Slides
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May 01, 2025 Scorpio Tankers Inc. First Quarter 2025 Earnings 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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Q1 2025 Call Agenda 1. Financial Highlights 2. Product Tanker Market 3. Conclusion 4. Q&A
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4 Financial Highlights
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5 $204.2 $123.7 $58.2 $49.0 $200.0 $89.1 $20.0 $0 $50 $100 $150 $200 $250 TCE Revenue Adj. EBITDA Net Income Adj. Net Income Nordic Bond Issuance Debt Repayments Dividends Financial Results • Adj EBITDA of $123.7 million (1) • Adj net income of $49.0 million or $1.06 basic and $1.03 diluted earnings per share (1) Time Charter Agreements • In April 2025, the Company entered into a time charter out agreement on a Handymax product tanker for two years at $24,000 per day. • Since January 1, 2025, the charterers of three LR2s on long term time charter-out agreements have exercised options for an additional year at $31,000 per day. Prepayment Under 2023 $225.0 Million Revolving Credit Facility • In April 2025, the Company made a prepayment of $50.0 million under its 2023 $225.0 Million Revolving Credit Facility which had been amended to become a revolving credit facility during 2024. • After this repayment, there is $102.6 million outstanding and $50.0 million available to draw on this facility. Issuance of Unsecured Bonds & Redemption of Unsecured Notes • In January 2025, the Company successfully placed $200.0 million of new senior unsecured bonds in the Nordic bond market, which are scheduled to mature in January 2030 and bear interest at a fixed coupon rate of 7.50% per annum. • In March 2025, the Company redeemed the outstanding principal on its Unsecured Senior Notes Due 2025 of $70.6 million, which were scheduled to mature on June 30, 2025. 2025 $500.0 Million Revolving Credit Facility • In February 2025, the Company executed a revolving credit facility of up to $500.0 million with a group of financial institutions. The facility is a 100% revolving credit facility with a final maturity date of 7 years from the signing date. Investment in DHT • Since January 1, 2025, the Company purchased an additional 4,295,218 common shares in DHT Holdings Inc. at an average price of $10.67 per share and also sold 700,000 common shares of DHT at an average price of $11.85 per share. • The Company owns approximately 7.2% of the outstanding common shares of DHT as of April 30, 2025. Quarterly Dividend • The Company paid a quarterly dividend of $0.40 per share in March 2025. Financial Highlights 1) Please see the explanation of Non-IFRS Measures in the Company’s earnings release Q1-25 Financial Highlights 2025 Spot & Pool TCE Rates as of April 30, 2025 $USD millions $USD per day $30,392 $20,847 $18,240 $34,000 $21,000 $23,000 LR2 MR HM Q1-25 Q2-25 as of April 30, 2025 49% 41% 33% % of Days Booked
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6 Fortress Balance Sheet Cash & Liquidity (1) $USD millions 1) Excludes investment in DHT. Net Debt $USD millions $397 $397 $288 $288 $500 $500 $50 $50 $1,235 $0 $300 $600 $900 $1,200 $1,500 Cash & Cash Equivalents as of April 30, 2025 $1 Billion Credit Facility – Revolver Availability Feb 2025 Revolving Credit Facility 2023 $225.0 Million Revolving Credit Facility Total Cash & Liquidity Cash & Cash Equivalents as of April 30, 2025 $1 Billion Credit Facility – Revolver Availability Feb 2025 Revolving Credit Facility 2023 $225.0 Million Revolving Credit Facility $3,164 $1,958 $1,618 $878 $989 $932 -$230 -$377 -$356 -$333 -$420 -$397 $2,933 $1,581 $1,263 $546 $569 $535 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Mar 31, 2025 Apr 30, 2025 Gross Debt Outstanding Cash & Cash Equivalents
