Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three and six months
ended June 30, 2021. The Company also announced that its Board of
Directors has declared a quarterly cash dividend of $0.10 per share
on the Company’s common stock.
Results for the three months ended June
30, 2021 and 2020
For the three months ended June 30, 2021, the
Company had a net loss of $52.8 million,
or $0.97 basic and diluted loss per share.
For the three months ended June 30, 2021, the
Company had an adjusted net loss (see Non-IFRS Measures section
below) of $51.1 million, or $0.94 basic and diluted loss per share,
which excludes from the net loss $1.6 million, or $0.03 per basic
and diluted share, of losses recorded on the transaction to
exchange $19.4 million in aggregate principal amount of the
Company's existing Convertible Notes due 2022 for $19.4 million in
aggregate principal amount of new Convertible Notes due 2025,
described in detail below.
For the three months ended June 30, 2020, the
Company had net income of $143.9 million, or $2.63 basic and $2.40
diluted earnings per share.
For the three months ended June 30, 2020, the
Company had an adjusted net income (see Non-IFRS Measures section
below) of $144.3 million, or $2.63 basic and $2.40 diluted earnings
per share, which excludes from net income a $0.3 million, or $0.01
per basic and diluted share, write-off of deferred financing
fees.
Results for the six months ended June
30, 2021 and 2020
For the six months ended June 30, 2021, the
Company had a net loss of $115.2 million, or $2.12 basic and
diluted loss per share.
For the six months ended June 30, 2021, the
Company had an adjusted net loss (see Non-IFRS Measures section
below) of $108.3 million, or $1.99 basic and diluted loss per
share, which excludes from the net loss $5.5 million, or $0.10 per
basic and diluted share, of losses recorded on the transaction to
exchange the Company's existing Convertible Notes due 2022 for new
Convertible Notes due 2025, described in detail below, as well as a
$1.3 million, or $0.02 per basic and diluted share, write-off of
deferred financing fees related to the refinancing of certain
credit facilities.
For the six months ended June 30, 2020, the
Company had net income of $190.6 million, or $3.48 basic and $3.21
diluted earnings per share.
For the six months ended June 30, 2020, the
Company had an adjusted net income (see Non-IFRS Measures section
below) of $190.9 million, or $3.49 basic and $3.21 diluted earnings
per share, which excludes from net income a $0.3 million, or $0.01
per basic and diluted share, write-off of deferred financing
fees.
Declaration of Dividend
On August 4, 2021, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about September 29, 2021 to all shareholders
of record as of September 9, 2021 (the record date). As of
August 4, 2021, there were 58,369,516 common shares of the
Company outstanding.
Summary of Second Quarter and Other
Recent Significant Events
- Below is a summary of the average
daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS
Measures section below) and duration of contracted voyages and time
charters in the pools (excluding voyages outside of the pools) for
the Company's vessels thus far in the third quarter of 2021 as of
the date hereof (See footnotes to "Other operating data" table
below for the definition of daily TCE revenue):
| |
Total |
|
Pool |
Average daily TCE revenue |
% of Days |
|
LR2 |
$ |
9,500 |
47 |
% |
| LR1 |
$ |
9,000 |
43 |
% |
| MR |
$ |
10,500 |
48 |
% |
| Handymax |
$ |
7,500 |
45 |
% |
-
Below is a summary of the average daily TCE revenue earned by the
Company's vessels in each of the pools (excluding voyages outside
of the pools) during the second quarter of 2021:
|
Pool |
Average daily TCE revenue |
|
LR2 |
$ |
11,984 |
|
LR1 |
$ |
11,529 |
|
MR |
$ |
12,530 |
|
Handymax |
$ |
9,881 |
-
In August 2021, the Company agreed to acquire a minority interest
in a portfolio of nine product tankers, among which are five
dual-fuel MR Methanol tankers (built between 2016 and 2021). These
five vessels carry Methanol as well as traditional petroleum
products, and they are powered either by Methanol or by traditional
marine fuels.
-
In June 2021, the Company completed the exchange of $19.4 million
in aggregate principal amount of the Company's Convertible Notes
due 2022 for $19.4 million in aggregate principal amount of
Convertible Notes due 2025 (the 'Exchange Notes') pursuant to
separate, privately negotiated, agreements with certain holders of
the Convertible Notes due 2022. Simultaneously, the Company issued
and sold $42.4 million in aggregate principal amount of Convertible
Notes due 2025 in a private offering (the ‘Purchased Notes’ and
together with the Exchange Notes, the 'New Notes'). The New Notes
issued in this transaction have the same terms (other than date of
issuance) as and are fungible with the Convertible Notes due 2025
that were issued in March 2021.
-
In January 2021, the Company entered into a note distribution
agreement with B. Riley Securities, Inc., as sales agent, pursuant
to which the Company may offer and sell, from time to time, up to
$75.0 million of additional aggregate principal amount of its 7.00%
Senior Unsecured Notes due 2025 (the "Senior Notes due 2025").
Since April 1, 2021 and through the date of this press release, the
Company issued $23.0 million aggregate principal amount of
additional Senior Notes due 2025 for aggregate net proceeds (net of
sales agent commissions and offering expenses) of $22.5 million.
There is $37.9 million of remaining availability under the this
program as of August 4, 2021.
-
The Company is in advanced discussions with certain financial
institutions to further increase its liquidity by up to $59.1
million in connection with the refinancing of 13 vessels.
-
The Company also has $20.0 million of additional liquidity
available (after the repayment of existing debt) from previously
announced financings that have been committed. These drawdowns are
expected to occur at varying points in the future as these
financings are tied to scrubber installations on the Company’s
vessels.
-
The Company has $268.6 million in cash and cash equivalents as of
August 4, 2021.
Investment in Dual Fuel
Tankers
In August 2021, the Company agreed to acquire a
minority interest in a portfolio of nine product tankers,
consisting of five dual-fuel MR Methanol tankers (built between
2016 and 2021) which, in addition to traditional petroleum
products, are designed to both carry methanol as a cargo and to
consume it as a fuel, along with four ice class 1A LR1 product
tankers. The dual-fuel MR Methanol tankers are currently on
long-term time charter contracts greater than five years. The
Company acquired 6% of the outstanding shares in this venture for
$7.2 million.
June 2021 Exchange Offer and New
Issuance of Convertible Notes
In June 2021, the Company completed the exchange
of $19.4 million in aggregate principal amount of the Company's
Convertible Notes due 2022 for $19.4 million in aggregate principal
amount of Convertible Notes due 2025 (the 'Exchange Notes')
pursuant to separate, privately negotiated, agreements with certain
holders of the Convertible Notes due 2022. Simultaneously, the
Company issued and sold $42.4 million in aggregate principal amount
of Convertible Notes due 2025 pursuant to separate, privately
negotiated, agreements with certain investors in a private offering
(the ‘Purchased Notes’ and together with the Exchange Notes, the
'New Notes'). The Purchased Notes were issued at 102.25% of par, or
$43.3 million, plus accrued interest.
The New Notes have the same terms as (other than
date of issuance), form a single series of debt securities with,
have the same CUSIP number, and are fungible with the 3.00%
Convertible Senior Notes due 2025 that were issued in March 2021,
including for purposes of notices, consents, waivers, amendments
and any other action permitted under the Indenture. The New Notes
will accrete at the same 5.52% rate from the original March 2021
issue price and issue date as the March 2021 New Notes. The
Accreted Principal Amount at maturity is equal to 125.3% of
par.
