Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the
"Company") today reported its results for the three months and year
ended December 31, 2020. 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
December 31, 2020 and 2019
For the three months ended December 31, 2020,
the Company had a net loss of $76.3 million,
or $1.41 basic and diluted loss per share. For the three
months ended December 31, 2020, the Company had an adjusted net
loss (see Non-IFRS Measures section below) of $56.6 million, or
$1.04 basic and diluted loss per share, which excludes from the net
loss (i) $2.8 million, or $0.05 per basic and diluted share, of
losses recorded on the extinguishment of debt during the period,
which resulted from the refinancing of certain credit facilities
and lease financing arrangements, and (ii) impairment charges of
$16.8 million, or $0.31 per basic and diluted share.
For the three months ended December 31, 2019,
the Company had net income of $12.0 million, or $0.22 basic and
$0.21 diluted earnings per share. For the three months ended
December 31, 2019, the Company’s adjusted net income (see Non-IFRS
Measures section below) was $12.8 million, or $0.23 basic and
diluted earnings per share, which excludes from net income a $0.7
million, or $0.01 per basic and diluted share, write-off of
deferred financing fees.
Results for the year ended December 31,
2020 and 2019
For the year ended December 31, 2020, the
Company had net income of $94.1 million, or $1.72 basic
and $1.67 diluted earnings per share. For the year ended December
31, 2020, the Company had an adjusted net income (see Non-IFRS
Measures section below) of $114.0 million, or $2.09 basic and $2.02
diluted earnings per share, which excludes from net income (i) a
$1.0 million, or $0.02 per basic and diluted share, gain recorded
on the Company's repurchase of its Convertible Notes due 2022
during the third quarter of 2020, (ii) $4.1 million, or $0.07 per
basic and diluted share, of losses recorded on the extinguishment
of debt during the year, which resulted from the refinancing of
certain credit facilities and lease financing arrangements, and
(iii) impairment charges of $16.8 million, or $0.31 per basic and
$0.30 per diluted share.
For the year ended December 31, 2019, the
Company had a net loss of $48.5 million, or $0.97 basic and diluted
loss per share. For the year ended December 31, 2019, the Company’s
adjusted net loss (see Non-IFRS Measures section below) was $47.0
million, or $0.94 basic and diluted loss per share, which excludes
from the net loss a $1.5 million, or $0.03 per basic and diluted
share, write-off of deferred financing fees.
Declaration of Dividend
On February 17, 2021, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about March 15, 2021 to all shareholders of
record as of March 2, 2021 (the record date). As of
February 17, 2021, there were 58,093,147 common shares of the
Company outstanding.
Summary of Fourth Quarter and Other
Recent Significant Events
- Below is
a summary of the average daily Time Charter Equivalent ("TCE")
revenue (see Non-IFRS Measures section below) and duration of
contracted pool voyages and time charters for the Company's vessels
thus far in the first quarter of 2021 as of the date hereof (See
footnotes to "Other operating data" table below for the definition
of daily TCE revenue):
| |
Total |
|
Pool |
Average daily TCE revenue |
% of Days |
|
LR2 |
$15,200 |
48% |
| LR1 |
$11,000 |
58% |
| MR |
$11,500 |
58% |
| Handymax |
$6,800 |
50% |
-
Below is a summary of the average daily TCE revenue earned by the
Company's vessels in each of the pools during the fourth quarter of
2020:
|
Pool |
Average daily TCE revenue |
|
LR2 |
$16,026 |
|
LR1 |
$11,765 |
|
MR |
$9,991 |
|
Handymax |
$7,773 |
-
In January 2021, the Company entered into a note distribution
agreement with B. Riley Securities, Inc., as sales agent, pursuant
to which the Company may offer and sell, from time to time, up to
$75.0 million of additional aggregate principal amount of its 7.00%
Senior Unsecured Notes due 2025 (the "Senior Notes due 2025").
Since its inception, the Company has issued $7.6 million aggregate
principal amount of Senior Notes due 2025 under the program,
resulting in $7.4 million in aggregate net proceeds (net of
underwriters commissions and expenses). See “Distribution Agreement
of Additional Senior Notes due 2025” below for additional
information.
-
The Company has committed financing to increase liquidity by
approximately $20.8 million, consisting of:
-
$18.9 million from the refinancing of two vessels (after the
repayment of existing debt).
-
$1.9 million from the drawdown of financing for a scrubber that has
been previously paid for and installed (i.e. there are no
additional payments needed in order to drawdown these funds).
-
All of the above funds are expected to be drawn down before the end
of the first quarter of 2021.
-
The Company is also in discussions with financial institutions to
further increase liquidity by up to $61.2 million in connection
with the refinancing of 15 vessels.
-
In addition to the above, the Company has $20.0 million of
additional liquidity available (after the repayment of existing
debt) from previously announced financings that have been
committed. These drawdowns are expected to occur at varying points
in the future as these financings are tied to scrubber
installations on the Company’s vessels.
-
The Company has $204.1 million in cash and cash equivalents as of
February 17, 2021.
- The Company recorded an aggregate
impairment charge to certain of its vessels and goodwill of $16.8
million as of December 31, 2020. Under IFRS, impairment losses are
calculated as the excess of a vessel’s carrying amount over its
recoverable amount. Recoverable amount is the higher of an asset’s
(i) fair value less costs to sell and (ii) value in use. Value in
use is determined by discounting the estimated future cash flows of
each vessel to their present value using a discount rate that
reflects the risks specific to the asset. At December 31, 2020, the
Company’s value in use calculations for certain of the MRs in its
fleet were below their carrying amounts which resulted in an
impairment charge of $14.2 million. The recoverable amount of
goodwill is tested in a similar manner, and the Company’s testing
of the carrying value of its goodwill relating to its LR1
reportable segment (which arose from the Company’s acquisition of
Navig8 Product Tankers Inc. in 2017), resulted in an additional
impairment charge of $2.6 million.
Distribution Agreement of Additional
Senior Notes due 2025
In January 2021, the Company entered into a note
distribution agreement (the “Distribution Agreement”) with B. Riley
Securities, Inc., as sales agent (the “Agent”), under which the
Company may offer and sell, from time to time, up to an additional
$75.0 million aggregate principal amount of its Senior Notes due
2025 (the "Additional Notes").
Any Additional Notes sold will be issued under
the Indenture pursuant to which the Company previously issued $28.1
million aggregate principal amount of the Senior Notes due 2025 on
May 29, 2020 (the "Initial Notes"). The Additional Notes will have
the same terms as (other than date of issuance), form a single
series of debt securities with and have the same CUSIP number and
be fungible with, the Initial Notes immediately upon issuance,
including for purposes of notices, consents, waivers, amendments
and any other action permitted under the Indenture. The Senior
Notes due 2025 are listed on the New York Stock Exchange (the
“NYSE”) under the symbol "SBBA."
Sales of the Additional Notes may be made over a
period of time, and from time to time, through the Agent, in
transactions involving an offering of the Senior Notes due 2025
into the existing trading market at prevailing market prices.
Since inception of this program, the Company has
sold 302,566 Additional Notes for aggregate net proceeds (net
of underwriting commissions and expenses) of $7.4 million.
Diluted Weighted Number of
Shares
The computation of earnings or loss per share is
determined by taking into consideration the potentially dilutive
shares arising from (i) the Company’s equity incentive plan, and
(ii) the Company’s Convertible Notes due 2022. These potentially
dilutive shares are excluded from the computation of earnings or
loss per share to the extent they are anti-dilutive.
The impact of the Convertible Notes due 2022 on
earnings or loss per share is computed using the if-converted
method. Under this method, the Company first includes the
potentially dilutive impact of restricted shares issued under the
Company’s equity incentive plan, and then assumes that its
Convertible Notes due 2022, which were issued in May and July 2018,
were converted into common shares at the beginning of each period.
The if-converted method also assumes that the interest and non-cash
amortization expense associated with these notes of $2.9 million
and $13.9 million, during the three months and year ended December
31, 2020, respectively, were not incurred. Conversion is not
assumed if the results of this calculation are anti-dilutive.
