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Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2016 and Declaration of a Quarterly Dividend
MONACO — (Marketwired) — 11/14/16 — Scorpio Tankers Inc. (NYSE: STNG) (“Scorpio Tankers,” or the “Company”) today reported its results for the three and nine months ended September 30, 2016 and declaration of a quarterly dividend.
Results for the three months ended September 30, 2016 and 2015
For the three months ended September 30, 2016, the Company’s adjusted net loss (see Non-IFRS Measures section below) was $18.3 million, or $0.11 basic and diluted loss per share, which excludes from net loss (i) an aggregate write-off of $9.0 million of deferred financing fees and (ii) a $0.2 million unrealized gain on derivative financial instruments. The adjustments resulted in an aggregate reduction of the Company’s net loss by $8.8 million or $0.06 basic and diluted loss per share. For the three months ended September 30, 2016, the Company had a net loss of $27.1 million, or $0.17 basic and diluted loss per share.
For the three months ended September 30, 2015, the Company’s adjusted net income was $88.1 million (see non-IFRS Measures section below), or $0.53 basic and $0.46 diluted earnings per share, which excludes (i) a gain of $1.2 million resulting from the sale of the Company’s investment in Dorian LPG Ltd. (“Dorian”), (ii) a gain of $1.4 million resulting from the early termination of the contract on a time chartered-in vessel, (iii) a reserve of $1.4 million for a pool bunker supplier in bankruptcy, (iv) a $2.0 million write-off of deferred financing fees, (v) a loss on the sale of a vessel of $2.0 million, (vi) an unrealized loss on derivative financial instruments of $35,000 and (vii) a gain of $46,000 resulting from the repurchase of $1.5 million face value of the Company’s Convertible Senior Notes due 2019 (the “Convertible Notes”). The adjustments resulted in an aggregate increase of the Company’s net income by $2.9 million or $0.02 basic and diluted earnings per share. For the three months ended September 30, 2015, the Company had net income of $85.2 million, or $0.51 basic and $0.44 diluted earnings per share.
Results for the nine months ended September 30, 2016 and 2015
For the nine months ended September 30, 2016, the Company’s adjusted net income (see Non-IFRS Measures section below) was $18.7 million, or $0.12 basic and $0.11 diluted earnings per share, which excludes from net income (i) a $2.1 million loss on sales of vessels, (ii) an aggregate write-off of $14.5 million of deferred financing fees, (iii) a $1.6 million unrealized gain on derivative financial instruments and (iv) a $1.0 million aggregate gain recorded on the repurchase of $10.0 million aggregate principal amount of the Company’s Convertible Notes. The adjustments resulted in an aggregate increase of net income by $14.0 million or $0.09 basic and $0.08 diluted earnings per share. For the nine months ended September 30, 2016, the Company had net income of $4.8 million, or $0.03 basic and diluted earnings per share.
For the nine months ended September 30, 2015, the Company’s adjusted net income was $184.9 million (see non-IFRS Measures section below), or $1.15 basic and $1.01 diluted earnings per share, which excludes (i) a gain of $1.2 million resulting from the sale of the Company’s investment in Dorian, (ii) a gain of $1.4 million resulting from the early termination of a contract on a time chartered-in vessel, (iii) a reserve of $1.4 million for a pool bunker supplier in bankruptcy, (iv) a $2.0 million write-off of deferred financing fees, (v) a net loss of $35,000 related to the gains and losses on the sales of four vessels, (vi) an unrealized loss on derivative financial instruments of $0.6 million and (vii) a gain of $46,000 resulting from the repurchase of $1.5 million face value of the Company’s Convertible Notes. The adjustments resulted in an aggregate increase of the Company’s net income by $1.4 million or $0.01 basic and $0.00 diluted loss per share. For the nine months ended September 30, 2015, the Company had net income of $183.5 million, or $1.14 basic and $1.01 diluted earnings per share.
Declaration of Dividend
On November 10, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on or about December 22, 2016 to all shareholders as of November 25, 2016 (the record date). As of November 11, 2016, there were 174,629,755 shares outstanding.
Diluted Weighted Number of Shares
Diluted earnings per share is determined using the if-converted method. Under this method, the Company assumes that the Convertible Notes (which were issued in June 2014) are converted into common shares at the beginning of each period and the interest and non-cash amortization expense associated with these notes of $5.4 million and $16.2 million during the three and nine months ended September 30, 2016, respectively, are not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.
For the three and nine months ended September 30, 2016, the Company’s basic weighted average number of shares were 160,844,168 and 160,902,344, respectively. The weighted average number of shares, both diluted and under the if-converted method, were anti-dilutive for the three months ended September 30, 2016 as the Company incurred a net loss. The Company’s diluted weighted average number of shares for the nine months ended September 30, 2016 was 166,839,648 which excludes the impact of the Convertible Notes since the if-converted method was anti-dilutive. As of the date hereof, the Convertible Notes are not eligible for conversion.
Summary of Recent and Third Quarter Significant Events
TCE Revenues
- Below is a summary of the average daily TCE revenue and duration for voyages fixed thus far in the fourth quarter of 2016 as of the date hereof:
- For the LR2s in the pool: approximately $13,000 per day for 60% of the days
- For the LR1 in the pool: approximately $14,000 per day for 50% of the days
- For the MRs in the pool: approximately $10,500 per day for 50% of the days
- For the Handymaxes in the pool: approximately $7,000 per day for 50% of the days
- Below is a summary of the average daily TCE revenue earned during the third quarter of 2016:
- For the LR2s in the pool: $18,793 per revenue day
- For the LR1 in the pool: $10,547 per revenue day
- For the MRs in the pool: $12,254 per revenue day
- For the Handymaxes in the pool: $9,450 per revenue day
Dividend Payment
In September 2016, the Company paid a quarterly cash dividend on the Company’s common stock of $0.125 per share.
