Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers," or the
"Company") today reported its results for the three and nine months
ended September 30, 2017.
Results for the three months ended September 30, 2017
and 2016
For the three months ended September 30, 2017,
the Company's adjusted net loss (see Non-IFRS Measures section
below) was $34.0 million, or $0.15 basic and diluted loss per
share, which excludes from net loss (i) $2.3 million of transaction
costs related to the previously announced merger with Navig8
Product Tankers Inc ("NPTI") (see Merger with Navig8 Product
Tankers Inc below) and (ii) a $0.6 million write-off of deferred
financing fees. The adjustments resulted in an aggregate reduction
of the Company’s net loss by $2.9 million, or $0.01 basic and
diluted loss per share. For the three months ended September 30,
2017, the Company had a net loss of $36.9 million, or $0.16 basic
and diluted loss per share.
For the three months ended September 30,
2016, the Company's adjusted net loss (see Non-IFRS Measures
section below) was $18.3 million, or $0.11 basic and
diluted loss per share, which excludes from net loss (i) an
aggregate write-off of $9.0 million of deferred financing
fees and (ii) a $0.2 million unrealized gain on
derivative financial instruments. The adjustments resulted in an
aggregate reduction of the Company's net loss by $8.8
million, or $0.06 basic and diluted loss per share.
For the three months ended September 30, 2016, the Company had
a net loss of $27.1 million, or $0.17 basic and
diluted loss per share.
Results for the nine months ended September 30, 2017 and
2016
For the nine months ended September 30, 2017,
the Company's adjusted net loss was $62.5 million (see Non-IFRS
Measures section below), or $0.33 basic and diluted loss per share,
which excludes from net loss (i) a $23.3 million loss on sales of
vessels, (ii) $34.8 million of transaction costs related to the
previously announced merger with NPTI, (iii) a $5.4 million gain
recorded on the previously announced purchase of the four NPTI
subsidiaries that own four LR1 tankers, and (iv) a $1.5 million
write-off of deferred financing fees. The adjustments resulted in
an aggregate reduction of the Company's net loss by $54.2 million,
or $0.28 basic and diluted loss per share. For the nine
months ended September 30, 2017, the Company had a net loss of
$116.7 million, or $0.61 basic and diluted loss per share.
For the nine months ended September 30,
2016, the Company's adjusted net income (see Non-IFRS Measures
section below) was $18.7 million, or $0.12 basic
and $0.11 diluted earnings per share, which excludes from
net income (i) a $2.1 million loss on sales of vessels,
(ii) an aggregate write-off of $14.5 million of deferred
financing fees, (iii) a $1.6 million unrealized gain on
derivative financial instruments, and (iv) a $1.0
million aggregate gain recorded on the repurchase
of $10.0 million aggregate principal amount of the
Company's Convertible Notes. The adjustments resulted in an
aggregate increase of net income by $14.0
million, or $0.09 basic and $0.08 diluted
earnings per share. For the nine months ended September 30,
2016, the Company had net income of $4.8 million,
or $0.03 basic and diluted earnings per share.
Declaration of Dividend
On November 14, 2017, the Company's Board
of Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about December 28, 2017 to all shareholders as of
December 13, 2017 (the record date). As of November 14,
2017, there were 281,095,755 shares outstanding.
Diluted Weighted Number of
Shares
Diluted earnings per share is determined using
the if-converted method. Under this method, the Company assumes
that the Convertible Notes (which were issued in June 2014) are
converted into common shares at the beginning of each period and
the interest and non-cash amortization expense associated with
these notes of $5.6 million and $16.7 million during the three and
nine months ended September 30, 2017, respectively, are not
incurred. Conversion is not assumed if the results of this
calculation are anti-dilutive.
For the three and nine months ended September
30, 2017, the Company's basic weighted average number of shares
were 232,062,058 and 192,304,650, respectively. The weighted
average number of shares, both diluted and under the if-converted
method, were anti-dilutive for the three and nine months ended
September 30, 2017 as the Company incurred net losses.
For the three and nine months
ended September 30, 2016, the Company's basic weighted average
number of shares were 160,844,168 and 160,902,344, respectively.
The weighted average number of shares, both diluted and under the
if-converted method, were anti-dilutive for the three months
ended September 30, 2016 as the Company incurred a net
loss. The Company's diluted weighted average number of shares for
the nine months ended September 30, 2016 was 166,839,648
which excludes the impact of the Convertible Notes since the
if-converted method was anti-dilutive. As of the date hereof, the
Convertible Notes are not eligible for conversion.
Summary of Recent and Third Quarter
Significant Events
- Completed the acquisition of NPTI and its fleet of 12 LR1 and
15 LR2 product tankers in exchange for 55 million shares of common
stock and the assumption of NPTI's debt. Four of the LR1
product tankers were acquired on June 14, 2017, and the remaining
vessels were acquired upon the closing of the merger on September
1, 2017. See "Merger with Navig8 Product Tankers Inc" below.
- Below is a summary of the average daily TCE revenue and
duration for voyages fixed for the Company's vessels thus far in
the fourth quarter of 2017 as of the date hereof:
- For the LR2s in the pool: approximately $16,500 per day for 60%
of the days.
- For the LR1s in the pool: approximately $10,750 per day for 60%
of the days.
- For the MRs in the pool: approximately $11,750 per day for 55%
of the days.
- For the ice-class 1A and 1B Handymaxes in the pool:
approximately $9,200 per day for 60% of the days.
- Below is a summary of the average daily TCE revenue earned on
the Company's vessels during the third quarter of 2017:
- For the LR2s in the pools: $12,903 per revenue day (includes
the LR2s purchased from NPTI and operated in the Navig8 Alpha8 pool
for a portion of the third quarter 2017).
- For the LR1s in the pools: $12,037 per revenue day (includes
the LR1s purchased from NPTI and operated in the Navig8 LR8 pool
for all or a portion of the third quarter 2017).
- For the MRs in the pool: $12,788 per revenue day.
- For the Handymaxes in the pool: $9,370 per revenue day.
- Entered into finance lease agreements for five 2012 built MR
product tankers (STI Amber, STI Topaz, STI Ruby, STI Garnet and STI
Onyx) with an unaffiliated third party. The financing for three of
the vessels closed in September 2017, and the financing for one of
the vessels closed in October 2017, resulting in an increase to the
Company's liquidity of $29.4 million in aggregate, after the
repayment of outstanding debt. The financing for the remaining
vessel is expected to close before December 31, 2017 and is
expected to result in an additional increase in the Company's
liquidity of $7.1 million, after the repayment of outstanding
debt. See “Finance Lease Agreements” below.
- Took delivery of STI Leblon, STI La Boca, STI San Telmo
and STI Donald C Trauscht, four MR product tankers that were under
construction, from Hyundai Mipo Dockyard Co. Ltd. of South
Korea ("HMD"). STI Leblon and STI La Boca were delivered in
July 2017, STI San Telmo was delivered in September 2017, and STI
Donald C Trauscht was delivered in October 2017. As part of these
deliveries, the Company drew down $21.0 million, $21.0 million,
$20.6 million and $20.7 million in June, July, September and
October 2017, respectively, from its 2017 Credit Facility to
partially finance the purchase of these vessels.
