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Scorpio Tankers Inc.$34.87($.67)(1.89%)

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 Scorpio Tankers Inc. Announces Financial Results for the Second Quarter of 2019 and Declaration of a Quarterly Dividend
   Wednesday, July 31, 2019 6:44:00 AM ET

MONACO, July 31, 2019 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers", or the "Company") today reported its results for the three and six months ended June 30, 2019.  The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share on the Company’s common stock.

Results for the three months ended June 30, 2019 and 2018

For the three months ended June 30, 2019, the Company's net loss was $29.7 million, or $0.62 basic and diluted loss per share. There were no Non-IFRS adjustments to the net loss for the three months ended June 30, 2019.

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 $1.45 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"), 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 $0.78 per basic and diluted share.  For the three months ended June 30, 2018, the Company had a net loss of $68.9 million, or $2.23 basic and diluted loss per share.

Results for the six months ended June 30, 2019 and 2018

For the six months ended June 30, 2019, the Company's adjusted net loss (see Non-IFRS Measures section below) was $15.0 million, or $0.31 basic and diluted loss per share, which excludes from the net loss a $0.3 million, or $0.01 per basic and diluted share, write-off of deferred financing fees. For the six months ended June 30, 2019, the Company had a net loss of $15.2 million, or $0.32 basic and diluted loss per share.

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 $2.47 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 Navig8 Product Tankers Inc.  The adjustments resulted in an aggregate reduction of the Company's net loss by $24.3 million or $0.79 per basic and diluted share. For the six months ended June 30, 2018, the Company had a net loss of $100.7 million, or $3.26 basic and diluted loss per share.

Declaration of Dividend

On July 30, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about September 27, 2019 to all shareholders of record as of September 10, 2019 (the record date).  As of July 30, 2019, there were 51,845,390 common shares of the Company 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 2019 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: an average of approximately $14,200 per day for 50% of the days.
  • For the LR1s in the pool: an average of approximately $15,000 per day for 40% of the days.
  • For the MRs in the pool: an average of approximately $14,300 per day for 40% of the days.
  • For the ice-class 1A Handymaxes in the pool: an average of approximately $10,200 per day for 35% of the days.

• Below is a summary of the average daily TCE revenue earned on the Company's vessels during the second quarter of 2019:

  • For the LR2s in the pool: an average of $16,974 per revenue day.
  • For the LR1s in the pool: an average of $14,527 per revenue day.
  • For the MRs in the pool: an average of $13,436 per revenue day.
  • For the ice-class 1A Handymaxes in the pool: an average of $11,802 per revenue day.

• The Company has received commitments for seven different facilities to partially finance the purchase and installation of exhaust gas cleaning systems, or "scrubbers" on certain of the Company's vessels.  These commitments are expected to increase the Company’s liquidity by approximately $87 million.  Additionally, the Company is in discussions with a different group of financial institutions to finance the purchase of scrubbers which, if consummated, expect to increase the Company’s liquidity by an additional $35 million.  All of these agreements are expected to be signed in the next few months and the drawdowns will occur as the scrubbers are installed throughout the remainder of 2019 and 2020. 

• In June 2019, the Company paid a quarterly cash dividend with respect to the first quarter of 2019 on the Company's common stock of $0.10 per common share.

• In July 2019, the Company’s Convertible Notes due 2019 matured and the outstanding balance of $142.7 million was fully repaid in cash upon maturity. 

$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 Unsecured Senior Notes due 2020 (NYSE: SBNA), which were issued in May 2014, and Convertible Notes due 2022, which were issued in May and July 2018.

As of the date hereof, the Company has the authority to purchase up to an additional $121.6 million of its securities under its Securities Repurchase Program. The Company may 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, which were issued in June 2014 (and matured in July 2019), and Convertible Notes due 2022, which were issued in May and July 2018, were converted into common shares at the beginning of each period and the interest and non-cash amortization expense associated with these notes of $6.1 million and $12.1 million during the three and six months ended June 30, 2019, 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, 2019, the Company's basic weighted average number of shares were 48,148,885 and 48,109,924, respectively.  For the three and six months ended June 30, 2019, the Company's diluted weighted average number of shares were 49,446,801 and 49,194,463 respectively, excluding the impact of the Convertible Notes due 2019 and Convertible Notes due 2022, and 56,104,777 and 55,822,804, respectively, under the if-converted method.

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, 2019 as the Company incurred net losses during those periods.

The Company’s Convertible Notes due 2019 matured in July 2019 and the outstanding balance of $142.7 million was fully repaid in cash upon maturity.  As of the date hereof, the Company's trading stock price is below the conversion price of the Convertible Notes due 2022.

Conference Call

The Company has scheduled a conference call on July 31, 2019 at 9:00 AM Eastern Daylight Time and 3:00 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: 7477236

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/mmc/p/mavm58wd

Current Liquidity

As of July 30, 2019, the Company had $307.3 million in unrestricted cash and cash equivalents.  The Company’s Convertible Notes due 2019 matured in July 2019 and the outstanding balance of $142.7 million was fully repaid in cash upon maturity.