The Convertible Notes due 2025 are senior,
unsecured obligations and bear interest at a rate of 3.00% per
year. Interest is payable semi-annually in arrears on May 15 and
November 15 of each year. The Convertible Notes due 2025 will
mature on May 15, 2025, unless earlier converted, redeemed or
repurchased in accordance with their terms.
The Convertible Notes due 2025 are freely
convertible at the option of the holder and prior to the close of
business on the 5th business day immediately preceding the maturity
date. Upon conversion of the Convertible Notes due 2025, holders
will receive shares of the Company's common stock. The Company may,
subject to certain exceptions, redeem the Convertible Notes due
2025 for cash, if at any time the per share volume-weighted average
price of the Company's common shares equals or exceeds 125.4% of
the conversion price then in effect on (i) each of at least 20
trading days (whether or not consecutive) during the 30 consecutive
trading days ending on, and including, the trading day immediately
before the applicable redemption date; and (ii) the trading day
immediately before such date of the redemption notice.
The conversion rate of the Convertible Notes due
2025 is currently 26.7879 common shares per $1,000 principal amount
of Convertible Notes due 2025 (equivalent to a conversion price of
approximately $37.33 per common share), and is subject to
adjustment upon the occurrence of certain events as set forth in
the indenture governing the Convertible Notes due 2025 (such as the
payment of dividends).
The Company recorded a loss on the
extinguishment of the Convertible Notes due 2022 of $1.6 million as
a result of the June 2021 Exchange, which primarily arose from the
difference between the carrying value and the face value of the
Convertible Notes due 2022 on the date of the exchange in addition
to directly attributable transaction costs.
Diluted Weighted Number of
Shares
The computation of earnings or loss per share is
determined by taking into consideration the potentially dilutive
shares arising from (i) the Company’s equity incentive plan, and
(ii) the Company’s Convertible Notes due 2022 and Convertible Notes
due 2025. These potentially dilutive shares are excluded from the
computation of earnings or loss per share to the extent they are
anti-dilutive.
The impact of the Convertible Notes due 2022 and
Convertible Notes due 2025 on earnings or loss per share is
computed using the if-converted method. Under this method, the
Company first includes the potentially dilutive impact of
restricted shares issued under the Company’s equity incentive plan,
and then assumes that its Convertible Notes due 2022 and
Convertible Notes due 2025, which were issued in March and June
2021 were converted into common shares at the beginning of each
period. The if-converted method also assumes that the interest and
non-cash amortization expense associated with these notes of $5.3
million and $8.4 million during the three and six months ended June
30, 2021, respectively, were not incurred. Conversion is not
assumed if the results of this calculation are anti-dilutive.
For the three and six months ended June 30,
2021, the Company’s basic weighted average number of shares
outstanding were 54,457,451 and 54,388,504, respectively. There
were 56,696,234 and 56,524,964 weighted average shares outstanding
including the potentially dilutive impact of restricted shares
issued under the Company's equity incentive plan, for the three and
six months ended June 30, 2021, respectively. There were 62,857,121
and 61,685,350 weighted average shares outstanding for the three
and six months ended June 30, 2021, respectively, under the
if-converted method. Since the Company was in a net loss position
in both periods, the potentially dilutive shares arising from both
the Company’s restricted shares issued under the Company's equity
incentive plan and under the if-converted method were anti-dilutive
for purposes of calculating the loss per share. Accordingly, basic
weighted average shares outstanding were used to calculate both
basic and diluted loss per share for this period.
COVID-19
Initially, the onset of the COVID-19 pandemic in
March 2020 resulted in a sharp reduction in economic activity and a
corresponding reduction in the global demand for oil and refined
petroleum products. This period of time was marked by extreme
volatility in the oil markets and the development of a steep
contango in the prices of oil and refined petroleum products.
Consequently, an abundance of arbitrage and floating storage
opportunities opened up, which resulted in record increases in spot
TCE rates late in the first quarter of 2020 and throughout the
second quarter of 2020. These market dynamics, which were driven by
arbitrage trading rather than underlying consumption, led to a
build-up of global oil and refined petroleum product
inventories.
In June 2020, as underlying oil markets
stabilized and global economies began to recover, the excess
inventories that built up during this period began to slowly
unwind. Nevertheless, global demand for oil and refined petroleum
products remained subdued as governments around the world continued
to impose travel restrictions and other measures in an effort to
curtail the spread of the virus. These market conditions had an
adverse impact on the demand for the Company's vessels beginning in
the third quarter of 2020 and continuing through the second quarter
of 2021. During the second quarter of 2021, the easing of
restrictive measures and successful roll-out of vaccines in certain
countries served as a catalyst for an economic recovery in many
developed countries throughout the world. Consequently, oil prices
have recently reached multi-year highs and existing inventories of
refined petroleum products continue to be depleted. While these
conditions are favorable for long-term demand growth, they were
insufficient to stimulate spot TCE rates during the second quarter
of 2021 given the uneven nature of the global economic recovery and
the restrictions that remain in place in parts of the world with
low vaccine uptake.
The Company expects that the COVID-19 virus will
continue to cause volatility in the commodities markets. The scale
and duration of these circumstances is unknowable but could
continue to have a material impact on the Company's earnings, cash
flow and financial condition in 2021. An estimate of the impact on
the Company's results of operations and financial condition cannot
be made at this time.
$250 Million Securities Repurchase
Program
In September 2020, the Company's Board of
Directors authorized a new Securities Repurchase Program to
purchase up to an aggregate of $250 million of the Company's
securities which, in addition to its common shares, currently
consist of its Senior Notes due 2025 (NYSE: SBBA), Convertible
Notes due 2022, and Convertible Notes due 2025. No securities have
been repurchased under the new program since its inception through
the date of this press release.
Conference Call
The Company has scheduled a conference call on
August 5, 2021 at 9:00 AM Eastern Daylight Time and 3:00 PM
Central European Summer Time. The dial-in information is as
follows:
US Dial-In Number: +1 (855) 861-2416International Dial-In
Number: +1 (703) 736-7422Conference ID: 6987095
Participants should dial into the call 10
minutes before the scheduled time. The information provided on the
teleconference is only accurate at the time of the conference call,
and the Company will take no responsibility for providing updated
information.
There will also be a simultaneous live webcast
over the internet, through the Scorpio Tankers Inc. website
www.scorpiotankers.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Webcast URL:
https://edge.media-server.com/mmc/p/q8sswtjm
Current Liquidity
As of August 4, 2021, the Company
had $268.6 million in unrestricted cash and cash
equivalents.
Drydock, Scrubber and Ballast Water
Treatment Update
Set forth below is a table summarizing the
drydock, scrubber, and ballast water treatment system activity that
occurred during the second quarter of 2021 and that is in progress
as of July 1, 2021:
|
|
Number of Vessels |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Aggregate Costs ($ in millions)
(1) |
Aggregate Off-hire Days in Q2 2021 |
|
Completed in the second quarter of 2021 |
|
|
|
|
|
|
| LR2 |
3 |
3 |
— |
— |
$3.6 |
92.4 |
| LR1 |
3 |
3 |
— |
— |
3.3 |
63.4 |
| MR |
— |
— |
— |
— |
— |
— |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
6 |
6 |
— |
— |
$6.9 |
155.8 |
| |
|
|
|
|
|
|
| In progress as of July 1,
2021 |
|
|
|
|
|
|
| LR2 |
3 |
3 |
— |
— |
$3.6 |
24.5 |
| LR1 |
— |
— |
— |
— |
— |
— |
| MR |
— |
— |
— |
— |
— |
— |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
3 |
3 |
— |
— |
$3.6 |
24.5 |
(1) Aggregate costs for vessels completed
in the quarter represent the total costs incurred, some of which
may have been incurred in prior periods. Aggregate costs for
vessels in progress as of July 1, 2021 represent the total costs
incurred through that date, some of which may have been incurred in
prior periods.
