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January 07, 2025 Scorpio Tankers Inc. Capital Link Presentation
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2 This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Pr ivate Securities Litigation Reform Act of 1995. These forward -looking statements reflect Scorpio Tankers Inc.’s (“Scorpio’s”) current views with respect to future events and financial performance. The words “believe,” “ant icipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” and similar expressions identify forward-looking statements. The forward-looking statements in this presentation 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 Scorpio’s records and other da ta available from third parties. Although Scorpio believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficul t or impossible to predict and are beyond Scorpio’s control, Scorpio cannot assure you that it will achieve or accomplish these expectations, beliefs, projections or future financial performance. Risks and uncertainties include, but are not limited to, the failure of counterparties to fully perform their contracts with Scorpio, the strength of world economies and currencies, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand in the tanker vessel markets, changes in Scorpio’s op erating expenses, including bunker prices, drydocking and insurance costs, the fuel efficiency of our vessels, the market for Scorpio's vessels, availability of financing and refinancing, charter counterparty performance, abili ty to obtain financing and comply with covenants in such financing arrangements, changes in governmental and environmental rules and regulations or actions taken by regulatory authorities including those that may limi t the commercial useful lives of tankers, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events , and other important factors described from time to time in the reports Scorpio files with, or furnishes to, the Securities and Exchange Commission, or the Commission, and the New York Stock Exchange, or NYSE. Scorpio undertakes n o obligation to update or revise any forward-looking statements. These forward-looking statements are not guarantees of Scorpio's future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. This presentation describes time charter equivalent revenue, or TCE revenue, adjusted net income, and adjusted EBITDA, which are not a measures prepared in accordance with IFRS (i.e. a "Non -IFRS" measure). These measures are presented here because we believe that they provides investors 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 a substitute for, or superior to financial measures prepared in accordance with IFRS. The Company believes that the presentation of TCE revenue, adjusted net income, and adjusted EBITDA is useful to investors be cause they facilitate the comparability and the evaluation of companies in the Company’s industry. In addition, the Company believes that TCE revenue is useful in evaluating its operating performance compared to th at of other companies in the Company’s industry. The Company’s definition of TCE revenue may not be the same as reported by other companies in the shipping industry or other industries. See the Company’s recently issu ed earnings press release under the section entitled “Non -IFRS Measures” for a reconciliation of these amounts. Unless otherwise indicated, information contained in this presentation concerning Scorpio’s industry and the market in which it operates, including its general expectations about its industry, market position, market opportunity and market size, is based on data from various sources including internal data and estimates as well as third par ty sources widely available to the public such as independent industry publications, government publications, reports by market research firms or other published independent sources. Internal data and estimates are based upon this information as well as information obtained from trade and business organizations and other contacts in the markets in which Scorpio operates and management’s understanding of industry conditions. This informati on, data and estimates involve a number of assumptions and limitations, are subject to risks and uncertainties, and are subject to change based on various factors, including those discussed above. You are cautioned not to give undue weight to such information, data and estimates. While Scorpio believes the market and industry information included in this presentation to be generally reliable, it has not independently verified any third -party information or verified that more recent information is not available. Disclaimer and Forward-looking Statements
