Scorpio Tankers (STNG) Investor Presentation summary

Company overview

• Operates the world's largest product tanker fleet, with 99 eco-efficient vessels and an average fleet age of 8.8 years.

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

• Headquartered in Monaco, incorporated in the Marshall Islands, and serves a diversified blue-chip customer base.

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

• Significant operating leverage, with a $10,000/day increase in freight rates potentially generating ~$361 million in annualized cash flow.

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, driven by refinery closures and shifting global trade flows.

• Limited fleet growth and an aging global fleet are expected to constrain supply.

• Scrapping rates for older vessels are at multi-decade lows, further limiting effective fleet growth.

• Seaborne exports and ton mile demand are projected to outpace fleet growth through 2027.

Financial performance and capital allocation

• From Q1-23 to Q3-24, generated $2,349 million in TCE revenue, $1,696 million in adjusted EBITDA, and $1,053 million in adjusted net income.

• Reduced overall indebtedness by ~$2.2 billion from December 2021 to September 2024, including significant lease financing repayments.

• Repurchased $786 million of shares and paid $121 million in dividends from January 2023 to September 2024.

• Maintains a strong balance sheet with continued reduction in leverage and expensive lease financing.

• Demonstrates significant earnings potential, with annual cash flow generation highly sensitive to TCE rates.