Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers," or the
"Company") today reported its results for the three and six months
ended June 30, 2017.
Results for the three months ended June 30, 2017 and
2016
For the three months ended June 30, 2017, the
Company's adjusted net loss (see Non-IFRS Measures section below)
was $17.0 million, or $0.09 basic and diluted loss per share, which
excludes (i) a $23.4 million loss on sales of vessels and
write-down of vessel held for sale, (ii) $32.5 million of
transaction costs related to the merger with Navig8 Product Tankers
Inc ("NPTI"), (iii) a $5.4 million gain recorded upon on the
purchase of the four subsidiaries of NPTI that own four LR1
tankers (see Merger with Navig8 Product Tankers Inc below), and
(iv) a $0.8 million write-off of deferred financing fees. The
adjustments resulted in an aggregate reduction of the Company’s net
loss by $51.3 million or $0.28 basic and diluted earnings per
share. For the three months ended June 30, 2017, the Company had a
net loss of $68.3 million, or $0.38 basic and diluted loss per
share.
For the three months ended June 30, 2016, the
Company's adjusted net income was $6.6 million (see
Non-IFRS Measures section below), or $0.04 basic
and diluted earnings per share, which excludes (i) a $3.7
million write-off of deferred financing fees, (ii) a $0.4 million
unrealized gain on derivative financial instruments, (iii) a $0.4
million gain recorded on the repurchase of $5.0 million
aggregate principal amount of the Company's Convertible Senior
Notes due 2019 (the "Convertible Notes") and (iv) a $0.1 million
gain on sales of vessels. The adjustments resulted in an
aggregate increase of net income by $2.7 million or $0.02 basic and
diluted earnings per share. For the three months ended June
30, 2016, the Company had net income of $3.8 million, or $0.02
basic and diluted earnings per share.
Results for the six months ended June 30, 2017 and
2016
For the six months ended June 30, 2017, the
Company's adjusted net loss was $28.5 million (see Non-IFRS
Measures section below), or $0.17 basic and diluted loss per share,
which excludes (i) a $23.4 million loss on sales of vessels and
write-down of vessel held for sale, (ii) $32.5 million of
transaction costs related to the merger with NPTI, (iii) a $5.4
million gain recorded upon on the purchase of the four NPTI
subsidiaries that own four LR1 tankers, and (iv) a $0.9 million
write-off of deferred financing fees. The adjustments
resulted in an aggregate reduction of the Company's net loss by
$51.3 million or $0.30 basic and diluted loss per share. For
the six months ended June 30, 2017, the Company had a net loss of
$79.8 million, or $0.46 basic and diluted loss per share.
For the six months ended June 30, 2016, the
Company's adjusted net income (see Non-IFRS Measures section below)
was $37.0 million, or $0.23 basic
and $0.22 diluted earnings per share, which excludes (i)
a $2.1 million loss on sales of vessels, (ii) a $5.5
million write-off of deferred financing fees, (iii)
a $1.4 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 Convertible Notes. The adjustments resulted
in an aggregate increase of net income by $5.2
million or $0.03 basic and diluted earnings per
share. For the six months ended June 30, 2016, the Company had
net income of $31.9 million, or $0.20 basic
and $0.19 diluted earnings per share.
Declaration of Dividend
On September 13, 2017, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about September 29, 2017 to all shareholders as of
September 25, 2017 (the record date). As of
September 15, 2017, there were 280,218,861 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 $5.5 million and $11.0 million during the three and
six months ended June 30, 2017, respectively, are not incurred.
Conversion is not assumed if the results of this calculation are
anti-dilutive.
For the three and six months ended June 30,
2017, the Company's basic weighted average number of shares were
181,378,540 and 172,096,465, respectively. The weighted
average number of shares, both diluted and under the if-converted
method, were anti-dilutive for the three and six months ended June
30, 2017 as the Company incurred net losses.
For the three and six months ended June 30,
2016, the Company's basic weighted average number of shares were
161,381,900 and 160,931,752, respectively. The Company's diluted
weighted average number of shares for those periods were
165,943,795 and 166,306,290, respectively 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 Second Quarter
Significant Events
- Entered into definitive agreements to acquire NPTI and its
fleet of 12 LR1 and 15 LR2 product tankers in exchange for 55
million shares of common stock and the assumption of NPTI's
debt. Four of the LR1 product tankers were acquired on June
14, 2017, and the remaining vessels were acquired upon the closing
of the merger on September 1, 2017. See "Merger with Navig8 Product
Tankers Inc" below.
- Issued 50 million shares of common stock in an underwritten
public offering at an offering price of $4.00 per share for net
proceeds of approximately $188.7 million, after deducting
underwriters' discounts and offering expenses. This offering closed
on May 30, 2017 and was a condition to closing the merger with
NPTI.
- Below is a summary of the average daily TCE revenue and
duration for voyages fixed thus far in the third quarter of 2017 as
of the date hereof:
- For the LR2s in the pool: approximately $13,500 per day for 87%
of the days (excludes vessels acquired from NPTI on September 1,
2017 that are currently operating in the Navig8 Alpha8 Pool and are
expected to transition to the Scorpio LR2 Pool before the end of
October 2017).
- For the LR1s in the pools: approximately $11,900 per day for
80% of the days (includes the 4 LR1 vessels that were acquired from
NPTI on June 14, 2017 which operated in the Navig8 LR8 Pool for all
or a portion of the third quarter of 2017 and excludes vessels
acquired from NPTI on September 1, 2017 that are currently
operating in the Navig8 LR8 Pool and are expected to transition to
the Scorpio LR1 Pool before the end of October 2017).
- For the MRs in the pool: approximately $12,800 per day for 90%
of the days.
- For the ice-class 1A and 1B Handymaxes in the pool:
approximately $9,100 per day for 90% of the days.
- Below is a summary of the average daily TCE revenue earned
during the second quarter of 2017:
- For the LR2s in the pool: $14,508 per revenue day
- For the LR1s in the pools: $8,889 per revenue day (includes the
four LR1s purchased from NPTI on June 14, 2017 and operated in the
Navig8 LR8 pool through June 30, 2017)
- For the MRs in the pool: $12,823 per revenue day
- For the Handymaxes in the pool: $11,384 per revenue day
- Sold and leased back three 2013 built MR product tankers, STI
Beryl, STI Le Rocher and STI Larvotto, to an unaffiliated third
party for a sales price of $87.0 million in aggregate in April
2017. As part of this transaction, the Company repaid the
remaining amount outstanding of $42.1 million on its 2011 Credit
Facility.
- Sold two 2013 built MR product tankers, STI Emerald and STI
Sapphire, to an unaffiliated third party for an aggregate sales
price of $56.4 million. The sale of STI Emerald closed in
June 2017 and the sale of STI Sapphire closed in July 2017.
As part of this transaction, the Company repaid $27.6 million on
its BNP Paribas Credit Facility in June 2017.
- Took delivery of STI Bosphorus, STI Leblon and STI La
Boca, three MR product tankers that were under construction,
from Hyundai Mipo Dockyard Co. Ltd. of South Korea ("HMD").
STI Bosphorus was delivered in April 2017 and STI Leblon and STI La
Boca were delivered in July 2017. As part of these deliveries, the
Company drew down $20.4 million, $21.0 million and $21.0 million in
April, June and July 2017, respectively, from its 2017 Credit
Facility to partially finance the purchase of these vessels.
- Refinanced the four vessels collateralized under the DVB Credit
Facility by repaying $86.8 million and drawing down $81.4 million
from the DVB 2017 Credit Facility in April 2017.
- Issued $50.0 million of 8.25% Senior Unsecured Notes due June
2019 (the "Senior Notes due 2019") in March 2017 in an underwritten
offering and issued an additional $7.5 million of Senior Notes due
2019 in April 2017 when the underwriters fully exercised their
option to purchase additional Senior Notes due 2019 under the same
terms and conditions.
- Completed a cash tender offer of the Company's 7.50% Senior
Unsecured Notes due October 2017 (the "Senior Notes due 2017") in
April 2017 and repurchased $6.3 million aggregate principal amount
of the Senior Notes due 2017.
- Paid a quarterly cash dividend on the Company's common stock of
$0.01 per share in June 2017.
Merger with Navig8 Product Tankers
Inc
On May 23, 2017, the Company entered into a
definitive agreement to acquire NPTI, including its fleet of 12 LR1
and 15 LR2 product tankers for 55 million common shares of the
Company and the assumption of NPTI's debt. The key events,
and corresponding timeline were as follows:
- On May 30, 2017, the Company issued 50 million shares of common
stock in an underwritten public offering at an offering price of
$4.00 per share for net proceeds of approximately $188.7 million,
after deducting underwriters' discounts and offering
expenses. The completion of this offering was a condition to
closing the merger with NPTI.
- On June 14, 2017, the Company acquired certain of NPTI’s
subsidiaries that own four LR1 tankers for an aggregate acquisition
price of $156.0 million, consisting of $42.2 million of cash and
$113.8 million of assumed indebtedness (including accrued
interest). The cash portion of the acquisition price (after
considering cash flows from operations) formed part of the balance
sheet of the combined company upon the closing of the merger on
September 1, 2017.
- On September 1, 2017, the merger closed, and the Company
acquired the remaining eight LR1 and 15 LR2 tankers. All of
the vessels acquired from NPTI are expected to enter the Scorpio
Group pools before the end of October 2017.