Set forth below are the estimated expected
payments to be made for the Company's drydocks, ballast water
treatment system installations, and scrubber installations through
2022 (which also include actual payments made during the second
quarter of 2021 and through August 4, 2021):
| In millions of U.S.
dollars |
As of June 30, 2021 (1) (2) |
| |
|
|
Q3 2021 - payments made through August 4, 2021 |
$ |
2.0 |
|
| Q3 2021 - remaining
payments |
16.0 |
|
| Q4 2021 |
4.6 |
|
| FY 2022 |
42.3 |
|
(1) Includes estimated cash payments for
drydocks, ballast water treatment system installations and scrubber
installations. These amounts include installment payments
that are due in advance of the scheduled service and may be
scheduled to occur in quarters prior to the actual installation. In
addition to these installment payments, these amounts also include
estimates of the installation costs of such systems. The
timing of the payments set forth are estimates only and may vary as
the timing of the related drydocks and installations
finalize.
(2) Based upon the commitments received to
date, which include the remaining availability under certain
financing transactions that have been previously announced, the
Company expects to raise approximately $20.0 million of aggregate
additional liquidity to finance the purchase and installations of
scrubbers (after the repayment of existing debt) once all of the
agreements are closed and drawn. These drawdowns are expected
to occur at varying points in the future as these financings are
tied to scrubber installations on the Company’s vessels.
Set forth below are the estimated expected
number of ships and estimated expected off-hire days for the
Company's drydocks, ballast water treatment system installations,
and scrubber installations (1):
|
|
Q3 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
3 |
|
— |
|
— |
|
109 |
|
|
LR1 |
3 |
|
— |
|
— |
|
70 |
|
|
MR |
— |
|
— |
|
— |
|
— |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total Q3
2021 |
6 |
|
— |
|
— |
|
179 |
|
| |
|
|
|
|
|
|
Q4 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
1 |
|
— |
|
— |
|
20 |
|
|
LR1 |
1 |
|
— |
|
2 |
|
50 |
|
|
MR |
— |
|
— |
|
— |
|
— |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total Q4
2021 |
2 |
|
— |
|
2 |
|
70 |
|
| |
|
|
|
|
|
|
FY 2022 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
5 |
|
— |
|
1 |
|
140 |
|
|
LR1 |
— |
|
— |
|
3 |
|
170 |
|
|
MR |
11 |
|
5 |
|
4 |
|
300 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total FY
2022 |
16 |
|
5 |
|
8 |
|
610 |
|
| |
|
|
|
|
(1) The number of vessels in these tables
may reflect a certain amount of overlap where certain vessels are
expected to be drydocked and have ballast water treatment systems
and/or scrubbers installed simultaneously. Additionally, the
timing set forth may vary as drydock, ballast water treatment
system installation and scrubber installation times are
finalized.(2) Represents the number of vessels scheduled to
commence drydock, ballast water treatment system, and/or scrubber
installations during the period. It does not include vessels that
commenced work in prior periods but will be completed in the
subsequent period. (3) Represents total estimated off-hire
days during the period, including vessels that commenced work in a
previous period.
Debt
Set forth below is a summary of the principal
balances of the Company’s outstanding indebtedness as of the dates
presented.
| |
In thousands of U.S.
Dollars |
Outstanding Principal as of March 31, 2021 |
Outstanding Principal as of June 30, 2021 |
Outstanding Principal as of August 4, 2021 |
| 1 |
ING Credit Facility (2) |
70,347 |
|
32,386 |
|
32,386 |
|
| 2 |
Credit Agricole Credit
Facility |
80,018 |
|
77,877 |
|
77,877 |
|
| 3 |
ABN AMRO / K-Sure Credit
Facility |
40,864 |
|
39,901 |
|
39,901 |
|
| 4 |
Citibank / K-Sure Credit
Facility |
84,714 |
|
82,610 |
|
82,610 |
|
| 5 |
ABN / SEB Credit Facility
(1) |
94,769 |
|
76,164 |
|
76,164 |
|
| 6 |
Hamburg Commercial Credit
Facility |
39,492 |
|
38,670 |
|
38,670 |
|
| 7 |
Prudential Credit
Facility |
48,992 |
|
47,605 |
|
46,681 |
|
| 8 |
2019 DNB / GIEK Credit
Facility |
50,785 |
|
49,007 |
|
49,007 |
|
| 9 |
BNPP Sinosure Credit
Facility |
96,648 |
|
91,481 |
|
91,481 |
|
| 10 |
2020 $225.0 Million Credit
Facility |
203,640 |
|
198,389 |
|
198,389 |
|
| 11 |
2021 $21.0 Million Credit
Facility |
21,000 |
|
20,415 |
|
20,415 |
|
| 12 |
Ocean Yield Lease
Financing |
135,775 |
|
132,993 |
|
132,033 |
|
| 13 |
BCFL Lease Financing
(LR2s) |
87,474 |
|
84,783 |
|
83,883 |
|
| 14 |
CSSC Lease Financing |
131,576 |
|
128,844 |
|
127,933 |
|
| 15 |
CSSC Scrubber Lease
Financing |
3,463 |
|
2,483 |
|
2,156 |
|
| 16 |
BCFL Lease Financing
(MRs) |
80,142 |
|
76,427 |
|
75,211 |
|
| 17 |
2018 CMBFL Lease
Financing |
121,741 |
|
118,489 |
|
118,489 |
|
| 18 |
$116.0 Million Lease
Financing |
103,400 |
|
100,887 |
|
100,071 |
|
| 19 |
AVIC Lease Financing |
116,400 |
|
113,069 |
|
113,069 |
|
| 20 |
China Huarong Lease
Financing |
116,041 |
|
111,833 |
|
111,833 |
|
| 21 |
$157.5 Million Lease
Financing |
120,264 |
|
116,729 |
|
116,729 |
|
| 22 |
COSCO Lease Financing |
66,825 |
|
64,900 |
|
64,900 |
|
| 23 |
2020 CMBFL Lease
Financing |
43,763 |
|
42,952 |
|
42,952 |
|
| 24 |
2020 TSFL Lease Financing |
46,419 |
|
45,589 |
|
45,589 |
|
| 25 |
2020 SPDBFL Lease
Financing |
94,876 |
|
93,259 |
|
93,259 |
|
| 26 |
2021 AVIC Lease Financing |
97,325 |
|
95,517 |
|
95,517 |
|
| 27 |
2021 CMBFL Lease Financing
(1) |
58,800 |
|
77,825 |
|
77,420 |
|
| 28 |
2021 TSFL Lease Financing |
57,663 |
|
56,567 |
|
56,567 |
|
| 29 |
2021 CSSC Lease Financing
(2) |
— |
|
56,523 |
|
56,085 |
|
| 30 |
IFRS 16 - Leases - 3 MR |
35,093 |
|
33,171 |
|
32,542 |
|
| 31 |
$670.0 Million Lease
Financing |
582,157 |
|
570,261 |
|
566,268 |
|
| 32 |
Unsecured Senior Notes Due
2025 (3) |
42,233 |
|
58,757 |
|
65,248 |
|
| 33 |
Convertible Notes Due 2022
(4) |
89,141 |
|
69,695 |
|
69,695 |
|
| 34 |
Convertible Notes Due 2025
(4) |
138,188 |
|
202,930 |
|
204,014 |
|
|
|
Gross debt outstanding |
$ |
3,200,028 |
|
$ |
3,208,988 |
|
$ |
3,205,044 |
|
| |
Cash and cash
equivalents |
269,538 |
|
282,229 |
|
|
268,650 |
|
| |
Net debt |
$ |
2,930,490 |
|
$ |
2,926,759 |
|
$ |
2,936,394 |
|
(1) In April 2021, the Company closed on
the sale and leaseback of STI Westminster for aggregate proceeds of
$20.25 million. The Company repaid the outstanding indebtedness of
$16.1 million related to this vessel on the ABN/SEB Credit Facility
as part of this transaction.