- Paid a quarterly cash dividend on the Company's common stock of
$0.01 per share in September 2017.
Merger with Navig8 Product Tankers
Inc
On May 23, 2017, the Company entered into
definitive agreements to acquire NPTI, including its fleet of 12
LR1 and 15 LR2 product tankers for 55 million common shares of the
Company and the assumption of NPTI's debt. The key events and
corresponding timeline of the merger were as follows:
- On May 30, 2017, the Company issued 50 million shares of common
stock in an underwritten public offering at an offering price of
$4.00 per share for net proceeds of approximately $188.7 million,
after deducting underwriters' discounts and offering
expenses. The completion of this offering was a condition to
closing the merger with NPTI.
- On June 14, 2017, the Company acquired certain of NPTI’s
subsidiaries that own four LR1 tankers for an aggregate acquisition
price of $156.0 million, consisting of $42.2 million of cash and
$113.8 million of assumed indebtedness (including accrued
interest). The cash portion of the acquisition price (after
considering cash flows from operations) formed part of the balance
sheet of the combined company upon the closing of the merger on
September 1, 2017.
- On September 1, 2017, the merger with NPTI closed, and the
Company acquired the remaining eight LR1 and 15 LR2 tankers.
As of November 14, 2017, all of the vessels acquired from NPTI
have exited the Navig8 pools in which they were operating and have
entered, or are expected to enter, the Scorpio Group pools before
December 31, 2017.
- The Company assumed NPTI's aggregate outstanding indebtedness
of $806.4 million as of the date of closing.
Finance Lease Agreements
In September 2017, the Company entered into
finance lease agreements for five 2012 built MR product tankers
(STI Amber, STI Topaz, STI Ruby, STI Garnet and STI Onyx) to an
unaffiliated third party for a sales price of $27.5 million per
vessel. The financing for three of the vessels closed in
September 2017 and the financing for one of the vessels closed in
October 2017, resulting in an increase in the Company's liquidity
of $29.4 million in aggregate, after the repayment of outstanding
debt. The financing for the remaining vessel is expected to close
before December 31, 2017 and is expected to result in an additional
increase in the Company's liquidity of $7.1 million, after the
repayment of outstanding debt.
Each agreement is for a fixed term of seven
years at a bareboat rate of $9,025 per vessel per day, and the
Company has three consecutive one-year options to extend each
charter beyond the initial term. Furthermore, the Company has
the option to purchase these vessels beginning at the end of the
fifth year of the agreements through the end of the tenth year of
the agreements. A deposit of $5.1 million per vessel was retained
by the buyer and will either be applied to the purchase price of
the vessel if a purchase option is exercised, or refunded to the
Company at the expiration of the agreement (as applicable).
As a result of these transactions, the Company
repaid the outstanding debt balance of (i) $44.6 million in
aggregate for three vessels on its 2016 Credit Facility and (ii)
$13.8 million on its HSH Credit Facility for the remaining vessel.
These agreements are being accounted for as financing
transactions. Upon the closing of the final sale, the Company
expects to repay $14.9 million on its 2016 Credit Facility.
Time Charter-in Update
In November 2017, the Company extended the time
charter-in agreement for an MR that is currently time chartered-in
for an additional six months at $13,250 per day effective December
2017. The Company also has an option to extend the charter
for an additional year at $14,500 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, which were issued in June 2014, (ii) Unsecured
Senior Notes Due 2020 (NYSE:SBNA), which were issued in May 2014
and (iii) Unsecured Senior Notes Due 2019 (NYSE:SBBC), which were
issued in March 2017.
In April 2017, we acquired an aggregate of
250,419 of our Unsecured Senior Notes due 2017 for aggregate
consideration of $6.3 million, which was the result of the cash
tender offer of such notes. These notes matured and were
repaid in full in October 2017.
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.
Conference Call
The Company has scheduled a conference call on
November 16, 2017 at 8:30 AM Eastern Standard Time and 2:30 PM
Central European 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: 3439099
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/uheiuc6g
Current Liquidity
As of November 14, 2017, the Company had $120.8
million in unrestricted cash and cash equivalents.
Drydock Update
Five of the Company’s 2012 built MR product
tankers were drydocked in accordance with their scheduled, class
required special survey during the third quarter of 2017 and for a
portion of October 2017. These vessels were offhire for an
aggregate of 102 days and the aggregate estimated drydock cost is
approximately $6.0 million.
The Company has five MRs that are scheduled for
drydock throughout 2018 and estimates that these vessels will be
offhire for an aggregate of 100 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 June 30, 2017 |
Additions, drawdowns and (repayments), net |
Outstanding as of September 30,
2017 |
Drawdowns and (repayments), net |
Outstanding as of November 14,
2017 |
|
Availability as of November 14,
2017 |
| K-Sure Credit
Facility |
|
$ |
295.8 |
|
$ |
(12.3 |
) |
$ |
283.5 |
|
$ |
— |
|
$ |
283.5 |
|
|
$ |
— |
|
| KEXIM Credit
Facility |
|
349.8 |
|
(16.8 |
) |
333.0 |
|
— |
|
333.0 |
|
|
— |
|
| Credit Suisse Credit
Facility |
|
57.4 |
|
(3.9 |
) |
53.5 |
|
— |
|
53.5 |
|
|
— |
|
| ABN AMRO Credit
Facility |
|
117.7 |
|
(2.2 |
) |
115.5 |
|
(1.7 |
) |
113.8 |
|
|
— |
|
| ING Credit
Facility |
|
119.9 |
|
(10.0 |
) |
109.9 |
|
— |
|
109.9 |
|
|
— |
|
| BNP Paribas Credit
Facility |
|
31.0 |
|
— |
|
31.0 |
|
— |
|
31.0 |
|
|
— |
|
| Scotiabank Credit
Facility |
|
31.0 |
|
(2.2 |
) |
28.8 |
|
— |
|
28.8 |
|
|
— |
|
| NIBC Credit
Facility |
|
37.8 |
|
(3.1 |
) |
34.7 |
|
— |
|
34.7 |
|
|
— |
|
| 2016 Credit Facility
(1) |
|
267.6 |
|
(51.4 |
) |
216.2 |
|
— |
|
216.2 |
|
|
— |
|
| HSH Nordbank Credit
Facility (1) |
|
30.4 |
|
(0.7 |
) |
29.7 |
|
(14.2 |
) |
15.5 |
|
|
— |
|
| 2017 Credit Facility
(2) |
|
61.4 |
|
40.4 |
|
101.8 |
|
19.9 |
|
121.7 |
|
|
43.1 |
|
| DVB 2017 Credit
Facility |
|
81.4 |
|
(1.5 |
) |
79.9 |
|
(1.5 |
) |
78.4 |
|
|
— |
|
| Credit Agricole Credit
Facility (3) |
|
112.1 |
|
(2.1 |
) |
110.0 |
|
— |
|
110.0 |
|
|
— |
|
| ABN AMRO/K-Sure Credit
Facility (4) |
|
— |
|
54.3 |
|
54.3 |
|
— |
|
54.3 |
|
|
— |
|
| Citi/K-Sure Credit
Facility (5) |
|
— |
|
114.1 |
|
114.1 |
|
— |
|
114.1 |
|
|
— |
|
| Ocean Yield Sale and
Leaseback (6) |
|
— |
|
173.3 |
|
173.3 |
|
(0.9 |
) |
172.4 |
|
|
— |
|
| CMBFL Sale and
Leaseback (7) |
|
— |
|
68.0 |
|
68.0 |
|
— |
|
68.0 |
|
|
— |
|
| BCFL Sale and Leaseback
(LR2s) (8) |
|
— |
|
109.9 |
|
109.9 |
|
(0.6 |
) |
109.3 |
|
|
— |
|
| CSSC Sale and Leaseback
(9) |
|
— |
|
268.1 |
|
268.1 |
|
(1.4 |
) |
266.7 |
|
|
— |
|
| BCFL Sale and Leaseback
(MRs) (10) |
|
— |
|
66.6 |
|
66.6 |
|
21.9 |
|
88.5 |
|
|
— |
|
| 2020 senior unsecured
notes |
|
53.8 |
|
— |
|
53.8 |
|
— |
|
53.8 |
|
|
— |
|
| 2017 senior unsecured
notes (11) |
|
45.5 |
|
— |
|
45.5 |
|
(45.5 |
) |
— |
|
|
— |
|
| 2019 senior unsecured
notes |
|
57.5 |
|
— |
|
57.5 |
|
— |
|
57.5 |
|
|
— |
|
| Convertible Notes |
|
348.5 |
|
— |
|
348.5 |
|
— |
|
348.5 |
|
|
— |
|
| |
|
$ |
2,098.6 |
|
$ |
788.5 |
|
$ |
2,887.1 |
|
$ |
(24.0 |
) |
$ |
2,863.1 |
|
|
$ |
43.1 |
|
(1) In September 2017, the Company repaid $44.6 million on its
2016 Credit Facility as a result of the closing of the previously
announced finance lease for STI Topaz, STI Ruby and STI
Garnet. In October 2017, the Company repaid $13.8 million on
its HSH Credit Facility as a result of the closing of the finance
lease for STI Onyx.