Management Agreements
In September 2016, the Company entered into an agreement to amend its Administrative Services Agreement with Scorpio Services Holding Limited (“SSH”) and its Master Agreement with Scorpio Commercial Management (“SCM”) and Scorpio Ship Management (“SSM”). Under the terms of the amendments, among other things, (i) the fee of 1% payable to SSH upon any future vessel sale or purchase will be eliminated; and (ii) the fees due for a termination of the commercial and technical management arrangements in the event of the sale of one or more vessels, provided it does not amount to a change of control of the Company, have been reduced from two years of management fees to a three month notice period and three months of management fees payable to SCM and SSM. There was no consideration payable by the Company for these amendments. The effective date of these amendments was September 29, 2016.
The independent members of the Company’s Board of Directors unanimously approved the amendments to the Administrative Services Agreement and Master Agreement described in the preceding paragraph. SSH, SCM and SSM are entities related to the Company.
Debt refinancings and agreements
During the third quarter of 2016, the Company refinanced the aggregate outstanding indebtedness of $396.8 million under its 2013 Credit Facility and Newbuilding Credit Facility. As part of these transactions, the Company drew down an aggregate of $418.8 million under its NIBC Credit Facility, 2016 Credit Facility and DVB Credit Facility. Furthermore, the Company amended certain financial covenants under its K-Sure, KEXIM and 2011 Credit Facilities to make them similar to the financial covenants set forth under these new credit facilities. The Company also received a commitment for a new credit facility in November 2016. These facilities are summarized below.
2016 Credit Facility
In August 2016, the Company executed a loan facility with ABN AMRO Bank N.V, Nordea Bank Finland plc, acting through its New York branch, and Skandinaviska Enskilda Banken AB. The loan facility was fully drawn in September 2016, and the aggregate proceeds of $288.0 million were used to refinance the existing indebtedness on 16 MR product tankers.
The loan facility consists of a term loan of $192.0 million and a revolving credit facility of $96.0 million. Repayments on the term loan facility will be made in equal, consecutive quarterly installments of $6.8 million through September 2018 and $6.0 million for each quarter thereafter with a final balloon payment due at the maturity date of September 2021. All amounts borrowed under the revolving credit facility are due at the maturity date of September 2021. The facility bears interest at LIBOR plus a margin of 2.50% per annum.
This facility includes financial covenants that require the Company to maintain:
- Minimum liquidity of not less than the greater of (a) $25.0 million or (b) $250,000 per time chartered-in vessel plus $500,000 per owned vessel.
- Minimum consolidated tangible net worth of not less than $1.0 billion plus:
- 25% of cumulative, positive consolidated net income for each quarter commencing on or after January 1, 2016; and
- 50% of the net proceeds of any new equity issues on or after January 1, 2016.
- The ratio of net debt to total capitalization no greater than 0.60 to 1.00.
- The ratio of EBITDA to net cash interest expense greater than 2.50 to 1.00, calculated on a trailing four quarter basis.
- The aggregate of the fair market value of the vessels provided as collateral under the facility shall at all times be no less than 140% of the then aggregate outstanding principal amount of the loans under the credit facility.
The remaining terms and conditions are similar to those in the Company’s existing credit facilities.
NIBC Credit Facility
In June 2016, the Company executed a term loan facility with NIBC Bank N.V. This facility was fully drawn in July 2016, and the proceeds of $40.8 million were used to refinance the existing indebtedness on two MR product tankers. The facility will be repaid in eight quarterly installments of $1.0 million, followed by 12 quarterly installments of $0.8 million, and the remainder is due on maturity, which is June 2021. The facility bears interest at LIBOR plus a margin of 2.50% per annum. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company’s 2016 Credit Facility.
DVB Credit Facility
In September 2016, the Company executed a loan facility with DVB Bank SE. The loan facility was fully drawn in September 2016, and the aggregate proceeds of $90.0 million were used to refinance the existing indebtedness on four MR product tankers. The facility will be repaid in equal, quarterly principal repayments of $1.6 million, has a final maturity of August 2017 and bears interest at LIBOR plus a margin of 1.60% per annum. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company’s 2016 Credit Facility.
HSH Credit Facility
In November 2016, the Company received a commitment from HSH Nordbank AG for a loan facility of up to $34 million. The loan facility is expected to be used to refinance the existing indebtedness on two MR product tankers, has a final maturity of five years from the first drawdown date, and bears interest at LIBOR plus a margin of 2.50% per annum. The availability is expected to be used to finance up to 60% of the fair market value of the respective vessels. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company’s 2016 Credit Facility. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.
$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 currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase its securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any of its securities.
Since July 1, 2016 through the date of this press release, the Company has repurchased an aggregate of 657,154 of its common shares at an average price of $4.26 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 common shares issued and outstanding as of November 11, 2016.
Time Charter-in Update
In October 2016, the Company time chartered-in a 2006 built MR product tanker for one year at $13,500 per day. The Company also has an option to extend the charter for an additional year at $15,000 per day.
In September 2016, the Company time chartered-in two 2011 built MR product tankers, each for two years at $15,250 per day. The Company also has an option to extend each charter for an additional year at $16,000 per day.
In July 2016, the Company time chartered-in a 2013 built MR product tanker for one year at $15,800 per day. The Company also has an option to extend the charter for an additional year at $17,000 per day.
In July 2016, the Company extended the time charter-in agreement for an LR2 product tanker that is currently time chartered-in for an additional six months at $18,500 per day effective September 2016. The Company also has an option to extend the charter for an additional six months at $20,550 per day.
Fleet update
In July 2016, one of the Company’s Handymax tankers, STI Brixton, was arrested in connection with alleged damage of underwater equipment at a port. Any costs incurred to repair the alleged damage to the equipment are expected to be covered by insurance. This vessel was offhire for approximately 32 days as a result of this incident.
