Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers", or the
"Company") today reported its results for the three and nine months
ended September 30, 2019. 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
September 30, 2019 and 2018
For the three months ended September 30, 2019,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $44.8 million, or $0.92 basic and diluted loss per
share, which excludes from the net loss a $0.4 million,
or $0.01 per basic and diluted share, write-off of
deferred financing fees. For the three months ended September 30,
2019, the Company had a net loss of $45.3 million, or $0.93 basic
and diluted loss per share.
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 $2.09 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 due 2019, 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 $0.22 per basic and
diluted share. For the three months ended September 30, 2018, the
Company had a net loss of $71.7 million,
or $2.31 basic and diluted loss per share.
Results for the nine months ended
September 30, 2019 and 2018
For the nine months ended September 30, 2019,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $59.8 million, or $1.24 basic and diluted loss per
share, which excludes from the net loss a $0.7 million,
or $0.01 per basic and diluted share, write-off of
deferred financing fees. For the nine months ended September 30,
2019, the Company had a net loss of $60.5 million, or $1.25 basic
and diluted loss per share.
For the nine months ended September 30, 2018,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $141.3 million, or $4.57 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 due
2019, (ii) a $12.9 million write-off of deferred
financing fees, and (iii) $0.3 million of transaction
costs related to the merger with Navig8 Product Tankers Inc. The
adjustments resulted in an aggregate reduction of the Company's net
loss by $31.1 million, or $1.00 per basic and
diluted share. For the nine months ended September 30, 2018, the
Company had a net loss of $172.4 million,
or $5.57 basic and diluted loss per share.
Declaration of Dividend
On November 6, 2019, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about December 13, 2019 to all shareholders of
record as of November 25, 2019 (the record date). As of
November 6, 2019, there were 58,142,400 common shares of the
Company outstanding.
Summary of Other Recent and Third
Quarter Significant Events
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• |
On September 26, 2019, the Company acquired subsidiaries of
Trafigura Maritime Logistics Pte. Ltd. (“Trafigura”), which have
leasehold interests in 19 product tankers under bareboat charter
agreements with an international financial institution for
aggregate consideration of $803 million. Of the 19 vessels,
15 (consisting of 11 MRs and four LR2s) were delivered during 2019
and four MRs are currently under construction. This
acquisition is referred to as the "Trafigura Transaction". |
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• |
On September 26, 2019, the Company closed on the private
placements of its common stock at $29.00 per share with
Trafigura for $35 million and with Scorpio Services
Holding Limited, a related party, for $15 million, for an
aggregate of $50 million and 1,724,137 common shares. |
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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 2019 as of the date hereof (See footnotes to 'Other
operating data' table below for the definition of daily TCE
revenue): |
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• |
For the LR2s in the pool: an average of approximately $26,000 per
day for 47% of the days. |
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• |
For the LR1s in the pool: an average of approximately $17,000 per
day for 46% of the days. |
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• |
For the MRs in the pool: an average of approximately $17,000 per
day for 45% of the days. |
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• |
For the ice-class 1A Handymaxes in the pool: an average of
approximately $15,000 per day for 42% of the days. |
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Below is a summary of the average daily TCE revenue earned on the
Company's vessels during the third quarter of 2019: |
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• |
For the LR2s in the pool: an average of $15,960 per revenue
day. |
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For the LR1s in the pool: an average of $13,126 per revenue
day. |
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For the MRs in the pool: an average of $13,640 per revenue
day. |
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For the ice-class 1A Handymaxes in the pool: an average of $9,974
per revenue day. |
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As of the date of this press release, the Company has received
commitments for nine different facilities to partially finance the
purchase and installation of exhaust gas cleaning systems
("scrubbers") on certain of the Company's vessels. These
commitments are expected to increase the Company’s liquidity by
approximately $120.2 million. Additionally, the Company is in
discussions with a different group of financial institutions to
finance the purchase of scrubbers which, if consummated, is
expected to increase the Company’s liquidity by an additional $57.5
million. Subject to reaching agreement on satisfactory terms
relating to the additional scrubber financing, all of these
agreements are expected to be signed in the next few months, and
the drawdowns are expected to occur as the scrubbers are installed
throughout the remainder of 2019 and 2020. |
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In September 2019, the Company paid a quarterly cash dividend with
respect to the second quarter of 2019 on the Company's common stock
of $0.10 per common share. |
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In July 2019, the Company’s Convertible Notes due
2019 matured and the outstanding balance of $142.7 million was
fully repaid in cash upon maturity. |
Acquisition of the leasehold interests
in 19 product tankers
On September 26, 2019, the Company acquired
subsidiaries of Trafigura, which have leasehold interests in 19
product tankers under bareboat charter agreements with subsidiaries
of an international financial institution for aggregate
consideration of $803 million. Of the 19 vessels, 15
(consisting of 11 MRs and four LR2s) were delivered during 2019 and
four MRs are currently under construction. The consideration
exchanged consisted of:
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• |
For the delivered vessels, the assumption of the obligations under
the bareboat charter agreements of $531.5 million and the issuance
of 3,981,619 shares of common stock at $29.00 per share
to a nominee of Trafigura with an aggregate market value
of $115.5 million. |
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For the four vessels under construction, the assumption of the
commitments on the bareboat charter agreements of $138.9 million
and the issuance 591,254 shares of common stock at $29.00 per share
to a nominee of Trafigura with an aggregate market value of $17.1
million. These vessels under construction are expected to be
delivered during 2020. |
Each bareboat charter agreement has a term of
eight years from the delivery date of the respective vessel, and
the Company has purchase options beginning after the first year of
each agreement. Each agreement bears interest at LIBOR plus a
margin of 3.50% per annum and will be repaid in equal monthly
installments of approximately $0.2 million per month per
vessel. Additionally, an aggregate prepayment of $18 million
($0.8 million for each MR and $1.5 million for each LR2) will be
made in equal monthly installments over the first 12 months of each
bareboat charter agreement.
The Trafigura transaction was accounted for
as an asset acquisition, with the acquisition of the leasehold
interests accounted for under IFRS 16, Leases, which was effective
from January 1, 2019. Accordingly, the Company recorded lease
liabilities and corresponding right of use assets for the delivered
vessels upon the closing date of the Trafigura Transaction.
The right of use assets were measured based on (i) the present
value of the minimum lease payments under each lease (which assumes
the exercise of the purchase options at expiration), (ii) the value
of the equity issued for each lease (as an initial direct cost) and
(iii) other initial direct costs as part of the Trafigura
Transaction.