The Company's basic weighted average number of
shares outstanding were 54,265,313 for the three months ended
December 31, 2020. There were 55,117,113 weighted average shares
outstanding including the potentially dilutive impact of restricted
shares, and 59,100,976 weighted average shares outstanding under
the if-converted method. Since the Company was in a net loss
position, the potentially dilutive shares arising from both the
Company’s restricted shares, and under the if-converted method,
were anti-dilutive for purposes of calculating the loss per share.
Accordingly, basic weighted average shares outstanding were used to
calculate both basic and diluted loss per share for this
period.
The Company's basic weighted average number of
shares outstanding were 54,665,898 for the year ended December 31,
2020. There were 56,392,311 weighted average shares outstanding
including the potentially dilutive impact of restricted shares, and
61,182,447 weighted average shares outstanding under the
if-converted method. The calculation of diluted earnings per share
for this period was calculated by including the potentially
dilutive impact of restricted shares. The calculation of diluted
earnings per share under the if-converted method was anti-dilutive
on the basis that under this computation, the interest and non-cash
amortization expense associated with these notes of $13.9 million
is assumed to have not been incurred.
COVID-19
Since the beginning of calendar year 2020, the
outbreak of COVID-19 has spread throughout the world and has
resulted in numerous actions taken by governments and governmental
agencies in an attempt to mitigate the spread of the virus. These
measures have resulted in a significant reduction in global
economic activity and volatility in the global financial and
commodities markets (including oil).
Initially, the onset of the COVID-19 pandemic
resulted in a sharp reduction of economic activity and a
corresponding reduction in the global demand for oil and refined
petroleum products. This period of time was marked by extreme
volatility in the oil markets and the development of a steep
contango in the prices of oil and refined petroleum products.
Consequently, an abundance of arbitrage and floating storage
opportunities opened up, which resulted in record increases in spot
TCE rates during the second quarter of 2020. These market dynamics
led to a build up of global oil and refined petroleum product
inventories. In June 2020, the underlying oil markets stabilized
and global economies began to recover, albeit at a slow pace. These
conditions led to the gradual unwinding of excess inventories and
thus a reduction in spot TCE rates. Spot TCE rates have remained
subdued ever since, as the continuation of the unwinding of
inventories, coupled with tepid demand for oil, have had an adverse
impact on the demand for our vessels.
We expect that the COVID-19 virus will continue
to cause volatility in the commodities markets. The scale and
duration of these circumstances is unknowable but could have a
material impact on our earnings, cash flow and financial condition
in 2021. An estimate of the impact on our results of operations and
financial condition cannot be made at this time.
$250 Million Securities Repurchase
Program
In September 2020, 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 Senior
Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and
Convertible Notes due 2022, which were issued in May and July 2018.
No securities have been repurchased under this program since its
inception through the date of this press release.
Conference Call
The Company has scheduled a conference call on
February 18, 2021 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) 861-2416International Dial-In Number:
1 (703) 736-7422Conference ID: 3055659
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.
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/gp5u9drq
Current Liquidity
As of February 17, 2021, the Company had
$204.1 million in unrestricted cash and cash equivalents.
Drydock, Scrubber and Ballast Water
Treatment Update
Set forth below is a table summarizing the
drydock, scrubber and ballast water treatment system activity that
occurred during the fourth quarter of 2020 and that is in progress
as of January 1, 2021:
|
|
Number of Vessels |
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Aggregate Costs ($ in millions)
(1) |
Aggregate Off-hire Days in Q4 2020 |
|
Completed in the fourth quarter of 2020 |
|
|
|
|
|
|
| LR2 |
4 |
4 |
— |
4 |
$16.5 |
220 |
| LR1 |
2 |
2 |
— |
— |
2.2 |
57 |
| MR |
2 |
1 |
1 |
2 |
7.3 |
81 |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
8 |
7 |
1 |
6 |
$26.0 |
358 |
| |
|
|
|
|
|
|
| In progress as of January 1,
2021 |
|
|
|
|
|
|
| LR2 |
3 |
3 |
— |
1 |
$6.1 |
86 |
| LR1 |
3 |
3 |
— |
— |
3.3 |
28 |
| MR |
— |
— |
— |
— |
— |
— |
| Handymax |
— |
— |
— |
— |
— |
— |
| |
6 |
6 |
— |
1 |
$9.4 |
114 |
(1) Aggregate costs for vessels completed
in the quarter represent the total costs incurred, some of which
may have been incurred in prior periods. Aggregate costs for
vessels in progress as of January 1, 2021 represent the total costs
incurred through that date, some of which may have been incurred in
prior periods.
Set forth below are the estimated expected
payments to be made for the Company's drydocks, ballast water
treatment system installations, and scrubber installations through
2021 (which also include actual payments made during the fourth
quarter of 2020 and through February 17, 2021):
| In millions of U.S.
dollars |
As of February 17, 2021 (1) (2) |
| |
|
|
Q1 2021 - payments made through February 17, 2021 |
$ |
7.8 |
| Q1 2021 - remaining
payments |
13.2 |
| Q2 2021 |
6.6 |
| Q3 2021 |
10.2 |
| Q4 2021 |
6.2 |
| FY 2022 |
40.6 |
(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.
(2) Based upon the commitments received to
date, which include the remaining availability under certain
financing transactions that have been previously announced, the
Company expects to raise approximately $21.9 million of aggregate
additional liquidity to finance the purchase and installations of
scrubbers (after the repayment of existing debt) once all of the
agreements are closed and drawn. These drawdowns are expected
to occur at varying points in the future as these financings are
tied to scrubber installations on the Company’s vessels.
Set forth below are the estimated expected
number of ships and estimated expected off-hire days for the
Company's drydocks, ballast water treatment system installations,
and scrubber installations (1):
|
|
Q1 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
1 |
— |
— |
102 |
|
LR1 |
— |
— |
— |
62 |
|
MR |
— |
— |
— |
— |
|
Handymax |
— |
— |
— |
— |
|
|
|
|
|
|
| Total Q1
2021 |
1 |
— |
— |
164 |
| |
|
|
|
|
|
|
Q2 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
3 |
— |
— |
60 |
|
LR1 |
3 |
— |
— |
60 |
|
MR |
— |
— |
— |
— |
|
Handymax |
— |
— |
— |
— |
|
|
|
|
|
|
| Total Q2
2021 |
6 |
— |
— |
120 |
| |
|
|
|
|
|
|
Q3 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
2 |
— |
— |
40 |
|
LR1 |
2 |
— |
— |
40 |
|
MR |
— |
— |
— |
— |
|
Handymax |
— |
— |
— |
— |
|
|
|
|
|
|
| Total Q3
2021 |
4 |
— |
— |
80 |
| |
|
|
|
|
|
|
Q4 2021 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
2 |
— |
— |
40 |
|
LR1 |
2 |
— |
— |
40 |
|
MR |
— |
— |
— |
— |
|
Handymax |
— |
— |
— |
— |
|
|
|
|
|
|
| Total Q4
2021 |
4 |
— |
— |
80 |
| |
|
|
|
|
|
|
FY 2022 |
|
|
|
Ships Scheduled for
(2): |
Off-hire |
|
|
Drydock |
Ballast Water Treatment Systems |
Scrubbers |
Days (3) |
|
LR2 |
5 |
— |
1 |
140 |
|
LR1 |
— |
— |
3 |
120 |
|
MR |
11 |
5 |
4 |
295 |
|
Handymax |
— |
— |
— |
— |
|
|
|
|
|
|
| Total FY
2022 |
16 |
5 |
8 |
555 |
(1) 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.(2) Represents the number of vessels scheduled to
commence drydock, ballast water treatment system, and/or scrubber
installations during the period. It does not include vessels that
commenced work in prior periods but will be completed in the
subsequent period. (3) Represents total estimated off-hire
days during the period, including vessels that commenced work in a
previous period.
