Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three months ended
March 31, 2021. The Company also announced that its Board of
Directors has declared a quarterly cash dividend of $0.10 per share
on the Company’s common stock.
Results for the three months ended March
31, 2021 and 2020
For the three months ended March 31, 2021, the
Company had a net loss of $62.4 million,
or $1.15 basic and diluted loss per share. For the three
months ended March 31, 2021, the Company had an adjusted net loss
(see Non-IFRS Measures section below) of $57.3 million, or $1.05
basic and diluted loss per share, which excludes from the net loss
$3.9 million, or $0.07 per basic and diluted share, of losses
recorded on the transaction to exchange $62.1 million in aggregate
principal amount of its existing Convertible Notes due 2022 for
$62.1 million in aggregate principal amount of new Convertible
Notes due 2025, described in detail below, and $1.3 million, or
$0.02 per basic and diluted share, write-offs of deferred financing
fees related to the refinancing of certain credit facilities.
For the three months ended March 31, 2020, the
Company had net income of $46.6 million, or $0.85 basic and $0.82
diluted earnings per share. There were no Non-IFRS adjustments to
the net income for the three months ended March 31, 2020.
Declaration of Dividend
On May 6, 2021, the Company's Board of Directors
declared a quarterly cash dividend of $0.10 per common share,
payable on or about June 15, 2021 to all shareholders of record as
of May 21, 2021 (the record date). As of May 6, 2021, there
were 58,369,516 common shares of the Company outstanding.
Summary of First Quarter and Other
Recent Significant Events
- Below is
a summary of the average daily Time Charter Equivalent ("TCE")
revenue (see Non-IFRS Measures section below) and duration of
contracted pool voyages and time charters for the Company's vessels
thus far in the second quarter of 2021 as of the date hereof (See
footnotes to "Other operating data" table below for the definition
of daily TCE revenue):
| |
Total |
|
Pool |
Average daily TCE revenue |
% of Days |
|
LR2 |
$14,700 |
48 % |
|
| LR1 |
$13,700 |
41 % |
|
| MR |
$13,000 |
52 % |
|
| Handymax |
$11,900 |
42 % |
|
-
Below is a summary of the average daily TCE revenue earned by the
Company's vessels in each of the pools during the first quarter of
2021:
|
Pool |
Average daily TCE revenue |
|
LR2 |
$11,980 |
|
LR1 |
$11,292 |
|
MR |
$11,326 |
|
Handymax |
$9,065 |
-
In March 2021, the Company completed the exchange of $62.1 million
in aggregate principal amount of its Convertible Notes due 2022 for
$62.1 million in aggregate principal amount of new 3.00%
Convertible Notes due 2025 (the "Convertible Notes due 2025"),
pursuant to separate, privately negotiated, agreements with certain
holders of the Convertible Notes due 2022. Simultaneously, the
Company issued and sold $76.1 million in aggregate principal amount
of Convertible Notes due 2025 pursuant to separate, privately
negotiated, agreements with certain investors in a private
offering.
-
In January 2021, the Company entered into a note distribution
agreement with B. Riley Securities, Inc., as sales agent, pursuant
to which the Company may offer and sell, from time to time, up to
$75.0 million of additional aggregate principal amount of its 7.00%
Senior Unsecured Notes due 2025 (the "Senior Notes due 2025").
Since the inception of this program and through the date of this
press release, the Company issued $17.9 million aggregate principal
amount of additional Senior Notes due 2025 for aggregate net
proceeds (net of sales agent commissions and offering expenses) of
$17.5 million.
-
The Company has received a commitment to refinance the existing
indebtedness on two LR2s, which is expected to raise $20.5 million
in new liquidity (after the repayment of existing debt). These
refinancings are expected to close before the end of the second
quarter of 2021.
-
The Company is also in discussions with financial institutions to
further increase its liquidity by up to $46.7 million in connection
with the refinancing of 11 vessels.
-
In addition to the above, the Company has $20.0 million of
additional liquidity available (after the repayment of existing
debt) from previously announced financings that have been
committed. These drawdowns are expected to occur at varying points
in the future as these financings are tied to scrubber
installations on the Company’s vessels.
-
The Company has $280.1 million in cash and cash equivalents as of
May 6, 2021.
March 2021 Exchange Offer and New
Issuance of Convertible Notes
In March 2021, the Company completed the
exchange of $62.1 million in aggregate principal amount of
Convertible Notes due 2022 for $62.1 million in aggregate principal
amount of the Convertible Notes due 2025, pursuant to separate,
privately negotiated, agreements with certain holders of the
Convertible Notes due 2022 (the "March 2021 Exchange").
Simultaneously with the March 2021 Exchange, the Company issued and
sold $76.1 million in aggregate principal amount of Convertible
Notes due 2025 pursuant to separate, privately negotiated,
agreements with certain investors in a private offering (the "March
2021 Convertible Notes Offering").
The Convertible Notes due 2025 are the Company's
senior, unsecured obligations and bear interest at a rate of 3.00%
per year. Interest is payable semi-annually in arrears on May 15
and November 15 of each year, beginning on May 15, 2021. The
Convertible Notes due 2025 will mature on May 15, 2025, unless
earlier converted, redeemed or repurchased in accordance with their
terms.
The conversion rate of the Convertible Notes due
2025 is initially 26.6617 common shares per $1,000 principal amount
of Convertible Notes due 2025 (equivalent to an initial conversion
price of approximately $37.507 per common share), and is subject to
adjustment upon the occurrence of certain events as set forth in
the indenture governing the Convertible Notes due 2025 (such as the
payment of dividends).
Commencing on the issue date of the Convertible
Notes due 2025, principal will accrete on the principal amount,
compounded semi-annually, at a rate of approximately 5.52% per
annum, which principal amount, together with any accretions
thereon, is the “Accreted Principal Amount”. The Accreted Principal
Amount at maturity will equal 125.3% of par, which together with
the 3.00% interest rate, compounds to a yield-to-maturity of
approximately 8.25%.
The Convertible Notes due 2025 are freely
convertible at the option of the holder and prior to the close of
business on the 5th business day immediately preceding the maturity
date. Upon conversion of the Convertible Notes due 2025, holders
will receive shares of the Company's common stock. The Company may,
subject to certain exceptions, redeem the Convertible Notes due
2025 for cash, if at any time the per share volume-weighted average
price of our common shares equals or exceeds 125.4% of the
conversion price then in effect on (i) each of at least 20 trading
days (whether or not consecutive) during the 30 consecutive trading
days ending on, and including, the trading day immediately before
the applicable redemption date; and (ii) the trading day
immediately before such date of the redemption notice.
The Company recorded a loss on the
extinguishment of the Convertible Notes due 2022 of $3.9 million as
a result of the March 2021 Exchange, which primarily arose from the
difference between the carrying value and the face value of the
Convertible Notes due 2022 on the date of the exchange.
Distribution Agreement of Additional
Senior Notes due 2025
In January 2021, the Company entered into a note
distribution agreement (the “Distribution Agreement”) with B. Riley
Securities, Inc., as sales agent (the “Agent”), under which the
Company may offer and sell, from time to time, up to an additional
$75.0 million aggregate principal amount of its Senior Notes due
2025 (the "Additional Notes").
Any Additional Notes sold will be issued under
the Indenture pursuant to which the Company previously issued $28.1
million aggregate principal amount of the Senior Notes due 2025 on
May 29, 2020 (the "Initial Notes"). The Additional Notes will have
the same terms as (other than date of issuance), form a single
series of debt securities with and have the same CUSIP number and
be fungible with, the Initial Notes immediately upon issuance,
including for purposes of notices, consents, waivers, amendments
and any other action permitted under the Indenture. The Senior
Notes due 2025 are listed on the New York Stock Exchange (the
“NYSE”) under the symbol "SBBA."
Sales of the Additional Notes may be made over a
period of time, and from time to time, through the Agent, in
transactions involving an offering of the Senior Notes due 2025
into the existing trading market at prevailing market prices.