Under the 2021 CMBFL Lease Financing, this
vessel is subject to a seven-year bareboat charter-in agreement.
The lease financing for this MR vessel bears interest at LIBOR plus
a margin of 3.20% and is scheduled to be repaid in equal quarterly
principal installments of approximately $0.4 million. The agreement
contains purchase options to re-acquire the vessel beginning on the
third anniversary date from the delivery date, with a purchase
option for each vessel upon the expiration of each agreement. The
remaining terms and conditions, including financial covenants, are
similar to those set forth in the Company's other sale and
leaseback arrangements.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(2) In May 2021, the Company closed on the
sale and leaseback of two LR2 vessels (STI Grace and STI Jermyn)
with CSSC (Hong Kong) Shipping Company Limited (the '2021 CSSC
Lease Financing') for aggregate proceeds of $57.4 million and
repaid the aggregate outstanding indebtedness of $36.9 million
related to these two vessels on the ING Credit Facility as part of
this transaction.
Under the 2021 CSSC Lease Financing, each vessel
is subject to a six-year bareboat charter-in agreement. The lease
financings bear interest at LIBOR plus a margin of 3.50% per annum
and are scheduled to be repaid in equal principal installments of
$0.2 million per vessel per month. Each agreement contains purchase
options to re-acquire each of the subject vessels beginning on the
second anniversary date from the delivery date of the respective
vessel, with a purchase obligation for each vessel upon the
expiration of each agreement.
These transactions are being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(3) In January 2021, the Company entered
into the Distribution Agreement with the Agent, under which the
Company may offer and sell, from time to time, up to an additional
$75.0 million aggregate principal amount of its Senior Notes due
2025 (the 'Additional Notes'). The Additional Notes will have the
same terms as (other than date of issuance), form a single series
of debt securities with and have the same CUSIP number and are
fungible with, the initial notes which were issued on May 29, 2020
immediately upon issuance. Sales of the Additional Notes may be
made over a period of time, and from time to time, through the
Agent, in transactions involving an offering of the Senior Notes
due 2025 into the existing trading market at prevailing market
prices. During the second quarter of 2021, the Company issued $16.5
million aggregate principal amount of Additional Notes for
aggregate net proceeds (net of sales agent commissions and offering
expenses) of $16.2 million. Since inception of this program and
through the date of this press release, the Company issued $37.1
million aggregate principal amount of Additional Notes for
aggregate net proceeds (net of sales agent commissions and offering
expenses) of $36.3 million.
(4) In June 2021, the Company completed the
exchange of $19.4 million in aggregate principal amount of the
Company's Convertible Notes due 2022 for $19.4 million in aggregate
principal amount of Convertible Notes due 2025 (the 'Exchange
Notes') pursuant to separate, privately negotiated, agreements with
certain holders of the Convertible Notes due 2022. Simultaneously,
the Company issued and sold $42.4 million in aggregate principal
amount of Convertible Notes due 2025 pursuant to separate,
privately negotiated, agreements with certain investors in a
private offering (the ‘Purchased Notes’ and together with the
Exchange Notes, the 'New Notes'). The Purchased Notes were issued
at 102.25% of par, or $43.3 million, plus accrued interest.
The New Notes have the same terms as (other than
date of issuance), form a single series of debt securities with,
have the same CUSIP number and are fungible with, the 3.00%
Convertible Senior Notes due 2025 that were issued in March 2021,
including for purposes of notices, consents, waivers, amendments
and any other action permitted under the Indenture. The New Notes
will accrete at the same rate of approximately 5.52% from the
original March 2021 issue date and at the same issue price as the
March 2021 New Notes. The Accreted Principal Amount at maturity is
equal to 125.3% of par.
The Convertible Notes due 2025 are senior,
unsecured obligations and bear interest at a rate of 3.00% per
year. Interest is payable semi-annually in arrears on May 15 and
November 15 of each year. The Convertible Notes due 2025 will
mature on May 15, 2025, unless earlier converted, redeemed or
repurchased in accordance with their terms.
The conversion rate of the Convertible Notes due
2025 is currently 26.7879 common shares per $1,000 principal amount
of Convertible Notes due 2025 (equivalent to a conversion price of
approximately $37.33 per common share), and is subject to
adjustment upon the occurrence of certain events as set forth in
the indenture governing the Convertible Notes due 2025 (such as the
payment of dividends).
The Company recorded a loss on the
extinguishment of the Convertible Notes due 2022 of $1.6 million as
a result of the June 2021 Exchange, which primarily arose from the
difference between the carrying value and the face value of the
Convertible Notes due 2022 on the date of the exchange in addition
to directly attributable transaction costs.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of June 30, 2021, which includes principal amounts
due under the Company's secured credit facilities, Convertible
Notes due 2022, Convertible Notes due 2025, lease financing
arrangements, Senior Notes due 2025, and lease liabilities under
IFRS 16 (which also include actual payments made during the second
quarter of 2021 and through August 4, 2021):
| In millions of U.S.
dollars |
|
As of June 30, 2021 (1) |
|
Q3 2021 - principal payments made through August 4, 2021 |
|
$ |
11.5 |
|
| Q3 2021 - remaining principal
payments |
|
61.9 |
|
| Q4 2021 |
|
78.5 |
|
| Q1 2022 (2) |
|
91.2 |
|
| Q2 2022 (3) |
|
215.5 |
|
| Q3 2022 (4) |
|
88.4 |
|
| Q4 2022 (5) |
|
124.8 |
|
| 2023 and thereafter |
|
2,537.2 |
|
| |
|
$ |
3,209.0 |
|
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of June
30, 2021 and do not incorporate the impact of any of the Company’s
new financing initiatives which have not closed as of that
date.
(2) Repayments include the maturity of the outstanding debt
related to one vessel under the Citi/K-Sure Credit Facility of
$19.3 million.
(3) Repayments include the maturity of the
outstanding debt related to (i) three vessels under the Citi/K-Sure
Credit Facility of $57.6 million in aggregate, (ii) the Company's
Convertible Notes due 2022 of $69.7 million, and (iii) one vessel
under the ING Credit Facility of $12.6 million.
(4) Repayments include the maturity of the
outstanding debt related to one vessel under the ABN AMRO/K-Sure
Credit Facility of $18.4 million.
(5) Repayments include the maturity of the
outstanding debt related to (i) one vessel under the ABN
AMRO/K-Sure Credit Facility of $17.2 million, (ii) one vessel under
the Credit Agricole Credit Facility of $16.5 million, and (iii) one
vessel under the 2021 $21.0 Million Credit Facility for $17.5
million.
