SOURCE: Scorpio Tankers Inc.

Scorpio Tankers Inc.

February 13, 2017 07:54 ET

Scorpio Tankers Inc. Announces Financial Results for the Fourth Quarter of 2016 and Declaration of a Quarterly Dividend

MONACO--(Marketwired - February 13, 2017) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers," or the "Company") today reported its results for the three months and year ended December 31, 2016 and declaration of a quarterly dividend.

Results for the three months ended December 31, 2016 and 2015

For the three months ended December 31, 2016, the Company's adjusted net loss (see Non-IFRS Measures section below) was $29.4 million, or $0.18 basic and diluted loss per share, which excludes a $0.2 million, or $0.00 per basic and diluted share, unrealized loss on derivative financial instruments. For the three months ended December 31, 2016, the Company had a net loss of $29.7 million, or $0.18 basic and diluted loss per share.

For the three months ended December 31, 2015, the Company's adjusted net income was $36.3 million (see Non-IFRS Measures section below), or $0.22 basic and $0.21 diluted earnings per share, which excludes (i) a $0.7 million write-off of deferred financing fees, (ii) a $0.7 million write-off of deposits made for options to construct MR product tankers that expired unexercised and (iii) a $0.7 million unrealized loss on derivative financial instruments. The adjustments resulted in an aggregate increase of the Company's net income by $2.1 million, or $0.01 basic and diluted earnings per share. For the three months ended December 31, 2015, the Company had net income of $34.2 million, or $0.21 basic and $0.20 diluted earnings per share.

Results for the years ended December 31, 2016 and 2015

For the year ended December 31, 2016, the Company's adjusted net loss (see Non-IFRS Measures section below) was $10.7 million, or $0.07 basic and diluted loss per share, which excludes (i) a $2.1 million loss on sales of vessels, (ii) an aggregate write-off of $14.5 million of deferred financing fees, (iii) a $1.4 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 Company's Convertible Notes. The adjustments resulted in an aggregate decrease of the Company's net loss by $14.2 million, or $0.08 per basic and diluted share. For the year ended December 31, 2016, the Company had a net loss of $24.9 million, or $0.15 basic and diluted loss per share.

For the year ended December 31, 2015, the Company's adjusted net income was $221.3 million (see Non-IFRS Measures section below), or $1.37 basic and $1.21 diluted earnings per share, which excludes (i) a gain of $1.2 million resulting from the sale of the Company's investment in Dorian, (ii) a gain of $1.4 million resulting from the early termination of a contract on a time chartered-in vessel, (iii) a reserve of $1.4 million for a pool bunker supplier in bankruptcy, (iv) a $2.7 million write-off of deferred financing fees, (v) a $0.7 million write-off of deposits made for options to construct MR product tankers that expired unexercised, (vi) a net loss of $35,000 related to the gains and losses on the sales of four vessels, (vii) a $1.3 million unrealized loss on derivative financial instruments and (viii) a gain of $46,000 resulting from the repurchase of $1.5 million aggregate principal amount of the Company's Convertible Notes. The adjustments resulted in an aggregate increase of the Company's net income by $3.5 million or $0.02 basic and $0.01 diluted earnings per share. For the year ended December 31, 2015, the Company had net income of $217.7 million, or $1.35 basic and $1.20 diluted earnings per share.

Declaration of Dividend

On February 13, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about March 30, 2017 to all shareholders as of February 23, 2017 (the record date). As of February 10, 2017, there were 174,629,755 shares outstanding.

Diluted Weighted Number of Shares

Diluted earnings per share is determined using the if-converted method. Under this method, the Company assumes that the Convertible Notes (which were issued in June 2014) are converted into common shares at the beginning of each period and the interest and non-cash amortization expense associated with these notes of $5.4 million and $21.7 million during the three months and year ended December 31, 2016, respectively, are not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.

For the three months and year ended December 31, 2016, the Company's basic weighted average number of shares were 161,868,161 and 161,118,654, respectively. The weighted average number of shares, both diluted and under the if-converted method, were anti-dilutive for the three months and year ended December 31, 2016 as the Company incurred a net loss. As of the date hereof, the Convertible Notes are not eligible for conversion.

Summary of Recent and Fourth Quarter Significant Events

  • Below is a summary of the average daily TCE revenue and duration for voyages fixed thus far in the first quarter of 2017 as of the date hereof:
    • For the LR2s in the pool: approximately $16,000 per day for 61% of the days
    • For the LR1 in the pool: approximately $14,500 per day for 50% of the days
    • For the MRs in the pool: approximately $14,300 per day for 53% of the days
    • For the ice-class 1A and 1B Handymaxes in the pool: approximately $16,500 per day for 51% of the days
  • Below is a summary of the average daily TCE revenue earned during the fourth quarter of 2016:
    • For the LR2s in the pool: $13,966 per revenue day
    • For the LR1 in the pool: $14,856 per revenue day
    • For the MRs in the pool: $11,677 per revenue day
    • For the Handymaxes in the pool: $10,461 per revenue day
  • Signed a non-binding term sheet to sell and leaseback three MR tankers to an unaffiliated third party. Upon completion, the Company's liquidity is expected to increase by approximately $29.0 million after the repayment of debt.
  • Received a commitment for a credit facility of up to $81.4 million with a final maturity of December 2021 from DVB Bank SE to refinance a previous facility with DVB Bank SE, which financed four product tankers.
  • Received loan commitments from Macquarie Bank Limited (London Branch), DekaBank Deutsche Girozentrale, The Export-Import Bank of Korea ("KEXIM") and Garanti-Instituttet for Eksportkreditt ("GIEK") for a total loan facility of up to $172.0 million. The proceeds of the facility are expected to be used to partially finance eight MR product tankers that are currently under construction at Hyundai Mipo Dockyard Co., Ltd. ("HMD").
  • Took delivery of STI Selatar, an LR2 product tanker that was under construction at Sungdong Shipbuilding and Marine Engineering Co., Ltd. ("SSME"), in February 2017.
  • Upsized the Company's BNP Paribas Credit Facility by $27.6 million, the proceeds of which were used to refinance the existing indebtedness on two MR product tankers.
  • Executed a loan facility with HSH Nordbank AG which was used to refinance the existing indebtedness on two MR product tankers in February 2017.
  • Entered into an agreement to bareboat-in seven Handymax ice-class 1A product tankers for up to two years.
  • Paid a quarterly cash dividend on the Company's common stock of $0.125 per share in December 2016.

