Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers", or the
"Company") today reported its results for the three and six months
ended June 30, 2018.
The Company also announced that its Board of
Directors has declared a quarterly cash dividend of $0.01 per share
on the Company’s common stock and that it has agreed to sell and
leaseback four additional product tankers.
Results for the three months ended June
30, 2018 and 2017
For the three months ended June 30, 2018, the
Company's adjusted net loss (see Non-IFRS Measures section below)
was $44.9 million, or $0.15 basic and diluted loss per share, which
excludes from the net loss (i) a $17.0 million loss recorded on the
Company's exchange of its Convertible Notes due 2019 for newly
issued Convertible Notes due 2022 (the "Convertible Notes
Exchange", which is described below), and (ii) a $7.0 million
write-off of deferred financing fees. The adjustments
resulted in an aggregate reduction of the Company’s net loss
by $24.0 million or $0.08 per basic and diluted
share. For the three months ended June 30, 2018, the Company
had a net loss of $68.9 million, or $0.22 basic and diluted loss
per share.
For the three months ended June 30, 2017, the
Company's adjusted net loss (see Non-IFRS Measures section below)
was $17.0 million or $0.09 basic and diluted loss per share, which
excludes from the net loss (i) a $23.4 million loss on sales of
vessels and write-down of vessel held for sale, (ii) $32.5
million of transaction costs related to the merger with Navig8
Product Tankers Inc ("NPTI"), (iii) a $5.4 million gain
recorded upon the purchase of the four subsidiaries of NPTI
that own four LR1 tankers, and (iv) a $0.8
million write-off of deferred financing fees. The adjustments
resulted in an aggregate reduction of the Company’s net loss
by $51.3 million or $0.28 per basic and diluted
share. For the three months ended June 30, 2017, the Company had a
net loss of $68.3 million, or $0.38 basic and diluted
loss per share.
Results for the six months ended June
30, 2018 and 2017
For the six months ended June 30, 2018, the
Company's adjusted net loss was $76.4 million (see
Non-IFRS Measures section below), or $0.25 basic and
diluted loss per share, which excludes from the net loss (i) a
$17.0 million loss recorded on the Convertible Notes Exchange, (ii)
a $7.0 million write off of deferred financing fees and
(iii) $0.3 million of transaction costs related to the
merger with NPTI. The adjustments resulted in an aggregate
reduction of the Company's net loss by $24.3
million or $0.08 per basic and diluted share.
For the six months ended June 30, 2018, the Company had a net loss
of $100.7 million, or $0.33 basic and diluted loss
per share.
For the six months ended June 30, 2017, the
Company's adjusted net loss was $28.5 million (see
Non-IFRS Measures section below), or $0.17 basic and
diluted loss per share, which excludes from the net loss (i)
a $23.4 million loss on sales of vessels and write-down
of vessel held for sale, (ii) $32.5 million of
transaction costs related to the merger with NPTI, (iii)
a $5.4 million gain recorded upon the purchase of the
four NPTI subsidiaries that own four LR1 tankers, and (iv)
a $0.9 million write-off of deferred financing
fees. The adjustments resulted in an aggregate reduction of
the Company's net loss by $51.3 million or $0.30 per
basic and diluted share. For the six months ended June 30,
2017, the Company had a net loss of $79.8 million,
or $0.46 basic and diluted loss per share.
Declaration of Dividend
On July 30, 2018, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about September 27, 2018 to all shareholders of
record as of September 20, 2018 (the record date). As of
July 30, 2018, there were 331,629,992 shares outstanding.
Summary of Other Recent and Second
Quarter Significant Events
- Below is a summary of the average daily Time Charter Equivalent
(TCE) revenue (see Non-IFRS Measures section below) and duration
for voyages fixed for the Company's vessels thus far in the third
quarter of 2018 as of the date hereof (See footnotes to 'Other
operating data' table below for the definition of daily TCE
revenue):
- For the LR2s in the pool: approximately $12,000 per day for 45%
of the days.
- For the LR1s in the pool: approximately $8,000 per day for 35%
of the days.
- For the MRs in the pool: approximately $11,000 per day for 40%
of the days.
- For the ice-class 1A and 1B Handymaxes in the pool:
approximately $8,000 per day for 40% of the days.
- Below is a summary of the average daily TCE revenue earned on
the Company's vessels during the second quarter of 2018:
- For the LR2s in the pool: $12,669 per revenue day.
- For the LR1s in the pool: $11,090 per revenue day.
- For the MRs in the pool: $12,305 per revenue day.
- For the ice-class 1A and 1B Handymaxes in the pool: $10,635 per
revenue day.
- In May and July 2018, the Company closed offers to exchange
$203.5 million ($188.5 million in May 2018 and $15.0 million in
July 2018) aggregate principal amount of its existing convertible
senior notes due 2019 (the "Convertible Notes due 2019") for the
same aggregate principal amount of new convertible senior notes due
2022 (the "Convertible Notes due 2022"). The terms and
conditions of the Convertible Notes due 2022 are described
below.
- In July 2018, the Company reached an agreement (which has not
previously been announced) to sell and leaseback two Handymax
product tankers (STI Battersea and STI Wembley) and two MR product
tankers (STI Texas City and STI Meraux) to an international
financial institution. The Company expects to raise an
aggregate of $31.8 million in new liquidity, after the repayment of
the existing debt, upon completion. These transactions are
expected to close before September 30, 2018 and are subject to
customary conditions precedent and the execution of definitive
documentation.
- In June 2018, the Company executed a $120.6 million senior
secured term loan facility with ABN AMRO Bank N.V. and
Skandinaviska Enskilda Banken AB (the "ABN/SEB Credit
Facility"). This loan was fully drawn in June 2018 and the
proceeds were used to refinance the existing indebtedness on five
vessels which were previously financed under the Company's K-Sure
Credit Facility. The Company raised $33.0 million in new
liquidity, after the repayment of the existing debt, as a result of
this transaction.
- Excluding the ABN/SEB Credit Facility (described above), the
Company has entered into agreements to refinance a total of 36
vessels through a series of bank loans and lease financing
arrangements during the second and third quarters of 2018.
These transactions, which are described below, are expected to
raise $286.6 million in aggregate of new liquidity after the
repayment of the existing secured debt related to these vessels,
and are expected to close by September 30, 2018.
- In May 2018, the Company entered into an agreement to time
charter-in a 2015 built LR2 product tanker for six months at
$14,800 per day.
- In June 2018, the Company paid a quarterly cash dividend with
respect to the first quarter of 2018 on the Company's common stock
of $0.01 per share.
Convertible Notes Exchange
In May and July 2018, the Company closed
separate exchange offers pursuant to which certain holders of the
Company’s Convertible Notes due 2019 exchanged $203.5 million
in aggregate principal amount of such notes for the same
aggregate principal amount of newly issued Convertible Notes due
2022. These transactions closed on two separate dates whereby
$188.5 million aggregate principal amount of notes were exchanged
in May 2018 and $15.0 million aggregate principal amount of notes
were exchanged in July 2018.
The Convertible Notes due 2022 bear a coupon
rate of 3.0%, which is payable semi-annually on November 15 and May
15 of each year and carried an initial conversion rate of 250
shares of the Company's common stock per $1,000 principal amount
($4.00 per share). The conversion rate is subject to adjustment
from time to time upon the occurrence of certain events (such as
the payment of dividends). The conversion rate was adjusted to
250.8117 shares of the Company's common stock per $1,000 principal
amount on June 6, 2018 due to the scheduled payment of a quarterly
dividend. The Convertible Notes due 2022 mature on May 15,
2022 and are non-redeemable. The remaining terms and conditions are
similar to those set forth in the Convertible Notes due 2019.
During the second quarter of 2018, the Company
recorded a loss on extinguishment of the Convertible Notes due 2019
of $17.0 million, and wrote off $1.1 million of deferred financing
fees, as a result of the May 2018 exchange.