- All of NPTI’s lenders and leasing companies consented to the
merger prior to closing, and the Company assumed NPTI's aggregate
outstanding indebtedness of $806.4 million as of the date of
closing. A description of such indebtedness, which includes
obligations due under NPTI’s sale and leaseback arrangements, may
be found further below under the section ‘Debt’.
- In the second quarter of 2017, the Company recorded $32.5
million of merger transaction costs, which included costs to
terminate NPTI's commercial management agreement and administrative
services agreement with the Navig8 Group (a related party affiliate
of NPTI) along with legal fees and advisory fees.
- Approximately $6.0 million of this amount may be settled with
the Navig8 Group through the issuance of two warrants, which may be
exercised for an aggregate of up to 1.5 million common shares of
the Company, to Navig8 Limited, a company affiliated with Navig8
Product Tankers Inc. The first warrant, which may be
exercised to purchase up to 222,224 common shares, was issued on
June 9, 2017 in connection with the acquisition of four LR1 tankers
of NPTI prior to the closing of the merger. The second
warrant, which may be exercised to purchase up to an aggregate of
1,277,776 common shares, was issued on the date of the closing of
the merger. Each warrant is exercisable on a pro-rata basis
upon the redelivery of each NPTI vessel from the applicable Navig8
Group product tanker pool. Pursuant to the terms of the two
warrants the Company, at its option, may elect to pay cash in lieu
of issuing shares upon exercise of the two warrants. As of
September 15, 2017, the Company has issued 611,116 shares to Navig8
Limited and made no cash payments in connection with the redelivery
of 11 NPTI vessels and the corresponding warrant
exercises.
- As part of the closing of the merger, NPTI’s Series A
Cumulative Redeemable Perpetual Preferred Stock ("NPTI Preference
Shares") was redeemed for $39.5 million.
Sale and leaseback of three
vessels
In April 2017, the Company sold and leased back,
on a bareboat basis, three 2013 built MR product tankers, STI
Beryl, STI Le Rocher and STI Larvotto to Bank of Communications
Financial Leasing (the “Buyers”). The sales price was $29.0 million
per vessel and the Company bareboat chartered-in the vessels for a
period of up to eight years at $8,800 per day per vessel.
The Company has the option to purchase these
vessels beginning at the end of the fifth year of the agreements
through the end of the eighth year of the agreements. Additionally,
a deposit of $4.35 million per vessel was retained by the Buyers
and will either be applied to the purchase price of the vessel if a
purchase option is exercised, or refunded to the Company at the
expiration of the agreement (as applicable). The Company fully
repaid the outstanding balance of $42.1 million on the 2011 Credit
Facility and recorded a loss on sales of vessels of $14.2 million
in the second quarter of 2017 as a result of these sales. These
transactions are being accounted for as sales and operating
leasebacks.
Sale of two vessels
In April 2017, the Company reached an agreement
with an unrelated third party to sell two 2013 built, MR product
tankers, STI Emerald and STI Sapphire, for a sales price of $56.4
million in aggregate. The sale of STI Emerald closed in June 2017,
and the sale of STI Sapphire closed in July 2017. As a result
of this transaction, the Company recorded an aggregate loss on sale
and write down of vessel held for sale of $9.1 million.
Additionally, the Company repaid the aggregate outstanding debt for
both vessels of $27.6 million on its BNP Paribas Credit Facility in
June 2017 and wrote-off $0.5 million of deferred financing fees
during the second quarter of 2017 as a result of this
repayment.
Time Charter-in Update
In June 2017, the Company entered into a new
time charter agreement on a 2015 built, LR2 product tanker for six
months at $14,750 per day. The Company also has an option to extend
the charter for an additional six months at $15,750 per day.
In May 2017, the Company entered into a new time
charter agreement on a 2013 built, MR product tanker that was
previously time chartered-in by the Company for six months at
$13,000 per day effective June 2017. The Company also
has the option to extend the charter for an additional six months
at $13,250 per day and should the first option be exercised, an
option to extend the charter for an additional year at $14,500 per
day.
$250 Million Securities Repurchase
Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its (i)
Convertible Notes, which were issued in June 2014, (ii) Unsecured
Senior Notes Due 2020 (NYSE:SBNA), which were issued in May 2014,
(iii) Unsecured Senior Notes Due 2017 (NYSE:SBNB), which were
issued in October 2014, and (iv) Unsecured Senior Notes Due 2019
(NYSE:SBBC), which were issued in March 2017.
Since January 1, 2017 through the date of this
press release, we acquired an aggregate of 250,419 of our Senior
Notes due 2017 for aggregate consideration of $6.3 million, which
was the result of the cash tender offer of such notes that
commenced in conjunction with the March 2017 issuance of the
Company's Senior Notes due 2019 and concluded in April
2017.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
Conference Call
The Company has scheduled a conference call on
September 18, 2017 at 11:00 AM Eastern Daylight Time and 5:00 PM
Central European Summer Time. The dial-in information is as
follows:
US Dial-In Number: 1 (855) 861-2416
International Dial-In Number: +1 (703) 736-7422
Conference ID: 82599975
Participants should dial into the call 10
minutes before the scheduled time. The information provided on the
teleconference is only accurate at the time of the conference call,
and the Company will take no responsibility for providing updated
information.
Slides and Audio Webcast:
There will also be a simultaneous live webcast
over the internet, through the Scorpio Tankers Inc. website
www.scorpiotankers.com. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Webcast URL:
https://edge.media-server.com/m6/p/m4trjq6a
Current Liquidity
As of September 15, 2017, the Company had
$161.2 million in unrestricted cash and cash equivalents.
Drydock Update
During the third quarter of 2017, five of the
Company’s 2012 built MR product tankers were drydocked in
accordance with their scheduled, class required special
survey. These vessels were offhire for an aggregate of 90
days and the aggregate estimated drydock cost is approximately $5.2
million.
The Company has five MRs that are scheduled for
drydock throughout 2018 and estimates that these vessels will be
offhire for an aggregate of 100 days and an aggregate cost of
approximately $4.0 million.
Debt
Set forth below is a summary of the Company’s
outstanding indebtedness as of the dates presented:
| In millions of U.S.
dollars |
|
Outstanding as of March 31, 2017 |
Drawdowns and (repayments), net |
Outstanding as of June 30, 2017 |
Additions, drawdowns and (repayments), net |
Outstanding as of September 15,
2017 |
|
Availability as of September 15,
2017 |
| 2011 Credit Facility
(1) |
|
$ |
42.1 |
|
$ |
(42.1 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
| K-Sure Credit
Facility |
|
299.1 |
|
(3.3 |
) |
295.8 |
|
(12.3 |
) |
283.5 |
|
|
— |
|
| KEXIM Credit
Facility |
|
349.8 |
|
— |
|
349.8 |
|
(16.8 |
) |
333.0 |
|
|
— |
|
| Credit Suisse Credit
Facility |
|
58.4 |
|
(1.0 |
) |
57.4 |
|
(3.9 |
) |
53.5 |
|
|
— |
|
| ABN AMRO Credit
Facility |
|
124.0 |
|
(6.3 |
) |
117.7 |
|
(2.2 |
) |
115.5 |
|
|
— |
|
| ING Credit
Facility |
|
122.1 |
|
(2.2 |
) |
119.9 |
|
(10.0 |
) |
109.9 |
|
|
— |
|
| BNP Paribas Credit
Facility (2) |
|
59.8 |
|
(28.8 |
) |
31.0 |
|
— |
|
31.0 |
|
|
— |
|
| Scotiabank Credit
Facility |
|
31.6 |
|
(0.6 |
) |
31.0 |
|
(2.2 |
) |
28.8 |
|
|
— |
|
| NIBC Credit
Facility |
|
38.8 |
|
(1.0 |
) |
37.8 |
|
(3.1 |
) |
34.7 |
|
|
— |
|
| 2016 Credit
Facility |
|
274.4 |
|
(6.8 |
) |
267.6 |
|
(6.8 |
) |
260.8 |
|
|
— |
|
| DVB Credit Facility
(3) |
|
86.8 |
|
(86.8 |
) |
— |
|
— |
|
— |
|
|
— |
|
| HSH Nordbank Credit
Facility |
|
31.1 |
|
(0.7 |
) |
30.4 |
|
(0.7 |
) |
29.7 |
|
|
— |
|
| 2017 Credit Facility
(4) |
|
20.4 |
|
41.0 |
|
61.4 |
|
20.6 |
|
82.0 |
|
|
85.3 |
|
| DVB 2017 Credit
Facility (3) |
|
— |
|
81.4 |
|
81.4 |
|
(1.5 |
) |
79.9 |
|
|
— |
|
| Credit Agricole Credit
Facility (5) |
|
— |
|
112.1 |
|
112.1 |
|
(2.1 |
) |
110.0 |
|
|
— |
|
| ABN AMRO/K-Sure Credit
Facility (6) |
|
— |
|
— |
|
— |
|
54.3 |
|
54.3 |
|
|
— |
|
| Citi/K-Sure Credit
Facility (7) |
|
— |
|
— |
|
— |
|
114.1 |
|
114.1 |
|
|
— |
|
| Ocean Yield Sale and
Leaseback (8) |
|
— |
|
— |
|
— |
|
173.2 |
|
173.2 |
|
|
— |
|
| CMBFL Sale and
Leaseback (9) |
|
— |
|
— |
|
— |
|
68.0 |
|
68.0 |
|
|
— |
|
| BCFL Sale and Leaseback
(10) |
|
— |
|
— |
|
— |
|
109.9 |
|
109.9 |
|
|
— |
|
| CSSC Sale and Leaseback
(11) |
|
— |
|
— |
|
— |
|
279.3 |
|
279.3 |
|
|
— |
|
| 2020 senior unsecured
notes |
|
53.8 |
|
— |
|
53.8 |
|
— |
|
53.8 |
|
|
— |
|
| 2017 senior unsecured
notes (12) |
|
51.8 |
|
(6.3 |
) |
45.5 |
|
— |
|
45.5 |
|
|
— |
|
| 2019 senior unsecured
notes (13) |
|
50.0 |
|
7.5 |
|
57.5 |
|
— |
|
57.5 |
|
|
— |
|
| Convertible Notes |
|
348.5 |
|
— |
|
348.5 |
|
— |
|
348.5 |
|
|
— |
|
| |
|
$ |
2,042.5 |
|
$ |
56.1 |
|
$ |
2,098.6 |
|
$ |
757.8 |
|
$ |
2,856.4 |
|
|
$ |
85.3 |
|
(1) In April 2017, the Company fully repaid the 2011 Credit
Facility as a result of the sale and leaseback transactions for STI
Beryl, STI Le Rocher and STI Larvotto.
