Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers", or the
"Company") today reported its results for the three and nine months
ended September 30, 2018.
Results for the three months ended
September 30, 2018 and 2017
For the three months ended September 30, 2018,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $64.9 million, or $0.21 basic and diluted loss per
share, which excludes from the net loss (i) a $0.9 million loss
recorded on the Company's exchange of $15.0 million of its
convertible notes (as described below), and (ii) a $5.9 million
write-off of deferred financing fees. The adjustments resulted in
an aggregate reduction of the Company’s net loss by $6.8
million, or $0.02 per basic and diluted share. For
the three months ended September 30, 2018, the Company had a net
loss of $71.7 million, or $0.23 basic and diluted loss per
share.
For the three months ended September 30, 2017,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $34.0 million, or $0.15 basic and diluted
loss per share, which excludes from the net loss (i) $2.3
million of transaction costs related to the merger with Navig8
Product Tankers Inc. ("NPTI"), and (ii) a $0.6
million write-off of deferred financing fees. The adjustments
resulted in an aggregate reduction of the Company’s net loss
by $2.9 million, or $0.01 basic and diluted loss per
share. For the three months ended September 30, 2017, the Company
had a net loss of $36.9 million, or $0.16 basic and
diluted loss per share.
Results for the nine months ended
September 30, 2018 and 2017
For the nine months ended September 30, 2018,
the Company's adjusted net loss was $141.3 million (see
Non-IFRS Measures section below), or $0.46 basic and
diluted loss per share, which excludes from the net loss (i) an
aggregate loss of $17.8 million recorded on the Company's exchange
of $203.5 million of its convertible notes (as described below),
(ii) a $12.9 million write-off of deferred financing fees, and
(iii) $0.3 million of transaction costs related to the
merger with NPTI. The adjustments resulted in an aggregate
reduction of the Company's net loss by $31.1
million or $0.10 per basic and diluted share. For
the nine months ended September 30, 2018, the Company had a net
loss of $172.4 million, or $0.56 basic and diluted
loss per share.
For the nine months ended September 30, 2017,
the Company's adjusted net loss was $62.5 million (see
Non-IFRS Measures section below), or $0.33 basic and
diluted loss per share, which excludes from the net loss (i)
a $23.3 million loss on sales of vessels, (ii) $34.8
million of transaction costs related to the merger with NPTI,
(iii) a $5.4 million gain recorded on the purchase of the
four NPTI subsidiaries that own four LR1 tankers, and (iv)
a $1.5 million write-off of deferred financing fees. The
adjustments resulted in an aggregate reduction of the Company's net
loss by $54.2 million, or $0.28 per basic and
diluted share. For the nine months ended September 30, 2017, the
Company had a net loss of $116.7 million,
or $0.61 basic and diluted loss per share.
Declaration of Dividend
On October 30, 2018, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about December 13, 2018 to all shareholders of record
as of December 5, 2018 (the record date). As of October 30,
2018, there were 515,893,564 shares outstanding.
Summary of Other Recent and Third
Quarter Significant Events
- Below is a summary of the average daily Time Charter Equivalent
(TCE) revenue (see Non-IFRS Measures section below) and duration
for voyages fixed for the Company's vessels thus far in the fourth
quarter of 2018 as of the date hereof (See footnotes to 'Other
operating data' table below for the definition of daily TCE
revenue):— For the LR2s in the pool:
approximately $13,000 per day for 45% of the days.— For
the LR1s in the pool: approximately $12,750 per day for 46% of the
days.— For the MRs in the pool: approximately $12,000 per
day for 46% of the days.— For the ice-class 1A and 1B
Handymaxes in the pool: approximately $11,000 per day for 42% of
the days.
- Below is a summary of the average daily TCE revenue earned on
the Company's vessels during the third quarter of 2018:— For
the LR2s in the pool: $12,160 per revenue day.— For the LR1s
in the pool: $8,335 per revenue day.— For the MRs in the pool:
$9,494 per revenue day.— For the ice-class 1A and 1B
Handymaxes in the pool: $8,852 per revenue day.
- From June 2018 through October 2018, the Company closed on
agreements to refinance a total of 41 of its vessels through a
series of bank loans and lease financing arrangements raising
$321.7 million in aggregate of new liquidity, after the repayment
of the existing secured debt related to these vessels. These
agreements are described below.
- In September and October 2018, the Company entered into an
agreement to retrofit 23 of its LR2s with Exhaust Gas Cleaning
Systems (“Scrubbers”), and agreed letters of intent (which are
subject to the execution of definitive documentation) with
suppliers, engineering firms, and ship repair facilities to cover
the purchase and installation of Scrubbers on substantially all of
its remaining owned and financed leased LR2, LR1, and MR tanker
vessels (approximately 67 vessels) between the second quarter of
2019 and the second quarter of 2020. The Scrubbers and their
installation are expected to cost between $1.5 and $2.2 million per
vessel, and the Company anticipates that between 60-70% of these
costs will be financed.
- In October 2018, the Company raised estimated net proceeds
of $319.7 million in an underwritten public offering of
182.2 million shares of common stock (including 20.0 million shares
of common stock issued when the underwriters partially exercised
their overallotment option to purchase additional shares) at a
public offering price of $1.85 per share. Scorpio Bulkers
Inc., or SALT, and Scorpio Services Holding Limited, or SSH, each a
related party, purchased 54.1 million common shares and 5.4 million
common shares, respectively, at the public offering price.
- In September 2018, the Company entered into an agreement with
its commercial manager, Scorpio Commercial Management S.A.M., or
SCM, whereby SCM will reimburse certain of the commissions that SCM
charges the Company's vessels to effectively reduce such to 0.85%
of gross revenue per charter fixture, effective from September 1,
2018 and ending on June 1, 2019.
- In September 2018, the Company entered into agreements with
certain of its lenders who are party to credit facilities with the
Company, to permanently remove the minimum interest coverage ratio
financial covenant from the terms of each facility. As a result,
the Company is no longer required to maintain a ratio of EBITDA to
net interest expense on any of its secured credit facilities or
lease financing arrangements.
- In September 2018, the Company paid a quarterly cash dividend
with respect to the second quarter of 2018 on the Company's common
stock of $0.01 per share.
- In July 2018, the Company exchanged $15.0 million in aggregate
principal amount of its Convertible Senior Notes due 2019 (the
"Convertible Notes due 2019") for $15.0 million in aggregate
principal amount of its Convertible Senior Notes due 2022 (the
"Convertible Notes due 2022").