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Table of Contents The Company Product Tanker Market Financials Q&A Appendix
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4 The Company
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5 NYSE Ticker Fleet Vessels(2) NUMBER STNG 99 Market Cap(1) LR2 Billion $USD NUMBER $2.5 38 Avg Daily Liquidity(1) MR Million $USD NUMBER $50.2 47 Fleet Average Age(2) Handymax YEARS NUMBERs 8.8 14 1) Bloomberg, January 7, 2025 2) As of January 7, 2025 • Scorpio Tankers Inc. (“Scorpio”) is the world’s largest product tanker owner, providing marine transportation of refined petroleum products (gasoline, diesel, jet fuel and naphtha) • Vessels employed in well-established Scorpio pools with a strong track record of outperforming the market • Headquartered in Monaco, Scorpio is incorporated in the Marshall Islands and is not subject to US income tax • Diversified blue-chip customer base Key Facts Our Customers Scorpio Tankers At a Glance
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6 Company • One of the largest product tanker fleets in the world • 99 Eco (fuel-efficient) vessels on the water • Fully delivered fleet with an average age of 8.8 years • No newbuildings on order = $0 newbuild capex • Significant Operating Leverage • A $10,000/day increase in average daily freight rates could generate ~$361 million of incremental annualized cash flow (2) Industry & Outlook • Significant increase in product tanker rates since Q1-22 • Robust product demand and low inventories has led to record levels of seaborne exports • Refinery closures and additions continue to reshape global trade flows and increase ton miles • Limited fleet growth with modest orderbook and aging fleet • Seaborne exports and ton mile demand expected to outpace supply Strategy • Reduce leverage, maintain liquidity and return capital to shareholders • Strong Balance Sheet • Reduced overall indebtedness by ~$2.2 billion from Dec 31, 2021, through September 30, 2024 • Share Repurchases & Dividends • From January 1, 2023 through September 30, 2024 the Company repurchased $786 million of its shares and paid $121 million in dividends New Slide Investment Highlights
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7 • Product tankers provide the marine transportation of refined petroleum products to areas of demand, whereas crude tankers provide the marine transportation of crude oil to refineries • Product tankers have coated tanks (typically epoxy) making them easy to clean and prevents cargo contamination and hull corrosion • Blue-chip customer base has strict requirements for the transportation of chemicals, FOSFA cargoes (vegetable oils and chemicals), and refined products What is a Product Tanker? 1) Vortexa, January 2025
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8 Fleet average age Clarksons Shipping Intelligence, January 2025. Figures exclude newbuild vessels on order and chemical tankers. Scorpio Average Age vs Worldwide FleetScorpio’s Fleet vs. Peers Largest and Most Modern Product Tanker Fleet in the World Number of vessels 14 45 45 58 70 79 91 99 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 Scorpio HM MR LR1 LR2 10.3 8.2 8.9 17.4 13.1 11.0 0.0 4.0 8.0 12.0 16.0 20.0 Handymax MR LR2 Scorpio Tankers Active Fleet
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9 Product Tanker Market