(2) Activity for the BNP Paribas Credit Facility includes the
$27.6 million aggregate repayment made in June 2017 in connection
with the sales of STI Emerald and STI Sapphire in June and July
2017, respectively.
(3) In April 2017, the Company refinanced the outstanding
amounts borrowed under the DVB Credit Facility by repaying $86.8
million on this facility and drawing down $81.4 million from the
DVB 2017 Credit Facility.
(4) The Company drew down $20.4 million in April 2017, $21.0
million in June 2017, and $21.0 million in July 2017 from the 2017
Credit Facility to partially finance the purchase of STI Bosphorus,
STI Leblon and STI La Boca, respectively.
(5) In June 2017, prior to the closing of the merger, the
Company acquired certain of NPTI's subsidiaries that own four LR1
tankers (Navig8 Excel, Navig8 Excelsior, Navig8 Expedite and Navig8
Exceed). This transaction closed on June 14, 2017 and the
Company assumed the outstanding indebtedness under NPTI's Credit
Agricole Credit Facility upon closing. The aggregate amount
initially drawn by NPTI under the Credit Agricole Credit Facility
between November 2015 and February 2016 was $128.5 million.
Repayments will be made in equal quarterly installments in
accordance with a 15-year repayment profile with a balloon payment
due upon maturity, which occurs between November 2022 and February
2023 (depending on the vessel). The facility bears interest
at LIBOR plus a margin of 2.75%. The remaining terms and
conditions, including financial covenants, have been amended to be
similar to those in the Company's existing credit facilities.
(6) The Company assumed the outstanding indebtedness under
NPTI's senior secured credit facility with ABN AMRO Bank N.V. and
Korea Trade Insurance Corporation (K-Sure), which we refer to as
the ABN AMRO/K-Sure Credit Facility, upon the closing of the merger
in September 2017. Two LR1s are collateralized under this
facility and the facility consists of two separate tranches, a
$11.5 million commercial tranche and a $46.2 million K-Sure tranche
(which represents the amounts drawn at inception). The
commercial tranche bears interest at LIBOR plus 2.75% and the
K-Sure tranche bears interest at LIBOR plus 1.80%. Repayments
on the K-Sure tranche will be made in equal quarterly installments
in accordance with a 12-year repayment profile, and the commercial
tranche will be repaid via a balloon payment upon maturity in
September and November 2022 (depending on the vessel). The
K-Sure tranche fully matures in September and November 2028
(depending on the vessel), and K-Sure has an option to require
repayment upon the maturity of the commercial tranche if the
commercial tranche is not refinanced by its maturity dates.
The remaining terms and conditions, including financial covenants,
have been amended to be similar to those in the Company's existing
credit facilities.
(7) The Company assumed the outstanding indebtedness under
NPTI's senior secured credit facility with Citibank N.A., London
Branch, Caixabank, S.A., and Korea Trade Insurance Corporation
(K-Sure), which we refer to as the Citi/K-Sure Credit Facility,
upon the closing of the merger in September 2017. Four LR1s
are collateralized under this facility. The facility consists of
two separate tranches, a $25.1 million commercial tranche and a
$100.5 million K-Sure tranche (which represents the amounts drawn
at inception). The commercial tranche bears interest at LIBOR
plus 2.50% and the K-Sure tranche bears interest at LIBOR plus
1.60%. Repayments on the K-Sure tranche will be made in equal
quarterly installments in accordance with a 12-year repayment
profile and the commercial tranche is scheduled to be repaid via a
balloon payment upon the maturity of such tranche which occurs
between March and May 2022 (depending on the vessel). The
K-Sure tranche fully matures between March and May 2028 (depending
on the vessel), and K-Sure has an option to require repayment upon
the maturity of the commercial tranche if the commercial tranche is
not refinanced by its maturity dates. The remaining terms and
conditions, including financial covenants, have been amended to be
similar to those in the Company's existing credit facilities.
(8) The Company assumed the obligations under NPTI’s sale and
leaseback arrangement with Ocean Yield ASA for four LR2 tankers
upon the closing of the merger in September 2017. Under this
arrangement, each vessel is subject to a 13 year bareboat charter,
which expires between February and August 2029 (depending on the
vessel). Charterhire, which is paid monthly in advance,
includes a quarterly adjustment based on prevailing LIBOR
rates.
These arrangements will be accounted for as finance leases, with
a portion of the fixed rate attributed to interest expense and the
remaining portion applied against the principle balance. Future
principal payments are approximately $0.2 million gradually
increasing to $0.3 million per vessel per month until the
expiration of the agreement. The interest component of the leases
approximates LIBOR plus 5.40%. The Company also has purchase
options to re-acquire each of the vessels during the bareboat
charter period, with the first of such options exercisable
beginning at the end of the seventh year from the delivery date of
the subject vessel. The Company is subject to certain terms
and conditions, including financial covenants, under this
arrangement which have been amended to be similar to those in the
Company's existing credit facilities.
(9) The Company assumed the obligations under NPTI’s sale and
leaseback arrangement with CMB Financial Leasing Co. Ltd ("CMBFL")
for two LR1 tankers upon the closing of the merger in September
2017. Under this arrangement, each vessel is subject to a
seven-year bareboat charter which expires in July or August 2023
(depending on the vessel). Charterhire under the arrangement
is comprised of a fixed, quarterly repayment amount of $0.6 million
per vessel plus a variable component calculated at LIBOR plus
3.75%. The Company has purchase options to re-acquire each of
the subject vessels during the bareboat charter period, with the
first of such options exercisable on the third anniversary from the
delivery date of the respective vessel. There is also purchase
obligation for each vessel upon the expiration of the agreement for
$40.2 million in aggregate. These arrangements will be
accounted for as finance leases. The Company is subject to
certain terms and conditions, including financial covenants, under
this arrangement which have been amended to be similar to those in
the Company's existing credit facilities.
(10) The Company assumed the obligations under NPTI’s sale and
leaseback arrangement with Bank of Communications Finance Leasing
Co Ltd., ("BCFL") for three LR2 tankers upon the closing of the
merger in September 2017. Under the arrangement, each vessel
is subject to a 10-year bareboat charter, which expire in July
2026. Charterhire under the arrangement is determined in
advance, on a quarterly basis and is calculated by determining the
payment based off of the then outstanding balance, the time to
expiration and an interest rate of LIBOR plus 3.50%. At
current, prevailing interest rates, future principal payments are
estimated to be $0.2 million gradually increasing to $0.3 million
per vessel per month until the expiration of the agreement.
The Company has purchase options to re-acquire each of the subject
vessels during the bareboat charter period, with the first of such
options exercisable at the end of the fourth year from the delivery
date of the respective vessel. There is also purchase obligation
for each vessel upon the expiration of the agreement for $29.7
million in aggregate. These arrangements will be accounted
for as finance leases.
(11) The Company assumed the obligations under NPTI’s sale and
leaseback arrangement with CSSC (Hong Kong) Shipping Company
Limited ("CSSC") for eight LR2 tankers upon the closing of the
merger in September 2017. Under the arrangement, each vessel
is subject to a 10 year bareboat charter which expire throughout
2026 and 2027 (depending on the vessel). Charterhire under
the arrangement is comprised of a fixed repayment amount of $0.2
million per month per vessel plus a variable component calculated
at LIBOR plus 4.60%. The Company has purchase options to
re-acquire each of the subject vessels during the bareboat charter
period, with the first of such options exercisable at the end of
the fourth year from the delivery date of the respective vessel.
There is also a purchase obligation for each vessel upon the
expiration of the agreement for $111.4 million in aggregate.
These arrangements will be accounted for as finance leases.
(12) In April 2017, the Company completed a cash tender offer of
its 7.50% Senior Notes due October 2017 and repurchased $6.3
million aggregate principal amount of the Senior Notes due
2017.