Refinancing Initiatives
The table and discussion set forth below
summarizes the Company’s previously announced refinancing
initiatives, all of which have closed as of the date of this press
release.
|
|
| |
|
|
In thousands of U.S. dollars |
|
| |
Agreement |
Closing date |
Facilityamount |
Existingdebtrepayment |
Newliquidity |
Number ofvesselsrefinanced |
| 1 |
|
ABN AMRO/SEB Credit
Facility |
Q2 2018 |
$ |
120,575 |
|
$ |
87,575 |
|
$ |
33,000 |
|
Five |
| 2 |
|
$88.0 Million Sale
and Leaseback |
Q3
2018 |
88,000 |
|
57,408 |
|
30,592 |
|
Four |
| 3 |
|
ING Credit Facility
Upsize |
Q3
2018 |
38,675 |
|
26,854 |
|
11,821 |
|
Two |
| 4 |
|
$35.7 Million Term Loan
Facility |
Q3
2018 |
35,658 |
|
26,450 |
|
9,208 |
|
Two |
| 5 |
|
China Huarong Shipping
Sale and Leaseback |
Q3
2018 |
144,000 |
|
92,729 |
|
51,271 |
|
Six |
| 6 |
|
AVIC International Sale
and Leaseback |
Q3
2018 |
145,000 |
|
100,056 |
|
44,944 |
|
Five |
| 7 |
|
2018 CMB Sale and
Leaseback |
Q3
2018 |
141,600 |
|
87,491 |
|
54,109 |
|
Six |
| 8 |
|
$116.0
Million Sale and Leaseback |
Q3
2018 |
116,000 |
|
73,020 |
|
42,980 |
|
Four |
| 9 |
|
$157.5
Million Sale and Leaseback |
Q4
2018 |
157,500 |
|
113,701 |
|
43,799 |
|
Seven |
| |
|
|
$ |
987,008 |
|
$ |
665,284 |
|
$ |
321,724 |
|
41
vessels |
|
|
ABN AMRO/SEB Credit
Facility
In June 2018, the Company executed a senior
secured term loan facility with ABN AMRO Bank N.V. and
Skandinaviska Enskilda Banken AB for $120.6 million. This loan
was fully drawn in June 2018, and the proceeds were used to
refinance the existing indebtedness of $87.6 million on the
K-Sure Credit Facility relating to five vessels consisting of one
Handymax product tanker (STI Hammersmith), one MR product tanker
(STI Westminster), and three LR2 product tankers (STI Connaught,
STI Winnie and STI Lauren).
The ABN AMRO/SEB Credit Facility has a final
maturity of June 2023 and bears interest at LIBOR plus a
margin of 2.60% per annum. The loan will be repaid in equal
quarterly installments of $2.9 million per quarter, in
aggregate, for the first eight installments and $2.5 million
per quarter, in aggregate, thereafter, with a balloon payment due
upon maturity. The terms and conditions, including financial
covenants, of the ABN AMRO/SEB Credit Facility are similar to those
in the Company’s existing credit facilities.
$88.0 Million Sale and
Leaseback
In July 2018, the Company reached an agreement
to sell and leaseback two Handymax product tankers (STI Battersea
and STI Wembley) and two MR product tankers (STI Texas City and STI
Meraux) to an international financial institution. The borrowing
amounts under the arrangement were $21.2 million per Handymax and
$22.8 million per MR ($88.0 million in aggregate), and these
agreements, which have been accounted for as financing
arrangements, closed in September 2018. The proceeds were utilized
to repay $14.8 million of the outstanding indebtedness on the DVB
2017 Credit Facility, $12.6 million of the outstanding indebtedness
on the K-Sure Credit Facility, and $30.0 million of the outstanding
indebtedness on the 2016 Credit Facility for these vessels.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the second year of each agreement. The
leases bear interest at LIBOR plus a margin of 3.6% per annum and
will be repaid in quarterly installments of $0.5 million per
vessel. Each agreement also has a purchase obligation at the end of
the eighth year, which is equal to the outstanding principal
balance at that date. The Company is subject to certain additional
terms and conditions under this arrangement, including financial
covenants, which are similar to those set forth in its existing
lease financing arrangements.
ING Credit Facility Upsize
In June 2018, the Company executed an agreement
to upsize its $132.5 million credit facility with
ING Bank N.V. to $171.2 million. In September 2018, the
Company drew down $38.7 million from this facility and placed STI
Rotherhithe and STI Notting Hill as collateral under this
agreement. The proceeds were used to refinance the existing
indebtedness of $26.9 million on the Company’s K-Sure Credit
Facility relating to one Handymax product tanker (STI Rotherhithe)
and one MR product tanker (STI Notting Hill).
The upsized portion of the loan facility has a
final maturity of June 2022 and bears interest at LIBOR plus a
margin of 2.40% per annum. The loan will be repaid in equal
quarterly installments of $1.0 million per quarter, in
aggregate, for the first eight installments and $0.8
million per quarter, in aggregate, thereafter, with a balloon
payment due upon maturity. The remaining terms and conditions of
the upsized portion, including financial covenants, are similar to
those set forth in the Company’s existing credit facilities.
$35.7 Million Term Loan
Facility
In June 2018, the Company executed an agreement
with a leading European financial institution for a term loan
facility of $35.7 million. The loan facility was drawn in August
2018 and the proceeds were used to repay $26.5 million of the
existing indebtedness on the BNP Paribas Credit Facility related to
two MR product tankers (STI Memphis and STI Soho).
The loan facility has a final maturity of June
2021, bears interest at LIBOR plus a margin of 2.50% per annum and
will be repaid in equal quarterly installments of $0.8
million, in aggregate, with a balloon payment due upon maturity.
The remaining terms and conditions, including financial covenants,
are similar to those set forth in the Company’s existing credit
facilities.
China Huarong Shipping Sale and
Leaseback
In May 2018, the Company reached an agreement to
sell and leaseback six 2014 built MR product tankers (STI
Opera, STI Virtus, STI Venere, STI Aqua, STI Dama and STI Regina)
to China Huarong Shipping Financial Leasing Co., Ltd. The borrowing
amount under the arrangement was $144.0 million in aggregate. These
agreements, which have been accounted for as financing
arrangements, closed in August 2018, and the proceeds were utilized
to repay $92.7 million of the outstanding indebtedness under the
2016 Credit Facility.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the third year of each agreement. The
leases bear interest at LIBOR plus a margin of 3.5% per annum and
will be repaid in equal quarterly principal installments of $0.6
million per vessel. Each agreement also has a purchase obligation
at the end of the eighth year, which is equal to the outstanding
principal balance at that date. The Company is subject to certain
additional terms and conditions under this arrangement, including
financial covenants, which are similar to those set forth in its
existing lease financing arrangements.
AVIC International Sale and
Leaseback
In July 2018, the Company executed an agreement
to sell and leaseback three MR product tankers (STI Ville, STI
Fontvieille and STI Brooklyn) and two LR2 product tankers (STI Rose
and STI Rambla) to AVIC International Leasing Co., Ltd. The
borrowing amounts under the arrangement are $24.0 million per MR
and $36.5 million per LR2 ($145.0 million in aggregate). These
agreements, which have been accounted for as financing
arrangements, closed in August and September 2018, and the proceeds
were utilized to repay $32.7 million of the outstanding
indebtedness on the NIBC Credit Facility, $13.0 million of the
outstanding indebtedness on the K-Sure Credit Facility, $28.3
million of the outstanding indebtedness on the Scotiabank Credit
Facility, and $26.1 million of the outstanding indebtedness on the
Credit Suisse Credit Facility for these vessels.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the second year of each agreement. The
leases bear interest at LIBOR plus a margin of 3.7% per annum and
will be repaid in quarterly principal installments of $0.5 million
per MR and $0.8 million per LR2. Each agreement also has a purchase
obligation at the end of the eighth year, which is equal to the
outstanding principal balance at that date. The Company is subject
to certain additional terms and conditions under this arrangement,
including financial covenants, which are similar to those set forth
in its existing lease financing arrangements.