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7 Outstanding Indebtedness by Type Optimizing Balance Sheet through Lower Leverage & Cost of Debt From Dec 31, 2021 through March 31, 2025, Reduced Overall Indebtedness by ~$2.2 billion (net of new drawdowns) including ~$2.2 billion of Lease Financing $USD millions Debt Repayment from December 31, 2021, through June 30, 2025 $USD millions $2,242 $1,657 $433 $75 $72 $72 $574 $230 $1,115 $733 $717 $661 $70 $71 $71 $71 $200 $200 $3,164 $1,958 $1,618 $878 $989 $932 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Mar 31, 2025 Apr 30, 2025 Lease Financing Bank Facilities Unsecured Notes Convertible Bonds $56 $1 $8 $3,164 $1,958 $1,618 $878 $989 $932 $924 $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 December 31, 2024 Outstanding Debt March 31, 2025 Drawdown & Repayments on Credit Facilities, Net Lease Repayments Outstanding Debt as of April 30, 2025 Remaining Q2-25 Drawdown & Repayments, Net Est. Outstanding Debt June 30, 2025
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8 Debt Repayment Schedule Debt Repayment & Drydock Schedule $USD millions Completed & Estimated Drydock Schedule Number of vessels $56.6 $8.0 $10.1 $10.1 $10.1 $64.6 $10.1 $10.1 $10.1 $0.0 $40.0 $80.0 Q2-25 Q3-25 Q4-25 Q1-26 Payments made through April 30, 2025 Scheduled repayments 4 8 7 17 17 10 7 4 1 0 2 4 6 8 10 12 14 16 18 20 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 LR2 MR HM
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9 Potential Annual Cash Flow Generation After Debt Repayment (1)Company Fleet TCE Rates Significant Operating Leverage & Earnings Potential *) Q2-25 spot and time charter vessel earnings booked through April 30, 2025, and subject to change. 1) 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 51.0 million shares outstanding as of April 30, 2025. Includes $40.4m in scheduled secured debt repayments from Q3-25 to Q2-26 which is in the Company’s Q1-25 earnings release. $USD millions$USD per day $271 $632 $994 $1,355 $1,716 $5.3/Share $12.4/Share $19.5/Share $26.6/Share $33.6/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 $21,978 $23,971 $26,139 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25*
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10 Product Tanker Market
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11 100 110 120 130 140 150 160 170 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 5Y Range Previous 5Y AVG 2025 $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 Jan-25 Mar-25 LR2 Eco Middle East to Japan MR Eco Avg Earnings Short Term Market Update Million barrels per day Million barrels 1) Clarksons Shipping Intelligence, April 2025 2) Energy Aspects, April 2025 3) EIA, April 2025 Monthly MR & LR2 Spot Rates (1) USD per day Refinery Maintenance (Capacity Offline) (2) US Distillate Inventories (3) 6.2 8.9 9.6 7.7 5.2 2.8 2.1 0 2 4 6 8 10 Jan-25 Feb-25 Mar-25 Apr-25e May-25e Jun-25e Jul-25e Asia Pacific North America Europe Latin America FSU Middle East Africa
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12 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 2025 YTD CPP Exports Previous 5Y AVG Seaborne Exports & Ton Miles Remains Strong Vortexa, April 2025 80 85 90 95 100 105 110 115 120 125 130 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Ton Mile Demand (Excl. Russia) Ton Mile Demand (Incl. Russia) Seaborne Refined Product Exports Million barrels per day Ton Mile Demand Since 2019 Index = 100, Base January 2019
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13 3.1 3.6 3.8 3.5 3.1 3.2 3.0 3.2 3.2 3.0 2.9 3.0 2.9 3.0 3.3 3.2 2.9 3.0 3.0 3.0 3.3 2.6 2.4 2.6 2.5 2.7 3.1 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 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 Jan-25 Feb-25 Mar-25 Via COGH Via Suez Product Tankers Vessels Transiting Suez Canal Limited Changes to Red Sea & Russian Refined Product Flows Vortexa, April 2025 Million barrels per day 0.0 0.5 1.0 1.5 2.0 2.5 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 Jan-25 Feb-25 Mar-25 Apr-25 Russian Clean Product Exports Million barrels per day