The lease liabilities and corresponding right of
use assets for the four undelivered vessels will be recorded upon
the commencement date of each lease. The value of the
Company's common shares issued for the leasehold interests on the
four undelivered vessels was recorded within 'Other long-term
assets' on the balance sheet at the closing date of the Trafigura
Transaction and will be reclassified to 'Right of use assets' upon
the commencement date of each lease.
$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 Unsecured
Senior Notes due 2020 (NYSE: SBNA), which were issued in May 2014,
and Convertible Notes due 2022, which were issued in May and July
2018.
No securities were repurchased under this
program during the third quarter of 2019 and through the date of
this press release.
As of the date hereof, the Company has the
authority to purchase up to an additional $121.6 million of its
securities under its Securities Repurchase Program. The Company may
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 2022, which were issued in May and
July 2018, were converted into common shares at the beginning of
each period and the interest and non-cash amortization expense
associated with these notes of $3.7 million and $10.9 million
during the three and nine months ended September 30, 2019,
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, 2019, the Company's basic weighted average number of shares
were 48,529,024 and 48,251,159, respectively. For the three
and nine months ended September 30, 2019, the Company's diluted
weighted average number of shares were 50,169,591 and 49,735,327
respectively, excluding the impact of the Convertible Notes due
2022, and 55,394,037 and 55,890,573, respectively, under the
if-converted method.
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, 2019 as the Company
incurred net losses during those periods.
The Company’s Convertible Notes due 2019 matured
in July 2019, and the outstanding balance of $142.7 million was
fully repaid in cash upon maturity. As of the date hereof,
the Company's trading stock price is below the conversion price of
the Convertible Notes due 2022.
Conference Call
The Company has scheduled a conference call on
November 7, 2019 at 8:30 AM Eastern Standard Time and 2:30 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: 3557977
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/warnvpgy
Current Liquidity
As of November 6, 2019, the Company
had $200.8 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 third quarter of 2019
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Consisting of (1): |
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|
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|
Ballast water |
|
Aggregate costs |
Aggregate off- |
| |
Total number |
|
treatment |
|
(in millions of |
hire days in Q3 |
|
|
of vessels |
Drydock |
systems |
Scrubbers |
USD) |
2019 |
| Completed
in third quarter of 2019 |
|
|
|
|
|
LR2 |
4 |
|
1 |
|
1 |
|
4 |
|
$ |
18.2 |
|
210 |
|
| LR1 |
2 |
|
— |
|
— |
|
2 |
|
7.2 |
|
130 |
|
| MR |
6 |
|
6 |
|
5 |
|
6 |
|
25.7 |
|
322 |
|
| Handymax |
6 |
|
6 |
|
6 |
|
— |
|
11.4 |
|
123 |
|
| |
18 |
|
13 |
|
12 |
|
12 |
|
$ |
62.5 |
|
785 |
|
| |
|
|
|
|
|
|
| In
progress as of September 30, 2019 (2) |
|
|
|
|
| LR2 |
8 |
|
4 |
|
3 |
|
8 |
|
$ |
36.4 |
|
215 |
|
| LR1 |
1 |
|
— |
|
— |
|
1 |
|
3.6 |
|
52 |
|
| MR |
2 |
|
2 |
|
1 |
|
2 |
|
8.6 |
|
30 |
|
| Handymax |
2 |
|
2 |
|
2 |
|
— |
|
3.8 |
|
33 |
|
| |
13 |
|
8 |
|
6 |
|
11 |
|
$ |
52.4 |
|
330 |
|
|
(1) |
Certain vessels were drydocked and had ballast water treatment
systems and/or scrubbers installed simultaneously. |
|
(2) |
Total costs and off-hire days are estimated for vessels currently
being drydocked, or having ballast water treatment systems and/or
scrubbers installed. |
Set forth below are the estimated expected
payments for the Company's drydocks, ballast water treatment system
installations, and scrubber installations through 2020 (which also
include actual payments made during the fourth quarter of 2019
through the date of this press release):
| |
In millions of U.S.
dollars |
As of November 6, 2019 (1) |
|
|
|
Q4 2019 - payments made through November 6, 2019 |
$ |
13.2 |
|
|
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Q4 2019 - remaining
payments |
43.0 |
|
|
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Q1 2020 |
58.7 |
|
|
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Q2 2020 |
46.9 |
|
|
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Q3 2020 |
33.7 |
|
|
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Q4 2020 |
16.7 |
|
|
|
(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. |
Set forth below are the expected, estimated number of ships and
estimated off-hire days for the Company's drydocks, ballast water
treatment system installations, and scrubber
installations (2):
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Q4 2019 |
|
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Ships Scheduled for: |
Off-hire |
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|
Ballast Water |
|
|
| |
Drydock |
Treatment Systems |
Scrubbers |
Days |
|
LR2 |
5 |
|
4 |
|
13 |
|
346 |
|
|
LR1 |
— |
|
— |
|
2 |
|
39 |
|
|
MR |
8 |
|
5 |
|
10 |
|
340 |
|
|
Handymax |
5 |
|
5 |
|
— |
|
100 |
|
| |
|
|
|
|
| Total Q4
2019 |
18 |
|
14 |
|
25 |
|
825 |
|
| |
|
|
|
|
| |
Q1 2020 |
|
| |
Ships Scheduled for: |
Off-hire |
| |
|
Ballast Water |
|
|
| |
Drydock |
Treatment Systems |
Scrubbers |
Days |
|
LR2 |
6 |
|
4 |
|
9 |
|
314 |
|
|
LR1 |
— |
|
— |
|
3 |
|
105 |
|
|
MR |
7 |
|
7 |
|
11 |
|
385 |
|
|
Handymax |
2 |
|
2 |
|
— |
|
40 |
|
| |
|
|
|
|
| Total Q1
2020 |
15 |
|
13 |
|
23 |
|
844 |
|
| |
|
|
|
|
| |
Q2 2020 |
|
| |
Ships Scheduled for: |
Off-hire |
| |
|
Ballast Water |
|
|
| |
Drydock |
Treatment Systems |
Scrubbers |
Days |
|
LR2 |
5 |
|
1 |
|
7 |
|
260 |
|
|
LR1 |
— |
|
— |
|
— |
|
— |
|
|
MR |
3 |
|
3 |
|
8 |
|
275 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total Q2
2020 |
8 |
|
4 |
|
15 |
|
535 |
|
| |
|
|
|
|
| |
Q3 2020 |
|
| |
Ships Scheduled for: |
Off-hire |
| |
|
Ballast Water |
|
|
| |
Drydock |
Treatment Systems |
Scrubbers |
Days |
|
LR2 |
2 |
|
— |
|
2 |
|
95 |
|
|
LR1 |
5 |
|
— |
|
5 |
|
175 |
|
|
MR |
— |
|
— |
|
7 |
|
245 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total Q3
2020 |
7 |
|
— |
|
14 |
|
515 |
|
| |
|
|
|
|
| |
Q4 2020 |
|
| |
Ships Scheduled for: |
Off-hire |
| |
|
Ballast Water |
|
|
| |
Drydock |
Treatment Systems |
Scrubbers |
Days |
|
LR2 |
— |
|
— |
|
— |
|
— |
|
|
LR1 |
— |
|
— |
|
— |
|
— |
|
|
MR |
— |
|
— |
|
4 |
|
145 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
| |
|
|
|
|
| Total Q4
2020 |
— |
|
— |
|
4 |
|
145 |
|
|
(2) |
The number of vessels in these tables 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. |
Debt
Set forth below is a summary of the Company’s
outstanding indebtedness as of the dates presented:
| |
|
|
Drawdowns |
Outstanding |
|
Outstanding |
| |
|
Outstanding |
and |
Principal as of |
|
Principal as of |
| |
|
Principal as of |
(repayments), |
September 30, |
|
November 6, |
| |
In thousands of U.S.
