Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q3 2023 Earnings Presentation
23 slides from Scorpio Tankers's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Scorpio Tankers Inc. Third Quarter 2023 Earnings Presentation November 9, 2023
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: Q3 2023 Call Agenda
Q3 2023 Call Agenda 1.Q3 2023 Highlights 2.Financial Highlights 3.Product Tanker Market 4.Conclusion 5.Q&A 3
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights 4
Slide 5: Highlights
Highlights Highlights Quarterly TCE Rates ($/day) Financial Results $29,856 • Adj EBITDA of $200.3 million (1) $28,587 • Adj net income of $99.2 million or $1.99 basic and $1.91 diluted $22,875 earnings per share (1) Increase in Quarterly Dividend • Increased quarterly dividend from $0.25 to $0.35 p
Slide 6: Financial Highlights
Financial Highlights 6
Slide 7: Financial Highlights
Financial Highlights Avg Daily TCE Rate by Vessel Type (Includes Vessels on Time Charter) Financial Highlights Over Last Seven Quarters (Q1-22 through Q3-23)(1) ($USD thousands /day) ($USD millions) Q1- 22 Q2- 22 Q3- 22 Q4- 22 Q1- 23 Q2- 23 Q3- 23 $52.0 $52.1 $2,464 $50.27/share $48.2 $46.2 $43.3 $4
Slide 8: Financing Update
Financing Update Repurchase of Lease Financing Repurchase of Lease Financing # Vessel Name Type Built Completed # Vessel Name Type Built Completed/Expected* • Since August 2022, the Company has given notice to repurchase 76 vessels under lease STI Opera MR 2014 Q3-22 STI Miracle MR 2020 Q3-23 1 40 f
Slide 9: Continued Reduction in Leverage & Expensive Lease Financing
Continued Reduction in Leverage & Expensive Lease Financing Debt Repayment from December 31, 2022, through December 31, 2023 Outstanding Indebtedness by Type ($USD millions) ($USD millions) Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $2,500 $3,500 $3,164 $3,000 $278 $2,000 $1,9
Slide 10: Improving Balance Sheet, Strong Liquidity & Minimal Capex
Improving Balance Sheet, Strong Liquidity & Minimal Capex Debt Repayment Schedule Net Debt ($USD millions) ($USD millions) $600.0 Payments made through November 8, 2023 Gross Debt Outstanding Cash & Cash Equivalents $527.8 Scheduled Principal Payments $500.0 $2,933 Repurchase of Lease Financing $2,7
Slide 11: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment (1) ($/day) ($USD millions) $45,679 $44,222 $1,970 $37,500 $36,006 $32,732 $37.1/share $32,154 $1,565 $29,693 $28,313 $29.5/share $1,160 $22,644 $21.8/share $15,4
Slide 12: Product Tanker Market
Product Tanker Market 12
Slide 13: Short Term Market Update
Short Term Market Update Product Tanker Earnings Remain Elevated through Refinery Maintenance ($/day) (1) Global Refinery Maintenance (Capacity Offline) (2) ($/day) (mb/d) Asia Pacific North America Europe Latin America FSU Middle East Africa LR2 Eco-Middle East to Japan MR Eco-Avg Earnings $100,000
Slide 14: Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels
Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels Refined Product Demand Expected to Increase through 2024 (1) • Product tanker earnings have remained at (mb/d) elevated levels since March 2022 Diesel Gasoline Jet Naphtha Fuel Oil 90.0 81.1 81.0 • Seaborne exports of refined produ
Slide 15: Refinery Changes Drive Global Trade Flows & Ton Miles
Refinery Changes Drive Global Trade Flows & Ton Miles Refining Capacity Additions / (Closures) By Region (1) Cumulative Net Refining Capacity Additions / (Closures) by Region 2013 to 2023 (2) (mb/d) Africa Asia (Exl India/China) China India Europe FSU Middle East Latin America North America (mb/d) 5
Slide 16: Refining Capacity & Regional Imbalances Drive Flows
Refining Capacity & Regional Imbalances Drive Flows Improved Triangulation - Largest Exporters Can Also Be Large Importers (2023 ytd) (1) Global Diesel Balances (2) (mb/d) Exports Imports (mb/d) 2.5 2.2 Russia Europe 1.0 2.0 (1.1) North America 1.5 1.0 China 1.2 1.2 Middle 0.4 1.1 East 1.0 1.2 0.9 A
Slide 17: Russian Exports Find New Markets
Russian Exports Find New Markets 15% of the Product Tanker Fleet has Traded Russian CPP (1) Russian Origin MR and LR2 Ton Miles (CPP) (# of vessels) (million ton miles) MR LR2 500 35,000 453 49 30,000 400 61 25,000 300 20,000 15,000 200 261 10,000 5,000 100 82 0 0 HM MR LR1 LR2 Total Russian CPP Imp
Slide 18: Modest Orderbook & Aging Fleet with Significant Scrapping Potential
Modest Orderbook & Aging Fleet with Significant Scrapping Potential Orderbook as % of Fleet vs Avg Age Age Distribution of Fleet through 2026 (1) (DWT million) 70% HM MR LR1 LR2 60% 2007 16.0 Orderbook as a % of Fleet 2008 50% 14.4 14.0 40% 2006 14.0 2009 2005 2004 30% 12.0 2010 10.9 11.1 20% Scrapp
Slide 19: Seaborne Exports & Ton Miles > Fleet Growth
Seaborne Exports & Ton Miles > Fleet Growth 2024 Fleet Growth Expected to Be Lowest Since 2000 (1) Product Tanker Net Fleet Growth (1) (yoy growth) (yoy growth) 13.8% Scenario 1 Scenario 2 11.7% 12.1% 11.4% 10.1%10.5% 2.9% 2.2% 2.2% 2.2% 1.8% 6.0% 6.3% 1.1% 5.6% 5.8% 4.8% 0.5% 3.8% 4.0% 4.2% 2.3% 1.
Slide 20: Conclusion
Conclusion 20
Slide 21: Investment Highlights
Investment Highlights Company Industry & Outlook Strategy • One of the largest product • Significant increase in product • Reduce leverage, maintain tanker fleets in the world tanker rates since Q1-22 liquidity and return to capital • 111 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 22: Q&A
Q&A 22
Slide 23: www.scorpiotankers.com
www.scorpiotankers.com