SOURCE: Scorpio Tankers Inc.

Scorpio Tankers Inc.

November 15, 2010 16:10 ET

Scorpio Tankers Inc. Announces Third Quarter Results and Delivery of STI Spirit

MONACO--(Marketwire - November 15, 2010) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers", or the "Company") today reported its results for the three and nine months ended September 30, 2010.

The Company recorded a net loss of $1.6 million or $0.09 basic and $0.09 diluted loss per share for the three months ended September 30, 2010 compared to a net loss of $3.1 million or $0.56 basic and $0.56 diluted loss per share for the three months ended September 30, 2009. The net loss for the three months ended September 30, 2009 included an impairment charge of $4.5 million or $0.81 basic and $0.81 diluted charge per share for Senatore and Noemi. The weighted average number of shares outstanding was 18,406,338 (basic and diluted) for the three months ended September 30, 2010, and 5,589,147 (basic and diluted) for the three months ended September 30, 2009.

The Company recorded a net loss of $0.1 million or $0.01 basic and diluted loss per share for the nine months ended September 30, 2010 compared to net income of $1.7 million or $0.31 basic and diluted earnings per share for the nine months ended September 30, 2009. The net income for the nine months ended September 30, 2009 included an impairment charge of $4.5 million or $0.81 basic and diluted charge per share for Senatore and Noemi. The weighted average number of shares outstanding was 13,896,039 (basic and diluted) for the nine months ended September 30, 2010, and 5,589,147 (basic and diluted) for the nine months ended September 30, 2009.

Emanuele Lauro, chief executive officer and chairman of the board commented, "Even though the net loss in the third quarter of 2010 reflected the weak spot market fundamentals, our net cash inflow from continuing operating activities before changes in assets and liabilities in the third quarter of 2010 was $3.6 million or $0.20 per share. While painful for all market participants, we see the continuing draw down of floating and onshore storage of refined products, and the consequent low levels of chartering activity, as a necessary precondition for a sustained recovery."

Mr. Lauro continued, "Specifically with respect to the Company, these results reflect three concurrent events. First, Senatore was redelivered to us in late August 2010, as her fixed rate charter to BP expired. The vessel was on the spot market for 10 days before joining the Scorpio Panamax Tanker Pool. Second, two of our vessels were off-hire, in drydock, for a total of 24 operating days this quarter. Lastly, we took delivery of three Handymax vessels during the quarter. These vessels and a Handymax tanker that was acquired in the second quarter operated in the spot market for 140 days before they could enter the Scorpio Handymax Tanker Pool. If these five vessels had operated in the pools from the date of delivery, revenue and net income would have been higher."

Mr. Lauro continued, "Though market conditions remain difficult, we continue to focus on our balance sheet and our ability to execute vessel acquisitions when opportunities arise. We are pleased with the delivery on November 10, 2010 of STI Spirit. The successful acquisition of this vessel, with the related fixed price purchase options on two additional LR1 product tankers, illustrates our strategy of expanding our fleet through opportunistic acquisitions of high-quality vessels at attractive prices. We see further opportunities ahead in the market and would look to act in a measured and methodical fashion during the current rough conditions."

Recent Highlights

Delivery of STI Spirit

On November 10, 2010, Scorpio Tankers took delivery of a LR2 product tanker, STI Spirit, that the Company previously agreed to acquire in September 2010 for $52.2 million. The ship, which was built in 2008, will operate in the Scorpio Aframax Tanker Pool, which is owned by a related party.

Options to Acquire to Two LR1 Product Tankers

The agreement in September 2010 to purchase STI Spirit included options to acquire two ships. Each option grants the Company the right, but not the obligation, to purchase a 2008-built LR1 ice class-1A product tanker (approximately 63,600 dead weight tons each) for a price of $45.0 million. Each option can be exercised at any time until September 2011.

