Scorpio Tankers Inc. Announces Financial Results for the Third
Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2012
MONACO -- (Marketwire) -- 10/29/12 -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers," or the "Company") today reported its results for the three and nine months ended September 30, 2012.
Results for the three months ended September 30, 2012 and 2011
For the three months ended September 30, 2012, the Company had an adjusted net loss of $3.7 million (see Non-GAAP Measures section below), or $0.09 basic and diluted loss per share, excluding (i) $5.9 million, or $0.14 per share, loss from sales of STI Diamond and STI Coral and (ii) $3.0 million, or $0.07 per share, write-off of deferred financing fees attributable to the extension of the 2011 Credit Facility.
For the three months ended September 30, 2012, the Company recorded a net loss of $12.5 million, or $0.30 basic and diluted loss per share. This is compared to a net loss of $6.9 million or $0.22 basic and diluted loss per share for the three months ended September 30, 2011.
Results for the nine months ended September 30, 2012 and 2011
For the nine months ended September 30, 2012, the Company had an adjusted net loss of $8.3 million (see Non-GAAP Measures section below), or $0.21 basic and diluted loss per share, excluding (i) $10.4 million, or $0.26 per share, loss from sales of vessels (STI Conqueror, STI Matador, STI Gladiator, STI Coral, and STI Diamond) and (ii) $3.0 million, or $0.07 per share, write-off of deferred financing fees attributable to the extension of the 2011 Credit Facility.
For the nine months ended September 30, 2012, the Company recorded a net loss of $21.7 million or $0.54 basic and diluted loss per share. This is compared to a net loss of $11.0 million or $0.40 basic and diluted loss per share for the nine months ended September 30, 2011.
Summary of Recent and Third Quarter Significant Events:
-- Delivery of the Company's first five vessels under its Newbuilding
program, STI Amber, STI Topaz, STI Ruby, STI Garnet, and STI Onyx.
-- Closed on the sales of STI Diamond and STI Coral for $25.25 million
each.
-- Contracted with Hyundai Mipo Dockyard Co., Ltd. of South Korea ("HMD")
to construct the Company's ninth and tenth newbuilding vessels.
-- Signed a
n agreement with 2011 Credit Facility lenders to extend the
availability period of the 2011 Credit Facility until January 31,
2014, giving the Company the ability to partially finance the ninth
and tenth newbuilding vessels.
-- Time chartered-in six vessels, a newbuilding MR, two MR's, an LR1 and
two LR2s.
-- Repurchased 82,322 shares under the share buyback program at an
average price per share of $5.34 during the third quarter.
Emanuele Lauro, chief executive officer and chairman of the board, commented, "The previous few months have been very exciting for us with the deliveries of our first five newbuildings. These vessels are performing as we expected on their voyages from the Far East to the Atlantic Basin. The following table illustrates the difference in main engine fuel oil consumption, assuming similar operating conditions, between the first newbuilding, STI Amber, and that of a comparable MR product tanker that the Company recently sold, STI Coral. The table provides evidence of the material savings (worldwide marine fuel oil prices exceed $600 per ton) and environmental benefits of our newbuildings:
----------------------------------------------------------------------------
Savings
Main Engine Consumption in Metric STI Amber STI Coral in Metric Variance
Tons of Fuel per day Tons %
----------------------------------------------------------------------------
13.5 Knots Ballast 18.0 25.0 7.0 28.0%
----------------------------------------------------------------------------
13.5 Knots Laden 20.5 29.5 9.0 30.5%
----------------------------------------------------------------------------
Mr. Lauro continued, "presently we see the overall supply-demand balance in product tankers to be tightening, as evidenced by steadily increasing freight rates in certain regional markets like the Mediterranean and the Far East. Our newbuildings, as well as our chartered-in tankers put us in a desirable position, as we enter what has historically been the strongest period of the year for seaborne freight."
Third Quarter Significant Events Delivery of Five Newbuilding Vessels
During the third quarter of 2012, the Company took delivery of the first five vessels under its Newbuilding program, STI Amber, STI Topaz, STI Ruby, STI Garnet, and STI Onyx. The first four vessels were partially financed by the Company's Newbuilding Credit Facility with Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB, and the fifth vessel was partially financed by the Company's 2011 Credit Facility.
