Hello, and welcome to Scorpio Tankers Inc. First Quarter 2021 Conference Call. I would like to turn the call over to Brian Lee, Chief Financial Officer. Please go ahead, sir. Thank you, Stephanie, and thank everyone for joining us today. Welcome to the Scorpio Tankers first quarter earnings conference call. On the call with me are Emanuele Lauro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Lars Dencker Nielsen, Commercial Director, David Morant, Managing Director, and James Doyle, Senior Financial Analyst. Earlier today, we issued our first quarter earnings press release, which is available on our website, scorpiotankers.com. The information discussed in this call is based on the information as of today, May 7th, 2021, and may contain forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statement disclosure in the earnings press release that we issued today, as well as Scorpio Tankers SEC filings, which are available on our website and at sec.gov. Call participants are advised that the audio of this conference call is being broadcast live on the internet and is also being recorded for playback purposes. An archive of the webcast will be made available on the investor relations page of our website for approximately 14 days. There are slides available at scorpiotankers.com on the investor relations page under reports and presentations. For those asking questions, please limit the number of questions so everyone has a chance. If you have specific modeling questions, you can contact me later and discuss offline. I'd like to introduce Emanuele Lauro. Thank you, Brian. Thanks, everybody, for being here today with us. We can now see a rapid recovery in many major economies. We're seeing a rapid return to normalization, with many countries having achieved significant milestones in their vaccination programs. This has happened in a relatively short time. In contrast, the situation in India does not go unnoticed to us, and our thoughts are with our Indian colleagues and their families. We continue to focus on what we can do to offer assistance and support to them both ashore and at sea. From a balance sheet perspective, our liquidity position has continued to strengthen, and our cash position is higher now than it was in February during our last earnings call. With a cash balance of $280 million and additional liquidity from committed financing and financing under discussion, our pro forma liquidity will be at $367 million. We have confidence in the continued recovery. Inventories are rapidly normalized, and refinery throughput is forecast to rise by close to seven million barrels per day between now and August. There has always been a higher correlation of product tanker rates to these rebounding GDP numbers. Seaborne product exports are expected to increase as much as close to 7%, high 6%, in 2021, and there are other strong and more durable trends at play at the moment. For example, we believe a secular improvement in ton-miles demand will be one of the lasting impacts of the pandemic due to an acceleration in refinery closures through the period. Combined with the opening of major modern refineries, particularly the substantial projects in the Arabian Gulf, we see this as a shifted demand curve. The supply picture gives confidence that this recovery can be multi-year. In fact, the product tanker order book is at record low levels with 6.4% of the fleet on order. The product tanker industry fleet is aging, and new environmental rules will further challenge the economics of operating older tonnage and increase scrappage in coming quarters. Fleet replacement costs are going up, and this, in turn, drives improvements in the mark-to-market value of our modern fleet. Yards are full of orders in other asset classes, and lead time is increasing, and prices for new buildings are clearly escalating. The shortage of berths will have a clear impact on tankers. There have been only 19 product tankers ordered year- to- date. In our view, the on-the-water product tanker fleet will struggle to demonstrate much net growth at all over the coming years, as 156 product tankers will turn 15 years old in 2021 alone. This is one of the most benign supply pictures on record. We think that the company is well-positioned to capture the opportunities from the near-term rebound in demand, and we have increasing confidence this will proceed a multi-year upswing. With that, my remarks are over, and I would like to turn the call to Robert. Hi. Hello, everybody. I think the recovery has clearly started in the world's use of petroleum products. I think that as far as the product tanker market is concerned and rates, it's a little bit like the quiet before the storm because the recovery that we're seeing is being disguised in April, simply by the very large turnaround and maintenance period that the world refineries complex have gone under. They just started to come back up this week. There's been an almost instant response in upward rate trajectory and demand. We've seen on the indexes 20% and 30% increases in MR rates just in the last two or three days on the indexes. The markets are tightening in terms of demand for next week in Asia. I think that some people may feel that a recovery is being delayed, but that's not the case. The recovery is there in terms of headline demand. We can see it, the U.S. vaccinations opening up. The U.S. is almost fully open now. Europe is in a much different position than where it was just four weeks ago. That's going to slowly open up. The Asian economies are doing fantastic. Obviously, we're all concerned about India, but on a net basis, this market's demand side has been moving very solidly in the last few weeks, and those rates are only going to go up in one direction as refinery utilization comes back. I know there'll be other times to talk through the call, but that's the sort of major thing I wanted to put in people's minds right now. I'll just hand that over now to Lars, the head of trading. Great. Thanks, Robert. Going back 12 months ago, COVID-19 rattled global commodity markets. Global lockdowns created the negative