dollars |
June 30, 2019 |
net |
2019 |
Repayments |
2019 |
|
1 |
KEXIM Credit Facility |
$ |
282,475 |
|
$ |
(16,825 |
) |
$ |
265,650 |
|
$ |
— |
|
$ |
265,650 |
|
| 2 |
ABN AMRO Credit Facility |
96,230 |
|
(2,139 |
) |
94,091 |
|
(1,602 |
) |
92,489 |
|
| 3 |
ING Credit Facility |
137,808 |
|
(3,184 |
) |
134,624 |
|
(1,071 |
) |
133,553 |
|
| 4 |
$35.7 Million Term Loan
Facility |
33,234 |
|
(808 |
) |
32,426 |
|
(808 |
) |
31,618 |
|
| 5 |
2017 Credit Facility |
138,133 |
|
(3,316 |
) |
134,817 |
|
— |
|
134,817 |
|
| 6 |
Credit Agricole Credit
Facility |
95,011 |
|
(2,142 |
) |
92,869 |
|
— |
|
92,869 |
|
| 7 |
ABN AMRO/K-Sure Credit
Facility |
47,604 |
|
(963 |
) |
46,641 |
|
— |
|
46,641 |
|
| 8 |
Citi/K-Sure Credit
Facility |
99,442 |
|
(2,104 |
) |
97,338 |
|
— |
|
97,338 |
|
| 9 |
ABN AMRO/SEB Credit
Facility |
109,075 |
|
(2,875 |
) |
106,200 |
|
— |
|
106,200 |
|
| 10 |
Ocean Yield Lease
Financing |
155,015 |
|
(2,711 |
) |
152,304 |
|
(929 |
) |
151,375 |
|
| 11 |
CMBFL Lease Financing |
59,517 |
|
(1,227 |
) |
58,290 |
|
— |
|
58,290 |
|
| 12 |
BCFL Lease Financing
(LR2s) |
97,052 |
|
(1,926 |
) |
95,126 |
|
(654 |
) |
94,472 |
|
| 13 |
CSSC Lease Financing |
237,872 |
|
(4,327 |
) |
233,545 |
|
(1,442 |
) |
232,103 |
|
| 14 |
BCFL Lease Financing
(MRs) |
93,423 |
|
(2,809 |
) |
90,614 |
|
(915 |
) |
89,699 |
|
| 15 |
2018 CMB Lease Financing |
131,485 |
|
(2,529 |
) |
128,956 |
|
(836 |
) |
128,120 |
|
| 16 |
$116.0 Million Lease
Financing |
109,431 |
|
(1,700 |
) |
107,731 |
|
(548 |
) |
107,183 |
|
| 17 |
AVIC International Lease
Financing |
133,207 |
|
(2,948 |
) |
130,259 |
|
— |
|
130,259 |
|
| 18 |
China Huarong Shipping Lease
Financing |
130,500 |
|
(3,375 |
) |
127,125 |
|
— |
|
127,125 |
|
| 19 |
$157.5 Million Lease
Financing |
145,014 |
|
(3,536 |
) |
141,478 |
|
— |
|
141,478 |
|
| 20 |
COSCO Lease
Financing |
80,300 |
|
(1,925 |
) |
78,375 |
|
— |
|
78,375 |
|
| 21 |
IFRS 16 - Leases - 3 MRs |
47,663 |
|
(1,736 |
) |
45,927 |
|
(567 |
) |
45,360 |
|
| 22 |
IFRS 16 - Leases - 7
Handymax |
20,410 |
|
(3,789 |
) |
16,621 |
|
(1,306 |
) |
15,315 |
|
| 23 |
IFRS 16 - Leases - acquired
from Trafigura |
— |
|
525,737 |
|
525,737 |
|
(4,241 |
) |
521,496 |
|
| 24 |
2020 Senior Unsecured
Notes |
53,750 |
|
— |
|
53,750 |
|
— |
|
53,750 |
|
| 25 |
Convertible Notes due
2019 |
142,708 |
|
(142,708 |
) |
— |
|
— |
|
— |
|
| 26 |
Convertible Notes due
2022 |
203,500 |
|
— |
|
203,500 |
|
— |
|
203,500 |
|
| |
|
$ |
2,879,859 |
|
$ |
314,135 |
|
$ |
3,193,994 |
|
$ |
(14,919 |
) |
$ |
3,179,075 |
|
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of September 30, 2019, which includes
principal amounts due under lease financing arrangements and lease
liabilities under IFRS 16 (which also include actual payments made
during the fourth quarter of 2019 through the date of this press
release):
| |
|
In millions of U.S. dollars |
|
|
|
Q4 2019 - principal payments made through November 6, 2019 (1) |
$ |
14.9 |
|
|
| |
Q4 2019 - remaining principal
payments |
50.0 |
|
|
| |
Q1 2020 |
81.9 |
|
|
| |
Q2 2020 (1) |
117.4 |
|
|
| |
Q3 2020 (2) |
164.6 |
|
|
| |
Q4 2020 |
57.6 |
|
|
| |
2021 and thereafter |
2,707.6 |
|
|
| |
|
$ |
3,194.0 |
|
|
| |
(1) |
Repayments include $53.8 million due upon the maturity of the
Company's Senior Unsecured Notes due 2020. |
|
| |
(2) |
Repayments include $87.7 million due upon the maturity of the
Company's ABN AMRO Credit Facility. |
|
Explanation of Variances on the Third
Quarter of 2019 Financial Results Compared to the Third Quarter of
2018
For the three months ended September 30, 2019,
the Company recorded a net loss of $45.3 million compared to a net
loss of $71.7 million for the three months ended September 30,
2018. 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 September 30, 2019 and 2018: |
| |
|
For the three months ended September 30, |
| In thousands of
U.S. dollars |
2019 |
|
2018 |
|
|
Vessel revenue |
$ |
136,067 |
|
|
$ |
119,281 |
|
| |
Voyage expenses |
(2,055 |
) |
|
(470 |
) |
| |
TCE
revenue |
$ |
134,012 |
|
|
$ |
118,811 |
|
|
|
• |
TCE revenue for the three months ended September 30, 2019 increased
by $15.2 million to $134.0 million, from $118.8 million for the
three months ended September 30, 2018. The increase was the result
of quarter over quarter improvements in TCE revenue per day across
all of the Company's operating segments. Overall average TCE
revenue per day increased to $13,560 per day during the three
months ended September 30, 2019, from $10,519 per day during the
three months ended September 30, 2018. While the third
