UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2021

Commission File Number: 001-34677

SCORPIO TANKERS INC.
(Translation of registrant’s name into English)

9, Boulevard Charles III, Monaco 98000
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X] Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): [  ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.














INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this Report on Form 6-K as Exhibit 99.1 is a press release issued by Scorpio Tankers Inc. (the "Company") on February 18, 2021 announcing financial results for the fourth quarter of 2020 and declaration of a quarterly dividend.

The information contained in this Report on Form 6-K, with the exception of the information contained on page 4 of Exhibit 99.1 under the heading "Conference Call," is hereby incorporated by reference into the Company's registration statement on Form F-3 (File No. 333-230469) that was filed with the U.S. Securities and Exchange Commission with an effective date of March 22, 2019.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SCORPIO TANKERS INC.
(registrant)
Dated: February 18, 2021
By:/s/ Brian Lee
Brian Lee
Chief Financial Officer


Document

Exhibit 99.1
https://cdn.kscope.io/b6c0e0159e0877acafa0b59983c4f035-stnglogoa891.jpg
Scorpio Tankers Inc. Announces Financial Results for the Fourth Quarter of 2020 and Declaration of a Quarterly Dividend
MONACO--(GLOBE NEWSWIRE - February 18, 2021) - 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.
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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
PoolAverage daily TCE revenue% of Days
LR2$15,20048 %
LR1$11,00058 %
MR$11,50058 %
Handymax$6,80050 %

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:
PoolAverage 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
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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
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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) 861-2416
International Dial-In Number: 1 (703) 736-7422
Conference 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
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Current Liquidity
As of February 17, 2021, the Company had $204.1 million in unrestricted cash and cash equivalents.
Drydock, Scrubber and Ballast Water Treatment Update
Set forth below is a table summarizing the drydock, scrubber and ballast water treatment system activity that occurred during the fourth quarter of 2020 and that is in progress as of January 1, 2021:
Number of VesselsDrydock Ballast Water Treatment SystemsScrubbers
Aggregate Costs ($ in millions) (1)
Aggregate Off-hire Days in Q4 2020
Completed in the fourth quarter of 2020
LR2444$16.5220
LR1222.257
MR21127.381
Handymax
8716$26.0358
In progress as of January 1, 2021
LR2331$6.186
LR1333.328
MR
Handymax
661$9.4114

(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 payments13.2 
Q2 20216.6 
Q3 202110.2 
Q4 20216.2 
FY 202240.6 
(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. 
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(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
DrydockBallast Water Treatment SystemsScrubbers
Days (3)
LR2— — 102 
LR1— — — 62 
MR— — — — 
Handymax— — — — 
Total Q1 20211   164 
Q2 2021
Ships Scheduled for (2):
Off-hire
DrydockBallast Water Treatment SystemsScrubbers
Days (3)
LR2— — 60 
LR1— — 60 
MR— — — — 
Handymax— — — — 
Total Q2 20216   120 
Q3 2021
Ships Scheduled for (2):
Off-hire
DrydockBallast Water Treatment SystemsScrubbers
Days (3)
LR2— — 40 
LR1— — 40 
MR— — — — 
Handymax— — — — 
Total Q3 20214   80 
Q4 2021
Ships Scheduled for (2):
Off-hire
Drydock Ballast Water Treatment SystemsScrubbers
Days (3)
LR2— — 40 
LR1— — 40 
MR— — — — 
Handymax— — — — 
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Total Q4 20214   80 
FY 2022
Ships Scheduled for (2):
Off-hire
Drydock Ballast Water Treatment SystemsScrubbers
Days (3)
LR2— 140 
LR1— — 120 
MR11 295 
Handymax— — — — 
Total FY 202216 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.