Potential Sale of STI Highlander

In November 2010, Scorpio Tankers entered into an agreement pursuant to which the counterparty has the option to purchase the STI Highlander from us for an aggregate purchase price of $32.5 million. The buyer is required to notify the Company if it intends to exercise such option by November 23, 2010.

New Credit Facility

On November 5, 2010, Scorpio Tankers entered into a committed term sheet with DVB SE for a senior secured term loan facility of $28.6 million for the partial financing of STI Spirit, which was delivered on November 10, 2010. The availability period for the drawdown is the date of definitive documentation for the loan agreement until December 31, 2010.

Vessel Acquisitions in the Third Quarter

In July and August 2010, Scorpio Tankers took delivery of three Handymax coated tankers (STI Matador, STI Gladiator, and STI Highlander) that the Company previously agreed to acquire for an aggregate purchase price of $73.0 million. These vessels trade in the Scorpio Handymax Tanker Pool, which is owned by a related party.

Drydocks

STI Heritage and STI Conqueror were drydocked in the third quarter of 2010. The aggregated drydock cost for these vessels was $0.8 million and they were off-hire for 24 days. STI Highlander is scheduled to be drydocked in the fourth quarter of 2010 or early in the first quarter of 2011. The estimated cost of the drydock for this vessel is $0.7 million.

Share Buyback

As of November 12, 2010, the Company has repurchased 244,146 of its shares for $2.6 million at an average price per share, including commissions, of $10.85.

Other 2010 highlights

Vessel Acquisitions in the Second Quarter

In the first half of June 2010, Scorpio Tankers took delivery of three coated tankers that the Company previously agreed to acquire. STI Conqueror, a Handymax ice class 1B ship, was acquired for $26.0 million and trades in the Scorpio Handymax Tanker Pool, which is owned by a related party. STI Harmony and STI Heritage, LR1 ice class 1A sister ships, were acquired for an aggregate price of $92.0 million, which included $2.3 million for the value of the existing time charter contracts (see fleet list below for more information). The value of the time charter contracts is amortized as a reduction to vessel revenue over the remaining life the time charter contracts.

Initial Public Offering and Exercise of Over-Allotment Option

On April 6, 2010, the Company closed on the sale of 12,500,000 shares of common stock at $13.00 per share in its initial public offering and received net proceeds of $149.6 million after deducting underwriters' discounts and offering expenses. On May 4, 2010, the Company issued 450,000 shares of common stock at $13.00 and received $5.2 million, after deducting underwriters' discounts, when the underwriters partially exercised their over-allotment option.

Credit Facilities

On April 9, 2010, the Company repaid in full the outstanding balance of $38.9 million of the 2005 Credit Facility from the proceeds of its initial public offering. Scorpio Tankers also terminated the interest rate swap agreement related to the 2005 Credit Facility by paying $1.9 million, which was the market value of the swap.

On June 2, 2010, the Company executed the $150 million credit facility (2010 Credit Facility), which will be used to partially finance vessel acquisitions. The Company had outstanding borrowings under this facility of $19.0 million at June 30, 2010, $123.8 million at September 30, 2010, and $148.6 million at November 15, 2010.

Change in Vessel Useful Lives

In the second quarter of 2010, the Company changed the depreciable life of its vessels from 20 years to 25 years. This change was applied prospectively and aligns the vessels with their estimated useful life and is consistent with industry standards.

Senatore Off-Hire

On April 25, 2010, Senatore, one of the Company's LR-1 tankers on time charter, suffered damage to one of its ballast tanks. This resulted in the vessel being off-hire for 17 days in the second quarter while the vessel was being repaired.

Business Strategy, Dividend Policy, and Share Buyback Program

Business Strategy

The Company's primary objectives are to profitably grow the business and emerge as a major operator of medium-sized tanker vessels. The Company intends to acquire modern, high-quality tankers through timely and selective acquisitions. It is currently concentrating on product or coated tankers because of the fundamentals of this segment, which the Company believes includes:

--  Increasing demand for refined products
--  Increasing ton miles (distance between new refiners and areas of
    demand)
--  Reduced order book

Dividend Policy

We do not have immediate plans to pay dividends, but we will continue to assess our dividend policy. In the future, our board of directors may determine it is in the best interest of the Company to pay dividends.