During the first quarter of 2021, the Company
issued $14.1 million in aggregate principal amount of Additional
Notes for aggregate net proceeds (net of sales agent commissions
and offering expenses) of $13.8 million. Since the inception of
this program and through the date of this press release, the
Company issued $17.9 million aggregate principal amount of
Additional Notes for aggregate net proceeds (net of sales agent
commissions and offering expenses) of $17.5 million.
Diluted Weighted Number of
Shares
The computation of earnings or loss per share is
determined by taking into consideration the potentially dilutive
shares arising from (i) the Company’s equity incentive plan, and
(ii) the Company’s Convertible Notes due 2022 and Convertible Notes
due 2025. These potentially dilutive shares are excluded from the
computation of earnings or loss per share to the extent they are
anti-dilutive.
The impact of the Convertible Notes due 2022 and
Convertible Notes due 2025 on earnings or loss per share is
computed using the if-converted method. Under this method, the
Company first includes the potentially dilutive impact of
restricted shares issued under the Company’s equity incentive plan,
and then assumes that its Convertible Notes due 2022 and
Convertible Notes due 2025, which were issued in May and July 2018
and March 2021, respectively, were converted into common shares at
the beginning of each period. The if-converted method also assumes
that the interest and non-cash amortization expense associated with
these notes of $3.1 million during the three months ended March 31,
2021 were not incurred. Conversion is not assumed if the results of
this calculation are anti-dilutive.
The Company's basic weighted average number of
shares outstanding were 54,318,792 for the three months ended March
31, 2021. There were 56,019,369 weighted average shares outstanding
including the potentially dilutive impact of restricted shares, and
60,168,137 weighted average shares outstanding under the
if-converted method. Since the Company was in a net loss position,
the potentially dilutive shares arising from both the Company’s
restricted shares and under the if-converted method, were
anti-dilutive for purposes of calculating the loss per share.
Accordingly, basic weighted average shares outstanding were used to
calculate both basic and diluted loss per share for this
period.
COVID-19
Initially, the onset of the COVID-19 pandemic in
March 2020 resulted in a sharp reduction in economic activity and a
corresponding reduction in the global demand for oil and refined
petroleum products. This period of time was marked by extreme
volatility in the oil markets and the development of a steep
contango in the prices of oil and refined petroleum products.
Consequently, an abundance of arbitrage and floating storage
opportunities opened up, which resulted in record increases in spot
TCE rates late in the first quarter of 2020 and throughout the
second quarter of 2020. These market dynamics, which were driven by
arbitrage trading rather than underlying consumption, led to a
build-up of global oil and refined petroleum product
inventories.
In June 2020, as underlying oil markets
stabilized and global economies began to recover, the excess
inventories that built up during this period began to slowly
unwind. Nevertheless, global demand for oil and refined petroleum
products remained subdued as governments around the world continued
to impose travel restrictions and other measures in an effort to
curtail the spread of the virus. These market conditions had an
adverse impact on the demand for our vessels beginning in the third
quarter of 2020 and continuing through the first quarter of 2021.
Recently, the easing of restrictive measures and successful
roll-out of vaccines in certain countries have begun to stimulate
oil demand and have manifested into sequential improvements in
market conditions to start the second quarter of 2021.
We expect that the COVID-19 virus will continue
to cause volatility in the commodities markets. The scale and
duration of these circumstances is unknowable but could have a
material impact on our earnings, cash flow and financial condition
in 2021. An estimate of the impact on our results of operations and
financial condition cannot be made at this time.
$250 Million Securities Repurchase
Program
In September 2020, the Company's Board of
Directors authorized a new Securities Repurchase Program to
purchase up to an aggregate of $250 million of the Company's
securities which, in addition to its common shares, currently
consist of its Senior Notes due 2025 (NYSE: SBBA), which were
originally issued in May 2020, Convertible Notes due 2022, which
were issued in May and July 2018, and Convertible Notes due 2025,
which were issued in March 2021. No securities have been
repurchased under the new program since its inception through the
date of this press release.
Conference Call
The Company has scheduled a conference call on
May 7, 2021 at 8:30 AM Eastern Daylight Time and 2:30 PM
Central European Summer Time. The dial-in information is as
follows:
US Dial-In Number: +1 (855) 861-2416International Dial-In
Number: +1 (703) 736-7422Conference ID: 1796885
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/7nx97or2
Current Liquidity
As of May 6, 2021, the Company had $280.1
million in unrestricted cash and cash equivalents.
Drydock, Scrubber and Ballast Water
Treatment Update
Set forth below is a table summarizing the
drydock, scrubber, and ballast water treatment system activity that
occurred during the first quarter of 2021 and that is in progress
as of April 1, 2021:
|
|
Number of Vessels |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Aggregate Costs ($ in millions)
(1) |
Aggregate Off-hire Days in Q1 2021 |
|
Completed in the first quarter of 2021 |
|
|
|
|
|
|
| LR2 |
3 |
3 |
— |
1 |
$6.2 |
76 |
| LR1 |
3 |
3 |
— |
— |
3.2 |
61 |
| MR |
— |
— |
— |
— |
— |
— |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
6 |
6 |
— |
1 |
$9.4 |
137 |
| |
|
|
|
|
|
|
| In progress as of April 1,
2021 |
|
|
|
|
|
|
| LR2 |
1 |
1 |
— |
— |
$0.2 |
1 |
| LR1 |
— |
— |
— |
— |
— |
— |
| MR |
— |
— |
— |
— |
— |
— |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
1 |
1 |
— |
— |
$0.2 |
1 |
(1) Aggregate costs for vessels completed
in the quarter represent the total costs incurred, some of which
may have been incurred in prior periods. Aggregate costs for
vessels in progress as of April 1, 2021 represent the total costs
incurred through that date, some of which may have been incurred in
prior periods.
Set forth below are the estimated expected
payments to be made for the Company's drydocks, ballast water
treatment system installations, and scrubber installations through
2022 (which also include actual payments made during the first
quarter of 2021 and through May 6, 2021):
| In millions of U.S.
dollars |
As of March 31, 2021 (1) (2) |
| |
|
|
Q2 2021 - payments made through May 6, 2021 |
$ |
1.8 |
| Q2 2021 - remaining
payments |
8.6 |
| Q3 2021 |
10.1 |
| Q4 2021 |
6.1 |
| FY 2022 |
40.5 |
(1) Includes estimated cash payments for
drydocks, ballast water treatment system installations and scrubber
installations. These amounts include installment payments
that are due in advance of the scheduled service and may be
scheduled to occur in quarters prior to the actual installation. In
addition to these installment payments, these amounts also include
estimates of the installation costs of such systems. The
timing of the payments set forth are estimates only and may vary as
the timing of the related drydocks and installations
finalize.
(2) Based upon the commitments received to
date, which include the remaining availability under certain
financing transactions that have been previously announced, the
Company expects to raise approximately $20.0 million of aggregate
additional liquidity to finance the purchase and installations of
scrubbers (after the repayment of existing debt) once all of the
agreements are closed and drawn. These drawdowns are expected
to occur at varying points in the future as these financings are
tied to scrubber installations on the Company’s vessels.