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10 0 5 10 15 20 25 30 35 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Product Tanker Deliveries Average Weighted Clean Product Tanker Earnings Product Tanker Earnings Remain at Historically High Levels $USD per day Clarksons Shipping Intelligence, January 2025 Product Tanker Earnings (LHS) vs. Product Tanker 10k+ DWT Deliveries (RHS) Number of deliveries 2002-2008: China joins WTO, commodity super cycle, elevated rates and fleet growth 2015: Crude prices collapse and tanker rates increase 2019: Preparation for IMO 2020 2020: COVID-19 floating storage and Saudi- Russia oil price war 2022: Russia invades Ukraine 2023-2024: Red Sea crisis 2021: COVID-19 recovery 2008: Financial crisis 2001: Tech bubble & September 11th
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11 Rates Improving as Maintenance Eases & Crude Vessels Exit Clean Trade Refinery Maintenance (Capacity Offline) (2) Million barrels per day VLCC & Suezmax (Crude) Vessels Carrying Clean Products is Normalizing (3) Million barrels 6.1 8.1 9.1 11.9 10.9 8.6 7.1 6.8 8.1 10.7 8.2 4.7 2.8 0 3 6 9 12 15 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25e Asia Pacific North America Europe Latin America FSU Middle East Africa % of CPP Ton Miles Monthly MR & LR2 Spot Rates (1) Million barrels per day $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 LR2 Eco Middle East to Japan MR Eco Avg Earnings 0% 1% 2% 3% 4% 5% 6% 7% 0 2 4 6 8 10 12 14 16 18 20 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Suezmax & VLCC Carrying Clean Products % of CPP Ton Miles (RHS) 1) Clarksons Shipping Intelligence, January 2025 2) Energy Aspects, January 2025 3) Vortexa, January 2025
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12 220 240 260 280 300 320 340 360 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5Y Range Previous 5Y AVG YTD 100 110 120 130 140 150 160 170 180 190 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5Y Range Previous 5Y AVG YTD EU Distillate Inventories (2)US Diesel Inventories (1) Million barrelsMillion barrels Global Inventories Well Below Historical Averages 1) EIA, January 2025 2) Energy Aspects, January 2025
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13 28.4 26.6 27.8 28.8 28.7 28.5 28.9 26.3 23.7 25.7 25.9 26.8 27.0 27.3 8.2 4.9 5.5 6.3 7.4 7.9 8.1 7.5 7.4 8.1 8.0 8.2 8.4 8.4 7.0 6.7 7.2 7.6 7.8 7.6 7.4 77.4 69.3 74.4 76.7 78.8 79.4 80.1 0.0 30.0 60.0 90.0 2019 2020 2021 2022 2023 2024 2025e Diesel Gasoline Jet Naphtha Fuel Oil Refined Product Demand & Seaborne Exports Exceed Pre-Pandemic Levels 1) Energy Aspects, January 2025 2) Vortexa, January 2025 16.0 17.0 18.0 19.0 20.0 21.0 22.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Previous 5Y Range 2024 YTD CPP Exports Previous 5Y AVG Seaborne Refined Product Exports (2) Million barrels per day Global Refined Product Demand (1) Million barrels per day
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14 80 85 90 95 100 105 110 115 120 125 130 Ton Mile Demand (Excl. Russia) Ton Mile Demand (Incl. Russia) Ton Mile Demand Since 2019 (1) Ton Mile Demand Increases as Refining Capacity Moves Away from the Consumer 1) Vortexa, January 2025 2) Energy Aspects, January 2025 Announced Refinery Closures (2) Million barrels per day 2.0 1.7 0.8 0.6 0.4 2.0 0.0 0.5 1.0 1.5 2.0 2.5 2020 2021 2022 2023 2024 2025 Africa Asia Pacific Europe FSU Latin America Middle East North AmericaIndex = 100, Base January 2019
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15 1.3% 36.2% 12.1% 50.4% HM MR LR1 LR2 Orderbook as % of Fleet vs Avg Fleet Age Product Tanker Orderbook & Average Age Orderbook as % of Fleet Average Age (Years) Product Tanker Orderbook Distribution by Vessel Class % of Product Tanker Orderbook 2004 20052006 2007 2008 2009 2010 2011 20122013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Jan-25 0% 10% 20% 30% 40% 50% 60% 70% 8 9 10 11 12 13 14 Fleet Avg Age (years) Clarksons Shipping Intelligence, January 2025
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16 3.1 3.2 3.6 3.1 3.5 3.4 3.5 3.3 3.4 2.9 3.0 3.1 13.3 14.4 13.8 13.4 13.4 13.6 12.6 12.7 12.4 13.3 12.8 12.6 16.4 17.6 17.4 16.5 16.9 17.0 16.1 16.1 15.8 16.2 15.8 15.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Clean Products Crude Oil & Dirty Products Aframax & LR2 Cargo Breakdown - ~20% of Cargoes are Clean Products (1) Majority of Aframax & LR2 Market is Focused on Crude & Dirty Products Million barrels per day % of Fleet Global Aframax & LR2 Fleet – 39% of the Fleet is LR2’s (2) Number of vessels 1) Vortexa, January 2025 2) Clarksons Shipping Intelligence, January 2025 3) Oil Brokerage, January 2025 55% of LR2 Vessels are Trading Clean Products (45% Crude & Dirty) (3) $USD per day 55% 40% 45% 50% 55% 60% 65% 70% % Trading Clean 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 0 200 400 600 800 1,000 1,200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Jan-25 Aframax LR2 LR2 % of Aframax & LR2 Fleet (RHS)