(2) The Company drew down $21.0 million in July 2017, $20.6
million in September and $20.7 million in October 2017 from the
2017 Credit Facility to partially finance the purchases of STI La
Boca, STI San Telmo and STI Donald C Trauscht, respectively.
(3) In June 2017, prior to the closing of the merger with NPTI,
the Company acquired certain of NPTI's subsidiaries that own four
LR1 tankers (STI Excel, STI Excelsior, STI Expedite and STI
Exceed). This transaction closed on June 14, 2017, and the
Company assumed the outstanding indebtedness under NPTI's Credit
Agricole Credit Facility upon closing. Repayments will be made in
equal quarterly installments of $2.1 million in aggregate in
accordance with a 15-year repayment profile with a balloon payment
due upon maturity, which occurs between November 2022 and February
2023 (depending on the vessel). The facility bears interest
at LIBOR plus a margin of 2.75%. The remaining terms and
conditions, including financial covenants, have been amended to be
similar to those in the Company's existing credit facilities.
(4) The Company assumed the outstanding indebtedness under
NPTI's senior secured credit facility with ABN AMRO Bank N.V. and
Korea Trade Insurance Corporation ("K-Sure"), which we refer to as
the ABN AMRO/K-Sure Credit Facility, upon the closing of the merger
with NPTI in September 2017. Two LR1s (STI Precision and STI
Prestige) are collateralized under this facility, and the facility
consists of two separate tranches, an $11.5 million commercial
tranche and a $42.8 million K-Sure tranche (which represents the
amounts outstanding at September 30, 2017). The commercial
tranche bears interest at LIBOR plus 2.75%, and the K-Sure tranche
bears interest at LIBOR plus 1.80%. Repayments on the K-Sure
tranche will be made in equal quarterly installments of $1.0
million in accordance with a 12-year repayment profile from the
date of delivery from the shipyard, with a balloon payment due upon
maturity, and the commercial tranche will be repaid via a balloon
payment upon maturity in September and November 2022 (depending on
the vessel). The K-Sure tranche fully matures in September
and November 2028 (depending on the vessel), and K-Sure has an
option to require repayment upon the maturity of the commercial
tranche if the commercial tranche is not refinanced by its maturity
dates. The remaining terms and conditions, including
financial covenants, have been amended to be similar to those in
the Company's existing credit facilities.
(5) The Company assumed the outstanding indebtedness under
NPTI's senior secured credit facility with Citibank N.A., London
Branch, Caixabank, S.A., and K-Sure, which we refer to as the
Citi/K-Sure Credit Facility, upon the closing of the merger with
NPTI in September 2017. Four LR1s (STI Excellence, STI
Executive, STI Experience, and STI Express) are collateralized
under this facility. The facility consists of two separate
tranches, a $25.1 million commercial tranche and a $89.0 million
K-Sure tranche (which represents the amounts outstanding at
September 30, 2017). The commercial tranche bears interest at
LIBOR plus 2.50%, and the K-Sure tranche bears interest at LIBOR
plus 1.60%. Repayments on the K-Sure tranche will be made in
equal quarterly installments of $2.1 million in accordance with a
12-year repayment profile from the date of delivery from the
shipyard, with a balloon payment due upon maturity, and the
commercial tranche is scheduled to be repaid via a balloon payment
upon maturity which occurs between March and May 2022 (depending on
the vessel). The K-Sure tranche fully matures between March
and May 2028 (depending on the vessel), and K-Sure has an option to
require repayment upon the maturity of the commercial tranche if
the commercial tranche is not refinanced by its maturity
dates. The remaining terms and conditions, including
financial covenants, have been amended to be similar to those in
the Company's existing credit facilities.
(6) The Company assumed the obligations under NPTI’s finance
lease arrangement with Ocean Yield ASA for four LR2 tankers (STI
Sanctity, STI Steadfast, STI Supreme, and STI Symphony) upon the
closing of the merger with NPTI in September 2017. Under this
arrangement, each vessel is subject to a 13-year bareboat charter,
which expires between February and August 2029 (depending on the
vessel). Charterhire, which is paid monthly in advance,
includes a quarterly adjustment based on prevailing LIBOR
rates.
These arrangements are being accounted for as
financing transactions, with a portion of the fixed rate attributed
to interest expense and the remaining portion applied against the
principle balance. Future principal payments are approximately $0.2
million gradually increasing to $0.3 million per vessel per month
until the expiration of the agreement. The interest component of
the leases approximates LIBOR plus 5.40%. The Company also has
purchase options to re-acquire each of the vessels during the
bareboat charter period, with the first of such options exercisable
beginning at the end of the seventh year from the delivery date of
the subject vessel. The Company is subject to certain terms
and conditions, including financial covenants, under this
arrangement which have been amended to be similar to those in the
Company's existing credit facilities.