DVB 2017 Credit Facility

In January 2017, the Company received a commitment for a credit facility of up to $81.4 million from DVB Bank SE (the "DVB 2017 Credit Facility") to refinance its previous facility with DVB Bank SE. The new credit facility will be used to refinance the existing indebtedness on four product tankers, has a final maturity of December 2021, and bears interest at LIBOR plus a margin of 2.75% per annum. The available borrowings may be used to finance up to 63% of the fair market value of the respective vessels.

The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.

2017 Credit Facility

In January 2017, the Company received commitments from a group of financial institutions led by Macquarie Bank Limited (London Branch) for a total loan facility of up to $172.0 million (the "2017 Credit Facility"). The facility includes two commercial tranches for $15.0 million and $25.0 million, a KEXIM Guaranteed Tranche for $48.0 million, a KEXIM Funded Tranche for $52.0 million, and a GIEK Guaranteed Tranche for $32.0 million.

The loan facility is expected to be used to partially finance the purchase of eight MR product tankers that are currently under construction at HMD. Drawdowns will be available at an amount equal to the lower of 60% of the contract price and 60% of the fair market value of each respective vessel. Other key terms are as follows:

The first commercial tranche of $15.0 million has a final maturity of six years from the drawdown date of each vessel, bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 year repayment profile.

The second commercial tranche of $25.0 million has a final maturity of nine years from the drawdown date of each vessel (assuming KEXIM or GIEK have not exercised their option to call for prepayment of the KEXIM and GIEK funded and guaranteed tranches by the date falling two months prior to the maturity of the first commercial tranche and in the event that the first commercial tranche has not been extended), bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 year repayment profile.

The KEXIM Funded Tranche and GIEK Guaranteed Tranche have a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bear interest at LIBOR plus a margin of 2.15% per annum, and have a 12 year repayment profile.

The KEXIM Guaranteed Tranche has a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bears interest at LIBOR plus a margin of 1.60% per annum, and has a 12 year repayment profile.

The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.

Upsizing of BNP Paribas Credit Facility

In December 2016, the Company upsized its existing credit facility with BNP Paribas by $27.6 million. The $27.6 million increase of the bilateral financing bears interest at LIBOR plus a margin of 2.30% per annum and was used to refinance the existing indebtedness on two MR product tankers (2013 built). In addition, the maturity date of the facility was extended to December 2021. The terms and conditions, including covenants, of the credit facility are similar to those in the Company's existing credit facilities.

HSH Credit Facility

In January 2017, the Company executed a loan facility with HSH Nordbank AG which was fully drawn in February 2017, and the proceeds of $31.1 million were used to refinance the existing indebtedness on two MR product tankers. The facility has a final maturity of five years from the first drawdown date, and bears interest at LIBOR plus a margin of 2.50% per annum. The remaining terms and conditions, including financial covenants, are similar to those in the Company's existing credit facilities.

2011 Credit Facility

As of December 31, 2016, the 2011 Credit Facility, which is scheduled to mature in May 2017, had seven MR product tankers as collateral. Since January 2017, the Company has refinanced two vessels in the BNP Paribas Credit Facility, two vessels in the HSH Credit Facility, and the Company is in discussions to refinance the remaining three vessels.

Time and Bareboat Charter-in Update

In December 2016, the Company entered into agreements to bareboat-in seven Handymax ice-class 1A product tankers. The agreements include purchase options, which can be exercised through December 31, 2018. If the purchase options are not exercised, the bareboat-in agreements expire on March 31, 2019.

Three of the vessels were previously time chartered-in by the Company for $15,600 per day. These time charter-in contracts were cancelled in January 2017 and replaced by the new bareboat contracts at a rate of $7,500 per day. The remaining four vessels will be chartered-in, on a bareboat basis, for $6,000 per day. Two of these vessels were delivered in February 2017 and the remaining two are expected to be delivered within the first quarter of 2017.

In November 2016, the Company extended the time charter-in agreement for an MR product tanker that is currently time chartered-in for an additional year at $13,050 per day effective January 2017. The Company also has an option to extend the charter for an additional year at $15,000 per day.

In October 2016, the Company time chartered-in a 2006 built MR product tanker for one year at $13,500 per day. The Company also has an option to extend the charter for an additional year at $15,000 per day.

$250 Million Securities Repurchase Program

In May 2015, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities, which currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase its securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any of its securities.

Since January 1, 2016 through the date of this press release, the Company has repurchased its securities as follows:

  • An aggregate of 2,956,760 of its common shares at an average price of $5.58 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 shares outstanding as of February 10, 2017.
  • $10.0 million aggregate principal amount of its Convertible Notes at an average price of $839.28 per $1,000 principal amount.

