Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Capital Link Presentation (January 2024)
19 slides from Scorpio Tankers's conference presentation, Jan 10, 2024
Slide 1: Scorpio Tankers Inc. Capital Link Presentation
Scorpio Tankers Inc. Capital Link Presentation January 10, 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: Scorpio Tankers at a Glance
Scorpio Tankers at a Glance Key Facts Fleet Overview • Scorpio Tankers Inc. (“Scorpio”) is the world’s largest product 111 Product Tanker Vessels on the Water tanker owner, providing marine transportation of refined petroleum products (gasoline, diesel, jet fuel and naphtha) • NYSE-listed under the
Slide 4: What is a Product Tanker?
What is a Product Tanker? • Product tankers provide the marine transportation of refined petroleum products to areas of demand, whereas crude tankers provide the marine transportation of crude oil to refineries • Product tankers have coated tanks (typically epoxy) making them easy to clean and preve
Slide 5: Product Tanker Types, Cargoes & Trade Flows
Product Tanker Types, Cargoes & Trade Flows Vessel Types, Cargoes & Trading Regions Product Tanker Trade Routes Handymax MR LR2 Scorpio Fleet 14 58 39 (# of vessels) Trading Type Short Range Medium Range Long Range DWT 25,000-39,999 40,000-54,999 80,000-120,000 Avg Cargo Size ~200,000 bbls ~300,000
Slide 6: Largest and Most Modern Product Tanker Fleet in the World
Largest and Most Modern Product Tanker Fleet in the World • One of the world’s largest and youngest product tanker fleets, a leading owner in the MR and LR2 product tanker segments • While a significant portion of the global HM, MR and LR2 fleets are older than 15 years of age, Scorpio’s fleet has a
Slide 7: Financial Highlights
Financial Highlights Avg Daily TCE Rate by Vessel Type (Includes Vessels on Time Charter) Financial Highlights Over Last Seven Quarters (Q1-22 through Q3-23)(1) ($USD thousands /day) ($USD millions) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 $2,464 $50.27/share $52.0 $52.1 $48.2 $46.2 $43.3 $1,803 $4
Slide 8: Continued Reduction in Leverage & Expensive Lease Financing
Continued Reduction in Leverage & Expensive Lease Financing Outstanding Indebtedness by Type Net Debt ($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 $278 $70 $2,500 $574 $1,4
Slide 9: Significant Operating Leverage & Earnings Potential
Significant Operating Leverage & Earnings Potential Company Fleet TCE Rate Potential Annual Cash Flow Generation Excluding Debt Repayment (1) ($/day) ($USD millions) $45,679 $44,222 $1,970 $37,500 $36,006 $32,154 $32,949 $37.1/share $1,565 $29,693 $28,313 $29.5/share $22,644 $1,160 $21.8/share $15,1
Slide 10: Short Term Market Update
Short Term Market Update Product Tanker Earnings Remain Elevated through Refinery Maintenance (1) Middle East Refinery Maintenance Started Early (Capacity Offline) (2) ($/day) (mb/d) LR2 Eco-Middle East to Japan MR Eco-Avg Earnings $100,000 2.0 $80,000 1.5 $60,000 1.0 $40,000 0.5 $20,000 0.0 $0 US D
Slide 11: Disruptions Exacerbate Strong Supply & Demand Fundamentals
Disruptions Exacerbate Strong Supply & Demand Fundamentals ~15% of the Product Tanker Fleet has Traded Russian CPP(1) Lower Water Levels Have Reduced Panama Canal CPP Flows (# of vessels) (million barrels) 500 35 471 45 400 30 64 25 300 266 20 200 15 100 96 10 May-21 May-22 May-23 Jan-21 Jun-21 Jan-
Slide 12: Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels
Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels Refined Product Demand Expected to Increase through 2024 (1) • Product tanker earnings have remained at (mb/d) elevated levels since March 2022 Diesel Gasoline Jet Naphtha Fuel Oil 90.0 80.6 80.6 77.1 76.3 76.8 78.7 79.1 79.0 77.8
Slide 13: Refining Capacity & Regional Imbalances Drive Flows
Refining Capacity & Regional Imbalances Drive Flows Cumulative Net Refining Capacity Additions / (Closures) by Region 2013 to 2023 (1) Refining Capacity Additions / (Closures) By Region (1) (mb/d) (mb/d) Africa Asia (Exl India/China) China India Europe FSU Middle East Latin America North America 5.0
Slide 14: Seaborne Exports & Ton Mile Demand Have Been Resilient
Seaborne Exports & Ton Mile Demand Have Been Resilient Global Crude Oil Demand Seaborne Product Exports Have Increased in 20 of the Last 24 Years (mb/d) (yoy, mb/d) 104 96 97 99 100 101 97 99 101 102 2.0 89 89 91 92 94 92 86 87 87 86 83 85 77 78 79 80 1.0 0.0 -1.0 -2.0 -3.0 Ton Mile Demand Has Incre
Slide 15: Modest Orderbook & Aging Fleet with Significant Scrapping Potential
Modest Orderbook & Aging Fleet with Significant Scrapping Potential Product Tanker 10k+ dwt Orderbook as % of Fleet vs Avg Age Age Distribution of Fleet through 2026 (1) (% of Fleet) (DWT million) HM MR LR1 LR2 Total 70% 16.00 60% 2007 14.4 14.0 Orderbook as a % of Fleet 2008 50% 14.00 40% 2006 2009
Slide 16: Seaborne Exports & Ton Miles > Fleet Growth
Seaborne Exports & Ton Miles > Fleet Growth 2024 Fleet Growth Expected to Be Lowest Since 2000 (1) Refined Product Exports & Ton Mile Demand Growth (yoy growth) (yoy growth) Refined Product Exports Ton Mile Demand 13.8% 15.0% 12.1% 11.7% 11.4% 10.3% 10.5% 8.3% 10.1% 10.0% 6.1% 5.0% 4.6% 5.0% 3.7% 3.
Slide 17: 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 • 111 Eco (fuel-efficient) • Robust product demand and shareholders
Slide 18: Q&A
Q&A 18
Slide 19: www.scorpiotankers.com
www.scorpiotankers.com
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