Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q2 2024 Earnings Presentation
25 slides from Scorpio Tankers's earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Scorpio Tankers Inc. Second Quarter 2024 Earnings Presentation July 30, 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: Q2 2024 Call Agenda
Q2 2024 Call Agenda 1. Q2 2024 Highlights 2. Product Tanker Market 3. Financial Highlights 4. Conclusion 5. Q&A
Slide 4: Q2 2024 Highlights
Q2 2024 Highlights 4
Slide 5: Financial Highlights
Financial Highlights Financial Results Quarterly TCE Rates (Includes Vessels on Time Charter) • Adj EBITDA of $278.0 million (1) $/day Q2-23 Q2-24 • Adj net income of $188.4 million or $3.77 basic and $3.60 diluted earnings per share (1) $47,156 Significant Debt Repayment $39,526 • From January 1, 2
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 Clarksons Shipping Intelligence, July 2024 7
Slide 8: Demand for Refined Products Remains Strong
Demand for Refined Products Remains Strong Global Refined Product Demand Refined Product Demand vs 2023 Baseline Million barrels per day Diesel Gasoline Jet Naphtha Fuel Oil Million barrels per day Diesel Gasoline Jet Naphtha Fuel Oil 90.0 3.0 80.2 80.1 78.6 79.0 77.4 76.5 77.2 74.3 7.6 7.5 7.7 7.6
Slide 9: Seaborne Product Exports Continue to Increase
Seaborne Product Exports Continue to Increase Seaborne Refined Product Exports Seaborne Refined Product Exports By Type Million barrels per day Million barrels per day Diesel Gasoline Naphtha Jet Other 22.0 22.0 20.9 20.6 0.2 19.7 19.9 0.2 20.0 0.2 1.6 0.2 1.5 1.1 1.4 21.0 17.7 18.0 0.2 3.1 3.1 1.3
Slide 10: Disruptions Exacerbate Strong Supply & Demand Fundamentals
Disruptions Exacerbate Strong Supply & Demand Fundamentals Ton Mile Demand Since 2019 Product Tankers Continue to Transit Around the Cape of Good Hope Index = 100, Base January 2019 Ton Mile Demand (Excl. Russia) Ton Mile Demand (Incl. Russia) Million barrels per day Via COGH Via Suez 130 4.5 125 4.
Slide 11: Refining Capacity Changes Increase Seaborne Exports, Trading & Ton Miles
Refining Capacity Changes Increase Seaborne Exports, Trading & Ton Miles Dangote Seaborne Exports (1) Global Net CDU Additions (2) Thousand barrels per day Diesel/Gasoil Fuel Oil Jet/Kero Naphtha Million barrels per day Net CDU Additions Middle East Net CDU Additions (Excl China & Middle East) 400 1
Slide 12: TMX Pipeline Increases Demand for LR2 & Aframax Vessels
TMX Pipeline Increases Demand for LR2 & Aframax Vessels Trans Mountain Pipeline (TMX) Crude Exports (1) % of LR2 Vessels Trading Clean Products (2) Thousand barrels per day 500 70% 433 434 411 65% 394 400 356 340 60% 304 300 56% 55% 200 50% 100 45% 75 51 36 39 34 40% 0 Jan-24 Feb-24 Mar-24 Apr-24 Ma
Slide 13: Aframax & LR2 Orderbook
Aframax & LR2 Orderbook Aframax & LR2 Newbuild Orders Aframax & LR2 Orderbook as a % of Fleet Number of vessels Aframax LR2 50% 450 45% 400 40% 347 350 336 35% 300 82 126 30% 250 239 220 25% 200 188 175 20% 127 35 150 92 166 15% 14% 254 221 100 10% 140 50 112 96 5% 54 0 0% 1996-2000 2001-2005 2006-2
Slide 14: Product Tanker Orderbook & Fleet Average Age
Product Tanker Orderbook & Fleet Average Age Orderbook as % of Fleet vs Avg Fleet Age Global Fleet Age Breakdown by 2026 (Including Newbuildings) Orderbook as % of Fleet 30.0% 70% 28.1% 60% 2007 Scrap 2008 Candidates 50% 20.5% 20.0% 17.6% 17.6% 2006 2005 40% 2009 16.3% 2004 30% 2010 10.0% 20% 2011 2
Slide 15: Seaborne Exports & Ton Mile Demand to Outpace Fleet Growth
Seaborne Exports & Ton Mile Demand to Outpace Fleet Growth Product Tanker Fleet Growth (1) Seaborne Ton Mile Demand & Exports (2) Number of vessels Scenario 1 Scenario 2 Scenario 3 Year over year change Refined Product Exports Ton Mile Demand 7.9% 7.5% 6.2% 5.2% 5.3% 4.6% 3.4% 3.5% 3.5% 2.7% 1.7% 2.
Slide 16: Financial Highlights
Financial Highlights 16
Slide 17: Financial Highlights
Financial Highlights Avg Daily TCE Rate by Vessel Type (Includes Vessels on Time Charter) Financial Highlights Over Last Six Quarters (Q1-23 through Q2-24) $USD thousands/day Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 $USD millions $60.0 2,500 $50.7 $2,091 $50.0 $47.2 2,000 $43.3 $39.5 $40.0 $38.3 $36.5 $1
Slide 18: Continued Reduction In Leverage & Expensive Lease Financing
Continued Reduction In Leverage & Expensive Lease Financing Outstanding Indebtedness by Type Net Debt $USD millions Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $USD millions Gross Debt Outstanding Cash & Cash Equivalents $3,500 $2,933 $3,164 $3,000 $70 $2,500 $574 $1,581 $1,263
Slide 19: Debt Repayment Schedule
Debt Repayment Schedule Debt Repayment Schedule (1) Debt Repayment from December 31, 2021, through September 30, 2024 $USD millions Payments made through July 29, 2024 Scheduled repayments $USD millions Unsecured Notes Prepayment of Credit Facility $3,500 $100.0 $3,164 $85.2 $3,000 $82.8 $2,500 $1,9
Slide 20: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rates Potential Annual Cash Flow Generation After Debt Repayment (1) $USD/day $USD millions $45,679 $44,222 $1,768 $39,660 $38,813 $37,500 $36,006 $34,800 $1,396 $32,949 $32,154 $28,313 $33.3/Share $1,024 $26.3/Share $652 $19.3/Sh
Slide 21: Conclusion
Conclusion 21
Slide 22: Investment Highlights
Investment Highlights Company Industry & Outlook Strategy • One of the largest product • Significant increase in product • Reduce leverage, maintain tanker fleets in the world tanker rates since Q1-22 liquidity and return capital to • 106 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 23: Time-Chartered Out Vessels
Time-Chartered Out Vessels Vessel Vessel class Term Average Rate ($/day) Commencement date STI Memphis MR Three Years $21,000 June-22 STI Miracle MR Three Years $21,000 August-22 STI Magnetic MR Three Years $23,000 July-22 STI Marshall MR Three Years $23,000 July-22 STI Duchessa MR Three Years $25,0
Slide 24: Q&A
Q&A 24
Slide 25: www.scorpiotankers.com
www.scorpiotankers.com