Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q1 2024 Earnings Presentation
22 slides from Scorpio Tankers's earnings presentation, May 9, 2024
Slide 1: Scorpio Tankers Inc. First Quarter 2024 Earnings Presentation
Scorpio Tankers Inc. First Quarter 2024 Earnings Presentation May 9, 2024
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 2024 Call Agenda
Q1 2024 Call Agenda 1.Q1 2024 Highlights 2.Product Tanker Market 3.Financial Highlights 4.Conclusion 5.Q&A 3
Slide 4: Q1 2024 Highlights
Q1 2024 Highlights 4
Slide 5: Highlights
Highlights Financial Results Quarterly TCE Rates (Includes Time Charters) $/day • Adj EBITDA of $292.8 million (1) Q1-23 Q1-24 • Adj net income of $206.6 million or $4.14 basic and $3.97 diluted earnings per share $50,663 (1) $43,292 Significant Debt Repayment $38,349 $33,517 $33,934 $32,427 • From
Slide 6: Product Tanker Market
Product Tanker Market 6
Slide 7: Short Term Market Update
Short Term Market Update MR & LR2 Spot Rates $/day LR2 Eco-Middle East to Japan MR Eco-Avg Earnings $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23
Slide 8: Refined Product Demand Exceeds Pre-Pandemic Levels
Refined Product Demand Exceeds Pre-Pandemic Levels Global Refined Product Demand Refined Product Demand vs 2023 Baseline (mb/d) Diesel Gasoline Jet Naphtha Fuel Oil (mb/d) Gasoline Naphtha Diesel Jet Fuel Oil 90.0 2.5 79.9 80.9 80.8 78.6 78.0 77.2 76.3 74.1 7.4 2.0 6.9 7.7 7.5 69.1 7.4 7.1 8.8 7.5 6
Slide 9: Seaborne Refined Product Exports Remain Resilient
Seaborne Refined Product Exports Remain Resilient March Seaborne Refined Product Exports are 1.1 mb/d Above 2019 Levels Seaborne Diesel Exports (mb/d) (mb/d) 2019-23 Range 2019-23 Avg YTD 22.0 12.5 12.0 11.5 21.1 11.0 21.0 10.5 20.6 10.0 20.5 9.5 20.0 20.0 9.0 20.0 Jan Feb Mar Apr May Jun Jul Aug Se
Slide 10: Refining Capacity Changes Drive Ton Mile Demand
Refining Capacity Changes Drive Ton Mile Demand Refining Capacity Additions & (Closures) (1) Middle East Refinery Runs (2) mb/d mb/d Middle East Refinery Runs Estimate Africa Asia (Exl India/China) India Europe FSU Middle East Latin America North America 10.0 2.0 1.5 0.3 0.4 9.0 0.1 0.1 - 1.0 0.3 0.
Slide 11: Disruptions Exacerbate Strong Supply & Demand Fundamentals
Disruptions Exacerbate Strong Supply & Demand Fundamentals Ton Mile Demand Has Increased 21% since 2019 (Excluding Russia) Suez Canal Refined Product Volumes Index = 100, Base Jan 2019 mb/d Via COGH Via Suez 4.0 130 Ton Mile Demand (Excluding Russia) Ton Mile Demand (Including Russia) 3.5 120 3.0 0.
Slide 12: Increase in Orderbook is Offset By Ageing Fleet
Increase in Orderbook is Offset By Ageing Fleet Orderbook as % of Fleet vs Avg Age Global Fleet Age Breakdown by 2026 (Including Newbuildings) Average Age, years Orderbook as % of Fleet DWT Millions Total Tanker 10k+ dwt Fleet - Average Age (LHS) % of Fleet HM MR LR1 LR2 % of Fleet Product Tanker 10
Slide 13: Seaborne Exports & Ton Miles to Outpace Fleet Growth
Seaborne Exports & Ton Miles to Outpace Fleet Growth Historical Product Tanker Fleet Growth Seaborne Ton Mile Demand & Exports (yoy growth) (yoy growth) 13.8% Refined Product Exports Ton Mile Demand 12.1% 10.0% 11.7% 11.4% 10.1% 10.5% 8.2% 7.5% 7.0% 6.3% 4.9% 5.6% 6.0% 5.8% 4.8% 5.0% 4.8% 3.7% 4.0%
Slide 14: Financial Highlights
Financial Highlights 14
Slide 15: Financial Highlights
Financial Highlights Avg Daily TCE Rate by Vessel Type (Includes Vessels on Time Charter) Financial Highlights Over Last Five Quarters (Q1-23 through Q1-24) ($USD thousands /day) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 ($USD millions) $50.7 $1,718 $43.3 $39.5 $38.3 $36.5 $33.5 $33.9 $1,252 $31.2 $32.4 $29.9 $
Slide 16: Continued Reduction in Leverage & Expensive Lease Financing
Continued Reduction in Leverage & Expensive Lease Financing Outstanding Indebtedness by Type Net Debt ($USD millions) ($USD millions) Lease Financing Bank Facilities Unsecured Notes Convertible Bonds Gross Debt Outstanding Cash & Cash Equivalents $3,500 $3,164 $2,933 $3,000 $278 $70 $2,500 $574 $1,5
Slide 17: Debt Repayment Schedule
Debt Repayment Schedule Debt Repayment Schedule Debt Repayment from December 31, 2023, through June 30, 2024 ($USD millions) ($USD millions) Scheduled repayments $200.0 $175.2 Announced vessel purchases and maturities in 2024 and 2025 2000 Unsecured Notes $121.6 $102.3 $93.0 $1,618 $100.0 $70.6 $51.
Slide 18: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment ($/day) ($USD millions) $45,679 $44,222 $1,930 $39,660 $38,600 $37,500 $36,006 $35.4/Share $1,539 $32,154 $32,949 $28,313 $28.2/Share $1,149 $21/Share $758 $15,41
Slide 19: Conclusion
Conclusion 19
Slide 20: 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 capital to • 109 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 21: Q&A
Q&A 21
Slide 22: www.scorpiotankers.com
www.scorpiotankers.com