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 September 30,
2020 |
Drawdowns and (repayments), net |
Outstanding Principal as of December 31, 2020 |
Drawdowns and (repayments), net |
Outstanding Principal as of February 17, 2021 |
|
1 |
KEXIM Credit Facility (1)(2)(4) |
$ |
41,722 |
|
$ |
(25,791 |
) |
|
$ |
15,931 |
|
(15,931 |
) |
|
$ |
— |
|
| 2 |
ING Credit Facility (10) |
197,660 |
|
(6,312 |
) |
|
191,348 |
|
203 |
|
|
191,551 |
|
| 3 |
2018 NIBC Credit Facility
(8) |
32,098 |
|
(1,032 |
) |
|
31,066 |
|
(31,066 |
) |
|
— |
|
| 4 |
2017 Credit Facility (6)
(7) |
92,247 |
|
(92,247 |
) |
|
— |
|
— |
|
|
— |
|
| 5 |
Credit Agricole Credit
Facility |
84,302 |
|
(2,142 |
) |
|
82,160 |
|
— |
|
|
82,160 |
|
| 6 |
ABN AMRO / K-Sure Credit
Facility |
42,791 |
|
(964 |
) |
|
41,827 |
|
— |
|
|
41,827 |
|
| 7 |
Citibank / K-Sure Credit
Facility |
88,922 |
|
(2,104 |
) |
|
86,818 |
|
— |
|
|
86,818 |
|
| 8 |
ABN / SEB Credit Facility |
99,513 |
|
(1,657 |
) |
|
97,856 |
|
— |
|
|
97,856 |
|
| 9 |
Hamburg Commercial Credit
Facility |
41,138 |
|
(823 |
) |
|
40,315 |
|
— |
|
|
40,315 |
|
| 10 |
Prudential Credit
Facility |
51,765 |
|
(1,387 |
) |
|
50,378 |
|
(924 |
) |
|
49,454 |
|
| 11 |
2019 DNB / GIEK Credit
Facility (1) |
29,892 |
|
22,671 |
|
|
52,563 |
|
— |
|
|
52,563 |
|
| 12 |
BNPP Sinosure Credit Facility
(2) |
89,781 |
|
4,952 |
|
|
94,733 |
|
— |
|
|
94,733 |
|
| 13 |
2020 $225.0 Million Credit
Facility (3) |
142,365 |
|
66,525 |
|
|
208,890 |
|
— |
|
|
208,890 |
|
| 14 |
2021 $21.0 Million Credit
Facility (4) |
— |
|
— |
|
|
— |
|
21,000 |
|
|
21,000 |
|
| 15 |
Ocean Yield Lease
Financing |
141,322 |
|
(2,814 |
) |
|
138,508 |
|
(1,773 |
) |
|
136,735 |
|
| 16 |
BCFL Lease Financing (LR2s)
(10) |
88,539 |
|
(2,342 |
) |
|
86,197 |
|
2,155 |
|
|
88,352 |
|
| 17 |
CSSC Lease Financing (3) |
216,234 |
|
(81,926 |
) |
|
134,308 |
|
(1,821 |
) |
|
132,487 |
|
| 18 |
CSSC Scrubber Lease Financing
(3) |
8,363 |
|
(3,920 |
) |
|
4,443 |
|
(588 |
) |
|
3,855 |
|
| 19 |
BCFL Lease Financing (MRs)
(10) |
80,871 |
|
(3,123 |
) |
|
77,748 |
|
3,483 |
|
|
81,231 |
|
| 20 |
2018 CMBFL Lease
Financing |
128,245 |
|
(3,252 |
) |
|
124,993 |
|
(2,550 |
) |
|
122,443 |
|
| 21 |
$116.0 Million Lease Financing
(10) |
106,047 |
|
(2,246 |
) |
|
103,801 |
|
310 |
|
|
104,111 |
|
| 22 |
AVIC Lease Financing (5) |
118,464 |
|
1,268 |
|
|
119,732 |
|
— |
|
|
119,732 |
|
| 23 |
China Huarong Lease Financing
(10) |
113,625 |
|
(3,375 |
) |
|
110,250 |
|
10,000 |
|
|
120,250 |
|
| 24 |
$157.5 Million Lease
Financing |
127,336 |
|
(3,536 |
) |
|
123,800 |
|
— |
|
|
123,800 |
|
| 25 |
COSCO Lease Financing |
70,675 |
|
(1,925 |
) |
|
68,750 |
|
— |
|
|
68,750 |
|
| 26 |
2020 CMB Lease Financing |
45,383 |
|
(810 |
) |
|
44,573 |
|
— |
|
|
44,573 |
|
| 27 |
2020 TSFL Lease Financing
(6) |
— |
|
47,250 |
|
|
47,250 |
|
(830 |
) |
|
46,420 |
|
| 28 |
2020 SPDB-FL Lease Financing
(7) |
— |
|
96,500 |
|
|
96,500 |
|
— |
|
|
96,500 |
|
| 29 |
2021 AVIC Lease Financing
(8) |
— |
|
— |
|
|
— |
|
44,200 |
|
|
44,200 |
|
| 30 |
IFRS 16 - Leases - 7
Handymax |
4,513 |
|
(2,266 |
) |
|
2,247 |
|
(1,469 |
) |
|
778 |
|
| 31 |
IFRS 16 - Leases - 3 MR |
38,777 |
|
(1,841 |
) |
|
36,936 |
|
(1,278 |
) |
|
35,658 |
|
| 32 |
$670.0 Million Lease
Financing |
606,675 |
|
(13,384 |
) |
|
593,291 |
|
(7,524 |
) |
|
585,767 |
|
| 33 |
Unsecured Senior Notes Due
2025 (9) |
28,100 |
|
— |
|
|
28,100 |
|
7,564 |
|
|
35,664 |
|
| 34 |
Convertible Notes Due
2022 |
151,229 |
|
— |
|
|
151,229 |
|
— |
|
|
151,229 |
|
| |
Gross debt
outstanding |
$ |
3,108,594 |
|
$ |
(22,053 |
) |
|
3,086,541 |
|
$ |
23,161 |
|
|
$ |
3,109,702 |
|
| |
Cash and cash
equivalents |
218,095 |
|
|
187,511 |
|
|
|
204,055 |
|
| |
Net debt |
$ |
2,890,499 |
|
|
$ |
2,899,030 |
|
|
$ |
2,905,647 |
|
(1) In December 2020, the Company drew down
$23.7 million from its 2019 DNB / GIEK Credit Facility to refinance
the existing indebtedness on an LR2 product tanker, STI Condotti,
which was previously financed under the KEXIM Credit Facility. The
Company repaid $15.9 million on the KEXIM Credit Facility as part
of this transaction. The 2019 DNB / GIEK Credit Facility matures in
July 2024, bears interest at LIBOR plus a margin of 2.5% per annum,
and is expected to be repaid in equal quarterly installments of
approximately $1.8 million per quarter in aggregate (which includes
this, and previous drawdowns), with a balloon payment due at
maturity.
(2) In December 2020, the Company drew down
$9.6 million from its BNPP Sinosure Credit Facility to partially
finance the purchase of scrubbers on five vessels. This borrowing
is collateralized by a Handymax product tanker, STI Hackney, which
was previously financed under the KEXIM Credit Facility. The
Company repaid $9.9 million on the KEXIM Credit Facility as part of
this transaction.
A total of $101.5 million has been drawn and
there is $32.6 million of remaining availability under the BNPP
Sinosure Credit Facility. Each drawdown is split evenly into two
facilities, (i) a commercial facility (the "Commercial Facility"),
and (ii) a Sinosure facility (the "Sinosure Facility"), which is
being funded by the lenders under the Commercial Facility and
insured by the China Export & Credit Insurance Corporation
("Sinosure"). The BNPP Sinosure Credit Facility is split into
70 tranches each of which represent the lesser of 85% of the
purchase and installation price of 70 scrubbers, or $1.9 million
per scrubber (not to exceed 65% of the fair market value of the
collateral vessels). The Sinosure Facility and the Commercial
Facility bear interest at LIBOR plus a margin of 1.80% and 2.80%
per annum, respectively. The Sinosure Facility is expected to be
repaid in 10 equal semi-annual installments, and the Commercial
Facility is expected to be repaid at the final maturity date of the
facility, or October 2025.
In January 2021, the Company signed an agreement
to extend the availability period under this loan facility to June
15, 2022 from March 15, 2021.