(13) In March 2017, the Company issued $50.0 million of Senior
Notes due 2019 in an underwritten public offering and in April
2017, the Company issued an additional $7.5 million of Senior Notes
due 2019 when the underwriters fully exercised their option to
purchase additional notes under the same terms and conditions. The
Senior Notes due 2019 mature on June 1, 2019 and bear interest at a
coupon rate of 8.25% per year.
Set forth below are the expected, estimated
future principal repayments on the Company's outstanding
indebtedness which includes amounts due under sale and finance
leaseback arrangements. The principal portion of payments
under the sale and leaseback arrangement with BCFL has been
estimated based off of recent prevailing interest rates:
| |
In millions of U.S. dollars |
| Q3 2017 - principal
payments made to date |
$ |
69.4 |
|
| Q3 2017 - remaining
principal payments |
0.8 |
|
| Q4 2017 |
78.4 |
|
| Q1 2018 |
57.5 |
|
| Q2 2018 |
33.9 |
|
| Q3 2018 |
61.4 |
|
| Q4 2018 |
36.7 |
|
| 2019 and
thereafter |
2,587.7 |
|
| |
|
| |
$ |
2,925.8 |
|
Newbuilding Program
As of June 30, 2017, the Company had six MR
product tankers under construction with HMD and currently has four
MR product tankers under construction with HMD after taking
deliveries of STI Leblon and STI La Boca in July 2017. The
Company refers to these vessels under construction as its
Newbuilding Program.
During the second quarter of 2017, the Company
made installment payments of $57.8 million relating to vessels
under its Newbuilding Program.
Set forth below are the expected future
installment payments and estimated debt drawdowns to partially
finance the purchase vessels under construction as of June 30,
2017(1):
| |
In millions of U.S. dollars |
| Q3 2017 - installment
payments made to date |
$ |
25.3 |
|
| Q3 2017 - remaining
installment payment |
21.6 |
|
| Q4 2017 |
50.5 |
|
| Q1 2018 |
21.6 |
|
| |
|
| |
$ |
119.0 |
|
| Expected future debt
drawdowns (1) |
In millions of U.S. dollars |
|
| Q3 2017 - drawdown made
to date |
$ |
21.0 |
|
(2) |
| Q3 2017 - drawdown to
be made |
20.6 |
|
|
| Q4 2017 |
43.1 |
|
|
| Q1 2018 |
21.6 |
|
|
| |
|
|
| Total expected future
debt drawdowns |
$ |
106.3 |
|
|
(1) The installment payments and debt drawdowns are
estimates only and are subject to change as construction
progresses.(2) As of June 30, 2017, the Company had
$106.3 million available under its 2017 Credit Facility to
partially finance the purchase of five MR product tankers that were
under construction at HMD (the drawdown for the sixth vessel, STI
Leblon, occurred on June 29, 2017 in advance of its delivery on
July 4, 2017. Accordingly, this drawdown is not reflected in
the above table). On July 11, 2017, the Company drew down
$21.0 million to partially finance the purchase of STI La Boca,
which was delivered on July 14, 2017.
Explanation of Variances on the Second Quarter of 2017
Financial Results Compared to the Second Quarter of
2016
For the three months ended June 30, 2017, the
Company recorded a net loss of $68.3 million compared to net income
of $3.8 million for the three months ended June 30, 2016. The
following were the significant changes between the two periods:
- Time charter equivalent, or TCE revenue, a Non-IFRS measure, is
vessel revenues less voyage expenses (including bunkers and port
charges). TCE revenue is included herein because it is a standard
shipping industry performance measure used primarily to compare
period-to-period changes in a shipping company's performance
irrespective of changes in the mix of charter types (i.e., spot
charters, time charters, and pool charters), and it provides useful
information to investors and management. The following table
depicts TCE revenue for the three months ended June 30, 2017 and
2016:
| |
|
|
|
| |
|
|
For the three months ended June
30, |
| In
thousands of U.S. dollars |
|
2017 |
|
2016 |
| |
Vessel revenue |
|
$ |
118,418 |
|
|
$ |
137,214 |
|
| |
Voyage expenses |
|
(912 |
) |
|
(472 |
) |
| |
TCE
revenue |
|
$ |
117,506 |
|
|
$ |
136,742 |
|
| |
|
- TCE revenue decreased $19.2 million to $117.5 million from
$136.7 million for the three months ended June 30, 2017 and 2016,
respectively. This decrease was driven by a decrease in overall
time charter equivalent revenue per day to $13,227 per day from
$16,903 per day for the three months ended June 30, 2017 and 2016,
respectively (see the breakdown of daily TCE below). TCE revenue
per day decreased across all of our operating segments as
unfavorable market conditions that developed during the second half
of 2016, driven by the delivery of newbuildings, high product
inventories, low refining margins and a lack of arbitrage
opportunities, persisted into the first half of 2017.
- Vessel operating costs increased $3.6 million to $49.8 million
from $46.2 million for the three months ended June 30, 2017 and
2016, respectively. This increase was the result of an
increase in the average number of owned and bareboat chartered-in
vessels to 87.9 vessels from 77.2 vessels for the three months
ended June 30, 2017 and 2016, respectively. This increase was
partially offset by an overall decrease in vessel operating costs
per day to $6,233 per day from $6,585 per day for the three months
ended June 30, 2017 and 2016, respectively which was driven by
improvements in our LR2 and MR operating segments (see the
breakdown of daily vessel operating costs below).
- Charterhire expense increased $0.8 million to $19.5 million
from $18.7 million for the three months ended June 30, 2017 and
2016, respectively. The Company's time and bareboat chartered-in
fleet increased to an average of 10.4 time chartered-in vessels and
9.3 bareboat chartered-in vessels from an average of 11.7 time
chartered-in vessels for the three months ended June 30, 2017 and
2016, respectively. There were no bareboat chartered-in
vessels during the three months ended June 30, 2016. This increase
was offset by lower average daily base rates on the time
chartered-in fleet to an average of $14,110 per vessel per day from
an average of $17,425 per vessel per day for the three months ended
June 30, 2017 and 2016, respectively. The average daily base
rate for the Company's bareboat chartered-in fleet was $7,175 per
day for the three months ended June 30, 2017.
- Depreciation expense increased $1.1 million to $31.0 million
from $29.9 million for the three months ended June 30, 2017 and
2016, respectively. This increase was primarily driven by the
delivery of three LR2 tankers (one in 2016, and two during the six
months ended June 30, 2017), the delivery of the 4 LR1 vessels
acquired from NPTI in June 2017 and the delivery of two MR tankers
under our Newbuilding Program during the six months ended June 30,
2017, offset by the sales of five MR tankers during 2017.
- General and administrative expenses decreased $1.4 million to
$11.7 million from $13.1 million for the three months ended June
30, 2017 and 2016, respectively. This decrease was primarily driven
by a reduction in restricted stock amortization.
- Merger transaction related costs of $32.5 million during the
three months ended June 30, 2017 represent costs incurred as part
of the merger with NPTI. These costs include an estimate of
$15.2 million of advisory and other professional fees and $17.3
million of costs related to the early termination of NPTI's
existing service agreements. Approximately $6.0 million of
the termination costs may be settled via the issuance of up to 1.5
million common shares of the Company. See the fifth bullet
under “Merger with Navig8 Product Tankers Inc” above.
- Bargain purchase gain of $5.4 million recorded during the three
months ended June 30, 2017 represents the results of the
initial purchase price allocation which was performed upon the
Company's acquisition of four LR1 vessel owning subsidiaries from
NPTI on June 14, 2017. This transaction was accounted for as a
business combination due to its connection with the merger.
- Financial expenses decreased $1.0 million to $25.0 million from
$26.0 million for the three months ended June 30, 2017 and 2016,
respectively. The decrease was primarily the result of a $3.7
million write-off of deferred financing fees that was recorded
during the three months ended June 30, 2016, as compared to a $0.8
million write-off of deferred financing fees that was recorded
during the three months ended June 30, 2017. This decrease was
offset by an increase in interest expense as a result of (i)
increases in LIBOR rates when compared to the second quarter of
2016, (ii) interest incurred on the Company's newly issued Senior
Notes due 2019, and (iii) a decrease in capitalized interest as a
result of the decrease in the number of vessels under
construction.