oil demand shock, where the speed of decline in demand occurred much faster than the supply side could respond, sending oil prices into negative territory. This has now shifted decidedly into positive territory. Benchmark crudes are pushing $70 with risk to upside. Also back then, global land-based inventories of refined products filled up. The customers turned to product tankers to store the excess supply, leading to the surge in floating storage that we saw and global inventories. Last May, refined product floating storage reached 109 million barrels. This has now shifted. We are today at a 24-million-barrel level. Patience is a virtue. Just as we all grow more eager each day for more normality, it's very much the same for the recovery in refined products and rates. The good news is that we do not have to be patient for too much longer. On a call last year, I said the catalyst for the recovery in product tanker demand, and consequently rates, were going to be vaccinations. We can see the increase in vaccinations translate to an immediate increase in personal mobility, which increased demand for gasoline, jet fuel, and diesel. We're now seeing this increase in vaccinations globally. There is still a way to go with an asymmetric pandemic recovery. It is clear that as vaccinations increase in a population, with offices and businesses opening, the much-delayed vacation is booked, and miles driven and flown are increasing. The consumers are stepping up spending on a scale not seen for decades, led by the U.S. and China. With about 45% of the U.S. population receiving one vaccine dose, refinery utilization and refined product imports have increased while inventories remain flat, suggesting the much -anticipated sharp increase in demand from an increasingly vaccinated population. In real terms, total U.S. refinery utilization since the polar vortex event in February has increased over 30% - 87% as of last week. This is the highest level reported since March of 2020. Incidentally, the vortex also helped take out a staggering 60 million barrels of additional product storage. Several Gulf Coast refineries were offline due to the emergency shutdown, accelerating the rebalancing of Atlantic Basin product inventories. Now, in addition to this increase in refinery utilization, Kpler data show close to six million barrels of seaborne gasoline arrived on the U.S. Atlantic Coast last week, with an estimate that another six million would arrive this week. This is the largest influx reported since 2017. Bear in mind, this didn't increase stock levels, which remain at five-year average stock levels. Now, as Robert mentioned, refineries are also coming out of maintenance. They're priming their engines at the end of the first quarter and early Q2 for the anticipated demand increase. We calculated roughly 10 million barrels per day offline between March and May. The refineries will require this maintenance work as the IEA oil market report indicates an increase of 6.8 million barrels a day; refinery runs increased by August. At least a third of this volume we see hitting the export markets. We have also noted lately, internally, an uptick in medium- to long-term time charter interest from major oil market participants, which also provides a strong leading indicator that an inflection point is near. Latin America will be an important area to follow as the continent begins to move out of its pandemic-induced lockdown. We can see already from Apple Mobility Trends that cities in Mexico and Brazil are firming, and Chile is on the cusp. We experienced the shift in the product tanker trade already, as Mexico has returned to importing cargos in size. I think these indicators are key to understanding what lies ahead as much as the volatility we see now in the front end, foretelling rapid changes in supply and demand as economies start firing up on all cylinders and emerge out of lockdown. The latest example of this trend is certainly the U.S. Gulf clean MR market spiking just yesterday, 30%, after a prolonged lull in activity due to the varying lockdown factors that I mentioned and the impact from the refinery maintenance, reducing overall seaborne volumes. Finally, I would also like to bring in the important factor of refinery closures and the positive impact this will have on increased ton-miles and additional tonnage demand. We see a lot of that going on, in particular in the Eastern Hemisphere. Whether it's the overall or pent-up demand driven by the increased mobility in key import regions, the new trading patterns from changes in the refining landscape, an increase in underlying ton-miles, or the benign and historically low newbuild order book and the rising price of steel, the vaccine roll, and the continued stimulus, we have remained patient, continually focused on operations optimization, and now certainly look increasingly optimistic forward to the sustained recovery of the product tanker market. Thanks. That's all from me. Unless any of my colleagues have anything to add, operator, we're ready to open up for questions. Thank you. At this time, if you'd like to ask an audio question, please press star followed by the number one on your telephone keypad. Once again, that is star one to ask a question. Your first question is from the line of Omar Nokta of Clarksons Securities. Thank you. Hey, guys. Good morning. I think you framed pretty nicely how the market is set up for a real recovery. Just wanted to ask about the state of Scorpio at the moment, and with regards to liquidity, it's remained pretty solid, I think, despite the fact that rates overall haven't really been that fantastic. There have been pockets of strength, but it's very interesting that in February, your last earnings report, you had shown a cash position of $204 million, and now it's risen to $280. Just simply put, what's your comfort level with the current liquidity situation at Scorpio? I think that we're very comfortable right now. I think we're, as we said back in February, you have to anticipate liquidity. You can't just sort of get liquidity when you feel like it. What