Upon delivery, each vessel began a short term time charter for durations up to 120 days.
Newbuilding contracts #9 and #10
In August 2012, the Company contracted with HMD to construct two newbuilding vessels for approximately $34.0 million each, which are the Company's ninth and tenth MR product tanker newbuildings with HMD. These vessels are scheduled to be delivered to the Company in January 2014. Partial financing for these vessels is available under the 2011 Credit Facility. The contract includes an option for two additional vessels.
Closing on Sales of STI Coral and STI Diamond
The Company completed the previously announced sales of STI Coral and STI Diamond for $25.25 million each in August and September 2012 and recorded a total loss of $5.9 million from disposal as part of these sales.
A portion of the proceeds from the sales was used to repay $16.1 million of debt outstanding on the 2011 Credit Facility relating to STI Coral. The Company's fifth newbuilding vessel, STI Onyx, was substituted as collateral under the 2011 Credit Facility on the outstanding borrowing relating to STI Diamond.
As part of these sales, the Company reduced the notional amount on the interest rate swaps relating to the 2011 Credit Facility to $15.0 million from $24.0 million.
Extension of availability on the Company's 2011 Credit Facility
In July 2012, the Company signed an agreement with its lenders, Nordea Bank Finland plc, DNB Bank ASA, and ABN AMRO Bank N.V., to extend the availability period of its 2011 Credit Facility until January 31, 2014. The availability period was previously scheduled to expire in May 2013. There is currently $115 million available for borrowing under this facility, which can be used to finance up to 50% of future vessel acquisitions. Due to the amendment, the Company wrote-off $3.0 million in deferred financing fees, which includes the loan origination fees from May 2011, in the third quarter of 2012.
Time Chartered-in Vessels and Other Agreements
In July 2012, the Company took delivery of a 2004 built, 46,102 DWT MR product tanker on a time charter-in agreement. The agreement is for a period of six months at an average rate of $11,525 per day. The Company has options to extend the charter following its expiration for two consecutive six month periods at $13,750 per day and $14,800 per day, respectively.
In August 2012, the Company took delivery of a 2007 built MR product tanker (50,633 DWT) on a six month time charter-in agreement at $12,000 per day. The agreement includes an option for the Company to extend the charter for an additional six months at $13,000 per day.
In September 2012, the Company agreed to charter-in a newbuilding MR product tanker (51,561 DWT) for three years. This vessel is a sister ship of the Company's Newbuilding vessels and is currently under construction at HMD. Delivery from the yard is expected in January 2013 and, upon delivery, it will be chartered-in at $15,750 per day in year one, $16,250 per day in year two and $16,750 per day in year three. The Company has options to extend the charter for two consecutive one year periods at $17,500 per day and $18,000 per day.
In September 2012, the Company took delivery of a 2009 built LR1 (73,800 DWT) on a one year time charter-in agreement at $12,800 per day. The Company has the option to extend the charter for two consecutive one year periods at $13,400 per day and $14,400 per day. Additionally, the Company has entered into a profit and loss sharing arrangement whereby 50% of the profits and losses above or below the charterhire rate will be shared with an unrelated third party.
The Company has also entered into a profit or loss sharing arrangement on the earnings of an LR1 vessel that is not owned or operated by the Company. The agreement stipulates that 50% of all profits and losses (the difference between the vessel's earnings and the daily charterhire expense of $12,750 per day) will be shared with the counterparty. The counterparty to this agreement is currently time chartering-in this vessel for a period of six months at $12,750 per day, with an option for the counterparty to extend the agreement for an additional six months, at the same daily rate.
The Company agreed to charter-in two LR2 tankers (2011 built and 2012 built, each approximately 100,000 DWT). The vessels will be chartered-in for six months at $14,750 per day and are expected to be delivered in the first half of 2013. The Company has options to extend the charters for up to three consecutive six month periods at $15,000 per day, $15,250 per day and $15,500 per day, respectively.
Conference Call - Postponed due to Hurricane Sandy
Due to Hurricane Sandy, the Company has postponed its conference call that was scheduled for October 29, 2012. The Company will announce the date and time of the rescheduled conference call later in the week.
