Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — IPO Roadshow (May 2020)
19 slides from Scorpio Tankers's IPO roadshow presentation, May 26, 2020
Slide 1: Scorpio Tankers Inc. Senior Unsecured Notes Offering
May 26, 2020 Scorpio Tankers Inc. Senior Unsecured Notes Offering
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: Transaction Summary
Transaction Summary 4 Actual offering size and pricing may differ materially from the figures shown; offering size and pricing to be determined by negotiations between the Company and the underwriters. Issuer Scorpio Tankers Inc. (the “Company”) Security Fixed Rate Senior Unsecured Notes due 2025 (t
Slide 4: Largest & Most Modern Product Tanker Fleet in the World
Largest & Most Modern Product Tanker Fleet in the World 137 wholly owned, finance leased or bareboat chartered-in tankers on the water with an average age of 4.6 years Vessels trading within one of the world’s largest product tanker platforms with a strong track record Commercial pools provide econo
Slide 5: Scorpio at a Glance
Scorpio at a Glance Fleet Overview Key Facts 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) to a diversified blue chip customer base The Company’s fleet consists of 1
Slide 6: What are Product Tankers?
What are Product Tankers? Product tankers provide marine transportation of refined petroleum products or “clean products” (gas oil/diesel, gasoline, jet fuel and naphtha), while crude tankers transport “dirty products” (crude oil and fuel oil) Product tankers have coated tanks, typically epoxy, maki
Slide 7: COVID-19 Implications
COVID-19 Implications Oil & Refined Products Market Impact Significant decrease in short term oil demand as travel restrictions and other preventive measures to reduce spread have taken place In response: OPEC+ announced production cuts of 9.7 mb/d, starting May 1 Reduction in refinery runs of 17.8
Slide 8: Short Term Market Update
Short Term Market Update Pre COVID-19 product tankers were experiencing their strongest spot market since 2015 driven by IMO 2020 and regional refined product imbalances COVID-19 has led to an oversupply of products and created logistical challenges in the global oil markets, which has increased the
Slide 9: Strong Spot Market TCE Rates Since October 2019
Strong Spot Market TCE Rates Since October 2019 Product Tanker Market MR Spot TCE Rates ($/day) Product Tanker Market LR2 Spot TCE Rates ($/day) Source: Clarksons Shipping Intelligence, May 2020 1) May-20 rates reflect the spot TCE rates from May 1-15, 2020 Prior to the outbreak of the COVID-19 pand
Slide 10: Largest & Most Modern Product Tanker Fleet in the World
Largest & Most Modern Product Tanker Fleet in the World Largest & Most Modern Product Tanker Fleet World’s largest and youngest product tanker fleet, including the leading owner in the MR and LR2 product tanker segments The Scorpio fleet has an average age of 4.6 years, significantly less than its p
Slide 11: Historical Financial Overview
Historical Financial Overview Source: Company Earnings Releases 1) The average daily Time Charter Equivalent (“TCE”) revenue and duration of contracted pool voyages and time charters for the Company’s vessels thus far in the second quarter of 2020 as of May 6, 2020 Adjusted EBITDA ($USD millions) Av
Slide 12: Financial Performance Last Two Quarters
Q4-19A Q1-20A Q2-20 (1) Average Fleet TCE ($/day) $ 19,910 $ 22,644 $ 34,219 Vessel Revenue $ 221,622 $ 254,167 Vessel operating costs (85,412) (81,463) Voyage expenses (2,483) (4,220) Depreciation (59,113) (60,038) G&A (15,758) (17,261) Total operating expenses (162,766) (162,982) Operating income
Slide 13: Debt Amortization
Debt Amortization 1) Company Q1-20 Earnings Release 2) In 2018 the Company completed an exchange for $203.5 million of the original $360 million convertible notes due 2019 to newly issued notes due 2022. Scheduled Principal and Debt Repayments through 2021 (1) Issuance Date Security Issuance Coupon
Slide 14: Q2-20 TCE Rate Update
Q2-20 TCE Rate Update Q2-20 Average Daily TCE Revenue as of May 6, 2020 Pool Average Daily TCE Revenue ($/day) % of Days Booked in Q2-20 LR2 $53,000 63% LR1 $41,000 60% MR $25,000 56% Handymax $20,000 60% Below is a summary of the average daily Time Charter Equivalent (“TCE”) revenue and duration of
Slide 15: Potential Cash Flow Generation
Potential Cash Flow Generation Based on 137 vessels, 365 days per year and an average daily cash breakeven per vessel of $17,100/day TCE Rate ($/day) Illustrative Annualized Cash Flow Sensitivity at Different TCE Rates As of May 6, 2020 the Company’s average daily TCE for Q2-20 was $34,219
Slide 16: Long Term Fundamentals
Long Term Fundamentals Demand Oil demand growth expected to increase after Q2-20 Growing regional imbalances of products driven by different crude slates, product yields/grades and refining capacity expected to continue Refining capacity expansions continue to move closer to the well head and farthe
Slide 17: Record Low Product Tanker Orderbook as a % of Fleet
Record Low Product Tanker Orderbook as a % of Fleet Limited newbuilding orders continue to extend the duration of limited fleet growth over the next three years Current orderbook is near its lowest levels ever recorded, measuring 7.4% of existing fleet on water Significantly below longer-term five a
Slide 18: Final Thoughts
Final Thoughts 4 Rates At All-Time High We are in the middle of a confluence of events that has caused rates to hit unprecedented levels Significant Cash Flows Over the next couple of quarters, the Company should be in a position to harvest significant cash flows to pay down debt Order Book Near Low
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