(3) In October and November 2020, the Company
drew down an aggregate of $71.8 million from its 2020 $225.0
Million Credit Facility to refinance the existing debt on three LR2
product tankers, STI Nautilus, STI Guard, and STI Gallantry, all of
which were previously financed under the CSSC Lease Financing
arrangement. The Company repaid $81.7 million on the CSSC Lease
Financing and CSSC Scrubber Lease Financing arrangements, in
addition to a $1.6 million prepayment fee as part of these
transactions during the three months ended December 31, 2020.
The remaining availability of $2.2 million under
the 2020 $225.0 Million Credit Facility to partially finance the
purchase and installation of scrubbers on two LR2s was terminated
in December 2020. This facility has a final maturity of five years
from the closing date of the loan, bears interest at LIBOR plus a
margin, and is expected to be repaid in equal quarterly
installments of approximately $5.3 million per quarter, in
aggregate, with a balloon payment due at maturity.
(4) In February 2021, the Company drew down
$21.0 million on a term loan facility with a European financial
institution. The proceeds of this loan facility were used to
refinance the outstanding debt on an LR2 product tanker, STI
Madison, that was previously financed under our KEXIM Credit
Facility. The Company repaid $15.9 million on the KEXIM Credit
Facility in January 2021 upon its maturity. The loan facility has a
final maturity of December 2022, bears interest at LIBOR plus a
margin of 2.65% per annum, and is expected to be repaid in equal
quarterly installments of approximately $0.6 million, with a
balloon payment due upon maturity. The remaining terms and
conditions, including financial covenants, are similar to those set
forth in the Company's existing credit facilities.
(5) In December 2020, the Company drew down
$4.6 million from the upsized portion of the AVIC Lease Financing
arrangement to partially finance the purchase and installation of
scrubbers on three vessels, one MR and two LR2s, that are currently
part of this arrangement. The upsized portion of the lease
financing has a final maturity of three years after the first
drawdown, bears interest at LIBOR plus a margin of 4.20% per annum
and will be repaid in quarterly principal payments of approximately
$0.4 million, in aggregate, for all three vessels.
(6) In November 2020, the Company closed on the sale and
leaseback of two vessels, STI Galata and STI La Boca, to Taiping
& Sinopec Financial Leasing Co., Ltd. ("2020 TSFL Lease
Financing") for aggregate proceeds of $47.3 million. The Company
repaid the outstanding indebtedness of $29.3 million related to
these vessels on the 2017 Credit Facility as part of these
transactions.
Under the 2020 TSFL Lease Financing arrangement,
each vessel is subject to a seven year bareboat charter agreement.
The lease financings bear interest at LIBOR plus a margin of 3.2%
per annum and are scheduled to be repaid in equal quarterly
repayments of approximately $0.4 million per vessel. The lease
arrangement contains purchase options to re-acquire each of the
subject vessels beginning on the third anniversary date from the
delivery date of the respective vessel, with a purchase obligation
upon the expiration of each lease.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(7) In November and December 2020, the
Company closed on the sale and leaseback of four vessels, STI
Donald C Trauscht, STI Esles II, STI San Telmo, and STI Jardins
with SPDB Financial Leasing Co., Ltd for aggregate proceeds of
$96.5 million (the "2020 SPDB-FL Lease Financing"). The Company
repaid the outstanding indebtedness of $62.9 million related to
these vessels on the 2017 Credit Facility as part of these
transactions. In connection with these repayments, approximately
$5.0 million was released from restricted cash that was previously
held in a debt service reserve account under the terms and
conditions of the 2017 Credit Facility.
Under the 2020 SPDB-FL Lease Financing
arrangements, STI Donald C Trauscht and STI San Telmo, are subject
to seven-year bareboat charter agreements, and STI Esles II and STI
Jardins are subject to eight-year bareboat charter agreements. The
lease financings bear interest at LIBOR plus a margin and are
scheduled to be repaid in equal quarterly repayments of
approximately $0.4 million per vessel. Each agreement contains
purchase options to re-acquire each of the subject vessels
beginning on the third anniversary date from the delivery date of
the respective vessel, with a purchase obligation upon the
expiration of each lease.
This transaction is being accounted for as a
financing transaction under IFRS 9 as the transaction does not
qualify as a ‘sale’ under IFRS 15 given the Company’s right to
repurchase the asset during the lease period. Accordingly, no gain
or loss is recorded, and the Company will continue to recognize the
vessel as an asset and recognize a financial liability (i.e. debt)
for the consideration received (similar to the Company’s other sale
and leaseback transactions).
(8) In February 2021, the Company closed on
the sale and leaseback of two vessels, STI Memphis and STI Soho,
with AVIC International Leasing Co., Ltd. for aggregate proceeds of
$44.2 million (the "2021 AVIC Lease Financing"). The Company repaid
the outstanding indebtedness of $30.0 million related to these
vessels on the 2018 NIBC Credit Facility as part of these
transactions.
Under the 2021 AVIC Lease Financing, STI Memphis
and STI Soho, are subject to nine-year bareboat charter agreements.
The lease financings bear interest at LIBOR plus a margin of 3.45%
per annum and are scheduled to be repaid in equal quarterly
repayments of approximately $0.4 million per vessel. Each agreement
contains purchase options to re-acquire each of the subject vessels
beginning on the second anniversary date from the delivery date of
the respective vessel, with a purchase obligation upon the
expiration of each lease.
(9) In January 2021, the Company entered
into a distribution agreement with the Agent, under which the
Company may offer and sell, from time to time, up to an additional
$75.0 million aggregate principal amount Additional Notes. The
Additional Notes will have the same terms as (other than date of
issuance), form a single series of debt securities with and have
the same CUSIP number and be fungible with, the Initial Notes
immediately upon issuance. Sales of the Additional Notes may be
made over a period of time, and from time to time, through the
Agent, in transactions involving an offering of the Senior Notes
due 2025 into the existing trading market at prevailing market
prices. Since its inception, the Company has issued $7.6 million
aggregate principal amount of Additional Notes under the program,
resulting in $7.4 million in aggregate net proceeds, (net of
underwriters commissions and expenses).
(10) Activity in 2021 includes drawdowns to
partially finance the purchase and installation of scrubbers on
certain vessels in the amounts of: (i) $2.1 million under the ING
Credit Facility; (ii) $3.8 million under the BCFL Lease Financing
(LR2s); (iii) $5.8 million under the BCFL Lease Financing (MRs);
(iv) $1.9 million under the $116.0 Million Lease Financing; and (v)
$10.0 million under the China Huarong Lease Financing.
Set forth below are the estimated expected
future principal repayments on the Company's outstanding
indebtedness as of December 31, 2020, which includes principal
amounts due under the Company's secured credit facilities,
Convertible Notes due 2022, lease financing arrangements, Senior
Notes due 2025, and lease liabilities under IFRS 16 (which also
include actual payments made during the fourth quarter of 2020 and
through February 17, 2021):
| In millions of U.S.
dollars |
|
As of February 17, 2021 (1) |
|
Q1 2021 - principal payments made through February 17, 2021
(2) |
|
$ |
73.3 |
|
| Q1 2021 - remaining principal
payments (3) |
|
75.2 |
|
| Q2 2021 |
|
74.5 |
|
| Q3 2021 |
|
69.5 |
|
| Q4 2021 |
|
74.5 |
|
| Q1 2022 (4) |
|
87.4 |
|
| Q2 2022 (5) |
|
356.7 |
|
| Q3 2022 (6) |
|
82.2 |
|
| Q4 2022 (7) |
|
101.5 |
|
| 2023 and thereafter |
|
2,091.7 |
|
| |
|
$ |
3,086.5 |
|
(1) Amounts represent the principal
payments due on the Company’s outstanding indebtedness as of
December 31, 2020 and do not incorporate the impact of any of the
Company’s new financing initiatives which have not closed as of
that date.
(2) Repayments include (i) the maturity of the Company's
KEXIM Credit Facility for $15.9 million, which was refinanced in
February 2021 as part of the 2021 $21.0 Million Credit Facility,
and (ii) $30.0 million on the NIBC Credit Facility, which was
refinanced in February 2021 as part of the 2021 AVIC Lease
Financing.