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17 Significant 2000’s Fleet Growth Expected to be Phased Out Clarksons Shipping Intelligence,January 2025 % of fleet for 20+ yrs old vessel includes newbuilding vessels to deliver from 2025-2028. Cumulative number of vessels Vessels At or Above 20 Years Old 4.2% 4.9% 6.6% 9.4% 14.0% 17.3% 20.3% 24.2% 30.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0 200 400 600 800 1,000 1,200 1,400 2020 2021 2022 2023 2024 2025e 2026e 2027e 2028e HM MR LR1 LR2 20+ yrs old % of active fleet (RHS)YoY change Product Tanker Fleet Growth 0% 2% 2% 6% 12% 10% 10% 12% 14% 11% 6% 4% 2% 3% 4% 6% 6% 4% 2% 5% 2% 2% 2% 2% 2% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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18 1.4% 1.0% 0.7% 1.3% 4.2% 1.8% 4.3% 5.1% 2.5% 1.7% 1.9% 2.0% 1.1% 1.9% 3.1% 1.4% 2.3% 1.6% 1.0% 0.6%0.5% 1.2% 1.7% 0.6%0.5% 2.0% 0.8% 0.2%0.1% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2.8 2.5 2.4 2.0 2.0 2.0 1.7 1.6 1.2 0.4 0.2 0.4 0.2 0.1 0.4 0.2 0.6 0.6 3.2 2.7 2.8 2.3 2.1 2.4 1.9 2.2 1.8 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2016 (12) 2017 (13) 2018 (14) 2019 (15) 2020 (16) 2021 (17) 2022 (18) 2023 (19) 2024 (20) Non-Russia Russian Older Vessels Serve Tertiary Markets, Carry Less Cargo & Reduce Effective Fleet Growth 1) Vortexa, December 2024 – Sample size consists of 20 2004 built MR product tankers. The 2024 figures are though December 2024. 2) Clarksons Shipping Intelligence, January 2025 Year (Age of Vessel in Year) Post Russian Sanctions Million barrels per year 2004 Built MR Voyages by Year & Age (1) % of Product Tanker Fleet Scrapped 2023-24 Scrapping Reached Lowest Levels in ~30 Years (2)
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19 Seaborne Ton Mile Demand & ExportsProduct Tanker Fleet Growth (1) Seaborne Exports & Ton Mile Demand to Outpace Fleet Growth YoY changeNumber of vessels Clarksons Shipping Intelligence, January 2025 1) Supply slippage on scheduled newbuilding deliveries of 20% for 2025-2027. Scenario 1 scrapping assumptions: 2025-2027 (20-year average of 1.4% of the fleet per year or average 2.8million dwt per year). Scenario 2 scrapping assumptions: 2025-2027 (25-year average of 1.9 % of the fleet per year or average 3.7 million dwt per year). Scenario 3 assumes scenario 2 assumptions and 60% of LR2 newbuilds trade in clean petroleum products. 3.7% 5.4% 4.6% 3.2% 4.9% 4.1% 2.2% 3.7% 3.0% 2025e 2026e 2027e Scenario 1 Scenario 2 Scenario 3 -11.2% 4.8% 3.9% 1.4% 0.4% -9.2% 8.1% 5.2% 6.8% 7.6% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 2020 2021 2022 2023 2024 Seaborne Exports Growth Ton Mile Demand Growth
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20 Financials
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21 $2,349 $1,696 $1,053 $1,038 $786 $121 0 500 1,000 1,500 2,000 2,500 TCE Revenue Adj EBITDA Adj Net income Debt Reduction Share Repurchases Dividends Financial Highlights Financial Highlights Over Last Seven Quarters (Q1-23 through Q3-24) $USD millions
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22 $2,242 $1,657 $433 $199 $79 $77 $76 $574 $230 $1,115 $1,131 $853 $772 $749 $70 $71 $71 $71 $71 $71 $71 $3,164 $1,958 $1,618 $1,401 $1,002 $920 $896 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Oct 25, 2024 Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $3,164 $1,958 $1,618 $1,401 $1,002 $920 $896 -$230 -$377 -$356 -$370 -$225 -$201 -$221 $2,933 $1,581 $1,263 $1,032 $778 $719 $675 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Oct 25, 2024 Gross Debt Outstanding Cash & Cash Equivalents Net DebtOutstanding Indebtedness by Type Continued Reduction In Leverage & Expensive Lease Financing From Dec 31, 2021 through September 30, 2024, Reduced Overall Indebtedness by ~$2.2 billion (net of new drawdowns) including ~$2.2 billion of Lease Financing $USD millions$USD millions