(7) The Company assumed the obligations under NPTI’s finance
lease arrangement with CMB Financial Leasing Co. Ltd ("CMBFL") for
two LR1 tankers (STI Pride and STI Providence) upon the closing of
the merger with NPTI in September 2017. Under this
arrangement, each vessel is subject to a seven-year bareboat
charter which expires in July or August 2023 (depending on the
vessel). Charterhire under the arrangement is comprised of a
fixed, quarterly repayment amount of $0.6 million per vessel plus a
variable component calculated at LIBOR plus 3.75%. The
Company has purchase options to re-acquire each of the subject
vessels during the bareboat charter period, with the first of such
options exercisable on the third anniversary from the delivery date
of the respective vessel. There is also purchase obligation for
each vessel upon the expiration of the agreement for $40.2 million
in aggregate. These arrangements are being accounted for as
financing transactions. The Company is subject to certain
terms and conditions, including financial covenants, under this
arrangement which have been amended to be similar to those in the
Company's existing credit facilities.
(8) The Company assumed the obligations under NPTI’s finance
lease arrangement with Bank of Communications Finance Leasing Co
Ltd., ("BCFL") for three LR2 tankers (STI Solace, STI Solidarity,
and STI Stability) upon the closing of the merger with NPTI in
September 2017. Under the arrangement, each vessel is subject
to a 10-year bareboat charter, which expires in July 2026.
Charterhire under the arrangement is determined in advance, on a
quarterly basis and is calculated by determining the payment based
off of the then outstanding balance, the time to expiration and an
interest rate of LIBOR plus 3.50%. At current, prevailing
interest rates, future principal payments are estimated to be $0.2
million gradually increasing to $0.3 million per vessel per month
until the expiration of the agreement. The Company has
purchase options to re-acquire each of the subject vessels during
the bareboat charter period, with the first of such options
exercisable at the end of the fourth year from the delivery date of
the respective vessel. There is also purchase obligation for each
vessel upon the expiration of the agreement for $29.7 million in
aggregate. These arrangements are being accounted for as
financing transactions.
(9) The Company assumed the obligations under NPTI’s finance
lease arrangement with CSSC (Hong Kong) Shipping Company Limited
("CSSC") for eight LR2 tankers (STI Gallantry, STI Nautilus, STI
Guard, STI Guide, STI Goal, STI Gauntlet, STI Gladiator and STI
Gratitude) upon the closing of the merger with NPTI in September
2017. Under the arrangement, each vessel is subject to a
10-year bareboat charter which expires throughout 2026 and 2027
(depending on the vessel). Charterhire under the arrangement
is comprised of a fixed repayment amount of $0.2 million per month
per vessel plus a variable component calculated at LIBOR plus
4.60%. The Company has purchase options to re-acquire each of
the subject vessels during the bareboat charter period, with the
first of such options exercisable at the end of the fourth year
from the delivery date of the respective vessel. There is also a
purchase obligation for each vessel upon the expiration of the
agreement for $111.4 million in aggregate. These arrangements
are being accounted for as financing transactions.
(10) In September 2017, the Company entered into finance lease
agreements with BCFL for five 2012 built MR product tankers (STI
Amber, STI Topaz, STI Ruby, STI Garnet and STI Onyx) for a sales
price of $27.5 million per vessel. The financing for three of the
vessels closed in September 2017 and the financing for one of the
vessels closed in October 2017 resulting in an increase to the
Company's liquidity of $29.4 million in aggregate, after the
repayment of outstanding debt. The financing for the remaining
vessel is expected to close before the end of the year and is
expected to result in an additional increase to the Company's
liquidity of $7.1 million, after the repayment of outstanding
debt. Each agreement is for a fixed term of seven years at a
bareboat rate of $9,025 per vessel per day and the Company has
three consecutive one year options to extend each charter beyond
the initial term. The Company also has the option to purchase these
vessels beginning at the end of the fifth year of the agreements
through the end of the tenth year of the agreements. A
deposit of $5.1 million per vessel was retained by the buyer and
will either be applied to the purchase price of the vessel if a
purchase option is exercised, or refunded to the Company at the
expiration of the agreement (as applicable). These agreements
are being accounted for as financing transactions.
(11) In October 2017, the Company's 7.50% Senior Notes matured
and were repaid in full.
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 |
| Q4 2017 - principal
payments made to date |
$ |
66.9 |
|
| Q4 2017 - remaining
principal payments |
40.1 |
|
| Q1 2018 |
46.2 |
|
| Q2 2018 |
31.7 |
|
| Q3 2018 |
62.5 |
|
| Q4 2018 |
37.4 |
|
| Q1 2019 |
62.6 |
|
| Q2 2019 |
470.1 |
|
| Q3 2019 |
62.3 |
|
| Q4 2019 |
37.1 |
|
| 2020 and
thereafter |
2,013.2 |
|
| |
|
| |
$ |
2,930.1 |
|
Newbuilding Program
As of September 30, 2017, the Company had
three MR product tankers under construction with HMD. In October
2017, one of these three vessels, STI Donald C Trauscht was
delivered from HMD. The Company refers to these vessels under
construction as its Newbuilding Program.
During the third quarter of 2017, the Company
made installment payments of $48.7 million relating to vessels
under its Newbuilding Program, which included the deliveries of STI
La Boca and STI San Telmo.
Set forth below are the expected installment
payments and estimated debt drawdowns to partially finance the
purchase vessels under construction as of September 30, 2017
(1):
| |
In millions of U.S. dollars |
| Q4 2017 - installment
payments made to date |
$ |
27.0 |
|
| Q4 2017 - remaining
installment payment |
25.2 |
|
| Q1 2018 |
21.6 |
|
| |
|
| |
$ |
73.8 |
|
| Expected debt drawdowns
(1) |
In millions of U.S. dollars |
|
| Q4 2017 - drawdown made
to date |
$ |
20.7 |
|
(2 |
) |
| Q4 2017 - drawdown to
be made |
21.6 |
|
|
| Q1 2018 |
21.6 |
|
|
| |
|
|
| Total expected debt
drawdowns |
$ |
63.9 |
|
|
(1) The installment payments and debt drawdowns are
estimates only and are subject to change as construction
progresses.
(2) As of September 30, 2017, the Company
had $63.9 million available under its 2017 Credit Facility to
partially finance the purchase of three MR product tankers that
were under construction at HMD. In October 2017, the Company
drew down $20.7 million to partially finance the purchase of STI
Donald C Trauscht, which was delivered in October 2017.
Explanation of Variances on the Third
Quarter of 2017 Financial Results Compared to the Third Quarter of
2016
For the three months ended September 30, 2017,
the Company recorded a net loss of $36.9 million compared to a net
loss of $27.1 million for the three months ended September 30,
2016. The following were the significant changes between the two
periods:
- Time charter equivalent, or 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 September 30, 2017
and 2016:
| |
|
|
|
| |
|
|
For the three months ended September
30, |
| In
thousands of U.S. dollars |
|
2017 |
|
2016 |
| |
Vessel revenue |
|
$ |
123,119 |
|
|
$ |
114,336 |
|
| |
Voyage expenses |
|
(1,276 |
) |
|
(330 |
) |
| |
TCE
revenue |
|
$ |
121,843 |
|
|
$ |
114,006 |
|
| |
|
- TCE revenue increased $7.8 million to $121.8 million from
$114.0 million for the three months ended September 30, 2017 and
2016, respectively. This increase was driven by the growth of the
Company's fleet to an average of 108.9 operating vessels during the
three months ended September 30, 2017 from an average of 90.3
operating vessels during the three months ended September 30,
2016. This increase was partially offset by a decrease in
overall time charter equivalent revenue per day to $12,395 per day
from $13,737 per day for the three months ended September 30, 2017
and 2016, respectively (see the breakdown of daily TCE below). TCE
revenue per day reflects unfavorable market conditions, which have
been driven by an unfavorable supply and demand imbalance
throughout 2017.