Set forth below are the estimated expected
number of ships and estimated expected off-hire days for the
Company's drydocks, ballast water treatment system installations,
and scrubber installations (1):
|
|
Q2 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
4 |
|
— |
|
— |
|
80 |
|
|
LR1 |
3 |
|
— |
|
— |
|
60 |
|
|
MR |
— |
|
— |
|
— |
|
— |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total Q2
2021 |
7 |
|
— |
|
— |
|
140 |
|
| |
|
|
|
|
|
|
Q3 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
2 |
|
— |
|
— |
|
40 |
|
|
LR1 |
2 |
|
— |
|
— |
|
40 |
|
|
MR |
— |
|
— |
|
— |
|
— |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total Q3
2021 |
4 |
|
— |
|
— |
|
80 |
|
| |
|
|
|
|
|
|
Q4 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
2 |
|
— |
|
— |
|
40 |
|
|
LR1 |
2 |
|
— |
|
— |
|
40 |
|
|
MR |
— |
|
— |
|
— |
|
— |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total Q4
2021 |
4 |
|
— |
|
— |
|
80 |
|
| |
|
|
|
|
|
|
FY 2022 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
5 |
|
— |
|
1 |
|
140 |
|
|
LR1 |
— |
|
— |
|
3 |
|
120 |
|
|
MR |
11 |
|
5 |
|
4 |
|
320 |
|
|
Handymax |
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
| Total FY
2022 |
16 |
|
5 |
|
8 |
|
580 |
|
(1) 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.(2) Represents the number of vessels scheduled to
commence drydock, ballast water treatment system, and/or scrubber
installations during the period. It does not include vessels that
commenced work in prior periods but will be completed in the
subsequent period. (3) Represents total estimated off-hire
days during the period, including vessels that commenced work in a
previous period.
Debt
Set forth below is a summary of the principal
balances of the Company’s outstanding indebtedness as of the dates
presented.
| |
In thousands of U.S.
Dollars |
Outstanding Principal as of December 31, 2020 |
Drawdowns and (repayments), net |
Outstanding Principal as of March 31, 2021 |
Drawdowns and (repayments), net |
Outstanding Principal as of May 6, 2021 |
| 1 |
KEXIM Credit Facility (1) |
$ |
15,931 |
|
$ |
(15,931 |
) |
|
$ |
— |
|
— |
|
|
$ |
— |
|
| 2 |
ING Credit Facility
(2)(3)(4)(8) |
191,348 |
|
(121,001 |
) |
|
70,347 |
|
— |
|
|
70,347 |
|
| 3 |
2018 NIBC Credit Facility
(4) |
31,066 |
|
(31,066 |
) |
|
— |
|
— |
|
|
— |
|
| 4 |
Credit Agricole Credit
Facility |
82,160 |
|
(2,142 |
) |
|
80,018 |
|
— |
|
|
80,018 |
|
| 5 |
ABN AMRO / K-Sure Credit
Facility |
41,827 |
|
(963 |
) |
|
40,864 |
|
— |
|
|
40,864 |
|
| 6 |
Citibank / K-Sure Credit
Facility |
86,818 |
|
(2,104 |
) |
|
84,714 |
|
— |
|
|
84,714 |
|
| 7 |
ABN / SEB Credit Facility
(2) |
97,856 |
|
(3,087 |
) |
|
94,769 |
|
(16,076 |
) |
|
78,693 |
|
| 8 |
Hamburg Commercial Credit
Facility |
40,315 |
|
(823 |
) |
|
39,492 |
|
— |
|
|
39,492 |
|
| 9 |
Prudential Credit
Facility |
50,378 |
|
(1,386 |
) |
|
48,992 |
|
(924 |
) |
|
48,068 |
|
| 10 |
2019 DNB / GIEK Credit
Facility |
52,563 |
|
(1,778 |
) |
|
50,785 |
|
— |
|
|
50,785 |
|
| 11 |
BNPP Sinosure Credit Facility
(5) |
94,733 |
|
1,915 |
|
|
96,648 |
|
(5,167 |
) |
|
91,481 |
|
| 12 |
2020 $225.0 Million Credit
Facility |
208,890 |
|
(5,250 |
) |
|
203,640 |
|
— |
|
|
203,640 |
|
| 13 |
2021 $21.0 Million Credit
Facility (1) |
— |
|
21,000 |
|
|
21,000 |
|
— |
|
|
21,000 |
|
| 14 |
Ocean Yield Lease
Financing |
138,508 |
|
(2,733 |
) |
|
135,775 |
|
(911 |
) |
|
134,864 |
|
| 15 |
BCFL Lease Financing (LR2s)
(6) |
86,197 |
|
1,277 |
|
|
87,474 |
|
(895 |
) |
|
86,579 |
|
| 16 |
CSSC Lease Financing |
134,308 |
|
(2,732 |
) |
|
131,576 |
|
(911 |
) |
|
130,665 |
|
| 17 |
CSSC Scrubber Lease
Financing |
4,443 |
|
(980 |
) |
|
3,463 |
|
(327 |
) |
|
3,136 |
|
| 18 |
BCFL Lease Financing (MRs)
(6) |
77,748 |
|
2,394 |
|
|
80,142 |
|
(1,250 |
) |
|
78,892 |
|
| 19 |
2018 CMBFL Lease
Financing |
124,993 |
|
(3,252 |
) |
|
121,741 |
|
(836 |
) |
|
120,905 |
|
| 20 |
$116.0 Million Lease Financing
(6) |
103,801 |
|
(401 |
) |
|
103,400 |
|
(848 |
) |
|
102,552 |
|
| 21 |
AVIC Lease Financing |
119,732 |
|
(3,332 |
) |
|
116,400 |
|
— |
|
|
116,400 |
|
| 22 |
China Huarong Lease Financing
(7) |
110,250 |
|
5,791 |
|
|
116,041 |
|
— |
|
|
116,041 |
|
| 23 |
$157.5 Million Lease
Financing |
123,800 |
|
(3,536 |
) |
|
120,264 |
|
— |
|
|
120,264 |
|
| 24 |
COSCO Lease Financing |
68,750 |
|
(1,925 |
) |
|
66,825 |
|
— |
|
|
66,825 |
|
| 25 |
2020 CMBFL Lease
Financing |
44,573 |
|
(810 |
) |
|
43,763 |
|
— |
|
|
43,763 |
|
| 26 |
2020 TSFL Lease Financing |
47,250 |
|
(831 |
) |
|
46,419 |
|
— |
|
|
46,419 |
|
| 27 |
2020 SPDBFL Lease
Financing |
96,500 |
|
(1,624 |
) |
|
94,876 |
|
— |
|
|
94,876 |
|
| 28 |
2021 AVIC Lease Financing
(4) |
— |
|
97,325 |
|
|
97,325 |
|
— |
|
|
97,325 |
|
| 29 |
2021 CMBFL Lease Financing
(2) |
— |
|
58,800 |
|
|
58,800 |
|
20,250 |
|
|
79,050 |
|
| 30 |
2021 TSFL Lease Financing
(3) |
— |
|
57,663 |
|
|
57,663 |
|
— |
|
|
57,663 |
|
| 31 |
IFRS 16 - Leases - 7 Handymax
(9) |
2,247 |
|
(2,247 |
) |
|
— |
|
— |
|
|
— |
|
| 32 |
IFRS 16 - Leases - 3 MR |
36,936 |
|
(1,843 |
) |
|
35,093 |
|
(623 |
) |
|
34,470 |
|
| 33 |
$670.0 Million Lease
Financing |
593,291 |
|
(11,134 |
) |
|
582,157 |
|
(3,993 |
) |
|
578,164 |
|
| 34 |
Unsecured Senior Notes Due
2025 (10) |
28,100 |
|
14,133 |
|
|
42,233 |
|
3,755 |
|
|
45,988 |
|
| 35 |
Convertible Notes Due 2022
(11) |
151,229 |
|
(62,088 |
) |
|
89,141 |
|
— |
|
|
89,141 |
|
| 36 |
Convertible Notes Due 2025
(11) |
— |
|
138,188 |
|
|
138,188 |
|
— |
|
|
138,188 |
|
|
|
Gross debt outstanding |
$ |
3,086,541 |
|
$ |
113,487 |
|
|
$ |
3,200,028 |
|
$ |
(8,756 |
) |
|
$ |
3,191,272 |
|
| |
Cash and cash
equivalents |
187,511 |
|
|
269,538 |
|
|
280,053 |
| |
Net debt |
$ |
2,899,030 |
|
|
$ |
2,930,490 |
|
|
$ |
2,911,219 |
|
(1) In February 2021, the Company drew down
$21.0 million on a term loan facility with a European financial
institution (the "2021 $21.0 Million Credit Facility"). The
proceeds of this loan facility were used to refinance the
outstanding debt on an LR2 product tanker, STI Madison, that was
previously financed under the KEXIM Credit Facility. The Company
repaid the outstanding indebtedness of $15.9 million related to
this vessel on the KEXIM Credit Facility in January 2021 upon its
maturity. The 2021 $21.0 Million Credit Facility has a final
maturity of December 2022, bears interest at LIBOR plus a margin of
2.65% per annum, and is scheduled to be repaid in equal quarterly
installments of approximately $0.6 million, with a balloon payment
due upon maturity. The remaining terms and conditions, including
financial covenants, are similar to those set forth in our existing
credit facilities.