Conference Call
The Company will have a conference call on November 14, 2016 at 10:30 AM Eastern Standard Time and 4:30 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-877-857-6173 (U.S.) or +1-719-325-4870 (International). The conference participant passcode is 1819898. 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://www.webcaster4.com/Webcast/Page/610/18229
Current Liquidity
As of November 11, 2016, the Company had $119.4 million in cash.
Debt
Set forth below is a summary of the Company’s outstanding indebtedness as of the dates presented:
--------------- ---------------
Outstanding as Outstanding as
of June 30, Drawdowns and of September
In millions of U.S. dollars 2016 repayments, net 30, 2016
----------------------------------------------
2011 Credit Facility $ 97.0 $ (2.0) $ 95.0
Newbuilding Credit Facility
(1) 68.8 (68.8) -
2013 Credit Facility (2) 328.0 (328.0) -
K-Sure Credit Facility (3) 348.3 (30.9) 317.4
KEXIM Credit Facility 383.4 (16.8) 366.6
ING Credit Facility 128.7 (2.2) 126.5
ABN AMRO Credit Facility 135.0 (2.3) 132.7
BNP Paribas Credit Facility 33.4 (0.6) 32.8
Credit Suisse Credit Facility - - -
Scotiabank Credit Facility 33.3 (0.6) 32.7
NIBC Credit Facility (4) - 40.8 40.8
2016 Credit Facility (5) 288.0 288.0
DVB Credit Facility (6) 90.0 90.0
2020 senior unsecured notes 53.8 - 53.8
2017 senior unsecured notes 51.8 - 51.8
Convertible Notes 348.5 - 348.5
----------------------------------------------
$ 2,010.0$ (33.4)$ 1,976.6
==============================================
-------------- ---------------
Outstanding as Availability as
Drawdowns and of November of November 11,
In millions of U.S. dollars repayments, net 11, 2016 2016
------------------------------ ---------------
2011 Credit Facility $ - $ 95.0 $ -
Newbuilding Credit Facility
(1) - - -
2013 Credit Facility (2) - - -
K-Sure Credit Facility (3) - 317.4 -
KEXIM Credit Facility - 366.6 -
ING Credit Facility (1.1) 125.4 -
ABN AMRO Credit Facility (1.8) 130.9 -
BNP Paribas Credit Facility - 32.8 -
Credit Suisse Credit Facility - - 61.2
Scotiabank Credit Facility - 32.7 -
NIBC Credit Facility (4) (1.0) 39.8 -
2016 Credit Facility (5) - 288.0 -
DVB Credit Facility (6) - 90.0 -
2020 senior unsecured notes - 53.8 -
2017 senior unsecured notes - 51.8 -
Convertible Notes - 348.5 -
------------------------------ ---------------
$ (3.9) $ 1,972.7 $ 61.2
============================== ===============
(1) Activity for the Newbuilding Credit Facility includes the aggregate
repayment of $68.8 million as part of the refinancing of the remaining
outstanding borrowings for STI Amber, STI Topaz, STI Ruby and STI
Garnet.
(2) Activity for the 2013 Credit Facility includes the following repayments
in connection with the refinancing of all outstanding borrowings
thereunder: (i) an aggregate of $36.9 million related to STI Fontvieille
and STI Ville, which were refinanced in July 2016 and (ii) an aggregate
of $291.1 million related to STI Opera, STI Texas City, STI Meraux, STI
San Antonio, STI Virtus, STI Venere, STI Aqua, STI Dama, STI Benicia,
STI Regina, STI St. Charles, STI Yorkville, STI Wembley, STI Alexis, STI
Milwaukee, and STI Seneca, which were refinanced in September 2016.
(3) Activity for the K-Sure Credit Facility includes an unscheduled
principal repayment of $16.0 million and a scheduled principal repayment
of $14.9 million that were each made in July 2016.
(4) In June 2016, the Company executed a loan facility with NIBC Bank N.V.
This facility was fully drawn in July 2016, and the proceeds of $40.8
million were used to refinance the existing indebtedness on STI Ville
and STI Fontvieille.
(5) In August 2016, the Company executed a loan facility with ABN AMRO Bank
N.V, Nordea Bank Finland plc, acting through its New York branch, and
Skandinaviska Enskilda Banken AB. The loan facility was fully drawn in
September 2016, and the aggregate proceeds of $288.0 million were used
to refinance the existing indebtedness on STI Amber, STI Topaz, STI
Ruby, STI Garnet, STI Opera, STI Texas City, STI Meraux, STI San
Antonio, STI Virtus, STI Venere, STI Aqua, STI Dama, STI Benicia, STI
Regina, STI St. Charles, and STI Yorkville.
(6) In September 2016, the Company executed a loan facility with DVB Bank
SE. The loan facility was fully drawn in September 2016, and the
aggregate proceeds of $90.0 million were used to refinance the existing
indebtedness on STI Alexis, STI Milwaukee, STI Seneca, and STI Wembley.
Newbuilding Program
The Company currently has ten newbuilding vessel orders (eight MRs and two LR2s) with Hyundai Mipo Dockyard Co., Ltd. (“HMD”) and Sungdong Shipbuilding and Marine Engineering Co., Ltd. (“SSME”), which the Company refers to as its Newbuilding Program.
During the third quarter of 2016, the Company made installment payments of $7.2 million relating to vessels under its Newbuilding Program.
Set forth below are the installment payments that have been made and are expected to be made in the fourth quarter of 2016 and future installment payments *:
In millions of U.S.
dollars
--------------------
Q4 2016 - installment payments made to date $ 5.5
Q4 2016 - remaining installment payments 34.9
Q1 2017 63.5
Q2 2017 28.7
Q3 2017 68.2
Q4 2017 50.5
Q1 2018 21.6
--------------------
Total $ 272.9
====================
*These are estimates only and are subject to change as construction progresses.