2018 CMB Sale and Leaseback
In July 2018, the Company executed an agreement
to sell and leaseback six MR product tankers (STI Battery, STI
Milwaukee, STI Tribeca, STI Bronx, STI Manhattan and STI Seneca) to
CMB Financial Leasing Co., Ltd. The borrowing amount under the
arrangement was $141.6 million in aggregate, and these agreements,
which have been accounted for as financing arrangements, closed in
August 2018. The proceeds were utilized to repay $33.5 million of
the outstanding indebtedness on the DVB 2017 Credit Facility, $39.7
million of the outstanding indebtedness on the K-Sure Credit
Facility, and $14.4 million of the outstanding indebtedness on the
BNP Paribas Credit Facility for these vessels.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels at the
start of the fourth year of each agreement. The leases bear
interest at LIBOR plus a margin of 3.2% per annum and will be
repaid in quarterly principal installments of $0.4 million per
vessel. Each agreement also has a purchase obligation at the end of
the eighth year, which is equal to the outstanding principal
balance at that date. The Company is subject to certain additional
terms and conditions under this arrangement, including financial
covenants, which are similar to those set forth in its existing
lease financing arrangements.
$116.0 Million Sale and
Leaseback
In June 2018,the Company reached an agreement to
sell and leaseback two MR product tankers (STI Gramercy and STI
Queens) and two LR2 product tankers (STI Oxford and STI Selatar) in
two separate transactions to an international financial
institution. The borrowing amounts under the arrangement were $24.0
million per MR and $34.0 million per LR2 ($116.0 million in
aggregate), and these agreements, which have been accounted for as
financing arrangements, closed in August 2018. The proceeds were
utilized to repay $26.5 million of the outstanding indebtedness on
the Credit Suisse Credit Facility and $46.6 million of the
outstanding indebtedness on the K-Sure Credit Facility for these
vessels.
Under the terms of these agreements, the Company
will make a fixed payment, which includes principal and interest,
for seven years at $7,935 per day for each MR and $11,040 per day
for each LR2. In addition, the Company has purchase options
beginning at the end of the third year of each agreement, and a
purchase obligation for each vessel upon the expiration of each
agreement. We are subject to certain additional terms and
conditions under this arrangement, which are similar to those set
forth in our existing lease financing arrangements.
$157.5 Million Sale and
Leaseback
In July 2018, the Company agreed to sell and
leaseback six MR product tankers (STI San Antonio, STI Benicia, STI
St. Charles, STI Yorkville, STI Mayfair and STI Duchessa) and one
LR2 product tanker (STI Alexis) to an international financial
institution. The borrowing amount under the arrangement was $157.5
million in aggregate, and these agreements, which will be accounted
for as financing arrangements, closed in October 2018. In September
2018, the Company repaid the outstanding indebtedness for two
vessels consisting of $14.2 million on the HSH Credit Facility and
$13.6 million on the K-Sure Credit Facility, in advance of the
October closing of these transactions. Upon closing, the proceeds
were utilized to repay the outstanding indebtedness of $59.2
million on the 2016 Credit Facility and the outstanding
indebtedness of $25.8 million on the DVB 2017 Credit Facility for
the remaining five vessels.
Each agreement is for a fixed term of seven
years, and the Company has options to purchase the vessels
beginning at the end of the third year of each agreement. The
leases bear interest at LIBOR plus a margin of 3.0% per annum and
will be repaid in equal quarterly principal installments of $0.5
million per MR and $0.6 million for the LR2. Each agreement also
has a purchase obligation at the end of the seventh year. The
Company is subject to certain additional terms and conditions under
this arrangement, including financial covenants, which are similar
to those set forth in its existing lease financing
arrangements.
$250 Million Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a 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 (i)
Convertible Notes due 2019, which were issued in June 2014, (ii)
Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in
May 2014, (iii) Unsecured Senior Notes Due 2019 (NYSE: SBBC), which
were issued in March 2017, and (iv) Convertible Notes due 2022,
which were issued in May and July 2018.
No securities were repurchased under this
program during the period commencing January 1, 2018 and ending on
the date of this press release.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
Diluted Weighted Number of
Shares
Diluted earnings per share is determined using
the if-converted method. Under this method, the Company assumes
that its Convertible Notes due 2019 and Convertible Notes due 2022
(which were issued in June 2014 and May 2018, respectively) were
converted into common shares at the beginning of each period and
the interest and non-cash amortization expense associated with
these notes of $6.0 million and $17.5 million during the three and
nine months ended September 30, 2018, respectively, were not
incurred. Conversion is not assumed if the results of this
calculation are anti-dilutive.
For the three and nine months ended September
30, 2018, the Company's basic weighted average number of shares was
310,032,639 and 309,291,442, respectively. The weighted average
number of shares, both diluted and under the if-converted method,
were anti-dilutive for the three and nine months ended September
30, 2018, respectively, as the Company incurred net losses.
As of the date hereof, the Convertible Notes due
2019 and Convertible Notes due 2022 are not eligible for
conversion.
Amendment of Minimum Interest Coverage
Ratio
In September 2018, the Company entered into
agreements with certain of its lenders who are party to credit
facilities with the Company, to permanently remove the minimum
interest coverage ratio financial covenant from the terms of each
facility. As a result, the Company is no longer required to
maintain a ratio of EBITDA to net interest expense on any of its
secured credit facilities or lease financing arrangements.
As part of these agreements, and for certain of
the facilities (as detailed below), the minimum threshold for the
aggregate fair market value of the vessels as a percentage of the
then aggregate principal amount of each facility was revised to be
no less than the following:
| |
|
Facility |
Minimum
ratio |
| KEXIM Credit
Facility |
155% |
| 2017 Credit
Facility |
155% |
| 2016 Credit
Facility |
145%
through June 30, 2019, 150% thereafter |
| ABN Credit
Facility |
145%
through June 30, 2019, 150% thereafter |
| DVB Credit
Facility |
145%
through June 30, 2019, 150% thereafter |
| |
|
Convertible Notes Exchange
In July 2018, the Company exchanged $15.0
million in aggregate principal amount of its Convertible Notes due
2019 for $15.0 million in aggregate principal amount of its
Convertible Notes due 2022. The new notes issued in this exchange
have identical terms, are fungible with and are part of the series
of Convertible Notes due 2022 which were issued in May 2018. This
exchange was executed with certain holders of the Convertible Notes
due 2019 via separate, privately negotiated agreements.
This transaction was accounted for as an
extinguishment of debt and the Company recorded a loss on
extinguishment of $0.9 million during the third quarter of 2018 as
a result.
The Convertible Notes due 2022 bear interest at
a coupon rate of 3.0%, which is payable semi-annually on November
15 and May 15 of each year and carried an initial conversion rate
of 250 shares of the Company's common stock per $1,000 principal
amount ($4.00 per share). The conversion rate is subject to
adjustment from time to time upon the occurrence of certain events
(such as the payment of dividends). The conversion rate was
adjusted to 252.1317 shares of the Company's common stock per
$1,000 principal amount in September 2018 due to the scheduled
payment of a quarterly dividend. The Convertible Notes due 2022
mature on May 15, 2022 and are non-redeemable. The remaining terms
and conditions are similar to those set forth in the Company's
Convertible Notes due 2019.
Conference Call
The Company has scheduled a conference call on
October 31, 2018 at 8:00 AM Eastern Daylight Time and 1:00 PM
Central European Time. The dial-in information is as follows:
US Dial-In Number: +1 (855) 861-2416
International Dial-In Number: +1 (703)
736-7422
Conference ID: 7996914
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.
Slides and Audio Webcast:
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/m6/p/c8zombh7
Current Liquidity
As of October 30, 2018, the Company
had $648.8 million in unrestricted cash and cash
equivalents.
Drydock Update
Two of the Company’s 2013 built MR product
tankers were drydocked in accordance with their scheduled, class
required special survey during the third quarter of 2018. These
vessels were offhire for an aggregate of 42 days and the aggregate
drydock cost was $1.5 million.