- Vessel operating costs increased $12.5 million to $58.4 million
from $45.9 million for the three months ended September 30, 2017
and 2016, respectively. This increase was the result of an
increase in the average number of owned and bareboat chartered-in
vessels to 99.3 vessels from 77.0 vessels for the three months
ended September 30, 2017 and 2016, respectively. This
increase was partially offset by an overall decrease in vessel
operating costs per day to $6,393 per day from $6,482 per day for
the three months ended September 30, 2017 and 2016, respectively
which was driven by improvements in our LR2 and MR operating
segments (see the breakdown of daily vessel operating costs
below).
- Charterhire expense decreased $2.1 million to $18.9 million
from $21.0 million for the three months ended September 30, 2017
and 2016, respectively. This decrease was driven by lower
average daily base rates on the Company's time chartered-in fleet
to an average of $13,658 per vessel per day from an average of
$16,918 per vessel per day for the three months ended September 30,
2017 and 2016, respectively. The Company's time and bareboat
chartered-in fleet increased to an average of 19.6 vessels, (9.6
time chartered-in vessels and 10.0 bareboat chartered-in vessels)
from an average of 13.3 time chartered-in vessels for the three
months ended September 30, 2017 and 2016, respectively. There
were no bareboat chartered-in vessels during the three months ended
September 30, 2016. The average daily base rate for the
Company's bareboat chartered-in fleet was $7,309 per vessel per day
for the three months ended September 30, 2017.
- Depreciation expense increased $5.7 million to $36.3 million
from $30.7 million for the three months ended September 30, 2017
and 2016, respectively. This increase was primarily driven by the
delivery of two LR2 and five MR tankers under our Newbuilding
Program during the nine months ended September 30, 2017, the
delivery of the four LR1 vessels acquired from NPTI in June 2017
and the delivery of eight LR1 and 15 LR2 vessels acquired from NPTI
in September 2017. These deliveries were offset by the sales
of five MR vessels during 2017.
- Merger transaction related costs of $2.3 million during the
three months ended September 30, 2017 represent legal and advisory
costs incurred as part of the merger with NPTI.
- Financial expenses decreased $0.2 million to $30.9 million from
$31.2 million for the three months ended September 30, 2017 and
2016, respectively. Financial expenses during the three months
ended September 30, 2016 reflect a $9.0 million write-off of
deferred financing fees as compared to a $0.6 million write-off of
deferred financing fees that was recorded during the three months
ended September 30, 2017. The increase in financial expenses, after
removing the effect of deferred financing fee write-offs, was a
result of (i) increased interest expense incurred as a result of
the assumption of $806.4 million of indebtedness upon the closing
of the merger with NPTI, (ii) increases in LIBOR rates when
compared to the third quarter of 2016, (iii) interest incurred on
the Company's newly issued Senior Notes due 2019, and (iv) a
decrease in capitalized interest as a result of the decrease in the
number of vessels under construction.
| |
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Income or Loss(unaudited) |
| |
|
|
|
|
| |
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
| In
thousands of U.S. dollars except per share and share data |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenue |
|
|
|
|
|
|
|
| |
Vessel revenue |
$ |
123,119 |
|
|
$ |
114,336 |
|
|
$ |
364,338 |
|
|
$ |
416,678 |
|
| |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
| |
Vessel operating
costs |
(58,418 |
) |
|
(45,915 |
) |
|
(156,403 |
) |
|
(140,187 |
) |
| |
Voyage expenses |
(1,276 |
) |
|
(330 |
) |
|
(4,720 |
) |
|
(1,158 |
) |
| |
Charterhire |
(18,886 |
) |
|
(21,011 |
) |
|
(57,790 |
) |
|
(55,341 |
) |
| |
Depreciation |
(36,341 |
) |
|
(30,686 |
) |
|
(97,883 |
) |
|
(90,775 |
) |
| |
General and
administrative expenses |
(12,539 |
) |
|
(12,491 |
) |
|
(36,141 |
) |
|
(42,593 |
) |
| |
Gain / (loss) on sales
of vessels |
7 |
|
|
— |
|
|
(23,345 |
) |
|
(2,078 |
) |
| |
Merger transaction
related costs |
(2,285 |
) |
|
— |
|
|
(34,815 |
) |
|
— |
|
| |
Bargain purchase
gain |
— |
|
|
— |
|
|
5,417 |
|
|
— |
|
| |
Total operating
expenses |
(129,738 |
) |
|
(110,433 |
) |
|
(405,680 |
) |
|
(332,132 |
) |
|
Operating (loss) / income |
(6,619 |
) |
|
3,903 |
|
|
(41,342 |
) |
|
84,546 |
|
|
Other (expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(30,927 |
) |
|
(31,150 |
) |
|
(77,621 |
) |
|
(82,381 |
) |
| |
Realized loss on
derivative financial instruments |
— |
|
|
— |
|
|
(116 |
) |
|
— |
|
| |
Unrealized gain on
derivative financial instruments |
— |
|
|
169 |
|
|
— |
|
|
1,600 |
|
| |
Financial income |
665 |
|
|
59 |
|
|
1,154 |
|
|
1,163 |
|
| |
Other expenses,
net |
(67 |
) |
|
(96 |
) |
|
1,195 |
|
|
(166 |
) |
| |
Total other expense,
net |
(30,329 |
) |
|
(31,018 |
) |
|
(75,388 |
) |
|
(79,784 |
) |
| Net
(loss) / income |
$ |
(36,948 |
) |
|
$ |
(27,115 |
) |
|
$ |
(116,730 |
) |
|
$ |
4,762 |
|
| |
|
|
|
|
|
|
|
|
|
(Loss) / earnings per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.16 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.61 |
) |
|
$ |
0.03 |
|
| |
Diluted |
$ |
(0.16 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.61 |
) |
|
$ |
0.03 |
|
| |
Basic weighted average
shares outstanding |
232,062,058 |
|
|
160,844,168 |
|
|
192,304,650 |
|
|
160,902,344 |
|
| |
Diluted weighted
average shares outstanding (1) |
232,062,058 |
|
|
160,844,168 |
|
|
192,304,650 |
|
|
166,839,648 |
|
(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 nine
months ended September 30, 2017 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 our Convertible Notes) were
270,697,114 and 231,888,265 for the three and nine months ended
September 30, 2017, respectively.
| Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited) |
| |
|
| |
As of |
| In thousands of U.S.