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Debt
Set forth below is a summary of the Company’s outstanding indebtedness as of the dates presented:
In thousands of U.S. DollarsOutstanding Principal as of September 30, 2020Drawdowns and (repayments), netOutstanding Principal as of December 31, 2020Drawdowns and (repayments), netOutstanding 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)— — — 
5Credit Agricole Credit Facility84,302 (2,142)82,160 — 82,160 
6ABN AMRO / K-Sure Credit Facility42,791 (964)41,827 — 41,827 
7Citibank / K-Sure Credit Facility88,922 (2,104)86,818 — 86,818 
8ABN / SEB Credit Facility99,513 (1,657)97,856 — 97,856 
9Hamburg Commercial Credit Facility41,138 (823)40,315 — 40,315 
10Prudential Credit Facility51,765 (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 
15Ocean Yield Lease Financing141,322 (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 
202018 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 Financing127,336 (3,536)123,800 — 123,800 
25COSCO Lease Financing70,675 (1,925)68,750 — 68,750 
262020 CMB Lease Financing45,383 (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 
30IFRS 16 - Leases - 7 Handymax4,513 (2,266)2,247 (1,469)778 
31IFRS 16 - Leases - 3 MR38,777 (1,841)36,936 (1,278)35,658 
32$670.0 Million Lease Financing606,675 (13,384)593,291 (7,524)585,767 
33
Unsecured Senior Notes Due 2025 (9)
28,100 — 28,100 7,564 35,664 
34Convertible Notes Due 2022151,229 — 151,229 — 151,229 
Gross debt outstanding$3,108,594 $(22,053)3,086,541 $23,161 $3,109,702 
Cash and cash equivalents218,095 187,511 204,055 
Net debt$2,890,499 $2,899,030 $2,905,647 

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(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
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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.
10


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 202174.5 
Q3 202169.5 
Q4 202174.5 
Q1 2022 (4)
87.4 
Q2 2022 (5)
356.7 
Q3 2022 (6)
82.2 
Q4 2022 (7)
101.5 
2023 and thereafter2,091.7 
$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:
11


For the three months ended December 31,
In thousands of U.S. dollars20202019
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
12


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.

13


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 data2020201920202019
Revenue
Vessel revenue$138,236 $221,622 $915,892 $704,325 
Operating expenses
Vessel operating costs(86,775)(85,412)(333,748)(294,531)
Voyage expenses(241)(2,483)(7,959)(6,160)
Charterhire— — — (4,399)
Depreciation - owned or sale leaseback vessels(49,948)(46,477)(194,268)(180,052)
Depreciation - right of use assets(12,578)(12,636)(51,550)(26,916)
Impairment of vessels(14,207)— (14,207)— 
Impairment of goodwill(2,639)— (2,639)— 
General and administrative expenses(14,318)(15,758)(66,187)(62,295)
Total operating expenses(180,706)(162,766)(670,558)(574,353)
Operating income(42,470)58,856 245,334 129,972 
Other (expense) and income, net
Financial expenses(35,888)(47,287)(154,971)(186,235)
Gain on repurchase of Convertible Notes— — 1,013 — 
Financial income181 756 1,249 8,182 
Other income and (expense), net1,916 (283)1,499 (409)
Total other expense, net(33,791)(46,814)(151,210)(178,462)
Net (loss) / income$(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 outstanding54,265,313 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.

14


Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
As of
In thousands of U.S. dollarsDecember 31, 2020December 31, 2019
Assets
Current assets
Cash and cash equivalents$187,511 $202,303 
Accounts receivable58,217 78,174 
Prepaid expenses and other current assets12,430 13,855 
Inventories9,261 8,646 
Total current assets267,419 302,978 
Non-current assets
Vessels and drydock4,002,888 4,008,158 
Right of use assets807,179 697,903 
Other assets66,945 131,139 
Goodwill8,900 11,539 
Restricted cash5,293 12,293 
Total non-current assets4,891,205 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 vessels131,736 122,229 
Lease liability - IFRS 1656,678 63,946 
Accounts payable12,863 23,122 
Accrued expenses32,193 41,452 
Total current liabilities406,175 486,231 
Non-current liabilities
Long-term debt971,172 999,268 
Lease liability - sale and leaseback vessels1,139,713 1,195,494 
Lease liability - IFRS 16575,796 506,028 
Total non-current liabilities2,686,681 2,700,790 
Total liabilities3,092,856 3,187,021 
Shareholders' equity
Issued, authorized and fully paid-in share capital:
Share capital656 646 
Additional paid-in capital2,850,206 2,842,446 
Treasury shares(480,172)(467,057)
Accumulated deficit(304,922)(399,046)
Total shareholders' equity2,065,768 1,976,989 
Total liabilities and shareholders' equity$5,158,624 $5,164,010 