Conference Call

The Company will have a conference call on February 13, 2017 at 9:00 AM Eastern Standard Time and 3:00 PM Central European Time.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 888-417-8527 (U.S.) or 719-325-2439 (International). The conference participant passcode is 5057068. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

Slides and Audio Webcast:

There will also be a simultaneous live webcast over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: https://www.webcaster4.com/Webcast/Page/610/19558

Current Liquidity

As of February 10, 2017, the Company had $91.5 million in cash.

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 September 30, 2016  Drawdowns and repayments, net   Outstanding as of December 31, 2016  Drawdowns and repayments, net   Outstanding as of February 10, 2017  Availability as of February 10, 2017 (5)
2011 Credit Facility (1)  $95.0  $(2.0 ) $93.0   (50.0 ) $43.0   -
K-Sure Credit Facility   317.4   (3.3 )  314.1   (14.9 )  299.2   -
KEXIM Credit Facility   366.6   -    366.6   (4.3 )  362.3   -
ING Credit Facility   126.5   (2.2 )  124.3   (1.1 )  123.2   -
ABN AMRO Credit Facility   132.7   (6.4 )  126.3   (1.7 )  124.6   -
BNP Paribas Credit Facility (2)   32.8   (0.6 )  32.2   27.6    59.8   -
Credit Suisse Credit Facility (3)   -   -    -   29.4    29.4   30.6
Scotiabank Credit Facility   32.7   (0.6 )  32.1   -    32.1   -
NIBC Credit Facility   40.8   (1.0 )  39.8   (1.0 )  38.8   -
2016 Credit Facility   288.0   (6.8 )  281.2   -    281.2   -
DVB Credit Facility   90.0   (1.6 )  88.4   -    88.4   -
HSH Credit Facility (4)   -   -    -   31.1    31.1   -
2020 senior unsecured notes   53.8   -    53.8   -    53.8   -
2017 senior unsecured notes   51.8   -    51.8   -    51.8   -
Convertible Notes   348.5   -    348.5   -    348.5   -
   $1,976.6  $(24.5 ) $1,952.1  $15.1   $1,967.2  $30.6
                           
(1) Activity for the 2011 Credit Facility includes the following repayments in connection with the refinancing of outstanding borrowings thereunder (i) $13.0 million related to STI Sapphire, which was refinanced in January 2017, (ii) $13.3 million related to STI Emerald, which was refinanced in February 2017, (iii) $13.7 million related to STI Duchessa, which was refinanced in February 2017, and (iv) $10.1 million related to STI Onyx, which was refinanced in February 2017.
(2) In December 2016, the Company upsized its existing credit facility with BNP Paribas by $27.6 million. The upsized loan facility was fully drawn in January and February 2017, and the aggregate proceeds of $27.6 million were used to refinance the existing indebtedness on STI Sapphire and STI Emerald, which were previously financed under the 2011 Credit Facility.
(3) In February 2017, the Company took delivery of STI Selatar, an LR2 product tanker from SSME. The Company drew down $29.4 million from this credit facility to partially finance the delivery of the vessel.
(4) In January 2017, the Company executed a loan facility with HSH Nordbank AG. The facility has a maturity of five years from the agreement date and bears interest at LIBOR plus a margin of 2.50% per annum. This facility was fully drawn in February 2017, and the proceeds were used to refinance the existing indebtedness on STI Duchessa and STI Onyx, which were previously financed under the 2011 Credit Facility.
(5) The 2017 Credit Facility and the DVB 2017 Credit Facility will be included in the schedule upon the execution of the loan documentation.
   

Newbuilding Program

The Company currently has nine newbuilding vessel orders (eight MRs and one LR2) with HMD and SSME, which the Company refers to as its Newbuilding Program.

During the fourth quarter of 2016, the Company made installment payments of $12.7 million relating to vessels under its Newbuilding Program.

Set forth below are the installment payments that have been made and are expected to be made in the first quarter of 2017 and future installment payments *:

    
   In millions of U.S. dollars
Q1 2017 - installment payments made to date  $29.2
Q1 2017 - remaining installment payments   56.3
Q2 2017   32.3
Q3 2017   68.2
Q4 2017   50.5
Q1 2018   21.6
     
   $258.1
    

*These are estimates only and are subject to change as construction progresses.

Explanation of Variances on the Fourth Quarter of 2016 Financial Results Compared to the Fourth Quarter of 2015

For the three months ended December 31, 2016, the Company recorded a net loss of $29.7 million compared to net income of $34.2 million for the three months ended December 31, 2015. The following were the significant changes between the two periods:

  • Time charter equivalent, or TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended December 31, 2016 and 2015:
      
   For the three months ended December 31,  
In thousands of U.S. dollars  2016   2015  
 Vessel revenue  $106,068   $178,398  
 Voyage expenses   (420 )  (293 )
 TCE revenue  $105,648   $178,105  
         