Update on Refinancing
Initiatives
The table and discussion set forth below summarizes the status
of the Company’s previously announced refinancing initiatives.
|
|
Agreement |
Closing date (1) |
Expected new liquidity (2)
In millions of U.S. dollars |
Number of vessels to be
refinanced |
| 1 |
|
$90.0
million sale and leaseback |
Q3 2018 |
$ |
31.8 |
|
Four |
| 2 |
|
ABN
AMRO/SEB Credit Facility |
June 2018 |
33.0 |
|
Five |
| 3 |
|
ING Credit
Facility Upsize |
Q3 2018 |
11.8 |
|
Two |
| 4 |
|
$36.7
million Term Loan Facility |
Q3 2018 |
9.2 |
|
Two |
| 5 |
|
China
Huarong Shipping sale and leaseback |
Q3 2018 |
51.3 |
|
Six |
| 6 |
|
AVIC
International sale and leaseback |
Q3 2018 |
43.9 |
|
Five |
| 7 |
|
CMB sale
and leaseback |
Q3 2018 |
54.1 |
|
Six |
| 8 |
|
$116.0
million sale and leaseback |
Q3 2018 |
42.5 |
|
Four |
| 9 |
|
$157.5
million sale and leaseback |
Q3 2018 |
42.0 |
|
Seven |
|
|
|
|
$ |
319.6 |
|
41 vessels |
(1) Represents the actual (if in Q2
2018) or expected (if in Q3 2018) closing date of each
facility.
(2) Represents the approximate
amount of new liquidity the Company raised, or expects to raise
(depending on the closing date), after the repayment of the
existing indebtedness.
Sale and Leasebacks of Four Product
Tankers (a new agreement which has not previously been
announced)
In July 2018, the Company reached an agreement
to sell and leaseback two Handymax product tankers (STI Battersea
and STI Wembley) and two MR product tankers (STI Texas City and STI
Meraux) to an international financial institution. The
borrowing amounts under the arrangement are up to $22.0 million per
Handymax and $23.0 million per MR ($90.0 million in aggregate), and
the Company expects to raise an aggregate of $31.8 million in new
liquidity, after the repayment of the existing debt, upon
completion.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the second year of each agreement.
The facility bears interest at LIBOR plus a margin of 3.6% per
annum and will be repaid in quarterly installments of $0.5 million
per vessel. Each agreement also has a purchase obligation at
the end of the eighth year, which is equal to the outstanding
principal balance at that date. These transactions are
expected to close before September 30, 2018 and are subject to
customary conditions precedent and the execution of definitive
documentation.
ABN AMRO/SEB Credit
Facility
In June 2018, the Company executed the ABN/SEB
Credit Facility, a $120.6 million senior secured term loan facility
with ABN AMRO Bank N.V. and Skandinaviska Enskilda Banken AB.
This loan was fully drawn in June 2018 and the proceeds were used
to refinance the existing indebtedness on five vessels consisting
of one Handymax product tanker (STI Hammersmith), one MR product
tanker (STI Westminster), and three LR2 product tankers (STI
Connaught, STI Winnie and STI Lauren). These five vessels
were previously financed under the K-Sure Credit Facility. As a
result of this transaction, the Company raised $33.0 million in new
liquidity, after the repayment of the existing debt, and wrote off
$3.3 million of deferred financing fees during the second quarter
of 2018.
The ABN/SEB Credit Facility has a final maturity
of June 2023 and bears interest at LIBOR plus a margin of 2.60% per
annum. Principal payments will be an aggregate of $2.9 million per
quarter for the first eight installments and $2.5 million per
quarter thereafter, with a balloon payment due upon maturity. The
remaining terms and conditions, including financial covenants, are
similar to those set forth in the Company’s existing credit
facilities.
ING Credit Facility Upsize
In June 2018, the Company executed an agreement
to upsize its $132.5 million credit facility with ING Bank
N.V. to $171.2 million. The upsized portion of the loan
facility will be used to finance up to 65% of the fair market value
of one Handymax product tanker (STI Rotherhithe) and one MR product
tanker (STI Notting Hill), which are currently financed under the
Company’s K-Sure Credit Facility. This transaction is expected to
close before September 30, 2018, and the Company expects to raise
$11.8 million in new liquidity, after the repayment of the existing
debt, upon closing. The Company accelerated $0.5 million of
deferred financing fee amortization during the second quarter of
2018 as a result of this agreement and expects to write off an
additional $0.5 million of deferred financing fees upon
closing.
The upsized portion of the loan facility has a
final maturity of June 2022 and bears interest at LIBOR plus a
margin of 2.40% per annum. Principal payments will be an
aggregate of $1.0 million per quarter for the first eight
installments and $0.8 million per quarter thereafter, with a
balloon payment due upon maturity. The remaining terms and
conditions, including financial covenants, are similar to those set
forth in the Company’s existing credit facilities.
$36.7 million Term Loan
Facility
In June 2018, the Company executed an agreement
with a leading European financial institution for a loan facility
of up to $36.7 million. The loan facility will be used to refinance
the existing indebtedness related to two MR product tankers (STI
Memphis and STI Soho), which are currently financed under the BNP
Paribas Credit Facility. This transaction is expected to
close before September 30, 2018 and the Company expects to raise
$9.2 million in new liquidity, after the repayment of the existing
debt, upon closing. The Company accelerated $0.1 million of
deferred financing fee amortization during the second quarter of
2018 as a result of this agreement and expects to write off an
additional $0.1 million of deferred financing fees upon
closing.
The loan facility has a final maturity of June
2021, bears interest at LIBOR plus a margin of 2.50% per annum and
will be repaid in equal quarterly installments of $0.8 million, in
aggregate, with a balloon payment due upon maturity. The
remaining terms and conditions, including financial covenants, are
similar to those set forth in the Company’s existing credit
facilities.
China Huarong Shipping Financial
Leases
In May 2018, the Company reached an agreement to
sell and leaseback six 2014 built MR product tankers, (STI
Opera, STI Virtus, STI Venere, STI Aqua, STI Dama and STI Regina)
to China Huarong Shipping Financial Leasing Co., Ltd. These vessels
are currently financed under the Company's 2016 Credit
Facility. The borrowing amount under the arrangement is
$144.0 million in aggregate, and the Company expects to raise an
aggregate of $51.3 million in new liquidity, after the repayment of
the existing debt, upon completion. These agreements are
expected to close before September 30, 2018. The Company
accelerated $0.4 million of deferred financing fee amortization
during the second quarter of 2018 as a result of this agreement and
expects to write off an additional $0.8 million of deferred
financing fees upon closing.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the third year of each agreement. The
lease bears interest at LIBOR plus a margin of 3.5% per annum and
will be repaid in equal quarterly principal installments of $0.6
million per vessel. Each agreement also has a purchase
obligation at the end of the eighth year, which is equal to the
outstanding principal balance at that date. These agreements
are subject to customary conditions precedent and the execution of
definitive documentation.
AVIC International Financial
Leases
In July 2018, the Company executed an agreement
to sell and leaseback three MR product tankers (STI Ville, STI
Fontvieille and STI Brooklyn) and two LR2 product tankers (STI Rose
and STI Rambla) to AVIC International Leasing Co., Ltd. The
borrowing amounts under the arrangement are $24.0 million per MR
and $36.5 million per LR2 ($145.0 million in aggregate), and the
Company expects to raise an aggregate of $43.9 million in new
liquidity, after the repayment of the existing debt, upon
completion. These agreements are expected to
close before September 30, 2018. The Company accelerated $0.8
million of deferred financing fee amortization during the second
quarter of 2018 as a result of this agreement and expects to write
off an additional $1.2 million of deferred financing fees upon
closing.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels
beginning at the end of the second year of each agreement.
The lease bears interest at LIBOR plus a margin of 3.7% per annum
and will be repaid in quarterly principal installments of $0.5
million per MR and $0.8 million per LR2. Each agreement also
has a purchase obligation at the end of the eighth year, which is
equal to the outstanding principal balance at that date.
These agreements are subject to customary conditions precedent and
the execution of definitive documentation.
CMB Financial Leases
In July 2018, the Company executed an agreement
to sell and leaseback six MR product tankers (STI Battery, STI
Milwaukee, STI Tribeca, STI Bronx, STI Manhattan, and STI Seneca)
to CMB Financial Leasing Co., Ltd. The borrowing amount under
the arrangement is $141.6 million in aggregate, and the Company
expects to raise an aggregate of $54.1 million in new liquidity,
after the repayment of the existing debt, upon completion.
These agreements are expected to close before September 30,
2018. The Company accelerated $0.6 million of deferred
financing fee amortization during the second quarter of 2018 as a
result of this agreement and expects to write off an additional
$1.5 million of deferred financing fees upon closing.
Each agreement is for a fixed term of eight
years, and the Company has options to purchase the vessels at the
start of the fourth year of each agreement. The lease bears
interest at LIBOR plus a margin of 3.2% per annum and will be
repaid in quarterly principal installments of $0.4 million per
vessel. Each agreement also has a purchase obligation at the
end of the eighth year, which is equal to the outstanding principal
balance at that date.
