Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Investor Presentation (April 2016)
20 slides from Scorpio Tankers's investor presentation, April 2016
Slide 1: Scorpio Tankers Inc. Company Presentation
0 Scorpio Tankers Inc. Scorpio Tankers Inc. Company Presentation April 2016
Slide 2: Company Overview
Tankers Inc. 1 Company Overview • Scorpio Tankers Inc. (“STNG” or “Company") is the world’s largest ECO-spec product tanker company By Q4-17, the Company will own a fleet of 87 eco-design product tankers Currently 76 (1) product tankers on the water with an average age of 1.5 years, and 13(2) pr
Slide 3: Operating Leverage Continues to Grow
Tankers Inc. 2 Operating Leverage Continues to Grow Class Existing To be Delivered Total Owned TC-In Total 2016 2017 Handymax 14 - - 14 6 20 MR 42 (1) - 8 50 4 54 LR1 - - - - 1 1 LR2 20 3 - 23 2 25 Total 76 3 8 87 13 100 (1) Excludes three vessels currently held for sale.
Slide 4: Product Tanker Owners & Operators
Tankers Inc. 3 Product Tanker Owners & Operators Top Pool Operators Top Five Handymax & MR Owners (1) Pool Operator Handymax MR LR2 Total # Owner Vessels Scorpio 32 80 21 133 1 Scorpio Tankers 56 Norient 37 53 - 90 2 TORM A/S 53 Handytankers 65 20 - 85 3 Sinokor Merchant 38 Navig8 7 13 13 33 4 Inter
Slide 5: Scorpio Pools Have Consistently Outperformed The Market
Tankers Inc. 4 Scorpio Pools Have Consistently Outperformed The Market Pool Performance ($/day) $25,000 SHTP Handymax Benchmark $20,000 Scorpio $15,000 Handymax Tanker Pool $10,000 (SHTP) $5,000 $0 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $30,000 Scor
Slide 6: Scorpio Well Positioned Now that Rates Have Recovered
Tankers Inc. 5 Scorpio Well Positioned Now that Rates Have Recovered LR2 MR Handymax $80,000 $70,000 $60,000 $50,000 $/Day $40,000 $30,000 $20,000 $10,000 $0 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Source: Clarksons Research Services, February 2016
Slide 7: Scorpio's Newbuildings Ordered at Favorable Values
Tankers Inc. 6 Scorpio’s Newbuildings Ordered at Favorable Values Historical Data 2005-2016 Scorpio Average Vessel ($ in millions) Current Avg Max Min Purchase Price Handymax $33 $35 $52 $28 ($ In Millions) Price MR $35 $40 $54 $34 Handymax $31 LR2 $53 $59 $83 $47 MR $36 LR2 $53 $90 $80 $70 $60 ($ M
Slide 8: Product Tankers in the Oil Supply Chain
Tankers Inc. 7 Product Tankers in the Oil Supply Chain • When crude oil is extracted from the earth, it’s transported to a refinery and processed into different products • The demand for different products will depend on the demand and consumption of the individual region or economy • Structural dem
Slide 9: Tanker Types
Tankers Inc. 8 Tanker Types Tankers “Dirty” “Clean” Crude Products VLCC Suezmax Aframax Panamax Handysize LR2 MR/MR2 LR1 Handysize (200,000 + (120,000 - (80,000 - (60,000 - (< 60,000 (80,000- (25,000- (60,000- (<25,000 DWT) 200,00 DWT) 120,00 DWT) 80,00 DWT) DWT) 120,000 DWT) 60,000 DWT) 80,000 DWT)
Slide 10: Product Tanker Specifications
Tankers Inc. 9 Product Tanker Specifications • Product tankers have coated tanks, IMO Classes I, II, & III typically epoxy, making them easy to IMO Class I Chemical IMO Class I refers to the transportation of the clean and preventing cargo Tankers most hazardous, very acidic, chemicals. The contamin
Slide 11: Global Oil Demand Continues to Increase
Tankers Inc. 10 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 efficienc
Slide 12: Structural Drivers in Demand Dynamics for Refined Products
Tankers Inc. 11 Structural Drivers in Demand Dynamics for Refined Products • Reduction in oil prices has increased refining margins, production of refined products, storage, and consequently the quantity of products to be transported. • US has emerged as a refined products powerhouse, becoming the w
Slide 13: U.S. Has Become the World's Largest Products Exporter
Tankers Inc. 12 U.S. Has Become the World’s Largest Products Exporter • In the last few years, the US refining industry has experienced an extraordinary reversal and is now the world’s largest product exporter with 4.5 mb/d of gross exports in September 2015, roughly five times as much as in January
Slide 14: Refinery Capacity Expansions Drive Demand
Tankers Inc. 13 Refinery Capacity Expansions Drive Demand • The refining industry continues to undergo massive expansion and restructuring as world scale refining hubs in Asia, the Middle East, and United States are crowding out legacy capacity in Europe and OECD Asia Oceania. • According to Interna
Slide 15: Middle East Investing in New Refinery Capacity
Tankers Inc. 14 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 looks the most likely destination for much of the new volumes, pa
Slide 16: Product Tanker Trade Map
Tankers Inc. 15 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-Regio
Slide 17: Highlights
Tankers Inc. 16 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 Newbuilds contracted at favourable prices, relative to historical averages, and at reputable yards
Slide 18: Appendix
Cecsxrio Tankers Inc. NYSE Appendix
Slide 19: Appendix – Fleet List
Tankers Inc. 18 Appendix 1 – Fleet List Owned Vessels 2016 Delivery Schedule Name Year DWT Type Name Year DWT Type Name Year DWT Type STI Comandante May-14 38,000 HM STI Mayfair Oct-14 52,000 MR STI Jermyn May-16 114,000 LR2 STI Brixton Jun-14 38,000 HM STI Yorkville Oct-14 52,000 MR STI Selatar Aug
Slide 20: Appendix – Largest Shareholders
Tankers Inc. 19 Appendix 2 – Largest Shareholders # Holder Ownership 1 Wellington Management Company 9.7% 2 Dimensional Fund Advisors 6.3% 3 BlackRock Fund Advisors 4.0% 4 Putnam Investment Management 3.9% 5 Daruma Capital Management 3.3% 6 Avenue Capital Management II 3.0% 7 Baron Capital Managemen