Current Liquidity
As of October 29, 2012, the Company had $30.5 million in cash and $20.5 million available to draw down from its 2010 Revolving Credit Facility.
Debt As of October 29, 2012, the Company's outstanding debt balance is as follows:
2010 Revolving Credit Facility $ 67.2 million
2011 Credit Facility 15.8 million
STI Spirit Credit Facility 24.6 million
Newbuilding Credit Facility 91.3 million
-------
Total $ 198.9 million
=======
2010 Revolving Credit Facility
In August 2012, the Company drew down $16.2 million from the 2010 Revolving Credit Facility. The Company currently has $20.5 million available to draw down when needed.
2011 Credit Facility
In September 2012, the Company repaid $16.1 million into the 2011 Credit Facility in connection with the sale of STI Coral. The Company's fifth newbuilding vessel, STI Onyx was substituted as collateral under the 2011 Credit Facility as security for the outstanding borrowings previously related to STI Diamond which was sold in August 2012. The repayment described above did not affect the availability under the facility as amounts drawn cannot be re-borrowed. There is currently $115.0 million available for borrowing under this facility, which can be used to finance up to 50% of future vessel acquisitions.
Newbuilding Credit Facility
During the third quarter 2012, the Company drew down an aggregate of $82.3 million from the credit facility agreement with Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB ("Newbuilding Credit Facility") to finance the final installments on the Newbuilding vessels ($20.6 million per vessel). There is $91.3 million outstanding under this facility (which reflects a principal payment of $0.7 million made in September 2012). There are no available borrowings under this facility.
2012 Debt Repayments
During the fourth quarter of 2012, the Company's scheduled debt repayments under the Newbuilding Credit Facility and 2011 Credit Facility are $1.8 million. During this period, there are no principal payments due for (i) the 2010 Revolving Credit Facility since the amount available is greater than the amount drawn and (ii) the STI Spirit Credit Facility as a result of the $0.8 million prepayment made in June 2012.
Drydocks and offhire
STI Spirit is scheduled to be drydocked in the fourth quarter of 2012 for an estimated cost of $0.8 million and 20 days of offhire.
STI Heritage is also scheduled to be drydocked in the fourth quarter of 2012 or first quarter of 2013 for an estimated cost of $0.8 million and 20 days of offhire.
Newbuilding Program
During the third quarter of 2012, the Company made $123.9 million of installment payments on its newbuilding vessels, which included the applicable delivery installments.
The Company currently has five vessels under contract with HMD, and the estimated future payment dates and amounts are as follows as of September 30, 2012*:
Q4 2012 $ 10.7 million
Q1 2013 63.7 million
Q2 2013 22.0 million
Q3 2013 - million
Q4 2013 6.6 million
Q1 2014 42.4 million
-------
Total $ 145.4 million
hese are estimates only and are subject to change as the
construction progresses.
Explanation of Variances on the Third Quarter of 2012 Financial
Results Compared to the Third Quarter of 2011
For the three months ended September 30, 2012, the Company incurred a
net loss of $12.5 million compared to a net loss of $6.9 million in
the three months ended September 30, 2011. The following were the
significant changes between the two periods:
-- Time charter equivalent, or TCE revenues, a non-IFRS measure, is
vessel revenues less voyage expenses (including bunkers and port
charges). TCE revenue is also 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 bareboat charters), and it provides useful
information to investors and management. The following table depicts
TCE revenue for the three months ended September 30, 2012 and 2011:
For the three months ended
September 30,
----------------------------
2012 2011
------------- ------------- Vessel revenue $ 28,139,316 $ 21,460,983 Voyage expenses (5,776,046) (2,412,195)
------------- ------------- TCE revenue $ 22,363,270 $ 19,048,788
============= =============
-- TCE revenue increased by $3.3 million to $22.4 million as a result of
an increase in the average number of operating vessels (owned and time
chartered-in) to 20.39 from 18.46 for the three month periods ended
September 30, 2012 and 2011, respectively. Additionally, the Company
experienced a slight increase in time charter equivalent per day to
$11,926 per day from $11,660 per day for the three months ended
September 30, 2012 and 2011, respectively (see the breakdown of daily
TCE averages below).