  • TCE revenue decreased $72.5 million to $105.6 million from $178.1 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by a decrease in overall time charter equivalent revenue per day to $12,465 per day from $21,057 for the three months ended December 31, 2016 and 2015, respectively (see the breakdown of daily TCE below). TCE revenue per day decreased across all of our operating segments as persistently high refined product inventories along with a lack of arbitrage opportunities have resulted in reduced global product tanker demand.
  • Vessel operating costs decreased $4.0 million to $46.9 million from $50.9 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by a reduction in the number of owned vessels in our fleet to an average of 77.0 vessels from an average of 80.3 vessels for the three months ended December 31, 2016 and 2015, respectively. Additionally, overall vessel operating costs per day decreased to $6,623 per day from $6,891 per day for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by improvements in our LR2 and MR operating segments (see the breakdown of daily vessel operating costs below).
  • Charterhire expense increased $5.3 million to $23.5 million from $18.2 million for the three months ended December 31, 2016 and 2015, respectively. This increase was primarily driven by an increase in the Company's time chartered-in fleet to an average of 15.7 vessels from an average of 11.9 vessels for the three months ended December 31, 2016 and 2015, respectively.
  • Depreciation expense decreased slightly by $0.2 million to $30.7 million from $30.9 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was primarily driven by the mix of the Company's vessels as the average number of owned MRs decreased to 42.0 from 47.0 for the three months ended December 31, 2016 and 2015, respectively, as a result of the sales of five MRs during the first and second quarters of 2016. This decrease was partially offset by an increase in the average number of owned LR2s to 21.0 from 19.0 for the three months ended December 31, 2016 and 2015, respectively, as a result of the deliveries of two LR2s under our Newbuilding Program during the first and second quarters of 2016.
  • General and administrative expenses decreased $5.9 million to $12.3 million from $18.2 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was primarily driven by reductions in compensation expense (which includes a reduction in restricted stock amortization).
  • Financial expenses decreased $2.5 million to $21.7 million from $24.1 million for the three months ended December 31, 2016 and 2015, respectively. The decrease was primarily the result of a decrease in interest expense as the average debt outstanding decreased to $1.9 billion from $2.1 billion for the three months ended December 31, 2016 and 2015, respectively. Additionally, we recorded a $0.7 million write-off of deferred financing fees during the three months ended December 31, 2015. We did not record any write-offs of deferred financing fees during the three months ended December 31, 2016.
  • Unrealized gains and losses on derivative financial instruments relate to the change in the fair value of the profit or loss agreement on one of the Company's time chartered-in vessels with a third party who neither owns nor operates the vessel.
 
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(unaudited)
          
   For the three months ended December 31,   For the year ended December 31,  
In thousands of U.S. dollars except per share and share data  2016   2015   2016   2015  
Revenue                     
 Vessel revenue  $106,068   $178,398   $522,747   $755,711  
                      
Operating expenses                     
 Vessel operating costs   (46,933 )  (50,916 )  (187,120 )  (174,556 )
 Voyage expenses   (420 )  (293 )  (1,578 )  (4,432 )
 Charterhire   (23,521 )  (18,206 )  (78,862 )  (96,865 )
 Depreciation   (30,686 )  (30,874 )  (121,461 )  (107,356 )
 General and administrative expenses   (12,306 )  (18,245 )  (54,899 )  (65,831 )
 Loss on sales of vessels   -    -    (2,078 )  (35 )
 Write-off of vessel purchase options   -    (731 )  -    (731 )
 Gain on sale of Dorian shares   -    -    -    1,179  
 Total operating expenses   (113,866 )  (119,265 )  (445,998 )  (448,627 )
Operating (loss) / income   (7,798 )  59,133    76,749    307,084  
Other (expense) and income, net                     
 Financial expenses   (21,667 )  (24,149 )  (104,048 )  (89,596 )
 Realized gain on derivative financial instruments   -    -    -    55  
 Unrealized (loss) / gain on derivative financial instruments   (229 )  (678 )  1,371    (1,255 )
 Financial income   50    18    1,213    145  
 Other income (expenses), net   (22 )  (112 )  (188 )  1,316  
 Total other expense, net   (21,868 )  (24,921 )  (101,652 )  (89,335 )
Net (loss) / income  $(29,666 ) $34,212   $(24,903 ) $217,749  
                      
(Loss) /earnings per share                     
                      
 Basic  $(0.18 ) $0.21   $(0.15 ) $1.35  
 Diluted  $(0.18 ) $0.20   $(0.15 ) $1.20  
 Basic weighted average shares outstanding   161,868,161    163,792,076    161,118,654    161,436,449  
 Diluted weighted average shares outstanding (1)   161,868,161    202,210,591    161,118,654    199,739,326  
                  
(1) The dilutive effect of (i) unvested shares of restricted stock and (ii) the potentially dilutive securities relating to our Convertible Notes were excluded from the computation of diluted earnings per share for the three months and year ended December 31, 2016 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 199,834,980 and 199,965,014 for the three months and year ended December 31, 2016, respectively.
 
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
      
   As of  
In thousands of U.S. dollars  December 31, 2016   December 31, 2015  
Assets           
Current assets           
Cash and cash equivalents  $99,887   $200,970  
Accounts receivable   42,329    69,017  
Prepaid expenses and other current assets   9,067    3,585  
Derivative financial instruments   116    -  
Inventories   6,122    6,575  
Total current assets   157,521    280,147  
Non-current assets           
Vessels and drydock   2,913,254    3,087,753  
Vessels under construction   137,917    132,218  
Other assets   21,495    23,337  
Total non-current assets   3,072,666    3,243,308  
Total assets  $3,230,187   $3,523,455  
Current liabilities           
Current portion of long-term debt  $353,012   $124,503  
Finance lease liability   -    53,372  
Accounts payable   9,282    25,683  
Accrued expenses   23,024    32,643  
Derivative financial instruments   -    1,175  
Total current liabilities   385,318    237,376  
Non-current liabilities           
Long-term debt   1,529,669    1,872,114  
Derivative financial instruments   -    80  
Total non-current liabilities   1,529,669    1,872,194  
Total liabilities   1,914,987    2,109,570  
Shareholders' equity           
Issued, authorized and fully paid-in share capital:           
Share capital   2,247    2,224  
Additional paid-in capital   1,756,769    1,729,314  
Treasury shares   (443,816 )  (427,311 )
Retained earnings   -    109,658  
Total shareholders' equity   1,315,200    1,413,885  
Total liabilities and shareholders' equity  $3,230,187   $3,523,455  
         