Share Buyback Program

On July 9, 2010, the Board of Directors authorized a share buyback program of up to $20 million. Scorpio Tankers expects to repurchase these shares 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 program to repurchase any shares.

Explanation of Variances on the Third Quarter Results

The net loss for the three months ended September 30, 2010 was $1.6 million, and the net loss for the three months ended September 30, 2009 was $3.1 million. The following were the significant changes between the two periods:

--  Vessel revenue increased $7.8 million as a result of an increase in the
    average number of operating vessels for the three month periods ended
    September 2009 and 2010 from 3.00 to 8.24, respectively. This increase
    was offset by a decrease in daily time charter equivalent per vessel,
    from $21,967 to $15,234 (see the breakdown of daily TCE averages
    below).  Other items affecting revenue for the three months ended
    September 30, 2010 included:
    --  Vessels operated in the spot market for 150 days prior to entry in
        their respective pools during the third quarter of 2010.  Spot
        market rates during this quarter were $6,996 per vessel per day,
        compared to $12,472 per vessel per day for vessels that operated
        in the pools.
    --  The amortization of time charter contracts acquired on the STI
        Harmony and STI Heritage which was $1.4 million and $1.8 million
        for the three and nine month periods ended September 30, 2010,
        respectively.
    --  A total of 24 off-hire days for the drydock of the STI Heritage and
        STI Conqueror during the third quarter of 2010.
    --  The expiration of the time charter contracts for STI Harmony and
        Senatore.

--  Vessel operating costs increased $4.2 million as a result of (i) the
    increase in the average number of operating vessels noted above and
    (ii) an increase in daily operating expenses from $6,640 to $7,950 for
    the three month periods ended September 30, 2009 and 2010,
    respectively.

--  Voyage expenses increased $2.1 million as STI Conqueror, STI Matador,
    STI Gladiator and STI Highlander were operating in the spot market for
    an aggregate of 140 days prior to their entry in the Scorpio Handymax
    Tanker Pool.  Additionally, the time charter agreement for the Senatore
    expired on August 26, 2010, and it subsequently operated in the spot
    market for 10 days prior to its entry in the Scorpio Panamax Tanker
    Pool on September 6, 2010.

--  Impairment charges of $4.5 million were incurred on the Noemi and
    Senatore in the three month period ended September 30, 2009.  No such
    impairment was recorded during the three month period ended September
    30, 2010.

--  The increase in general and administrative expense of $2.1 million was
    primarily driven by an increase in the Company's overhead as a result
    of incremental costs incurred to operate as a public company.  This was
    specifically driven by an increase in officers' salaries, amortization
    of restricted stock issued in June 2010, professional fees, and other
    related expenses.

--  Interest expense increased $1.1 million.
    --  The three months ended September 30, 2010 included:
        --  Interest expense of $1.0 million from the 2010 Credit Facility.

        --  $0.1 million of lender commitment fees on the undrawn portion
            of the Company's 2010 Credit Facility.

        --  $0.1 of amortization of deferred financing fees.

    --  The three months ended September 30, 2009 included interest expense
        on the 2005 Credit Facility of $0.1 million.

--  The net change in the realized and unrealized derivative financial
    instruments (i.e. interest rate swap) and other expenses was a decrease
    of $0.4 million.  The interest rate swap, which was related to the 2005
    Credit Facility, was terminated on April 9, 2010.  