you're seeing today is really the work that was done in February, as it were, in March. In terms of comfort, look, in February, just four or five weeks ago, people were worried about Europe, worried about whether or not countries like Germany, France, and Italy would get the vaccinations. Now Germany is crossing 30% of vaccinated people now. They're even now considering some opening up, the same as France and Italy. Great strides. They're almost that same speed, and Germany is vaccinating at a speed higher than the United States did, and we could see what happened in the United States in two or three months. Today, of course, it probably looks as if we've got too much liquidity, if that's possible for a shipping company. I think it's pretty clear that we feel that the spot market has already started to accelerate upwards out of this refinery season from Lars' presentation. We're seeing really good confirming data in inventories, world inventories of products in the United States, etc. I think that very shortly, we're going to reach that critical point for us of around $17,000 a day where we're covering everything, our amortization, as well as everything else. Then clearly we start to build cash just through operations. We have clear positions. We can, at that point, have a combination of building cash and paying down debt. Buying back stock, as we've said before, is going to be a clear incentive for the company, especially when already our stock is trading so significantly below NAV. I think we have to look at the last two months, not just that the company has built its liquidity, but that its asset base has strengthened so much. Assets are up 10% to 15%. The company's NAV is up, depending on your own calculation, somewhere between 35% and 45%. Very hard to, under any calculation, get an NAV at the moment that's much less than $25 on the low side. If asset values go up just another 10%, that's going to take the NAV well up into the thirties, along with the fact that even at these rates, we're having some contribution to NAV. We're in a very different environment right now, where, as you said, we're through the refinery turnarounds, we're through the de-stocking, and we're through the critical point of vaccinations in Europe. Yes, we're very happy with the liquidity that the company has at the moment. Thanks, Robert. Yeah, just maybe a follow-up to that. The terms of too much liquidity. Clearly, as you just outlined, we're seeing a lot of activity across the shipping sale and purchase market. Even in tankers, especially, there's been a lot of vessels changing hands at firm prices. Like you say, there is upward pressure on NAV, and as opposed to assessments, it's actually deals being done. Maybe just for clarity, given the dislocation between the stock price and where NAV is, and the plenty of liquidity that you have, buying back stock, is that something that you see as an opportunity to do here in the near term? Or do you want to wait for that trigger of that $17,000 breakeven and then start to buy back stock? Any indication you can give on that front? I don't think it would be beneficial for us to get cheap prices to anticipate the exact time as to when we would enter. I think the one luxury that the company has is that all it has to do is buy in open periods, and it doesn't have to report its activities. I think that we've answered that as well as we can, that at +17, we're going to be building more cash. You have to start doing things about it right prior to 17. Right now, you could just take the choice because, looking at it, we've not just got $280 million of cash on the balance sheet. We've got another $20 million coming Tuesday. That's $300 million. Then we've got the other stuff there. We do think that this market is strong there. That's the wonderful position we're in now, is we're totally flexible, so we could anticipate things as opposed to waiting for things. If that answers the question you're asking, Omar. It does. Thanks, Robert. Well said. Thank you. I'll turn it over. In that case, we would hope that the shorts continue to provide us with the liquidity that we would like. Your next question is from the line of Jon Chappell of Evercore ISI. Thank you. Good morning or good afternoon. Robert, going on that previous topic that Omar brought up on liquidity. We've been talking about liquidity for 12 months now, obviously the most integral part to staying afloat, so to speak, during this difficult time. You guys just laid out a very optimistic view on the market starting effectively today. You're still planning on adding liquidity mostly through debt in the coming months and quarters. How do those kind of line up? Don't you feel like you have enough at this point? You should be thinking about deleveraging, which was your plan at this time last year, as opposed to adding more leverage, if the future is so bright. Yeah, I think you're exactly right, Jon. I suppose I may not have made it clear to Omar, but we've clearly got those choices as these rates go up now of getting that mixture. You don't expect, in just the same way as we saw in dry bulk, that in the first part of the recovery, stocks do tend to trade a lot below NAV. They gather, and then they start to match off against NAV. As I said, I hope I said the previous thing, you're going to be able to do both or one. You are going to be able to retire debt fairly quickly. You're going to, at the same time, have that excess too, perhaps just for a short time, to take advantage of quite a big disparity between the pricing. You can do both. Okay The correct thing to do was to continue to build liquidity until we saw that we were 100% through things. Go back seven or eight weeks ago when many of these instruments were put in to create the liquidity. At that time, the world was worried about Europe, if you remember. Very worried about Europe. The U.S. hadn't opened up, et cetera. It's a little bit like government. You've got to overshoot. What we've done is right now things have gone fantastic. As we said, the market's recovering nicely. Rates are really going to start moving