quarter of 2019 improved versus the third quarter of 2018, it
nevertheless reflected a deterioration from the previous two
quarters, with TCE revenue and TCE revenue per day decreasing
across all segments. This deterioration was the result of
seasonal weakness along with an extended period of refinery
maintenance as refiners transitioned towards the January 1, 2020
implementation date of the International Maritime Organization's
low sulfur emissions standards. |
|
|
|
|
|
|
|
The increase in TCE revenue per day during the third quarter of
2019 as compared to the third quarter of 2018 was partially offset
by a decrease in the number of vessels in the Company's fleet to an
average of 119.7 operating vessels during the three months ended
September 30, 2019 from an average of 124.2 operating vessels
during the three months ended September 30, 2018, which was the
result of the redelivery of time chartered-in vessels throughout
2018 and in the first quarter of 2019. The decrease in the
number of operating vessels was partially offset by the acquisition
of the 15 delivered vessels from Trafigura as part of the Trafigura
Transaction. |
|
|
|
|
|
|
• |
Vessel operating costs for the three months ended September 30,
2019 increased by $1.6 million to $71.0 million, from $69.3 million
for the three months ended September 30, 2018. Vessel
operating costs per day increased slightly to $6,449 per day for
the three months ended September 30, 2019 from $6,333 per day for
the three months ended September 30, 2018. This increase was
the result of increased costs in the Company's Handymax operating
segment resulting from the transition of technical managers on
certain of these vessels. |
|
|
|
|
|
|
• |
Charterhire expense for the three months ended September 30, 2019
decreased by $13.8 million to $0.0 million, from $13.8 million for
the three months ended September 30, 2018. This decrease was
the result of (i) a decrease in the number of time chartered-in
vessels when comparing the three months ended September 30, 2019 to
the three months ended September 30, 2018, and (ii) the
implementation of IFRS 16 - Leases beginning on January, 1,
2019. The Company's time and bareboat chartered-in fleet
consisted of 10 bareboat chartered-in vessels for the three months
ended September 30, 2019, and the Company's time and bareboat
chartered-in fleet consisted of an average of 5.2 time chartered-in
vessels and 10 bareboat chartered-in vessels for the three months
ended September 30, 2018. As of September 30, 2019, we
had 25 bareboat chartered-in vessels which are being accounted for
under IFRS 16 as right of use assets and related lease liabilities.
Under IFRS 16, there is no charterhire expense for these vessels as
the right of use assets are depreciated on a straight-line basis
(through depreciation expense) over the lease term and the lease
liability is amortized over that same period (with a portion of
each payment allocated to principal and a portion allocated to
interest expense). |
|
|
|
|
|
|
• |
Depreciation expense - owned or finance leased vessels for the
three months ended September 30, 2019 remained consistent,
increasing slightly by $0.8 million to $45.4 million, from $44.6
million for the three months ended September 30, 2018. Depreciation
expense in future periods is expected to increase as the Company
installs ballast water treatment systems and/or scrubbers on
certain of its vessels in the remainder of 2019 and 2020. The
Company expects to depreciate the majority of the cost of this
equipment over each vessel's remaining useful life. |
|
|
|
|
|
|
• |
Depreciation expense - right of use assets for the three months
ended September 30, 2019, was $6.3 million. Depreciation
expense - right of use assets reflects the straight-line
depreciation expense recorded during the three months ended
September 30, 2019, as a result of the Company's transition to IFRS
16 - Leases on January 1, 2019. Right of use asset
depreciation is approximately $0.2 million per vessel per month for
the 10 vessels previously bareboat chartered-in prior to the
Trafigura Transaction, and $0.2 million per MR per month and $0.3
million per LR2 per month for the 15 vessels (11 MRs and 4 LR2s)
acquired as part of the Trafigura Transaction. |
|
|
|
|
|
|
• |
General and administrative expenses for the three months ended
September 30, 2019, increased by $2.9 million to $15.3 million,
from $12.4 million for the three months ended September 30,
2018. This increase was primarily driven by compensation
expenses, including an increase in restricted stock amortization.