                  Scorpio Tankers Inc. and Subsidiaries
                 Condensed Consolidated Income Statements
                                (unaudited)



                    For the Three Months Ended  For the Nine Months Ended
                          September 30,               September 30,
                    --------------------------  --------------------------
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------
Revenue:
  Vessel revenue    $ 13,358,211  $  5,502,542  $ 26,775,939  $ 21,752,091
Operating expenses:
  Vessel operating
   costs              (6,032,457)   (1,814,913)  (11,339,231)   (6,397,434)
  Voyage expenses     (2,136,453)            -    (2,509,862)            -
  Charter hire                 -             -             -    (3,163,485)
  Impairment                   -    (4,511,877)            -    (4,511,877)
  Depreciation        (3,371,725)   (1,599,153)   (6,673,217)   (5,155,675)
  General and
   administrative
   expenses           (2,215,743)     (122,964)   (3,715,636)     (304,404)
                    ------------  ------------  ------------  ------------
  Total operating
   expenses          (13,756,378)   (8,048,907)  (24,237,946)  (19,532,875)
                    ------------  ------------  ------------  ------------
Operating income        (398,167)   (2,546,365)    2,537,993     2,219,216
                    ------------  ------------  ------------  ------------
Other (expense) and
 income, net:
  Interest
   expense - bank
   loan               (1,220,498)     (143,978)   (1,917,063)     (590,372)
  Realized loss on
   derivative
   financial
   instruments                 -      (216,748)     (279,560)     (580,104)
  Unrealized gain
   on derivative
   financial
   instruments                 -      (228,746)            -       667,652
  Interest income          1,480           623        30,873         4,754
  Other expense,
   net                   (31,496)       (3,245)     (456,418)      (10,925)
                    ------------  ------------  ------------  ------------ 
  Total other
   (expense) and
   income, net        (1,250,514)     (592,094)   (2,622,168)     (508,995)
                    ------------  ------------  ------------  ------------
Net (loss)/ Income  $ (1,648,681) $ (3,138,459) $    (84,175) $  1,710,221
                    ============  ============  ============  ============
  Attributable to:
  Equity holders of
   the parent       $ (1,648,681) $ (3,138,459) $    (84,175) $  1,710,221
Earnings per share:
  Basic             $      (0.09) $      (0.56) $      (0.01) $       0.31
  Diluted           $      (0.09) $      (0.56) $      (0.01) $       0.31
  Basic Weighted
   average shares
   outstanding        18,406,338     5,589,147    13,896,039     5,589,147
  Diluted Weighted
   average shares
   outstanding (1)    18,406,338     5,589,147    13,896,039     5,589,147


(1) The effect of diluted weighted shares outstanding for the three and
    nine month periods ended September 30, 2010 would be anti-dilutive
    since the Company is in a net loss position.  As such, there is no
    difference between basic and diluted earnings per share for those
    periods.





                  Scorpio Tankers Inc. and Subsidiaries
                   Condensed Consolidated Balance Sheet
                                (unaudited)



                                                          As of
                                              September 30,  December 31,
                                                  2010           2009
                                              -------------  --------------
Assets
Current assets
Cash and cash equivalents                     $  42,598,075  $      444,496
Accounts receivable                               6,664,191       1,438,998
Prepaid expenses                                    503,417         583,944
Shareholder receivable                                    -       1,928,253
Inventories                                       1,098,332         433,428
                                              -------------  --------------
Total current assets                             50,864,015       4,829,119
Non-current assets
Vessels and drydock                             284,319,636      99,594,267
Deposits on vessel purchases                      5,216,080               -
Acquired time charter contracts                     573,344               -
Other                                                 2,395               -
                                              -------------  --------------
Total non-current assets                        290,111,455      99,594,267
                                              -------------  --------------
Total assets                                  $ 340,975,470  $  104,423,386
                                              =============  ==============

Current liabilities
Bank loan                                        13,179,340       3,600,000
Accounts payable                                  2,591,404         656,002
Accrued expenses                                  2,685,445         953,532
Derivative financial instruments                          -         814,206
                                              -------------  --------------
Total current liabilities                        18,456,189       6,023,740
Non-current liabilities
Bank loan                                       108,619,120      36,200,000
Derivative financial instruments                          -         871,104
                                              -------------  --------------
Total non-current liabilities                   108,619,120      37,071,104
                                              -------------  --------------
Total liabilities                               127,075,309      43,094,844
                                              -------------  --------------

