Scorpio Tankers Inc. · NYSE:STNG
Scorpio Tankers — Q2 2019 Earnings Presentation
13 slides from Scorpio Tankers's earnings presentation, Jul 31, 2019
Slide 1: Q2-19 Earnings Presentation
Q2-19 Earnings Presentation July 31, 2019 1 1
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 Tanker Inc.’s (“Scorpio’s”) curre
Slide 3: Disclaimer and Forward-looking Statements (Cont'd)
Disclaimer and Forward-looking Statements (Cont’d) This presentation describes time charter equivalent revenue, or TCE revenue. TCE revenue is vessel revenue less voyage expenses (including bunkers and port charges) and is not a measure prepared in accordance with IFRS (i.e. a "Non-IFRS" measure). T
Slide 4: Q2-19 Financial Results
Q2-19 Financial Results Net Loss of $29.7 million Q2-2019 Adjusted EBITDA* of $71.8 million, a $24.5 million y-o-y quarterly increase Financial Results Net cash flow from operating activities of $46.7 million Liquidity $307.3 million in cash as of July 30, 2019 The Company’s Board of Directors decla
Slide 5: Company Highlights
Company Highlights Best in Class Fleet • Youngest modern fuel efficient fleet of vessels • IMO 2020 ready with scrubbers to be installed on MR, LR1 and LR2 vessels Significant Operating Leverage • World’s largest product tanker fleet covering all asset classes Strong Balance Sheet • Liquidity positi
Slide 6: Natural and Proactive De-leveraging
Natural and Proactive De-leveraging Debt Outstanding (Excl IFRS 16 Operating Leases) IFRS 16 Operating Leases $3,200,000 $3,000,000 2,980,834 2,931,630 2,879,859 73,476 68,073 $2,800,000 2,724,169 (Thousands $USD) 66,243 $2,600,000 2,980,834 2,858,154 $2,400,000 2,811,786 2,657,926 $2,200,000 $2,000
Slide 7: Improving EBITDA and Cash Flow
Improving EBITDA and Cash Flow Adjusted EBITDA* (millions $USD) Net Cash Flow From Operating Activities (millions $USD) 2018 2019 2018 2019 $200 $140 $185.1 $121.3 $120 $150 $100 $113.2 $80 $74.6 $104.9 $100 $60 $52.7 $71.8 $46.7 $57.6 $40 $34.8 $47.3 $50 $17.9 $20 $0 $0 Q1 Q2 1H Q1 Q2 1H (*) See re
Slide 8: Q2 TCE YoY Comparison
Q2 TCE YoY Comparison Q2-18 Q2-19 $18,000 $16,974 $16,000 $14,527 $14,000 $13,436 $12,861 $12,567 $12,000 $11,520 $11,267 $11,090 $/Day $10,000 $8,000 $6,000 $4,000 HM MR LR1 LR2 8 8
Slide 9: Market Summary
Market Summary Short Term Outlook • Extended and elevated refinery maintenance season • From May to June 2019 an average of 6.2 mb/d of offline capacity vs five year avg of 4.9 mb/d • Reduction in naphtha flows as a result of cheap LPG prices providing substitute for Asian petrochemical sector • Des
Slide 10: Monthly Spot TCE Rates Higher YoY
Monthly Spot TCE Rates Higher YoY MR Monthly Spot TCE Rates LR2 Monthly Spot TCE Rates ($/day) FY-18 FY-19 $18,000 FY-18 FY-19 $30,000 $16,000 $25,000 $14,000 $20,000 $12,000 $15,000 $10,000 $10,000 $8,000 $5,000 $6,000 $4,000 $0 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Source: Clarksons Rese
Slide 11: Q3 TCE YoY Guidance Comparison
Q3 TCE YoY Guidance Comparison (1) (2) Q3-18 Q3-19 $16,000 $15,000 $14,300 $14,200 $14,000 $12,000 $12,000 $11,000 $10,200 $/Day $10,000 $8,000 $8,000 $8,000 $6,000 $4,000 HM MR LR1 LR2 1) Q3-18 guidance from July 31, 2018 Company’s earning release 2) Q3-19 guidance from July 31, 2019 Company’s earn
Slide 12: Appendix
Appendix CccRrio Tankers Inc. 12
Slide 13: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA For the three months ended March 31, In thousands of U.S. dollars 2019 2018 Net income / (loss) $ 14,476 $ (31,794) Financial expenses 48,756 39,418 Financial income (3,119) (385) Depreciati