General and administrative expenses in future periods are expected
to reflect a similar run-rate to that which was incurred in the
third quarter of 2019. |
|
|
|
|
|
|
• |
Financial expenses for the three months ended September 30, 2019,
decreased by $7.2 million to $42.9 million, from $50.1 million for
the three months ended September 30, 2018. This decrease was
primarily driven by a reduction in the write-off of deferred
financing fees during each period as the Company entered into a
series of refinancing initiatives during the three months ended
September 30, 2018 which resulted in the write-off of $5.9 million
of deferred financing fees during that period, which compares to
the write-off of $0.4 million of deferred financing fees during the
three months ended September 30, 2019. Additionally, LIBOR
rates decreased for the three months ended September 30, 2019, as
compared to the three months ended September 30, 2018, and there
was $0.7 million of capitalized interest expense during the three
months ended September 30, 2019 as a result of the Company's
scrubber and ballast water treatment system investments. No
interest was capitalized during the three months ended September
30, 2018. These decreases were partially offset by the
implementation of IFRS 16 - Leases, on January 1, 2019, which
resulted in an additional $1.4 million of interest expense during
the three months ended September 30, 2019. |
|
|
|
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30, |
|
September 30, |
| In thousands of
U.S. dollars except per share and share data |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
136,067 |
|
|
$ |
119,281 |
|
|
$ |
482,703 |
|
|
$ |
417,521 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
| |
Vessel operating costs |
(70,967 |
) |
|
(69,337 |
) |
|
(209,119 |
) |
|
(209,241 |
) |
| |
Voyage expenses |
(2,055 |
) |
|
(470 |
) |
|
(3,678 |
) |
|
(4,842 |
) |
| |
Charterhire |
— |
|
|
(13,819 |
) |
|
(4,399 |
) |
|
(48,988 |
) |
| |
Depreciation - owned or
finance leased vessels |
(45,392 |
) |
|
(44,584 |
) |
|
(133,575 |
) |
|
(132,131 |
) |
| |
Depreciation - right of use
assets |
(6,250 |
) |
|
— |
|
|
(14,280 |
) |
|
— |
|
| |
General and administrative
expenses |
(15,296 |
) |
|
(12,373 |
) |
|
(46,536 |
) |
|
(39,344 |
) |
| |
Merger transaction related
costs |
— |
|
|
— |
|
|
— |
|
|
(272 |
) |
| |
Total operating expenses |
(139,960 |
) |
|
(140,583 |
) |
|
(411,587 |
) |
|
(434,818 |
) |
| Operating
(loss) / income |
(3,893 |
) |
|
(21,302 |
) |
|
71,116 |
|
|
(17,297 |
) |
| Other
(expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(42,865 |
) |
|
(50,106 |
) |
|
(138,948 |
) |
|
(138,473 |
) |
| |
Loss on exchange of
Convertible Notes |
— |
|
|
(870 |
) |
|
— |
|
|
(17,838 |
) |
| |
Financial income |
1,582 |
|
|
820 |
|
|
7,426 |
|
|
1,550 |
|
| |
Other expenses, net |
(113 |
) |
|
(251 |
) |
|
(126 |
) |
|
(346 |
) |
| |
Total other expense, net |
(41,396 |
) |
|
(50,407 |
) |
|
(131,648 |
) |
|
(155,107 |
) |
| Net
loss |
$ |
(45,289 |
) |
|
$ |
(71,709 |
) |
|
$ |
(60,532 |
) |
|
$ |
(172,404 |
) |
| |
|
|
|
|
|
|
|
|
| Loss per
share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.93 |
) |
|
$ |
(2.31 |
) |
|
$ |
(1.25 |
) |
|
$ |
(5.57 |
) |
| |
Diluted |
$ |
(0.93 |
) |
|
$ |
(2.31 |
) |
|
$ |
(1.25 |
) |
|
$ |
(5.57 |
) |
| |
Basic weighted average shares
outstanding |
48,529,024 |
|
|
31,003,264 |
|
|
48,251,159 |
|
|
30,929,144 |
|
| |
Diluted weighted average
shares outstanding (1) |
48,529,024 |
|
|
31,003,264 |
|
|
48,251,159 |
|
|
30,929,144 |
|
|
(1) |
The dilutive effects of (i) unvested shares of restricted stock and
(ii) the potentially dilutive securities relating to the Company's
Convertible Notes due 2022 were excluded from the computation of
diluted earnings per share for the three and nine months ended
September 30, 2019 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, the Convertible Notes due
2019, and the Convertible Notes due 2022) were 55,394,037 and
55,890,573 for the three and nine months ended September 30, 2019,
respectively. |
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In thousands of U.S.
dollars |
September 30, 2019 |
|
December 31, 2018 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
244,480 |
|
|
$ |
593,652 |
|
| Accounts receivable |
61,657 |
|
|
69,718 |
|
| Prepaid expenses and other
current assets |
16,693 |
|
|
15,671 |
|
| Inventories |
9,531 |
|
|
8,300 |
|
| Total current
assets |
332,361 |
|
|
687,341 |
|
| Non-current
assets |
|
|
|
| Vessels and drydock |
3,975,177 |
|
|
3,997,789 |
|
| Right of use assets |
710,684 |
|
|
— |
|
| Other assets |
128,071 |
|
|
75,210 |
|
| Goodwill |
11,539 |
|
|
11,539 |
|
| Restricted cash |
12,293 |
|
|
12,285 |
|
| Total non-current
assets |
4,837,764 |
|
|
4,096,823 |
|
| Total
assets |
$ |
5,170,125 |
|
|
$ |
4,784,164 |
|
| Current
liabilities |
|
|
|
| Current portion of long-term
debt |
$ |
237,882 |
|
|
$ |
297,934 |
|
| Finance lease liability |
116,212 |
|
|
114,429 |
|
| Lease liability - IFRS 16 |
69,105 |
|
|
— |
|
| Accounts payable |
24,771 |
|
|
11,865 |
|
| Accrued expenses |
39,641 |
|
|
22,972 |
|
| Total current
liabilities |
487,611 |
|
|
447,200 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
980,118 |
|
|
1,192,000 |
|
| Finance lease liability |
1,219,163 |
|
|
1,305,952 |
|
| Lease liability - IFRS 16 |
519,179 |
|
|
— |
|
| Total non-current
liabilities |
2,718,460 |
|
|
2,497,952 |
|
| Total
liabilities |
3,206,071 |
|
|
2,945,152 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and fully
paid-in share capital: |
|
|
|
| Share capital |
645 |
|
|
5,776 |
|
| Additional paid-in
capital |
2,841,553 |
|
|
2,648,599 |
|
| Treasury shares |
(467,056 |
) |
|
(467,056 |
) |
| Accumulated deficit (1) |
(411,088 |
) |
|
(348,307 |
) |
| Total shareholders'
equity |
1,964,054 |
|
|
1,839,012 |
|
| Total liabilities and
shareholders' equity |
$ |
5,170,125 |
|
|
$ |
4,784,164 |
|
|
(1) |
Accumulated deficit reflects the impact of the adoption of IFRS 16,
Leases. IFRS 16 amended the existing accounting standards to
require lessees to recognize, on a discounted basis, the rights and
obligations created by the commitment to lease assets on the
balance sheet, unless the term of the lease is 12 months or
less. Accordingly, the standard resulted in the recognition
of right of use assets and corresponding liabilities, on the basis
of the discounted remaining future minimum lease payments, relating
to the existing bareboat chartered-in vessel commitments for three
bareboat chartered-in vessels, which are scheduled to expire in
April 2025. Upon transition, a lessee shall apply IFRS 16 to
its leases either retrospectively to each prior reporting period
presented (the ‘full retrospective approach’) or retrospectively
with the cumulative effect of initially applying IFRS 16 recognized
at the date of initial application (the ‘modified retrospective
approach’). We applied the modified retrospective approach
upon transition. The impact of the application of this standard on
the opening balance sheet as of January 1, 2019 was the recognition
of a $48.5 million right of use asset, a $50.7
million operating lease liability and a $2.2
million reduction in retained earnings relating to these three
vessels. |
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows(unaudited)
| |
For the nine months ended September 30, |
| In thousands of U.S.