Explanation of Variances on the Second
Quarter of 2021 Financial Results Compared to the Second Quarter of
2020
For the three months ended June 30, 2021, the
Company recorded a net loss of $52.8 million compared to net income
of $143.9 million for the three months ended June 30, 2020. The
following were the significant changes between the two periods:
- TCE revenue, a
Non-IFRS measure, is vessel revenues less voyage expenses
(including bunkers and port charges). TCE revenue is included
herein because it is a standard shipping industry performance
measure used primarily to compare period-to-period changes in a
shipping company's performance irrespective of changes in the mix
of charter types (i.e., spot voyages, time charters, and pool
charters), and it provides useful information to investors and
management. The following table sets forth TCE revenue for the
three months ended June 30, 2021 and 2020:
| |
|
|
For the three months ended June 30, |
| In thousands of
U.S. dollars |
|
2021 |
|
2020 |
|
|
Vessel revenue |
|
$ |
139,442 |
|
|
$ |
346,239 |
|
| |
Voyage expenses |
|
(1,614 |
) |
|
(2,906 |
) |
| |
TCE
revenue |
|
$ |
137,828 |
|
|
$ |
343,333 |
|
-
TCE revenue for the three months ended June 30, 2021 decreased by
$205.5 million to $137.8 million, from $343.3 million for the three
months ended June 30, 2020. Overall average TCE revenue per day
decreased to $11,954 per day during the three months ended June 30,
2021, from $29,693 per day during the three months ended June 30,
2020. Given the onset of the COVID-19 pandemic, market fundamentals
and underlying TCE revenue during these periods differed
significantly.
-
TCE revenue for the three months ended June 30, 2021 reflected the
adverse market conditions brought on by the COVID-19 pandemic.
Demand for crude and refined petroleum products have improved
during this period but nevertheless remained below pre-pandemic
levels given the ongoing efforts around the world to control the
spread of the virus, particularly in countries with low vaccine
uptake. Additionally inventories continued to be drawn during the
quarter, which had an adverse impact on the demand for the seaborne
transportation of refined petroleum products.
-
TCE revenue for the three months ended June 30, 2020 reflected
strong market conditions that were the result of the initial market
conditions brought on by the onset of the COVID-19 pandemic in
March 2020. During this time, travel restrictions and other
preventive measures to control the spread of the COVID-19 pandemic
resulted in a precipitous decline in oil demand. Lack of
corresponding production and refinery cuts resulted in a supply
glut of oil and refined petroleum products, which was exacerbated
by extreme oil price volatility from the Russia-Saudi Arabia oil
price war. The oversupply of petroleum products and contango in oil
prices led to record floating storage and arbitrage opportunities
of both crude and refined petroleum products. These market
conditions had a disruptive impact on the supply and demand balance
of product tankers, resulting in significant and prolonged spikes
in spot TCE rates which persisted through the second quarter of
2020.
-
Vessel operating costs for the three months ended June 30, 2021
increased by $0.8 million to $80.6 million, from $79.8 million for
the three months ended June 30, 2020. Vessel operating costs per
day increased to $6,807 per day for the three months ended June 30,
2021 from $6,407 per day for the three months ended June 30, 2020.
This increase was primarily attributable to (i) costs incurred to
transition technical managers for certain MRs that were acquired
from Trafigura Maritime Logistics Pte. Ltd. in 2019 and (ii)
increased crewing related costs due to COVID-19.
-
Depreciation expense - owned or sale leaseback vessels for the
three months ended June 30, 2021 increased by $1.1 million to $49.2
million, from $48.1 million for the three months ended June 30,
2020. The increase was due to the Company's drydock, scrubber and
ballast water treatment system installations that have taken place
over the preceding 12-month period.
-
Depreciation expense - right of use assets for the three months
ended June 30, 2021 decreased $3.4 million to $10.2 million from
$13.6 million for the three months ended June 30, 2020.
Depreciation expense - right of use assets reflects the
straight-line depreciation expense recorded under IFRS 16 - Leases.
Right of use asset depreciation expense was impacted by the
delivery of an MR that was previously under construction in the
third quarter of 2020 offset by the redelivery of three Handymax
vessels upon the expiration of their bareboat charters in the
second and third quarters of 2020 and four Handymax vessels at the
end of the first quarter of 2021. The Company had four LR2s and 18
MRs that were accounted for under IFRS 16 - Leases during the three
months ended June 30, 2021. The right of use asset depreciation for
these vessels is approximately $0.2 million per MR per month and
$0.3 million per LR2 per month.
-
General and administrative expenses for the three months ended June
30, 2021, decreased by $5.4 million to $13.3 million, from $18.7
million for the three months ended June 30, 2020. This decrease was
due to an overall reduction in costs during the three months ended
June 30, 2021, including reductions in restricted stock
amortization and compensation expenses.
- Financial expenses for the three
months ended June 30, 2021 decreased by $3.2 million to $35.9
million, from $39.1 million for the three months ended June 30,
2020. The decrease was primarily driven by significant decreases in
LIBOR rates, which underpin all of the Company's variable rate
borrowings, which collapsed at the onset of the COVID-19 pandemic,
but after the rates were set in the second quarter of 2020 for many
of the Company's financings.
Scorpio Tankers Inc. and
Subsidiaries Condensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
| In thousands of
U.S. dollars except per share and share data |
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
139,442 |
|
|
$ |
346,239 |
|
|
$ |
273,607 |
|
|
$ |
600,407 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
| |
Vessel operating costs |
(80,598 |
) |
|
(79,758 |
) |
|
(163,900 |
) |
|
(161,221 |
) |
| |
Voyage expenses |
(1,396 |
) |
|
(2,906 |
) |
|
(2,781 |
) |
|
(7,125 |
) |
| |
Depreciation - owned or sale
leaseback vessels |
(49,222 |
) |
|
(48,102 |
) |
|
(98,006 |
) |
|
(94,943 |
) |
| |
Depreciation - right of use
assets |
(10,200 |
) |
|
(13,609 |
) |
|
(22,041 |
) |
|
(26,806 |
) |
| |
General and administrative
expenses |
(13,324 |
) |
|
(18,747 |
) |
|
(26,884 |
) |
|
(36,010 |
) |
| |
Total operating expenses |
(154,740 |
) |
|
(163,122 |
) |
|
(313,612 |
) |
|
(326,105 |
) |
| Operating
income |
(15,298 |
) |
|
183,117 |
|
|
(40,005 |
) |
|
274,302 |
|
| Other
(expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(35,906 |
) |
|
(39,127 |
) |
|
(69,973 |
) |
|
(83,892 |
) |
| |
Loss on Convertible Notes
exchange |
(1,648 |
) |
|
— |
|
|
(5,504 |
) |
|
— |
|
| |
Financial income |
187 |
|
|
295 |
|
|
412 |
|
|
860 |
|
| |
Other income and (expense),
net |
(117 |
) |
|
(344 |
) |
|
(106 |
) |
|
(702 |
) |
| |
Total other expense, net |
(37,484 |
) |
|
(39,176 |
) |
|
(75,171 |
) |
|
(83,734 |
) |
| Net (loss)
/ income |
$ |
(52,782 |
) |
|
$ |
143,941 |
|
|
$ |
(115,176 |
) |
|
$ |
190,568 |
|
| |
|
|
|
|
|
|
|
|
| (Loss) /
Earnings per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.97 |
) |
|
$ |
2.63 |
|
|
$ |
(2.12 |
) |
|
$ |
3.48 |
|
| |
Diluted |
$ |
(0.97 |
) |
|
$ |
2.40 |
|
|
$ |
(2.12 |
) |
|
$ |
3.21 |
|
| |
Basic weighted average shares
outstanding |
54,457,451 |
|
|
54,827,479 |
|
|
54,388,504 |
|
|
54,747,345 |
|
| |
Diluted weighted average
shares outstanding (1) |
54,457,451 |
|
|
61,593,958 |
|
|
54,388,504 |
|
|
61,801,095 |
|
(1) The computation of diluted loss per
share for the three and six months ended June 30, 2021 excludes the
effect of potentially dilutive unvested shares of restricted stock
and the Convertible Notes due 2022 and Convertible Notes due 2025
because their effect would have been anti-dilutive. The computation
of diluted earnings per share for the three and six months ended
June 30, 2020 includes the effect of potentially dilutive unvested
shares of restricted stock and the effect of the Convertible Notes
due 2022 under the if-converted method.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In thousands of U.S.