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14 309 1571 296 913 536 684128 217 157 258 138 219 437 1,788 453 1,171 674 903 0 400 800 1,200 1,600 2,000 HM MR LR1/PMAX LR2/AMAX LR3/SUEZ VLCC Non-Chinese Built Chinese Built USTR Revisions Expected to Have Minimal Impact on Product Tankers USTR Section 301 – Action on China’s Maritime Dominance (1) • On April 17, 2025, the Office of the US Trade Representative (“USTR”) published a notice of action (the “USTR Notice”) implementing its port fee proposal Annex I – Fee on Chinese Vessel Operators & Owners • A fee will be imposed on the entry of a Chinese-owned (including financial leases) or operated vessel into a US port starting at a rate of $50 per net ton in October 2025 and increasing to $140 per net ton in April 2028 Annex II – Fee on Chinese-built Vessels • A fee will be imposed on the entry of a Chinese-built vessel into a US port starting at a rate of $18 per net ton in October 2025 and increasing to $33 per net ton in April 2028. • There are several exceptions to the imposition of the fees, including but not limited to vessels: • Arriving to the US empty or in ballast • Under 55,000 DWT (MR vessels and below) • With less than 80,000 dwt in bulk capacity (4) • Entering the continental US from a voyage of less than 2,000 nautical miles Changes from Initial Proposal • Fees are no longer cumulative • Fees do not apply to the fleet composition of owners (including newbuild vessels on order) • Fees are per voyage (or rotation) and not per port call (charged up to a maximum of five times per year, per vessel) Tanker Fleet by Country of Build (2) Vessel count US Refined Exports & Imports by Vessel Class (3) 93% 91% 6% 7% 1% 2% 0% 20% 40% 60% 80% 100% US Exports US Imports <55K DWT LR1 LR2 1) Office of the United States Trade Representative, April 2025 2) Clarksons Shipping Intelligence, April 2025 3) Vortexa, April 2025 4) It has not yet been determined if “bulk liquids” include refined products, if so LR1 vessels would be exempt
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15 -0.2 -0.2 -0.4 -0.4 -0.4 -0.4 -0.4 0.6 0.5 0.6 0.7 0.8 0.8 0.8 0.4 0.3 0.1 0.3 0.4 0.4 0.4 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2019 2020 2021 2022 2023 2024 2025 Cumulative Closures Since 2013 CPP Imports Refinery Closures Create Product Shortages and Generate Import Demand Net Refining Additions from 2020-2025 (1) Million barrels per day 1) Energy Aspects, April 2025 2) Vortexa, April 2025 Australia’s CPP Import Requirements and Refinery Closures (1)(2) Million barrels per day 1.98 1.09 0.59 0.46 0.18 0.15 -0.84 -1.13 -1.46 1.02 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
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16 16.9 17.1 17.2 19.4 19.4 19.9 20.4 21.0 21.2 24.6 24.8 24.1 25.2 28.4 26.6 27.8 28.8 28.7 17.0 16.9 17.1 18.7 19.0 19.2 19.2 19.5 20.0 21.1 20.8 20.9 22.4 26.3 23.7 25.7 25.8 26.7 5.3 5.2 5.3 6.1 6.1 6.4 6.5 6.4 6.3 6.7 6.5 6.2 6.4 8.2 4.9 5.5 6.3 7.3 2.7 2.6 2.9 3.9 4.0 4.1 4.4 4.4 4.5 5.4 5.2 5.2 6.1 7.5 7.4 8.1 8.0 8.2 41.8 41.9 42.5 48.1 48.6 49.7 50.5 51.4 52.0 57.7 57.3 56.3 60.1 70.4 62.6 67.1 69.0 70.9 1990 1991 1992 1997 1998 1999 2000 2001 2002 2007 2008 2009 2010 2019 2020 2021 2022 2023 Diesel Gasoline Jet Naphtha Demand Has Recovered Quickly in Economic Slowdowns Iraq’s Invasion of Kuwait Asian Currency Crisis Tech Bubble & Sept 11th Global Financial Crisis COVID-19 Pandemic Energy Aspects & BP Statistical Review, April 2025 Global Refined Product Demand (Excluding fuel oil) Million barrels per day
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17 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 1991 1992 1997 1998 1999 2000 2001 2002 2003 2007 2008 2009 2010 2020 2021 2022 2023 Seaborne Exports Growth Ton Mile Demand Growth Seaborne Exports & Ton Mile Demand Has Been Resilient Iraq’s Invasion of Kuwait Asian Currency Crisis Tech Bubble & Sept 11th Global Financial Crisis COVID-19 Pandemic YoY change Clarksons Shipping Intelligence, April 2025 Global Seaborne Ton Mile Demand & Exports
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18 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% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Supply Has Typically Been the Problem Product tanker net fleet growth of 114.6% (1) from 2003 to 2010 Clarksons Shipping Intelligence, April 2025 1) Based on a product tanker fleet DWT of 56.26 million in January 2003 and 120.74 million in December 2010. 0% 10% 20% 30% 40% 50% 60% 70% Apr-96 Apr-97 Apr-98 Apr-99 Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Product Tanker Fleet Growth YoY increase Product Tanker Orderbook as a % of Fleet % of Fleet
