MONACO, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three and nine months ended September 30, 2024. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend on its common shares of $0.40 per share.
Results for the three months ended September 30, 2024 and 2023
For the three months ended September 30, 2024, the Company had net income of $158.7 million, or $3.31 basic and $3.16 diluted earnings per share.
For the three months ended September 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $87.7 million, or $1.83 basic and $1.75 diluted earnings per share, which excludes from net income (i) a $69.3 million, or $1.45 per basic and $1.38 per diluted share, gain on sales of vessels, (ii) a $2.8 million, or $0.06 per basic and diluted share, gain on sale of a vessel within a joint venture, and (iii) a $1.1 million, or $0.02 per basic and diluted share, fair value loss on financial assets measured at fair value.
For the three months ended September 30, 2023, the Company had net income of $100.4 million, or $2.01 basic and $1.93 diluted earnings per share.
For the three months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $99.2 million, or $1.99 basic and $1.91 diluted earnings per share, which excludes from net income (i) a $6.0 million, or $0.12 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.14 per basic and diluted share, gain on the sale of a vessel.
Results for the nine months ended September 30, 2024 and 2023
For the nine months ended September 30, 2024, the Company had net income of $600.2 million, or $12.18 basic and $11.62 diluted earnings per share.
For the nine months ended September 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $482.6 million, or $9.79 basic and $9.34 diluted earnings per share, which excludes from net income (i) a $124.0 million, or $2.52 per basic and $2.40 per diluted share, gain on sales of vessels, (ii) a $2.8 million, or $0.06 per basic and $0.05 per diluted share, gain on sale of a vessel within a joint venture, (iii) a $1.1 million, or $0.02 per basic and diluted share, fair value loss on financial assets measured at fair value, and (iv) a $8.1 million, or $0.16 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees related to unscheduled debt and lease payments and debt extinguishment costs on certain lease financing obligations.
For the nine months ended September 30, 2023, the Company had net income of $426.0 million, or $8.00 basic and $7.68 diluted earnings per share.
For the nine months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $428.1 million, or $8.04 basic and $7.72 diluted earnings per share, which excludes from net income (i) a $9.3 million, or $0.17 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.13 per basic and diluted share, gain on the sale of a vessel.
Declaration of Dividend
On October 28, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of December 13, 2024 to all shareholders of record as of November 22, 2024 (the record date). As of October 28, 2024, there were 50,525,001 common shares of the Company outstanding.
Summary of Third Quarter 2024 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 voyages and time charters for the Company's vessels (both in the pools and outside of the pools) thus far in the fourth quarter of 2024 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):
| Pool and Spot Market | Time Charters Out of the Pool | ||||||||||
| Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | ||||||
| LR2 | $ | 31,600 | 2,450 | 35 | % | $ | 30,750 | 910 | 100 | % | |
| MR | $ | 20,800 | 3,750 | 35 | % | $ | 22,500 | 500 | 100 | % | |
| Handymax | $ | 13,000 | 1,150 | 34 | % | N/A | N/A | N/A | |||
| (1) Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of expected off-hire days during the period associated with major repairs or drydockings. Consequently, Expected Revenue Days represent the total number of days the vessel is expected to be available to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in revenue days. The Company uses revenue days to show changes in net vessel revenues between periods. | |||||||||||
- Below is a summary of the average daily TCE revenue earned by the Company's vessels during the third quarter of 2024:
| Average Daily TCE Revenue | |||||
| Vessel class | Pool / Spot | Time Charters | |||
| LR2 | $ | 38,011 | $ | 30,872 | |
| MR | $ | 25,146 | $ | 21,824 | |
| Handymax | $ | 19,605 | N/A | ||
- In October 2024, the Company entered into an agreement to sell its 2019 built scrubber fitted LR2 product tanker, STI Lily for $73.5 million. The sale is expected to close within the fourth quarter of 2024. This vessel was collateralized under the 2023 $1.0 Billion Credit Facility and the Company recently repaid $22.9 million of debt on this facility in anticipation of the closing of the sale. This debt repayment did not impact the undrawn amount of $288.2 million that is currently available under the revolving portion of this facility.