 
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
      
   For the year ended December 31,  
In thousands of U.S. dollars  2016   2015  
Operating activities           
Net (loss) / income  $(24,903 ) $217,749  
Gain on sale of Dorian shares   -    (1,179 )
Loss on sales of vessels   2,078    35  
Write-off of vessel purchase options   -    731  
Depreciation   121,461    107,356  
Amortization of restricted stock   30,207    33,687  
Amortization of deferred financing fees   28,628    17,418  
Unrealized (gain)/loss on derivative financial instruments   (1,371 )  1,255  
Amortization of acquired time charter contracts   65    513  
Accretion of Convertible Notes   11,562    11,096  
Gain on repurchase of Convertible Notes   (994 )  (46 )
    166,733    388,615  
Changes in assets and liabilities:           
Decrease / (increase) in inventories   564    (1,909 )
Decrease in accounts receivable   26,688    9,184  
Increase in prepaid expenses and other current assets   (5,546 )  (1,615 )
Decrease / (increase) in other assets   2,045    (14,153 )
(Decrease) / increase in accounts payable   (2,487 )  775  
(Decrease) / increase in accrued expenses   (9,486 )  11,206  
Interest rate swap termination payment   -    (128 )
    11,778    3,360  
Net cash inflow from operating activities   178,511    391,975  
Investing activities           
Acquisition of vessels and payments for vessels under construction   (126,842 )  (905,397 )
Proceeds from disposal of vessels   158,175    90,820  
Proceeds from sale of Dorian shares   -    142,436  
Deposit returned for vessel purchases   -    (31,277 )
Net cash inflow / (outflow) from investing activities   31,333    (703,418 )
Financing activities           
Debt repayments   (753,431 )  (226,260 )
Issuance of debt   565,028    643,550  
Debt issuance costs   (10,679 )  (8,497 )
Repayment of Convertible Notes   (8,393 )  (1,632 )
Gross proceeds from issuance of common stock   -    159,747  
Equity issuance costs   (24 )  (7,554 )
Dividends paid   (86,923 )  (87,056 )
Repurchase of common stock   (16,505 )  (76,028 )
Net cash (outflow) / inflow from financing activities   (310,927 )  396,270  
(Decrease) / increase in cash and cash equivalents   (101,083 )  84,827  
Cash and cash equivalents at January 1,   200,970    116,143  
Cash and cash equivalents at December 31,  $99,887   $200,970  
         
 
Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three months and year ended December 31, 2016 and 2015
(unaudited)
       
   For the three months ended December 31,  For the year ended December 31,
   2016  2015  2016  2015
Adjusted EBITDA(1) (in thousands of U.S. dollars)  $29,997  $99,520  $230,307  $449,084
                 
Average Daily Results                
Time charter equivalent per day(2)  $12,465  $21,057  $15,783  $23,163
Vessel operating costs per day(3)  $6,623  $6,891  $6,576  $6,564
                 
Aframax/LR2                
TCE per revenue day (2)  $14,523  $26,464  $20,280  $30,544
Vessel operating costs per day(3)  $6,916  $7,330  $6,734  $6,865
Average number of owned vessels   21.0   19.0   20.3   14.6
Average number of time chartered-in vessels   2.0   2.1   2.0   4.0
                 
Panamax/LR1                
TCE per revenue day (2)  $14,856  $21,013  $17,277  $21,804
Vessel operating costs per day(3)   -   -   -  $8,440
Average number of owned vessels   -   -   -   0.7
Average number of time chartered-in vessels   1.0   2.2   0.9   3.9
                 
MR                
TCE per revenue day (2)  $11,981  $19,681  $14,898  $21,803
Vessel operating costs per day(3)  $6,510  $6,838  $6,555  $6,461
Average number of owned vessels   42.0   47.0   43.4   42.6
Average number of time chartered-in vessels   7.7   4.0   5.2   3.6
                 
Handymax                
TCE per revenue day (2)  $11,129  $18,562  $12,615  $19,686
Vessel operating costs per day(3)  $6,522  $6,483  $6,404  $6,473
Average number of owned vessels   14.0   14.3   14.0   14.8
Average number of time chartered-in vessels   5.0   3.6   4.6   5.4
                 
Fleet data                
Average number of owned vessels   77.0   80.3   77.7   72.7
Average number of time chartered-in vessels   15.7   11.9   12.7   16.9
                 
Drydock                
Expenditures for drydock (in thousands of U.S. dollars)   -   -   -   -
             
(1)  See Non-IFRS Measures section below.
(2)  Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. Revenue days are the number of days the vessel is owned less the number of days the vessel is off-hire for drydock and repairs.
(3)  Vessel operating costs per day represent vessel operating costs excluding non-recurring expenses (for example insurance deductible expenses for repairs) divided by the number of days the vessel is owned during the period.
   