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23 $23.7 $17.8 $18.5 $14.6 $14.6 $14.7 $70.6 $41.5 $18.5 $85.2 $14.6 $14.7 $0.0 $50.0 $100.0 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Payments made through October 25, 2024 Scheduled repayments Unsecured Notes $23 $1 $18 $3,164 $1,958 $1,618 $920 $896 $878 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Outstanding Debt December 31, 2021 Outstanding Debt December 31, 2022 Outstanding Debt December 31, 2023 Outstanding Debt September 30, 2024 Drawdown & Repayments on Credit Facilities, Net Lease Repayments Outstanding Debt as of October 25, 2024 Remaining Q4-24 Drawdown & Repayments, Net Est. Outstanding Debt December 31, 2024 Debt Repayment Schedule Debt Repayment Schedule Debt Repayment from December 31, 2021, through December 31, 2024 $USD millions$USD millions
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24 Potential Annual Cash Flow Generation After Debt Repayment (1)Company Fleet TCE Rates Significant Operating Leverage & Earnings Potential *) Q4-24 spot and time charter vessel earnings booked through October 28, 2024, and subject to change Annual cash flow generation is calculated as TCE Rate x 365 days x 99 vessels less vessel cash breakeven. Estimated cash breakeven of $12,500 per day. The cash flow per share is based upon 50.5 million shares outstanding as of October 28, 2024 1) Includes $62.4m in scheduled secured debt repayments from Q1-25 to Q4-25 which is in the Company’s Q3-24 earnings release. $USD millions$USD per day $271 $632 $994 $1,355 $1,716 $5.4/Share $12.5/Share $19.7/Share $26.8/Share $34.0/Share $20,000 $30,000 $40,000 $50,000 $60,000 $15,415 $36,006 $44,222 $45,679 $37,500 $32,154 $28,313 $32,949 $39,660 $38,813 $28,488 $23,900 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24*
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25 Q&A
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26 Appendix
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27 Time-Chartered Out Vessels For additional terms and conditions of these time charters, including optional periods, please see the fleet list published in our earnings release dated October 28, 2024 Vessel Vessel Class Term Average Rate ($/day) Commencement Date STI Memphis MR Three Years $21,000 June-22 STI Miracle MR Three Years $21,000 August-22 STI Magnetic MR Three Years $23,000 July-22 STI Marshall MR Three Years $23,000 July-22 STI Duchessa MR Three Years $25,000 October-22 STI Jardins MR Three Years $29,550 October-24 STI Gratitude LR2 Three Years $28,000 May-22 STI Gladiator LR2 Three Years $28,000 July-22 STI Guide LR2 Three Years $28,000 July-22 STI Guard LR2 Five Years $28,000 July-22 STI Connaught LR2 Three Years $30,000 August-22 STI Lombard LR2 Three Years $32,750 September-22 STI Gauntlet LR2 Three Years $32,750 November-22 STI Lavender LR2 Three Years $35,000 December-22 STI Grace LR2 Three Years $37,500 December-22 STI Jermyn LR2 Three Years $40,000 April-23
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28 • Product tankers have coated tanks, typically epoxy, making them easy to clean and preventing cargo contamination and hull corrosion. • IMO II & III tankers have at least 6 segregations and 12 tanks, i.e. 2 tanks can have a common line for discharge. • Oil majors and traders have strict requirements for the transportation of chemicals, FOSFA cargoes (vegetable oils and chemicals), and refined products. • Tanks must be completely cleaned before a new product is loaded to prevent contamination. IMO Class I Chemical Tankers IMO Class I refers to the transportation of the most hazardous, very acidic, chemicals. The tanks can be stainless steel, epoxy or marine-line coated. IMO Class II Chemical & Product Tankers IMO Class II carries Veg & Palm Oils, Caustic Soda. These tanks tend to be coated with Epoxy or Stainless steel. IMO Class III Product Tankers Typically carry refined either light, refined oil “clean” products or “dirty” heavy crude or refined oils. IMO Classes I, II, & III Product Tanker Specifications
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29 Design Features on Scorpio Product Tankers
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