dollars |
June 30, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
282,229 |
|
|
$ |
187,511 |
|
| Accounts receivable |
31,730 |
|
|
33,017 |
|
| Prepaid expenses and other
current assets |
10,450 |
|
|
12,430 |
|
| Inventories |
8,396 |
|
|
9,261 |
|
| Total current
assets |
332,805 |
|
|
242,219 |
|
| Non-current
assets |
|
|
|
| Vessels and drydock |
3,925,151 |
|
|
4,002,888 |
|
| Right of use assets |
784,770 |
|
|
807,179 |
|
| Other assets |
97,445 |
|
|
92,145 |
|
| Goodwill |
8,900 |
|
|
8,900 |
|
| Restricted cash |
5,293 |
|
|
5,293 |
|
| Total non-current
assets |
4,821,559 |
|
|
4,916,405 |
|
| Total
assets |
$ |
5,154,364 |
|
|
$ |
5,158,624 |
|
| Current
liabilities |
|
|
|
| Current portion of long-term
debt |
$ |
220,877 |
|
|
$ |
172,705 |
|
| Lease liability - sale and
leaseback vessels |
158,082 |
|
|
131,736 |
|
| Lease liability - IFRS 16 |
54,386 |
|
|
56,678 |
|
| Accounts payable |
12,302 |
|
|
12,863 |
|
| Accrued expenses |
23,699 |
|
|
32,193 |
|
| Total current
liabilities |
469,346 |
|
|
406,175 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
836,783 |
|
|
971,172 |
|
| Lease liability - sale and
leaseback vessels |
1,342,415 |
|
|
1,139,713 |
|
| Lease liability - IFRS 16 |
548,407 |
|
|
575,796 |
|
| Total non-current
liabilities |
2,727,605 |
|
|
2,686,681 |
|
| Total
liabilities |
3,196,951 |
|
|
3,092,856 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and fully
paid-in share capital: |
|
|
|
| Share capital |
659 |
|
|
656 |
|
| Additional paid-in
capital |
2,857,024 |
|
|
2,850,206 |
|
| Treasury shares |
(480,172 |
) |
|
(480,172 |
) |
| Accumulated deficit |
(420,098 |
) |
|
(304,922 |
) |
| Total shareholders'
equity |
1,957,413 |
|
|
2,065,768 |
|
| Total liabilities and
shareholders' equity |
$ |
5,154,364 |
|
|
$ |
5,158,624 |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)
| |
For the six months ended June 30, 2021 |
| In thousands of U.S.
dollars |
2021 |
|
2020 |
| Operating
activities |
|
|
|
|
Net (loss) / income |
$ |
(115,176 |
) |
|
$ |
190,568 |
|
| Depreciation - owned or
finance leased vessels |
98,006 |
|
|
94,943 |
|
| Depreciation - right of use
assets |
22,041 |
|
|
26,806 |
|
| Amortization of restricted
stock |
12,483 |
|
|
15,355 |
|
| Amortization of deferred
financing fees |
3,689 |
|
|
3,086 |
|
| Write-off of deferred
financing fees and unamortized discounts on sale and leaseback
facilities |
1,326 |
|
|
313 |
|
| Accretion of convertible
notes |
5,384 |
|
|
4,565 |
|
| Accretion of fair value
measurement on debt assumed in business combinations |
1,686 |
|
|
1,742 |
|
| Non-cash portion of loss on
Convertible Notes exchange |
5,504 |
|
|
— |
|
| |
34,943 |
|
|
337,378 |
|
| Changes in assets and
liabilities: |
|
|
|
| Decrease / (increase) in
inventories |
866 |
|
|
(1,160 |
) |
| Decrease / (increase) in
accounts receivable |
1,287 |
|
|
(36,748 |
) |
| (Increase) / decrease in
prepaid expenses and other current assets |
(1,933 |
) |
|
1,998 |
|
| (Increase) / decrease in other
assets |
(297 |
) |
|
666 |
|
| Decrease in accounts
payable |
(297 |
) |
|
(5,423 |
) |
| Decrease in accrued
expenses |
(8,647 |
) |
|
(4,616 |
) |
| |
(9,021 |
) |
|
(45,283 |
) |
| Net cash (outflow) /
inflow from operating activities |
25,922 |
|
|
292,095 |
|
| Investing
activities |
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
finance leased and bareboat-in vessels) |
(27,308 |
) |
|
(119,805 |
) |
| Net cash outflow from
investing activities |
(27,308 |
) |
|
(119,805 |
) |
| Financing
activities |
|
|
|
| Debt repayments |
(341,449 |
) |
|
(381,657 |
) |
| Issuance of debt |
367,578 |
|
|
318,194 |
|
| Debt issuance costs |
(9,124 |
) |
|
(9,706 |
) |
| Principal repayments on lease
liability - IFRS 16 |
(28,674 |
) |
|
(41,668 |
) |
| Issuance of convertible
notes |
119,419 |
|
|
— |
|
| Gross proceeds from issuance
of common stock |
— |
|
|
2,601 |
|
| Equity issuance costs |
— |
|
|
(26 |
) |
| Dividends paid |
(11,646 |
) |
|
(11,739 |
) |
| Net cash inflow /
(outflow) from financing activities |
96,104 |
|
|
(124,001 |
) |
| Increase / (decrease)
in cash and cash equivalents |
94,718 |
|
|
48,289 |
|
| Cash and cash equivalents at
January 1, |
187,511 |
|
|
202,303 |
|
| Cash and cash
equivalents at June 30, |
$ |
282,229 |
|
|
$ |
250,592 |
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three
months and six months ended June 30, 2021 and 2020
(unaudited)
| |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
| |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Adjusted EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
|
$ |
50,298 |
|
|
$ |
251,993 |
|
|
$ |
92,419 |
|
|
$ |
410,704 |
|
| |
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
| TCE per day(2) |
|
$ |
11,954 |
|
|
$ |
29,693 |
|
|
$ |
11,552 |
|
|
$ |
26,250 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,807 |
|
|
$ |
6,407 |
|
|
$ |
6,848 |
|
|
$ |
6,499 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
11,951 |
|
|
$ |
46,988 |
|
|
$ |
11,949 |
|
|
$ |
36,503 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,699 |
|
|
$ |
6,656 |
|
|
$ |
6,687 |
|
|
$ |
6,699 |
|
| Average number of vessels |
|
42.0 |
|
|
42.0 |
|
|
42.0 |
|
|
42.0 |
|
| |
|
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
11,528 |
|
|
$ |
35,794 |
|
|
$ |
11,378 |
|
|
$ |
28,701 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,591 |
|
|
$ |
6,891 |
|
|
$ |
6,618 |
|
|
$ |
6,785 |
|
| Average number of vessels |
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
12,468 |
|
|
$ |
21,508 |
|
|
$ |
11,871 |
|
|
$ |
21,196 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,956 |
|
|
$ |
6,161 |
|
|
$ |
6,963 |
|
|
$ |
6,291 |
|
| Average number of vessels |
|
63.0 |
|
|
62.0 |
|
|
63.0 |
|
|
61.4 |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
9,865 |
|
|
$ |
17,698 |
|
|
$ |
9,286 |
|
|
$ |
20,117 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,645 |
|
|
$ |
6,359 |
|
|
$ |
6,994 |
|
|
$ |
6,548 |
|
| Average number of vessels |
|
14.0 |
|
|
20.8 |
|
|
15.7 |
|
|
20.9 |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of vessels |
|
131.0 |
|
|
136.8 |
|
|
132.7 |
|
|
136.3 |
|
| |
|
|
|
|
|
|
|
|
| Drydock |
|
|
|
|
|
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments for owned,
sale leaseback and bareboat chartered-in vessels (in thousands of
U.S. dollars) |
|
$ |
10,707 |
|
|
$ |
56,319 |
|
|
$ |
27,308 |
|
|
$ |
119,805 |
|
|
(1) |
See Non-IFRS Measures section below. |
|
(2) |
Freight rates are commonly measured in the shipping industry in
terms of time charter equivalent per day (or TCE per day), which is
calculated by subtracting voyage expenses, including bunkers and
port charges, from vessel revenue and dividing the net amount (time
charter equivalent revenues) by the number of revenue days in the
period. Revenue days are the number of days the vessel is owned,
sale leasebacked, or chartered-in less the number of days the
vessel is off-hire for drydock and repairs. |
|
(3) |
Vessel operating costs per day represent vessel operating costs
divided by the number of operating days during the period.