 
Fleet list as of February 10, 2017
 
   Vessel Name  Year Built  DWT  Ice class  Employment  Vessel type
   Owned vessels               
1  STI Brixton  2014  38,734  1A  SHTP (1)  Handymax
2  STI Comandante  2014  38,734  1A  SHTP (1)  Handymax
3  STI Pimlico  2014  38,734  1A  Time Charter (5)  Handymax
4  STI Hackney  2014  38,734  1A  SHTP (1)  Handymax
5  STI Acton  2014  38,734  1A  SHTP (1)  Handymax
6  STI Fulham  2014  38,734  1A  SHTP (1)  Handymax
7  STI Camden  2014  38,734  1A  SHTP (1)  Handymax
8  STI Battersea  2014  38,734  1A  SHTP (1)  Handymax
9  STI Wembley  2014  38,734  1A  SHTP (1)  Handymax
10  STI Finchley  2014  38,734  1A  SHTP (1)  Handymax
11  STI Clapham  2014  38,734  1A  SHTP (1)  Handymax
12  STI Poplar  2014  38,734  1A  Time Charter (5)  Handymax
13  STI Hammersmith  2015  38,734  1A  SHTP (1)  Handymax
14  STI Rotherhithe  2015  38,734  1A  SHTP (1)  Handymax
15  STI Amber  2012  49,990  -  SMRP(2)  MR
16  STI Topaz  2012  49,990  -  SMRP(2)  MR
17  STI Ruby  2012  49,990  -  SMRP(2)  MR
18  STI Garnet  2012  49,990  -  SMRP(2)  MR
19  STI Onyx  2012  49,990  -  SMRP(2)  MR
20  STI Sapphire  2013  49,990  -  SMRP(2)  MR
21  STI Emerald  2013  49,990  -  SMRP(2)  MR
22  STI Beryl  2013  49,990  -  SMRP(2)  MR
23  STI Le Rocher  2013  49,990  -  SMRP(2)  MR
24  STI Larvotto  2013  49,990  -  SMRP(2)  MR
25  STI Fontvieille  2013  49,990  -  SMRP(2)  MR
26  STI Ville  2013  49,990  -  SMRP(2)  MR
27  STI Duchessa  2014  49,990  -  SMRP(2)  MR
28  STI Opera  2014  49,990  -  SMRP(2)  MR
29  STI Texas City  2014  49,990  -  SMRP(2)  MR
30  STI Meraux  2014  49,990  -  SMRP(2)  MR
31  STI San Antonio  2014  49,990  -  SMRP(2)  MR
32  STI Venere  2014  49,990  -  SMRP(2)  MR
33  STI Virtus  2014  49,990  -  SMRP(2)  MR
34  STI Aqua  2014  49,990  -  SMRP(2)  MR
35  STI Dama  2014  49,990  -  SMRP(2)  MR
36  STI Benicia  2014  49,990  -  SMRP(2)  MR
37  STI Regina  2014  49,990  -  SMRP(2)  MR
38  STI St. Charles  2014  49,990  -  SMRP(2)  MR
39  STI Mayfair  2014  49,990  -  SMRP(2)  MR
40  STI Yorkville  2014  49,990  -  SMRP(2)  MR
41  STI Milwaukee  2014  49,990  -  SMRP(2)  MR
42  STI Battery  2014  49,990  -  SMRP(2)  MR
43  STI Soho  2014  49,990  -  SMRP(2)  MR
44  STI Memphis  2014  49,995  -  SMRP(2)  MR
45  STI Tribeca  2015  49,990  -  SMRP(2)  MR
46  STI Gramercy  2015  49,990  -  SMRP(2)  MR
47  STI Bronx  2015  49,990  -  SMRP(2)  MR
48  STI Pontiac  2015  49,990  -  SMRP(2)  MR
49  STI Manhattan  2015  49,990  -  SMRP(2)  MR
50  STI Queens  2015  49,990  -  SMRP(2)  MR
51  STI Osceola  2015  49,990  -  SMRP(2)  MR
52  STI Notting Hill  2015  49,687  1B  Time Charter (6)  MR
53  STI Seneca  2015  49,990  -  SMRP(2)  MR
54  STI Westminster  2015  49,687  1B  Time Charter (6)  MR
55  STI Brooklyn  2015  49,990  -  SMRP(2)  MR
56  STI Black Hawk  2015  49,990  -  SMRP(2)  MR
57  STI Elysees  2014  109,999  -  SLR2P (4)  LR2
58  STI Madison  2014  109,999  -  SLR2P (4)  LR2
59  STI Park  2014  109,999  -  SLR2P (4)  LR2
60  STI Orchard  2014  109,999  -  SLR2P (4)  LR2
61  STI Sloane  2014  109,999  -  SLR2P (4)  LR2
62  STI Broadway  2014  109,999  -  SLR2P (4)  LR2
63  STI Condotti  2014  109,999  -  SLR2P (4)  LR2
64  STI Rose  2015  109,999  -  Time Charter (7)  LR2
65  STI Veneto  2015  109,999  -  SLR2P (4)  LR2
66  STI Alexis  2015  109,999  -  SLR2P (4)  LR2
67  STI Winnie  2015  109,999  -  SLR2P (4)  LR2
68  STI Oxford  2015  109,999  -  SLR2P (4)  LR2
69  STI Lauren  2015  109,999  -  SLR2P (4)  LR2
70  STI Connaught  2015  109,999  -  SLR2P (4)  LR2
71  STI Spiga  2015  109,999  -  SLR2P (4)  LR2
72  STI Savile Row  2015  109,999  -  SLR2P (4)  LR2
73  STI Kingsway  2015  109,999  -  SLR2P (4)  LR2
74  STI Carnaby  2015  109,999  -  SLR2P (4)  LR2
75  STI Lombard  2015  109,999  -  SLR2P (4)  LR2
76  STI Grace  2016  109,999  -  SLR2P (4)  LR2
77  STI Jermyn  2016  109,999  -  SLR2P (4)  LR2
78  STI Selatar  2017  109,999  -  SLR2P (4)  LR2
             