dollars |
2019 |
|
2018 |
| Operating
activities |
|
|
|
|
Net loss |
$ |
(60,532 |
) |
|
$ |
(172,404 |
) |
| Depreciation - owned or
finance leased vessels |
133,575 |
|
|
132,131 |
|
| Depreciation - right of use
assets |
14,280 |
|
|
— |
|
| Amortization of restricted
stock |
20,707 |
|
|
19,403 |
|
| Amortization of deferred
financing fees |
5,673 |
|
|
8,271 |
|
| Write-off of deferred
financing fees |
711 |
|
|
12,946 |
|
| Accretion of convertible
notes |
9,162 |
|
|
9,811 |
|
| Accretion of fair value
measurement on debt assumed in business combinations |
2,725 |
|
|
2,849 |
|
| Loss on exchange of
convertible notes |
— |
|
|
17,838 |
|
| |
126,301 |
|
|
30,845 |
|
| Changes in assets and
liabilities: |
|
|
|
| (Increase) / decrease in
inventories |
(1,231 |
) |
|
1,480 |
|
| Decrease in accounts
receivable |
8,060 |
|
|
10,556 |
|
| Increase in prepaid expenses
and other current assets |
(1,023 |
) |
|
(841 |
) |
| Increase in other assets |
(3,289 |
) |
|
(1,436 |
) |
| Increase in accounts
payable |
7,899 |
|
|
3,459 |
|
| Increase / (decrease) in
accrued expenses |
3,731 |
|
|
(9,057 |
) |
| |
14,147 |
|
|
4,161 |
|
| Net cash inflow from
operating activities |
140,448 |
|
|
35,006 |
|
| Investing
activities |
|
|
|
| Acquisition of vessels and
payments for vessels under construction |
— |
|
|
(26,057 |
) |
| Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
finance leased and bareboat-in vessels) |
(128,569 |
) |
|
(12,543 |
) |
| Net cash (outflow) /
inflow from investing activities |
(128,569 |
) |
|
(38,600 |
) |
| Financing
activities |
|
|
|
| Debt repayments |
(230,123 |
) |
|
(733,255 |
) |
| Issuance of debt |
— |
|
|
849,798 |
|
| Debt issuance costs |
(1,701 |
) |
|
(20,785 |
) |
| Principal repayments on lease
liability - IFRS 16 |
(18,450 |
) |
|
|
| Increase in restricted
cash |
(9 |
) |
|
(898 |
) |
| Repayment of convertible
notes |
(144,974 |
) |
|
— |
|
| Gross proceeds from issuance
of common stock |
50,000 |
|
|
— |
|
| Equity issuance costs |
(329 |
) |
|
(4 |
) |
| Dividends paid |
(15,464 |
) |
|
(9,898 |
) |
| Repurchase of common
stock |
(1 |
) |
|
— |
|
| Net cash (outflow)
/ inflow from financing activities |
(361,051 |
) |
|
84,958 |
|
| (Decrease) / increase
in cash and cash equivalents |
(349,172 |
) |
|
81,364 |
|
| Cash and cash equivalents at
January 1, |
593,652 |
|
|
186,462 |
|
| Cash and cash
equivalents at September 30, |
$ |
244,480 |
|
|
$ |
267,826 |
|
As described in the preceding sections, on
September 26, 2019, the Company acquired subsidiaries of Trafigura
which have leasehold interests in 19 product tankers under bareboat
charter agreements with subsidiaries of an international financial
institution for aggregate consideration of $803 million. Of
the 19 vessels, 15 (consisting of 11 MRs and four LR2s) were
delivered during 2019 and four MRs are currently under
construction. For the delivered vessels, the Company assumed
the obligations under the bareboat charter agreements of $531.5
million and issued 3,981,619 shares of common stock
at $29.00 per share to a nominee of Trafigura with an
aggregate market value of $115.5 million. For the four
vessels under construction, the Company assumed the commitments on
the bareboat charter agreements of $138.9 million and issued
591,254 shares of common stock at $29.00 per share to a nominee of
Trafigura with an aggregate market value of $17.1 million. The
obligations under the bareboat charter agreements for the
undelivered vessels will be recorded upon the delivery of each
vessel (the lease commencement date).
This transaction represents a significant non-cash transaction
that occurred during the nine months ended September 30, 2019.
