) $129 $50 $38(2) 10% $38(2) $21 0% $0 Scorpio Standalone Scorpio Pro Forma Scorpio Preferred Trans. Cash for NPTI (3)
Slide 15: Pro Forma STNG Fleet List
Pro Forma STNG Fleet List Owned Vessels (1) Name Year DWT Type STI Comandante May-14 38,734 HM STI Brixton Jun-14 38,734 HM STI Pimlico Jul-14 38,734 HM STI Hackney Aug-14 38,734 HM STI Acton Sep-14 38,734 HM STI Fulham Sep-14 38,734 HM STI Camden Sep-14 38,734 HM STI Battersea Oct-14 38,734 HM STI