over these next days and weeks simply because the refinery turnarounds will finish. We didn't think it was prudent to rely on that. You can always deal with a situation like we have now, where we would expect to have, in theory, too much liquidity. That would be to pay off debt and/or buy back stock. Okay. As I look at this slide 12, which has a nice little step chart of liquidity you're taking on by the end of the second quarter. I guess, is it too late to walk away from some of those? Would you just gather that cash, and then as you see the inflection in the actual earnings, then you start to pay down other facilities? Yes, I understand. You may not want to walk away from those, because those are being negotiated at very good figures. We don't have any bank or normal finance to do for two more years. These ones are reflecting perhaps stronger terms than some of the ones before. What you would be negotiating in front of you would be less costly than what you could buy out from behind you. So there's— Like some of the bonds? Yeah. Some of the bonds and some of the lease positions, too. I think it's a great thing. It's fantastic that we're both here chatting about what to do with excess liquidity. That's great. Yeah. Big shift in that. Great for a company that's trading at 60% of NAV. Understood. All right. That's all I have. I'll turn it over. Thanks, Robert. Thank you. Your next question is from the line of Greg Lewis with BTIG. Yes. Thank you. Good afternoon and good morning, everybody. Robert or Lars, I'd be curious on your thoughts. It's something that more people have been flagging to us around the EEXI, the energy efficiency impact. Is that one of the main reasons why you're calling out the 15-year-old vessels as aggressively as you are in these slides? Any kind of color around that? How should we be thinking about that? It seems like it's early days in that process. Just curious on your thoughts around that. I'll just answer first. Lars. We really believe in this 15-year-old rule. We've made a recent announcement from the pools that we're not for our ships in a fleet but for other ships, and we're opening pools, kind of developing pools for vessels that specifically turn 15 years old and would not be qualifying for our own clean petroleum product pools. Those pools would be trading in different trades than our own particular vessels. We're not the only ones who believe it. You're seeing other owners. You're seeing Ardmore Shipping, Hafnia, Torm, and all the product owners, Diamond S Shipping, before they were sold, aggressively selling vessels, product vessels, as they approach 15 years old. We're seeing financers look at that 15-year rule for clean petroleum products. Most importantly, it's the customers that do this. Lars, would you like to add to this? It certainly is. Taking a step back, to understand that the EEXI, which is the Energy Efficiency Existing Ship Index, follow onto that, you get something called a Carbon Intensity Indicator, which basically is like a report card where the vessel that you have has a rating between A and E. There's a lot of wood that's still being chopped from a government perspective. This whole thing is expected to be adopted on, I think it's in June 2021, with entries going to take force on January 2023. Of course, what it's all about is trying to calculate the carbon emission per deadweight. As modern ships are more efficient than older vessels, there is going to be an increasing gap between the super eco vessel and the non-eco vessel that's going to play out as we go forward. There's going to be a competitive advantage for those who have fleets with modern eco vessels versus older vessels that certainly are going to have very great difficulty in not being able to comply. What do you then say? If you can't comply with your baseline, you've got to think about what to do. You could put in some energy-saving devices. You can reduce your deadweight. You can reduce your main power output. All three of those will skew the competitive advantage towards the super eco -modern vessels. If I just take a stop here and say that this is also one of the reasons why we can see that for a lot of the customers that we have in the oil majors, oil traders, and so on, they're all pivoting away from the older units, and all when they want to look at time charterers today, all want to go for modern units because this thing is going to come to a cinema near you, and it's something that's going to have a big difference in how you really want to say what is a competitive vessel and what is not a competitive vessel because some of them are going to have to make some drastic measures to actually reach their carbon calculation index. Okay, great. [inaudible] Oh. Okay, yeah, thanks. Sorry. No, thank you for that. That was super helpful. I guess there's some news now that India has announced that they're going to start taking the full allocations that they get from Saudi Arabia. Are we starting to see, realizing that they have to get the crude refined before they export it, are we starting to see any activity around that around India, in terms of them ramping up their crude demand again? I think in the short term, you should expect that Indian crude demand is going to be flat and maybe slightly decreasing. What's interesting here is that Indian refineries in general have always run, or have been running, for the last period, somewhere between 95% and 100%. Even though you could say that there's going to be a decrease naturally for internal demand, exports for India are kind of strategically put as a very important piece of the puzzle, and I do not foresee that refineries are going to be slowing down as they will start increasing the exports margin. We have seen some of this. Some of the smaller ones, I think it's MRPL and so on. They are coming out offering additional cargoes in the May window, from distillate and gasoline. For the product side, we don't do that much importing into India. India is very much an export-oriented part of the world from a product tanker perspective. The refineries are still going at