Drydock, Scrubber and Ballast Water Treatment Update

The following drydock, scrubber and ballast water treatment activity occurred during the second quarter of 2019:

  • Three LR2 tankers completed their scrubber installations during the second quarter of 2019 for aggregate costs of $8.6 million (which includes the cost of the scrubber and related installation costs) and incurred an aggregate of 108 offhire days. 
  • Three MR tankers completed their class required special surveys and scrubber installations during the second quarter of 2019 for aggregate costs of $9.5 million (which includes the drydock along with the cost of the scrubber and related installation costs) and incurred an aggregate of 165 offhire days. 
  • One ice-class 1A Handymax tanker completed its class required special survey and ballast water treatment system installation during the second quarter of 2019 for aggregate costs of $2.7 million (which includes the drydock along with the cost of the ballast water treatment system and related installation costs) and incurred an aggregate of 27 offhire days. 
  • One LR2 tanker entered drydock for its scrubber installation during the second quarter of 2019, and the installation is expected to be completed during the third quarter of 2019.  The aggregate cost of the installation is expected to be $2.5 million (which includes the cost of the scrubber and related installation costs), and this vessel was offhire for 2 days during the second quarter of 2019. 
  • Three MR tankers entered drydock for their class required special surveys, ballast water treatment system installations, and scrubber installations during the second quarter of 2019, all of which are expected to be  completed during the third quarter of 2019.  The aggregate costs are expected to be approximately $13.0 million (which includes the drydock along with the cost of the scrubbers, ballast water treatment systems and all related installation costs), and these vessels were offhire for an aggregate of 37 days during the second quarter of 2019.
  • Two ice-class 1A Handymax tankers entered drydock for their class required special surveys and ballast water treatment system installations during the second quarter of 2019, which were completed during the third quarter of 2019.  The aggregate cost is expected to be $4.0 million (which includes the drydock along with the cost of the ballast water treatment system and related installation costs), and these vessels were offhire for an aggregate of 46 days during the second quarter of 2019.

Set forth below are the estimated expected payments for the Company's drydocks, ballast water treatment system installations, and scrubber installations through 2020 (which also include actual payments made during the third quarter of 2019 through the date of this press release):

In millions of U.S. dollarsAs of July 30, 2019 (1)
Q3 2019 - payments made through July 30, 2019$10.6 
Q3 2019 - remaining payments63.8 
Q4 201990.3 
Q1 202045.8 
Q2 202030.4 
Q3 202028.4 
Q4 202011.4 

(1) Includes estimated cash payments for drydocks, ballast water treatment system installations and scrubber installations.  These amounts include installment payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual installation.  In addition to these installment payments, these amounts also include estimates of the installation costs of such systems.  The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks and installations finalize.

Set forth below are the expected, estimated number of ships and estimated offhire days for the Company's drydocks, ballast water treatment installations, and scrubber installations (2):

 Q3 2019 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR25 4 13 371 
LR1  6 168 
MR9 8 9 280 
Handymax5 5  102 
     
Total Q3 201919 17 28 921 
     
 Q4 2019 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR210 8 13 357 
LR1  1 28 
MR9 7 9 245 
Handymax5 5  100 
     
Total Q4 201924 20 23 730 
     
 Q1 2020 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR21  2 55 
LR1    
MR4 4 10 278 
Handymax2 2  40 
     
Total Q1 20207 6 12 373 
     
 Q2 2020 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR24  4 108 
LR1    
MR3 3 6 167 
Handymax    
     
Total Q2 20207 3 10 275 
     
 Q3 2020 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR22  2 54 
LR15  5 135 
MR  6 168 
Handymax    
     
Total Q3 20207  13 357 
     
 Q4 2020 
 Ships Scheduled for:Offhire
 DrydockBallast Water Treatment SystemsScrubbersDays
LR2    
LR1    
MR  2 56 
Handymax    
     
Total Q4 2020  2 56 

(2) The number of vessels in these tables reflect a certain amount of overlap where certain vessels are expected to be drydocked and have ballast water treatment systems and/or scrubbers installed simultaneously.  Additionally, the timing set forth may vary as drydock, ballast water treatment system installation and scrubber installation times are finalized.