(2) In March 2021, the Company received a
commitment to sell and leaseback four Handymax vessels (STI
Comandante, STI Brixton, STI Pimlico and STI Finchley) and one MR
vessel (STI Westminster) from CMB Financial Leasing Co. Ltd, or
CMBFL (the "2021 CMBFL Lease Financing"). In March 2021, the
Company closed on the sale and leaseback of the four aforementioned
Handymax vessels for aggregate proceeds of $58.8 million. The
Company repaid the outstanding indebtedness of $46.7 million
related to these vessels on the ING Credit Facility as part of
these transactions. In April 2021, the Company closed on the sale
and leaseback of STI Westminster for aggregate proceeds of $20.25
million. The Company repaid the outstanding indebtedness of $16.1
million related to this vessel on the ABN/SEB Credit Facility as
part of this transaction.
Under the 2021 CMBFL Lease Financing, each
vessel is subject to a seven-year bareboat charter-in agreement.
The lease financings bear interest at LIBOR plus a margin of 3.25%
per annum for the Handymax vessels and 3.20% for the MR vessel and
are scheduled to be repaid in equal quarterly principal
installments of approximately $0.3 million per each Handymax vessel
and $0.4 million for the MR vessel. Each agreement contains
purchase options to re-acquire each of the subject vessels
beginning on the third anniversary date from the delivery date of
the respective vessel, with a purchase option for each vessel upon
the expiration of each agreement. The remaining terms and
conditions, including financial covenants, are similar to those set
forth in the Company's other sale and leaseback arrangements.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(3) In March 2021, the Company closed on
the sale and leaseback of three MR vessels (STI Black Hawk, STI
Notting Hill and STI Pontiac) with Taiping & Sinopec Financial
Leasing Co., Ltd. for aggregate proceeds of $57.7 million (the
"2021 TSFL Lease Financing"). The Company repaid the outstanding
indebtedness of $40.7 million related to these vessels on the ING
Credit Facility as part of these transactions.
Under the 2021 TSFL Lease Financing, each vessel
is subject to a seven-year bareboat charter-in agreement. The lease
financings bear interest at LIBOR plus a margin of 3.20% per annum
and are scheduled to be repaid in equal quarterly principal
installments of approximately $0.4 million per vessel. Each
agreement contains purchase options to re-acquire each of the
subject vessels beginning on the second anniversary date from the
delivery date of the respective vessel, with a purchase option for
each vessel upon the expiration of each agreement. The remaining
terms and conditions, including financial covenants, are similar to
those set forth in the Company's other sale and leaseback
arrangements.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(4) In February 2021, the Company closed on
the sale and leaseback of two vessels (STI Memphis and STI Soho)
with AVIC International Leasing Co., Ltd. for aggregate proceeds of
$44.2 million. The Company repaid the outstanding indebtedness of
$30.0 million related to these vessels on the 2018 NIBC Credit
Facility as part of these transactions. Additionally, in March
2021, the Company closed on the sale and leaseback of two
additional vessels (STI Lombard and STI Osceola) under the 2021
AVIC Lease Financing for aggregate proceeds of $53.1 million. The
Company repaid the outstanding indebtedness of $29.6 million
related to these vessels on the ING Credit Facility as part of
these transactions. These sale and leaseback transactions are
collectively referred to as the “2021 AVIC Lease Financing”.
Under the 2021 AVIC Lease Financing, each vessel
is subject to a nine-year bareboat charter-in agreement. The lease
financings bear interest at LIBOR plus a margin of 3.45% per annum
and are scheduled to be repaid in equal aggregate quarterly
repayments of approximately $1.8 million. Each agreement contains
purchase options to re-acquire each of the subject vessels
beginning on the second anniversary date from the delivery date of
the respective vessel, with a purchase obligation upon the
expiration of each agreement. Additionally, we are required to
deposit with the lessor, 1% of the borrowing amount, or $1.0
million in aggregate. The remaining terms and conditions, including
financial covenants, are similar to those set forth in the
Company's other sale and leaseback arrangements.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(5) In January 2021, the Company signed an
agreement to extend the availability period under this loan
facility to June 15, 2022 from March 15, 2021. In March 2021, the
Company drew down $1.9 million from the BNPP Sinosure Credit
Facility to partially finance the purchase and installation of a
scrubber on a MR product tanker.
(6) In January 2021, the Company drew down
an aggregate of $11.4 million, which consisted of (i) $3.8 million
under the BCFL Lease Financing (LR2s); (ii) $5.8 million under the
BCFL Lease Financing (MRs) and (iii) $1.9 million under the $116.0
Million Lease Financing to partially finance the purchase and
installations of scrubbers on six product tankers. All of these
scrubber related borrowings are scheduled to be repaid over a
period of three years from each drawdown date in fixed monthly
installments (which includes interest) of approximately $50,000 to
$60,000 per vessel.
(7) In January 2021, the Company drew down
$10.0 million from the China Huarong Lease Financing to partially
finance the purchase and installations of scrubbers on five MR
product tankers. These borrowings bear interest at LIBOR plus a
margin of 3.50% and are scheduled to be repaid in equal quarterly
installments of approximately $0.2 million per vessel through
November 2023.
(8) In January 2021, the Company drew down
$2.1 million from its ING Credit Facility to partially finance the
purchase and installations of scrubbers on two LR2 product tankers.
These borrowings bear interest at LIBOR plus a margin of 1.95% and
are scheduled to be repaid in equal quarterly installments of
approximately $0.2 million per vessel through June 2022.
(9) The remaining terms on the bareboat-in
agreements for Handymax vessels under these agreements expired in
March 2021.
(10) In January 2021, the Company entered
into the Distribution Agreement with the Agent, under which the
Company may offer and sell, from time to time, up to an additional
$75.0 million aggregate principal amount Additional Notes. The
Additional Notes will have the same terms as (other than date of
issuance), form a single series of debt securities with and have
the same CUSIP number and be fungible with, the Initial Notes
immediately upon issuance. Sales of the Additional Notes may be
made over a period of time, and from time to time, through the
Agent, in transactions involving an offering of the Senior Notes
due 2025 into the existing trading market at prevailing market
prices. During the first quarter of 2021, the Company issued $14.1
million aggregate principal amount of Additional Notes for
aggregate net proceeds (net of sales agent commissions and offering
expenses) of $13.8 million. Since inception of this program and
through the date of this press release, the Company issued $17.9
million aggregate principal amount of Additional Notes for
aggregate net proceeds (net of sales agent commissions and offering
expenses) of $17.5 million.
(11) In March 2021, the Company completed
the exchange of approximately $62.1 million in aggregate principal
amount of Convertible Notes due 2022 for approximately $62.1
million in aggregate principal amount of Convertible Notes due 2025
as part of the March 2021 Exchange. Simultaneously with the March
2021 Exchange, the Company issued and sold $76.1 million in
aggregate principal amount of Convertible Notes due 2025 as part of
the March 2021 Convertible Notes Offering.
The conversion rate of the Convertible Notes due
2025 is initially 26.6617 common shares per $1,000 principal amount
of Convertible Notes due 2025 (equivalent to an initial conversion
price of approximately $37.507 per common share), and is subject to
adjustment upon the occurrence of certain events as set forth in
the indenture governing the Convertible Notes due 2025 (such as the
payment of dividends).