full tilt. Okay. Perfect. Thank you. Your next question is in the line of Randy Giveans with Jefferies. How are you doing? How's it going? Hi, Randy. For the quarter-to-date rate guidance, obviously this is well above some broker averages. Can you maybe quantify that outperformance in terms of an eco premium versus scrubber premium? Then also, by looking at those quarter-to-date rates, it seems like 2Q should be much better, right, than 1Q. With that, compared to the first 50% of the quarter that's been booked, what kind of rates do you see for maybe the back half of the quarter? Randy, we don't give rate guidance, as you know. This quarter is going to be very wide in its actual rate dispersion because of what you have going on, if we start with the OPEC headline itself, they're going to be pumping more crude and crude equivalents every single month, mounting it up all the way through this quarter itself. The next part of the equation is that everybody agrees that we are going to see more refinery utilization step up all the way through between now and July and August. That is going to be happening again, on a weekly, monthly basis. The third thing that's going to happen is that we would expect headline demand to just keep going up, too, as Europe moves forward and as the United States moves to its traditional driving season as well. We're also seeing, on top of this, the beginnings this is very exciting, which are the beginnings of the recoveries of South American demand. Mexico is opening up. Chile is opening up. These things are relentless. We are against this. We have a fixed supply curve. Very few deliveries of vessels are coming into the market. We have refinery changes. We have older, less efficient refineries continuing their closing down. The most efficient, newest, and biggest refinery in the Middle East is gradually coming up in this second quarter. We're already, as Lars is pointing out, we have a market, and you pointed out in your introduction, we've had a market that, despite the refinery turnaround, hasn't fallen apart and is showing signs of balance that's enabling a very wide, disparate, fragmented market under a lot of pressure, i.e., the MR market in the U.S. Gulf to gap 30% in two or three trading days. That tells you we're starting off with, albeit not great rates, but we're starting off with a market that is actually balanced. You could see some pretty steep rates. As they come out, they're not going to necessarily be in nice lines to predict. I think that it's reasonable to expect that the rates at the end of the quarter are going to be significantly higher than right now. It's hard to work out exactly where that's going to be. Sure. We've never faced a situation in our careers where you are just having this steady drumbeat of accelerated demand and accelerated ton-mile multiplier for such a long period, and it's not going to stop in August either. It's going to continue forward. Also, we don't know what's going to happen when Europe starts coming on. Think about it: the United States has imported an awful lot of barrels of gasoline in the last few weeks to make up for its own shortfall in gasoline production related to its burgeoning use of gasoline. When Europe starts to step up and use gasoline and jet fuel itself, where does the United States get that from? If it has to go get it from Asia, all bets are off at that point. The last point is, we're so used to having the third quarter being a very quiet quarter, the worst quarter in the product market. That isn't going to be happening this year because you've just got this continued estimate of demand increases all the way through the year into next year. Got it. All right. Not necessarily asking for a forecast for the next few weeks. No, I understand. I'm just making sure there wasn't some pulled -forward reporting from either an accounting or an operations standpoint— No ...that the next few weeks are going lower. No, I apologize. No. There's nothing. There's no pull forward, nothing. Okay. We haven't even rounded figures upwards. The figures that Brian's given you are what they are. Okay. I guess one more question. Obviously, there is much concern, and we've talked about it for a while here on the call about your liquidity position, upcoming CapEx, and debt repayments. A few minutes ago, you mentioned rates at 17, 18, and 20 will fix everything. I agree with that. If rates stay at current levels for maybe an extended period of time, what other options do you have to raise capital to satisfy these debt obligations other than common equity issuance, right? That's the question we've been getting. When are they going to have to issue common equity? How would you rank these other options ahead of that? Okay. I would be fairly convinced that if the people who'd asked you about the equity thing certainly wouldn't be starting off with where we are, with what we announced today with $280 million in cash. I would be really positive that they had no idea that that was the starting point. You're starting from a huge amount of liquidity to start with: $360 million, $370 million. If you think about what's happened in the balance sheet in the last 60 days, you're taking a super pessimistic view. Basically, you're intimating no world growth, there's some real crisis that's going on, et cetera. You've still got runway in what we've been doing. We by no means have exhausted all of our means of getting liquidity. The raising of equity isn't anywhere in the position. Above that, are you selling ships? You've got continuing what we've been doing before with the baby bonds, continuing what we've been doing before with the sale leasebacks. We've got some refinancing of some of the deals in the past that instead of buying those ships back, which you would do. You'd use the call option to buy them back. You could use the call option either to sell or to refinance. What you're indicating is a tremendously extreme situation that wouldn't be Scorpio -specific. It would be the whole world market, specifically. Sure. Good deal. Well, I think you covered it well. Thanks so much. No