Debt

Set forth below is a summary of the Company’s outstanding indebtedness as of the dates presented:

 In thousands of U.S. dollars Outstanding Principal as of March 31, 2019Repayments
Outstanding Principal as of June 30, 2019RepaymentsOutstanding Principal as of July 30, 2019
1KEXIM Credit Facility $282,475 $ $282,475 $(4,300)$278,175 
2ABN AMRO Credit Facility 98,369 (2,139)96,230 (537)95,693 
3ING Credit Facility 140,992 (3,184)137,808 (1,071)136,737 
4$35.7 Million Term Loan Facility 34,042 (808)33,234 (808)32,426 
52017 Credit Facility 141,449 (3,316)138,133  138,133 
6Credit Agricole Credit Facility 97,153 (2,142)95,011  95,011 
7ABN AMRO/K-Sure Credit Facility 48,567 (963)47,604  47,604 
8Citi/K-Sure Credit Facility 101,546 (2,104)99,442  99,442 
9ABN AMRO/SEB Credit Facility 111,950 (2,875)109,075  109,075 
10Ocean Yield Lease Financing 157,664 (2,649)155,015 (917)154,098 
11CMBFL Lease Financing 60,744 (1,227)59,517  59,517 
12BCFL Lease Financing (LR2s) 98,933 (1,881)97,052 (636)96,416 
13CSSC Lease Financing 242,199 (4,327)237,872 (1,442)236,430 
14BCFL Lease Financing (MRs) 96,191 (2,768)93,423 (902)92,521 
152018 CMB Lease Financing 134,014 (2,529)131,485  131,485 
16$116.0 Million Lease Financing 111,103 (1,672)109,431 (539)108,892 
17AVIC International Lease Financing 136,155 (2,948)133,207  133,207 
18China Huarong Shipping Lease Financing 133,875 (3,375)130,500  130,500 
19$157.5 Million Lease Financing 148,550 (3,536)145,014  145,014 
20COSCO Lease Financing 82,225 (1,925)80,300  80,300 
21IFRS 16 - Leases - 3 MRs 49,374 (1,711)47,663 (558)47,105 
22IFRS 16 - Leases - 7 Handymax 24,102 (3,692)20,410 (1,272)19,138 
232020 Senior Unsecured Notes 53,750  53,750  53,750 
24Convertible Notes due 2019 142,708  142,708 (142,708) 
25Convertible Notes due 2022 203,500  203,500  203,500 
   $2,931,630 $(51,771)$2,879,859 $(155,690)$2,724,169 

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of June 30, 2019, which includes principal amounts due under lease financing arrangements and lease liabilities under IFRS 16 (which also include actual payments made during the third quarter of 2019 through the date of this press release):

   In millions of U.S. dollars
Q3 2019 - principal payments made through July 30, 2019 (1) $155.7 
Q3 2019 - remaining principal payments 55.9 
Q4 2019 52.2 
Q1 2020 69.1 
Q2 2020 (2) 104.6 
Q3 2020 (3) 153.1 
Q4 2020 48.6 
2021 and thereafter 2,240.7 
  $2,879.9 
  1. Repayments include $142.7 million that was repaid in July 2019 upon the maturity of the Company's Convertible Notes due 2019.
  2. Repayments include $53.8 million due upon the maturity of the Company's Senior Unsecured Notes due 2020.
  3. Repayments include $87.7 million due upon the maturity of the Company's ABN AMRO Credit Facility.

Explanation of Variances on the Second Quarter of 2019 Financial Results Compared to the Second Quarter of 2018

For the three months ended June 30, 2019, the Company recorded a net loss of $29.7 million compared to a net loss of $68.9 million for the three months ended June 30, 2018. 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 voyages, time charters, and pool charters), and it provides useful information to investors and management. The following table sets forth TCE revenue for the three months ended June 30, 2019 and 2018:
   For the three months ended June 30,
In thousands of U.S. dollars 2019 2018
 Vessel revenue $150,805  $141,795 
 Voyage expenses (1,328) (1,033)
 TCE revenue $149,477  $140,762 
  • TCE revenue for the three months ended June 30, 2019 increased by $8.7 million to $149.5 million, from $140.8 million for the three months ended June 30, 2018. This increase was the result of modest, quarter over quarter improvements in TCE revenue per day across all of the Company's operating segments.  Overall average TCE revenue per day increased to $14,348 per day during the three months ended June 30, 2019, from $12,301 per day during the three months ended June 30, 2018. The product tanker market experienced a period of prolonged weakness during the first nine months of 2018 culminating with a sharp recovery that began in the fourth quarter of 2018.  While the second quarter of 2019 reflected an improvement over the same period during 2018, this recovery abated during the second quarter of 2019 as the product tanker market experienced headwinds, primarily as a result of a longer than usual refinery maintenance season which negatively impacted demand, particularly in our MR and Handymax operating segments. This increase in TCE revenue per day was partially offset by a reduction of the Company's fleet to an average of 119.0 operating vessels during the three months ended June 30, 2019 from an average of 127.0 operating vessels during the three months ended June 30, 2018, which was the result of the redelivery of 11 time chartered-in vessels throughout 2018 and in the first quarter of 2019.

  • Vessel operating costs for the three months ended June 30, 2019 remained consistent, decreasing slightly by $0.7 million to $68.8 million, from $69.5 million for the three months ended June 30, 2018.  The Company’s average number of owned or bareboat chartered-in vessels remained consistent at 119.0 vessels for the three months ended June 30, 2019 and for the three months ended June 30, 2018.