Sale and Leasebacks of Four Product
Tankers
In June 2018, the Company reached an agreement
to sell and leaseback two MR product tankers (STI Gramercy and STI
Queens) and two LR2 product tankers (STI Oxford and STI Selatar) in
two separate transactions to an international financial
institution. The borrowing amounts under the arrangement are
$24.0 million per MR and $34.0 million per LR2 ($116.0 million in
aggregate), and the Company expects to raise an aggregate of $42.5
million in new liquidity, after the repayment of the existing debt,
upon completion. These agreements are expected to close
before September 30, 2018. The Company accelerated $0.2
million of deferred financing fee amortization during the second
quarter of 2018 as a result of this agreement and expects to write
off an additional $2.2 million of deferred financing fees upon
closing.
As part of the agreements, the Company will
bareboat charter-in the vessels for a period of seven years at
$7,935 per day for each MR and $11,040 per day for each LR2.
In addition, the Company has purchase options beginning at the end
of the third year of each agreement, and there is also a purchase
obligation for each vessel upon the expiration of each
agreement. These agreements are subject to customary
conditions precedent and the execution of definitive
documentation.
Sale and Leasebacks of Seven Product
Tankers
In July 2018, the Company reached an agreement
to sell and leaseback six MR product tankers (STI San Antonio, STI
Benicia, STI St. Charles, STI Yorkville, STI Mayfair and STI
Duchessa) and one LR2 product tanker (STI Alexis) to an
international financial institution. The borrowing amounts
under the arrangement are up to $21.3 million per MR and $29.7
million for the LR2 ($157.5 million in aggregate), and the Company
expects to raise an aggregate of $42.0 million in new liquidity,
after the repayment of the existing debt, upon completion.
Each agreement is for a fixed term of seven
years, and the Company has options to purchase the vessels
beginning at the end of the third year of each agreement. The
lease bears interest at LIBOR plus a margin of 3.0% per annum and
will be repaid in quarterly principal installments of $0.5 million
per MR and $0.6 million for the LR2. Each agreement also has
a purchase obligation at the end of the seventh year, which is
equal to the outstanding principal balance at that date.
These agreements are expected to close before September 30, 2018
and are subject to customary conditions precedent and the execution
of definitive documentation.
Time Charter-in Update
In May 2018, the Company entered into a new time
charter-in agreement on a 2015 built, LR2 product tanker for six
months at $14,800 per day. The Company has an option to
extend the charter for an additional six months at $15,350 per
day.
$250 Million Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its (i)
Convertible Notes due 2019 (ii) Unsecured Senior Notes Due 2020
(NYSE:SBNA), which were issued in May 2014, (iii) Unsecured Senior
Notes Due 2019 (NYSE:SBBC), which were issued in March 2017, and
(iv) Convertible Notes due 2022.
No securities were repurchased under this
program during the period commencing January 1, 2018 and ending on
the date of this press release.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
Diluted Weighted Number of
Shares
Diluted earnings per share is determined using
the if-converted method. Under this method, the Company assumes
that its Convertible Notes due 2019 and Convertible Notes due 2022
(which were issued in June 2014 and May 2018, respectively) were
converted into common shares at the beginning of each period and
the interest and non-cash amortization expense associated with
these notes of $5.7 million and $11.5 million during the three and
six months ended June 30, 2018, respectively, were not incurred.
Conversion is not assumed if the results of this calculation are
anti-dilutive.
For the three and six months ended June 30,
2018, the Company's basic weighted average number of shares was
309,575,449 and 308,914,701, respectively. The weighted
average number of shares, both diluted and under the if-converted
method, were anti-dilutive for the three and six months ended June
30, 2018, respectively, as the Company incurred net losses.
As of the date hereof, the Convertible Notes due
2019 and Convertible Notes due 2022 are not eligible for
conversion.
Conference Call
The Company has scheduled a conference call on
July 31, 2018 at 8:00 AM Eastern Daylight Time and 2:00 PM Central
European Summer Time. The dial-in information is as
follows:
US Dial-In Number: +1 (855) 861-2416
International Dial-In Number: +1 (703) 736-7422
Conference ID: 3267939
Participants should dial into the call 10
minutes before the scheduled time. The information provided on the
teleconference is only accurate at the time of the conference call,
and the Company will take no responsibility for providing updated
information.
Slides and Audio Webcast:
There will also be a simultaneous live webcast
over the internet, through the Scorpio Tankers Inc. website
www.scorpiotankers.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Webcast URL:
https://edge.media-server.com/m6/p/iu4fdpep
Current Liquidity
As of July 30, 2018, the Company had $148.4
million in unrestricted cash and cash equivalents.
Drydock Update
Three of the Company’s 2013 built MR product
tankers, which are currently operating under operating lease
bareboat charter-in arrangements, were drydocked in accordance with
their scheduled, class required special survey during the second
quarter of 2018. These vessels were offhire for an aggregate
of 52 days and the aggregate drydock cost was $2.7
million.
The Company has two 2013 built MRs and two 2014
built MRs that are scheduled for drydock during the remainder of
2018 and estimates that these vessels will be offhire for an
aggregate of 80 days with estimated aggregate drydock costs of
approximately $4.0 million.
Debt
Set forth below is a summary of the Company’s
outstanding indebtedness as of the dates presented:
| |
In millions
of U.S. dollars |
|
Outstanding as of March 31,
2018 |
Drawdowns, (repayments), and exchanges,
net |
Outstanding as of June 30,
2018 |
Drawdowns, (repayments), and exchanges,
net |
Outstanding as of July 30,
2018 |
| 1 |
K-Sure
Credit Facility |
|
$ |
240.0 |
|
$ |
(87.6 |
) |
$ |
152.4 |
|
$ |
— |
|
$ |
152.4 |
|
| 2 |
KEXIM
Credit Facility |
|
316.1 |
|
— |
|
316.1 |
|
(4.3 |
) |
311.8 |
|
| 3 |
Credit
Suisse Credit Facility |
|
53.5 |
|
— |
|
53.5 |
|
— |
|
53.5 |
|
| 4 |
ABN AMRO
Credit Facility |
|
111.1 |
|
(2.2 |
) |
108.9 |
|
(0.6 |
) |
108.3 |
|
| 5 |
ING Credit
Facility |
|
109.9 |
|
— |
|
109.9 |
|
— |
|
109.9 |
|
| 6 |
BNP Paribas
Credit Facility |
|
42.6 |
|
(1.7 |
) |
40.9 |
|
— |
|
40.9 |
|
| 7 |
Scotiabank
Credit Facility |
|
28.8 |
|
— |
|
28.8 |
|
— |
|
28.8 |
|
| 8 |
NIBC Credit
Facility |
|
34.7 |
|
(1.0 |
) |
33.7 |
|
(1.0 |
) |
32.7 |
|
| 9 |
2016 Credit
Facility |
|
190.7 |
|
(5.3 |
) |
185.4 |
|
— |
|
185.4 |
|
| 10 |
HSH
Nordbank Credit Facility |
|
15.0 |
|
(0.4 |
) |
14.6 |
|
— |
|
14.6 |
|
| 11 |
2017 Credit
Facility |
|
160.4 |
|
(3.3 |
) |
157.1 |
|
(1.7 |
) |
155.4 |
|
| 12 |
DVB 2017
Credit Facility |
|
76.9 |
|
(1.5 |
) |
75.4 |
|
(1.5 |
) |
73.9 |
|
| 13 |
Credit
Agricole Credit Facility |
|
105.7 |
|
(2.1 |
) |
103.6 |
|
— |
|
103.6 |
|
| 14 |
ABN
AMRO/K-Sure Credit Facility |
|
52.4 |
|
(1.0 |
) |
51.4 |
|
— |
|
51.4 |
|
| 15 |
Citi/K-Sure
Credit Facility |
|
110.0 |
|
(2.1 |
) |
107.9 |
|
— |
|
107.9 |
|
| 16 |
ABN
AMRO/SEB Credit Facility |