-- Vessel operating costs decreased by $2.1 million to $6.4 million as a
result of a reduction in the average number of owned vessels to 9.88
from 12.00 for the three months ended September 30, 2012 and 2011,
respectively. This was driven by the sales of STI Conqueror, STI
Matador and STI Gladiator during the first and second quarter of 2012
along with the sales of STI Diamond and STI Coral during the third
quarter of 2012. This fleet reduction was partially offset by the
delivery of the first five vessels under the Company's Newbuilding
program in the third quarter of 2012. Additionally, there was a
decrease in operating costs per day to $6,935 from $7,660 during the
three months ended September 30, 2012 and 2011, respectively.
-- Charterhire expense increased $5.2 million to $12.6 million as a
result of an increase in the average number of time chartered-in
vessels to 10.51 from 6.46 for the three months ended September 30,
2012 and 2011, respectively. See the Company's Fleet List below for
the terms of these agreements.
-- Depreciation expense decreased by $1.8 million to $3.4 million as a
result of a (i) a $66.6 million impairment charge recorded at December
31, 2011 which decreased the depreciable basis of the Company's
vessels and (ii) a decrease in the average number of owned vessels to
9.88 from 12.00 for the three months ended September 30, 2012 and
2011, respectively, which was driven by the sales of STI Conqueror,
STI Matador and STI Gladiator during the first and second quarter of
2012 along with the sales of STI Diamond and STI Coral during the
third quarter of 2012. This fleet reduction was partially offset by
the delivery of the first five vessels under the Company's Newbuilding
program in the third quarter of 2012.
-- Loss from sale of vessels increased $5.9 million as a result of the
sales of STI Diamond and STI Coral during the three months ended
September 30, 2012.
-- Financial expenses, which consist of interest expense, amortization of
deferred financing fees and commitment fees, increased by $2.2 million
to $4.1 million. This increase was driven by the write-off of deferred
financing fees of $3.0 million relating to the amendment to extend the
availability period of the 2011 Credit Facility to January 2014. This
increase was partially offset by reductions in interest expense and
commitment fees for the three months ended September 30, 2012 and
2011, respectively.
-- Realized and unrealized gains on derivative financial instruments
consist of earnings from profit and loss agreements with third parties
relating to time chartered-in vessels.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Profit or Loss
(unaudited)
For the three months ended For the nine months ended
September 30, September 30,
-------------------------- --------------------------
2012 2011 2012 2011
------------ ------------ ------------ ------------ Revenue: Vessel revenue $ 28,139,316 $ 21,460,983 $ 84,017,287 $ 59,468,005
Operating expenses: Vessel operating
costs (6,374,319) (8,492,911) (22,158,410) (23,330,876) Voyage expenses (5,776,046) (2,412,195) (18,538,888) (4,147,621) Charterhire (12,587,580) (7,359,310) (29,479,223) (15,536,259) Depreciation (3,389,271) (5,169,926) (10,213,008) (13,434,476) Loss from sale of
vessels (1) (5,878,753) - (10,403,524) - General and
administrative
expenses (2,814,977) (2,905,614) (8,554,521) (8,612,061)
------------ ------------ ------------ ------------ Total operating
expenses (36,820,946) (26,339,956) (99,347,574) (65,061,293)
------------ ------------ ------------ ------------ Operating loss (8,681,630) (4,878,973) (15,330,287) (5,593,288)
------------ ------------ ------------ ------------ Other (expense) and income, net Financial expenses (4,108,237) (1,879,512) (6,582,928) (5,360,447) Realized gain on
derivative
financial
instruments 285,773 - 285,773 - Unrealized gain on
derivative
financial
instruments 38,224 - 38,224 - Financial income 3,569 - 5,674 49,842 Other expenses,
net (48,868) (126,123) (72,504) (137,128)
------------ ------------ ------------ ------------ Total other
expense, net (3,829,539) (2,005,635) (6,325,761) (5,447,733)
------------ ------------ ------------ ------------ Net loss $(12,511,169) $ (6,884,608) $(21,656,048) $(11,041,021)
============ ============ ============ ============
Loss per share
Basic and diluted