(3) Repayments include the maturities of
two tranches on the ING Credit Facility for $28.8 million. The
Company has received a commitment to refinance this facility within
the first quarter of 2021.
(4) Repayments include the maturity of the
outstanding debt related to one vessel under the Citi/K-Sure Credit
Facility of $19.3 million.
(5) Repayments include the maturity of the
outstanding debt related to (i) three vessels under the Citi/K-Sure
Credit Facility of $57.6 million in aggregate, (ii) the Company's
Convertible Notes due 2022 of $151.2 million, and (iii) six vessels
under the ING Credit Facility for $76.7 million in aggregate.
(6) Repayments include the maturity of the
outstanding debt related to one vessel under the ABN AMRO/K-Sure
Credit Facility of $18.4 million.
(7) Repayments include the maturity of the
outstanding debt related to (i) one vessel under the ABN
AMRO/K-Sure Credit Facility of $17.2 million and (ii) one vessel
under the Credit Agricole Credit Facility of $16.5 million
Explanation of Variances on the Fourth
Quarter of 2020 Financial Results Compared to the Fourth Quarter of
2019
For the three months ended December 31, 2020,
the Company recorded a net loss of $76.3 million compared to net
income of $12.0 million for the three months ended December 31,
2019. 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 December 31, 2020 and 2019:
| |
|
|
For the three months ended December 31, |
| In thousands of
U.S. dollars |
|
2020 |
|
2019 |
|
|
Vessel revenue |
|
$ |
138,236 |
|
|
|
$ |
221,622 |
|
|
| |
Voyage expenses |
|
(241 |
) |
|
|
(2,483 |
) |
|
| |
TCE
revenue |
|
$ |
137,995 |
|
|
|
$ |
219,139 |
|
|
-
TCE revenue for the three months ended December 31, 2020 decreased
by $81.1 million to $138.0 million, from $219.1 million for the
three months ended December 31, 2019. Overall average TCE revenue
per day decreased to $11,608 per day during the three months ended
December 31, 2020, from $19,910 per day during the three months
ended December 31, 2019. Given the onset of the COVID-19 pandemic,
market fundamentals underlying TCE revenue during these periods
differed significantly.
-
TCE revenue for the three months ended December 31, 2020 reflected
the adverse market conditions brought on by the COVID-19 pandemic.
Demand for crude and refined petroleum products remained low during
this period as most countries throughout the world continued to
implement restrictive policies in an effort to control the spread
of the virus, particularly as a second wave of infections took
hold. These headwinds were exacerbated by the continued unwinding
of excess inventories that built up in the first half of 2020.
-
TCE revenue for the three months ended December 31, 2019 reflected
a favorable shift in supply and demand dynamics driven by the
January 1, 2020 implementation date of the International Maritime
Organization’s (“IMO”) low sulfur emissions standards. The
implementation of these standards impacted the trade flows of both
crude and refined petroleum products which, combined with favorable
supply and demand dynamics at the time, resulted in strengthening
spot market TCE rates across all of the Company’s operating
segments during the fourth quarter of 2019.
-
Vessel operating costs for the three months ended December 31, 2020
remained consistent, increasing slightly by $1.4 million to $86.8
million, from $85.4 million for the three months ended December 31,
2019. Vessel operating costs were impacted by a net increase of one
average vessel for the three months ended December 31, 2020 when
compared to the three months ended December 31, 2019. This net
increase was due to the delivery of four vessels that were
previously under construction (three MRs in the first quarter of
2020 and one MR in September 2020), offset by the redelivery of
three Handymax vessels upon the expiration of their bareboat
charters in the second and third quarters of 2020.Vessel operating
costs per day also remained consistent, increasing slightly to
$6,987 per day for the three months ended December 31, 2020 from
$6,928 per day for the three months ended December 31, 2019.
-
Depreciation expense - owned or sale leaseback vessels for the
three months ended December 31, 2020 increased by $3.5 million to
$49.9 million, from $46.5 million for the three months ended
December 31, 2019. The increase was due to the Company's drydock,
scrubber and ballast water treatment system installations that have
taken place over the preceding 12-month period. While the Company
has completed most of its scrubber and ballast water treatment
installations over the past two years, depreciation expense in
future periods is expected to increase, albeit at a lower rate, as
the Company continues the installation of ballast water treatment
systems and/or scrubbers on certain remaining vessels in 2021 and
beyond. The Company expects to depreciate the majority of the cost
of this equipment over each vessel's remaining useful life.
-
Depreciation expense - right of use assets for the three months
ended December 31, 2020 remained consistent, decreasing slightly by
$0.1 million to $12.6 million from $12.6 million for the three
months ended December 31, 2019. Depreciation expense - right of use
assets reflects the straight-line depreciation expense recorded
under IFRS 16 - Leases. Right of use asset depreciation expense was
impacted by the delivery of four vessels that were previously under
construction (three MRs in the first quarter of 2020 and one MR in
September 2020), offset by the redelivery of three Handymax vessels
upon the expiration of their bareboat charters in the second and
third quarters of 2020. The Company had four LR2s, 18 MRs, and four
Handymax vessels that were accounted for under IFRS 16 - Leases
during the three months ended December 31, 2020. The right of use
asset depreciation for these vessels is approximately $0.2 million
per MR and Handymax per month, and $0.3 million per LR2 per month.
The leases on the four Handymax vessels are scheduled to expire in
March 2021.
-
Impairment - At December 31, 2020, the Company reviewed the
carrying amount of its vessels to determine whether there was an
indication that these assets had suffered an impairment. As part of
this assessment, the Company determined that impairment indicators
existed as a result of the adverse market conditions brought on by
the COVID-19 pandemic. An indicator of impairment prompts the
Company to perform a calculation of the potentially impaired
vessel’s value in use in order to appropriately determine the
“higher of” its value in use and its fair value less costs to sell
(market value). The higher of the two values is then determined to
be the vessel’s recoverable amount.Under IFRS, impairment losses
are calculated as the excess of a vessel’s carrying amount over its
recoverable amount. Value in use is determined by discounting the
estimated future cash flows of each vessel to its present value
using a discount rate that reflects the risks specific to the
asset. At December 31, 2020, the Company’s value in use
calculations for certain of the MRs in its fleet were below their
carrying amounts, which resulted in an aggregate impairment charge
of $14.2 million. The recoverable amount of goodwill is tested in a
similar manner by estimating the future cash flows of the
reportable segments to which the goodwill is allocated. The
Company’s assessment of the carrying value of its goodwill that was
allocated to its LR1 reportable segment, which arose from its
acquisition of Navig8 Product Tankers Inc. in 2017, resulted in an
additional impairment charge of $2.6 million.
-
General and administrative expenses for the three months ended
December 31, 2020, decreased by $1.4 million to $14.3 million, from
$15.8 million for the three months ended December 31, 2019. This
decrease was due to an overall reduction in costs during the three
months ended December 31, 2020, including reductions in restricted
stock amortization and compensation expenses.
- Financial expenses for the three
months ended December 31, 2020 decreased by $11.4 million to $35.9
million, from $47.3 million for the three months ended December 31,
2019. The decrease was primarily driven by significant decreases in
LIBOR rates, which underpin all of the Company's variable rate
borrowings, and which have collapsed since the onset of the
COVID-19 pandemic.