|
— |
|
120.6 |
|
120.6 |
|
|
120.6 |
|
| 17 |
Ocean Yield
Lease Financing |
|
168.1 |
|
(2.6 |
) |
165.5 |
|
(0.9 |
) |
164.6 |
|
| 18 |
CMBFL Lease
Financing |
|
65.7 |
|
(1.2 |
) |
64.5 |
|
— |
|
64.5 |
|
| 19 |
BCFL Lease
Financing (LR2s) |
|
106.3 |
|
(1.8 |
) |
104.5 |
|
(0.6 |
) |
103.9 |
|
| 20 |
CSSC Lease
Financing |
|
259.5 |
|
(4.3 |
) |
255.2 |
|
(1.4 |
) |
253.8 |
|
| 21 |
BCFL Lease
Financing (MRs) |
|
106.7 |
|
(2.6 |
) |
104.1 |
|
(0.8 |
) |
103.3 |
|
| 22 |
2020 Senior
Unsecured Notes |
|
53.8 |
|
— |
|
53.8 |
|
— |
|
53.8 |
|
| 23 |
2019 Senior
Unsecured Notes |
|
57.5 |
|
— |
|
57.5 |
|
— |
|
57.5 |
|
| 24 |
Convertible
Notes due 2019 |
|
348.5 |
|
(188.5 |
) |
160.0 |
|
(15.0 |
) |
145.0 |
|
| 25 |
Convertible
Notes due 2022 |
|
— |
|
188.5 |
|
188.5 |
|
15.0 |
|
203.5 |
|
| |
|
|
$ |
2,813.9 |
|
$ |
(0.1 |
) |
$ |
2,813.8 |
|
$ |
(12.8 |
) |
$ |
2,801.0 |
|
Set forth below are the expected, estimated
future principal repayments on the Company's outstanding
indebtedness which includes amounts due under sale and finance
leaseback arrangements:
| In millions of U.S. dollars |
As of July 30, 2018
(1) |
Pro-forma for new financing
agreements (2) |
| Q3 2018 -
principal payments made to date |
$ |
12.8 |
|
$ |
12.8 |
|
| Q3 2018 -
remaining principal payments |
41.1 |
|
49.9 |
|
| Q4
2018 |
41.9 |
|
46.3 |
|
| Q1
2019 |
66.5 |
|
63.1 |
|
| Q2 2019
(3) |
126.1 |
|
104.0 |
|
| Q3 2019
(4) |
211.2 |
|
208.5 |
|
| Q4
2019 |
41.6 |
|
46.7 |
|
| 2020 and
thereafter |
2,272.6 |
|
2,569.1 |
|
| |
|
|
| |
$ |
2,813.8 |
|
$ |
3,100.4 |
|
(1) Amounts represent the estimated
principal payments due on the Company's outstanding indebtedness as
of July 30, 2018, which do not incorporate the impact of the
Company's new financing initiatives which have not closed as of
that date.(2) Amounts represent the estimated principal
payments due on the Company's outstanding indebtedness after
incorporating the impact of the Company's new financing initiatives
which have been agreed to as of July 30, 2018 but have not
closed.(3) Repayments include $57.5 million due upon
the maturity of the Company's 2019 Senior Unsecured Notes.(4)
Repayments include $145.0 million due upon the maturity of
the Company's Convertible Notes due 2019.
Explanation of Variances on the Second
Quarter of 2018 Financial Results Compared to the Second Quarter of
2017
For the three months ended June 30, 2018, the
Company recorded a net loss of $68.9 million compared to a net loss
of $68.3 million for the three months ended June 30, 2017. The
following were the significant changes between the two periods:
- TCE revenue, a Non-IFRS measure, is vessel revenues less voyage
expenses (including bunkers and port charges). TCE revenue is
included herein because it is a standard shipping industry
performance measure used primarily to compare period-to-period
changes in a shipping company's performance irrespective of changes
in the mix of charter types (i.e., spot charters, time charters,
and pool charters), and it provides useful information to investors
and management. The following table depicts TCE revenue for the
three months ended June 30, 2018 and 2017:
| |
|
|
For the three months ended June
30, |
| In thousands of U.S. dollars |
|
2018 |
|
2017 |
| |
Vessel
revenue |
|
$ |
141,795 |
|
|
$ |
118,418 |
|
| |
Voyage
expenses |
|
(1,033 |
) |
|
(912 |
) |
| |
TCE
revenue |
|
$ |
140,762 |
|
|
$ |
117,506 |
|
- TCE revenue for the three months ended June 30, 2018 increased
$23.3 million to $140.8 million, from $117.5 million for the three
months ended June 30, 2017. This increase was driven by the growth
of the Company's fleet to an average of 127.0 operating vessels
during the three months ended June 30, 2018 from an average of 98.3
operating vessels during the three months ended June 30,
2017. This growth was the result of the merger with NPTI,
which resulted in the delivery of four vessels in June 2017 and 23
vessels in September 2017. In addition, the Company took
delivery of eight vessels under its newbuilding program throughout
2017 and two vessels under its newbuilding program during the first
quarter of 2018. The increase in TCE revenue resulting from the
increase in the size of the Company's fleet was offset by a
reduction in TCE revenue per day, which decreased to $12,301 per
day during the three months ended June 30, 2018, from $13,227 per
day during the three months ended June 30, 2017. The spot
market for product tankers continues to face adverse market
conditions as a result of an unfavorable global supply and demand
imbalance resulting primarily from weaker global refining margins
and the continued absorption of an influx of prior year newbuilding
deliveries. In particular the LR2 segment further deteriorated
during the second quarter of 2018 primarily as a result of a
reduction in light distillates heading from Europe to the Far
East.
- Vessel operating costs for the three months ended June 30, 2018
increased $19.6 million to $69.5 million, from $49.8 million for
the three months ended June 30, 2017. This increase was the
result of an increase in the average number of owned and bareboat
chartered-in vessels for the three months ended June 30, 2018 to
119.0 vessels from 87.9 vessels for the three months ended June 30,
2017. This growth was the result of (i) the merger with NPTI, which
resulted in the delivery of four vessels in June 2017 and 23
vessels in September 2017, and (ii) the delivery of eight vessels
under the Company's newbuilding program throughout 2017 and two
vessels under the Company's newbuilding program during the first
quarter of 2018. These additions were offset by the sales of
two MR tankers in June and July 2017.
- Charterhire expense for the three months ended June 30, 2018
decreased $2.3 million to $17.2 million, from $19.5 million for the
three months ended June 30, 2017. This decrease was the
result of the change in the composition of the Company's time and
bareboat chartered-in fleet during those periods. The
Company's time and bareboat chartered-in fleet consisted of an
average 8.0 time chartered-in vessels and 10.0 bareboat
chartered-in vessels for the three months ended June 30, 2018, and
the Company's time and bareboat chartered-in fleet consisted of an
average of 10.4 time chartered-in vessels and 9.3 bareboat
chartered-in vessels for the three months ended June 30,
2017. The average daily base rates on the Company's time
chartered-in fleet during the three months ended June 30, 2018 and
three months ended June 30, 2017 were $14,231 per vessel per day
and $14,110 per vessel per day, respectively. The average
daily base rates for the Company's bareboat chartered-in fleet
during the three months ended June 30, 2018 and three months ended
June 30, 2017 were $7,672 per vessel per day and $7,175 per vessel
per day, respectively.
- Depreciation expense for the three months ended June 30, 2018
increased $13.1 million to $44.1 million, from $31.0 million for
the three months ended June 30, 2017. This increase was
primarily driven by (i) the delivery of two LR2 and six MR vessels
under the Company's newbuilding program during 2017, (ii) the
delivery of the four LR1 vessels acquired from NPTI in June 2017,
(iii) the delivery of eight LR1 and 15 LR2 vessels acquired from
NPTI in September 2017, and (iv) the delivery of two MR vessels
under the Company's newbuilding program in January 2018.
These deliveries were offset by the sales of five MR vessels
throughout 2017, of which three were leased back under bareboat
charter-in operating lease arrangements.