15


Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the year ended December 31,
In thousands of U.S. dollars20202019
Operating activities
Net income / (loss)$94,124 $(48,490)
Depreciation - owned or finance leased vessels194,268 180,052 
Depreciation - right of use assets51,550 26,916 
Amortization of restricted stock28,506 27,421 
Impairment of vessels and goodwill16,846 — 
Amortization of deferred financing fees6,657 7,041 
Write-off of deferred financing fees and unamortized discounts on sale and leaseback facilities2,025 1,466 
Accretion of convertible notes8,413 11,375 
Accretion of fair value measurement on debt assumed in business combinations3,422 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 receivable19,957 (8,458)
Decrease in prepaid expenses and other current assets1,424 1,816 
Decrease / (increase) in other assets856 (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 activities419,381 209,512 
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 debt705,390 108,589 
Debt issuance costs(13,523)(5,744)
Principal repayments on lease liability - IFRS 16(77,913)(36,761)
Decrease / (increase) in restricted cash7,001 (9)
Repurchase / repayment of convertible notes(46,737)(145,000)
Gross proceeds from issuance of common stock2,601 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 


16



17


Scorpio Tankers Inc. and Subsidiaries
Other 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,
2020201920202019
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 vessels42.0 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 vessels12.0 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 vessels63.0 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 vessels18.0 21.0 19.5 21.0 
Fleet data
Average number of vessels135.0 134.0 135.4 123.1 
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 
18


(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.
19


Fleet list as of February 17, 2021
Vessel NameYear BuiltDWTIce classEmploymentVessel typeScrubber
Owned, sale leaseback and bareboat chartered-in vessels
1STI Brixton201438,734 1A SHTP (1) HandymaxN/A
2STI Comandante201438,734 1A SHTP (1) HandymaxN/A
3STI Pimlico201438,734 1A SHTP (1) HandymaxN/A
4STI Hackney201438,734 1A SHTP (1) HandymaxN/A
5STI Acton201438,734 1A SHTP (1) HandymaxN/A
6STI Fulham201438,734 1A SHTP (1) HandymaxN/A
7STI Camden201438,734 1A SHTP (1) HandymaxN/A
8STI Battersea201438,734 1A SHTP (1) HandymaxN/A
9STI Wembley201438,734 1A SHTP (1) HandymaxN/A
10STI Finchley201438,734 1A SHTP (1) HandymaxN/A
11STI Clapham201438,734 1A SHTP (1) HandymaxN/A
12STI Poplar201438,734 1A SHTP (1) HandymaxN/A
13STI Hammersmith201538,734 1A SHTP (1) HandymaxN/A
14STI Rotherhithe201538,734 1A SHTP (1) HandymaxN/A
15STI Amber201249,990 SMRP (2)MRYes
16STI Topaz201249,990 SMRP (2)MRYes
17STI Ruby201249,990 SMRP (2)MRNot Yet Installed
18STI Garnet201249,990 SMRP (2)MRYes
19STI Onyx201249,990 SMRP (2)MRYes
20STI Fontvieille201349,990 SMRP (2)MRNot Yet Installed
21STI Ville201349,990 SMRP (2)MRNot Yet Installed
22STI Duchessa201449,990 SMRP (2)MRNot Yet Installed
23STI Opera201449,990 SMRP (2)MRNot Yet Installed
24STI Texas City201449,990 SMRP (2)MRYes
25STI Meraux201449,990 SMRP (2)MRYes
26STI San Antonio201449,990 SMRP (2)MRYes
27STI Venere201449,990 SMRP (2)MRYes
28STI Virtus201449,990 SMRP (2)MRYes
29STI Aqua201449,990 SMRP (2)MRYes
30STI Dama201449,990 SMRP (2)MRYes
31STI Benicia201449,990 SMRP (2)MRYes
32STI Regina201449,990 SMRP (2)MRYes
33STI St. Charles201449,990 SMRP (2)MRYes
34STI Mayfair201449,990 SMRP (2)MRYes
35STI Yorkville201449,990 SMRP (2)MRYes
36STI Milwaukee201449,990 SMRP (2)MRYes
37STI Battery201449,990 SMRP (2)MRYes
38STI Soho201449,990 SMRP (2)MRYes
39STI Memphis201449,990 SMRP (2)MRYes
40STI Tribeca201549,990 SMRP (2)MRYes
41STI Gramercy201549,990 SMRP (2)MRYes
42STI Bronx201549,990 SMRP (2)MRYes
43STI Pontiac201549,990 SMRP (2)MRYes
44STI Manhattan201549,990 SMRP (2)MRYes
45STI Queens201549,990 SMRP (2)MRYes
20