- During the third quarter of 2024, the Company entered into agreements to sell two 2014 built scrubber fitted MR product tankers, STI San Antonio and STI Texas City, for $42.5 million per vessel. These sales are expected to close within the fourth quarter of 2024. There will be no debt repayments as a result of these sales as (i) STI San Antonio was recently replaced by STI Memphis as collateral on the 2023 $225.0 million Credit Facility and (ii) STI Texas City was released from the collateral package on the 2023 $117.4 Million Credit Facility given the sufficient headroom under the leverage covenant with the six remaining collateralized vessels under the facility.
- During the third quarter of 2024, the Company invested $89.1 million for a passive, minority interest in DHT Holdings Inc. ("DHT”), a publicly traded crude tanker shipping company which owns a fleet of 28 Very Large Crude Carriers. The Company purchased 7,982,480 common shares in DHT, or 4.9% of the outstanding shares, in the open market at an average price of $11.17 per share during this period. This investment reflects the Company's constructive outlook in this sector.
- During the third quarter of 2024, the Company entered into a three-year time charter-out agreement for the 2018 built MR product tanker, STI Jardins, for $29,550 per day. This vessel is not scrubber-fitted and the time charter commenced in October 2024.
- On July 29, 2024, the Company's Board of Directors replenished and increased the 2023 Securities Repurchase Program to purchase up to an aggregate of $400 million of the Company's securities which, in addition to its common shares also consist of its Unsecured Senior Notes Due 2025 (NYSE: SBBA).
- In July 2024, the Company executed an agreement with the lenders on its 2023 $225.0 Million Credit Facility to convert the then $174.2 million outstanding balance on this facility from a term loan to a revolving credit facility. While the repayment schedule remains unchanged, this amendment gives the Company the flexibility to make unscheduled repayments that can be re-drawn in the future subject to a quarterly amortization profile.
- In September 2024, the Company repaid the outstanding balance of $64.2 million on its BNPP Sinosure Credit Facility. The facility was collateralized by five vessels and bore interest at SOFR plus a blended margin (between the Commercial and Sinosure facilities) of 2.91% per annum.
- During the third quarter of 2024, the Company closed on the sales of six MR product tankers. The 2012 built vessels, STI Garnet, STI Onyx, STI Ruby, and STI Topaz, were sold for $142.5 million in aggregate to three separate buyers. The 2013 built vessel, STI Beryl (which is not scrubber fitted), was sold for $36.6 million and the 2015 built MR product tanker, STI Manhattan, was sold for $40.8 million. The Company did not make any debt repayments as a result of these sales as STI Garnet, STI Onyx, STI Ruby, STI Topaz, and STI Beryl were unencumbered at the time of the sales and STI Manhattan was replaced by STI Notting Hill as collateral for the 2023 $1.0 Billion Credit Facility.
From July 1, 2024 through October 28, 2024, the Company repurchased 3,362,410 of its common shares in the open market at an average price of $73.34 per share under the 2023 Securities Repurchase Program. Since April 1, 2024, the Company has repurchased an aggregate of 4,049,064 of its common shares in the open market at an average price of $74.17 per share.
There is $208.9 million available under the 2023 Securities Repurchase Program as of October 28, 2024.
Diluted Weighted Number of Shares
The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company's equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.
For the three and nine months ended September 30, 2024, the Company's basic weighted average number of shares outstanding were 47,941,734 and 49,285,618, respectively. For the three and nine months ended September 30, 2024, the Company's diluted weighted average number of shares outstanding were 50,150,721 and 51,644,038, respectively, which included the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan.
Conference Call
Title: Scorpio Tankers Inc. Third Quarter 2024 Conference Call
Date: Tuesday October 29, 2024
Time: 9:00 AM Eastern Daylight Time and 2:00 PM Central European Time
The conference call will be available over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com and the webcast link:
https://edge.media-server.com/mmc/p/bcz8upph
Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
The conference will also be available telephonically:
US/CANADA Dial-In Number: 1-833-636-1321
International Dial-In Number: 1-412-902-4260
Please ask to join the Scorpio Tankers Inc. call.
Participants should dial into the call 10 minutes before the scheduled time.