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three and
nine months ended September 30, 2019 and
2018(unaudited)
| |
For the three months |
|
For the nine months |
| |
ended September 30, |
|
ended September 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Adjusted EBITDA(1) (in thousands of U.S. dollars
except Fleet Data) |
$ |
54,484 |
|
|
$ |
29,254 |
|
|
$ |
239,552 |
|
|
$ |
134,163 |
|
| |
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
| TCE per day(2) |
$ |
13,560 |
|
|
$ |
10,519 |
|
|
$ |
15,538 |
|
|
$ |
12,058 |
|
| Vessel operating costs per
day(3) |
$ |
6,449 |
|
|
6,333 |
|
|
$ |
6,426 |
|
|
$ |
6,448 |
|
| |
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
| TCE per revenue day (2) |
$ |
15,974 |
|
|
$ |
12,532 |
|
|
$ |
18,689 |
|
|
$ |
13,222 |
|
| Vessel operating costs per
day(3) |
$ |
6,683 |
|
|
6,652 |
|
|
$ |
6,726 |
|
|
$ |
6,650 |
|
| Average number of owned or
finance leased vessels |
38.2 |
|
|
38.0 |
|
|
38.1 |
|
|
38.0 |
|
| Average number of time
chartered-in vessels |
— |
|
|
1.6 |
|
|
— |
|
|
1.7 |
|
| |
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
| TCE per revenue day (2) |
$ |
12,942 |
|
|
$ |
8,335 |
|
|
$ |
15,243 |
|
|
$ |
9,843 |
|
| Vessel operating costs per
day(3) |
$ |
6,297 |
|
|
$ |
6,232 |
|
|
$ |
6,350 |
|
|
$ |
6,612 |
|
| Average number of owned or
finance leased vessels |
12.0 |
|
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
| Average number of time
chartered-in vessels |
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
| TCE per revenue day (2) |
$ |
13,531 |
|
|
$ |
9,875 |
|
|
$ |
14,246 |
|
|
$ |
12,009 |
|
| Vessel operating costs per
day(3) |
$ |
6,220 |
|
|
$ |
6,193 |
|
|
$ |
6,230 |
|
|
$ |
6,319 |
|
| Average number of owned or
finance leased vessels |
45.5 |
|
|
45.0 |
|
|
45.2 |
|
|
44.9 |
|
| Average number of time
chartered-in vessels |
— |
|
|
3.6 |
|
|
0.1 |
|
|
5.1 |
|
| Average number of bareboat
chartered-in vessels |
3.0 |
|
|
3.0 |
|
|
3.0 |
|
|
3.0 |
|
| |
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
| TCE per revenue day (2) |
$ |
9,760 |
|
|
$ |
9,529 |
|
|
$ |
13,057 |
|
|
$ |
11,273 |
|
| Vessel operating costs per
day(3) |
$ |
6,642 |
|
|
$ |
6,135 |
|
|
$ |
6,375 |
|
|
$ |
6,282 |
|
| Average number of owned or
finance leased vessels |
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
| Average number of time
chartered-in vessels |
— |
|
|
— |
|
|
— |
|
|
0.7 |
|
| Average number of bareboat
chartered-in vessels |
7.0 |
|
|
7.0 |
|
|
7.0 |
|
|
7.0 |
|
| |
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
| Average number of owned or
finance leased vessels |
109.7 |
|
|
109.0 |
|
|
109.2 |
|
|
108.9 |
|
| Average number of time
chartered-in vessels |
— |
|
|
5.2 |
|
|
0.1 |
|
|
7.5 |
|
| Average number of bareboat
chartered-in vessels |
10.0 |
|
|
10.0 |
|
|
10.0 |
|
|
10.0 |
|
| |
|
|
|
|
|
|
|
| Drydock |
|
|
|
|
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments for owned,
finance leased and bareboat chartered-in vessels (in thousands of
U.S. dollars) |
$ |
68,881 |
|
|
$ |
10,407 |
|
|
$ |
128,569 |
|
|
$ |
12,543 |
|
|
(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,
finance leased 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 our owned, finance leased or bareboat chartered-in
vessels, not our time chartered-in vessels. |
Fleet list as of November 6,
2019
| |
|
|
Year |
|
|
|
Ice |
|
|
|
|
|
|
| |
Vessel
Name |
|
Built |
|
DWT |
|
class |
|
Employment |
|
Vessel type |
|
Scrubber |
| |
Owned or finance leased
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 |
|
Not Yet Installed |
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
17 |
STI Ruby |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
18 |
STI Garnet |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
19 |
STI Onyx |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
20 |
STI Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
21 |
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
N/A |
|
22 |
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
N/A |
|
23 |
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
N/A |
|
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 |
|
Not Yet Installed |
|
34 |
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
35 |
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
36 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
37 |
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
38 |
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
39 |
STI Memphis |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
40 |
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
41 |
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
42 |
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
43 |
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
44 |
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
45 |
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
46 |
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
47 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
48 |
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
49 |
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
50 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
51 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
52 |
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
53 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
54 |
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
55 |
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
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 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 Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
72 |
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
73 |
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
74 |
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
75 |
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
76 |
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
77 |
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
78 |
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
79 |
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
80 |
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
81 |
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
82 |
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
83 |
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
84 |
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
85 |
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
86 |
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
87 |
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
88 |
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
89 |
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
90 |
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
91 |
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
92 |
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
93 |
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
94 |
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
95 |
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
96 |
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
97 |
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
98 |
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
99 |
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
100 |
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
101 |
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
102 |
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
103 |
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
104 |
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
105 |
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
106 |
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
107 |
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
108 |
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
109 |
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
110 |
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
111 |
STI Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
112 |
STI Goal |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
113 |
STI Nautilus |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
114 |
STI Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
115 |
STI Guide |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
116 |
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
117 |
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
118 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
119 |
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
120 |
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
121 |
STI Lobelia |
|
2018 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
122 |
STI Lotus |
|
2018 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
123 |
STI Lily |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
124 |
STI Lavender |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned or finance leased
DWT |
|
|
|
8,873,190 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily |
|
|
|
| |
|
|
Year |
|
|
|
Ice |
|
|
|
|
|
Charter |
|
Base |
|
|
|
| |
Vessel
Name |
|
Built |
|
DWT |
|
class |
|
Employment |
|
Vessel type |
|
type |
|
Rate |
|
Expiry (5) |
|
| |
Bareboat chartered-in
vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125 |
Silent |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-20 |
|
|
126 |
Single |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-20 |
|
|
127 |
Star I |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-20 |
|
|
128 |
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-21 |
|
|
129 |
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-21 |
|
|
130 |
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-21 |
|
|
131 |
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,300 |
|
|
31-Mar-21 |
|
|
132 |
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
18-Apr-25 |
(6) |
|
133 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
21-Apr-25 |
(6) |
|
134 |
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
28-Apr-25 |
(6) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total bareboat chartered-in
DWT |
|
|
|
414,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Newbuildings currently under
construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Vessel |
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Yard |
|
DWT |
|
type |
|
|
|
|
|
|
|
|
|
|
|
|
135 |
Hull S458 - TBN STI
Miracle |
|
HVS |
|
50,000 |
|
|
MR |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
136 |
Hull S469 - TBN STI
Maestro |
|
HVS |
|
50,000 |
|
|
MR |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
137 |
Hull S470 - TBN STI
Mighty |
|
HVS |
|
50,000 |
|
|
MR |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
138 |
Hull S471 - TBN STI
Maximus |
|
HVS |
|
50,000 |
|
|
MR |
|
(7) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total newbuilding product
tankers DWT |
|
|
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
9,488,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, or is expected to operate 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, or is expected to operate 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) |
Redelivery from the charterer is plus or minus 30 days from the
expiry date. |
|
(6) |
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. |
|
(7) |
The leasehold interests in these vessels were acquired from
Trafigura in September 2019 as part of the Trafigura Transaction
and these vessels are currently under construction at Hyundai
Vinashin Shipyard Co., Ltd. Three vessels are expected to be
delivered in the first quarter of 2020 and one vessel is expected
to be delivered in the third quarter of 2020. |
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 2018 and 2019 were as
follows:
|
|
|
Dividends per common |
|
|
|
Date paid |
share |
|
|
|
March 2018 |
$0.100 |
|
|
|
June 2018 |
$0.100 |
|
|
|
September 2018 |
$0.100 |
|
|
|
December 2018 |
$0.100 |
|
|
|
March 2019 |
$0.100 |
|
|
|
June 2019 |
$0.100 |
|
|
|
September 2019 |
$0.100 |
|
On November 6, 2019, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per share,
payable on or about December 13, 2019 to all shareholders of record
as of November 25, 2019 (the record date). As of
November 6, 2019, there were 58,142,400 common shares of the
Company 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 Unsecured
Senior Notes due 2020 (NYSE: SBNA), which were issued in May 2014,
and Convertible Notes due 2022, which were issued in May and July
2018.