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Statements of Income or
Loss |
| (unaudited) |
|
|
| |
|
For the three months ended June
30, |
|
For the six months ended June 30, |
| In
thousands of U.S. dollars except per share and share data |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenue |
|
|
|
|
|
|
|
| |
Vessel
revenue |
$ |
118,418 |
|
|
$ |
137,214 |
|
|
$ |
241,219 |
|
|
$ |
302,342 |
|
| |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
| |
Vessel
operating costs |
(49,838 |
) |
|
(46,237 |
) |
|
(97,986 |
) |
|
(94,272 |
) |
| |
Voyage
expenses |
(912 |
) |
|
(472 |
) |
|
(3,444 |
) |
|
(828 |
) |
| |
Charterhire |
(19,473 |
) |
|
(18,685 |
) |
|
(38,904 |
) |
|
(34,330 |
) |
| |
Depreciation |
(31,039 |
) |
|
(29,885 |
) |
|
(61,541 |
) |
|
(60,089 |
) |
| |
General
and administrative expenses |
(11,692 |
) |
|
(13,085 |
) |
|
(23,602 |
) |
|
(30,102 |
) |
| |
(Loss)/gain on sale of vessels and write down of vessel held for
sale |
(23,352 |
) |
|
137 |
|
|
(23,352 |
) |
|
(2,078 |
) |
| |
Merger
transaction related costs |
(32,530 |
) |
|
— |
|
|
(32,530 |
) |
|
— |
|
| |
Bargain
purchase gain |
5,417 |
|
|
— |
|
|
5,417 |
|
|
— |
|
| |
Total
operating expenses |
(163,419 |
) |
|
(108,227 |
) |
|
(275,942 |
) |
|
(221,699 |
) |
|
Operating (loss) / income |
(45,001 |
) |
|
28,987 |
|
|
(34,723 |
) |
|
80,643 |
|
|
Other (expense) and income, net |
|
|
|
|
|
|
|
| |
Financial
expenses |
(25,030 |
) |
|
(26,010 |
) |
|
(46,694 |
) |
|
(51,231 |
) |
| |
Realized
loss on derivative financial instruments |
— |
|
|
— |
|
|
(116 |
) |
|
— |
|
| |
Unrealized gain on derivative financial instruments |
— |
|
|
429 |
|
|
— |
|
|
1,431 |
|
| |
Financial
income |
436 |
|
|
489 |
|
|
489 |
|
|
1,104 |
|
| |
Other
expenses, net |
1,345 |
|
|
(49 |
) |
|
1,262 |
|
|
(70 |
) |
| |
Total
other expense, net |
(23,249 |
) |
|
(25,141 |
) |
|
(45,059 |
) |
|
(48,766 |
) |
| Net
(loss) / income |
$ |
(68,250 |
) |
|
$ |
3,846 |
|
|
$ |
(79,782 |
) |
|
$ |
31,877 |
|
| |
|
|
|
|
|
|
|
|
|
(Loss) / earnings per share |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Basic |
$ |
(0.38 |
) |
|
$ |
0.02 |
|
|
$ |
(0.46 |
) |
|
$ |
0.20 |
|
| |
Diluted |
$ |
(0.38 |
) |
|
$ |
0.02 |
|
|
$ |
(0.46 |
) |
|
0.19 |
|
| |
Basic
weighted average shares outstanding |
181,378,540 |
|
|
161,381,900 |
|
|
172,096,465 |
|
|
160,931,752 |
|
| |
Diluted
weighted average shares outstanding (1) |
181,378,540 |
|
|
165,943,795 |
|
|
172,096,465 |
|
|
166,306,290 |
|
(1) The dilutive effect of (i) unvested shares
of restricted stock and (ii) the potentially dilutive securities
relating to the Company's Convertible Notes were excluded from the
computation of diluted earnings per share for the three and
six months ended June 30, 2017 because their effect would have been
anti-dilutive. Weighted average shares under the if-converted
method (which includes the potential dilutive effect of both the
unvested shares of restricted stock and our Convertible Notes) were
219,454,258 and 211,015,146 for the three and six months ended June
30, 2017, respectively.
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Balance
Sheets |
| (unaudited) |
| |
| |
As of |
| In thousands of U.S.
dollars |
June 30, 2017 |
|
December 31, 2016 |
|
Assets |
|
|
|
| Current
assets |
|
|
|
| Cash and cash
equivalents |
$ |
280,410 |
|
|
$ |
99,887 |
|
| Accounts
receivable |
38,944 |
|
|
42,329 |
|
| Prepaid expenses and
other current assets |
12,638 |
|
|
9,067 |
|
| Derivative financial
instruments |
— |
|
|
116 |
|
| Inventories |
6,587 |
|
|
6,122 |
|
| Vessel held for
sale |
27,463 |
|
|
— |
|
| Total current
assets |
366,042 |
|
|
157,521 |
|
| Non-current
assets |
|
|
|
| Vessels and
drydock |
3,033,902 |
|
|
2,913,254 |
|
| Vessels under
construction |
103,359 |
|
|
137,917 |
|
| Other assets |
34,290 |
|
|
21,495 |
|
| Restricted cash |
1,708 |
|
|
— |
|
| Total
non-current assets |
3,173,259 |
|
|
3,072,666 |
|
| Total
assets |
$ |
3,539,301 |
|
|
$ |
3,230,187 |
|
| Current
liabilities |
|
|
|
| Current portion of
long-term debt |
$ |
191,275 |
|
|
$ |
353,012 |
|
| Accounts payable |
8,115 |
|
|
9,282 |
|
| Accrued expenses |
69,621 |
|
|
23,024 |
|
| Total current
liabilities |
269,011 |
|
|
385,318 |
|
| Non-current
liabilities |
|
|
|
| Long-term debt |
1,838,050 |
|
|
1,529,669 |
|
| Total
non-current liabilities |
1,838,050 |
|
|
1,529,669 |
|
| Total
liabilities |
2,107,061 |
|
|
1,914,987 |
|
| Shareholders'
equity |
|
|
|
| Issued, authorized and
fully paid-in share capital: |
|
|
|
| Share capital |
2,747 |
|
|
2,247 |
|
| Additional paid-in
capital |
1,953,091 |
|
|
1,756,769 |
|
| Treasury shares |
(443,816 |
) |
|
(443,816 |
) |
| Accumulated
deficit |
(79,782 |
) |
|
— |
|
| Total
shareholders' equity |
1,432,240 |
|
|
1,315,200 |
|
| Total
liabilities and shareholders' equity |
$ |
3,539,301 |
|
|
$ |
3,230,187 |
|
| Scorpio Tankers Inc. and
Subsidiaries |
| Condensed Consolidated Statement of Cash
Flows |
| (unaudited) |
| |
| |
For the six months ended June 30, |
| In thousands of U.S.
dollars |
2017 |
|
2016 |
| Operating
activities |
|
|
|
| Net (loss) /
income |
$ |
(79,782 |
) |
|
$ |
31,877 |
|
| Loss on sales of
vessels and write down of vessel held for sale |
23,352 |
|
|
2,078 |
|
| Depreciation |
61,541 |
|
|
60,089 |
|
| Amortization of
restricted stock |
11,605 |
|
|
15,488 |
|
| Amortization of
deferred financing fees |
6,640 |
|
|
7,440 |
|
| Write-off of deferred
financing fees |
867 |
|
|
5,527 |
|
| Bargain purchase
gain |
(5,417 |
) |
|
— |
|
| Share-based transaction
costs for the acquired four LR1 vessels from NPTI |
5,973 |
|
|
— |
|
| Unrealized gain on
derivative financial instruments |
— |
|
|
(1,431 |
) |
| Amortization of
acquired time charter contracts |
— |
|
|
65 |
|
| Accretion of
Convertible Notes |
6,009 |
|
|
5,740 |
|
| Accretion of fair value
measurement discount for debt assumed on the acquired four LR1
vessels from NPTI |
37 |
|
|
— |
|
| Gain on repurchase of
Convertible Notes |
— |
|
|
(994 |
) |
| |
30,825 |
|
|
125,879 |
|
| Changes in assets and
liabilities: |
|
|
|
| Drydock payments |
(357 |
) |
|
— |
|
| Decrease in
inventories |
132 |
|
|
498 |
|
| Decrease in accounts
receivable |
8,715 |
|
|
15,205 |
|
| Increase in prepaid
expenses and other current assets |
(2,639 |
) |
|
(4,878 |
) |
| (Increase) / decrease
in other assets |
(3,141 |
) |
|
310 |
|
| Decrease in accounts
payable |
(1,110 |
) |
|
(1,033 |
) |
| Increase / (decrease)
in accrued expenses |
27,092 |
|
|
(9,373 |
) |
| |
28,692 |
|
|
729 |
|
| Net cash inflow
from operating activities |
59,517 |
|
|
126,608 |
|
| Investing
activities |
|
|
|
| Acquisition of vessels
and payments for vessels under construction |
(148,197 |
) |
|
(102,872 |
) |
| Proceeds from disposal
of vessels |
99,909 |
|
|
158,175 |
|
| Net cash paid for the
acquisition of the four LR1 vessels from NPTI |
(38,211 |
) |
|
— |
|
| Net cash
(outflow) / inflow from investing activities |
(86,499 |
) |
|
55,303 |
|
| Financing
activities |
|
|
|
| Debt repayments |
(283,473 |
) |
|
(276,586 |
) |
| Issuance of debt |
317,775 |
|
|
146,191 |
|
| Debt issuance
costs |
(10,305 |
) |
|
(3,248 |
) |
| Increase in restricted
cash |
(1,708 |
) |
|
— |
|
| Repayment of
Convertible Notes |
— |
|
|
(8,393 |
) |
| Gross proceeds from
issuance of common stock |
200,000 |
|
|
— |
|
| Equity issuance
costs |
(11,291 |
) |
|
(24 |
) |
| Dividends paid |
(3,493 |
) |
|
(43,259 |
) |
| Repurchase of common
stock |
— |
|
|
(13,707 |
) |
| Net cash inflow
/ (outflow) from financing activities |
207,505 |
|
|
(199,026 |
) |
| Increase /
(decrease) in cash and cash equivalents |
180,523 |
|
|
(17,115 |
) |
| Cash and cash
equivalents at January 1, |
99,887 |
|
|
200,970 |
|
| Cash and cash
equivalents at June 30, |
$ |
280,410 |
|
|
$ |
183,855 |
|
| Scorpio Tankers Inc. and
Subsidiaries |
| Other operating data for the three and six
months ended June 30, 2017 |
| (unaudited) |
|
|
| |
|
For the three months ended June
30, |
|
For the six months ended June 30, |
| |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| Adjusted
EBITDA(1) (in thousands of U.S. dollars) |
|
$ |
43,165 |
|
|
$ |
65,866 |
|
|
$ |
90,034 |
|
|
$ |
158,228 |
|
| |
|
|
|
|
|
|
|
|
| Average Daily
Results |
|
|
|
|
|
|
|
|
| Time charter equivalent
per day(2) |
|
$ |
13,227 |
|
|
$ |
16,903 |
|
|
$ |
13,799 |
|
|
$ |
18,561 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,233 |
|
|
$ |
6,585 |
|
|
$ |
6,370 |
|
|
$ |
6,599 |
|
| |
|
|
|
|
|
|
|
|
| LR2 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
15,021 |
|
|
$ |
20,688 |
|
|
$ |
15,760 |
|
|
$ |
23,963 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,320 |
|
|
$ |
6,562 |
|
|
$ |
6,433 |
|
|
$ |
6,681 |
|
| Average number of owned
vessels |
|
22.6 |
|
|
20.1 |
|
|
21.9 |
|
|
19.6 |
|
| Average number of time
chartered-in vessels |
|
1.0 |
|
|
2.0 |
|
|
1.1 |
|
|
2.0 |
|
| |
|
|
|
|
|
|
|
|
| Panamax/LR1 |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
8,889 |
|
|
$ |
19,149 |
|
|
$ |
10,986 |
|
|
$ |
22,742 |
|
| Vessel operating costs
per day(3) |
|