The Company has two 2014 built MRs that are
scheduled for drydock during the remainder of 2018 and estimates
that these vessels will be offhire for an aggregate of 40 days with
estimated aggregate drydock costs of approximately $2.0
million.
Debt
Set forth below is a summary of the Company’s
outstanding indebtedness as of the dates presented:
|
|
| |
In thousands of U.S.
dollars |
|
Outstandingas of June30, 2018 |
Drawdowns,(repayments),andexchanges, net |
Outstandingas ofSeptember30, 2018 |
Drawdowns,and(repayments),net |
Outstandingas ofOctober 30,2018 |
| 1 |
K-Sure Credit
Facility |
|
$ |
152,345 |
|
$ |
(152,345 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
| 2 |
KEXIM Credit
Facility |
|
316,125 |
|
(16,825 |
) |
299,300 |
|
— |
|
299,300 |
|
| 3 |
Credit Suisse Credit
Facility |
|
53,488 |
|
(53,488 |
) |
— |
|
— |
|
— |
|
| 4 |
ABN AMRO Credit
Facility |
|
108,868 |
|
(6,222 |
) |
102,646 |
|
(537 |
) |
102,109 |
|
| 5 |
ING Credit
Facility |
|
109,844 |
|
37,517 |
|
147,361 |
|
(1,071 |
) |
146,290 |
|
| 6 |
BNP Paribas Credit
Facility |
|
40,825 |
|
(40,825 |
) |
— |
|
— |
|
— |
|
| 7 |
Scotiabank Credit
Facility |
|
28,860 |
|
(28,860 |
) |
— |
|
— |
|
— |
|
| 8 |
NIBC Credit
Facility |
|
33,691 |
|
(33,691 |
) |
— |
|
— |
|
— |
|
| 9 |
$35.7 Million Term Loan
Facility |
|
— |
|
35,658 |
|
35,658 |
|
(808 |
) |
34,850 |
|
| 10 |
2016 Credit
Facility |
|
185,457 |
|
(126,268 |
) |
59,189 |
|
(59,189 |
) |
— |
|
| 11 |
HSH Nordbank Credit
Facility |
|
14,620 |
|
(14,620 |
) |
— |
|
— |
|
— |
|
| 12 |
2017 Credit
Facility |
|
157,057 |
|
(9,659 |
) |
147,398 |
|
— |
|
147,398 |
|
| 13 |
DVB 2017 Credit
Facility |
|
75,480 |
|
(49,680 |
) |
25,800 |
|
(25,800 |
) |
— |
|
| 14 |
Credit Agricole Credit
Facility |
|
103,579 |
|
(2,142 |
) |
101,437 |
|
— |
|
101,437 |
|
| 15 |
ABN AMRO/K-Sure Credit
Facility |
|
51,456 |
|
(964 |
) |
50,492 |
|
— |
|
50,492 |
|
| 16 |
Citi/K-Sure Credit
Facility |
|
107,858 |
|
(2,104 |
) |
105,754 |
|
— |
|
105,754 |
|
| 17 |
ABN AMRO/SEB Credit
Facility |
|
120,575 |
|
(2,875 |
) |
117,700 |
|
— |
|
117,700 |
|
| 18 |
Ocean Yield Lease
Financing |
|
165,598 |
|
(2,651 |
) |
162,947 |
|
(909 |
) |
162,038 |
|
| 19 |
CMBFL Lease
Financing |
|
64,425 |
|
(1,227 |
) |
63,198 |
|
— |
|
63,198 |
|
| 20 |
BCFL Lease Financing
(LR2s) |
|
104,455 |
|
(1,822 |
) |
102,633 |
|
(614 |
) |
102,019 |
|
| 21 |
CSSC Lease
Financing |
|
255,180 |
|
(4,326 |
) |
250,854 |
|
(1,442 |
) |
249,412 |
|
| 22 |
BCFL Lease Financing
(MRs) |
|
104,130 |
|
(2,652 |
) |
101,478 |
|
(863 |
) |
100,615 |
|
| 23 |
2018 CMB Sale and
Leaseback |
|
— |
|
139,071 |
|
139,071 |
|
— |
|
139,071 |
|
| 24 |
$116.0
Million Sale and Leaseback |
|
— |
|
114,255 |
|
114,255 |
|
(512 |
) |
113,743 |
|
| 25 |
AVIC International Sale
and Leaseback |
|
— |
|
142,052 |
|
142,052 |
|
— |
|
142,052 |
|
| 26 |
China Huarong Shipping
Sale and Leaseback |
|
— |
|
140,625 |
|
140,625 |
|
— |
|
140,625 |
|
| 27 |
$157.5 Million Sale and
Leaseback |
|
— |
|
— |
|
— |
|
155,621 |
|
155,621 |
|
| 28 |
$88.0 Million Sale
and Leaseback |
|
— |
|
86,075 |
|
86,075 |
|
— |
|
86,075 |
|
| 29 |
2020 Senior Unsecured
Notes |
|
53,750 |
|
— |
|
53,750 |
|
— |
|
53,750 |
|
| 30 |
2019 Senior Unsecured
Notes |
|
57,500 |
|
— |
|
57,500 |
|
— |
|
57,500 |
|
| 31 |
Convertible Notes due
2019 |
|
160,000 |
|
(15,000 |
) |
145,000 |
|
— |
|
145,000 |
|
| 32 |
Convertible Notes due
2022 |
|
188,500 |
|
15,000 |
|
203,500 |
|
— |
|
203,500 |
|
| |
|
|
$ |
2,813,666 |
|
$ |
142,007 |
|
$ |
2,955,673 |
|
$ |
63,876 |
|
$ |
3,019,549 |
|
|
|
Set forth below are the expected, estimated
future principal repayments on the Company's outstanding
indebtedness which includes principal amounts due under lease
financing arrangements:
| |
|
|
| In
millions of U.S. dollars |
As of October 30, 2018 |
| Q4 2018 - principal
payments made to date (1) |
$ |
8.6 |
|
| Q4 2018 - remaining
principal payments |
38.7 |
|
| Q1 2019 |
62.9 |
|
| Q2 2019 (2) |
103.9 |
|
| Q3 2019 (3) |
208.3 |
|
| Q4 2019 |
46.6 |
|
| 2020 and
thereafter |
2,559.2 |
|
| |
|
| |
$ |
3,028.2 |
|
| (1) Excludes the repayment of $85.0 million relating to
the refinancing of the existing indebtedness on five product
tankers that are part of the $157.5 million sale and leaseback that
closed in October 2018. |
| (2) Repayments include $57.5 million due upon the
maturity of the Company's 2019 Senior Unsecured Notes. |
| (3) Repayments include $145.0 million due upon the
maturity of the Company's Convertible Notes due 2019. |
| |
Explanation of Variances on the Third
Quarter of 2018 Financial Results Compared to the Third Quarter of
2017
For the three months ended September 30, 2018,
the Company recorded a net loss of $71.7 million compared to a net
loss of $36.9 million for the three months ended September 30,
2017. 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
charters, time charters, and pool charters), and it provides useful
information to investors and management. The following table
depicts TCE revenue for the three months ended September 30, 2018
and 2017:
| |
|
|
|
|
|
|
| |
|
For the three months ended September
30, |
| In thousands of U.S.
dollars |
|
2018 |
|
2017 |
| Vessel revenue |
|
$ |
119,281 |
|
|
$ |
123,119 |
|
| Voyage
expenses |
|
(470 |
) |
|
(1,276 |
) |
|
TCE revenue |
|
$ |
118,811 |
|
|
$ |
121,843 |
|
| |
|
|
|
|
|
|
|
|
- TCE revenue for the three months
ended September 30, 2018 decreased $3.0 million to $118.8 million,
from $121.8 million for the three months ended September 30, 2017.