Commencing on the issue date of the Convertible
Notes due 2025, principal will accrete on the principal amount,
compounded semi-annually, at a rate of approximately 5.52% per
annum, which principal amount, together with any accretions
thereon, is the “Accreted Principal Amount”. The Accreted Principal
Amount at maturity will equal 125.3% of par, which together with
the 3.00% interest rate, compounds to a yield-to-maturity of
approximately 8.25%.
The Company recorded a loss on the
extinguishment of the Convertible Notes due 2022 of $3.9 million as
a result of the March 2021 Exchange which primarily arose from the
difference between the carrying value and the face value of the
Convertible Notes due 2022 on the date of the exchange.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of March 31, 2021, which includes principal amounts
due under the Company's secured credit facilities, Convertible
Notes due 2022, Convertible Notes due 2025, lease financing
arrangements, Senior Notes due 2025, and lease liabilities under
IFRS 16 (which also include actual payments made during the first
quarter of 2021 and through May 6, 2021):
| In millions of U.S.
dollars |
As of March 31, 2021 (1) |
|
Q2 2021 - principal payments made through May 6, 2021 (2) |
$ |
32.8 |
|
| Q2 2021 - remaining principal
payments |
61.1 |
|
| Q3 2021 |
72.9 |
|
| Q4 2021 |
77.9 |
|
| Q1 2022 (3) |
90.7 |
|
| Q2 2022 (4) |
265.4 |
|
| Q3 2022 (5) |
86.7 |
|
| Q4 2022 (6) |
123.1 |
|
| 2023 and thereafter |
2,389.4 |
|
| |
|
| |
$ |
3,200.0 |
|
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of March
31, 2021 and do not incorporate the impact of any of the Company’s
new financing initiatives which have not closed as of that
date.
(2) Repayments include the payment of $16.1
million on the ABN / SEB Credit Facility which was made as part of
the refinancing of the amounts borrowed for STI Westminster, which
was sold and leased back under the 2021 CMBFL Lease Financing in
April 2021.
(3) Repayments include the maturity of the outstanding debt
related to one vessel under the Citi/K-Sure Credit Facility of
$19.3 million.
(4) Repayments include the maturity of the
outstanding debt related to (i) three vessels under the Citi/K-Sure
Credit Facility of $57.6 million in aggregate, (ii) the Company's
Convertible Notes due 2022 of $89.1 million, and (iii) three
vessels under the ING Credit Facility of $44.8 million in
aggregate.
(5) Repayments include the maturity of the
outstanding debt related to one vessel under the ABN AMRO/K-Sure
Credit Facility of $18.4 million.
(6) Repayments include the maturity of the
outstanding debt related to (i) one vessel under the ABN
AMRO/K-Sure Credit Facility of $17.2 million and (ii) one vessel
under the Credit Agricole Credit Facility of $16.5 million..
Explanation of Variances on the First
Quarter of 2021 Financial Results Compared to the First Quarter of
2020
For the three months ended March 31, 2021, the
Company recorded a net loss of $62.4 million compared to net income
of $46.6 million for the three months ended March 31, 2020. The
following were the significant changes between the two periods:
- TCE revenue, a
Non-IFRS measure, is vessel revenues less voyage expenses
(including bunkers and port charges). TCE revenue is included
herein because it is a standard shipping industry performance
measure used primarily to compare period-to-period changes in a
shipping company's performance irrespective of changes in the mix
of charter types (i.e., spot voyages, time charters, and pool
charters), and it provides useful information to investors and
management. The following table sets forth TCE revenue for the
three months ended March 31, 2021 and 2020:
| |
|
For the three months ended March 31, |
| In thousands of
U.S. dollars |
2021 |
|
2020 |
|
|
Vessel revenue |
$ |
134,165 |
|
|
|
$ |
254,167 |
|
|
| |
Voyage expenses |
(1,385 |
) |
|
|
(4,220 |
) |
|
| |
TCE revenue |
$ |
132,780 |
|
|
|
$ |
249,947 |
|
|
-
TCE revenue for the three months ended March 31, 2021 decreased by
$117.2 million to $132.8 million, from $249.9 million for the three
months ended March 31, 2020. Overall average TCE revenue per day
decreased to $11,166 per day during the three months ended March
31, 2021, from $22,644 per day during the three months ended March
31, 2020. Given the onset of the COVID-19 pandemic, market
fundamentals and underlying TCE revenue during these periods
differed significantly.
-
TCE revenue for the three months ended March 31, 2021 reflected the
adverse market conditions brought on by the COVID-19 pandemic.
Demand for crude and refined petroleum products remained low during
this period as inventories that built up during 2020 continued to
be drawn, and most countries throughout the world continued to
implement restrictive policies in an effort to control the spread
of the virus.
-
TCE revenue for the three months ended March 30, 2020 reflected
strong market conditions that were the result of (i) the January 1,
2020 implementation date of the IMO low sulfur emissions standards
and (ii) the initial market conditions brought on by the onset of
the COVID-19 pandemic in March 2020. Supply and demand dynamics
shifted favorably during the fourth quarter of 2019 and early in
the first quarter of 2020, driven by the January 1, 2020
implementation date of the International Maritime Organization’s
(“IMO”) low sulfur emissions standards. The implementation of these
standards impacted the trade flows of both crude and refined
petroleum products which, combined with favorable supply and demand
dynamics at the time, resulted in improvements in daily spot market
TCE rates.Towards the end of the first quarter of 2020, travel
restrictions and other preventive measure to control the spread of
the COVID-19 pandemic resulted in a precipitous decline in oil
demand. Lack of corresponding production and refinery cuts resulted
in a supply glut of oil and refined petroleum products, which was
exacerbated by extreme oil price volatility from the Russia-Saudi
Arabia oil price war. The oversupply of petroleum products and
contango in oil prices led to record floating storage and arbitrage
opportunities of both crude and refined petroleum products. These
market conditions had a disruptive impact on the supply and demand
balance of product tankers, resulting in significant and prolonged
spikes in spot TCE rates which persisted through the second quarter
of 2020.
-
Vessel operating costs for the three months ended March 31, 2021
remained consistent, increasing slightly by $1.8 million to $83.3
million, from $81.5 million for the three months ended March 31,
2020. Vessel operating costs were impacted by a net decrease of 1.5
average vessels for the three months ended March 31, 2021 when
compared to the three months ended March 31, 2020. This decrease
was due to the redelivery of three Handymax vessels upon the
expiration of their bareboat charters in the second and third
quarters of 2020, and the redelivery of four Handymax vessels in
March 2021. Offsetting this decrease was the delivery of four MRs
under bareboat charter-in agreements; three of which were delivered
during the first quarter of 2020, and one was delivered during the
third quarter of 2020.Vessel operating costs per day increased to
$6,891 per day for the three months ended March 31, 2021 from
$6,592 per day for the three months ended March 31, 2020. This
increase was primarily attributable to (i) costs incurred to
transition technical managers for certain MRs that were acquired
from Trafigura Maritime Logistics Pte. Ltd. in 2019, and (ii) costs
incurred upon the expiration of the bareboat charters on four
Handymax vessels in March 2021.
-
Depreciation expense - owned or sale leaseback vessels for the
three months ended March 31, 2021 increased by $1.9 million to
$48.8 million, from $46.8 million for the three months ended March
31, 2020. The increase was due to the Company's drydock, scrubber
and ballast water treatment system installations that have taken
place over the preceding 12-month period.
-
Depreciation expense - right of use assets for the three months
ended March 31, 2021 decreased $1.4 million to $11.8 million from
$13.2 million for the three months ended March 31, 2020.
Depreciation expense - right of use assets reflects the
straight-line depreciation expense recorded under IFRS 16 - Leases.