Explanation of Variances on the Third Quarter of 2016 Financial Results Compared to the Third Quarter of 2015
For the three months ended September 30, 2016, the Company recorded a net loss of $27.1 million compared to net income of $85.3 million for the three months ended September 30, 2015. The following were the significant changes between the two periods:
- Time charter equivalent, or TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended September 30, 2016 and 2015:
For the three months ended
September 30,
-----------------------------------
In thousands of U.S. dollars 2016 2015
----------------- -----------------
Vessel revenue $ 114,336$ 228,142
Voyage expenses (330) (933)
----------------- -----------------
TCE revenue $ 114,006$ 227,209
================= =================
- TCE revenue decreased $113.2 million to $114.0 million from $227.2 million for the three months ended September 30, 2016 and 2015, respectively. This decrease was driven by a decrease in time charter equivalent revenue per day to $13,737 per day from $26,777 per day for the three months ended September 30, 2016 and 2015, respectively (see the breakdown of daily TCE below). TCE revenue per day decreased across all of our operating segments as low refining margins, high inventory levels and a lack of arbitrage opportunities have resulted in reduced global product tanker demand.
- Vessel operating costs increased $0.9 million to $45.9 million from $45.0 million for the three months ended September 30, 2016 and 2015, respectively. Overall vessel operating costs per day increased slightly to $6,482 per day from $6,279 per day for the three months ended September 30, 2016 and 2015, respectively (see the breakdown of daily vessel operating costs below).
- Charterhire expense decreased $3.0 million to $21.0 million from $24.0 million for the three months ended September 30, 2016 and 2015, respectively. This decrease was primarily driven by a decrease in the Company’s time chartered-in fleet to an average of 13.3 vessels from 16.0 vessels for the three months ended September 30, 2016 and 2015, respectively.
- Depreciation expense increased $1.2 million to $30.7 million from $29.5 million for the three months ended September 30, 2016 and 2015, respectively. This increase was primarily driven by the mix of the Company’s vessels as the average number of owned LR2s (which have a higher depreciation expense than MRs) increased to 21.0 from 17.3 while the average number of owned MRs decreased to 42.0 from 45.4 for the three months ended September 30, 2016 and 2015, respectively.
- General and administrative expenses decreased $5.9 million to $12.5 million from $18.4 million for the three months ended September 30, 2016 and 2015, respectively. This decrease was primarily driven by reductions in compensation expense (which includes a reduction in restricted stock amortization).
- Financial expenses increased $5.7 million to $31.2 million from $25.5 million for the three months ended September 30, 2016 and 2015, respectively. This increase was primarily the result of an aggregate write-off of $9.0 million of deferred financing fees as a result of the debt refinancings described above. This increase was partially offset by an increase in the amount of interest capitalized of $0.7 million and a decrease in interest expense as average debt outstanding decreased to $1.9 billion from $2.0 billion for the three months ended September 30, 2016 and 2015, respectively.
- Unrealized gains and losses on derivative financial instruments relate to the change in the fair value of the profit or loss agreement on one of the Company’s time chartered-in vessels with a third party who neither owns nor operates the vessel.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(unaudited)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- ---------------------------
In thousands of
U.S. dollars
except per share
and share data 2016 2015 2016 2015
------------- ------------- ------------- -------------
Revenue
Vessel revenue $ 114,336$ 228,142$ 416,678$ 577,312
Operating expenses
Vessel operating
costs (45,915) (45,017) (140,187) (123,639)
Voyage expenses (330) (933) (1,158) (4,139)
Charterhire (21,011) (24,014) (55,341) (78,660)
Depreciation (30,686) (29,525) (90,775) (76,483)
General and
administrative
expenses (12,491) (18,433) (42,593) (47,586)
Loss on sales of
vessels - (2,054) (2,078) (35)
Gain on sale of
Dorian shares - 1,179 - 1,179
------------- ------------- ------------- -------------
Total operating
expenses (110,433) (118,797) (332,132) (329,363)
------------- ------------- ------------- -------------
Operating income 3,903 109,345 84,546 247,949
------------- ------------- ------------- -------------
Other (expense) and
income, net
Financial expenses (31,150) (25,549) (82,381) (65,447)
Realized gain on
derivative
financial
instruments - - - 55
Unrealized gain /
(loss) on
derivative
financial
instruments 169 (35) 1,600 (577)
Financial income 59 48 1,163 126
Other income
(expenses), net (96) 1,442 (166) 1,428
------------- ------------- ------------- -------------
Total other
expense, net (31,018) (24,094) (79,784) (64,415)
------------- ------------- ------------- -------------
Net (loss) / income $ (27,115)$ 85,251$ 4,762$ 183,534
============= ============= ============= =============
Earnings per share
Basic $ (0.17)$ 0.51$ 0.03$ 1.14
Diluted $ (0.17)$ 0.44$ 0.03$ 1.01
Basic weighted
average shares
outstanding 160,844,168 167,237,928 160,902,344 160,637,016
Diluted weighted
average shares
outstanding (1) 160,844,168 205,323,322 166,839,648 198,110,118
(1) Diluted weighted average shares outstanding, assuming conversion of the Company’s Convertible Notes, were 198,219,733 and 198,992,474 for the three and nine months ended September 30, 2016, respectively. Diluted weighted average shares outstanding, assuming conversion of the Company’s Convertible Notes, were 198,219,733 and 198,992,474 for the three and nine months ended September 30, 2016, respectively. Diluted earnings per share under the if-converted method was anti-dilutive for both of these periods.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
As of
-------------------------------------------