No securities were repurchased under this
program during the third quarter of 2019 and through the date of
this press release in the fourth quarter of 2019.
As of the date hereof, the Company has the
authority to purchase up to an additional $121.6 million of its
securities under its Securities Repurchase Program. The Company may
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 124 product tankers (42 LR2
tankers, 12 LR1 tankers, 56 MR tankers and 14 Handymax tankers)
with an average age of 3.8 years and bareboat charters-in 10
product tankers (three MR tankers and seven Handymax tankers). In
addition, the Company will bareboat charter-in four MR tankers that
are currently under construction and are scheduled to be delivered
in 2020 (two in January, one in March, and one in September).
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 is reconciled above in the section
entitled 'Explanation of Variances on the Third Quarter of 2019
Financial Results Compared to the Third Quarter of 2018'.
Reconciliation of Net Loss to Adjusted Net
Loss
| |
For the three months ended September 30, 2019 |
| |
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars
except per share data |
Amount |
|
basic |
|
diluted |
|
Net loss |
$ |
(45,289 |
) |
|
$ |
(0.93 |
) |
|
$ |
(0.93 |
) |
|
Adjustment: |
|
|
|
|
|
| |
|
|
|
|
|
|
Deferred financing fees write-off |
|
443 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Adjusted net loss |
$ |
(44,846 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.92 |
) |
| |
For the three months ended September 30, 2018 |
| |
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars
except per share data |
Amount |
|
basic |
|
diluted |
|
Net loss |
$ |
(71,709 |
) |
|
$ |
(2.31 |
) |
|
$ |
(2.31 |
) |
|
Adjustments: |
|
|
|
|
|
|
Deferred financing fees write-off |
5,911 |
|
|
0.19 |
|
|
0.19 |
|
|
Loss on exchange of Convertible Notes due 2019 |
870 |
|
|
0.03 |
|
|
0.03 |
|
|
Adjusted net loss |
$ |
(64,928 |
) |
|
$ |
(2.09 |
) |
|
$ |
(2.09 |
) |
| |
For the nine months ended September 30, 2019 |
| |
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars
except per share data |
Amount |
|
basic |
|
diluted |
|
Net loss |
$ |
(60,532 |
) |
|
$ |
(1.25 |
) |
|
$ |
(1.25 |
) |
|
Adjustment: |
|
|
|
|
|
|
Deferred financing fees write-off |
|
718 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
Adjusted net loss |
$ |
(59,814 |
) |
|
$ |
(1.24 |
) |
|
$ |
(1.24 |
) |
| |
For the nine months ended September 30, 2018 |
| |
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars
except per share data |
Amount |
|
basic |
|
diluted |
|
Net loss |
$ |
(172,404 |
) |
|
$ |
(5.57 |
) |
|
$ |
(5.57 |
) |
|
Adjustments: |
|
|
|
|
|
|
Merger transaction related costs |
272 |
|
|
0.01 |
|
|
0.01 |
|
|
Deferred financing fees write-off |
12,946 |
|
|
0.42 |
|
|
0.42 |
|
|
Loss on exchange of Convertible Notes due 2019 |
17,838 |
|
|
0.58 |
|
|
0.58 |
|
|
Adjusted net loss |
$ |
(141,348 |
) |
|
$ |
(4.57 |
) |
(1) |
$ |
(4.57 |
) |
(1) Summation differences due to rounding.
Reconciliation of Net Loss to Adjusted
EBITDA
| |
For the three months |
|
For the nine months |
| |
ended September 30, |
|
ended September 30, |
| In thousands of U.S.
dollars |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net loss |
$ |
(45,289 |
) |
|
$ |
(71,709 |
) |
|
$ |
(60,532 |
) |
|
$ |
(172,404 |
) |
|
Financial expenses |
42,865 |
|
|
50,106 |
|
|
138,948 |
|
|
138,473 |
|
|
Financial income |
(1,582 |
) |
|
(820 |
) |
|
(7,426 |
) |
|
(1,550 |
) |
|
Depreciation - owned or finance leased vessels |
45,392 |
|
|
44,584 |
|
|
133,575 |
|
|
132,131 |
|
|
Depreciation - right of use assets |
6,250 |
|
|
— |
|
|
14,280 |
|
|
— |
|
|
Merger transaction related costs |
— |
|
|
— |
|
|
— |
|
|
272 |
|
|
Amortization of restricted stock |
6,848 |
|
|
6,223 |
|
|
20,707 |
|
|
19,403 |
|
|
Loss on exchange of Convertible Notes due 2019 |
— |
|
|
870 |
|
|
— |
|
|
17,838 |
|
|
Adjusted EBITDA |
$ |
54,484 |
|
|
$ |
29,254 |
|
|
$ |
239,552 |
|
|
$ |
134,163 |
|
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
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