problem. Thank you. Your next question is on the line of Ken Hoexter with Bank of America. Hey, good morning. Robert, you just mentioned no seasonality, maybe looking through the pattern through the year as reopening shifts. Is there anything that we are going to talk about in the quarter that didn't meet that expectation? Is it just maybe the COVID shutdowns linger, or you don't see the demand return? Maybe it is the storage unwind of those 24 million barrels that continues to pressure rates? Just want to see what the counter-story could be that we could come back and talk about in the second quarter. I think maybe. I think we've had some of that. I think these refinery turnarounds were deeper than what people could have expected. I think that part of that is the sheer preparation that people are taking for what they anticipate is going to come in front of them. These demand outlooks for products are huge. You start opening up these countries, and you start the U.S. driving season, and things can get a little bit wacky. We've had the drawing down of the inventories. Yes, there's a possibility that people could continue to draw down those inventories and delay a spiky second quarter, but then they'd be setting themselves up for super volatility once they get to July. You're at that point where it's pretty important to realize that the U.S. has already been, let's say, borrowing from the imports that have come in from other areas and been able to get away with not building in front of gasoline season so far because they've had access to this product from Europe. As that goes away, as they grow and the U.S. continues to grow its use. Just to clarify that then, Robert, on your seasonality comment, you're still seeing sequential acceleration ignoring seasonality, right? Yeah. For the second quarter. Yeah. [inaudible] Yeah, we're seeing this all the way through. If we work it backwards. Yeah We would expect the first quarter of next year to be stronger in its seasonality than the fourth quarter. Prior to the fourth quarter, it's not about the seasons. The seasons get trumped by the opening up of travel and petroleum product use. Okay. Because it's been delayed. I mean, We do anticipate that Europe will just be using more gasoline and jet fuel in the third quarter than it will be using in the second quarter. We see that U.S. travel again will just continue to accelerate. You get into the fourth quarter after that, where you have the normal strong seasonality. It's very, it's quite unusual. I'd like to get out of the house. Yeah. Yeah, I definitely want to get out and about. For my follow-up, is there any impact yet on the market or how you're going about it, or do you see business progressing on things like the Diamond S, International Seaways consolidation, and then is there a fear that, as you get healthier carriers, stronger balance sheets, and Emanuele mentioned, kind of a very light order book, do you see the orders then start to pick up and end the parade as it gets started? It's just, we sometimes see that on the container side. Yeah. They're two great questions. I'll take the last one first: the booking order, the bookings for containers, dry bulk, and LNG. I mean, there are some huge LNG orders going into this market at the moment. All of those bookings are driving any ability to order product tankers in a significant size well away. That, in combination with the aging of the fleet coming to 15 years, is what's creating a really critical situation and a great opportunity for the product tanker shareholders. I think that it's pretty much already at the level where I'll be self-deprecating to our ship owners, where we can't screw it up. Not even the ship owners can screw this up. I don't know where you would look to build an order book for products until we get into 2024, when you can get back to the levels just to keep pace with the vessels that are turning 15 years old. That part is sound. Is very good in the sense that, yes, even if we do have rates that are going like nuts, it will be hard because of what's happening in containers and dry and gas for even us owners to screw the supply side up for a while. On the front side, what owners are doing is very good anyway. These consolidations we're seeing, you pointed out Diamond S and INSW, are extremely good. Extremely good for pricing, for actual assets, and extremely good for order in the market and consolidation in the market. We're also seeing a lot of individual one- and two -vessel purchases by stronger owners, sold by weaker owners. That's good. You're seeing the top commercial operators, the Hafnias, the Torms, the Maersks, the Nordens, and the Scorpio Group, adding vessels constantly to their pools. That's a form of great consolidation. You're also seeing charters, traders time charter vessels in, which also adds to consolidation. The product market is much more consolidated already than it was this time last year and continues to be so, which is also going to be an important factor in terms of accelerating rates outwards and maintaining strength of rates going through. That would already indicate that during these last three or four weeks, during the peak of the refinery turnaround, product rates haven't really fallen apart like crude rates did because you've really got some good consolidation in that product market now. Wonderful. Thank you very much for the time and thoughts and insight. Good. Your next question is from the line of Amit Mehrotra of Deutsche Bank. Thanks, operator. Hi, everybody. I wanted to go back to the liquidity question because I guess something's being lost in translation to me because it sounds like you guys are super bullish about your liquidity market, and the message you're sending is everything's fine here when based on my analysis, it just seems like that's totally false. I think you guys don't have enough liquidity, and I want to give you the opportunity to correct me if I'm wrong. First and foremost, Brian, the $360 million or $370 million of cash on the balance sheet that is pro forma for the additional leverage, is that net of