Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q1 2023 Earnings Presentation
23 slides from Scorpio Tankers's earnings presentation, May 2, 2023
Slide 1: Scorpio Tankers Inc. First Quarter 2023 Earnings Presentation
Scorpio Tankers Inc. First Quarter 2023 Earnings Presentation May 2, 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: Q1 2023 Call Agenda
Q1 2023 Call Agenda 1.Q1 2023 Highlights 2.Financial Highlights 3.Product Tanker Market 4.Conclusion 5.Q&A 3
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights 4
Slide 5: Q1 2023 Highlights
Q1 2023 Highlights Highlights Quarterly TCE Rates ($/day) Financial Results Q1-22 Q1-23 • Adj EBITDA of $286.4 million $43,292 $38,349 $33,517 • Adj net income of $195.6. million or $3.44 basic and $3.31 diluted earnings per share (1) $16,305 $15,949 $14,475 Share Repurchases • Since January 1, 2023
Slide 6: Financial Highlights
Financial Highlights 6
Slide 7: Financial Highlights
Financial Highlights Avg Daily TCE Rate by Vessel Type (Includes Vessels on Time Charter) Financial Highlights Over Last Five Quarters (Q1-22 through Q1-23)(1) ($/day) ($USD millions) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 $52,023 $52,065 $1,847 $48,152 $50.27/share $46,231 $43,292 $41,143 $41,831 $39,783 $1
Slide 8: Financing Update
Financing Update Repurchase of Lease Financing List of Vessels Repurchased & Upcoming # Vessel Name Type Built Financing Completed/Expected* • Since August 2022, the company has given notice to repurchase 41 vessels under lease 1 STI Opera MR 2014 Lease Financing Q3-22 2 STI Venere MR 2014 Lease Fin
Slide 9: Continued Deleveraging & Balance Sheet Optimization
Continued Deleveraging & Balance Sheet Optimization Debt Repayment from December 31, 2022, through June 30, 2023 Outstanding Indebtedness by Type ($USD millions) ($USD millions) Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $2,500 $3,500 $117 $181 $3,164 $32 $274 $3,000 $278 $2,0
Slide 10: Improving Balance Sheet, Strong Liquidity & Minimal Capex
Improving Balance Sheet, Strong Liquidity & Minimal Capex Outstanding Indebtedness Debt Repayment Schedule ($USD millions) ($USD millions) $3,500 $400.0 $383.7 $3,164 $2,966 Payments made through April 27, 2023 $3,000 Remaining Principal Payments $300.0 $2,652 Repurchase of Lease Financing $2,479 $2
Slide 11: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment (1) ($/day) ($USD millions) $45,679 $44,152 $1,991 $39,883 $37,500 $33.5/share $36,006 $1,579 $29,693 $26.6/share $1,166 $22,644 $19.6/share $754 $15,100 $15,415
Slide 12: Product Tanker Market
Product Tanker Market 12
Slide 13: Short Term Market Update
Short Term Market Update Weekly MR & LR2 Spot Earnings Since January 2022 ($/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 9.4 8.5 8.5 $80,000
Slide 14: Refined Product Demand & Seaborne Exports Continue to Increase
Refined Product Demand & Seaborne Exports Continue to Increase Refined Product Demand Expected to Increase through 2023 (1) • Global refined product demand continues (mb/d) Diesel Gasoline Jet Naphtha Fuel Oil 90 to increase 76.9 74.0 75.5 75.5 77.0 76.7 76.5 77.7 78.9 78.9 6.8 69.8 7.7 7.4 7.7 7.5
Slide 15: Refinery Changes Drive Global Trade Flows & Ton Miles
Refinery Changes Drive Global Trade Flows & Ton Miles Global Refining Capacity Additions / (Closures) Excluding China (1) Middle East Clean Product Exports Increase(2) (mb/d) (mb/d) Africa Asia (Excl China) Europe FSU Middle East Latin America North America 2.0 4.0 0.8 1.1 1.0 0.4 0.6 3.0 0.3 0.3 0.
Slide 16: Russian Products Find New Markets as Gray Fleet Increases
Russian Products Find New Markets as Gray Fleet Increases Russian CPP Exports Have Increased Post Feb 5 Sanctions Product Tanker Vessels Loading Russian CPP after Feb 5, 2023 (mb/d) (# of Vessels) 2.0 322 29 39 1.5 167 87 1.0 HM MR LR1 LR2 Total # of Vessels Russian CPP Imports by Region Russian CPP
Slide 17: Orderbook Remains Near Record Lows & Asset Values Increase
Orderbook Remains Near Record Lows & Asset Values Increase Orderbook as a % of Fleet by Sector Historical Product Tanker Earnings vs. Orderbook as a % of Fleet Orderbook as % of Fleet ($/day) 50.2% Orderbook as a % of Fleet (LHS) Clean Tanker Earnings (RHS) 70.0% $70,000 60.0% $60,000 50.0% $50,000
Slide 18: Limited Fleet Growth & Ageing Fleet
Limited Fleet Growth & Ageing Fleet Newbuilding Product Tanker Orders Fleet Age Profile as of April 2023 (# of Vessels) (# of Vessels) MR LR1 LR2 HM MR LR1 LR2 500 300 433 233 238 400 200 200 172 300 154 162 255 149 146 146 134 188 112 116 113 185 180 179 106 108 200 95 89 151 100 77 83 78 77 107 11
Slide 19: Seaborne Exports & Ton Miles > Fleet Growth
Seaborne Exports & Ton Miles > Fleet Growth Orderbook as a % of Fleet at Record Lows One- & Three-Year Eco Vessel Time Charter Rates 70.0% ($/day) MR 1 yr TC Rate LR2 1 yr TC Rate 60.0% 60,000 MR 3 yr TC Rate LR2 3 yr TC Rate 50.0% 50,000 40.0% 40,000 30.0% 30,000 20.0% 20,000 10.0% 6.0% 10,000 0.0%
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 • 113 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 22: Q&A
Q&A 22
Slide 23: www.scorpiotankers.com
www.scorpiotankers.com