Scorpio Tankers Inc. and
Subsidiaries Condensed Consolidated Statements of
Income or Loss(unaudited)
| |
|
For the three months ended December 31, |
|
For the year ended December 31, |
| In thousands of
U.S. dollars except per share and share data |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Vessel revenue |
$ |
138,236 |
|
|
$ |
221,622 |
|
|
$ |
915,892 |
|
|
$ |
704,325 |
|
| |
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
| |
Vessel operating costs |
(86,775 |
) |
|
(85,412 |
) |
|
(333,748 |
) |
|
(294,531 |
) |
| |
Voyage expenses |
(241 |
) |
|
(2,483 |
) |
|
(7,959 |
) |
|
(6,160 |
) |
| |
Charterhire |
— |
|
|
— |
|
|
— |
|
|
(4,399 |
) |
| |
Depreciation - owned or sale
leaseback vessels |
(49,948 |
) |
|
(46,477 |
) |
|
(194,268 |
) |
|
(180,052 |
) |
| |
Depreciation - right of use
assets |
(12,578 |
) |
|
(12,636 |
) |
|
(51,550 |
) |
|
(26,916 |
) |
| |
Impairment of vessels |
(14,207 |
) |
|
— |
|
|
(14,207 |
) |
|
— |
|
| |
Impairment of goodwill |
(2,639 |
) |
|
— |
|
|
(2,639 |
) |
|
— |
|
| |
General and administrative
expenses |
(14,318 |
) |
|
(15,758 |
) |
|
(66,187 |
) |
|
(62,295 |
) |
| |
Total operating expenses |
(180,706 |
) |
|
(162,766 |
) |
|
(670,558 |
) |
|
(574,353 |
) |
| Operating
income |
(42,470 |
) |
|
58,856 |
|
|
245,334 |
|
|
129,972 |
|
| Other
(expense) and income, net |
|
|
|
|
|
|
|
| |
Financial expenses |
(35,888 |
) |
|
(47,287 |
) |
|
(154,971 |
) |
|
(186,235 |
) |
| |
Gain on repurchase of
Convertible Notes |
— |
|
|
— |
|
|
1,013 |
|
|
— |
|
| |
Financial income |
181 |
|
|
756 |
|
|
1,249 |
|
|
8,182 |
|
| |
Other income and (expense),
net |
1,916 |
|
|
(283 |
) |
|
1,499 |
|
|
(409 |
) |
| |
Total other expense, net |
(33,791 |
) |
|
(46,814 |
) |
|
(151,210 |
) |
|
(178,462 |
) |
| Net (loss)
/ income |
$ |
(76,261 |
) |
|
$ |
12,042 |
|
|
$ |
94,124 |
|
|
$ |
(48,490 |
) |
| |
|
|
|
|
|
|
|
|
| (Loss) /
Earnings per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(1.41 |
) |
|
$ |
0.22 |
|
|
$ |
1.72 |
|
|
$ |
(0.97 |
) |
| |
Diluted |
$ |
(1.41 |
) |
|
$ |
0.21 |
|
|
$ |
1.67 |
|
|
$ |
(0.97 |
) |
| |
Basic weighted average shares
outstanding |
54,265,313 |
|
|
54,626,119 |
|
|
54,665,898 |
|
|
49,857,998 |
|
| |
Diluted weighted average
shares outstanding (1) |
54,265,313 |
|
|
56,780,849 |
|
|
56,392,311 |
|
|
49,857,998 |
|
(1) The computation of diluted loss per
share for the three months ended December 31, 2020 excludes the
effect of potentially dilutive unvested shares of restricted stock
and the Convertible Notes due 2022 because their effect would have
been anti-dilutive. The computation of diluted earnings per share
for the year ended December 31, 2020 includes the effect of
potentially dilutive unvested shares of restricted stock but
excludes the effect of the Convertible Notes due 2022 under the
if-converted method because their effect would have been
anti-dilutive.
The computation of diluted earnings per share
for the three months ended December 31, 2019 includes the effect of
potentially dilutive unvested shares of restricted stock but
excludes the effect of the Convertible Notes due 2022 under the
if-converted method because their effect would have been
anti-dilutive. The computation of diluted loss per share for the
year ended December 31, 2019 excludes the effect of potentially
dilutive unvested shares of restricted stock and the Convertible
Notes due 2022 because their effect would have been
anti-dilutive.
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(unaudited)
| |
As of |
| In thousands of U.S.
dollars |
December 31, 2020 |
|
December 31, 2019 |
| Assets |
|
|
|
| Current
assets |
|
|
|
|
Cash and cash equivalents |
$ |
187,511 |
|
|
$ |
202,303 |
|
| Accounts receivable |
58,217 |
|
|
78,174 |
|
| Prepaid expenses and other
current assets |
12,430 |
|
|
13,855 |
|
| Inventories |
9,261 |
|
|
8,646 |
|
| Total current
assets |
267,419 |
|
|
302,978 |
|
| Non-current
assets |
|
|
|
| Vessels and drydock |
4,002,888 |
|
|
4,008,158 |
|
| Right of use assets |
807,179 |
|
|
697,903 |
|
| Other assets |
66,945 |
|
|
131,139 |
|
| Goodwill |
8,900 |
|
|
11,539 |
|
| Restricted cash |
5,293 |
|
|
12,293 |
|
| Total non-current
assets |
4,891,205 |
|
|
4,861,032 |
|
| Total
assets |
$ |
5,158,624 |
|
|
$ |
5,164,010 |
|
| Current
liabilities |
|
|
|
| Current portion of long-term
debt |
$ |
172,705 |
|
|
$ |
235,482 |
|
| Lease liability - sale and
leaseback vessels |
131,736 |
|
|
122,229 |
|
| Lease liability - IFRS 16 |
56,678 |
|
|
63,946 |
|
| Accounts payable |
12,863 |
|
|
23,122 |
|
| Accrued expenses |
32,193 |
|
|
41,452 |
|
| Total current
liabilities |
406,175 |
|
|
486,231 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
971,172 |
|
|
999,268 |
|
| Lease liability - sale and
leaseback vessels |
1,139,713 |
|
|
1,195,494 |
|
| Lease liability - IFRS 16 |
575,796 |
|
|
506,028 |
|
| Total non-current
liabilities |
2,686,681 |
|
|
2,700,790 |
|
| Total
liabilities |
3,092,856 |
|
|
3,187,021 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and fully
paid-in share capital: |
|
|
|
| Share capital |
656 |
|
|
646 |
|
| Additional paid-in
capital |
2,850,206 |
|
|
2,842,446 |
|
| Treasury shares |
(480,172 |
) |
|
(467,057 |
) |
| Accumulated deficit |
(304,922 |
) |
|
(399,046 |
) |
| Total shareholders'
equity |
2,065,768 |
|
|
1,976,989 |
|
| Total liabilities and
shareholders' equity |
$ |
5,158,624 |
|
|
$ |
5,164,010 |
|
Scorpio Tankers Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash Flows (unaudited)
| |
For the year ended December 31, |
| In thousands of U.S.