This decrease was the result of a reduction in TCE revenue per day,
which decreased to $10,519 per day during the three months ended
September 30, 2018, from $12,395 per day during the three months
ended September 30, 2017. The spot market for product tankers
continues to face adverse market conditions as a result of an
unfavorable global supply and demand imbalance resulting primarily
from weaker global refining margins, a lack of arbitrage
opportunities, and the continued absorption of an influx of prior
year newbuilding deliveries. This decrease in TCE revenue per day
was partially offset by the growth of the Company's fleet to an
average of 124.2 operating vessels during the three months ended
September 30, 2018 from an average of 108.9 operating vessels
during the three months ended September 30, 2017. This fleet growth
was the result of the merger with NPTI, which resulted in the
delivery of 23 vessels in September 2017, and the delivery of six
vessels under the Company's newbuilding program (four vessels
during the third and fourth quarters of 2017 and two vessels during
the first quarter of 2018.)
- Vessel operating costs for the
three months ended September 30, 2018 increased $10.9 million to
$69.3 million, from $58.4 million for the three months ended
September 30, 2017. This increase was the result of an increase in
the average number of owned and bareboat chartered-in vessels for
the three months ended September 30, 2018 to 119.0 vessels from
99.3 vessels for the three months ended September 30, 2017. This
growth was the result of (i) the merger with NPTI, which resulted
in the delivery of 23 vessels in September 2017, and (ii) the
delivery of a total of six vessels under the Company's newbuilding
program during the third and fourth quarters of 2017 and the first
quarter of 2018.
- Charterhire expense for the three
months ended September 30, 2018 decreased $5.1 million to $13.8
million, from $18.9 million for the three months ended September
30, 2017. This decrease was the result of a decrease in the number
of time chartered-in vessels during those periods. The Company's
time and bareboat chartered-in fleet consisted of an average of 5.2
time chartered-in vessels and 10.0 bareboat chartered-in vessels
for the three months ended September 30, 2018, and the Company's
time and bareboat chartered-in fleet consisted of an average of 9.6
time chartered-in vessels and 10.0 bareboat chartered-in vessels
for the three months ended September 30, 2017. The average daily
base rates on the Company's time chartered-in fleet during the
three months ended September 30, 2018 and three months ended
September 30, 2017 were $14,254 per vessel per day and $13,718 per
vessel per day, respectively. The average daily base rates for the
Company's bareboat chartered-in fleet during the three months ended
September 30, 2018 and three months ended September 30, 2017 were
$7,642 per vessel per day and $7,309 per vessel per day,
respectively.
- Depreciation expense for the three
months ended September 30, 2018 increased $8.2 million to $44.6
million, from $36.3 million for the three months ended September
30, 2017. This increase was primarily driven by (i) the delivery of
a total of six vessels under the Company's newbuilding program
during the third and fourth quarters of 2017 and the first quarter
of 2018, and (ii) the delivery of eight LR1 and 15 LR2 vessels
acquired from NPTI in September 2017.
- Financial expenses for the three
months ended September 30, 2018 increased $19.2 million to $50.1
million, from $30.9 million for the three months ended September
30, 2017. The increase in financial expenses was primarily a result
of (i) increased interest expense incurred as a result of the
assumption of $806.4 million of indebtedness as part of the
September 2017 closing of the Company's merger with NPTI, (ii)
increases in LIBOR rates when compared to the third quarter of
2017, and (iii) the write-off or acceleration of $5.9 million of
deferred financing fees during the third quarter of 2018 as a
result of the July 2018 $15.0 million convertible notes exchange,
the refinancing of the existing indebtedness on 29 vessels during
the third quarter of 2018, and the acceleration of the deferred
financing fees related to the existing indebtedness on seven
vessels that was refinanced in October 2018.
|
|
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Statements of Income or
Loss |
| (unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months
endedSeptember 30, |
|
For the nine months
endedSeptember 30, |
| In
thousands of U.S. dollars except per share and share data |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel revenue |
$ |
119,281 |
|
|
$ |
123,119 |
|
|
$ |
417,521 |
|
|
$ |
364,338 |
|
| |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
| |
Vessel operating
costs |
(69,337 |
) |
|
(58,418 |
) |
|
(209,241 |
) |
|
(156,403 |
) |
| |
Voyage expenses |
(470 |
) |
|
(1,276 |
) |
|
(4,842 |
) |
|
(4,720 |
) |
| |
Charterhire |
(13,819 |
) |
|
(18,886 |
) |
|
(48,988 |
) |
|
(57,790 |
) |
| |
Depreciation |
(44,584 |
) |
|
(36,341 |
) |
|
(132,131 |
) |
|
(97,883 |
) |
| |
General and
administrative expenses |
(12,373 |
) |
|
(12,539 |
) |
|
(39,344 |
) |
|
(36,141 |
) |
| |
Gain / (loss) on sale
of vessels |
— |
|
|
7 |
|
|
— |
|
|
(23,345 |
) |
| |
Merger transaction
related costs |
— |
|
|
(2,285 |
) |
|
(272 |
) |
|
(34,815 |
) |
| |
Bargain purchase
gain |
— |
|
|
— |
|
|
— |
|
|
5,417 |
|
| |
Total operating
expenses |
(140,583 |
) |
|
(129,738 |
) |
|
(434,818 |
) |
|
(405,680 |
) |
|
Operating loss |
(21,302 |
) |
|
(6,619 |
) |
|
(17,297 |
) |
|
(41,342 |
) |
|
Other (expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(50,106 |
) |
|
(30,927 |
) |
|
(138,473 |
) |
|
(77,621 |
) |
| |
Loss on exchange of
convertible notes |
(870 |
) |
|
— |
|
|
(17,838 |
) |
|
— |
|
| |
Realized loss on
derivative financial instruments |
— |
|
|
— |
|
|
— |
|
|
(116 |
) |
| |
Financial income |
820 |
|
|
665 |
|
|
1,550 |
|
|
1,154 |
|
| |
Other expenses,
net |
(251 |
) |
|
(67 |
) |
|
(346 |
) |
|
1,195 |
|
| |
Total other expense,
net |
(50,407 |
) |
|
(30,329 |
) |
|
(155,107 |
) |
|
(75,388 |
) |
| Net
loss |
$ |
(71,709 |
) |
|
$ |
(36,948 |
) |
|
$ |
(172,404 |
) |
|
$ |
(116,730 |
) |
| |
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.23 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.61 |
) |
| |
Diluted |
$ |
(0.23 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.61 |
) |
| |
Basic weighted average
shares outstanding |
310,032,639 |
|
|
232,062,058 |
|
|
309,291,442 |
|
|
192,304,650 |
|
| |
Diluted weighted
average shares outstanding (1) |
310,032,639 |
|
|
232,062,058 |
|
|
309,291,442 |
|
|
192,304,650 |
|
| |
| (1) The dilutive effect of (i) unvested shares of
restricted stock and (ii) the potentially dilutive securities
relating to the Company's Convertible Notes due 2019 and
Convertible Notes due 2022 were excluded from the computation of
diluted earnings per share for the three and nine months ended
September 30, 2018 because their effect would have been
anti-dilutive. Weighted average shares under the if-converted
method (which includes the potential dilutive effect of the
unvested shares of restricted stock, and the Convertible Notes due
2019 and the Convertible Notes due 2022) were 378,781,784 and
363,998,811 for the three and nine months ended September 30, 2018,
respectively. |
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Balance
Sheets |
| (unaudited) |
| |
|
|
|
| |
As of |
| In thousands of U.S.