- Financial expenses for the three months ended June 30, 2018
increased $23.9 million to $48.9 million, from $25.0 million for
the three months ended June 30, 2017. The increase in financial
expenses was primarily a result of (i) increased interest expense
incurred as a result of the assumption of $924.8 million of
indebtedness as part of the Company's merger with NPTI ($118.3
million in June 2017 and $806.4 million in September 2017), (ii)
increases in LIBOR rates when compared to the second quarter of
2017, and (iii) the write-off of $7.0 million of deferred financing
fees during the second quarter of 2018 as a result of the May 2018
Convertible Notes Exchange, the refinancing of the existing
indebtedness on five vessels into the ABN/SEB Credit Facility and
the acceleration of a portion of the deferred financing fees
related to the credit facilities that are expected to be refinanced
in the third quarter of 2018.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended June
30, |
|
For the six months ended June
30, |
| In thousands of U.S. dollars except per share and share
data |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
|
|
|
|
|
|
|
| |
Vessel
revenue |
$ |
141,795 |
|
|
$ |
118,418 |
|
|
$ |
298,241 |
|
|
$ |
241,219 |
|
| |
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
| |
Vessel
operating costs |
(69,474 |
) |
|
(49,838 |
) |
|
(139,904 |
) |
|
(97,986 |
) |
| |
Voyage
expenses |
(1,033 |
) |
|
(912 |
) |
|
(4,372 |
) |
|
(3,444 |
) |
| |
Charterhire |
(17,157 |
) |
|
(19,473 |
) |
|
(35,169 |
) |
|
(38,904 |
) |
| |
Depreciation |
(44,092 |
) |
|
(31,039 |
) |
|
(87,547 |
) |
|
(61,541 |
) |
| |
General and
administrative expenses |
(13,346 |
) |
|
(11,692 |
) |
|
(26,972 |
) |
|
(23,602 |
) |
| |
Loss on
sale of vessels and write-down of vessel held for sale |
— |
|
|
(23,352 |
) |
|
— |
|
|
(23,352 |
) |
| |
Merger
transaction related costs |
(7 |
) |
|
(32,530 |
) |
|
(271 |
) |
|
(32,530 |
) |
| |
Bargain
purchase gain |
— |
|
|
5,417 |
|
|
— |
|
|
5,417 |
|
| |
Total
operating expenses |
(145,109 |
) |
|
(163,419 |
) |
|
(294,235 |
) |
|
(275,942 |
) |
| Operating (loss) / income |
(3,314 |
) |
|
(45,001 |
) |
|
4,006 |
|
|
(34,723 |
) |
| Other (expense) and income, net |
|
|
|
|
|
|
|
| |
Financial
expenses |
(48,949 |
) |
|
(25,030 |
) |
|
(88,367 |
) |
|
(46,694 |
) |
| |
Loss on
exchange of convertible notes |
(16,968 |
) |
|
— |
|
|
(16,968 |
) |
|
— |
|
| |
Realized
loss on derivative financial instruments |
— |
|
|
— |
|
|
— |
|
|
(116 |
) |
| |
Financial
income |
345 |
|
|
436 |
|
|
730 |
|
|
489 |
|
| |
Other
expenses, net |
(15 |
) |
|
1,345 |
|
|
(96 |
) |
|
1,262 |
|
| |
Total other
expense, net |
(65,587 |
) |
|
(23,249 |
) |
|
(104,701 |
) |
|
(45,059 |
) |
| Net loss |
$ |
(68,901 |
) |
|
$ |
(68,250 |
) |
|
$ |
(100,695 |
) |
|
$ |
(79,782 |
) |
| |
|
|
|
|
|
|
|
|
| Loss per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.22 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.46 |
) |
| |
Diluted |
$ |
(0.22 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.46 |
) |
| |
Basic
weighted average shares outstanding |
309,575,449 |
|
|
181,378,540 |
|
|
308,914,701 |
|
|
172,096,465 |
|
| |
Diluted
weighted average shares outstanding (1) |
309,575,449 |
|
|
181,378,540 |
|
|
308,914,701 |
|
|
172,096,465 |
|
(1) The dilutive effect of (i) unvested shares
of restricted stock and (ii) the potentially dilutive securities
relating to the Company's Convertible Notes were excluded from the
computation of diluted earnings per share for the three and six
months ended June 30, 2018 because their effect would have been
anti-dilutive. Weighted average shares under the if-converted
method (which includes the potential dilutive effect of both the
unvested shares of restricted stock and the Convertible Notes) were
362,955,633 and 354,768,910 for the three and six months ended June
30, 2018, respectively.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In
thousands of U.S. dollars |
June 30, 2018 |
|
December 31, 2017 |
|
Assets |
|
|
|
|
Current assets |
|
|
|
| Cash and
cash equivalents |
$ |
164,578 |
|
|
$ |
186,462 |
|
| Accounts
receivable |
50,302 |
|
|
65,458 |
|
| Prepaid
expenses and other current assets |
13,276 |
|
|
17,720 |
|
|
Inventories |
8,362 |
|
|
9,713 |
|
|
Total current assets |
236,518 |
|
|
279,353 |
|
|
Non-current assets |
|
|
|
| Vessels and
drydock |
4,084,167 |
|
|
4,090,094 |
|
| Vessels
under construction |
— |
|
|
55,376 |
|
| Other
assets |
55,538 |
|
|
50,684 |
|
|
Goodwill |
11,643 |
|
|
11,482 |
|
| Restricted
cash |
12,284 |
|
|
11,387 |
|
|
Total non-current assets |
4,163,632 |
|
|
4,219,023 |
|
|
Total assets |
$ |
4,400,150 |
|
|
$ |
4,498,376 |
|
|
Current liabilities |
|
|
|
| Current
portion of long-term debt |
$ |
230,743 |
|
|
$ |
113,036 |
|
| Finance
lease liability |
50,622 |
|
|
50,146 |
|
| Accounts
payable |
15,762 |
|
|
13,044 |
|
| Accrued
expenses |
25,192 |
|
|
32,838 |
|
|
Total current liabilities |
322,319 |
|
|
209,064 |
|
|
Non-current liabilities |
|
|
|
| Long-term
debt |
1,810,869 |
|
|
1,937,018 |
|
| Finance
lease liability |
641,584 |
|
|
666,993 |
|
|
Total non-current liabilities |
2,452,453 |
|
|
2,604,011 |
|
|
Total liabilities |
2,774,772 |
|
|
2,813,075 |
|
|
Shareholders' equity |
|
|
|
| Issued,
authorized and fully paid-in share capital: |
|
|
|
| Share
capital |
3,817 |
|
|
3,766 |
|
| Additional
paid-in capital |
2,324,309 |
|
|
2,283,591 |
|
| Treasury
shares |
(443,816 |
) |
|
(443,816 |
) |
| Accumulated
deficit (1) |
(258,932 |
) |
|
(158,240 |
) |
|
Total shareholders' equity |
1,625,378 |
|
|
1,685,301 |
|
|
Total liabilities and shareholders' equity |
$ |
4,400,150 |
|
|
$ |
4,498,376 |
|
(1) Accumulated deficit reflects the
impact of the adoption of IFRS 15, Revenue from Contracts with
Customers, which is effective for annual periods beginning on
January 1, 2018. The standard may be applied retrospectively
to each prior period presented or retrospectively with the
cumulative effect recognized as of the date of adoption (the
"modified retrospective method"). We have applied the modified
retrospective method upon the date of transition.
Accordingly, the cumulative effect of the application of this
standard resulted in a $3,888 reduction in the opening balance of
Accumulated deficit on January 1, 2018.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statement of
Cash Flows(unaudited)
| |
For the six months ended June
30, |
| In
thousands of U.S. dollars |
2018 |
|
2017 |
|
Operating activities |
|
|
|
| Net
loss |
$ |
(100,695 |
) |
|
$ |
(79,782 |
) |
| Loss on
sales of vessels and write-down of vessel held for sale |
— |
|
|
23,352 |
|
|
Depreciation |
87,547 |
|
|
61,541 |
|
|
Amortization of restricted stock |
13,180 |
|
|
11,605 |
|
|
Amortization of deferred financing fees |
6,191 |
|
|
6,640 |
|
| Write-off
of deferred financing fees |
7,035 |
|
|
867 |
|
| Bargain
purchase gain |
— |
|
|
(5,417 |
) |
| Share-based
transaction costs |
— |
|
|
5,973 |
|
| Accretion
of convertible notes |
6,435 |
|
|
6,009 |
|
| Accretion
of fair value measurement on debt assumed from NPTI |
1,909 |
|
|
37 |
|
| Loss on
exchange of convertible notes |
16,968 |
|
|
— |
|
| |
38,570 |
|
|
30,825 |
|
| Changes in
assets and liabilities: |
|
|
|
| Decrease in
inventories |
1,473 |
|
|
132 |
|
| Decrease in
accounts receivable |
15,039 |
|
|
8,715 |
|
| Decrease /
(increase) in prepaid expenses and other current assets |
4,620 |
|
|
(2,639 |
) |
| Increase in
other assets |
(3,576 |
) |
|
(3,141 |
) |
| Increase /
(decrease) in accounts payable |
2,767 |
|
|
(1,110 |
) |
| (Decrease)
/ increase in accrued expenses |
(6,165 |
) |
|
27,092 |
|
| |
14,158 |
|
|
29,049 |
|
| Net
cash inflow from operating activities |
52,728 |
|
|
59,874 |
|
|
Investing activities |
|
|
|
| Acquisition
of vessels and payments for vessels under construction |
(26,057 |
) |
|
(148,197 |
) |
| Proceeds
from disposal of vessels |
— |
|
|
99,909 |
|
| Net cash
paid for the acquisition of the four LR1 vessels from NPTI |
— |
|
|
(38,211 |
) |
| Drydock
payments (owned and bareboat-in vessels) |
(2,136 |
) |
|
(357 |
) |
| Net
cash outflow from investing activities |
(28,193 |
) |
|
(86,856 |
) |
|
Financing activities |
|
|
|
| Debt
repayments |
(167,491 |
) |
|
(283,473 |
) |
| Issuance of
debt |
142,025 |
|
|
317,775 |
|
| Debt
issuance costs |
(13,473 |
) |
|
(10,305 |
) |
| Increase in
restricted cash |
(897 |
) |
|
(1,708 |
) |
| Gross
proceeds from issuance of common stock |
— |
|
|
200,000 |
|
| Equity
issuance costs |
(4 |
) |
|
(11,291 |
) |
| Dividends
paid |
(6,579 |
) |
|
(3,493 |
) |
| Net
cash (outflow) / inflow from financing activities |
(46,419 |
) |
|
207,505 |
|
|
(Decrease) / increase in cash and cash
equivalents |
(21,884 |
) |
|
180,523 |
|
| Cash and
cash equivalents at January 1, |
186,462 |
|
|
99,887 |
|
|
Cash and cash equivalents at June 30, |
$ |
164,578 |
|
|
$ |
280,410 |
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three and
six months ended June 30, 2018 and
2017(unaudited)
| |
|
For the three months ended June
30, |
|
For the six months ended June
30, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Adjusted EBITDA(1) (in thousands of U.S.