   Total owned DWT   5,061,233       
                        
   Vessel Name  Year Built DWT Ice class  Employment  Vessel type Daily Base Rate  Expiry (8)  
   Time or bareboat chartered-in vessels                    
79  Kraslava  2007 37,258 1B  SHTP (1)  Handymax $17,000  02-Jun-17  
80  Krisjanis Valdemars  2007 37,266 1B  SHTP (1)  Handymax $17,000  02-Apr-17  
81  Silent  2007 37,847 1A  SHTP (1)  Handymax $7,500  21-Mar-19 (9)
82  Single  2007 37,847 1A  SHTP (1)  Handymax $7,500  24-Mar-19 (9)
83  Star I  2007 37,847 1A  SHTP (1)  Handymax $7,500  27-Mar-19 (9)
84  Sky  2008 37,879 1A  SHTP (1)  Handymax $6,000  31-Mar-19 (10)
85  Style  2008 37,923 1A  SHTP (1)  Handymax $6,000  31-Mar-19 (10)
86  Miss Mariarosaria  2011 47,499 -  SMRP(2)  MR $16,350  26-May-17  
87  Vukovar  2015 49,990 -  SMRP(2)  MR $17,034  01-May-18  
88  Targale  2007 49,999 -  SMRP(2)  MR $16,200  17-May-17  
89  Zefyros  2013 49,999 -  SMRP(2)  MR $15,800  08-Jul-17 (11)
90  Gan-Trust  2013 51,561 -  SMRP(2)  MR $13,050  06-Jan-18 (12)
91  CPO New Zealand  2011 51,717 -  SMRP(2)  MR $15,250  12-Sep-18 (13)
92  CPO Australia  2011 51,763 -  SMRP(2)  MR $15,250  01-Sep-18 (13)
93  Ance  2006 52,622 -  SMRP(2)  MR $13,500  12-Oct-17 (14)
94  Hellespont Progress  2006 73,728 -  SPTP (3)  LR1 $17,250  13-Apr-17  
95  Densa Alligator  2013 105,708 -  SLR2P (4)  LR2 $18,500  17-Feb-17 (15)
                         
   Total time chartered-in DWT    848,453                
                

                
   Newbuildings currently under construction            
   Vessel Name  Yard     DWT  Vessel type
96  Hull 2601 - TBN STI Galata  HMD  (16)  52,000  MR
97  Hull 2602 - TBN STI Bosphorus  HMD  (16)  52,000  MR
98  Hull 2603 - TBN STI Leblon  HMD  (16)  52,000  MR
99  Hull 2604 - TBN STI La Boca  HMD  (16)  52,000  MR
100  Hull 2605 - TBN STI San Telmo  HMD  (16)  52,000  MR
101  Hull 2606 - TBN STI Jurere  HMD  (16)  52,000  MR
102  Hull 2607 - TBN STI Esles II  HMD  (16)  52,000  MR
103  Hull 2608 - TBN STI Jardins  HMD  (16)  52,000  MR
104  Hull S3121 - TBN STI Rambla  SSME  (17)  109,999  LR2
                
   Total newbuilding product tankers DWT        525,999   
                
   Total Fleet DWT        6,435,685   
                
(1)  This vessel operates in or is expected to operate in the Scorpio Handymax Tanker Pool (SHTP). SHTP is operated by Scorpio Commercial Management (SCM). SHTP and SCM are related parties to the Company.
(2)  This vessel operates in or is expected to operate in the Scorpio MR Pool (SMRP). SMRP is operated by SCM. SMRP is a related party to the Company.
(3)  This vessel operates in or is expected to operate in the Scorpio Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related party to the Company.
(4)  This vessel operates in or is expected to operate in the Scorpio LR2 Pool (SLR2P). SLR2P is operated by SCM. SLR2P is a related party to the Company.
(5)  This vessel is currently time chartered-out to an unrelated third-party for three years at $18,000 per day. This time charter is scheduled to expire in January 2019.
(6)  This vessel is currently time chartered-out to an unrelated third-party for three years at $20,500 per day. This time charter is scheduled to expire in December 2018.
(7)  This vessel is currently time chartered-out to an unrelated third-party for three years at $28,000 per day. This time charter is scheduled to expire in February 2019.
(8)  Redelivery from the charterer is plus or minus 30 days from the expiry date.
(9)  In December 2016, we entered into an agreement to bareboat-in this vessel, which was previously time chartered-in by the Company for $15,600 per day. The time charter-in contract was cancelled in January 2017 and replaced by the new bareboat contract at a rate of $7,500 per day. The 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. This vessel was delivered under the bareboat agreement in January 2017.
(10)  In December 2016, we entered into an agreement to bareboat-in this vessel at a rate of $6,000 per day. The 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. This vessel was delivered under the bareboat agreement in February 2017.
(11)  We have an option to extend the charter for an additional year at $17,000 per day.
(12)  In November 2016, we entered into a new charter agreement for one year at $13,050 per day effective January 2017. We have an option to extend the charter for an additional year at $15,000 per day.
(13)  We have an option to extend the charter for an additional year at $16,000 per day.
(14)  We have an option to extend the charter for an additional year at $15,000 per day.
(15)  We have an option to extend the charter for an additional six months at $20,550 per day.
(16)  These newbuilding vessels are being constructed at HMD (Hyundai Mipo Dockyard Co. Ltd. of South Korea). Seven vessels are expected to be delivered throughout 2017 and one vessel is expected to be delivered in the first quarter of 2018.
(17)  This newbuilding vessel is being constructed at SSME (Sungdong Shipbuilding & Marine Engineering Co., Ltd). This vessel is expected to be delivered in the first quarter of 2017.
   