minimum liquidity covenants or not net of minimum liquidity covenants? It's not net. Minimum liquidity covenants are $60 million, and we don't subtract that out of there. That's total cash. You have to keep it on the balance sheet. That $360, $370 is basically now $300-$310. Against that $300-$310 pro forma, you've got $600 of debt repayments over the next 12 months. The question I have is, where I could be wrong here, is there a way to restructure that $600 of which a big chunk is in the second quarter of next year? What do you think the deep debt repayments over the next 12 months need to be or can be relative to what they are today, which is $600 million? It's on a normalized amortization. It's $70 million-$80 million a quarter. We'll call it $75. It's just under $300 million a year. When facilities are coming due, we show it in that schedule. Facilities are coming due. It's part of that number that we say is coming due over the period of time. That's why you see an elevated number in there. As we have seen from day one of this company, we've been able to refinance our debt when it comes due. We have that ability as well. $75 -$ 80 is basically the number we should use. The implication is that the net liquidity you have today, pro forma, $300 million, is basically equivalent to the pro forma smoothed -out debt maturities over the next 12 months. How do you have a lot of liquidity then? How do you have more liquidity than you need? We're going to assume that our vessels are going to earn some money along the way, right? We know that 1,000 does a lot of damage, right? Those $48 million of revenue. You times that by 10, by 15, it comes up to be a pretty good number. I know, you've been assuming that for three years, and that hasn't really occurred on a sustainable basis. The question I have is, do you plan to over the next 12 months? Don't you have to plan that you don't earn $17,000 a day or $15,000 a day? Hopefully, you do. I really hope everybody does in the market. Just given history, from a planning perspective, don't you have to plan that you don't earn that much? Absolutely. Plan B and Plan C? Amit. Yeah. Look, I appreciate a lot has happened in the last three months since we last spoke or you looked at the company. The primary thing is you've seen we continue to increase liquidity with rates being fairly low, that we have other sources to do it. We just simply believe, for the reasons that we've set out, that the market is not going to be $9 thousand, $10 thousand a day all the way through until next May. We simply don't believe that is going to actually happen. Okay? Right. We're changing. At the beginning of the year and last year, we continued to raise liquidity. We've gone through, and we raised liquidity in October. There were no vaccinations even invented yet. In November, vaccinations came along. We carried on raising liquidity. In February, the U.S. was nicely underway, but we didn't feel that we were out of the woods completely. Europe was a big question mark. We carried on raising liquidity. We're sitting in a point where we have more liquidity than any of those points. We believe that the United States is in a much better place than it was in January. Europe is in a much better place than it was in February and March. That we are seeing this. It's not just us making this up, Amit. OPEC is saying this, the IEA is saying this, and the oil companies are saying this. Investors in other ways are saying this. The oil price is saying this. We have reasonable cause to think that the market will be better going forward than at its worst point somewhere between the third and the fourth quarters last year. The market has been steadily improving already for five or six months. There is a point where it's irresponsible, as I believe Jon Chappell earlier, who is a very cautious analyst, is taking a cautious position on rates and the improvement of the tanker market. We could easily agree that It wasn't a question of if there would be a recovery, it would be when there would be a recovery and what the actual use of proceeds would be. It'd be irresponsible right now for us to go and sell ships right at the breakout just to put even more cash on the balance sheet. We fundamentally believe in a very open, honest way. You opened with quite a derogatory statement. You are being false. We don't believe we're being false. We think we're being very genuine to what we believe, and we believe that based not on some finger in the air, but a lot of empirical third-party data that is out there at the moment to support the fact that the market is improving and accelerating. It's a really key thing that the MR market is all ready for a modern MR around $12,000, $13,000 a day, and Europe is not yet really coming out, and we're only just beginning the fight back from the refinery turnarounds. Yeah. I think the only difference, Robert, is that you have to be right for the capital structure of the company to be protected or the equity of the company to be protected. Oh, of course, Omar. I mean, Amit, of course. Omar's a lot smarter than I am. Brian, can I ask you? Omar just happens to show more interest than you do. I guess I remember his name more. Of course, you have to be right. If the world goes to hell, I'll say it openly. If the world goes to hell, STNG is not necessarily a company that I would want to, at that point, have a whole bunch of equity in. Yeah if it just carries on the improvement that is right now, if you take the midpoint of, or even the lowest point of, the IEA forecasters or the major banks forecasting into product tanker demand, by the end of the day, Scorpio Tankers, especially with the product tanker leading, is going to tear apart most of the other investments that you could make. It is absolutely the company you would want to be in precisely because of its multiple points of leverage. First, the operating leverage that the company has is having new ships. Second, the operating leverage that the company has of having those vessels all spot, straight feed through. Thirdly, the financial operating leverage that the company