dollars |
September 30, 2018 |
|
December 31, 2017 |
|
Assets |
|
|
|
| Current
assets |
|
|
|
| Cash and cash
equivalents |
$ |
267,826 |
|
|
$ |
186,462 |
|
| Accounts
receivable |
54,862 |
|
|
65,458 |
|
| Prepaid expenses and
other current assets |
21,564 |
|
|
17,720 |
|
| Inventories |
8,355 |
|
|
9,713 |
|
| Total current
assets |
352,607 |
|
|
279,353 |
|
| Non-current
assets |
|
|
|
| Vessels and
drydock |
4,040,438 |
|
|
4,090,094 |
|
| Vessels under
construction |
— |
|
|
55,376 |
|
| Other assets |
63,275 |
|
|
50,684 |
|
| Goodwill |
11,539 |
|
|
11,482 |
|
| Restricted cash |
12,285 |
|
|
11,387 |
|
| Total
non-current assets |
4,127,537 |
|
|
4,219,023 |
|
| Total
assets |
$ |
4,480,144 |
|
|
$ |
4,498,376 |
|
| Current
liabilities |
|
|
|
| Current portion of
long-term debt |
$ |
307,719 |
|
|
$ |
113,036 |
|
| Finance lease
liability |
100,089 |
|
|
50,146 |
|
| Accounts payable |
16,779 |
|
|
13,044 |
|
| Accrued expenses |
22,361 |
|
|
32,838 |
|
| Total current
liabilities |
446,948 |
|
|
209,064 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
1,277,846 |
|
|
1,937,018 |
|
| Finance lease
liability |
1,195,982 |
|
|
666,993 |
|
| Total
non-current liabilities |
2,473,828 |
|
|
2,604,011 |
|
| Total
liabilities |
2,920,776 |
|
|
2,813,075 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and
fully paid-in share capital: |
|
|
|
| Share capital |
3,838 |
|
|
3,766 |
|
| Additional paid-in
capital |
2,329,987 |
|
|
2,283,591 |
|
| Treasury shares |
(443,816 |
) |
|
(443,816 |
) |
| Accumulated deficit
(1) |
(330,641 |
) |
|
(158,240 |
) |
| Total
shareholders' equity |
1,559,368 |
|
|
1,685,301 |
|
| Total
liabilities and shareholders' equity |
$ |
4,480,144 |
|
|
$ |
4,498,376 |
|
| |
| (1) Accumulated deficit reflects the impact of
the adoption of IFRS 15, Revenue from Contracts with Customers,
which is effective for annual periods beginning on January 1, 2018.
The standard may be applied retrospectively to each prior period
presented or retrospectively with the cumulative effect recognized
as of the date of adoption (the "modified retrospective method").
We have applied the modified retrospective method upon the date of
transition. Accordingly, the cumulative effect of the application
of this standard resulted in a $3,888 reduction in the opening
balance of Accumulated deficit on January 1, 2018. |
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Statement of Cash
Flows |
| (unaudited) |
|
|
| |
For the nine months ended September
30, |
| In thousands of U.S.
dollars |
2018 |
|
2017 |
| Operating
activities |
|
|
|
|
|
|
|
| Net loss |
$ |
(172,404 |
) |
|
$ |
(116,730 |
) |
| Loss on sales of
vessels |
— |
|
|
23,345 |
|
| Depreciation |
132,131 |
|
|
97,883 |
|
| Amortization of
restricted stock |
19,403 |
|
|
17,480 |
|
| Amortization of
deferred financing fees |
8,271 |
|
|
10,369 |
|
| Write-off of deferred
financing fees |
12,946 |
|
|
1,497 |
|
| Bargain purchase
gain |
— |
|
|
(5,417 |
) |
| Share-based transaction
costs |
— |
|
|
5,973 |
|
| Accretion of
convertible notes |
9,811 |
|
|
9,109 |
|
| Accretion of fair value
measurement on debt assumed from NPTI |
2,849 |
|
|
510 |
|
| Loss on exchange of
convertible notes |
17,838 |
|
|
— |
|
| |
30,845 |
|
|
44,019 |
|
| Changes in assets and
liabilities: |
|
|
|
| Decrease / (increase)
in inventories |
1,480 |
|
|
(1,761 |
) |
| Decrease in accounts
receivable |
10,556 |
|
|
4,230 |
|
| (Increase) / decrease
in prepaid expenses and other current assets |
(841 |
) |
|
10,842 |
|
| Increase in other
assets |
(1,436 |
) |
|
(18,590 |
) |
| Increase in accounts
payable |
3,459 |
|
|
15,222 |
|
| Decrease in accrued
expenses |
(9,057 |
) |
|
(14,983 |
) |
| |
4,161 |
|
|
(5,040 |
) |
| Net cash inflow
from operating activities |
35,006 |
|
|
38,979 |
|
| Investing
activities |
|
|
|
| Acquisition of vessels
and payments for vessels under construction |
(26,057 |
) |
|
(200,735 |
) |
| Proceeds from disposal
of vessels |
— |
|
|
127,372 |
|
| Net cash paid for the
merger with NPTI |
— |
|
|
(23,062 |
) |
| Drydock, scrubber and
BWTS payments (owned and bareboat-in vessels) |
(12,543 |
) |
|
(2,803 |
) |
| Net cash
outflow from investing activities |
(38,600 |
) |
|
(99,228 |
) |
| Financing
activities |
|
|
|
| Debt repayments |
(733,255 |
) |
|
(409,452 |
) |
| Issuance of debt |
850,958 |
|
|
425,890 |
|
| Debt issuance
costs |
(21,945 |
) |
|
(12,386 |
) |
| (Increase) / decrease
in restricted cash |
(898 |
) |
|
10,762 |
|
| Gross proceeds from
issuance of common stock |
— |
|
|
200,000 |
|
| Equity issuance
costs |
(4 |
) |
|
(11,291 |
) |
| Dividends paid |
(9,898 |
) |
|
(6,298 |
) |
| Redemption of NPTI
Redeemable Preferred Shares |
— |
|
|
(39,495 |
) |
| Net cash inflow
from financing activities |
84,958 |
|
|
157,730 |
|
| Increase in
cash and cash equivalents |
81,364 |
|
|
97,481 |
|
| Cash and cash
equivalents at January 1, |
186,462 |
|
|
99,887 |
|
| Cash and cash
equivalents at September 30, |
$ |
267,826 |
|
|
$ |
197,368 |
|
| Scorpio Tankers Inc. and
Subsidiaries |
| Other operating data for the three and nine
months ended September 30, 2018 and 2017 |
| (unaudited) |
|
|
| |
For the three months endedSeptember
30, |
|
For the nine months endedSeptember
30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Adjusted
EBITDA(1) (in thousands of U.S. dollars) |
|
$ |
29,254 |
|
|
$ |
37,808 |
|
|
$ |
134,163 |
|
|
$ |
127,844 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Time charter equivalent
per day(2) |
|
$ |
10,519 |
|
|
$ |
12,395 |
|
|
$ |
12,058 |
|
|
$ |
13,289 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,333 |
|
|
$ |
6,393 |
|
|
$ |
6,448 |
|
|
$ |
6,379 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
12,532 |
|
|
$ |
13,234 |
|
|
$ |
13,222 |
|
|
$ |
14,768 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,652 |
|
|
$ |
6,469 |
|
|
$ |
6,650 |
|
|
$ |
6,448 |
|
| Average number of owned
or finance leased vessels |
|
38.0 |
|
|
27.9 |
|
|
38.0 |
|
|
23.9 |
|
| Average number of time
chartered-in vessels |
|
1.6 |
|
|
1.6 |
|
|
1.7 |
|
|
1.3 |
|
| |
|
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
8,335 |
|
|
$ |
11,787 |
|
|
$ |
9,843 |
|
|
$ |
11,588 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,232 |
|
|
$ |
6,525 |
|
|
$ |
6,612 |
|
|
$ |
6,399 |
|
| Average number of owned
or finance leased vessels |
|
12.0 |
|
|
6.6 |
|
|
12.0 |
|
|
2.5 |
|
| Average number of time
chartered-in vessels |
|
— |
|
|
— |
|
|
— |
|
|
0.5 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
9,875 |
|
|
$ |
13,041 |
|
|
$ |
12,009 |
|
|
$ |
13,183 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,193 |
|
|
$ |
6,208 |
|
|
$ |
6,319 |
|
|
$ |
6,220 |
|
| Average number of owned
or finance leased vessels |
|
45.0 |
|
|
40.8 |
|
|
44.9 |
|
|
41.4 |
|
| Average number of time
chartered-in vessels |
|
3.6 |
|
|
6.0 |
|
|
5.1 |
|
|
6.9 |
|
| Average number of
bareboat chartered-in vessels |
|
3.0 |
|
|
3.0 |
|
|
3.0 |
|
|
1.8 |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
9,529 |
|
|
$ |
10,062 |
|
|
$ |
11,273 |
|
|
$ |
12,036 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,135 |
|
|
$ |
6,635 |
|
|
$ |
6,282 |
|
|
$ |
6,631 |
|
| Average number of owned
or finance leased vessels |
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
| Average number of time
chartered-in vessels |
|
— |
|
|
2.0 |
|
|
0.7 |
|
|
2.1 |
|
| Average number of
bareboat chartered-in vessels |
|
7.0 |
|
|
7.0 |
|
|
7.0 |
|
|
5.8 |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of owned
or finance leased vessels |
|
109.0 |
|
|
89.3 |
|
|
108.9 |
|
|
81.8 |
|
| Average number of time
chartered-in vessels |
|
5.2 |
|
|
9.6 |
|
|
7.5 |
|
|
10.8 |
|
| Average number of
bareboat chartered-in vessels |
|
10.0 |
|
|
10.0 |
|
|
10.0 |
|
|
7.5 |
|
| |
|
|
|
|
|
|
|
|
|
Drydock |
|
|
|
|
|
|
|
|
| Drydock, scrubber, and
BWTS payments for owned or bareboat-in vessels (in thousands of
U.S. dollars) |
|
$ |
10,407 |
|
|
$ |
4,799 |
|
|
$ |
12,543 |
|
|
$ |
5,156 |
|
| |
| (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 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 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 our owned, finance leased or bareboat chartered-in
vessels, not our time chartered-in vessels. |
| Fleet list as of October 30,
2018 |
|
|
| |
Vessel
Name |
|
YearBuilt |
|
DWT |
|
Iceclass |
|
Employment |
|
Vesseltype |
| |
Owned or finance leased
vessels |
|
|
|
|
|
|
|
|
|
|
| 1 |
|
STI Brixton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
| 2 |
|
STI Comandante |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 3 |
|
STI Pimlico |
|
2014 |
|
38,734 |
|
|
1A |
|
Time
Charter (5) |
|
Handymax |
| 4 |
|
STI Hackney |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 5 |
|
STI Acton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 6 |