dollars |
September 30, 2017 |
|
December 31, 2016 |
|
Assets |
|
|
|
| Current
assets |
|
|
|
| Cash and cash
equivalents |
$ |
197,368 |
|
|
$ |
99,887 |
|
| Accounts
receivable |
59,423 |
|
|
42,329 |
|
| Prepaid expenses and
other current assets |
19,097 |
|
|
9,067 |
|
| Derivative financial
instruments |
— |
|
|
116 |
|
| Inventories |
10,026 |
|
|
6,122 |
|
| Total current
assets |
285,914 |
|
|
157,521 |
|
| Non-current
assets |
|
|
|
| Vessels and
drydock |
4,091,593 |
|
|
2,913,254 |
|
| Vessels under
construction |
39,380 |
|
|
137,917 |
|
| Other assets |
47,675 |
|
|
21,495 |
|
| Goodwill |
11,810 |
|
|
— |
|
| Restricted cash |
9,259 |
|
|
— |
|
| Total
non-current assets |
4,199,717 |
|
|
3,072,666 |
|
| Total
assets |
$ |
4,485,631 |
|
|
$ |
3,230,187 |
|
| Current
liabilities |
|
|
|
| Current portion of
long-term debt |
$ |
179,226 |
|
|
$ |
353,012 |
|
| Finance lease
liability |
45,845 |
|
|
— |
|
| Accounts payable |
25,124 |
|
|
9,282 |
|
| Accrued expenses |
28,092 |
|
|
23,024 |
|
| Total current
liabilities |
278,287 |
|
|
385,318 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
1,943,921 |
|
|
1,529,669 |
|
| Finance lease
liability |
639,775 |
|
|
— |
|
| Total
non-current liabilities |
2,583,696 |
|
|
|
1,529,669 |
|
| Total
liabilities |
2,861,983 |
|
|
1,914,987 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and
fully paid-in share capital: |
|
|
|
| Share capital |
3,308 |
|
|
2,247 |
|
| Additional paid-in
capital |
2,180,886 |
|
|
1,756,769 |
|
| Treasury shares |
(443,816 |
) |
|
(443,816 |
) |
| Accumulated
deficit |
(116,730 |
) |
|
— |
|
| Total
shareholders' equity |
1,623,648 |
|
|
1,315,200 |
|
| Total
liabilities and shareholders' equity |
$ |
4,485,631 |
|
|
$ |
3,230,187 |
|
| Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statement of
Cash Flows(unaudited) |
| |
|
| |
For the nine months ended September
30, |
| In thousands of U.S.
dollars |
2017 |
|
2016 |
| Operating
activities |
|
|
|
| Net (loss) /
income |
$ |
(116,730 |
) |
|
$ |
4,762 |
|
| Loss on sales of
vessels |
23,345 |
|
|
2,078 |
|
| Depreciation |
97,883 |
|
|
90,775 |
|
| Amortization of
restricted stock |
17,480 |
|
|
23,076 |
|
| Amortization of
deferred financing fees |
10,369 |
|
|
10,973 |
|
| Write-off of deferred
financing fees |
1,497 |
|
|
14,425 |
|
| Bargain purchase
gain |
(5,417 |
) |
|
— |
|
| Share-based transaction
costs |
5,973 |
|
|
— |
|
| Unrealized gain on
derivative financial instruments |
— |
|
|
(1,600 |
) |
| Amortization of
acquired time charter contracts |
— |
|
|
65 |
|
| Accretion of
Convertible Notes |
9,109 |
|
|
8,650 |
|
| Accretion of fair value
measurement on debt assumed from merger with NPTI |
510 |
|
|
— |
|
| Gain on repurchase of
Convertible Notes |
— |
|
|
(994 |
) |
| |
44,019 |
|
|
152,210 |
|
| Changes in assets and
liabilities: |
|
|
|
| Drydock payments |
(2,803 |
) |
|
— |
|
| (Increase) / decrease
in inventories |
(1,761 |
) |
|
781 |
|
| Decrease in accounts
receivable |
4,230 |
|
|
20,519 |
|
| Decrease / (increase)
in prepaid expenses and other current assets |
10,842 |
|
|
(7,500 |
) |
| (Increase) / decrease
in other assets |
(18,590 |
) |
|
2,078 |
|
| Increase in accounts
payable |
15,222 |
|
|
119 |
|
| Decrease in accrued
expenses |
(14,983 |
) |
|
(12,868 |
) |
| |
(7,843 |
) |
|
3,129 |
|
| Net cash inflow
from operating activities |
36,176 |
|
|
155,339 |
|
| Investing
activities |
|
|
|
| Acquisition of vessels
and payments for vessels under construction |
(200,735 |
) |
|
(111,785 |
) |
| Proceeds from disposal
of vessels |
127,372 |
|
|
158,175 |
|
| Net cash paid for the
merger with Navig8 Product Tankers Inc |
(23,062 |
) |
|
— |
|
| Net cash
(outflow) / inflow from investing activities |
(96,425 |
) |
|
46,390 |
|
| Financing
activities |
|
|
|
| Debt repayments |
(409,452 |
) |
|
(728,922 |
) |
| Issuance of debt |
425,890 |
|
|
565,028 |
|
| Debt issuance
costs |
(12,386 |
) |
|
(9,797 |
) |
| Decrease in restricted
cash |
10,762 |
|
|
— |
|
| Repayment of
Convertible Notes |
— |
|
|
(8,393 |
) |
| Gross proceeds from
issuance of common stock |
200,000 |
|
|
— |
|
| Equity issuance
costs |
(11,291 |
) |
|
(24 |
) |
| Dividends paid |
(6,298 |
) |
|
(65,094 |
) |
| Redemption of Navig8
Product Tankers Redeemable Preferred Shares |
(39,495 |
) |
|
— |
|
| Repurchase of common
stock |
— |
|
|
(16,505 |
) |
| Net cash inflow
/ (outflow) from financing activities |
157,730 |
|
|
(263,707 |
) |
| Increase /
(decrease) in cash and cash equivalents |
97,481 |
|
|
(61,978 |
) |
| Cash and cash
equivalents at January 1, |
99,887 |
|
|
200,970 |
|
| Cash and cash
equivalents at September 30, |
$ |
197,368 |
|
|
$ |
138,992 |
|
| Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three and
nine months ended September 30,
2017(unaudited) |
| |
|
|
|
|
| |
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
| |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Adjusted
EBITDA(1) (in thousands of U.S. dollars) |
|
$ |
37,808 |
|
|
$ |
42,081 |
|
|
$ |
127,844 |
|
|
$ |
200,309 |
|
| |
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
| Time charter equivalent
per day(2) |
|
$ |
12,395 |
|
|
$ |
13,737 |
|
|
$ |
13,289 |
|
|
$ |
16,932 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,393 |
|
|
$ |
6,482 |
|
|
$ |
6,379 |
|
|
$ |
6,560 |
|
| |
|
|
|
|
|
|
|
|
| Aframax/LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
13,234 |
|
|
$ |
19,142 |
|
|
$ |
14,768 |
|
|
$ |
22,274 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,469 |
|
|
$ |
6,652 |
|
|
$ |
6,448 |
|
|
$ |
6,671 |
|
| Average number of owned
or finance leased vessels |
|
27.9 |
|
|
21.0 |
|
|
23.9 |
|
|
20.1 |
|
| Average number of time
chartered-in vessels |
|
1.6 |
|
|
2.0 |
|
|
1.3 |
|
|
2.0 |
|
| |
|
|
|
|
|
|
|
|
| Panamax/LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
11,787 |
|
|
$ |
10,547 |
|
|
$ |
11,588 |
|
|
$ |
18,177 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,525 |
|
|
$ |
— |
|
|
$ |
6,399 |
|
|
$ |
— |
|
| Average number of owned
or finance leased vessels |
|
6.6 |
|
|
— |
|
|
2.5 |
|
|
— |
|
| Average number of time
chartered-in vessels |
|
— |
|
|
1.0 |
|
|
0.5 |
|
|
0.9 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
13,041 |
|
|
$ |
12,539 |
|
|
$ |
13,183 |
|
|
$ |
15,907 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,208 |
|
|
$ |
6,420 |
|
|
$ |
6,220 |
|
|
$ |
6,569 |
|
| Average number of owned
or finance leased vessels |
|
40.8 |
|
|
42.0 |
|
|
41.4 |
|
|
43.9 |
|
| Average number of time
chartered-in vessels |
|
6.0 |
|
|
5.3 |
|
|
6.9 |
|
|
4.4 |
|
| Average number of
bareboat chartered-in vessels |
|
3.0 |
|
|
— |
|
|
1.8 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
10,062 |
|
|
$ |
10,274 |
|
|
$ |
12,036 |
|
|
$ |
13,130 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,635 |
|
|
$ |
6,424 |
|
|
$ |
6,631 |
|
|
$ |
6,365 |
|
| Average number of owned
or finance leased vessels |
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
| Average number of time
chartered-in vessels |
|
2.0 |
|
|
5.0 |
|
|
2.1 |
|
|
4.4 |
|
| Average number of
bareboat chartered-in vessels |