Operating days are the total number of available days in a period
with respect to the owned, finance leased or bareboat chartered-in
vessels, before deducting available days due to off-hire days and
days in drydock. Operating days is a measurement that is only
applicable to owned, sale leasebacked, or bareboat chartered-in
vessels, not time chartered-in vessels. |
Fleet list as of August 4,
2021
| |
Vessel
Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Scrubber |
|
| |
Owned, sale
leaseback and bareboat chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
1 |
STI Brixton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
2 |
STI Comandante |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
3 |
STI Pimlico |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
4 |
STI Hackney |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
5 |
STI Acton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
6 |
STI Fulham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
7 |
STI Camden |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
8 |
STI Battersea |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
9 |
STI Wembley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
10 |
STI Finchley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
11 |
STI Clapham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
12 |
STI Poplar |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
13 |
STI Hammersmith |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
14 |
STI Rotherhithe |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
15 |
STI Amber |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
17 |
STI Ruby |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
18 |
STI Garnet |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
19 |
STI Onyx |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
20 |
STI Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
21 |
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
22 |
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
23 |
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
24 |
STI Texas City |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
25 |
STI Meraux |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
26 |
STI San Antonio |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
27 |
STI Venere |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
28 |
STI Virtus |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
29 |
STI Aqua |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
30 |
STI Dama |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
31 |
STI Benicia |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
32 |
STI Regina |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
33 |
STI St. Charles |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
34 |
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
35 |
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
36 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
37 |
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
38 |
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
39 |
STI Memphis |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
40 |
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
41 |
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
42 |
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
43 |
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
44 |
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
45 |
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
46 |
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
47 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
48 |
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
49 |
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
50 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
51 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
52 |
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
53 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
54 |
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
55 |
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
56 |
STI San Telmo |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
57 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
58 |
STI Esles II |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
59 |
STI Jardins |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
60 |
STI Magic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
61 |
STI Majestic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
62 |
STI Mystery |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
63 |
STI Marvel |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
64 |
STI Magnetic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
65 |
STI Millennia |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
66 |
STI Magister (formerly STI
Master) |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
67 |
STI Mythic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
68 |
STI Marshall |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
69 |
STI Modest |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
70 |
STI Maverick |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
71 |
STI Miracle |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
72 |
STI Maestro |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
73 |
STI Mighty |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
74 |
STI Maximus |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
75 |
STI Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
76 |
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
77 |
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
78 |
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
79 |
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
80 |
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
81 |
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
82 |
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
83 |
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
84 |
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
85 |
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
86 |
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
87 |
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
88 |
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
89 |
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
90 |
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
91 |
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
92 |
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
93 |
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
94 |
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
95 |
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
96 |
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
97 |
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
98 |
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
99 |
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
100 |
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
101 |
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
102 |
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
103 |
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
104 |
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
105 |
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
106 |
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
107 |
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
108 |
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
109 |
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
110 |
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
111 |
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
112 |
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
113 |
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
114 |
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
115 |
STI Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
116 |
STI Goal |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
117 |
STI Nautilus |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
118 |
STI Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
119 |
STI Guide |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
120 |
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
121 |
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
122 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
123 |
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
124 |
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
125 |
STI Lobelia |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
126 |
STI Lotus |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
127 |
STI Lily |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
128 |
STI Lavender |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
129 |
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5 |
) |
|
130 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5 |
) |
|
131 |
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned, sale leaseback
and bareboat chartered-in fleet DWT |
|
|
|
9,223,160 |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP.
SHTP is a Scorpio Pool and is operated by Scorpio Commercial
Management S.A.M. (SCM). SHTP and SCM are related parties to the
Company. |
|
(2 |
) |
This vessel operates in the Scorpio MR Pool, or SMRP. SMRP is a
Scorpio Pool and is operated by SCM. SMRP and SCM are related
parties to the Company. |
|
(3 |
) |
This vessel operates in the Scorpio LR1 Pool, or SLR1P. SLR1P is a
Scorpio Pool and is operated by SCM. SLR1P and SCM are related
parties to the Company. |
|
(4 |
) |
This vessel operates in the Scorpio LR2 Pool, or SLR2P. SLR2P is a
Scorpio Pool and is operated by SCM. SLR2P and SCM are related
parties to the Company. |
|
(5 |
) |
In April 2017, we sold and leased back this vessel, on a bareboat
basis, for a period of up to eight years for $8,800 per day. The
sales price was $29.0 million per vessel, and we have the option to
purchase this vessel beginning at the end of the fifth year of the
agreement through the end of the eighth year of the agreement, at
market-based prices. Additionally, a deposit of $4.35 million per
vessel was retained by the buyer and will either be applied to the
purchase price of the vessel if a purchase option is exercised or
refunded to us at the expiration of the agreement. |
Dividend Policy
The declaration and payment of dividends is
subject at all times to the discretion of the Company's Board of
Directors. The timing and the amount of dividends, if any, depends
on the Company's earnings, financial condition, cash requirements
and availability, fleet renewal and expansion, restrictions in loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2020 and 2021 were as
follows:
|
Date paid |
Dividends per commonshare |
|
March 2020 |
$0.100 |
|
June 2020 |
$0.100 |
|
September 2020 |
$0.100 |
|
December 2020 |
$0.100 |
|
March 2021 |
$0.100 |
|
June 2021 |
$0.100 |
On August 4, 2021, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about September 29, 2021 to all shareholders
of record as of September 9, 2021 (the record date). As of
August 4, 2021, there were 58,369,516 common shares of the
Company outstanding.
$250 Million Securities Repurchase
Program
In September 2020, the Company's Board of
Directors authorized a new Securities Repurchase Program to
purchase up to an aggregate of $250 million of the Company's
securities which, in addition to its common shares, currently
consist of its Senior Notes due 2025 (NYSE: SBBA), which were
originally issued in May 2020, Convertible Notes due 2022, which
were issued in May and July 2018, and Convertible Notes due 2025,
which were issued in March and June 2021. No securities have been
repurchased under the new program since its inception through the
date of this press release.