  • Charterhire expense for the three months ended June 30, 2019 decreased by $17.2 million to $0.0 million, from $17.2 million for the three months ended June 30, 2018.  This decrease was the result of (i) a decrease in the number of time chartered-in vessels when comparing the three months ended June 30, 2019 to the three months ended June 30, 2018, and (ii) the implementation of IFRS 16 - Leases beginning on January, 1, 2019.  The Company's time and bareboat chartered-in fleet consisted of 10.0 bareboat chartered-in vessels for the three months ended June 30, 2019, and the Company's time and bareboat chartered-in fleet consisted of an average of 8.0 time chartered-in vessels and 10.0 bareboat chartered-in vessels for the three months ended June 30, 2018.  As of June 30, 2019, we had 10 bareboat chartered-in vessels, which are being accounted for under IFRS 16 as right of use assets and related lease liabilities.  Under IFRS 16, there is no charterhire expense for these vessels as the right of use assets are depreciated on a straight line basis (through depreciation expense) over the lease term and the lease liability is amortized over that same period (with a portion of each payment allocated to principal and a portion allocated to interest expense).

  • Depreciation expense - owned or finance leased vessels for the three months ended June 30, 2019 remained consistent, increasing slightly by $0.3 million to $44.4 million, from $44.1 million for the three months ended June 30, 2018.  Depreciation expense in future periods is expected to increase as the Company installs ballast water treatment systems and scrubbers on its vessels in 2019 and 2020.  The Company expects to depreciate the majority of the cost of this equipment over each vessels’ remaining useful life.

  • Depreciation expense - right of use assets for the three months ended June 30, 2019 was $5.9 million.  Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded during the three months ended June 30, 2019 as a result of the Company's transition to IFRS 16 - Leases on January 1, 2019.  Right of use asset depreciation is approximately $0.2 million per vessel per month for all 10 vessels that the Company currently bareboat charters-in.

  • General and administrative expenses for the three months ended June 30, 2019 increased by $2.2 million to $15.5 million, from $13.3 million for the three months ended June 30, 2018.  This increase was primarily driven by compensation expenses, including a slight increase in restricted stock amortization.  General and administrative expenses in future periods are expected to reflect a similar run-rate to that which was incurred in the second quarter of 2019.

  • Financial expenses for the three months ended June 30, 2019 decreased by $1.6 million to $47.3 million, from $48.9 million for the three months ended June 30, 2018.  The Company wrote off $7.0 million of deferred financing fees during the three months ended June 30, 2018 as a result of the various refinancing initiatives that the Company entered into during that period.  There were no write-offs of deferred financing fees during the three months ended June 30, 2019.  Excluding these write-offs, financial expenses increased during the second quarter of 2019 primarily a result of (i) increases in LIBOR rates as compared to the three months ended June 30, 2018, (ii) an increase in the Company's average debt to $2.9 billion during the three months ended June 30, 2019 from $2.8 billion during the three months ended June 30, 2018 as a result of the Company's refinancing initiatives that were executed in the second, third and fourth quarters of 2018 and (iii) increased borrowing costs associated with the Company's lease financing arrangements that were entered into during 2018.  If LIBOR rates remain consistent, financial expenses in future periods are expected to reflect a similar run-rate to that which was incurred in the second quarter of 2019 as increased finance costs resulting from drawdowns on the Company’s scrubber financing program are expected to be offset by (i) the reduction in interest expense attributable to the July 2019 repayment of the Company’s Convertible Notes due 2019, and (ii) scheduled amortization on the Company’s existing credit facilities.

Scorpio Tankers Inc. and Subsidiaries
Condensed 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 data2019 2018 2019 2018
Revenue       
 Vessel revenue$150,805  $141,795  346,635  $298,241 
         
Operating expenses       
 Vessel operating costs(68,776) (69,474) (138,152) (139,904)
 Voyage expenses(1,328) (1,033) (1,622) (4,372)
 Charterhire  (17,157) (4,399) (35,169)
 Depreciation - owned or finance leased vessels(44,369) (44,092) (88,183) (87,547)
 Depreciation - right of use assets(5,895)   (8,030)  
 General and administrative expenses(15,528) (13,346) (31,240) (26,972)
 Merger transaction related costs  (7)   (271)
 Total operating expenses(135,896) (145,109) (271,626) (294,235)
Operating income / (loss)14,909  (3,314) 75,009  4,006 
Other (expense) and income, net       
 Financial expenses(47,327) (48,949) (96,083) (88,367)
 Loss on exchange of convertible notes  (16,968)   (16,968)
 Financial income2,725  345  5,843  730 
 Other expenses, net(27) (15) (13) (96)
 Total other expense, net(44,629) (65,587) (90,253) (104,701)
Net loss$(29,720) $(68,901) $(15,244) $(100,695)
         