In thousands of U.S. dollars September 30, 2016 December 31, 2015
--------------------- ---------------------
Assets
Current assets
Cash and cash equivalents $ 138,992 $ 200,970
Accounts receivable 48,498 69,017
Prepaid expenses and other
current assets 11,021 3,585
Derivative financial instruments 345 -
Inventories 5,905 6,575
--------------------- ---------------------
Total current assets 204,761 280,147
--------------------- ---------------------
Non-current assets
Vessels and drydock 2,943,939 3,087,753
Vessels under construction 123,238 132,218
Other assets 20,892 23,337
--------------------- ---------------------
Total non-current assets 3,088,069 3,243,308
--------------------- ---------------------
Total assets $ 3,292,830 $ 3,523,455
===================== =====================
Current liabilities
Current portion of long-term
debt $ 305,260 $ 124,503
Finance lease liability - 53,372
Accounts payable 12,525 25,683
Accrued expenses 19,415 32,643
Derivative financial instruments - 1,175
--------------------- ---------------------
Total current liabilities 337,200 237,376
--------------------- ---------------------
Non-current liabilities
Long-term debt 1,596,067 1,872,114
Derivative financial instruments - 80
--------------------- ---------------------
Total non-current liabilities 1,596,067 1,872,194
--------------------- ---------------------
Total liabilities 1,933,267 2,109,570
--------------------- ---------------------
Shareholders' equity
Issued, authorized and fully
paid-in share capital:
Share capital 2,247 2,224
Additional paid-in capital 1,751,806 1,729,314
Treasury shares (443,816) (427,311)
Retained earnings 49,326 109,658
--------------------- ---------------------
Total shareholders' equity 1,359,563 1,413,885
--------------------- ---------------------
Total liabilities and
shareholders' equity $ 3,292,830 $ 3,523,455
===================== =====================
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
For the nine months ended September
30,
---------------------------------------
In thousands of U.S. dollars 2016 2015
------------------- -------------------
Operating activities
Net income $ 4,762 $ 183,535
Gain on sale of Dorian shares - (1,179)
Loss / (gain) on sales of vessels 2,078 (2,016)
Write down of vessels held for sale - 2,054
Depreciation 90,775 76,483
Amortization of restricted stock 23,076 24,793
Amortization of deferred financing
fees 25,398 12,806
Unrealized (gain)/loss on derivative
financial instruments (1,600) 577
Amortization of acquired time
charter contracts 65 447
Accretion of Convertible Notes 8,650 8,284
Gain on repurchase of Convertible
Notes (994) (46)
------------------- -------------------
152,210 305,738
------------------- -------------------
Changes in assets and liabilities:
Decrease / (increase) in inventories 781 (2,051)
Decrease / (increase) in accounts
receivable 20,519 (8,289)
Increase in prepaid expenses and
other current assets (7,500) (4,842)
Decrease / (increase) in other
assets 2,078 (9,247)
Increase in accounts payable 119 5,909
Decrease in accrued expenses (12,868) (1,134)
Interest rate swap termination
payment - (128)
------------------- -------------------
3,129 (19,782)
------------------- -------------------
Net cash inflow from operating
activities 155,339 285,956
------------------- -------------------
Investing activities
Acquisition of vessels and payments
for vessels under construction (111,785) (858,575)
Proceeds from disposal of vessels 158,175 72,880
Proceeds from sale of Dorian shares - 142,435
Deposit returned for vessel
purchases - (31,277)
------------------- -------------------
Net cash inflow / (outflow) from
investing activities 46,390 (674,537)
------------------- -------------------
Financing activities
Debt repayments (728,922) (189,790)
Issuance of debt 565,028 608,800
Debt issuance costs (9,797) (7,916)
Repayment of Convertible Notes (8,393) (1,632)
Gross proceeds from issuance of
common stock - 159,747
Equity issuance costs (24) (7,489)
Dividends paid (65,094) (64,894)
Repurchase of common stock (16,505) (51,348)
------------------- -------------------
Net cash (outflow) / inflow from
financing activities (263,707) 445,478
------------------- -------------------
(Decrease) / increase in cash and
cash equivalents (61,978) 56,897
Cash and cash equivalents at January
1, 200,970 116,143
------------------- -------------------
Cash and cash equivalents at
September 30, $ 138,992 $ 173,040
=================== ===================
Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three and nine months ended September 30, 2016 and 2015
(unaudited)
For the three months For the nine months
ended September 30, ended September 30,
--------------------- ---------------------
2016 2015 2016 2015
---------- ---------- ---------- ----------
Adjusted EBITDA(1) (in thousands
of U.S. dollars) $ 42,081$ 150,839$ 200,309$ 349,563
Average Daily Results
Time charter equivalent per
day(2) $ 13,737$ 26,777$ 16,932$ 23,910
Vessel operating costs per
day(3) $ 6,482$ 6,279$ 6,560$ 6,440
Aframax/LR2
TCE per revenue day (2) $ 19,142$ 38,848$ 22,274$ 32,185
Vessel operating costs per
day(3) $ 6,652$ 6,441$ 6,671$ 6,639
Average number of owned vessels 21.0 17.3 20.1 13.2
Average number of time
chartered-in vessels 2.0 3.4 2.0 4.6
Panamax/LR1
TCE per revenue day (2) $ 10,547$ 20,883$ 18,177$ 21,884
Vessel operating costs per
day(3) - - - $ 8,676
Average number of owned vessels - - - 0.9
Average number of time
chartered-in vessels 1.0 3.8 0.9 4.4
MR
TCE per revenue day (2) $ 12,539$ 24,655$ 15,907$ 22,619
Vessel operating costs per
day(3) $ 6,420$ 6,213$ 6,569$ 6,317
Average number of owned vessels 42.0 45.4 43.9 41.1
Average number of time
chartered-in vessels 5.3 3.9 4.4 3.5
Handymax
TCE per revenue day (2) $ 10,274$ 20,319$ 13,130$ 20,038
Vessel operating costs per
day(3) $ 6,424$ 6,236$ 6,365$ 6,470
Average number of owned vessels 14.0 15.0 14.0 15.0
Average number of time
chartered-in vessels 5.0 5.0 4.4 6.0
Fleet data
Average number of owned vessels 77.0 77.8 78.0 70.2
Average number of time
chartered-in vessels 13.3 16.0 11.7 18.5
(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 less the number of days the
vessel is off-hire for drydock and repairs.