$ |
5,316 |
|
|
— |
|
|
$ |
5,316 |
|
|
— |
|
| Average number of owned
vessels |
|
0.7 |
|
|
— |
|
|
0.4 |
|
|
— |
|
| Average number of time
chartered-in vessels |
|
0.5 |
|
|
0.7 |
|
|
0.8 |
|
|
0.8 |
|
| |
|
|
|
|
|
|
|
|
| MR |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
13,082 |
|
|
$ |
16,528 |
|
|
$ |
13,254 |
|
|
$ |
17,562 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,135 |
|
|
$ |
6,699 |
|
|
$ |
6,224 |
|
|
$ |
6,639 |
|
| Average number of owned
vessels |
|
41.3 |
|
|
43.1 |
|
|
41.7 |
|
|
44.9 |
|
| Average number of time
chartered-in vessels |
|
6.9 |
|
|
4.0 |
|
|
7.4 |
|
|
4.0 |
|
| Average number of
bareboat chartered-in vessels |
|
2.3 |
|
|
— |
|
|
1.1 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Handymax |
|
|
|
|
|
|
|
|
| TCE per revenue day
(2) |
|
$ |
11,908 |
|
|
$ |
13,382 |
|
|
$ |
13,100 |
|
|
$ |
14,616 |
|
| Vessel operating costs
per day(3) |
|
$ |
6,349 |
|
|
$ |
6,226 |
|
|
$ |
6,626 |
|
|
$ |
6,336 |
|
| Average number of owned
vessels |
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
|
14.0 |
|
| Average number of time
chartered-in vessels |
|
2.0 |
|
|
5.1 |
|
|
2.1 |
|
|
4.2 |
|
| Average number of
bareboat chartered-in vessels |
|
7.0 |
|
|
— |
|
|
5.2 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Fleet
data |
|
|
|
|
|
|
|
|
| Average number of owned
vessels |
|
78.6 |
|
|
77.2 |
|
|
77.9 |
|
|
78.5 |
|
| Average number of time
chartered-in vessels |
|
10.4 |
|
|
11.7 |
|
|
11.4 |
|
|
11.0 |
|
| Average number of
bareboat chartered-in vessels |
|
9.3 |
|
|
— |
|
|
6.3 |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
Drydock |
|
|
|
|
|
|
|
|
| Expenditures for
drydock (in thousands of U.S. dollars) |
|
$ |
357 |
|
|
— |
|
|
$ |
357 |
|
|
— |
|
| (1) |
See
Non-IFRS Measures section below. |
| (2) |
Freight rates are commonly measured in the shipping industry in
terms of time charter equivalent per day (or TCE per day), which is
calculated by subtracting voyage expenses, including bunkers and
port charges, from vessel revenue and dividing the net amount (time
charter equivalent revenues) by the number of revenue days in the
period. Revenue days are the number of days the vessel is owned or
chartered-in less the number of days the vessel is off-hire for
drydock and repairs. |
| (3) |
Vessel operating costs per day represent vessel operating costs
divided by the number of operating days during the period.
Operating days are the total number of available days in a period
with respect to the owned or bareboat chartered-in vessels, before
deducting available days due to off-hire days and days in drydock.
Operating days is a measurement that is only applicable to our
owned, finance leased or bareboat chartered-in vessels, not our
time chartered-in vessels. |
| Fleet list as of September 15,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
|
|
|
|
|
|
| |
Owned or finance leased
vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 |
|
STI Brixton |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
|
|
|
|
|
|
| 2 |
|
STI Comandante |
|
2014 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
|
|
|
|
|
|
| 3 |
|
STI Pimlico |
|
2014 |
|
38,734 |
|
|
1A |
|
Time
Charter (8) |
|
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 (8) |
|
Handymax |
|
|
|
|
|
|
|
| 13 |
|
STI Hammersmith |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
|
|
|
|
|
|
| 14 |
|
STI Rotherhithe |
|
2015 |
|
38,734 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
|
|
|
|
|
|
| 15 |
|
STI Amber |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 16 |
|
STI Topaz |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 17 |
|
STI Ruby |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 18 |
|
STI Garnet |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 19 |
|
STI Onyx |
|
2012 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 20 |
|
STI Fontvieille |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 21 |
|
STI Ville |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 22 |
|
STI Duchessa |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 23 |
|
STI Opera |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 24 |
|
STI Texas City |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 25 |
|
STI Meraux |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 26 |
|
STI San Antonio |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 27 |
|
STI Venere |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 28 |
|
STI Virtus |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 29 |
|
STI Aqua |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 30 |
|
STI Dama |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 31 |
|
STI Benicia |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 32 |
|
STI Regina |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 33 |
|
STI St. Charles |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 34 |
|
STI Mayfair |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 35 |
|
STI Yorkville |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 36 |
|
STI Milwaukee |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 37 |
|
STI Battery |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 38 |
|
STI Soho |
|
2014 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 39 |
|
STI Memphis |
|
2014 |
|
49,995 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 40 |
|
STI Tribeca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 41 |
|
STI Gramercy |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 42 |
|
STI Bronx |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 43 |
|
STI Pontiac |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 44 |
|
STI Manhattan |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 45 |
|
STI Queens |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 46 |
|
STI Osceola |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 47 |
|
STI Notting Hill |
|
2015 |
|
49,687 |
|
|
1B |
|
Time
Charter (9) |
|
MR |
|
|
|
|
|
|
|
| 48 |
|
STI Seneca |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 49 |
|
STI Westminster |
|
2015 |
|
49,687 |
|
|
1B |
|
Time
Charter (9) |
|
MR |
|
|
|
|
|
|
|
| 50 |
|
STI Brooklyn |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 51 |
|
STI Black Hawk |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 52 |
|
STI Galata |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 53 |
|
STI Bosphorus |
|
2017 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
|
|
|
|
|
|
| 54 |
|
STI Leblon |
|
2017 |
|
49,990 |
|
|
— |
|
Spot
(10) |
|
MR |
|
|
|
|
|
|
|
| 55 |
|
STI La Boca |
|
2017 |
|
49,990 |
|
|
— |
|
Spot
(10) |
|
MR |
|
|
|
|
|
|
|
| 56 |
|
Navig8 Excel |
|
2015 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 57 |
|
Navig8 Excelsior |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 58 |
|
Navig8 Expedite |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 59 |
|
Navig8 Exceed |
|
2016 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 60 |
|
Navig8 Executive |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 61 |
|
Navig8 Excellence |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 62 |
|
Navig8 Experience |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 63 |
|
Navig8 Express |
|
2016 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 64 |
|
Navig8 Precision |
|
2016 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 65 |
|
Navig8 Prestige |
|
2016 |
|
74,000 |
|
|
— |
|
SLR1P
(4) |
|
LR1 |
|
|
|
|
|
|
|
| 66 |
|
Navig8 Pride |
|
2016 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 67 |
|
Navig8 Providence |
|
2016 |
|
74,000 |
|
|
— |
|
Navig8
LR8 (3) |
|
LR1 |
|
|
|
|
|
|
|
| 68 |
|
STI Elysees |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 69 |
|
STI Madison |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 70 |
|
STI Park |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 71 |
|
STI Orchard |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 72 |
|
STI Sloane |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 73 |
|
STI Broadway |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 74 |
|
STI Condotti |
|
2014 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 75 |
|
STI Rose |
|
2015 |
|
109,999 |
|
|
— |
|
Time
Charter (11) |
|
LR2 |
|
|
|
|
|
|
|
| 76 |
|
STI Veneto |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 77 |
|
STI Alexis |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 78 |
|
STI Winnie |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 79 |
|
STI Oxford |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 80 |
|
STI Lauren |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 81 |
|
STI Connaught |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 82 |
|
STI Spiga |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 83 |
|
STI Savile Row |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 84 |
|
STI Kingsway |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 85 |
|
STI Carnaby |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 86 |
|
Navig8 Solidarity |
|
2015 |
|
109,999 |
|
|
— |
|
SAPC
(7) |
|
LR2 |
|
|
|
|
|
|
|