Dividend Policy

The declaration and payment of dividends is subject at all times to the discretion of the Company's Board of Directors. The timing and amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2015 and 2016 were as follows:

    
Date paid  Dividends per share
March 2015  $0.120
June 2015  $0.125
September 2015  $0.125
December 2015  $0.125
March 2016  $0.125
June 2016  $0.125
September 2016  $0.125
December 2016  $0.125
   

On February 13, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about March 30, 2017 to all shareholders as of February 23, 2017 (the record date). As of February 10, 2017, there were 174,629,755 shares outstanding.

Securities Repurchase Program

In May 2015, the Company's Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities, which currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase any securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any securities.

Since January 1, 2016 through the date of this press release, the Company has repurchased its securities as follows:

  • An aggregate of 2,956,760 of its common shares at an average price of $5.58 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 shares outstanding as of February 10, 2017.
  • $10.0 million aggregate principal amount of its Convertible Notes at an average price of $839.28 per $1,000 principal amount.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 78 product tankers (22 LR2, 14 Handymax, and 42 MR tankers) with an average age of 2.2 years and time or bareboat charters-in 17 product tankers (one LR2, one LR1, eight MR and seven Handymax tankers). The Company has contracted for nine newbuilding product tankers (eight MR and a LR2 tanker). The LR2 is expected to be delivered in the first quarter of 2017 and the eight MRs are expected to be delivered throughout 2017 and the first quarter of 2018. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.

Non-IFRS Measures

Reconciliation of IFRS Financial Information to Non-IFRS Financial Information

This press release describes adjusted net income and adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. "Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

The Company believes that the presentation of adjusted net income with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful to investors because they facilitate the comparability and the evaluation of companies in the Company's industry. In addition, the Company believes that adjusted net income with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Company's industry. The Company's definitions of adjusted net income with the adjusted earnings per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.

 
Reconciliation of Net Income to Adjusted Net Income
      
   For the three months ended December 31, 2016  
 
In thousands of U.S. dollars except per share data
 
 
 
Amount
 
 
 
 
Per share
basic
 
 
 
 
Per share
diluted
 
 
 Net loss  $(29,666 ) $(0.18 ) $(0.18 )
 Adjustments:                
  Unrealized loss on derivative financial instruments   229    0.00    0.00  
 Adjusted net loss  $(29,437 ) $(0.18 ) $(0.18 )
              
    
   For the three months ended December 31, 2015

In thousands of U.S. dollars except per share data
 
Amount
 Per share
basic
 Per share
diluted
 Net income  $34,212  $0.21  $0.20
 Adjustments:            
  Deferred financing fees write-off   720   0.00   0.00
  Write-off of vessel purchase options   731   0.00   0.00
  Unrealized loss on derivative financial instruments   678   0.00   0.00
 Adjusted net income  $36,341  $0.22 (1)  $0.21 (1)
           
(1) Summation differences due to rounding
 
      
   For the year ended December 31, 2016  

In thousands of U.S. dollars except per share data
 
Amount
  Per share
basic
  Per share
diluted
 
 Net loss  $(24,903 ) $(0.15 ) $(0.15 )
 Adjustments:                
  Deferred financing fees write-off   14,479    0.09    0.09  
  Unrealized gain on derivative financial instruments   (1,371 )  (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 loss  $(10,711 ) $(0.07 ) $(0.07 )
              
      
   For the year ended December 31, 2015  

In thousands of U.S. dollars except per share data
 
Amount
  Per share
basic
  Per share
diluted
 
 Net income  $217,749   $1.35   $1.20  
 Adjustments:                
  Deferred financing fees write-off   2,730    0.02    0.01  
  Gain on sale of Dorian shares   (1,179 )  (0.01 )  (0.01 )
  Write-down of vessel held for sale and loss on sales of vessels   35    0.00    0.00  
  Gain on early termination of time chartered-in contract   (1,397 )  (0.01 )  (0.01 )
  Reserve for pool bunker supplier in bankruptcy   1,396    0.01    0.01  
  Unrealized loss on derivative financial instruments   1,255    0.01    0.01  
  Gain on repurchase of Convertible Notes   (46 )  0.00    0.00  
  Write-off of vessel purchase options   731    0.00    0.00  
 Adjusted net income  $221,274   $1.37   $1.21  
              
 
Reconciliation of Net Income to Adjusted EBITDA
          
   For the three months ended December 31,   For the year ended December 31,  
In thousands of U.S. dollars  2016   2015   2016   2015  
 Net (loss) / income  $(29,666 ) $34,212   $(24,903 ) $217,749  
  Financial expenses   21,667    24,149    104,048    89,596  
  Unrealized loss / (gain) on derivative financial instruments   229    678    (1,371 )  1,255  
  Financial income   (50 )  (18 )  (219 )  (145 )
  Depreciation   30,686    30,874    121,461    107,356  
  Amortization of restricted stock   7,131    8,894    30,207    33,687  
  Write-off of vessel purchase options   -    731    -    731  
  Gain on sale of Dorian shares   -    -    -    (1,179 )
  Loss on sales of vessels   -    -    2,078    35  
  Gain on repurchase of Convertible Notes   -    -    (994 )  -  
  Gain on early termination of time chartered-in contract   -    -    -    (1,397 )
  Reserve for pool bunker supplier in bankruptcy   -    -    -    1,396  
 Adjusted EBITDA  $29,997   $99,520   $230,307   $449,084  
                  

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Contact Information

  • Scorpio Tankers Inc.
    212-542-1616