Loss per share       
         
 Basic$(0.62) $(2.23) $(0.32) $(3.26)
 Diluted$(0.62) $(2.23) $(0.32) $(3.26)
 Basic weighted average shares outstanding48,148,885  30,957,545  48,109,924  30,891,470 
 Diluted weighted average shares outstanding (1)48,148,885  30,957,545  48,109,924  30,891,470 

(1) The dilutive effect of (i) unvested shares of restricted stock and (ii) the potentially dilutive securities relating to the Company's Convertible Notes due 2019 and Convertible Notes due 2022 were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2019 because their effect would have been anti-dilutive. Weighted average shares under the if-converted method (which includes the potential dilutive effect of the unvested shares of restricted stock, the Convertible Notes due 2019, and the Convertible Notes due 2022) were 56,104,777 and 55,822,804 for the three and six months ended June 30, 2019, respectively.

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)

 As of
In thousands of U.S. dollarsJune 30, 2019 December 31, 2018
Assets   
Current assets   
Cash and cash equivalents$467,219  $593,652 
Accounts receivable56,469  69,718 
Prepaid expenses and other current assets15,845  15,671 
Inventories8,761  8,300 
Total current assets548,294  687,341 
Non-current assets   
Vessels and drydock3,955,446  3,997,789 
Right of use assets67,266   
Other assets97,233  75,210 
Goodwill11,539  11,539 
Restricted cash12,294  12,285 
Total non-current assets4,143,778  4,096,823 
Total assets$4,692,072  $4,784,164 
Current liabilities   
Current portion of long-term debt$295,543  $297,934 
Finance lease liability115,689  114,429 
Lease liability - IFRS 1620,708   
Accounts payable15,354  11,865 
Accrued expenses29,175  22,972 
Total current liabilities476,469  447,200 
Non-current liabilities   
Long-term debt1,094,910  1,192,000 
Finance lease liability1,248,231  1,305,952 
Lease liability - IFRS 1647,364   
Total non-current liabilities2,390,505  2,497,952 
Total liabilities2,866,974  2,945,152 
Shareholders' equity   
Issued, authorized and fully paid-in share capital:   
Share capital580  5,776 
Additional paid-in capital2,657,375  2,648,599 
Treasury shares(467,056) (467,056)
Accumulated deficit (1)(365,801) (348,307)
Total shareholders' equity1,825,098  1,839,012 
Total liabilities and shareholders' equity$4,692,072  $4,784,164 

(1) Accumulated deficit reflects the impact of the adoption of IFRS 16, Leases.  IFRS 16 amended the existing accounting standards to require lessees to recognize, on a discounted basis, the rights and obligations created by the commitment to lease assets on the balance sheet, unless the term of the lease is 12 months or less.  Accordingly, the standard resulted in the recognition of right-of-use assets and corresponding liabilities, on the basis of the discounted remaining future minimum lease payments, relating to the existing bareboat chartered-in vessel commitments for three bareboat chartered-in vessels, which are scheduled to expire in April 2025.  Upon transition, a lessee shall apply IFRS 16 to its leases either retrospectively to each prior reporting period presented (the ‘full retrospective approach’) or retrospectively with the cumulative effect of initially applying IFRS 16 recognized at the date of initial application (the ‘modified retrospective approach’).  We applied the modified retrospective approach upon transition. The impact of the application of this standard on the opening balance sheet as of January 1, 2019 was the recognition of a $48.5 million right of use asset, a $50.7 million operating lease liability and a $2.2 million reduction in retained earnings relating to these three vessels.

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(unaudited)

 For the six months ended June 30,
In thousands of U.S. dollars2019 2018
Operating activities   
Net loss$(15,244) $(100,695)
Depreciation - owned or finance leased vessels88,183  87,547 
Depreciation - right of use assets8,030   
Amortization of restricted stock13,859  13,180 
Amortization of deferred financing fees4,088  6,191 
Write-off of deferred financing fees275  7,035 
Accretion of convertible notes6,995  6,435 
Accretion of fair value measurement on debt assumed in business combinations1,827  1,909 
Loss on exchange of convertible notes  16,968 
 108,013  38,570 
Changes in assets and liabilities:   
(Increase) / decrease in inventories(461) 1,473 
Decrease in accounts receivable13,248  15,039 
(Increase) / decrease in prepaid expenses and other current assets(175) 4,620 
Increase in other assets(2,807) (3,576)
Increase in accounts payable1,187  2,767 
Increase / (decrease) in accrued expenses2,272  (6,165)
 13,264  14,158 
Net cash inflow from operating activities121,277  52,728 
Investing activities   
Acquisition of vessels and payments for vessels under construction  (26,057)
Drydock, scrubber, ballast water treatment and other vessel related payments (owned, finance leased and bareboat-in vessels)(59,688) (2,136)
Net cash outflow from investing activities(59,688) (28,193)
Financing activities   
Debt repayments(166,729) (167,491)
Issuance of debt  142,025 
Debt issuance costs(1,288) (13,473)
Principal repayments on lease liability - IFRS 16(7,129)  
Increase in restricted cash(9) (897)
Repayment of convertible notes(2,292)  
Equity issuance costs(295) (4)
Dividends paid(10,279) (6,579)
Repurchase of common stock(1)  
Net cash outflow from financing activities(188,022) (46,419)
Decrease in cash and cash equivalents(126,433) (21,884)
Cash and cash equivalents at January 1,593,652  186,462 
Cash and cash equivalents at June 30,$467,219  $164,578 