Right of use asset depreciation expense was impacted by the
delivery of four vessels that were previously under construction
(three MRs in the first quarter of 2020 and one MR in the third
quarter of 2020), offset by the redelivery of three Handymax
vessels upon the expiration of their bareboat charters in the
second and third quarters of 2020 and four Handymax vessels at the
end of the first quarter of 2021. The Company had four LR2s, 18
MRs, and four Handymax vessels (whose leases expired in March 2021)
that were accounted for under IFRS 16 - Leases during the three
months ended March 31, 2021. The right of use asset depreciation
for these vessels is approximately $0.2 million per MR and $0.3
million per LR2 per month.
-
General and administrative expenses for the three months ended
March 31, 2021, decreased by $3.7 million to $13.6 million, from
$17.3 million for the three months ended March 31, 2020. This
decrease was due to an overall reduction in costs during the three
months ended March 31, 2021, including reductions in restricted
stock amortization and compensation expenses.
- Financial expenses for the three
months ended March 31, 2021 decreased by $10.7 million to $34.1
million, from $44.8 million for the three months ended March 31,
2020. The decrease was primarily driven by significant decreases in
LIBOR rates, which underpin all of the Company's variable rate
borrowings, and which have collapsed since the onset of the
COVID-19 pandemic.
Scorpio Tankers Inc. and
Subsidiaries Condensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended March 31, |
| In thousands of
U.S. dollars except per share and share data |
2021 |
|
2020 |
|
Revenue |
|
|
|
|
|
Vessel revenue |
$ |
134,165 |
|
|
|
$ |
254,167 |
|
|
| |
|
|
|
|
| Operating
expenses |
|
|
|
| |
Vessel operating costs |
(83,302 |
) |
|
|
(81,463 |
) |
|
| |
Voyage expenses |
(1,385 |
) |
|
|
(4,220 |
) |
|
| |
Depreciation - owned or sale leaseback vessels |
(48,784 |
) |
|
|
(46,841 |
) |
|
| |
Depreciation - right of use assets |
(11,841 |
) |
|
|
(13,197 |
) |
|
| |
General and administrative expenses |
(13,560 |
) |
|
|
(17,261 |
) |
|
| |
Total operating expenses |
(158,872 |
) |
|
|
(162,982 |
) |
|
| Operating
income |
(24,707 |
) |
|
|
91,185 |
|
|
| Other
(expense) and income, net |
|
|
|
| |
Financial expenses |
(34,067 |
) |
|
|
(44,765 |
) |
|
| |
Loss on Convertible Notes exchange |
(3,856 |
) |
|
|
— |
|
|
| |
Financial income |
225 |
|
|
|
565 |
|
|
| |
Other income and (expense), net |
11 |
|
|
|
(358 |
) |
|
| |
Total other expense, net |
(37,687 |
) |
|
|
(44,558 |
) |
|
| Net (loss)
/ income |
$ |
(62,394 |
) |
|
|
$ |
46,627 |
|
|
| |
|
|
|
|
| (Loss) /
Earnings per share |
|
|
|
| |
|
|
|
|
| |
Basic |
$ |
(1.15 |
) |
|
|
$ |
0.85 |
|
|
| |
Diluted |
$ |
(1.15 |
) |
|
|
$ |
0.82 |
|
|
| |
Basic weighted average shares outstanding |
54,318,792 |
|
|
|
54,667,211 |
|
|
| |
Diluted weighted average shares outstanding (1) |
54,318,792 |
|
|
|
61,692,830 |
|
|
(1) The computation of diluted loss per
share for the three months ended March 31, 2021 excludes the effect
of potentially dilutive unvested shares of restricted stock and the
Convertible Notes due 2022 and Convertible Notes due 2025 because
their effect would have been anti-dilutive. The computation of
diluted earnings per share for the three months ended March 31,
2020 includes the effect of potentially dilutive unvested shares of
restricted stock and the effect of the Convertible Notes due 2022
under the if-converted method.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In thousands of U.S.
dollars |
March 31, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
269,538 |
|
|
|
$ |
187,511 |
|
|
| Accounts receivable |
45,086 |
|
|
|
33,017 |
|
|
| Prepaid expenses and other
current assets |
9,092 |
|
|
|
12,430 |
|
|
| Inventories |
8,104 |
|
|
|
9,261 |
|
|
| Total current
assets |
331,820 |
|
|
|
242,219 |
|
|
| Non-current
assets |
|
|
|
| Vessels and drydock |
3,964,122 |
|
|
|
4,002,888 |
|
|
| Right of use assets |
794,970 |
|
|
|
807,179 |
|
|
| Other assets |
97,274 |
|
|
|
92,145 |
|
|
| Goodwill |
8,900 |
|
|
|
8,900 |
|
|
| Restricted cash |
5,293 |
|
|
|
5,293 |
|
|
| Total non-current
assets |
4,870,559 |
|
|
|
4,916,405 |
|
|
| Total
assets |
$ |
5,202,379 |
|
|
|
$ |
5,158,624 |
|
|
| Current
liabilities |
|
|
|
| Current portion of long-term
debt |
$ |
105,861 |
|
|
|
$ |
172,705 |
|
|
| Lease liability - sale and
leaseback vessels |
151,446 |
|
|
|
131,736 |
|
|
| Lease liability - IFRS 16 |
54,442 |
|
|
|
56,678 |
|
|
| Accounts payable |
14,796 |
|
|
|
12,863 |
|
|
| Accrued expenses |
27,891 |
|
|
|
32,193 |
|
|
| Total current
liabilities |
354,436 |
|
|
|
406,175 |
|
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
966,309 |
|
|
|
971,172 |
|
|
| Lease liability - sale and
leaseback vessels |
1,311,604 |
|
|
|
1,139,713 |
|
|
| Lease liability - IFRS 16 |
562,146 |
|
|
|
575,796 |
|
|
| Total non-current
liabilities |
2,840,059 |
|
|
|
2,686,681 |
|
|
| Total
liabilities |
3,194,495 |
|
|
|
3,092,856 |
|
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and fully
paid-in share capital: |
|
|
|
| Share capital |
656 |
|
|
|
656 |
|
|
| Additional paid-in
capital |
2,854,716 |
|
|
|
2,850,206 |
|
|
| Treasury shares |
(480,172 |
) |
|
|
(480,172 |
) |
|
| Accumulated deficit |
(367,316 |
) |
|
|
(304,922 |
) |
|
| Total shareholders'
equity |
2,007,884 |
|
|
|
2,065,768 |
|
|
| Total liabilities and
shareholders' equity |
$ |
5,202,379 |
|
|
|
$ |
5,158,624 |
|
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)
| |
For the three months ended March 31, |
| In thousands of U.S.