|
7.0 |
|
|
— |
|
|
5.8 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of owned
or finance leased vessels |
|
89.3 |
|
|
77.0 |
|
|
81.8 |
|
|
78.0 |
|
| Average number of time
chartered-in vessels |
|
9.6 |
|
|
13.3 |
|
|
10.8 |
|
|
11.8 |
|
| Average number of
bareboat chartered-in vessels |
|
10.0 |
|
|
— |
|
|
7.5 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
Drydock |
|
|
|
|
|
|
|
|
| Expenditures for
drydock (in thousands of U.S. dollars) |
|
$ |
4,799 |
|
|
$ |
— |
|
|
$ |
5,156 |
|
|
$ |
— |
|
|
(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 November 14,
2017 |
| |
|
| |
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 (6) |
|
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 (6) |
|
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 |
|
49,995 |
|
|
— |
|
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 (7) |
|
MR |
| 48 |
|
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
| 49 |
|
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
Time
Charter (7) |
|
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 |
|
Spot
(8) |
|
MR |
| 57 |
|
STI Donald C
Trauscht |
|
2017 |
|
49,990 |
|
|
1B |
|
Spot
(8) |
|
MR |
| 58 |
|
STI Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 59 |
|
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 60 |
|
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 61 |
|
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 62 |
|
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 63 |
|
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 64 |
|
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 65 |
|
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 66 |
|
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 67 |
|
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 68 |
|
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 69 |
|
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(3) |
|
LR1 |
| 70 |
|
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 71 |
|
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 72 |
|
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 73 |
|
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 74 |
|
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 75 |
|
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 76 |
|
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 77 |
|
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
Time
Charter (9) |
|
LR2 |
| 78 |
|
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 79 |
|
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 80 |
|
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 81 |
|
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 82 |
|
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 83 |
|
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 84 |
|
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 85 |
|
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 86 |
|
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 87 |
|
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 88 |
|
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 89 |
|
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 90 |
|
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 91 |
|
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 92 |
|
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 93 |
|
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 94 |
|
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 95 |
|
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 96 |
|
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SAPC
(5) |
|
LR2 |
| 97 |
|
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SAPC
(5) |
|
LR2 |
| 98 |
|
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 99 |
|
STI Rambla |
|
2017 |
|
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 Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 106 |
|
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| 107 |
|
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(4) |
|
LR2 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned DWT |
|
|
|
7,783,215 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Charter type |
|
Daily Base Rate |
|
Expiry (10) |
|
| |
Time or bareboat
chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 108 |
|
Kraslava |
|
2007 |
|
37,258 |
|
|
1B |
|
SHTP (1) |
|
Handymax |
|
Time
charter |
|
$ |
11,250 |
|
|
13-May-18 |
(11 |
) |
| 109 |
|
Krisjanis
Valdemars |
|
2007 |
|
37,266 |
|
|
1B |
|
SHTP (1) |
|
Handymax |
|
Time
charter |
|
$ |
11,250 |
|
|
13-Mar-18 |
(11 |
) |
| 110 |
|
Silent |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(12 |
) |
| 111 |
|
Single |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(12 |
) |
| 112 |
|
Star I |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(12 |
) |
| 113 |
|
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(12 |
) |
| 114 |
|
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(12 |
) |
| 115 |
|
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(12 |
) |
| 116 |
|
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(12 |
) |
| 117 |
|
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
18-Apr-25 |
(13 |
) |
| 118 |
|
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
21-Apr-25 |
(13 |
) |
| 119 |
|
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
28-Apr-25 |
(13 |
) |
| 120 |
|
Vukovar |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
17,034 |
|
|
01-May-18 |
|
| 121 |
|
Zefyros |
|
2013 |
|
49,999 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,000 |
|
|
08-June-18 |
(14 |
) |
| 122 |
|
Gan-Trust |
|
2013 |
|
51,561 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,050 |
|
|
06-Jan-18 |
(15 |
) |
| 123 |
|
CPO New Zealand |
|
2011 |
|
51,717 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
15,250 |
|
|
12-Sep-18 |
(16 |
) |
| 124 |
|
CPO Australia |
|
2011 |
|
51,763 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
15,250 |
|
|
01-Sep-18 |
(16 |
) |
| 125 |
|
Ance |
|
2006 |
|
52,622 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,500 |
|
|
12-Oct-18 |
(17 |
) |
| 126 |
|
Densa Crocodile |
|
2015 |
|
105,408 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
Time
charter |
|
$ |
14,750 |
|
|
06-Jan-18 |
(18 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total time or bareboat
chartered-in DWT |
|
|
|
902,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Newbuildings currently
under construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Yard |
|
DWT |
|
Vessel type |
|
|
|
|
|
|
|
|
|
|
|
| 127 |
|
Hull 2607 - TBN STI
Esles II |
|
HMD |
(19 |
) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
| 128 |
|
Hull 2608 - TBN STI
Jardins |
|
HMD |
(19 |
) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total newbuilding
product tankers DWT |
|
|
|
104,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
8,789,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1 |
) |
This vessel operates in
or is expected to operate in the Scorpio Handymax Tanker Pool, or
SHTP. SHTP is operated by Scorpio Commercial Management, or SCM.