has, which you have pointed out with regard to the gearing. It'd be absolutely worth the investment. If you don't believe in that, there's no point in that world economy. There's no point in anyone being in Scorpio Tankers. Yeah. No, you're right. You should not put a hold. You shouldn't even put a hold on this, which you have. You should put in an outright sell. Yeah. I think that's. If you think that. whatever. I think you're absolutely right. I think if everything goes really, really well, the stock's going to go higher. I agree with that. The last question I have. The fact is, most people, and the market's supporting that. The product market is strongly doing that with the refinery turn. That's why the product market has done better, let's say, than the crude. The crude will come. I am actually very constructive about the crude. I think we've seen a wonderful game being played. I support Euronav and DHT. I have no problem with those two companies. They've been playing a good game and have strong balance sheets. They've been conservative about the outlook while buying ships and buying back stock. The crude market will turn too at some point. Can I just ask a quick housekeeping one, and then I'll just hop off? Brian, I guess Robert had made the comment that asset values have ticked up. That's obviously very positive, both from a NAV perspective and also from just a debt management perspective. I was wondering, your net debt has been flat, kind of roughly, over the last period versus today, and that's about to go up. Does that give you more room for additional leverage on the vessels if you need it? If you could help us with where that LTV is today in terms of how the banks look at it or the appraisers look at it. Absolutely right. Values are going up. It's a very good point. It's something to keep in mind if you're looking at our debt balance being, as you say, flat, net debt being flat there. It's a very good point. Values have gone up, so on a relative basis, it's been along that way. We're not going to give asset values on all ships right now, but we are obviously in compliance with all of our loan-to-value and every other covenant out there. We have headroom in every single one of those. We do have room, and if we need to, we will look to do it. When vessels come up for refinancing, it's very important now that asset value is coming up, we could refinance at an attractive rate whenever we want to. I would say the inconsistency that someone could have would be to have buys on crude tankers without having a buy on STNG. That, to me, is inconsistent and false. Okay. Well, I'll take that into consideration. Thank you. Great. Thank you. Your next question is from the line of Magnus Fyhr with H.C. Wainwright. Yeah, good morning. Just have one question left there. Robert, you laid out a pretty bullish scenario on the recovery here forward. Just curious, we've seen the charters in the market, I guess, earlier in the quarter, but why aren't they being more aggressive? Can you elaborate a little bit on what you're seeing them doing at these levels? Talking about Vitol and Trafigura and the other guys. Lars? Well, I consider Vitol, Trafigura, and the other guys to be extremely aggressive. What do you mean by that? Aggressive with what? Well, just chartering in more vessels, or do you think they have requirements already, or why don't you see oil companies stepping up here? [inaudible] I can tell you that every one of those that you have mentioned, they look at ships every single day, and they certainly, on the quiet, have been taking ships on. I think it's fair to say, as a general statement, that they are interested in modern ships for long-term charter. Okay. The shift is being from, Lars, correct me if I'm wrong, but the shift is being from a six- to 12 months period to actually three to five years charter interests. It's certainly moving to long-term modern units. Right. If you look, you mentioned earlier about the Carbon Intensity Indicator, you guys are definitely at the forefront of that with a very modern fleet. Are you guys with 2030 IMO targets? Yes, Magnus, it's James. We're 23% ahead of those targets if you look at the sustainability report on our website that we put out. Okay, good. I guess that lays out a pretty strong scenario going forward with some of the other companies needing to move on that line. Anyway, I'd just like to see that scenario play out here where companies are trying to secure more of the modern tonnage, so we see that two-tier market developing. I guess at these levels, we need to see the rates a little bit higher before then. That's all I had. Thanks for taking my call. Thank you. Your next question is from the line of Liam Burke with B. Riley. Yes. Thank you. Good morning. Robert, you talked about the shift in refinery capacity globally. You have a big redistribution coming up in the second quarter. Are you seeing any benefit now, or is this something that you can look forward to later in the year and another further boost in rates or help to boost rates again? You're going to see it now all the way through. We've seen this. This is just a steady thing that's adding, whether it's Australia or now the news from South Africa. There is some school of some people out there already. We're still analyzing it, and this would be a huge boon to the product tanker market. Some are talking that some of the European refineries that are down at the moment just might not come back. They might just close earlier. Now, that happens, and that's going to have a tremendous effect in the Atlantic, and that will guarantee that you have to bring in products from Asia long haul into the Atlantic Basin, and even maybe from China to the United States across the Pacific as well. Okay, Robert. Thank you very much. That does conclude our Q&A session for today. I'll turn the call back over to Brian Lee for any closing remarks. Thank you, Stephanie, and thank you, everyone, for joining us today. We hope to speak to you soon. Have a good day. Bye. Thank you. This does conclude today's conference call. You may now disconnect.