dollars |
2020 |
|
2019 |
| Operating
activities |
|
|
|
|
Net income / (loss) |
$ |
94,124 |
|
|
$ |
(48,490 |
) |
| Depreciation - owned or
finance leased vessels |
194,268 |
|
|
180,052 |
|
| Depreciation - right of use
assets |
51,550 |
|
|
26,916 |
|
| Amortization of restricted
stock |
28,506 |
|
|
27,421 |
|
| Impairment of vessels and
goodwill |
16,846 |
|
|
— |
|
| Amortization of deferred
financing fees |
6,657 |
|
|
7,041 |
|
| Write-off of deferred
financing fees and unamortized discounts on sale and leaseback
facilities |
2,025 |
|
|
1,466 |
|
| Accretion of convertible
notes |
8,413 |
|
|
11,375 |
|
| Accretion of fair value
measurement on debt assumed in business combinations |
3,422 |
|
|
3,615 |
|
| Gain on repurchases of
convertible notes |
(1,013 |
) |
|
— |
|
| |
404,798 |
|
|
209,396 |
|
| Changes in assets and
liabilities: |
|
|
|
| Increase in inventories |
(615 |
) |
|
(346 |
) |
| Decrease / (increase) in
accounts receivable |
19,957 |
|
|
(8,458 |
) |
| Decrease in prepaid expenses
and other current assets |
1,424 |
|
|
1,816 |
|
| Decrease / (increase) in other
assets |
856 |
|
|
(7,177 |
) |
| (Decrease) / increase in
accounts payable |
(5,094 |
) |
|
4,019 |
|
| (Decrease) / increase in
accrued expenses |
(1,945 |
) |
|
10,262 |
|
| |
14,583 |
|
|
116 |
|
| Net cash inflow from
operating activities |
419,381 |
|
|
209,512 |
|
| Investing
activities |
|
|
|
| Acquisition of vessels and
payments for vessels under construction |
— |
|
|
(2,998 |
) |
| Drydock, scrubber, ballast
water treatment system and other vessel related payments (owned,
finance leased and bareboat-in vessels) |
(174,477 |
) |
|
(203,975 |
) |
| Net cash outflow from
investing activities |
(174,477 |
) |
|
(206,973 |
) |
| Financing
activities |
|
|
|
| Debt repayments |
(800,072 |
) |
|
(343,351 |
) |
| Issuance of debt |
705,390 |
|
|
108,589 |
|
| Debt issuance costs |
(13,523 |
) |
|
(5,744 |
) |
| Principal repayments on lease
liability - IFRS 16 |
(77,913 |
) |
|
(36,761 |
) |
| Decrease / (increase) in
restricted cash |
7,001 |
|
|
(9 |
) |
| Repurchase / repayment of
convertible notes |
(46,737 |
) |
|
(145,000 |
) |
| Gross proceeds from issuance
of common stock |
2,601 |
|
|
50,000 |
|
| Equity issuance costs |
(26 |
) |
|
(333 |
) |
| Dividends paid |
(23,302 |
) |
|
(21,278 |
) |
| Repurchase of common
stock |
(13,115 |
) |
|
(1 |
) |
| Net cash outflow from
financing activities |
(259,696 |
) |
|
(393,888 |
) |
| Decrease in cash and
cash equivalents |
(14,792 |
) |
|
(391,349 |
) |
| Cash and cash equivalents at
January 1, |
202,303 |
|
|
593,652 |
|
| Cash and cash
equivalents at December 31, |
$ |
187,511 |
|
|
$ |
202,303 |
|
Scorpio Tankers Inc. and
SubsidiariesOther operating data for the three
months and year ended December 31, 2020 and 2019
(unaudited)
| |
|
For the three months ended December 31, |
|
For the year ended December 31, |
| |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Adjusted EBITDA(1) (in
thousands of U.S. dollars except Fleet Data) |
|
$ |
45,190 |
|
|
$ |
124,399 |
|
|
$ |
538,003 |
|
|
$ |
363,952 |
|
| |
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
| TCE per day(2) |
|
$ |
11,608 |
|
|
$ |
19,910 |
|
|
$ |
19,655 |
|
|
$ |
16,682 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,987 |
|
|
$ |
6,928 |
|
|
$ |
6,734 |
|
|
$ |
6,563 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
15,995 |
|
|
$ |
24,987 |
|
|
$ |
26,786 |
|
|
$ |
20,254 |
|
| Vessel operating costs per
day(3) |
|
$ |
7,396 |
|
|
$ |
7,123 |
|
|
$ |
7,007 |
|
|
$ |
6,829 |
|
| Average number of vessels |
|
42.0 |
|
|
42.0 |
|
|
42.0 |
|
|
39.1 |
|
| |
|
|
|
|
|
|
|
|
| LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
11,739 |
|
|
$ |
17,648 |
|
|
$ |
21,579 |
|
|
$ |
15,846 |
|
| Vessel operating costs per
day(3) |
|
$ |
7,178 |
|
|
$ |
7,570 |
|
|
$ |
6,921 |
|
|
$ |
6,658 |
|
| Average number of vessels |
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
|
12.0 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
9,962 |
|
|
$ |
17,261 |
|
|
$ |
16,224 |
|
|
$ |
15,095 |
|
| Vessel operating costs per
day(3) |
|
$ |
6,658 |
|
|
$ |
6,505 |
|
|
$ |
6,520 |
|
|
$ |
6,312 |
|
| Average number of vessels |
|
63.0 |
|
|
59.0 |
|
|
62.0 |
|
|
51.0 |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day (2) |
|
$ |
7,769 |
|
|
$ |
19,294 |
|
|
$ |
14,835 |
|
|
$ |
14,575 |
|
| Vessel operating costs per
day(3) |
|
$ |
7,055 |
|
|
$ |
7,351 |
|
|
$ |
6,710 |
|
|
$ |
6,621 |
|
| Average number of vessels |
|
18.0 |
|
|
21.0 |
|
|
19.5 |
|
|
21.0 |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of vessels |
|
135.0 |
|
|
134.0 |
|
|
135.4 |
|
|
123.1 |
|
| |
|
|
|
|
|
|
|
|
| Drydock |
|
|
|
|
|
|
|
|
| Drydock, scrubber, ballast
water treatment system and other vessel related payments for owned,
sale leaseback and bareboat chartered-in vessels (in thousands of
U.S. dollars) |
|
$ |
21,863 |
|
|
$ |
75,406 |
|
|
$ |
174,477 |
|
|
$ |
203,975 |
|
|
(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 February 17,
2021
| |
Vessel
Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Scrubber |
|
| |
Owned, sale
leaseback and bareboat chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
1 |
STI Brixton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
2 |
STI Comandante |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
3 |
STI Pimlico |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
4 |
STI Hackney |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
5 |
STI Acton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
6 |
STI Fulham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
7 |
STI Camden |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
8 |
STI Battersea |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
9 |
STI Wembley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
10 |
STI Finchley |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
11 |
STI Clapham |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
12 |
STI Poplar |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
13 |
STI Hammersmith |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
14 |
STI Rotherhithe |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
|
|
15 |
STI Amber |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
16 |
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
17 |
STI Ruby |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
18 |
STI Garnet |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
19 |
STI Onyx |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
20 |
STI Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
21 |
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
22 |
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
23 |
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
24 |
STI Texas City |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
25 |
STI Meraux |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
26 |
STI San Antonio |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
27 |
STI Venere |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
28 |
STI Virtus |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
29 |
STI Aqua |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
30 |
STI Dama |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
31 |
STI Benicia |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
32 |
STI Regina |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
33 |
STI St. Charles |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
34 |
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
35 |
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
36 |
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
37 |
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
38 |
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
39 |
STI Memphis |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
40 |
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
41 |
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
42 |
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
43 |
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
44 |
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
45 |
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
46 |
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
47 |
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
48 |
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
49 |
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
50 |
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
51 |
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
52 |
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
53 |
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
54 |
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
55 |
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
56 |
STI San Telmo |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
57 |
STI Donald C Trauscht |
|
2017 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
58 |
STI Esles II |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
59 |
STI Jardins |
|
2018 |
|
49,990 |
|
|
1B |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
|
|
60 |
STI Magic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
61 |
STI Majestic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
62 |
STI Mystery |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
63 |
STI Marvel |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
64 |
STI Magnetic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
65 |
STI Millennia |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
66 |
STI Master |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
67 |
STI Mythic |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
68 |
STI Marshall |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
69 |
STI Modest |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
70 |
STI Maverick |
|
2019 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
71 |
STI Miracle |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
72 |
STI Maestro |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
73 |
STI Mighty |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
74 |
STI Maximus |
|
2020 |
|
50,000 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Yes |
|
|
75 |
STI Excel |
|
2015 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
76 |
STI Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
77 |
STI Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
78 |
STI Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
79 |
STI Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
80 |
STI Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
81 |
STI Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Not Yet Installed |
|
|
82 |
STI Express |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
83 |
STI Precision |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
84 |
STI Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
85 |
STI Pride |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
86 |
STI Providence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P (3) |
|
LR1 |
|
Yes |
|
|
87 |
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
88 |
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
89 |
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
90 |
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
91 |
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
92 |
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
93 |
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
94 |
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
95 |
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
96 |
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
97 |
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
98 |
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
99 |
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
100 |
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
101 |
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
102 |
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
103 |
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
104 |
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
105 |
STI Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
106 |
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
107 |
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
108 |
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
109 |
STI Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
110 |
STI Solace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
111 |
STI Stability |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
112 |
STI Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
113 |
STI Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Not Yet Installed |
|
|
114 |
STI Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
115 |
STI Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
116 |
STI Goal |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
117 |
STI Nautilus |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
118 |
STI Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
119 |
STI Guide |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
120 |
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
121 |
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
122 |
STI Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
123 |
STI Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
124 |
STI Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
125 |
STI Lobelia |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
126 |
STI Lotus |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
127 |
STI Lily |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
128 |
STI Lavender |
|
2019 |
|
110,000 |
|
|
— |
|
SLR2P (4) |
|
LR2 |
|
Yes |
|
|
129 |
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
130 |
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
131 |
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
132 |
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP (1) |
|
Handymax |
|
N/A |
(5 |
) |
|
133 |
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
|
134 |
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
|
135 |
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP (2) |
|
MR |
|
Not Yet Installed |
(6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned, sale leaseback
and bareboat chartered-in fleet DWT |
|
|
|
9,374,548 |
|
|
|
|
|
|
|
|
|
|
|
(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. (SCM). SHTP and SCM are related parties to the
Company. |
|
(2 |
) |
This vessel operates in or is expected to operate 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 or is expected to operate 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 |
) |
In March 2019, we entered into a new bareboat charter-in agreement
on a previously bareboat chartered-in vessel. The term of the
agreement is for two years at a bareboat rate of $6,300 per day.