 

Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three and six months ended June 30, 2019 and 2018
(unaudited)

  For the three months ended June 30, For the six months ended June 30,
  2019 2018 2019 2018
Adjusted EBITDA(1)  (in thousands of U.S. dollars except Fleet Data) $71,821  $47,300  $185,068  $104,908 
         
Average Daily Results        
Time charter equivalent per day(2) $14,348  $12,301  $16,470  $12,816 
Vessel operating costs per day(3) $6,351  6,391  $6,414  $6,507 
         
LR2        
TCE per revenue day (2) $16,974  $12,861  $19,948  $13,572 
Vessel operating costs per day(3) $6,687  6,436  $6,748  $6,650 
Average number of owned or finance leased vessels 38.0  38.0  38.0  38.0 
Average number of time chartered-in vessels   2.0    1.7 
         
LR1        
TCE per revenue day (2) $14,527  $11,090  $16,221  $10,608 
Vessel operating costs per day(3) $6,159  $6,613  $6,377  $6,805 
Average number of owned or finance leased vessels 12.0  12.0  12.0  12.0 
Average number of time chartered-in vessels        
         
MR        
TCE per revenue day (2) $13,436  $12,567  $14,594  $13,049 
Vessel operating costs per day(3) $6,148  $6,392  $6,235  $6,384 
Average number of owned or finance leased vessels 45.0  45.0  45.0  44.8 
Average number of time chartered-in vessels   5.6  0.2  5.9 
Average number of bareboat chartered-in vessels 3.0  3.0  3.0  3.0 
         
Handymax        
TCE per revenue day (2) $11,520  $11,267  $14,644  $12,096 
Vessel operating costs per day(3) $6,318  $6,183  $6,240  $6,357 
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    1.1 
Average number of bareboat chartered-in vessels 7.0  7.0  7.0  7.0 
         
Fleet data        
Average number of owned or finance leased vessels 109.0  109.0  109.0  108.8 
Average number of time chartered-in vessels   8.0  0.2  8.7 
Average number of bareboat chartered-in vessels 10.0  10.0  10.0  10.0 
         
Drydock        
Drydock, scrubber, ballast water treatment and other vessel related payments for owned, finance leased and bareboat chartered-in vessels (in thousands of U.S. dollars) $41,448  $1,698  $59,688  $2,136 

 

(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, finance leased 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, finance leased 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, 2019