| 87 |
|
STI Lombard |
|
2015 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 88 |
|
STI Grace |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 89 |
|
STI Jermyn |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 90 |
|
Navig8 Sanctity |
|
2016 |
|
109,999 |
|
|
— |
|
SAPC
(7) |
|
LR2 |
|
|
|
|
|
|
|
| 91 |
|
Navig8 Solace |
|
2016 |
|
109,999 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
| 92 |
|
Navig8 Stability |
|
2016 |
|
109,999 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
| 93 |
|
Navig8 Steadfast |
|
2016 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 94 |
|
Navig8 Supreme |
|
2016 |
|
109,999 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
| 95 |
|
Navig8 Symphony |
|
2016 |
|
109,999 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
| 96 |
|
STI Selatar |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 97 |
|
STI Rambla |
|
2017 |
|
109,999 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| 98 |
|
Navig8 Gallantry |
|
2016 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
| 99 |
|
Navig8 Goal |
|
2016 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
|
100 |
|
Navig8 Grace |
|
2016 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
|
101 |
|
Navig8 Guard |
|
2016 |
|
113,000 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
|
102 |
|
Navig8 Guide |
|
2016 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
|
103 |
|
Navig8 Gauntlet |
|
2017 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
|
104 |
|
Navig8 Gladiator |
|
2017 |
|
113,000 |
|
|
— |
|
Navig8
Alpha8 (6) |
|
LR2 |
|
|
|
|
|
|
|
|
105 |
|
Navig8 Gratitude |
|
2017 |
|
113,000 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total owned DWT |
|
|
|
7,683,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Year Built |
|
DWT |
|
Ice class |
|
Employment |
|
Vessel type |
|
Charter type |
|
Daily Base Rate |
|
Expiry
(12) |
|
| |
Time or bareboat
chartered-in vessels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106 |
|
Kraslava |
|
2007 |
|
37,258 |
|
|
1B |
|
SHTP
(1) |
|
Handymax |
|
Time
charter |
|
$ |
11,250 |
|
|
13-May-18 |
(13) |
|
107 |
|
Krisjanis
Valdemars |
|
2007 |
|
37,266 |
|
|
1B |
|
SHTP
(1) |
|
Handymax |
|
Time
charter |
|
$ |
11,250 |
|
|
13-Mar-18 |
(14) |
|
108 |
|
Silent |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(15) |
|
109 |
|
Single |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(15) |
|
110 |
|
Star I |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
7,500 |
|
|
31-Mar-19 |
(15) |
|
111 |
|
Sky |
|
2007 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(16) |
|
112 |
|
Steel |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(16) |
|
113 |
|
Stone I |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(16) |
|
114 |
|
Style |
|
2008 |
|
37,847 |
|
|
1A |
|
SHTP
(1) |
|
Handymax |
|
Bareboat |
|
$ |
6,000 |
|
|
31-Mar-19 |
(16) |
|
115 |
|
STI Beryl |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
18-Apr-25 |
(17) |
|
116 |
|
STI Le Rocher |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
21-Apr-25 |
(17) |
|
117 |
|
STI Larvotto |
|
2013 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Bareboat |
|
$ |
8,800 |
|
|
28-Apr-25 |
(17) |
|
118 |
|
Vukovar |
|
2015 |
|
49,990 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
17,034 |
|
|
01-May-18 |
|
|
119 |
|
Zefyros |
|
2013 |
|
49,999 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,000 |
|
|
08-Dec-17 |
(18) |
|
120 |
|
Gan-Trust |
|
2013 |
|
51,561 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,050 |
|
|
06-Jan-18 |
(19) |
|
121 |
|
CPO New Zealand |
|
2011 |
|
51,717 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
15,250 |
|
|
12-Sep-18 |
(20) |
|
122 |
|
CPO Australia |
|
2011 |
|
51,763 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
15,250 |
|
|
01-Sep-18 |
(20) |
|
123 |
|
Ance |
|
2006 |
|
52,622 |
|
|
— |
|
SMRP
(2) |
|
MR |
|
Time
charter |
|
$ |
13,500 |
|
|
12-Oct-18 |
(21) |
|
124 |
|
Densa Crocodile |
|
2015 |
|
105,408 |
|
|
— |
|
SLR2P
(5) |
|
LR2 |
|
Time
charter |
|
$ |
14,750 |
|
|
06-Jan-18 |
(22) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total time or bareboat
chartered-in DWT |
|
|
|
902,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Newbuildings currently
under construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Vessel
Name |
|
Yard |
|
DWT |
|
Vessel type |
|
|
|
|
|
|
|
|
|
|
|
|
125 |
|
Hull 2605 - TBN STI San
Telmo |
|
HMD |
(23) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
126 |
|
Hull 2606 - TBN STI
Donald C Trauscht |
|
HMD |
(23) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
127 |
|
Hull 2607 - TBN STI
Esles II |
|
HMD |
(23) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
|
128 |
|
Hull 2608 - TBN STI
Jardins |
|
HMD |
(23) |
52,000 |
|
|
MR |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total newbuilding
product tankers DWT |
|
|
|
208,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Fleet DWT |
|
|
|
8,793,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
This vessel operates in
or is expected to operate in the Scorpio Handymax Tanker Pool, or
SHTP. SHTP is operated by Scorpio Commercial Management ("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
operated by SCM. SMRP is a related party to the Company. |
| (3) |
This vessel currently
operates in the Navig8 LR8 pool and is expected to join the Scorpio
LR1 Pool before the end of October 2017. |
| (4) |
This vessel operates in
the Scorpio LR1 Pool, or SLR1P. SLR1P is operated by SCM. SLR1P is
a related party to the Company. |
| (5) |
This vessel operates in
the Scorpio LR2 Pool, or SLR2P. SLR2P is operated by SCM. SLR2P is
a related party to the Company. |
| (6) |
This vessel currently
operates in the Navig8 Alpha8 pool and is expected to join the
Scorpio LR2 Pool or Scorpio Aframax Pool before the end of October
2017. |
| (7) |
This vessel operates in
the Scorpio Aframax Pool, or SAPC. SAPC is operated by SCM. SAPC is
a related party to the Company. |
| (8) |
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. |
| (9) |
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. |
| (10) |
This vessel is
currently employed under a short-term time charter-out agreement
with an unrelated third party, following which this vessel is
expected enter the SMRP. We consider short-term time charters
(less than one year) as spot market voyages. |
| (11) |
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. |
| (12) |
Redelivery from the
charterer is plus or minus 30 days from the expiry date. |
| (13) |
We have an option to
extend the charter for an additional year at $13,250 per day. |
| (14) |
We have an option to
extend the charter for an additional year at $13,250 per day. |
| (15) |
This agreement includes
a purchase option which can be exercised through December 31,
2018. If the purchase option is not exercised, the
bareboat-in agreement will expire on March 31, 2019. |
| (16) |
This agreement includes
a purchase option which can be exercised through December 31,
2018. If the purchase option is not exercised, the
bareboat-in agreement will expire on March 31, 2019. |
| (17) |
In April 2017, we sold
and leased back this vessel, on a bareboat basis, for a period of
up to eight years for $8,800 per day. The sales price was
$29.0 million and we have the option to purchase this vessel
beginning at the end of the fifth year of the agreement through the
end of the eighth year of the agreement, at market based prices.
Additionally, a deposit of $4.35 million was retained by the buyer
and will either be applied to the purchase price of the vessel if a
purchase option is exercised, or refunded to us at the expiration
of the agreement. |
| (18) |
We have an option to
extend this charter for an additional six months at $13,250 per day
and should the first option be exercised, an additional option to
extend the charter for an additional year at $14,500 per day. |
| (19) |
We have an option to
extend the charter for an additional year at $15,000 per day. |
| (20) |
We have an option to
extend the charter for an additional year at $16,000 per day. |
| (21) |
In August 2017, we
entered into a new time charter-in agreement for one year at
$13,500 per day. We have an option to extend the charter for
an additional year at $15,000 per day. |
| (22) |
We have an option to
extend this charter for an additional six months at $15,750 per
day. |
| (23) |
These newbuilding
vessels are being constructed at HMD (Hyundai Mipo Dockyard Co.
Ltd. of South Korea). Three vessels are expected to be
delivered throughout the remainder of 2017 and one vessel is
expected to be delivered in the first quarter of 2018. |
Dividend Policy
The declaration and payment of dividends is
subject at all times to the discretion of the Company's Board of
Directors. The timing and amount of dividends, if any, depends on
the Company's earnings, financial condition, cash requirements and
availability, fleet renewal and expansion, restrictions in the loan
agreements, the provisions of Marshall Islands law affecting the
payment of dividends and other factors.
