Scorpio Tankers (STNG) Conference Presentation summary

Company overview and fleet

• Operates the world's largest product tanker fleet, with 102 eco-efficient vessels and an average age of 8.4 years as of September 2024.

• Vessels are employed in established pools with a track record of outperforming the market.

• No newbuildings on order, resulting in zero newbuild capital expenditure.

• Customer base includes major oil companies and traders such as Exxon, Chevron, bp, Trafigura, Phillips, Valero, and Repsol.

• Headquartered in Monaco and incorporated in the Marshall Islands.

Market environment and industry trends

• Product tanker earnings remain at historically high levels, supported by robust demand and low inventories.

• Seaborne exports and ton mile demand have exceeded pre-pandemic levels and are expected to outpace fleet growth.

• Refinery closures and new capacity additions are reshaping global trade flows, increasing ton miles and seaborne exports.

• Limited fleet growth due to a low orderbook and an aging global fleet, with significant 2000s-built vessels expected to be phased out.

• Newbuilding prices and delivery lead times continue to rise, further constraining fleet expansion.

Financial performance and capital allocation

• Q2 2024 adjusted EBITDA was $278.0 million, with adjusted net income of $188.4 million ($3.77 basic EPS).

• From January 2024 to July 2024, $603.8 million in unscheduled debt and lease repayments were made.

• Share repurchases totaled $284.2 million since April 2024, and the repurchase program was increased to $400 million.

• Quarterly dividend declared at $0.40 per share; $101 million in dividends paid from Q1-23 to Q2-24.

• Overall indebtedness reduced by ~$2.2 billion from December 2021 to June 2024, including significant lease financing reductions.