 Vessel Name Year Built DWT Ice class Employment Vessel type
 Owned or finance leased vessels          
1STI Brixton 2014 38,734  1A  SHTP (1) Handymax
2STI Comandante 2014 38,734  1A  SHTP (1) Handymax
3STI Pimlico 2014 38,734  1A  SHTP (1) Handymax
4STI Hackney 2014 38,734  1A  SHTP (1) Handymax
5STI Acton 2014 38,734  1A  SHTP (1) Handymax
6STI Fulham 2014 38,734  1A  SHTP (1) Handymax
7STI Camden 2014 38,734  1A  SHTP (1) Handymax
8STI Battersea 2014 38,734  1A  SHTP (1) Handymax
9STI Wembley 2014 38,734  1A  SHTP (1) Handymax
10STI Finchley 2014 38,734  1A  SHTP (1) Handymax
11STI Clapham 2014 38,734  1A  SHTP (1) Handymax
12STI Poplar 2014 38,734  1A  SHTP (1) Handymax
13STI Hammersmith 2015 38,734  1A  SHTP (1) Handymax
14STI Rotherhithe 2015 38,734  1A  SHTP (1) Handymax
15STI Amber 2012 49,990   SMRP (2) MR
16STI Topaz 2012 49,990   SMRP (2) MR
17STI Ruby 2012 49,990   SMRP (2) MR
18STI Garnet 2012 49,990   SMRP (2) MR
19STI Onyx 2012 49,990   SMRP (2) MR
20STI Fontvieille 2013 49,990   SMRP (2) MR
21STI Ville 2013 49,990   SMRP (2) MR
22STI Duchessa 2014 49,990   SMRP (2) MR
23STI Opera 2014 49,990   SMRP (2) MR
24STI Texas City 2014 49,990   SMRP (2) MR
25STI Meraux 2014 49,990   SMRP (2) MR
26STI San Antonio 2014 49,990   SMRP (2) MR
27STI Venere 2014 49,990   SMRP (2) MR
28STI Virtus 2014 49,990   SMRP (2) MR
29STI Aqua 2014 49,990   SMRP (2) MR
30STI Dama 2014 49,990   SMRP (2) MR
31STI Benicia 2014 49,990   SMRP (2) MR
32STI Regina 2014 49,990   SMRP (2) MR
33STI St. Charles 2014 49,990   SMRP (2) MR
34STI Mayfair 2014 49,990   SMRP (2) MR
35STI Yorkville 2014 49,990   SMRP (2) MR
36STI Milwaukee 2014 49,990   SMRP (2) MR
37STI Battery 2014 49,990   SMRP (2) MR
38STI Soho 2014 49,990   SMRP (2) MR
39STI Memphis 2014 49,990   SMRP (2) MR
40STI Tribeca 2015 49,990   SMRP (2) MR
41STI Gramercy 2015 49,990   SMRP (2) MR
42STI Bronx 2015 49,990   SMRP (2) MR
43STI Pontiac 2015 49,990   SMRP (2) MR
44STI Manhattan 2015 49,990   SMRP (2) MR
45STI Queens 2015 49,990   SMRP (2) MR
46STI Osceola 2015 49,990   SMRP (2) MR
47STI Notting Hill 2015 49,687  1B SMRP (2) MR
48STI Seneca 2015 49,990   SMRP (2) MR
49STI Westminster 2015 49,687  1B SMRP (2) MR
50STI Brooklyn 2015 49,990   SMRP (2) MR
51STI Black Hawk 2015 49,990   SMRP (2) MR
52STI Galata 2017 49,990   SMRP (2) MR
53STI Bosphorus 2017 49,990   SMRP (2) MR
54STI Leblon 2017 49,990   SMRP (2) MR
55STI La Boca 2017 49,990   SMRP (2) MR
56STI San Telmo 2017 49,990  1B SMRP (2) MR
57STI Donald C Trauscht 2017 49,990  1B SMRP (2) MR
58STI Esles II 2018 49,990  1B SMRP (2) MR
59STI Jardins 2018 49,990  1B SMRP (2) MR
60STI Excel 2015 74,000   SLR1P (3) LR1
61STI Excelsior 2016 74,000   SLR1P (3) LR1
62STI Expedite 2016 74,000   SLR1P (3) LR1
63STI Exceed 2016 74,000   SLR1P (3) LR1
64STI Executive 2016 74,000   SLR1P (3) LR1
65STI Excellence 2016 74,000   SLR1P (3) LR1
66STI Experience 2016 74,000   SLR1P (3) LR1
67STI Express 2016 74,000   SLR1P (3) LR1
68STI Precision 2016 74,000   SLR1P (3) LR1
69STI Prestige 2016 74,000   SLR1P (3) LR1
70STI Pride 2016 74,000   SLR1P (3) LR1
71STI Providence 2016 74,000   SLR1P (3) LR1
72STI Elysees 2014 109,999   SLR2P (4) LR2
73STI Madison 2014 109,999   SLR2P (4) LR2
74STI Park 2014 109,999   SLR2P (4) LR2
75STI Orchard 2014 109,999   SLR2P (4) LR2
76STI Sloane 2014 109,999   SLR2P (4) LR2
77STI Broadway 2014 109,999   SLR2P (4) LR2
78STI Condotti 2014 109,999   SLR2P (4) LR2
79STI Rose 2015 109,999   SLR2P (4) LR2
80STI Veneto 2015 109,999   SLR2P (4) LR2
81STI Alexis 2015 109,999   SLR2P (4) LR2
82STI Winnie 2015 109,999   SLR2P (4) LR2
83STI Oxford 2015 109,999   SLR2P (4) LR2
84STI Lauren 2015 109,999   SLR2P (4) LR2
85STI Connaught 2015 109,999   SLR2P (4) LR2
86STI Spiga 2015 109,999   SLR2P (4) LR2
87STI Savile Row 2015 109,999   SLR2P (4) LR2
88STI Kingsway 2015 109,999   SLR2P (4) LR2
89STI Carnaby 2015 109,999   SLR2P (4) LR2
90STI Solidarity 2015 109,999   SLR2P (4) LR2
91STI Lombard 2015 109,999   SLR2P (4) LR2
92STI Grace 2016 109,999   SLR2P (4) LR2
93STI Jermyn 2016 109,999   SLR2P (4) LR2
94STI Sanctity 2016 109,999   SLR2P (4) LR2
95STI Solace 2016 109,999   SLR2P (4) LR2
96STI Stability 2016 109,999   SLR2P (4) LR2
97STI Steadfast 2016 109,999   SLR2P (4) LR2
98STI Supreme 2016 109,999   SLR2P (4) LR2
99STI Symphony 2016 109,999   SLR2P (4) LR2
100STI Gallantry 2016 113,000   SLR2P (4) LR2
101STI Goal 2016 113,000   SLR2P (4) LR2
102STI Nautilus 2016 113,000   SLR2P (4) LR2
103STI Guard 2016 113,000   SLR2P (4) LR2
104STI Guide 2016 113,000   SLR2P (4) LR2
105STI Selatar 2017 109,999   SLR2P (4) LR2
106STI Rambla 2017 109,999   SLR2P (4) LR2
107STI Gauntlet 2017 113,000   SLR2P (4) LR2
108STI Gladiator 2017 113,000   SLR2P (4) LR2
109STI 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 (5) 
 Bareboat chartered-in vessels                 
110Silent 2007 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-20(6)
111Single 2007 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-20(6)
112Star I 2007 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-20(6)
113Sky 2007 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-21(7)
114Steel 2008 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-21(7)
115Stone I 2008 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-21(7)
116Style 2008 37,847  1A  SHTP (1) Handymax Bareboat $6,300  31-Mar-21(7)
117STI Beryl 2013 49,990   SMRP (2) MR Bareboat $8,800  18-Apr-25(8)
118STI Le Rocher 2013 49,990   SMRP (2) MR Bareboat $8,800  21-Apr-25(8)
119STI Larvotto 2013 49,990   SMRP (2) MR Bareboat $8,800  28-Apr-25(8)
                   