|
STI Fulham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 7 |
|
STI Camden |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 8 |
|
STI Battersea |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 9 |
|
STI Wembley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 10 |
|
STI Finchley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 11 |
|
STI Clapham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
| 12 |
|
STI Poplar |
|
2014 |
|
38,734 |
|
|
1A |
|
Time
Charter (5) |
|
Handymax |
| 13 |
|
STI Hammersmith |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 14 |
|
STI Rotherhithe |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
| 15 |
|
STI Amber |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 16 |
|
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 17 |
|
STI Ruby |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 18 |
|
STI Garnet |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 19 |
|
STI Onyx |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 20 |
|
STI Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 21 |
|
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 22 |
|
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 23 |
|
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 24 |
|
STI Texas City |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 25 |
|
STI Meraux |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 26 |
|
STI San Antonio |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 27 |
|
STI Venere |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 28 |
|
STI Virtus |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 29 |
|
STI Aqua |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 30 |
|
STI Dama |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 31 |
|
STI Benicia |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 32 |
|
STI Regina |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 33 |
|
STI St. Charles |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 34 |
|
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 35 |
|
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 36 |
|
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 37 |
|
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 38 |
|
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 39 |
|
STI Memphis |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 40 |
|
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 41 |
|
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 42 |
|
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 43 |
|
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 44 |
|
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 45 |
|
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 46 |
|
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 47 |
|
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 48 |
|
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 49 |
|
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 50 |
|
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 51 |
|
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 52 |
|
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 53 |
|
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 54 |
|
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 55 |
|
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 56 |
|
STI San Telmo |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 57 |
|
STI Donald C
Trauscht |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 58 |
|
STI Esles II |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 59 |
|
STI Jardins |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP
(2) |
|
MR |
| 60 |
|
STI Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 61 |
|
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 62 |
|
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 63 |
|
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 64 |
|
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 65 |
|
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 66 |
|
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 67 |
|
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 68 |
|
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 69 |
|
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 70 |
|
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 71 |
|
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 72 |
|
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 73 |
|
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 74 |
|
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 75 |
|
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 76 |
|
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 77 |
|
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 78 |
|
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 79 |
|
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
Time
Charter (6) |
|
LR2 |
| 80 |
|
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 81 |
|
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 82 |
|
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 83 |
|
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 84 |
|
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 85 |
|
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 86 |
|
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 87 |
|
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 88 |
|
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 89 |
|
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 90 |
|
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 91 |
|
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 92 |
|
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 93 |
|
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 94 |
|
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 95 |
|
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 96 |
|
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 97 |
|
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 98 |
|
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 99 |
|
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 100 |
|
STI Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 101 |
|
STI Goal |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 102 |
|
STI Nautilus |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 103 |
|
STI Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 104 |
|
STI Guide |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 105 |
|
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 106 |
|
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 107 |
|
STI Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 108 |
|
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 109 |
|
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned or finance
leased DWT |
|
|
|
7,883,190 |
|
|
|
|
|
|
|
| |
Vessel
Name |
|
YearBuilt |
|
DWT |
|
Iceclass |
|
Employment |
|
Vessel type |
|
Chartertype |
|
DailyBaseRate |
|
Expiry (7) |
|
| |
Time or bareboat
chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 110 |
|
Silent |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(8) |
| 111 |
|
Single |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(8) |
| 112 |
|
Star I |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(8) |
| 113 |
|
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(8) |
| 114 |
|
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(8) |
| 115 |
|
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(8) |
| 116 |
|
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(8) |
| 117 |
|
Miss Benedetta |
|
2012 |
|
47,499 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
14,000 |
|
|
16-Mar-19 |
(9) |
| 118 |
|
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
18-Apr-25 |
(10) |
| 119 |
|
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
21-Apr-25 |
(10) |
| 120 |
|
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
28-Apr-25 |
(10) |
| 121 |
|
Gan-Trust |
|
2013 |
|
51,561 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,950 |
|
|
06-Jan-19 |
(11) |
| 122 |
|
Densa Crocodile |
|
2015 |
|
105,408 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
|
Time
charter |
|
$ |
14,800 |
|
|
06-Dec-18 |
(12) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total time or bareboat
chartered-in DWT |
|
|
|
619,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
8,502,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| (1) This vessel operates in the Scorpio Handymax
Tanker Pool, or SHTP. SHTP is a Scorpio Group Pool and is operated
by Scorpio Commercial Management S.A.M., or 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 Group 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 Group 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 Group Pool and is operated by SCM.