SHTP and SCM are related parties to the Company. |
| (2 |
) |
This vessel operates in
the Scorpio MR Pool, or SMRP. SMRP 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 operated by SCM. SLR1P is
a related party to the Company. |
| (4 |
) |
This vessel operates in
or is expected to operate in the Scorpio LR2 Pool, or SLR2P. SLR2P
is operated by SCM. SLR2P is a related party to the Company. |
| (5 |
) |
This vessel operates in
the Scorpio Aframax Pool, or SAPC. SAPC is operated by SCM. SAPC is
a related party to the Company. |
| (6 |
) |
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. |
| (7 |
) |
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. |
| (8 |
) |
This vessel is
currently employed under a short-term time charter-out agreement
with an unrelated third party, following which this vessel is
expected enter the SMRP. We consider short-term time charters
(less than one year) as spot market voyages. |
| (9 |
) |
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. |
| (10 |
) |
Redelivery from the
charterer is plus or minus 30 days from the expiry date. |
| (11 |
) |
We have an option to
extend the charter for an additional year at $13,250 per day. |
| (12 |
) |
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. |
| (13 |
) |
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. |
| (14 |
) |
In November 2017, we
declared the option to extend this charter for an additional six
months at $13,250 per day effective December 2017. We have an
option to extend the charter for an additional year at $14,500 per
day. |
| (15 |
) |
We have an option to
extend the charter for an additional year at $15,000 per day. |
| (16 |
) |
We have an option to
extend the charter for an additional year at $16,000 per day. |
| (17 |
) |
In August 2017, we
entered into a new time charter-in agreement for one year at
$13,500 per day. We have an option to extend the charter for
an additional year at $15,000 per day. |
| (18 |
) |
We have an option to
extend this charter for an additional six months at $15,750 per
day. |
| (19 |
) |
These newbuilding
vessels are being constructed at HMD (Hyundai Mipo Dockyard Co.
Ltd. of South Korea). One vessel is expected to be delivered
before the end of 2017 and one vessel is expected to be delivered
in the first quarter of 2018. |
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 2016 and 2017 were as
follows:
| |
Date paid |
Dividends
pershare |
| |
March
2016 |
$0.125 |
| |
June
2016 |
$0.125 |
| |
September 2016 |
$0.125 |
| |
December 2016 |
$0.125 |
| |
March
2017 |
$0.010 |
| |
June
2017 |
$0.010 |
| |
September 2017 |
$0.010 |
On November 14, 2017, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about December 28, 2017 to all shareholders as of
December 13, 2017 (the record date). As of November 14, 2017,
there were 281,095,755 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, which were issued in June 2014, (ii) Unsecured
Senior Notes Due 2020 (NYSE:SBNA), which were issued in May 2014,
and (iii) Unsecured Senior Notes Due 2019 (NYSE:SBBC), which were
issued in March 2017.
In April 2017, we acquired an aggregate of
250,419 of our Unsecured Senior Notes due 2017 for aggregate
consideration of $6.3 million, which was the result of the cash
tender offer of such notes. These notes matured and were
repaid in full in October 2017.
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 107 product tankers (38 LR2
tankers, 12 LR1 tankers, 43 MR tankers, 14 Handymax tankers) with
an average age of 2.3 years and time or bareboat charters-in 19
product tankers (one LR2 tanker, nine MR tankers and nine Handymax
tankers). The Company has contracted for two newbuilding MR product
tankers, one of which is expected to be delivered before the end of
2017 and the other in the first quarter of 2018. 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 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
adjusted net income or loss with adjusted earnings or loss per
share, basic and diluted, and adjusted EBITDA are useful to
investors 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 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 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.
Reconciliation of Net (Loss) / Income to Adjusted Net
(Loss) / Income
| |
|
|
For the three months ended September 30,
2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(36,948 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.16 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
630 |
|
|
|
|
|
0.00 |
|
|
|
|
|
0.00 |
|
|
| |
Merger
transaction related costs |
|
2,285 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Gain on sale of
vessel |
|
(7 |
) |
|
|
|
|
0.00 |
|
|
|
|
|
0.00 |
|
|
| |
Adjusted net loss |
|
$ |
(34,040 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.15 |
) |
|
|
|
| |
|
|
|
For the three months ended September 30,
2016 |
| |
|
|
|
|
|
Per share |
|
Per share |
| |
In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
| |
|
Net loss |
|
$ |
(27,115 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.17 |
) |
| |
|
Adjustments: |
|
|
|
|
|
|
| |
|
Deferred
financing fees write-off |
|
8,978 |
|
|
0.06 |
|
|
0.06 |
|
| |
|
Unrealized gain
on derivative financial instruments |
|
(169 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
| |
|
Adjusted net loss |
|
$ |
(18,306 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
|
| |
|
|
For the nine months ended September 30,
2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(116,730 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.61 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
1,497 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Merger
transaction related costs |
|
34,815 |
|
|
0.18 |
|
|
0.18 |
|
|
| |
Bargain purchase
gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
| |
Loss / (gain) on
sales of vessels |
|
23,345 |
|
|
0.12 |
|
|
0.12 |
|
|
| |
Adjusted net loss |
|
$ |
(62,490 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.33 |
) |
|
| |
|
|
For the nine months ended September 30,
2016 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net income |
|
$ |
4,762 |
|
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
14,479 |
|
|
0.09 |
|
|
0.09 |
|
|
| |
Unrealized gain
on derivative financial instruments |
|
(1,600 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
| |
Gain on
repurchase of Convertible Notes |
|
(994 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
| |
Loss on sales of
vessels |
|
2,078 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Adjusted net
income |
|
$ |
18,725 |
|
|
$ |
0.12 |
|
(1 |
) |
$ |
0.11 |
|
|
(1) Summation differences due to rounding
Reconciliation of Net (Loss) / Income to Adjusted
EBITDA
|
|
| |
|
|
For the three months ended September
30, |
|
For the nine months ended September
30, |
| In
thousands of U.S. dollars |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
Net (loss) /
income |
|
$ |
(36,948 |
) |
|
$ |
(27,115 |
) |
|
$ |
(116,730 |
) |
|
$ |
4,762 |
|
| |
Financial
expenses |
|
30,927 |
|
|
31,150 |
|
|
77,621 |
|
|
82,381 |
|
| |
Unrealized gain
on derivative financial instruments |
|
— |
|
|
(169 |
) |
|
— |
|
|
(1,600 |
) |
| |
Financial
income |
|
(665 |
) |
|
(59 |
) |
|
(1,154 |
) |
|
(169 |
) |
| |
Depreciation |
|
36,341 |
|
|
30,686 |
|
|
97,883 |
|
|
90,775 |
|
| |
Merger
transaction related costs |
|
2,285 |
|
|
— |
|
|
34,815 |
|
|
— |
|
| |
Bargain
purchase gain |
|
— |
|
|
— |
|
|
(5,417 |
) |
|
— |
|
| |
Amortization of
restricted stock |
|
5,875 |
|
|
7,588 |
|
|
17,481 |
|
|
23,076 |
|
| |
(Gain) / loss on
sale of vessels |
|
(7 |
) |
|
— |
|
|
23,345 |
|
|
2,078 |
|
| |
Gain on
repurchase of Convertible Notes (recorded within Financial
income) |
|
— |
|
|
— |
|
|
— |
|
|
(994 |
) |
| |
Adjusted EBITDA |
|
$ |
37,808 |
|
|
$ |
42,081 |
|
|
$ |
127,844 |
|
|
$ |
200,309 |
|
|
|
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 Inc. 8.25% Senior Notes Due 2019 (NYSE:SBBC)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Scorpio Tankers Inc. 8.25% Senior Notes Due 2019 (NYSE:SBBC)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