Shareholders' equity
Issued, authorized and fully paid in share
 capital
Share capital                                       191,076          55,891
Additional paid-in capital                      201,440,755      46,272,339
Merger reserve                                   13,292,496      13,292,496
Treasury shares                                  (2,647,807)              -
Retained earnings                                 1,623,641       1,707,816
                                              -------------  --------------
Total shareholders' equity                      213,900,161      61,328,542
                                              -------------  --------------
Total liabilities and shareholders' equity    $ 340,975,470  $  104,423,386
                                              =============  ==============





                  Scorpio Tankers Inc. and Subsidiaries
              Condensed Consolidated Statement of Cash Flows
                                (unaudited)



                                                For the Nine Months Ended
                                                      September 30,
                                              ----------------------------
                                                  2010           2009
                                              -------------  -------------
Operating activities
Net (loss)/income                             $     (84,175) $   1,710,221
Depreciation                                      6,673,217      5,155,675
Vessel impairment                                         -      4,511,877
Amortization of restricted stock                    531,178              -
Amortization of deferred financing fees             138,941              -
Amortization of acquired time charter
 contracts                                        1,771,151              -
Unrealized loss/(gain) on derivatives               164,690       (667,652)
                                              -------------  -------------
                                                  9,195,002     10,710,121
                                              -------------  -------------
Changes in assets and liabilities:
Drydock payments                                   (525,102)    (1,253,841)
Increase in inventories                            (664,904)        42,189
(Increase)/decrease in accounts receivable       (5,225,192)     1,904,406
Decrease/(increase) in prepaid expenses              80,527        (29,830)
Increase/(decrease) in accounts payable           1,622,026       (135,406)
Increase/(decrease) in accrued expenses           1,737,312       (242,539)
Interest rate swap termination payment           (1,850,000)             -
Increase/(decrease) in shareholder receivable     1,928,253     (2,760,987)
                                              -------------  -------------
                                                 (2,897,080)    (2,476,008)
                                              -------------  -------------
Net cash inflow from operating activities         6,297,922      8,234,113
                                              -------------  -------------
Investing activities
Acquisition of vessels                         (190,565,509)             -
Deposits on vessel purchases                     (5,216,080)             -
Acquisition of time charter contracts            (2,344,495)             -
Other                                                (2,395)             -
                                              -------------  -------------
Net cash outflow from investing activities     (198,128,479)             -
                                              -------------  -------------
Financing activities
Dividends paid                                            -     (8,661,000)
Bank loan repayment                             (41,225,388)    (2,700,000)
Proceeds of long term debt                      125,187,500              -
Debt issuance fees                               (2,102,593)             -
Net proceeds from issuance of common stock      154,772,423              -
Acquisition of Treasury Shares                   (2,647,806)             -
                                              -------------  -------------
Net cash inflow/(outflow) from financing
 activities                                     233,984,136    (11,361,000)
                                              -------------  -------------
Increase/(decrease) in cash and cash
 equivalents                                     42,153,579     (3,126,887)
Cash and cash equivalents at January 1,             444,496      3,607,635
                                              -------------  -------------
Cash and cash equivalents at September 30,    $  42,598,075  $     480,748
                                              =============  =============
Supplemental information:
Interest paid                                 $     620,995  $     650,478





  Average Daily Results for the three and nine months ended
                   September 30, 2010 and 2009