 Total bareboat chartered-in DWT   414,899              
                   
 Total Fleet DWT   8,298,089              
                   

 

(1)This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is a Scorpio 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 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 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 Pool and is operated by SCM. SLR2P and SCM are related parties to the Company.
(5)Redelivery from the charterer is plus or minus 30 days from the expiry date.
(6)In March 2019, the Company entered into a new bareboat charter-in agreement on this vessel for a period of one year at $6,300 per day.
(7)In March 2019, the Company entered into a new bareboat charter-in agreement on this vessel for a period of two years at $6,300 per day.
(8)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.

 

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 the amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2018 and 2019 were as follows:

Date paidDividends per common
share
March 2018$0.100
June 2018$0.100
September 2018$0.100
December 2018$0.100
March 2019$0.100
June 2019$0.100

On July 30, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on or about September 27, 2019 to all shareholders of record as of September 10, 2019 (the record date).  As of July 30, 2019, there were 51,845,390 of the common shares of the Company 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 Unsecured Senior Notes due 2020 (NYSE: SBNA), which were issued in May 2014, and Convertible Notes due 2022, which were issued in May and July 2018.

As of the date hereof, the Company has the authority to purchase up to an additional $121.6 million of its securities under its Securities Repurchase Program. The Company may 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 and 14 Handymax tankers) with an average age of 4.0 years and bareboat charters-in 10 product tankers (three 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 ("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 TCE 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 TCE 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 TCE revenue, adjusted net income or loss with 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.

TCE revenue is reconciled above in the section entitled 'Explanation of Variances on the Second Quarter of 2019 Financial Results Compared to the Second Quarter of 2018'.

Reconciliation of Net Loss to Adjusted Net Loss

There were no Non-IFRS adjustments to the Net Loss for the three months ended June 30, 2019.

   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) $(2.23) $(2.23)
 Adjustments:      
 Merger transaction related costs 7  0.00  0.00 
 Deferred financing fees write-off 7,035  0.23  0.23 
 Loss on exchange of convertible notes 16,968  0.55  0.55 
 Adjusted net loss $(44,891) $(1.45) $(1.45)

 

   For the six months ended June 30, 2019
     Per share Per share
In thousands of U.S. dollars except per share data Amount  basic  diluted
 Net loss $(15,244) $(0.32) $(0.32)
 Adjustment:      
 Deferred financing fees write-off 275  0.01  0.01 
 Adjusted net loss $(14,969) $(0.31) $(0.31)

 

   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) $(3.26) $(3.26)
 Adjustments:      
 Merger transaction related costs 271  0.01  0.01 
 Deferred financing fees write-off 7,035  0.23  0.23 
 Loss on exchange of convertible notes 16,968  0.55  0.55 
 Adjusted net loss $(76,421) $(2.47) $(2.47)

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 2019 2018 2019 2018
 Net loss $(29,720) $(68,901) $(15,244) $(100,695)
 Financial expenses 47,327  48,949  96,083  88,367 
 Financial income (2,725) (345) (5,843) (730)
 Depreciation - owned or finance leased vessels 44,369  44,092  88,183  87,547 
 Depreciation - right of use assets 5,895    8,030   
 Merger transaction related costs   7    271 
 Amortization of restricted stock 6,675  6,530  13,859  13,180 
 Loss on exchange of convertible notes   16,968    16,968 
 Adjusted EBITDA $71,821  $47,300  $185,068  $104,908 

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," "expect," "anticipate," "estimate," "intend," "plan," "target," "project," "likely," "may," "will," "would," "could" 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, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes 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 the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines 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 the Company’s 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 the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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 the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Scorpio Tankers Inc.
212-542-1616

scorpio.png

Source: Scorpio Tankers Inc.


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