dollars) |
|
$ |
47,300 |
|
|
$ |
43,165 |
|
|
$ |
104,908 |
|
|
$ |
90,034 |
|
| |
|
|
|
|
|
|
|
|
|
Average Daily Results |
|
|
|
|
|
|
|
|
| Time
charter equivalent per day(2) |
|
$ |
12,301 |
|
|
$ |
13,227 |
|
|
$ |
12,816 |
|
|
$ |
13,799 |
|
| Vessel
operating costs per day(3) |
|
$ |
6,391 |
|
|
$ |
6,233 |
|
|
$ |
6,507 |
|
|
$ |
6,370 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per
revenue day (2) |
|
$ |
12,861 |
|
|
$ |
15,021 |
|
|
$ |
13,572 |
|
|
$ |
15,760 |
|
| Vessel
operating costs per day(3) |
|
$ |
6,436 |
|
|
$ |
6,320 |
|
|
$ |
6,650 |
|
|
$ |
6,433 |
|
| Average
number of owned or finance leased vessels |
|
38.0 |
|
|
22.6 |
|
|
38.0 |
|
|
21.9 |
|
| Average
number of time chartered-in vessels |
|
2.0 |
|
|
1.0 |
|
|
1.7 |
|
|
1.1 |
|
| |
|
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
|
| TCE per
revenue day (2) |
|
$ |
11,090 |
|
|
$ |
8,889 |
|
|
$ |
10,608 |
|
|
$ |
10,986 |
|
| Vessel
operating costs per day(3) |
|
$ |
6,613 |
|
|
$ |
5,316 |
|
|
$ |
6,805 |
|
|
$ |
5,316 |
|
| Average
number of owned or finance leased vessels |
|
12.0 |
|
|
0.7 |
|
|
12.0 |
|
|
0.4 |
|
| Average
number of time chartered-in vessels |
|
— |
|
|
0.5 |
|
|
— |
|
|
0.8 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per
revenue day (2) |
|
$ |
12,567 |
|
|
$ |
13,082 |
|
|
$ |
13,049 |
|
|
$ |
13,254 |
|
| Vessel
operating costs per day(3) |
|
$ |
6,392 |
|
|
$ |
6,135 |
|
|
$ |
6,384 |
|
|
$ |
6,224 |
|
| Average
number of owned or finance leased vessels |
|
45.0 |
|
|
41.3 |
|
|
44.8 |
|
|
41.7 |
|
| Average
number of time chartered-in vessels |
|
5.6 |
|
|
6.9 |
|
|
5.9 |
|
|
7.4 |
|
| Average
number of bareboat chartered-in vessels |
|
3.0 |
|
|
2.3 |
|
|
3.0 |
|
|
1.1 |
|
| |
|
|
|
|
|
|
|
|
|
Handymax |
|
|
|
|
|
|
|
|
| TCE per
revenue day (2) |
|
$ |
11,267 |
|
|
$ |
11,908 |
|
|
$ |
12,096 |
|
|
$ |
13,100 |
|
| Vessel
operating costs per day(3) |
|
$ |
6,183 |
|
|
$ |
6,349 |
|
|
$ |
6,357 |
|
|
$ |
6,626 |
|
| Average
number of owned or finance leased vessels |
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
| Average
number of time chartered-in vessels |
|
0.3 |
|
|
2.0 |
|
|
1.1 |
|
|
2.1 |
|
| Average
number of bareboat chartered-in vessels |
|
7.0 |
|
|
7.0 |
|
|
7.0 |
|
|
5.2 |
|
| |
|
|
|
|
|
|
|
|
|
Fleet data |
|
|
|
|
|
|
|
|
| Average
number of owned or finance leased vessels |
|
109.0 |
|
|
78.6 |
|
|
108.8 |
|
|
77.9 |
|
| Average
number of time chartered-in vessels |
|
8.0 |
|
|
10.4 |
|
|
8.7 |
|
|
11.4 |
|
| Average
number of bareboat chartered-in vessels |
|
10.0 |
|
|
9.3 |
|
|
10.0 |
|
|
6.3 |
|
| |
|
|
|
|
|
|
|
|
|
Drydock |
|
|
|
|
|
|
|
|
| Drydock
payments for owned or bareboat-in vessels (in thousands of U.S.
dollars) |
|
$ |
1,698 |
|
|
$ |
357 |
|
|
$ |
2,136 |
|
|
$ |
357 |
|
| (1) |
See Non-IFRS Measures section below. |
| (2) |
Freight rates are commonly measured in the shipping industry
in terms of time charter equivalent per day (or TCE per day), which
is calculated by subtracting voyage expenses, including bunkers and
port charges, from vessel revenue and dividing the net amount (time
charter equivalent revenues) by the number of revenue days in the
period. Revenue days are the number of days the vessel is owned or
chartered-in less the number of days the vessel is off-hire for
drydock and repairs. |
| (3) |
Vessel operating costs per day represent vessel operating
costs divided by the number of operating days during the period.
Operating days are the total number of available days in a period
with respect to the owned or bareboat chartered-in vessels, before
deducting available days due to off-hire days and days in drydock.
Operating days is a measurement that is only applicable to our
owned, finance leased or bareboat chartered-in vessels, not our
time chartered-in vessels. |
| Fleet list as of July 30,
2018 |
| |
|
|
Vessel Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
|
Owned or
finance leased vessels |
|
|
|
|
|
|
|
|
|
|
| 1 |
|
STI
Brixton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 2 |
|
STI
Comandante |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 3 |
|
STI
Pimlico |
|
2014 |
|
38,734 |
|
1A |
|
Time Charter (5) |
|
Handymax |
| 4 |
|
STI
Hackney |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 5 |
|
STI
Acton |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 6 |
|
STI
Fulham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 7 |
|
STI
Camden |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 8 |
|
STI
Battersea |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 9 |
|
STI
Wembley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 10 |
|
STI
Finchley |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 11 |
|
STI
Clapham |
|
2014 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 12 |
|
STI
Poplar |
|
2014 |
|
38,734 |
|
1A |
|
Time Charter (5) |
|
Handymax |
| 13 |
|
STI
Hammersmith |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 14 |
|
STI
Rotherhithe |
|
2015 |
|
38,734 |
|
1A |
|
SHTP (1) |
|
Handymax |
| 15 |
|
STI
Amber |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 16 |
|
STI
Topaz |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 17 |
|
STI
Ruby |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 18 |
|
STI
Garnet |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 19 |
|
STI
Onyx |
|
2012 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 20 |
|
STI
Fontvieille |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 21 |
|
STI
Ville |
|
2013 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 22 |
|
STI
Duchessa |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 23 |
|
STI
Opera |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 24 |
|
STI Texas
City |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 25 |
|
STI
Meraux |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 26 |
|
STI San
Antonio |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 27 |
|
STI
Venere |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 28 |
|
STI
Virtus |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 29 |
|
STI
Aqua |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 30 |
|
STI
Dama |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 31 |
|
STI
Benicia |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 32 |
|
STI
Regina |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 33 |
|
STI St.