Current Liquidity
As of October 25, 2024, the Company had $220.5 million in unrestricted cash and cash equivalents and $288.2 million of availability under the revolving portion of the 2023 $1.0 Billion Credit Facility. The sale of STI Lily is expected to close within the next two weeks. The sale price is $73.5 million and the debt related to this vessel of $22.9 million has already been repaid in anticipation of closing. The sales of STI Texas City and STI San Antonio are expected to close within the fourth quarter of 2024 for $42.5 million per vessel. There is no debt repayment associated with these sales.
Debt
The following table sets forth the unscheduled debt repayments that the Company recently completed.
| Facility | Repayment date | Principal balance repaid (in millions) | Vessels | ||
| BNPP Sinosure Credit Facility | Sept-24 | $ | 64.2 | STI Park, STI Orchard, STI Elysees, STI Fulham, STI Hackney | |
| Total unscheduled repayments - Q3 2024 | $ | 64.2 | |||
| 2023 $1.0 Billion Credit Facility | Oct-24 | $ | 22.9 | STI Lily | |
| Total unscheduled repayments - Q4 2024 | $ | 22.9 | |||
| In thousands of U.S. Dollars | Outstanding Principal as of June 30, 2024 | Outstanding Principal as of September 30, 2024 | Outstanding Principal as of October 25, 2024 | |||||||||
| 1 | BNPP Sinosure Credit Facility (1) | $ | 64,212 | $ | - | $ | - | |||||
| 2 | 2023 $225.0 Million Credit Facility (2) | 182,625 | 174,150 | 174,150 | ||||||||
| 3 | 2023 $49.1 Million Credit Facility | 43,318 | 42,164 | 42,164 | ||||||||
| 4 | 2023 $117.4 Million Credit Facility | 100,386 | 96,134 | 96,134 | ||||||||
| 5 | 2023 $1.0 Billion Credit Facility (3) | 374,128 | 374,128 | 351,213 | ||||||||
| 6 | 2023 $94.0 Million Credit Facility | 88,075 | 85,658 | 85,658 | ||||||||
| 7 | Ocean Yield Lease Financing | 23,871 | 23,095 | 22,830 | ||||||||
| 8 | 2021 Ocean Yield Lease Financing | 55,166 | 53,691 | 53,194 | ||||||||
| 9 | Unsecured Senior Notes Due 2025 | 70,571 | 70,571 | 70,571 | ||||||||
| Gross debt outstanding | 1,002,352 | 919,591 | 895,914 | |||||||||
| Cash and cash equivalents | 224,649 | 201,001 | 220,527 | |||||||||
| Net debt | $ | 777,703 | $ | 718,590 | $ | 675,387 | ||||||
| (1) | Refer to the preceding table for a description of unscheduled payment activity that has recently occurred. | |||||||||||
| (2) | In July 2024, the Company amended its 2023 $225.0 Million Credit Facility to convert this credit facility from a term loan to a revolving credit facility. The amendment gives the Company the flexibility to make unscheduled repayments on this facility that can be re-drawn in the future. As of October 25, 2024 there is $174.2 million outstanding on this facility and under the amendment, the outstanding and/or availability of the revolving credit facility will continue to amortize quarterly under the same schedule as the original term loan. | |||||||||||
| (3) | In October 2024, the Company gave notice on the 2023 $1.0 Billion Credit Facility to prepay $22.9 million of debt related to STI Lily in anticipation of the closing of the sale of the vessel. This debt repayment did not impact the undrawn amount of $288.2 million that is currently available under the revolving portion of this facility. | |||||||||||
| In millions of U.S. dollars | Repayments/ maturities of unsecured debt | Vessel financings - maturities in 2024 and 2025, including announced prepayments (2) | Vessel financings - scheduled repayments, in addition to maturities in 2026 and thereafter | Total (1) | ||||||||||
| October 1, 2024 to October 25, 2024 | $ | - | $ | 22.9 | $ | 0.8 | $ | 23.7 | ||||||
| Remaining Q4 2024 | - | - | 17.8 | 17.8 | ||||||||||
| Q1 2025 | - | - | 18.5 | 18.5 | ||||||||||
| Q2 2025 | 70.6 | - | 14.6 | 85.2 | ||||||||||
| Q3 2025 | - | - | 14.6 | 14.6 | ||||||||||
| Q4 2025 | - | - | 14.7 | 14.7 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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