The Company's dividends paid during 2016 and 2017 were as
follows:
| |
Date paid |
Dividends
pershare |
| |
March
2016 |
$0.125 |
| |
June
2016 |
$0.125 |
| |
September 2016 |
$0.125 |
| |
December 2016 |
$0.125 |
| |
March
2017 |
$0.010 |
| |
June
2017 |
$0.010 |
On September 13, 2017, the Company's Board of
Directors declared a quarterly cash dividend of $0.01 per share,
payable on or about September 29, 2017 to all shareholders as of
September 25, 2017 (the record date). As of
September 15, 2017, there were 280,218,861 shares
outstanding.
Securities Repurchase Program
In May 2015, the Company's Board of Directors
authorized a Securities Repurchase Program to purchase up to an
aggregate of $250 million of the Company's securities which, in
addition to its common shares, currently consist of its (i)
Convertible Notes, which were issued in June 2014, (ii) Unsecured
Senior Notes Due 2020 (NYSE:SBNA), which were issued in May 2014,
(iii) Unsecured Senior Notes Due 2017 (NYSE:SBNB), which were
issued in October 2014, and (iv) Unsecured Senior Notes Due 2019
(NYSE:SBBC), which were issued in March 2017.
Since January 1, 2017 through the date of this
press release, we acquired an aggregate of 250,419 of our Senior
Notes due 2017 for aggregate consideration of $6.3 million, which
was the result of the April 2017 cash tender offer of such notes
that commenced in conjunction with the March 2017 issuance of the
Company's Senior Notes due 2019 and concluded in April
2017.
As of the date hereof, the Company has the
authority to purchase up to an additional $147.1 million of its
securities under its Securities Repurchase Program. The Company
expects to repurchase its securities in the open market, at times
and prices that are considered to be appropriate by the Company,
but is not obligated under the terms of the Securities Repurchase
Program to repurchase any of its securities.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine
transportation of petroleum products worldwide. Scorpio Tankers
Inc. currently owns or finance leases 105 product tankers (38 LR2
tankers, 12 LR1 tankers, 41 MR tankers, 14 Handymax tankers) with
an average age of 2.2 years and time or bareboat charters-in 19
product tankers (one LR2 tanker, nine MR tankers and nine Handymax
tankers). The Company has contracted for four newbuilding MR
product tankers, which are expected to be delivered throughout the
remainder of 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
or loss and adjusted EBITDA, which are not measures prepared in
accordance with IFRS (i.e. "Non-IFRS" measures). The Non-IFRS
measures are presented in this press release as we believe that
they provide investors and other users of our financial statements,
such as our lenders, with a means of evaluating and understanding
how the Company's management evaluates the Company's operating
performance. These Non-IFRS measures should not be considered in
isolation from, as substitutes for, or superior to financial
measures prepared in accordance with IFRS.
The Company believes that the presentation of
adjusted net income or loss with adjusted earnings or loss per
share, basic and diluted, and adjusted EBITDA are useful to
investors other users of our financial statements, such as our
lenders, because they facilitate the comparability and the
evaluation of companies in the Company’s industry. In addition, the
Company believes that adjusted net income or loss with adjusted
earnings or loss per share, basic and diluted, and adjusted EBITDA
are useful in evaluating its operating performance compared to that
of other companies in the Company’s industry. The Company’s
definitions of adjusted net income or loss with the adjusted
earnings or loss per share, basic and diluted, and adjusted EBITDA
may not be the same as reported by other companies in the shipping
industry or other industries.
Reconciliation of Net (Loss) / Income to Adjusted Net
(Loss) / Income
| |
|
|
For the three months ended June 30,
2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(68,250 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.38 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
801 |
|
|
— |
|
|
— |
|
|
| |
Merger
transaction related costs |
|
32,530 |
|
|
0.18 |
|
|
0.18 |
|
|
| |
Bargain
purchase gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
| |
Loss on
sale of vessels and write down of vessels held for sale |
|
23,352 |
|
|
0.13 |
|
|
0.13 |
|
|
| |
Adjusted net loss |
|
$ |
(16,984 |
) |
|
$ |
(0.09 |
) |
(1) |
$ |
(0.09 |
) |
(1) |
| |
|
|
For the three months ended June 30,
2016 |
| |
|
|
|
|
Per share |
|
Per share |
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
| |
Net income |
|
$ |
3,846 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
| |
Adjustments: |
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
3,706 |
|
|
0.02 |
|
|
0.02 |
|
| |
Unrealized gain on derivative financial instruments |
|
(429 |
) |
|
— |
|
|
— |
|
| |
Gain on
repurchase of Convertible Notes |
|
(413 |
) |
|
— |
|
|
— |
|
| |
Gain on
sales of vessels |
|
(137 |
) |
|
— |
|
|
— |
|
| |
Adjusted net
income |
|
$ |
6,573 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
| |
|
|
For the six months ended June 30,
2017 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net loss |
|
$ |
(79,782 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.46 |
) |
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
867 |
|
|
0.01 |
|
|
0.01 |
|
|
| |
Merger
transaction related costs |
|
32,530 |
|
|
0.19 |
|
|
0.19 |
|
|
| |
Bargain
purchase gain |
|
(5,417 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
| |
Loss on
sale of vessels and write down of vessels held for sale |
|
23,352 |
|
|
0.13 |
|
|
0.13 |
|
|
| |
Adjusted net loss |
|
$ |
(28,450 |
) |
|
$ |
(0.17 |
) |
(1) |
$ |
(0.17 |
) |
(1) |
| |
|
|
For the six months ended June 30,
2016 |
|
| |
|
|
|
|
Per share |
|
Per share |
|
| In
thousands of U.S. dollars except per share data |
|
Amount |
|
basic |
|
diluted |
|
| |
Net income |
|
$ |
31,877 |
|
|
$ |
0.20 |
|
|
$ |
0.19 |
|
|
| |
Adjustments: |
|
|
|
|
|
|
|
| |
Deferred
financing fees write-off |
|
5,501 |
|
|
0.03 |
|
|
0.03 |
|
|
| |
Unrealized gain on derivative financial instruments |
|
(1,431 |
) |
|
(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 |
|
$ |
37,031 |
|
|
$ |
0.23 |
|
(1) |
$ |
0.22 |
|
(1) |
(1) Summation differences due to rounding
Reconciliation of Net (Loss) / Income to Adjusted
EBITDA
| |
|
|
For the three months ended June
30, |
|
For the six months ended June 30, |
| In
thousands of U.S. dollars |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
Net (loss) /
income |
|
$ |
(68,250 |
) |
|
$ |
3,846 |
|
|
$ |
(79,782 |
) |
|
$ |
31,877 |
|
| |
Financial
expenses |
|
25,030 |
|
|
26,010 |
|
|
46,694 |
|
|
51,231 |
|
| |
Unrealized gain on derivative financial instruments |
|
— |
|
|
(429 |
) |
|
— |
|
|
(1,431 |
) |
| |
Financial
income |
|
(436 |
) |
|
(76 |
) |
|
(489 |
) |
|
(110 |
) |
| |
Depreciation |
|
31,039 |
|
|
29,885 |
|
|
61,541 |
|
|
60,089 |
|
| |
Merger
transaction related costs |
|
32,530 |
|
|
— |
|
|
32,530 |
|
|
— |
|
| |
Bargain
purchase gain |
|
(5,417 |
) |
|
— |
|
|
(5,417 |
) |
|
— |
|
| |
Amortization of restricted stock |
|
5,317 |
|
|
7,180 |
|
|
11,605 |
|
|
15,488 |
|
| |
Loss on
sale of vessels and write down of vessels held for sale |
|
23,352 |
|
|
(137 |
) |
|
23,352 |
|
|
2,078 |
|
| |
Gain on
repurchase of Convertible Notes (recorded within Financial
income) |
|
— |
|
|
(413 |
) |
|
— |
|
|
(994 |
) |
| |
Adjusted EBITDA |
|
$ |
43,165 |
|
|
$ |
65,866 |
|
|
$ |
90,034 |
|
|
$ |
158,228 |
|
Forward-Looking StatementsMatters discussed in
this press release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "may," "should," "expect,"
"pending" and similar expressions identify forward-looking
statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections. We undertake no
obligation, and specifically decline any obligation, except as
required by law, to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
In addition to these important factors, other important factors
that, in our view, could cause actual results to differ materially
from those discussed in the forward-looking statements include,
unforeseen liabilities, future capital expenditures, revenues,
expenses, earnings, synergies, economic performance, indebtedness,
financial condition, losses, future prospects, business and
management strategies for the management, expansion and growth of
our operations, risks relating to the integration of NPTI’s
operations and the possibility that the anticipated synergies and
other benefits of the acquisition will not be realized or will not
be realized within the expected timeframe, the outcome of any legal
proceedings related to the merger and the related transactions, the
failure of counterparties to fully perform their contracts with us,
the strength of world economies and currencies, general market
conditions, including fluctuations in charter rates and vessel
values, changes in demand for tanker vessel capacity, changes in
our operating expenses, including bunker prices, drydocking and
insurance costs, the market for our vessels, availability of
financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires, and other factors. Please
see Scorpio Tankers' filings with the U.S. Securities and Exchange
Commission for a more complete discussion of certain of these and
other risks and uncertainties.
Scorpio Tankers Inc.212-542-1616
Scorpio Tankers (NYSE:SBNA)
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