SLR2P and SCM are related parties to the Company. |
| (5) This vessel is currently time chartered-out
to an unrelated third-party for three years at $18,000 per day.
This time charter is scheduled to expire in January 2019. |
| (6) This vessel is currently time chartered-out
to an unrelated third-party for three years at $28,000 per day.
This time charter is scheduled to expire in February 2019. |
| (7) Redelivery from the charterer is plus or
minus 30 days from the expiry date. |
| (8) This agreement includes a purchase option
which can be exercised through December 31, 2018. If the purchase
option is not exercised, the bareboat-in agreement will expire on
March 31, 2019. |
| (9) In January 2018, we entered into a time charter-in
agreement for one year at $14,000 per day. We have an option to
extend the charter for an additional year at $14,400 per day. |
| (10) 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 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 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. |
| (11) We have an option to extend this charter for
an additional year at $15,750 per day. |
| (12) In May 2018, we entered into a time
charter-in agreement for six months at $14,800 per day. We have an
option to extend the charter for an additional six months at
$15,350 per day. |
| |
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 amount of dividends, if any, depends on
the Company's earnings, financial condition, cash requirements and
availability, fleet renewal and expansion, restrictions in the loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2017 and
2018 were as follows:
| |
|
|
Date paid |
Dividends pershare |
| March
2017 |
$0.010 |
| June
2017 |
$0.010 |
|
September 2017 |
$0.010 |
|
December 2017 |
$0.010 |
| March
2018 |
$0.010 |
| June
2018 |
$0.010 |
|
September 2018 |
$0.010 |
|
|
|
On October 30, 2018, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about December 13, 2018 to all shareholders of record
as of December 5, 2018 (the record date). As of October 30,
2018, there were 515,893,564 shares outstanding.
Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a 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 (i)
Convertible Notes due 2019, which were issued in June 2014, (ii)
Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in
May 2014, (iii) Unsecured Senior Notes Due 2019 (NYSE: SBBC), which
were issued in March 2017, and (iv) Convertible Notes due 2022
which were issued in May and July 2018.
No securities were repurchased under this
program during the period commencing January 1, 2018 through and
ending on the date of this press release.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns or finance leases 109 product tankers (38 LR2
tankers, 12 LR1 tankers, 45 MR tankers, 14 Handymax tankers) with
an average age of 3.2 years and time or bareboat charters-in 13
product tankers (one LR2 tanker, five MR tankers and seven Handymax
tankers). 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 (i.e. "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
time charter equivalent 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 time charter
equivalent 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 time charter equivalent revenue, adjusted net income
or loss with the 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.
Time charter equivalent revenue is reconciled
above in the section entitled 'Explanation of Variances on the
Third Quarter of 2018 Financial Results Compared to the Third
Quarter of 2017'.
|
|
|
Reconciliation of Net Loss to Adjusted Net
Loss |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended September 30,
2018 |
| In thousands of U.S.
dollars except per share data |
|
Amount |
|
Per sharebasic |
|
Per sharediluted |
| Net
loss |
|
$ |
(71,709 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred
financing fees write-off |
|
|
5,911 |
|
|
|
0.02 |
|
|
|
0.02 |
|
| Loss on
exchange of convertible notes |
|
|
870 |
|
|
|
0.00 |
|
|
|
0.00 |
|
| Adjusted
net loss |
|
$ |
(64,928 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.21 |
) |
| |
|
For the three months ended September 30,
2017 |
| In thousands of U.S.
dollars except per share data |
|
Amount |
|
Per sharebasic |
|
Per sharediluted |
| Net loss |
|
$ |
(36,948 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.16 |
) |
|
Adjustments: |
|
|
|
|
|
|
| Merger
transaction related costs |
|
2,285 |
|
|
0.01 |
|
|
0.01 |
|
| Deferred
financing fees write-off |
|
630 |
|
|
— |
|
|
— |
|
| Gain on
sale of vessel |
|
(7 |
) |
|
— |
|
|
— |
|
| Adjusted
net loss |
|
$ |
(34,040 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
| |
|
For the nine months ended September 30,
2018 |
| In thousands of U.S.
dollars except per share data |
|
Amount |
|
Per sharebasic |
|
Per sharediluted |
| Net
loss |
|
$ |
(172,404 |
) |
|
$ |
(0.56 |
) |
|
(0.56 |
) |
|
Adjustments: |
|
|
|
|
|
|
| Merger
transaction related costs |
|
272 |
|
|
— |
|
|
— |
|
| Deferred
financing fees write-off |
|
12,946 |
|
|
0.04 |
|
|
0.04 |
|
| Loss on
exchange of convertible notes |
|
17,838 |
|
|
0.06 |
|
|
0.06 |
|
| Adjusted net loss |
|
$ |
(141,348 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.46 |
) |
| |
|
For the nine months ended September 30,
2017 |
| In thousands of U.S.
dollars except per share data |
|
Amount |
|
Per sharebasic |
|
Per sharediluted |
| Net loss |
|
$ |
(116,730 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.61 |
) |
|
Adjustments: |
|
|
|
|
|
|
| Deferred
financing fees write-off |
|
1,497 |
|
|
0.01 |
|
|
0.01 |
|
| Merger
transaction related costs |
|
34,815 |
|
|
0.18 |
|
|
0.18 |
|
| Bargain
purchase gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
| Loss /
(gain) on sales of vessels |
|
23,345 |
|
|
0.12 |
|
|
0.12 |
|
| Adjusted
net loss |
|
$ |
(62,490 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.33 |
) |
|
Reconciliation of Net Loss to Adjusted EBITDA |
|
|
| |
|
For the three months endedSeptember
30, |
|
For the nine months endedSeptember
30, |
| In thousands of U.S.
dollars |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net loss |
|
$ |
(71,709 |
) |
|
$ |
(36,948 |
) |
|
$ |
(172,404 |
) |
|
$ |
(116,730 |
) |
| Financial
expenses |
|
50,106 |
|
|
30,927 |
|
|
138,473 |
|
|
77,621 |
|
| Financial
income |
|
(820 |
) |
|
(665 |
) |
|
(1,550 |
) |
|
(1,154 |
) |
|
Depreciation |
|
44,584 |
|
|
36,341 |
|
|
132,131 |
|
|
97,883 |
|
| Merger
transaction related costs |
|
— |
|
|
2,285 |
|
|
272 |
|
|
34,815 |
|
| Bargain
purchase gain |
|
— |
|
|
— |
|
|
— |
|
|
(5,417 |
) |
|
Amortization of restricted stock |
|
6,223 |
|
|
5,875 |
|
|
19,403 |
|
|
17,481 |
|
| (Gain) /
Loss on sale of vessels |
|
— |
|
|
(7 |
) |
|
— |
|
|
23,345 |
|
| Loss on
exchange of convertible notes |
|
870 |
|
|
— |
|
|
17,838 |
|
|
— |
|
| Adjusted
EBITDA |
|
$ |
29,254 |
|
|
$ |
37,808 |
|
|
$ |
134,163 |
|
|
$ |
127,844 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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
Scorpio Tankers (NYSE:SBNA)
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