At the Market Equity Offering
Program
In November 2019, the Company entered into an
“at the market” offering program (the "ATM Equity Program")
pursuant to which it may sell up to $100 million of its common
shares, par value $0.01 per share. As part of the ATM Equity
Program, the Company entered into an equity distribution agreement
dated November 7, 2019 (the “Sales Agreement”), with BTIG, LLC, as
sales agent (the "Equity ATM Agent"). In accordance with the terms
of the Sales Agreement, the Company may offer and sell its common
shares from time to time through the Equity ATM Agent by means of
ordinary brokers’ transactions on the NYSE at market prices, in
block transactions, or as otherwise agreed upon by the Equity ATM
Agent and the Company.
There is $97.4 million of remaining availability
under the ATM Program as of August 4, 2021.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns, finance leases or bareboat charters-in 131
product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and
14 Handymax tankers) with an average age of 5.5 years. Additional
information about the Company is available at the Company's website
www.scorpiotankers.com, which is not a part of this press
release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS
Financial Information
This press release describes time charter
equivalent revenue, or TCE revenue, adjusted net income or loss,
and adjusted EBITDA, which are not measures prepared in accordance
with IFRS ("Non-IFRS" measures). The Non-IFRS measures are
presented in this press release as we believe that they provide
investors and other users of our financial statements, such as our
lenders, with a means of evaluating and understanding how the
Company's management evaluates the Company's operating performance.
These Non-IFRS measures should not be considered in isolation from,
as substitutes for, or superior to financial measures prepared in
accordance with IFRS.
The Company believes that the presentation of
TCE revenue, adjusted net income or loss with adjusted earnings or
loss per share, basic and diluted, and adjusted EBITDA are useful
to investors or other users of our financial statements, such as
our lenders, because they facilitate the comparability and the
evaluation of companies in the Company’s industry. In addition, the
Company believes that TCE revenue, adjusted net income or loss with
adjusted earnings or loss per share, basic and diluted, and
adjusted EBITDA are useful in evaluating its operating performance
compared to that of other companies in the Company’s industry. The
Company’s definitions of TCE revenue, adjusted net income or loss
with adjusted earnings or loss per share, basic and diluted, and
adjusted EBITDA may not be the same as reported by other companies
in the shipping industry or other industries.
TCE revenue, on a historical basis, is
reconciled above in the section entitled "Explanation of Variances
on the Second Quarter of 2021 Financial Results Compared to the
Second Quarter of 2020". The Company has not provided a
reconciliation of forward-looking TCE revenue because the most
directly comparable IFRS measure on a forward-looking basis is not
available to the Company without unreasonable effort.
Reconciliation of Net Loss to Adjusted Net
Loss
| |
|
|
For the three months ended June 30, 2021 |
| |
|
|
|
|
Per share |
|
Per share |
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
Net loss |
|
$ |
(52,782 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.97 |
) |
| |
Adjustments: |
|
|
|
|
|
|
| |
Loss on Convertible Notes
exchange |
|
1,648 |
|
|
0.03 |
|
|
0.03 |
|
| |
Write-off of deferred
financing fees |
|
51 |
|
|
— |
|
|
— |
|
| |
Adjusted net loss |
|
$ |
(51,083 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.94 |
) |
| |
|
|
For the three months ended June 30, 2020 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net income |
|
$ |
143,941 |
|
|
$ |
2.63 |
|
|
$ |
2.40 |
|
|
| |
Adjustment: |
|
|
|
|
|
|
|
| |
Write-off of deferred
financing fees |
|
313 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
Adjusted net income |
|
$ |
144,254 |
|
|
$ |
2.63 |
|
|
$ |
2.40 |
|
(1 |
) |
| |
|
|
For the six months ended June 30, 2021 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(115,176 |
) |
|
$ |
(2.12 |
) |
|
$ |
(2.12 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Loss on Convertible Notes
exchange |
|
5,504 |
|
|
0.10 |
|
|
0.10 |
|
|
| |
Write-off of deferred
financing fees |
|
1,326 |
|
|
0.02 |
|
|
0.02 |
|
|
|
|
Adjusted net loss |
|
$ |
(108,346 |
) |
|
$ |
(1.99 |
) |
|
$ |
(1.99 |
) |
(1 |
) |
| |
|
|
For the six months ended June 30, 2020 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net income |
|
$ |
190,568 |
|
|
$ |
3.48 |
|
|
$ |
3.21 |
|
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred financing fees
write-off |
|
313 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
Adjusted net income |
|
$ |
190,881 |
|
|
$ |
3.49 |
|
|
$ |
3.21 |
|
(1 |
) |
(1) Summation difference due to rounding.
Reconciliation of Net (Loss) / Income to Adjusted
EBITDA
| |
|
|
For the three months ended June 30, |
|
For the six months ended June 30, |
| In thousands of
U.S. dollars |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Net (loss) / income |
|
$ |
(52,782 |
) |
|
$ |
143,941 |
|
|
$ |
(115,176 |
) |
|
$ |
190,568 |
|
| |
Financial expenses |
|
35,906 |
|
|
39,127 |
|
|
69,973 |
|
|
83,892 |
|
| |
Loss on Convertible Notes
exchange |
|
1,648 |
|
|
— |
|
|
5,504 |
|
|
— |
|
| |
Financial income |
|
(187 |
) |
|
(295 |
) |
|
(412 |
) |
|
(860 |
) |
| |
Depreciation - owned or
finance leased vessels |
|
49,222 |
|
|
48,102 |
|
|
98,006 |
|
|
94,943 |
|
| |
Depreciation - right of use
assets |
|
10,200 |
|
|
13,609 |
|
|
22,041 |
|
|
26,806 |
|
| |
Amortization of restricted
stock |
|
6,291 |
|
|
7,509 |
|
|
12,483 |
|
|
15,355 |
|
| |
Adjusted EBITDA |
|
$ |
50,298 |
|
|
$ |
251,993 |
|
|
$ |
92,419 |
|
|
$ |
410,704 |
|
Forward-Looking Statements
Matters discussed in this press release may
constitute forward‐looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward‐looking statements in order to encourage companies to
provide prospective information about their business.
Forward‐looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "target," "project," "likely," "may," "will," "would,"
"could" and similar expressions identify forward‐looking
statements.
The forward‐looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although management believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or
projections. The Company undertakes no obligation, and specifically
declines any obligation, except as required by law, to publicly
update or revise any forward‐looking statements, whether as a
result of new information, future events or otherwise.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward‐looking statements include unforeseen liabilities, future
capital expenditures, revenues, expenses, earnings, synergies,
economic performance, indebtedness, financial condition, losses,
future prospects, business and management strategies for the
management, length and severity of the ongoing novel coronavirus
(COVID-19) outbreak, including its effect on demand for petroleum
products and the transportation thereof, expansion and growth of
the Company’s operations, risks relating to the integration of
assets or operations of entities that it has or may in the future
acquire and the possibility that the anticipated synergies and
other benefits of such acquisitions may not be realized within
expected timeframes or at all, the failure of counterparties to
fully perform their contracts with the Company, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for tanker vessel capacity, changes in the Company’s
operating expenses, including bunker prices, drydocking and
insurance costs, the market for the Company’s vessels, availability
of financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off‐hires, and other factors. Please
see the Company's filings with the SEC for a more complete
discussion of certain of these and other risks and
uncertainties.
Scorpio Tankers Inc.212-542-1616
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