Charles |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 34 |
|
STI
Mayfair |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 35 |
|
STI
Yorkville |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 36 |
|
STI
Milwaukee |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 37 |
|
STI
Battery |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 38 |
|
STI
Soho |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 39 |
|
STI
Memphis |
|
2014 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 40 |
|
STI
Tribeca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 41 |
|
STI
Gramercy |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 42 |
|
STI
Bronx |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 43 |
|
STI
Pontiac |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 44 |
|
STI
Manhattan |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 45 |
|
STI
Queens |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 46 |
|
STI
Osceola |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 47 |
|
STI Notting
Hill |
|
2015 |
|
49,687 |
|
1B |
|
Time Charter (6) |
|
MR |
| 48 |
|
STI
Seneca |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 49 |
|
STI
Westminster |
|
2015 |
|
49,687 |
|
1B |
|
Time Charter (6) |
|
MR |
| 50 |
|
STI
Brooklyn |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 51 |
|
STI Black
Hawk |
|
2015 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 52 |
|
STI
Galata |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 53 |
|
STI
Bosphorus |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 54 |
|
STI
Leblon |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 55 |
|
STI La
Boca |
|
2017 |
|
49,990 |
|
— |
|
SMRP (2) |
|
MR |
| 56 |
|
STI San
Telmo |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
| 57 |
|
STI Donald
C Trauscht |
|
2017 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
| 58 |
|
STI Esles
II |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
| 59 |
|
STI
Jardins |
|
2018 |
|
49,990 |
|
1B |
|
SMRP (2) |
|
MR |
| 60 |
|
STI
Excel |
|
2015 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 61 |
|
STI
Excelsior |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 62 |
|
STI
Expedite |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 63 |
|
STI
Exceed |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 64 |
|
STI
Executive |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 65 |
|
STI
Excellence |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 66 |
|
STI
Experience |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 67 |
|
STI
Express |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 68 |
|
STI
Precision |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 69 |
|
STI
Prestige |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 70 |
|
STI
Pride |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 71 |
|
STI
Providence |
|
2016 |
|
74,000 |
|
— |
|
SLR1P (3) |
|
LR1 |
| 72 |
|
STI
Elysees |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 73 |
|
STI
Madison |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 74 |
|
STI
Park |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 75 |
|
STI
Orchard |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 76 |
|
STI
Sloane |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 77 |
|
STI
Broadway |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 78 |
|
STI
Condotti |
|
2014 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 79 |
|
STI
Rose |
|
2015 |
|
109,999 |
|
— |
|
Time Charter (7) |
|
LR2 |
| 80 |
|
STI
Veneto |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 81 |
|
STI
Alexis |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 82 |
|
STI
Winnie |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 83 |
|
STI
Oxford |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 84 |
|
STI
Lauren |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 85 |
|
STI
Connaught |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 86 |
|
STI
Spiga |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 87 |
|
STI Savile
Row |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 88 |
|
STI
Kingsway |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 89 |
|
STI
Carnaby |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 90 |
|
STI
Solidarity |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 91 |
|
STI
Lombard |
|
2015 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 92 |
|
STI
Grace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 93 |
|
STI
Jermyn |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 94 |
|
STI
Sanctity |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 95 |
|
STI
Solace |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 96 |
|
STI
Stability |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 97 |
|
STI
Steadfast |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 98 |
|
STI
Supreme |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 99 |
|
STI
Symphony |
|
2016 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 100 |
|
STI
Gallantry |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 101 |
|
STI
Goal |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 102 |
|
STI
Nautilus |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 103 |
|
STI
Guard |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 104 |
|
STI
Guide |
|
2016 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 105 |
|
STI
Selatar |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 106 |
|
STI
Rambla |
|
2017 |
|
109,999 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 107 |
|
STI
Gauntlet |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 108 |
|
STI
Gladiator |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
| 109 |
|
STI
Gratitude |
|
2017 |
|
113,000 |
|
— |
|
SLR2P (4) |
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total owned
or finance leased DWT |
|
|
|
7,883,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Charter type |
|
Daily Base Rate |
|
Expiry (8) |
|
|
|
Time or
bareboat chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 110 |
|
Silent |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(9) |
| 111 |
|
Single |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(9) |
| 112 |
|
Star I |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(9) |
| 113 |
|
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(9) |
| 114 |
|
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(9) |
| 115 |
|
Stone
I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(9) |
| 116 |
|
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(9) |
| 117 |
|
Miss
Benedetta |
|
2012 |
|
47,499 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Time charter |
|
$ |
14,000 |
|
|
16-Mar-19 |
(10) |
| 118 |
|
STI
Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
18-Apr-25 |
(11) |
| 119 |
|
STI Le
Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
21-Apr-25 |
(11) |
| 120 |
|
STI
Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
28-Apr-25 |
(11) |
| 121 |
|
Gan-Trust |
|
2013 |
|
51,561 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Time charter |
|
$ |
13,950 |
|
|
06-Jan-19 |
(12) |
| 122 |
|
CPO New
Zealand |
|
2011 |
|
51,717 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Time charter |
|
$ |
15,250 |
|
|
12-Sep-18 |
(13) |
| 123 |
|
CPO
Australia |
|
2011 |
|
51,763 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Time charter |
|
$ |
15,250 |
|
|
01-Sep-18 |
(13) |
| 124 |
|
Ance |
|
2006 |
|
52,622 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Time charter |
|
$ |
13,500 |
|
|
12-Oct-18 |
(14) |
| 125 |
|
Densa
Alligator |
|
2013 |
|
105,708 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Time charter |
|
$ |
14,300 |
|
|
17-Aug-18 |
(15) |
| 126 |
|
Densa
Crocodile |
|
2015 |
|
105,408 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Time charter |
|
$ |
14,800 |
|
|
06-Dec-18 |
(16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total time
or bareboat chartered-in DWT |
|
|
|
881,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fleet
DWT |
|
|
|
8,764,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
This vessel
operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is a
Scorpio Group Pool and is operated by Scorpio Commercial Management
S.A.M., or SCM. SHTP and SCM are related parties to the
Company. |
| (2) |
|
This vessel
operates in the Scorpio MR Pool, or SMRP. SMRP is a Scorpio Group
Pool and is operated by SCM. SMRP and SCM are related parties to
the Company. |
| (3) |
|
This vessel
operates in the Scorpio LR1 Pool, or SLR1P. SLR1P is a Scorpio
Group Pool and is operated by SCM. SLR1P and SCM are related
parties to the Company. |
| (4) |
|
This vessel
operates in the Scorpio LR2 Pool, or SLR2P. SLR2P is a Scorpio
Group Pool and is operated by SCM. SLR2P and SCM are related
parties to the Company. |
| (5) |
|
This vessel
is currently time chartered-out to an unrelated third-party for
three years at $18,000 per day. This time charter is scheduled to
expire in January 2019. |
| (6) |
|
This vessel
is currently time chartered-out to an unrelated third-party for
three years at $20,500 per day. This time charter is scheduled to
expire in December 2018. |
| (7) |
|
This vessel
is currently time chartered-out to an unrelated third-party for
three years at $28,000 per day. This time charter is scheduled to
expire in February 2019. |
| (8) |
|
Redelivery
from the charterer is plus or minus 30 days from the expiry
date. |
| (9) |
|
This
agreement includes a purchase option which can be exercised through
December 31, 2018. If the purchase option is not exercised,
the bareboat-in agreement will expire on March 31, 2019. |
| (10) |
|
In January
2018, we entered into a time charter-in agreement for one year at
$14,000 per day. We have an option to extend the charter for
an additional year at $14,400 per day. |
| (11) |
|
In April
2017, we sold and leased back this vessel, on a bareboat basis, for
a period of up to eight years for $8,800 per day. The sales
price was $29.0 million and we have the option to purchase this
vessel beginning at the end of the fifth year of the agreement
through the end of the eighth year of the agreement, at market
based prices. Additionally, a deposit of $4.35 million was retained
by the buyer and will either be applied to the purchase price of
the vessel if a purchase option is exercised, or refunded to us at
the expiration of the agreement. |
| (12) |
|
We have an
option to extend this charter for an additional year at $15,750 per
day. |
| (13) |
|
We have an
option to extend this charter for an additional year at $16,000 per
day. |
| (14) |
|
We have an
option to extend this charter for an additional year at $15,000 per
day. |
| (15) |
|
In February
2018, we entered into a time charter-in agreement for six months at
$14,300 per day. We also have an option to extend the charter
for an additional six months at $15,310 per day. |
| (16) |
|
In May
2018, we entered into a time charter-in agreement for six months at
$14,800 per day. We also have an option to extend the charter for
an additional six months at $15,350 per day. |
Dividend Policy
The declaration and payment of dividends is
subject at all times to the discretion of the Company's Board of
Directors. The timing and amount of dividends, if any, depends on
the Company's earnings, financial condition, cash requirements and
availability, fleet renewal and expansion, restrictions in the loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2017 and 2018 were as
follows:
| Date paid |
Dividends
pershare |
| March 2017 |
$0.010 |
| June 2017 |
$0.010 |
| September 2017 |
$0.010 |
| December 2017 |
$0.010 |
| March 2018 |
$0.010 |
| June 2018 |
$0.010 |
On July 30, 2018, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about September 27, 2018 to all shareholders of
record as of September 20, 2018 (the record date). As of
July 30, 2018, there were 331,629,992 shares outstanding.