dollars |
2021 |
|
2020 |
| Operating
activities |
|
|
|
|
Net (loss) / income |
$ |
(62,394 |
) |
|
|
$ |
46,627 |
|
|
| Depreciation - owned or
finance leased vessels |
48,784 |
|
|
|
46,841 |
|
|
| Depreciation - right of use
assets |
11,841 |
|
|
|
13,197 |
|
|
| Amortization of restricted
stock |
6,192 |
|
|
|
7,845 |
|
|
| Amortization of deferred
financing fees |
1,825 |
|
|
|
1,458 |
|
|
| Write-off of deferred
financing fees and unamortized discounts on sale and leaseback
facilities |
1,275 |
|
|
|
— |
|
|
| Accretion of convertible
notes |
1,922 |
|
|
|
2,258 |
|
|
| Accretion of fair value
measurement on debt assumed in business combinations |
847 |
|
|
|
878 |
|
|
| Loss on Convertible Notes
exchange |
3,856 |
|
|
|
— |
|
|
| |
14,148 |
|
|
|
119,104 |
|
|
| Changes in assets and
liabilities: |
|
|
|
| Decrease / (increase) in
inventories |
1,157 |
|
|
|
(1,221 |
) |
|
| Increase in accounts
receivable |
(12,069 |
) |
|
|
(70,363 |
) |
|
| (Increase) / decrease in
prepaid expenses and other current assets |
(600 |
) |
|
|
2,080 |
|
|
| (Increase) / decrease in other
assets |
(147 |
) |
|
|
46 |
|
|
| Increase / (decrease) in
accounts payable |
2,428 |
|
|
|
(675 |
) |
|
| Decrease in accrued
expenses |
(6,745 |
) |
|
|
(4,869 |
) |
|
| |
(15,976 |
) |
|
|
(75,002 |
) |
|
| Net cash (outflow) /
inflow from operating activities |
(1,828 |
) |
|
|
44,102 |
|
|
| Investing
activities |
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
finance leased and bareboat-in vessels) |
(16,601 |
) |
|
|
(63,486 |
) |
|
| Net cash outflow from
investing activities |
(16,601 |
) |
|
|
(63,486 |
) |
|
| Financing
activities |
|
|
|
| Debt repayments |
(224,757 |
) |
|
|
(108,617 |
) |
|
| Issuance of debt |
273,421 |
|
|
|
73,946 |
|
|
| Debt issuance costs |
(3,643 |
) |
|
|
(1,783 |
) |
|
| Principal repayments on lease
liability - IFRS 16 |
(14,856 |
) |
|
|
(20,772 |
) |
|
| Issuance of convertible
notes |
76,100 |
|
|
|
— |
|
|
| Dividends paid |
(5,809 |
) |
|
|
(5,868 |
) |
|
| Net cash inflow /
(outflow) from financing activities |
100,456 |
|
|
|
(63,094 |
) |
|
| Increase / (decrease)
in cash and cash equivalents |
82,027 |
|
|
|
(82,478 |
) |
|
| Cash and cash equivalents at
January 1, |
187,511 |
|
|
|
202,303 |
|
|
| Cash and cash
equivalents at March 31, |
$ |
269,538 |
|
|
|
$ |
119,825 |
|
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three
months and three months ended March 31, 2021 and 2020
(unaudited)
| |
For the three months ended March 31, |
| |
2021 |
|
2020 |
|
Adjusted EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
$ |
42,121 |
|
|
$ |
158,710 |
|
| |
|
|
|
| Average Daily
Results |
|
|
|
| TCE per day(2) |
$ |
11,166 |
|
|
$ |
22,644 |
|
| Vessel operating costs per
day(3) |
$ |
6,891 |
|
|
$ |
6,592 |
|
| |
|
|
|
| LR2 |
|
|
|
| TCE per revenue day (2) |
$ |
11,947 |
|
|
$ |
25,914 |
|
| Vessel operating costs per
day(3) |
$ |
6,675 |
|
|
$ |
6,742 |
|
| Average number of vessels |
42.0 |
|
|
42.0 |
|
| |
|
|
|
| LR1 |
|
|
|
| TCE per revenue day (2) |
$ |
11,228 |
|
|
$ |
20,296 |
|
| Vessel operating costs per
day(3) |
$ |
6,646 |
|
|
$ |
6,678 |
|
| Average number of vessels |
12.0 |
|
|
12.0 |
|
| |
|
|
|
| MR |
|
|
|
| TCE per revenue day (2) |
$ |
11,281 |
|
|
$ |
20,866 |
|
| Vessel operating costs per
day(3) |
$ |
6,974 |
|
|
$ |
6,422 |
|
| Average number of vessels |
63.0 |
|
|
60.8 |
|
| |
|
|
|
| Handymax |
|
|
|
| TCE per revenue day (2) |
$ |
8,844 |
|
|
$ |
22,564 |
|
| Vessel operating costs per
day(3) |
$ |
7,280 |
|
|
$ |
6,734 |
|
| Average number of vessels |
17.3 |
|
|
21.0 |
|
| |
|
|
|
| Fleet
data |
|
|
|
| Average number of vessels |
134.3 |
|
|
135.8 |
|
| |
|
|
|
| Drydock |
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments for owned,
sale leaseback and bareboat chartered-in vessels (in thousands of
U.S. dollars) |
$ |
16,601 |
|
|
$ |
63,486 |
|
|
(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 May 6,
2021
|
|
Vessel Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Scrubber |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Owned, sale
leaseback and bareboat chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
1 |
STI Brixton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
2 |
STI Comandante |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
3 |
STI Pimlico |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
4 |
STI Hackney |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
5 |
STI Acton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
6 |
STI Fulham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
7 |
STI Camden |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
8 |
STI Battersea |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
9 |
STI Wembley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
10 |
STI Finchley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
11 |
STI Clapham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
12 |
STI Poplar |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
13 |
STI Hammersmith |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
14 |
STI Rotherhithe |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
15 |
STI Amber |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
17 |
STI Ruby |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
18 |
STI Garnet |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
19 |
STI Onyx |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
20 |
STI Fontvieille |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
21 |
STI Ville |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
22 |
STI Duchessa |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
23 |
STI Opera |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
24 |
STI Texas City |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
25 |
STI Meraux |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
26 |
STI San Antonio |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
27 |
STI Venere |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
28 |
STI Virtus |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
29 |
STI Aqua |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
30 |
STI Dama |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
31 |
STI Benicia |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
32 |
STI Regina |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
33 |
STI St. Charles |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
34 |
STI Mayfair |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
35 |
STI Yorkville |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
36 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
37 |
STI Battery |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
38 |
STI Soho |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
39 |
STI Memphis |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
40 |
STI Tribeca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
41 |
STI Gramercy |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
42 |
STI Bronx |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
43 |
STI Pontiac |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
44 |
STI Manhattan |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
45 |
STI Queens |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
46 |
STI Osceola |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
47 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
48 |
STI Seneca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
49 |
STI Westminster |
|
2015 |
|
49,687 |
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
50 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
51 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
52 |
STI Galata |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
53 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
54 |
STI Leblon |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
55 |
STI La Boca |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
56 |
STI San Telmo |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
57 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
58 |
STI Esles II |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
59 |
STI Jardins |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
60 |
STI Magic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
61 |
STI Majestic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
62 |
STI Mystery |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
63 |
STI Marvel |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
64 |
STI Magnetic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
65 |
STI Millennia |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
66 |
STI Magister (formerly STI
Master) |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
67 |
STI Mythic |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
68 |
STI Marshall |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
69 |
STI Modest |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
70 |
STI Maverick |
|
2019 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
71 |
STI Miracle |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
72 |
STI Maestro |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
73 |
STI Mighty |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
74 |
STI Maximus |
|
2020 |
|
50,000 |
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
75 |
STI Excel |
|
2015 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
76 |
STI Excelsior |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
77 |
STI Expedite |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
78 |
STI Exceed |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
79 |
STI Executive |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
80 |
STI Excellence |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
81 |
STI Experience |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
82 |
STI Express |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
83 |
STI Precision |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
84 |
STI Prestige |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
85 |
STI Pride |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
86 |
STI Providence |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
87 |
STI Elysees |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
88 |
STI Madison |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
89 |
STI Park |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
90 |
STI Orchard |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
91 |
STI Sloane |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
92 |
STI Broadway |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
93 |
STI Condotti |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
94 |
STI Rose |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
95 |
STI Veneto |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
96 |
STI Alexis |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
97 |
STI Winnie |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
98 |
STI Oxford |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
99 |
STI Lauren |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
100 |
STI Connaught |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
101 |
STI Spiga |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
102 |
STI Savile Row |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
103 |
STI Kingsway |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
104 |
STI Carnaby |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
105 |
STI Solidarity |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
106 |
STI Lombard |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
107 |
STI Grace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
108 |
STI Jermyn |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
109 |
STI Sanctity |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
110 |
STI Solace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
111 |
STI Stability |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
112 |
STI Steadfast |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
113 |
STI Supreme |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
114 |
STI Symphony |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
115 |
STI Gallantry |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
116 |
STI Goal |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
117 |
STI Nautilus |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
118 |
STI Guard |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
119 |
STI Guide |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
120 |
STI Selatar |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
121 |
STI Rambla |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
122 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
123 |
STI Gladiator |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
124 |
STI Gratitude |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
125 |
STI Lobelia |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
126 |
STI Lotus |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
127 |
STI Lily |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
128 |
STI Lavender |
|
2019 |
|
110,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
129 |
STI Beryl |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5) |
|
130 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5) |
|
131 |
STI Larvotto |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(5) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned, sale leaseback
and bareboat chartered-in fleet DWT |
|
|
|
9,223,160 |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP.