Vessel NameYear BuiltDWTIce classEmploymentVessel typeScrubber
46STI Osceola201549,990 SMRP (2)MRYes
47STI Notting Hill201549,687 1BSMRP (2)MRYes
48STI Seneca201549,990 SMRP (2)MRYes
49STI Westminster201549,687 1BSMRP (2)MRYes
50STI Brooklyn201549,990 SMRP (2)MRYes
51STI Black Hawk201549,990 SMRP (2)MRYes
52STI Galata201749,990 SMRP (2)MRYes
53STI Bosphorus201749,990 SMRP (2)MRNot Yet Installed
54STI Leblon201749,990 SMRP (2)MRYes
55STI La Boca201749,990 SMRP (2)MRYes
56STI San Telmo201749,990 1BSMRP (2)MRNot Yet Installed
57STI Donald C Trauscht201749,990 1BSMRP (2)MRNot Yet Installed
58STI Esles II201849,990 1BSMRP (2)MRNot Yet Installed
59STI Jardins201849,990 1BSMRP (2)MRNot Yet Installed
60STI Magic201950,000 SMRP (2)MRYes
61STI Majestic201950,000 SMRP (2)MRYes
62STI Mystery201950,000 SMRP (2)MRYes
63STI Marvel201950,000 SMRP (2)MRYes
64STI Magnetic201950,000 SMRP (2)MRYes
65STI Millennia201950,000 SMRP (2)MRYes
66STI Master201950,000 SMRP (2)MRYes
67STI Mythic201950,000 SMRP (2)MRYes
68STI Marshall201950,000 SMRP (2)MRYes
69STI Modest201950,000 SMRP (2)MRYes
70STI Maverick201950,000 SMRP (2)MRYes
71STI Miracle202050,000 SMRP (2)MRYes
72STI Maestro202050,000 SMRP (2)MRYes
73STI Mighty202050,000 SMRP (2)MRYes
74STI Maximus202050,000 SMRP (2)MRYes
75STI Excel201574,000 SLR1P (3)LR1Not Yet Installed
76STI Excelsior201674,000 SLR1P (3)LR1Not Yet Installed
77STI Expedite201674,000 SLR1P (3)LR1Not Yet Installed
78STI Exceed201674,000 SLR1P (3)LR1Not Yet Installed
79STI Executive201674,000 SLR1P (3)LR1Yes
80STI Excellence201674,000 SLR1P (3)LR1Yes
81STI Experience201674,000 SLR1P (3)LR1Not Yet Installed
82STI Express201674,000 SLR1P (3)LR1Yes
83STI Precision201674,000 SLR1P (3)LR1Yes
84STI Prestige201674,000 SLR1P (3)LR1Yes
85STI Pride201674,000 SLR1P (3)LR1Yes
86STI Providence201674,000 SLR1P (3)LR1Yes
87STI Elysees2014109,999 SLR2P (4)LR2Yes
88STI Madison2014109,999 SLR2P (4)LR2Yes
89STI Park2014109,999 SLR2P (4)LR2Yes
90STI Orchard2014109,999 SLR2P (4)LR2Yes
91STI Sloane2014109,999 SLR2P (4)LR2Yes
92STI Broadway2014109,999 SLR2P (4)LR2Yes
93STI Condotti2014109,999 SLR2P (4)LR2Yes
94STI Rose2015109,999 SLR2P (4)LR2Yes
95STI Veneto2015109,999 SLR2P (4)LR2Yes
96STI Alexis2015109,999 SLR2P (4)LR2Yes
97STI Winnie2015109,999 SLR2P (4)LR2Yes
98STI Oxford2015109,999 SLR2P (4)LR2Yes
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Vessel NameYear BuiltDWTIce classEmploymentVessel typeScrubber
99STI Lauren2015109,999 SLR2P (4)LR2Yes
100STI Connaught2015109,999 SLR2P (4)LR2Yes
101STI Spiga2015109,999 SLR2P (4)LR2Yes
102STI Savile Row2015109,999 SLR2P (4)LR2Yes
103STI Kingsway2015109,999 SLR2P (4)LR2Yes
104STI Carnaby2015109,999 SLR2P (4)LR2Yes
105STI Solidarity2015109,999 SLR2P (4)LR2Yes
106STI Lombard2015109,999 SLR2P (4)LR2Yes
107STI Grace2016109,999 SLR2P (4)LR2Yes
108STI Jermyn2016109,999 SLR2P (4)LR2Yes
109STI Sanctity2016109,999 SLR2P (4)LR2Yes
110STI Solace2016109,999 SLR2P (4)LR2Yes
111STI Stability2016109,999 SLR2P (4)LR2Yes
112STI Steadfast2016109,999 SLR2P (4)LR2Yes
113STI Supreme2016109,999 SLR2P (4)LR2Not Yet Installed
114STI Symphony2016109,999 SLR2P (4)LR2Yes
115STI Gallantry2016113,000 SLR2P (4)LR2Yes
116STI Goal2016113,000 SLR2P (4)LR2Yes
117STI Nautilus2016113,000 SLR2P (4)LR2Yes
118STI Guard2016113,000 SLR2P (4)LR2Yes
119STI Guide2016113,000 SLR2P (4)LR2Yes
120STI Selatar2017109,999 SLR2P (4)LR2Yes
121STI Rambla2017109,999 SLR2P (4)LR2Yes
122STI Gauntlet2017113,000 SLR2P (4)LR2Yes
123STI Gladiator2017113,000 SLR2P (4)LR2Yes
124STI Gratitude2017113,000 SLR2P (4)LR2Yes
125STI Lobelia2019110,000 SLR2P (4)LR2Yes
126STI Lotus2019110,000 SLR2P (4)LR2Yes
127STI Lily2019110,000 SLR2P (4)LR2Yes
128STI Lavender2019110,000 SLR2P (4)LR2Yes
129Sky200737,847 1A SHTP (1) HandymaxN/A(5)
130Steel200837,847 1A SHTP (1) HandymaxN/A(5)
131Stone I200837,847 1A SHTP (1) HandymaxN/A(5)
132Style200837,847 1A SHTP (1) HandymaxN/A(5)
133STI Beryl201349,990 SMRP (2)MRNot Yet Installed(6)
134STI Le Rocher201349,990 SMRP (2)MRNot Yet Installed(6)
135STI Larvotto201349,990 SMRP (2)MRNot Yet Installed(6)
Total owned, sale leaseback and bareboat chartered-in fleet DWT9,374,548
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(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 paidDividends 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
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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 sharePer share
In thousands of U.S. dollars except per share dataAmount basic diluted
Net loss$(76,261)$(1.41)$(1.41)
Adjustments:
   Loss on extinguishment of debt2,788 0.05 0.05 
   Impairment of vessels14,207 0.26 0.26 
   Impairment of goodwill2,639 0.05 0.05 
Adjusted net loss$(56,627)$(1.04)(1)$(1.04)(1)