(3) Vessel operating costs per day represent vessel operating costs
excluding non-recurring expenses (for example insurance deductible
expenses for repairs) divided by the number of days the vessel is owned
during the period.
Fleet list as of November 11, 2016
Year Ice
Vessel Name Built DWT class Employment Vessel type
---------------- --------- --------- ----- ----------------- -----------
Owned vessels
1 STI Brixton 2014 38,734 1A SHTP (1) Handymax
2 STI Comandante 2014 38,734 1A SHTP (1) Handymax
3 STI Pimlico 2014 38,734 1A Time Charter (5) Handymax
4 STI Hackney 2014 38,734 1A SHTP (1) Handymax
5 STI Acton 2014 38,734 1A SHTP (1) Handymax
6 STI Fulham 2014 38,734 1A SHTP (1) Handymax
7 STI Camden 2014 38,734 1A SHTP (1) Handymax
8 STI Battersea 2014 38,734 1A SHTP (1) Handymax
9 STI Wembley 2014 38,734 1A SHTP (1) Handymax
10 STI Finchley 2014 38,734 1A SHTP (1) Handymax
11 STI Clapham 2014 38,734 1A SHTP (1) Handymax
12 STI Poplar 2014 38,734 1A Time Charter (5) Handymax
13 STI Hammersmith 2015 38,734 1A SHTP (1) Handymax
14 STI Rotherhithe 2015 38,734 1A SHTP (1) Handymax
15 STI Amber 2012 49,990 - SMRP(2) MR
16 STI Topaz 2012 49,990 - SMRP(2) MR
17 STI Ruby 2012 49,990 - SMRP(2) MR
18 STI Garnet 2012 49,990 - SMRP(2) MR
19 STI Onyx 2012 49,990 - SMRP(2) MR
20 STI Sapphire 2013 49,990 - SMRP(2) MR
21 STI Emerald 2013 49,990 - SMRP(2) MR
22 STI Beryl 2013 49,990 - SMRP(2) MR
23 STI Le Rocher 2013 49,990 - SMRP(2) MR
24 STI Larvotto 2013 49,990 - SMRP(2) MR
25 STI Fontvieille 2013 49,990 - SMRP(2) MR
26 STI Ville 2013 49,990 - SMRP(2) MR
27 STI Duchessa 2014 49,990 - SMRP(2) MR
28 STI Opera 2014 49,990 - SMRP(2) MR
29 STI Texas City 2014 49,990 - SMRP(2) MR
30 STI Meraux 2014 49,990 - SMRP(2) MR
31 STI San Antonio 2014 49,990 - SMRP(2) MR
32 STI Venere 2014 49,990 - SMRP(2) MR
33 STI Virtus 2014 49,990 - SMRP(2) MR
34 STI Aqua 2014 49,990 - SMRP(2) MR
35 STI Dama 2014 49,990 - SMRP(2) MR
36 STI Benicia 2014 49,990 - SMRP(2) MR
37 STI Regina 2014 49,990 - SMRP(2) MR
38 STI St. Charles 2014 49,990 - SMRP(2) MR
39 STI Mayfair 2014 49,990 - SMRP(2) MR
40 STI Yorkville 2014 49,990 - SMRP(2) MR
41 STI Milwaukee 2014 49,990 - SMRP(2) MR
42 STI Battery 2014 49,990 - SMRP(2) MR
43 STI Soho 2014 49,990 - SMRP(2) MR
44 STI Memphis 2014 49,995 - SMRP(2) MR
45 STI Tribeca 2015 49,990 - SMRP(2) MR
46 STI Gramercy 2015 49,990 - SMRP(2) MR
47 STI Bronx 2015 49,990 - SMRP(2) MR
48 STI Pontiac 2015 49,990 - SMRP(2) MR
49 STI Manhattan 2015 49,990 - SMRP(2) MR
50 STI Queens 2015 49,990 - SMRP(2) MR
51 STI Osceola 2015 49,990 - SMRP(2) MR
52 STI Notting Hill 2015 49,687 1B Time Charter (6) MR
53 STI Seneca 2015 49,990 - SMRP(2) MR
54 STI Westminster 2015 49,687 1B Time Charter (6) MR
55 STI Brooklyn 2015 49,990 - SMRP(2) MR
56 STI Black Hawk 2015 49,990 - SMRP(2) MR
57 STI Elysees 2014 109,999 - SLR2P (4) LR2
58 STI Madison 2014 109,999 - SLR2P (4) LR2
59 STI Park 2014 109,999 - SLR2P (4) LR2
60 STI Orchard 2014 109,999 - SLR2P (4) LR2
61 STI Sloane 2014 109,999 - SLR2P (4) LR2
62 STI Broadway 2014 109,999 - SLR2P (4) LR2
63 STI Condotti 2014 109,999 - SLR2P (4) LR2
64 STI Rose 2015 109,999 - Time Charter (7) LR2
65 STI Veneto 2015 109,999 - SLR2P (4) LR2
66 STI Alexis 2015 109,999 - SLR2P (4) LR2
67 STI Winnie 2015 109,999 - SLR2P (4) LR2
68 STI Oxford 2015 109,999 - SLR2P (4) LR2
69 STI Lauren 2015 109,999 - SLR2P (4) LR2
70 STI Connaught 2015 109,999 - SLR2P (4) LR2
71 STI Spiga 2015 109,999 - SLR2P (4) LR2
72 STI Savile Row 2015 109,999 - SLR2P (4) LR2
73 STI Kingsway 2015 109,999 - SLR2P (4) LR2
74 STI Carnaby 2015 109,999 - SLR2P (4) LR2
75 STI Lombard 2015 109,999 - SLR2P (4) LR2
76 STI Grace 2016 109,999 - SLR2P (4) LR2
77 STI Jermyn 2016 109,999 - SLR2P (4) LR2
---------
Total owned DWT 4,951,234
=========
Daily
Year Ice Employ- Vessel Base Expiry
Vessel Name Built DWT class ment type Rate (8)
------------ ----- ------- ----- ------- -------- -------- ---------
Time
chartered-in
vessels
SHTP
78 Kraslava 2007 37,258 1B (1) Handymax $17,000 02-Jun-17
Krisjanis SHTP
79 Valdemars 2007 37,266 1B (1) Handymax $17,000 02-Apr-17
SHTP
80 Silent 2007 37,847 1A (1) Handymax $15,600 21-Mar-19 (9)
SHTP
81 Single 2007 37,847 1A (1) Handymax $15,600 24-Mar-19 (9)
SHTP
82 Star I 2007 37,847 1A (1) Handymax $15,600 27-Mar-19 (9)
Miss
83 Mariarosaria 2011 47,499 - SMRP(2) MR $16,350 26-May-17
84 Vukovar 2015 49,990 - SMRP(2) MR $17,034 01-May-18
85 Targale 2007 49,999 - SMRP(2) MR $16,200 17-May-17
86 Zefyros 2013 49,999 - SMRP(2) MR $15,800 08-Jul-17 (10)
87 Gan-Trust 2013 51,561 - SMRP(2) MR $17,500 06-Jan-17 (11)