SHTP is a Scorpio Pool and is operated by Scorpio Commercial
Management S.A.M. (SCM). SHTP and SCM are related parties to the
Company. |
|
(2 |
) |
This vessel operates in 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 |
) |
In April 2017, we sold and leased back this vessel, on a bareboat
basis, for a period of up to eight years for $8,800 per day. The
sales price was $29.0 million per vessel, and we have the option to
purchase this vessel beginning at the end of the fifth year of the
agreement through the end of the eighth year of the agreement, at
market-based prices. Additionally, a deposit of $4.35 million per
vessel was retained by the buyer and will either be applied to the
purchase price of the vessel if a purchase option is exercised or
refunded to us at the expiration of the agreement. |
Dividend Policy
The declaration and payment of dividends is
subject at all times to the discretion of the Company's Board of
Directors. The timing and the amount of dividends, if any, depends
on the Company's earnings, financial condition, cash requirements
and availability, fleet renewal and expansion, restrictions in loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2020 and 2021 were as
follows:
|
Date paid |
Dividends per commonshare |
|
March 2020 |
$0.100 |
|
June 2020 |
$0.100 |
|
September 2020 |
$0.100 |
|
December 2020 |
$0.100 |
|
March 2021 |
$0.100 |
On May 6, 2021, the Company's Board of Directors
declared a quarterly cash dividend of $0.10 per common share,
payable on or about June 15, 2021 to all shareholders of record as
of May 21, 2021 (the record date). As of May 6, 2021, there
were 58,369,516 common shares of the Company outstanding.
$250 Million Securities Repurchase
Program
In September 2020, the Company's Board of
Directors authorized a new Securities Repurchase Program to
purchase up to an aggregate of $250 million of the Company's
securities which, in addition to its common shares, currently
consist of its Senior Notes due 2025 (NYSE: SBBA), which were
originally issued in May 2020, Convertible Notes due 2022, which
were issued in May and July 2018, and Convertible Notes due 2025,
which were issued in March 2021. No securities have been
repurchased under the new program since its inception through the
date of this press release.
At the Market Equity Offering
Program
In November 2019, the Company entered into an
“at the market” offering program (the "ATM Equity Program")
pursuant to which it may sell up to $100 million of its common
shares, par value $0.01 per share. As part of the ATM Equity
Program, the Company entered into an equity distribution agreement
dated November 7, 2019 (the “Sales Agreement”), with BTIG, LLC, as
sales agent (the "Equity ATM Agent"). In accordance with the terms
of the Sales Agreement, the Company may offer and sell its common
shares from time to time through the Equity ATM Agent by means of
ordinary brokers’ transactions on the NYSE at market prices, in
block transactions, or as otherwise agreed upon by the Equity ATM
Agent and the Company.
There is $97.4 million of remaining availability
under the ATM Program as of May 6, 2021.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns, finance leases or bareboat charters-in 131
product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and
14 Handymax tankers) with an average age of 5.3 years. Additional
information about the Company is available at the Company's website
www.scorpiotankers.com, which is not a part of this press
release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS
Financial Information
This press release describes time charter
equivalent revenue, or TCE revenue, adjusted net income or loss,
and adjusted EBITDA, which are not measures prepared in accordance
with IFRS ("Non-IFRS" measures). The Non-IFRS measures are
presented in this press release as we believe that they provide
investors and other users of our financial statements, such as our
lenders, with a means of evaluating and understanding how the
Company's management evaluates the Company's operating performance.
These Non-IFRS measures should not be considered in isolation from,
as substitutes for, or superior to financial measures prepared in
accordance with IFRS.
The Company believes that the presentation of
TCE revenue, adjusted net income or loss with adjusted earnings 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 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 per share, basic and diluted, and adjusted EBITDA
may not be the same as reported by other companies in the shipping
industry or other industries.
TCE revenue, on a historical basis, is
reconciled above in the section entitled "Explanation of Variances
on the First Quarter of 2021 Financial Results Compared to the
First Quarter of 2020". The Company has not provided a
reconciliation of forward-looking TCE revenue because the most
directly comparable IFRS measure on a forward-looking basis is not
available to the Company without unreasonable effort.
Reconciliation of Net Loss to Adjusted Net
Loss
| |
|
For the three months ended March 31, 2021 |
|
| |
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
Amount |
|
basic |
|
diluted |
|
|
|
Net loss |
$ |
(62,394 |
) |
|
|
$ |
(1.15 |
) |
|
|
$ |
(1.15 |
) |
|
|
| |
Adjustments: |
|
|
|
|
|
|
| |
Loss on Convertible Notes exchange |
3,856 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
| |
Write-off of deferred financing fees |
1,275 |
|
|
|
$ |
0.02 |
|
|
|
$ |
0.02 |
|
|
|
| |
Adjusted net loss |
$ |
(57,263 |
) |
|
|
$ |
(1.05 |
) |
|
(1) |
$ |
(1.05 |
) |
|
(1) |
(1) Summation difference due to rounding.
There were no Non-IFRS adjustments to the Net Income for the
three months ended March 31, 2020.
Reconciliation of Net (Loss) / Income to Adjusted
EBITDA
| |
|
For the three months ended March 31, |
| In thousands of
U.S. dollars |
2021 |
|
2020 |
|
|
Net (loss) / income |
$ |
(62,394 |
) |
|
|
$ |
46,627 |
|
|
| |
Financial expenses |
34,067 |
|
|
|
44,765 |
|
|
| |
Loss on Convertible Notes exchange |
3,856 |
|
|
|
— |
|
|
| |
Financial income |
(225 |
) |
|
|
(565 |
) |
|
| |
Depreciation - owned or finance leased vessels |
48,784 |
|
|
|
46,841 |
|
|
| |
Depreciation - right of use assets |
11,841 |
|
|
|
13,197 |
|
|
| |
Amortization of restricted stock |
6,192 |
|
|
|
7,845 |
|
|
| |
Adjusted EBITDA |
$ |
42,121 |
|
|
|
$ |
158,710 |
|
|
Forward-Looking Statements
Matters discussed in this press release may
constitute forward‐looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward‐looking statements in order to encourage companies to
provide prospective information about their business.
Forward‐looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "target," "project," "likely," "may," "will," "would,"
"could" and similar expressions identify forward‐looking
statements.
The forward‐looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although management believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, there can be no assurance that the
Company will achieve or accomplish these expectations, beliefs or
projections. The Company undertakes no obligation, and specifically
declines any obligation, except as required by law, to publicly
update or revise any forward‐looking statements, whether as a
result of new information, future events or otherwise.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward‐looking statements include unforeseen liabilities, future
capital expenditures, revenues, expenses, earnings, synergies,
economic performance, indebtedness, financial condition, losses,
future prospects, business and management strategies for the
management, length and severity of the ongoing novel coronavirus
(COVID-19) outbreak, including its effect on demand for petroleum
products and the transportation thereof, expansion and growth of
the Company’s operations, risks relating to the integration of
assets or operations of entities that it has or may in the future
acquire and the possibility that the anticipated synergies and
other benefits of such acquisitions may not be realized within
expected timeframes or at all, the failure of counterparties to
fully perform their contracts with the Company, the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand for tanker vessel capacity, changes in the Company’s
operating expenses, including bunker prices, drydocking and
insurance costs, the market for the Company’s vessels, availability
of financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off‐hires, and other factors. Please
see the Company's filings with the SEC for a more complete
discussion of certain of these and other risks and
uncertainties.
Scorpio Tankers Inc.212-542-1616
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