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19 2.5 2.8 3.0 3.0 2.4 3.1 3.3 3.4 3.3 14.7 15.5 15.1 15.5 14.6 14.5 14.3 13.9 13.3 17.2 18.3 18.1 18.5 17.0 17.5 17.6 17.3 16.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Clean Crude/Dirty 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 300 600 900 1,200 1,500 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 2025e 2026e 2027e 2028e Aframax LR2 LR2 % of Aframax/LR2 Fleet (RHS) Majority of Aframax & LR2 Market is Focused on Crude Oil & Dirty Products % trading dirty % of LR2 Fleet Trading in Crude Oil & Dirty Products (2) Million barrels per day Aframax & LR2 Cargo Breakdown – Crude Market is 4x Clean Products (3) Product Tanker Orderbook By Vessel Class (1) As % of total orderbook HM, 1.5% MR, 35.6% LR1, 12.5% LR2, 50.4% Global Aframax & LR2 Fleet – 46% of the Fleet will be LR2’s by 2028 (1) Number of vessels 1) Clarksons Shipping Intelligence, April 2025 2) Oil Brokerage, April 2025 3) Vortexa, April 2025 49% 35% 40% 45% 50% 55% Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 % Trading Dirty
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20 122.9 113.4 104.6 87.8 87.9 83.3 73.4 56.1 36.2 5.6 6.9 9.8 8.4 8.2 6.4 8.8 28.6 32.7 128.6 120.3 114.4 96.3 96.1 89.7 82.2 84.8 68.8 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2016 (12) 2017 (13) 2018 (14) 2019 (15) 2020 (16) 2021 (17) 2022 (18) 2023 (19) 2024 (20) Non-Russia Russia 4.1% 4.8% 6.5% 9.3% 13.9% 17.5% 20.4% 24.4% 30.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0 200 400 600 800 1000 1200 1400 2020 2021 2022 2023 2024 2025e 2026e 2027e 2028e HM MR LR1 LR2 20+ % of active fleet (RHS) 2004 Built Product Tanker CPP Ton Mile by Year & Age (1) Billion ton miles Year (Age of Vessel in Year)Year (Age of Vessel in Year) Post Russian Sanctions 1) Vortexa, April 2025 2) Clarksons Shipping Intelligence, April 2025 Lower Effective Fleet Growth Due to Decreased Utilization of Ageing Vessels Vessels At or Above 20 Years Old (2) Number of vessels
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21 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Product Tanker Fleet Growth & Ton Mile Demand Clarksons Shipping Intelligence, April 2025 1) Supply slippage on scheduled newbuilding deliveries of 20% for 2025-2027. Scenario 1 scrapping assumptions: 2025-2027 (25-year average of 1.9% of the fleet per year or average 3.7million dwt per year). Scenario 2 assumes scenario 1 assumptions and 60% of LR2 newbuilds trade in clean petroleum products. Scenario 3 assumes 60% of LR2 newbuilds trade in clean petroleum products, and a 30% tonnage reduction for all vessel at age 20, plus an additional 10% per year from age 21 to 27 due to the lower utlization. Ton Mile Demand Has Grown at a 3.6% CAGR Since 2000Product Tanker Fleet Growth (1) Fleet growth Billion ton miles 3.7% 4.7% 4.3% 2.3% 3.5% 3.2% 0.7% 1.4% 0.1% 2025e 2026e 2027e Scenario 1 Scenario 2 Scenario 3
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22 Conclusion
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23 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 9.1 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 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 • Modest fleet growth with aging fleet 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 Mach 31, 2025 • Share Repurchases & Dividends • From January 1, 2023 through March 31, 2025 the Company repurchased $825 million of its shares and paid $161 million in dividends New Slide Investment Highlights
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24 Time-Chartered Out Vessels For additional terms and conditions of these time charters, including optional periods, please see the fleet list published in the Company’s Q1-25 earnings release 1) charterers exercised options for an additional year at $31,000 per day, commencing upon expiration of the current term Vessel Vessel Class Term Average Rate ($/day) Commencement date STI Battersea HM Two Years $24,000 April-25 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(1) LR2 Three Years / One Year $28,000 / $31,000 May-22 / May 25 STI Gladiator(1) LR2 Three Years / One Year $28,000 / $31,000 July-22 / July 25 STI Guide(1) LR2 Three Years / One Year $28,000 / $31,000 July-22 / July 25 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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25 Q&A
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