CPO New
88 Zealand 2011 51,717 - SMRP(2) MR $15,250 12-Sep-18 (12)
CPO
89 Australia 2011 51,763 - SMRP(2) MR $15,250 01-Sep-18 (12)
90 Ance 2006 52,622 - SMRP(2) MR $13,500 12-Oct-17 (13)
Hellespont SPTP
91 Progress 2006 73,728 - (3) LR1 $17,250 14-Mar-17
Densa SLR2P
92 Crocodile 2015 105,408 - (4) LR2 $22,600 07-Feb-17 (14)
Densa SLR2P
93 Alligator 2013 105,708 - (4) LR2 $18,500 17-Mar-17 (15)
-------
Total time
chartered-in
DWT 878,059
=======
Newbuildings currently under construction
Vessel
Vessel Name Yard DWT type
----------------------------------------- ---- ---------- --------
94 Hull 2601 - TBN STI Galata HMD (16) 52,000 MR
95 Hull 2602 - TBN STI Bosphorus HMD (16) 52,000 MR
96 Hull 2603 - TBN STI Leblon HMD (16) 52,000 MR
97 Hull 2604 - TBN STI La Boca HMD (16) 52,000 MR
98 Hull 2605 - TBN STI San Telmo HMD (16) 52,000 MR
99 Hull 2606 - TBN STI Jurere HMD (16) 52,000 MR
100 Hull 2607 - TBN STI Esles II HMD (16) 52,000 MR
101 Hull 2608 - TBN STI Jardins HMD (16) 52,000 MR
102 Hull S3120 - TBN STI Selatar SSME (17) 109,999 LR2
103 Hull S3121 - TBN STI Rambla SSME (17) 109,999 LR2
----------
Total newbuilding product tankers DWT 635,998
==========
----------
Total Fleet DWT 6,465,291
==========
(1) This vessel operates in or is expected to operate in the Scorpio
Handymax Tanker Pool (SHTP). SHTP is operated by Scorpio Commercial
Management (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 (SMRP). SMRP is operated by SCM. SMRP is a related party to the
Company.
(3) This vessel operates in or is expected to operate in the Scorpio
Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related
party to the Company.
(4) This vessel operates in or is expected to operate in the Scorpio LR2
Pool (SLR2P). SLR2P is operated by SCM. SLR2P is a related party to the
Company
(5) This vessel is currently time chartered-out to an unrelated third-party
for three years at $18,000 per day. This time charter is scheduled to
expire in January 2019.
(6) This vessel is currently time chartered-out to an unrelated third-party
for three years at $20,500 per day. This time charter is scheduled to
expire in December 2018.
(7) This vessel is currently time chartered-out to an unrelated third-party
for three years at $28,000 per day. This time charter is scheduled to
expire in February 2019.
(8) Redelivery from the charterer is plus or minus 30 days from the expiry
date.
(9) We have options to extend this charter for two consecutive one year
periods at $16,500 and $17,500 per day, respectively.
(10) We have an option to extend the charter for an additional year at
$17,000 per day.
(11) We have an option to extend the charter for an additional year at
$18,000 per day.
(12) We have an option to extend the charter for an additional year at
$16,000 per day.
(13) We have an option to extend the charter for an additional year at
$15,000 per day.
(14) We have entered into an agreement with a third party whereby we split
all of the vessel's profits and losses above or below the daily base
rate.
(15) In July 2016, we entered into a new charter agreement for six months at
$18,500 per day effective September 2016. We have an option to extend
the charter for an additional six months at $20,550 per day.
(16) These newbuilding vessels are being constructed at HMD (Hyundai Mipo
Dockyard Co. Ltd. of South Korea). Seven vessels are expected to be
delivered throughout 2017 and one vessel is expected to be delivered in
the first quarter of 2018.
(17) These newbuilding vessels are being constructed at SSME (Sungdong
Shipbuilding & Marine Engineering Co., Ltd). One vessel is expected to
be delivered in the fourth quarter of 2016 and one in the first quarter
of 2017.
Dividend Policy
The declaration and payment of dividends is subject at all times to the discretion of the Company’s Board of Directors. The timing and amount of dividends, if any, depends on the Company’s earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.
The Company’s dividends paid during 2015 and 2016 were as follows:
Dividends per
Date paid share
----------------------------------------------------------------------------
March 2015$0.120June 2015$0.125September 2015$0.125December 2015$0.125March 2016$0.125June 2016$0.125September 2016$0.125
On November 10, 2016, the Scorpio Tankers’ Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on December 22, 2016 to all shareholders as of November 25, 2016 (the record date). As of November 11, 2016 there were 174,629,755 common shares issued and outstanding.