The agreement is expected to expire on March 31, 2021. |
|
(6 |
) |
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 per vessel, 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 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 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 2019 and 2020 were as
follows:
|
Date paid |
Dividends per
common share |
|
March 2019 |
$0.100 |
|
June 2019 |
$0.100 |
|
September 2019 |
$0.100 |
|
December 2019 |
$0.100 |
|
March 2020 |
$0.100 |
|
June 2020 |
$0.100 |
|
September 2020 |
$0.100 |
|
December 2020 |
$0.100 |
On February 17, 2021, the Company's Board of
Directors declared a quarterly cash dividend of $0.10 per common
share, payable on or about March 15, 2021 to all shareholders of
record as of March 2, 2021 (the record date). As of
February 17, 2021, there were 58,093,147 common shares of the
Company outstanding.
$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 Senior
Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and
Convertible Notes due 2022, which were issued in May and July
2018.
-
Between July 1, 2020 and September 7, 2020, the Company repurchased
$52.3 million face value of its Convertible Notes due 2022 at an
average price of $894.12 per $1,000 principal amount, or $46.7
million.
- In September 2020, the Company
acquired an aggregate of 1,170,000 of its common shares at an
average price of $11.18 per share for a total of $13.1 million. The
repurchased shares are being held as treasury shares.
In September 2020, the Company's Board of
Directors authorized a new Securities Repurchase Program to
purchase up to an aggregate of $250 million of the Company's
securities. The aforementioned repurchases of common stock and
convertible notes were executed under the previous securities
repurchase program which has since been terminated. No securities
have been repurchased under the new program since its inception
through the date of this press release.
At the Market Offering
Program
In November 2019, the Company entered into an
“at the market” offering program (the "ATM Program") pursuant to
which it may sell up to $100 million of its common shares, par
value $0.01 per share. As part of the ATM Program, the Company
entered into an equity distribution agreement dated November 7,
2019 (the “Sales Agreement”), with BTIG, LLC, as sales agent (the
"Equity ATM Agent"). In accordance with the terms of the Sales
Agreement, the Company may offer and sell its common shares from
time to time through the Equity ATM Agent by means of ordinary
brokers’ transactions on the NYSE at market prices, in block
transactions, or as otherwise agreed upon by the Equity ATM Agent
and the Company.
In June 2020, the Company sold an aggregate of
137,067 of its common shares at an average price of $18.79 per
share for aggregate net proceeds of $2.6 million. No additional
sales have been made under this program and there is $97.4 million
of remaining availability under the ATM Program as of February 17,
2021.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns, finance leases or bareboat charters-in 135
product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and
18 Handymax tankers) with an average age of 5.2 years. 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 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 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 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, on a historical basis, is
reconciled above in the section entitled "Explanation of Variances
on the Fourth Quarter of 2020 Financial Results Compared to the
Fourth Quarter of 2019". The Company has not provided a
reconciliation of forward-looking TCE revenue because the most
directly comparable IFRS measure on a forward-looking basis is not
available to the Company without unreasonable effort.
Reconciliation of Net (Loss) / Income to Adjusted Net
(Loss) / Income
| |
|
|
For the three months ended December 31, 2020 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(76,261 |
) |
|
$ |
(1.41 |
) |
|
$ |
(1.41 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Loss on extinguishment of
debt |
|
2,788 |
|
|
0.05 |
|
|
0.05 |
|
|
| |
Impairment of vessels |
|
14,207 |
|
|
0.26 |
|
|
0.26 |
|
|
| |
Impairment of goodwill |
|
2,639 |
|
|
0.05 |
|
|
0.05 |
|
|
|
|
Adjusted net loss |
|
$ |
(56,627 |
) |
|
$ |
(1.04 |
) |
(1 |
) |
$ |
(1.04 |
) |
(1 |
) |
| |
|
|
For the three months ended December 31, 2019 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net income |
|
$ |
12,042 |
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
| |
Adjustment: |
|
|
|
|
|
|
|
| |
Deferred financing fees
write-off |
|
748 |
|
|
0.01 |
|
|
0.01 |
|
|
|
|
Adjusted net income |
|
$ |
12,790 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
(1 |
) |
| |
|
|
For the year ended December 31, 2020 |
|
|
| |
|
|
|
|
Per share |
|
Per share |
|
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
| |
Net income |
|
$ |
94,124 |
|
|
$ |
1.72 |
|
|
$ |
1.67 |
|
|
|
| |
Adjustments: |
|
|
|
|
|
|
| |
Loss on extinguishment of
debt |
|
4,056 |
|
|
0.07 |
|
|
0.07 |
|
|
|
| |
Gain on repurchase of
Convertible Notes |
|
(1,013 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
|
| |
Impairment of vessels |
|
14,207 |
|
|
0.26 |
|
|
0.25 |
|
|
|
| |
Impairment of goodwill |
|
2,639 |
|
|
0.05 |
|
|
0.05 |
|
|
|
|
|
Adjusted net income |
|
$ |
114,013 |
|
|
$ |
2.09 |
|
(1 |
) |
$ |
2.02 |
|
|
|
| |
|
|
For the year ended December 31, 2019 |
|
|
| |
|
|
|
|
Per share |
|
Per share |
|
|
| In thousands of
U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
|
|
|
Net loss |
|
$ |
(48,490 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.97 |
) |
|
|
| |
Adjustment: |
|
|
|
|
|
|
| |
Deferred financing fees
write-off |
|
1,466 |
|
|
0.03 |
|
|
0.03 |
|
|
|
| |
Adjusted net loss |
|
$ |
(47,024 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.94 |
) |
|
|
(1) Summation differences due to rounding
Reconciliation of Net (Loss) / Income to Adjusted
EBITDA
| |
|
|
For the three months ended December 31, |
|
For the year ended December 31, |
| In thousands of
U.S. dollars |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
Net (loss) / income |
|
$ |
(76,261 |
) |
|
$ |
12,042 |
|
|
$ |
94,124 |
|
|
$ |
(48,490 |
) |
| |
Financial expenses |
|
35,888 |
|
|
47,287 |
|
|
154,971 |
|
|
186,235 |
|
| |
Financial income |
|
(181 |
) |
|
(756 |
) |
|
(1,249 |
) |
|
(8,182 |
) |
| |
Depreciation - owned or
finance leased vessels |
|
49,948 |
|
|
46,477 |
|
|
194,268 |
|
|
180,052 |
|
| |
Depreciation - right of use assets |
|
12,578 |
|
|
12,636 |
|
|
51,550 |
|
|
26,916 |
|
| |
Impairment of vessels |
|
14,207 |
|
|
— |
|
|
14,207 |
|
|
— |
|
| |
Impairment of goodwill |
|
2,639 |
|
|
— |
|
|
2,639 |
|
|
— |
|
| |
Amortization of restricted
stock |
|
6,372 |
|
|
6,713 |
|
|
28,506 |
|
|
27,421 |
|
| |
Gain on repurchase of
Convertible Notes |
|
— |
|
|
— |
|
|
(1,013 |
) |
|
— |
|
| |
Adjusted EBITDA |
|
$ |
45,190 |
|
|
$ |
124,399 |
|
|
$ |
538,003 |
|
|
$ |
363,952 |
|
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, length and severity of the ongoing novel coronavirus
(COVID-19) outbreak, including its effect on demand for petroleum
products and the transportation thereof, 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 Tankers (NYSE:SBBA)
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