Securities Repurchase Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its (i)
Convertible Notes due 2019 (ii) Unsecured Senior Notes Due 2020
(NYSE:SBNA), which were issued in May 2014, (iii) Unsecured Senior
Notes Due 2019 (NYSE:SBBC), which were issued in March 2017, and
(iv) Convertible Notes due 2022.
No securities were repurchased under this
program during the period commencing January 1, 2018 through and
ending on the date of this press release.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns or finance leases 109 product tankers (38 LR2
tankers, 12 LR1 tankers, 45 MR tankers, 14 Handymax tankers) with
an average age of 3.0 years and time or bareboat charters-in 17
product tankers (two LR2 tankers, eight MR tankers and seven
Handymax tankers). Additional information about the Company is
available at the Company's website www.scorpiotankers.com, which is
not a part of this press release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS
Financial Information
This press release describes time charter
equivalent revenue, or TCE revenue, adjusted net income or loss and
adjusted EBITDA, which are not measures prepared in accordance with
IFRS (i.e. "Non-IFRS" measures). The Non-IFRS measures are
presented in this press release as we believe that they provide
investors and other users of our financial statements, such as our
lenders, with a means of evaluating and understanding how the
Company's management evaluates the Company's operating performance.
These Non-IFRS measures should not be considered in isolation from,
as substitutes for, or superior to financial measures prepared in
accordance with IFRS.
The Company believes that the presentation of
time charter equivalent revenue, adjusted net income or loss with
adjusted earnings or loss per share, basic and diluted, and
adjusted EBITDA are useful to investors or other users of our
financial statements, such as our lenders, because they facilitate
the comparability and the evaluation of companies in the Company’s
industry. In addition, the Company believes that time charter
equivalent revenue, adjusted net income or loss with adjusted
earnings or loss per share, basic and diluted, and adjusted EBITDA
are useful in evaluating its operating performance compared to that
of other companies in the Company’s industry. The Company’s
definitions of time charter equivalent revenue, adjusted net income
or loss with the adjusted earnings or loss per share, basic and
diluted, and adjusted EBITDA may not be the same as reported by
other companies in the shipping industry or other industries.
Time charter equivalent revenue is reconciled
above in the section entitled 'Explanation of Variances on the
Second Quarter of 2018 Financial Results Compared to the Second
Quarter of 2017'.
Reconciliation of Net Loss to Adjusted Net
Loss
| |
|
|
For the three months ended June
30, 2018 |
| |
|
|
|
|
Per share |
|
Per share |
| In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
| |
Net
loss |
|
$ |
(68,901 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.22 |
) |
| |
Adjustments: |
|
|
|
|
|
|
| |
Merger transaction related costs |
|
7 |
|
|
0.00 |
|
|
0.00 |
|
| |
Deferred financing fees write-off |
|
7,035 |
|
|
0.02 |
|
|
0.02 |
|
| |
Loss
on exchange of convertible notes |
|
16,968 |
|
|
0.05 |
|
|
0.05 |
|
| |
Adjusted
net loss |
|
$ |
(44,891 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
| |
|
|
For the three months ended June
30, 2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net
loss |
|
$ |
(68,250 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.38 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred financing fees write-off |
|
801 |
|
|
0.00 |
|
|
0.00 |
|
|
| |
Merger transaction related costs |
|
32,530 |
|
|
0.18 |
|
|
0.18 |
|
|
| |
Bargain purchase gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
| |
Loss
on sales of vessels |
|
23,352 |
|
|
0.13 |
|
|
0.13 |
|
|
| |
Adjusted
net loss |
|
$ |
(16,984 |
) |
|
$ |
0.09 |
|
(1) |
$ |
0.09 |
|
(1) |
| |
|
|
For the six months ended June 30,
2018 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net
loss |
|
$ |
(100,695 |
) |
|
$ |
(0.33 |
) |
|
(0.33 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Merger transaction related costs |
|
271 |
|
|
— |
|
|
— |
|
|
| |
Deferred financing fees write-off |
|
7,035 |
|
|
0.02 |
|
|
0.02 |
|
|
| |
Loss
on exchange of convertible notes |
|
16,968 |
|
|
0.05 |
|
|
0.05 |
|
|
| |
Adjusted
net loss |
|
$ |
(76,421 |
) |
|
$ |
(0.25 |
) |
(1) |
$ |
(0.25 |
) |
(1) |
| |
|
|
For the six months ended June 30,
2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net
loss |
|
$ |
(79,782 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.46 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred financing fees write-off |
|
867 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Merger transaction related costs |
|
32,530 |
|
|
0.19 |
|
|
0.19 |
|
|
| |
Bargain purchase gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
| |
Loss
on sales of vessels |
|
23,352 |
|
|
0.13 |
|
|
0.13 |
|
|
| |
Adjusted
net loss |
|
$ |
(28,450 |
) |
|
$ |
(0.17 |
) |
(1) |
$ |
(0.17 |
) |
(1) |
(1) Summation differences due to rounding.
Reconciliation of Net Loss to Adjusted
EBITDA
| |
|
|
For the three months ended June
30, |
|
For the six months ended June
30, |
| In thousands of U.S. dollars |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
Net
loss |
|
$ |
(68,901 |
) |
|
$ |
(68,250 |
) |
|
$ |
(100,695 |
) |
|
$ |
(79,782 |
) |
| |
Financial expenses |
|
48,949 |
|
|
25,030 |
|
|
88,367 |
|
|
46,694 |
|
| |
Financial income |
|
(345 |
) |
|
(436 |
) |
|
(730 |
) |
|
(489 |
) |
| |
Depreciation |
|
44,092 |
|
|
31,039 |
|
|
87,547 |
|
|
61,541 |
|
| |
Merger transaction related costs |
|
7 |
|
|
32,530 |
|
|
271 |
|
|
32,530 |
|
| |
Bargain purchase gain |
|
— |
|
|
(5,417 |
) |
|
— |
|
|
(5,417 |
) |
| |
Amortization of restricted stock |
|
6,530 |
|
|
5,317 |
|
|
13,180 |
|
|
11,605 |
|
| |
Loss on sale of vessels |
|
— |
|
|
23,352 |
|
|
— |
|
|
23,352 |
|
| |
Loss on exchange of convertible notes |
|
16,968 |
|
|
— |
|
|
16,968 |
|
|
— |
|
| |
Adjusted
EBITDA |
|
$ |
47,300 |
|
|
$ |
43,165 |
|
|
$ |
104,908 |
|
|
$ |
90,034 |
|
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "may," "should," "expect,"
"pending" and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections. We undertake no
obligation, and specifically decline any obligation, except as
required by law, to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include, unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies for the management,
expansion and growth of our operations, risks relating to the
integration of the operations of Navig8 Product Tankers Inc.
(“NPTI”) and the possibility that the anticipated synergies and
other benefits of the acquisition of NPTI will not be realized or
will not be realized within the expected timeframe, the outcome of
any legal proceedings related to the merger with NPTI and the
related transactions, the failure of counterparties to fully
perform their contracts with us, the strength of world economies
and currencies, general market conditions, including fluctuations
in charter rates and vessel values, changes in demand for tanker
vessel capacity, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, charter
counterparty performance, ability to obtain financing and comply
with covenants in such financing arrangements, changes in
governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation,
general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessels breakdowns and instances of off-hires, and other factors.
Please see Scorpio Tankers’ filings with
the U.S. Securities and Exchange Commission for a more
complete discussion of certain of these and other risks and
uncertainties.
Scorpio Tankers Inc.212-542-1616
Scorpio Tankers (NYSE:STNG)
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