For the three months ended December 31, 2019
Per sharePer share
In thousands of U.S. dollars except per share dataAmount basic diluted
Net income$12,042 $0.22 $0.21 
Adjustment:
   Deferred financing fees write-off748 0.01 0.01 
Adjusted net income$12,790 $0.23 $0.23 (1)
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For the year ended December 31, 2020
  Per sharePer share
In thousands of U.S. dollars except per share dataAmount basic diluted
Net income$94,124 $1.72 $1.67 
Adjustments:
   Loss on extinguishment of debt4,056 0.070.07
   Gain on repurchase of Convertible Notes (1,013)$(0.02)$(0.02)
   Impairment of vessels14,207 0.26 0.25 
   Impairment of goodwill2,639 0.05 0.05 
Adjusted net income$114,013 $2.09 (1)$2.02 
For the year ended December 31, 2019
  Per sharePer share
In thousands of U.S. dollars except per share dataAmount basic diluted
Net loss$(48,490)$(0.97)$(0.97)
Adjustment:
   Deferred financing fees write-off1,466 0.030.03
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. dollars2020201920202019
Net (loss) / income$(76,261)$12,042 $94,124 $(48,490)
   Financial expenses35,888 47,287 154,971 186,235 
   Financial income(181)(756)(1,249)(8,182)
   Depreciation - owned or finance leased vessels49,948 46,477 194,268 180,052 
 Depreciation - right of use assets12,578 12,636 51,550 26,916 
   Impairment of vessels14,207 — 14,207 — 
   Impairment of goodwill2,639 — 2,639 — 
   Amortization of restricted stock6,372 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
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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









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