                             For the Three Months     For the Nine Months
                              Ended September 30,     Ended September 30,
                            ----------------------- -----------------------
                               2010        2009        2010        2009
                            ----------- ----------- ----------- -----------
Average Daily Results
Time charter equivalent per
 day(1)(2)                  $    15,234 $    21,967 $    18,088 $    24,156
Vessel operating costs per
 day(3)                     $     7,950 $     6,640 $     8,411 $     7,811
TCE per revenue day - pool  $    12,472 $    15,881 $    14,988 $    23,023
TCE per revenue day -
 spot(4)                    $     6,996 $         - $     7,933 $         -
TCE per revenue day - time
 charters (2)               $    21,490 $    25,500 $    22,611 $    25,037
Fleet data
Average number of owned
 vessels                           8.24        3.00        4.94        3.00
Average number of time
 chartered-in vessels                 -           -           -        0.44
Drydock
Expenditures for drydock    $   833,078 $ 1,049,592 $   833,078 $ 1,619,567


1. Freight rates are commonly measured in the shipping industry in terms
   of time charter equivalent per day (or TCE per day), which represent
   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.

2. In June 2010, STI Harmony and STI Heritage were acquired with existing
   time charters that entitle the Company to receive $25,500 per day, per
   vessel.  The allocated value of the time charter contracts was $2.3
   million, and the amortization of the contracts, which was recorded as
   reduction to revenue, for the three and nine months ended September 30,
   2010 was $1.4 million and $1.8 million, respectively

3. Vessel operating costs per day represent vessel operating costs divided
   by the number of days the vessel is owned during the period.

4. Vessels may operate on voyage charter prior to their entry into their
   respective pools.  In the third quarter, we had an aggregate of 150 days
   of vessels operating in the spot market, namely for the Senatore, STI
   Conqueror, STI Matador, STI Gladiator and STI Highlander.  All of these
   vessels are now operating in their respective pools.




                    Fleet List as of November 15, 2010



                                                          Time Charter Info
                                                         ------------------
                                                           Daily
                    Year          Ice                      Base    Expiry
      Vessel Name   Built   DWT   Class   Employment       Rate      (1)
     -------------- ----- ------- ----- ---------------  -------- ---------

1    Noemi           2004  72,515     - Time Charter (2) $ 24,500 21-Jan-12
2    Senatore        2004  72,514     -         SPTP (3)      N/A       N/A
3    Venice          2001  81,408    1C         SPTP (3)      N/A       N/A
4    STI Conqueror   2005  40,158    1B         SHTP (4)      N/A       N/A
5    STI Harmony     2007  73,919    1A         SHTP (4)      N/A       N/A
6    STI Heritage    2008  73,919    1A Time Charter (5) $ 25,500 08-Jan-11
7    STI Matador     2003  40,096     -         SHTP (4)      N/A       N/A
8    STI Gladiator   2003  40,083     -         SHTP (4)      N/A       N/A
9    STI Highlander  2007  37,145    1A         SHTP (4)      N/A       N/A
10   STI Spirit      2008 113,100     -         SATP (6)      N/A       N/A
                          -------
                          644,857
                          =======


1. Redelivery from the charterer is plus or minus 30 days from the expiry
   date.

2. Noemi is time chartered by King Dustin, which is a related party.

3. These vessels operate in Scorpio Panamax Tanker Pool (SPTP). SPTP is
   operated by Scorpio Commercial Management (SCM). SPTP and SCM are
   related parties of the Company.

4. These vessels operate in the Scorpio Handymax Tanker Pool (SHTP). SHTP
   is operated by SCM.  SHTP and SCM are related parties of the Company.

5. STI Heritage was acquired with an existing time charter contract that
   commenced in January 2008.  This vessel is chartered to subsidiaries of
   Liberty, which is a related party.

6. This vessel operates in the Scorpio Aframax Tanker Pool (SATP). SATP
   is operated by SCM. SATP and SCM are related parties of the Company.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns one LR2 tanker, four LR1 tankers, four Handymax tankers, and one post-Panamax tanker with an average age of 5.1 years. Additional information about the Company is available at the Company's website www.scorpiotankers.com.

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.

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.