Securities Repurchase Program
In May 2015, 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, which currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase any 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 securities.
Since January 1, 2016 through the date of this press release, the Company has repurchased its securities as follows:
- An aggregate of 2,956,760 of its common shares at an average price of $5.58 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 shares outstanding as of November 11, 2016.
- $10.0 million aggregate principal amount of its Convertible Notes at an average price of $839.28 per $1,000 principal amount.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 77 product tankers (21 LR2, 14 Handymax, and 42 MR tankers) with an average age of 2.1 years and time charters-in 16 product tankers (two LR2, one LR1, eight MR and five Handymax tankers). The Company has contracted for ten newbuilding product tankers (eight MR and two LR2 tankers). One LR2 is expected to be delivered in December 2016 and the second LR2 is expected to be delivered in the first quarter of 2017. The eight MRs are expected to be delivered throughout 2017 and the first quarter of 2018. Additional information about the Company is available at the Company’s website www.scorpiotankers.com, which is not a part of this press release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS Financial Information
This press release describes adjusted net income and adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. “Non-IFRS” measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.
The Company believes that the presentation of adjusted net income with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful to investors because they facilitate the comparability and the evaluation of companies in the Company’s industry. In addition, the Company believes that adjusted net income 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 adjusted net income with the 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.
Reconciliation of Net Income to Adjusted Net Income
For the three months ended September 30, 2016
-----------------------------------------------
In thousands of U.S. dollars Per share Per share
except per share data Amount basic diluted
--------------- --------------- ---------------
Net loss $ (27,115)$ (0.17)$ (0.17)
Adjustments:
Deferred financing fees
write-off 8,978 0.06 0.06
Unrealized gain on
derivative financial
instruments (169) (0.00) (0.00)
--------------- --------------- ---------------
Adjusted net loss $ (18,306)$ (0.11)$ (0.11)
=============== =============== ===============
For the three months ended September 30, 2015
---------------------------------------------
In thousands of U.S.
dollars except per share Per share Per share
data Amount basic diluted
------------- ------------- -------------
Net income $ 85,251$ 0.51$ 0.44
Adjustments:
Deferred financing
fees write-off 2,009 0.01 0.01
Gain on sale of Dorian
shares (1,179) (0.01) (0.01)
Loss on sales of
vessels 2,054 0.01 0.01
Gain on early
termination of time
chartered-in contract (1,397) (0.01) (0.01)
Reserve for pool
bunker supplier in
bankruptcy 1,396 0.01 0.01
Unrealized loss on
derivative financial
instruments 35 0.00 0.00
Gain on repurchase of
convertible senior
notes (46) (0.00) (0.00)
------------- ------------- -------------
Adjusted net income $ 88,123$ 0.53 (1) $ 0.46 (1)
============= ============= =============
(1) Summation differences due to rounding
For the nine months ended September 30, 2016
---------------------------------------------
In thousands of U.S. dollars Per share Per share
except per share data Amount basic diluted
------------- ------------- -------------
Net income $ 4,762$ 0.03$ 0.03
Adjustments:
Deferred financing fees
write-off 14,479 0.09 0.09
Unrealized gain on
derivative financial
instruments (1,600) (0.01) (0.01)
Gain on repurchase of
Convertible Notes (994) (0.01) (0.01)
Loss on sales of vessels 2,078 0.01 0.01
------------- ------------- -------------
Adjusted net income $ 18,725$ 0.12 (1) $ 0.11
============= ============= =============
(1) Summation differences due to rounding
For the nine months ended September 30, 2015
-------------------------------------------------
In thousands of U.S.
dollars except per share Per share Per share
data Amount basic diluted
-------------- -------------- --------------
Net income $ 183,534$ 1.14$ 1.01
Adjustments:
Deferred financing
fees write-off 2,009 0.01 0.01
Gain on sale of Dorian
shares (1,179) (0.01) (0.01)
Write-down of vessel
held for sale/gain on
sales of vessels 35 0.00 0.00
Gain on early
termination of time
chartered-in contract (1,397) (0.01) (0.01)
Reserve for pool
bunker supplier in
bankruptcy 1,396 0.01 0.01
Unrealized loss on
derivative financial
instruments 577 0.00 0.00
Gain on repurchase of
convertible senior
notes (46) (0.00) (0.00)
-------------- -------------- --------------
Adjusted net income $ 184,929$ 1.15 (1) $ 1.01
============== ============== ==============
(1) Summation differences due to rounding
Reconciliation of Net Income to Adjusted EBITDA
For the three months For the nine months
ended September 30, ended September 30,
----------------------- -----------------------
In thousands of U.S. dollars 2016 2015 2016 2015
----------- ----------- ----------- -----------
Net (loss) / income $ (27,115)$ 85,251$ 4,762$ 183,534
Financial expenses 31,150 25,549 82,381 65,447
Unrealized (gain) / loss
on derivative financial
instruments (169) 35 (1,600) 577
Financial income (59) (48) (169) (126)
Depreciation 30,686 29,525 90,775 76,483
Amortization of
restricted stock 7,588 9,653 23,076 24,793
Loss on sales of vessels - 2,054 2,078 35
Gain on repurchase of
Convertible Notes - - (994) -
Gain on sale of Dorian
shares - (1,179) - (1,179)
Gain on early
termination of time
chartered-in contract - (1,397) - (1,397)
Reserve for pool bunker
supplier in bankruptcy - 1,396 - 1,396
----------- ----------- ----------- -----------
Adjusted EBITDA $ 42,081$ 150,839$ 200,309$ 349,563
=========== =========== =========== ===========
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Contact Information
Scorpio Tankers Inc.
(212) 542-1616