(2) $ (0.30) $ (0.22) $ (0.54) $ (0.40) Basic and diluted
weighted average
shares
outstanding (2) 41,202,619 30,895,545 39,842,806 27,455,123
(1) The three months ended September 30, 2012 include the sales of STI
Diamond and STI Coral which closed on August 15, 2012 and September 11,
2012, respectively. The nine months ended September 30, 2012 include the
sales of STI Diamond, STI Coral along with the sales of STI Conqueror,
STI Matador, and STI Gladiator which closed on March 20, 2012, April 18,
2012, and May 2, 2012, respectively. (2) The effect of restricted shares, which are potential ordinary shares,
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 these periods.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(unaudited)
As of
----------------------------
September 30, December 31,
2012 2011
------------- ------------- Assets Current assets Cash and cash equivalents $ 37,644,657 $ 36,833,090 Accounts receivable 25,960,839 20,385,546 Prepaid expenses 1,347,399 1,535,437 Inventories 2,773,571 2,696,296
------------- ------------- Total current assets 67,726,466 61,450,369
------------- ------------- Non-current assets Vessels and drydock 396,459,708 322,457,755 Vessels under construction 32,464,010 60,332,870 Other assets 645,052 3,988,778
------------- ------------- Total non-current assets 429,568,770 386,779,403
------------- ------------- Total assets $ 497,295,236 $ 448,229,772
============= =============
Current liabilities Bank loans 8,325,990 2,888,723 Accounts payable 7,180,015 11,732,427 Accrued expenses 2,851,171 3,376,033 Derivative financial instruments 692,425 236,987
------------- ------------- Total current liabilities 19,049,601 18,234,170
------------- ------------- Non-current liabilities Bank loans 187,004,371 142,678,788 Derivative financial instruments 913,921 463,587
------------- ------------- Total non-current liabilities 187,918,292 143,142,375
------------- ------------- Total liabilities 206,967,893 161,376,545
------------- -------------
Shareholders' equity Issued, authorized and fully paid in share capital: Share capital 433,591 390,691 Additional paid in capital 391,627,736 363,209,983 Treasury shares (7,938,455) (5,498,495) Hedging reserve (1,591,103) (700,574) Accumulated deficit (92,204,426) (70,548,378)
------------- ------------- Total shareholders' equity 290,327,343 286,853,227
------------- ------------- Total liabilities and shareholders' equity $ 497,295,236 $ 448,229,772
============= =============
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
For the nine months ended
September 30,
----------------------------
2012 2011
------------- -------------
Operating activities Net loss $ (21,656,048) $ (11,041,021) Loss from sale of vessels 10,403,524 - Depreciation 10,213,008 13,434,476 Amortization of restricted stock 2,597,901 2,492,624 Amortization of deferred financing fees 3,843,736 651,127 Write off of vessel purchase options - 126,337 Straight-line adjustment for charterhire expense 225,604 38,139 Unrealized gain on derivative financial instruments (38,224) -
------------- -------------
5,589,501 5,701,682
------------- ------------- Changes in assets and liabilities: Drydock payments (149,560) (1,862,210) Increase in inventories (77,275) (1,630,832) Increase in accounts receivable (5,575,293) (12,760,193) Decrease/(increase) in prepaid expenses 129,038 (645,181) Increase in accounts payable 4,412,985 1,488,004 Increase in accrued expenses 598,075 803,350 Decrease/(increase) in other assets 2,442,338 (982,921)
------------- -------------
1,780,308 (15,589,983)
------------- ------------- Net cash inflow/(outflow) from operating activities 7,369,809 (9,888,301)
------------- ------------- Investing activities Acquisition of vessels and payments for vessels under construction (176,555,897) (90,188,013) Proceeds from disposal of vessels 101,334,510 -
------------- ------------- Net cash outflow from investing activities (75,221,387) (90,188,013)
------------- ------------- Financing activities Bank loan repayment (75,988,596) (74,576,166) Bank loan drawdown 124,172,500 68,307,500 Debt issuance costs (2,943,550) (3,208,946) Net proceeds from issuance of common stock 25,862,752 68,460,639 Purchase of Treasury shares (2,439,961) (1,599,047)
------------- ------------- Net cash inflow from financing activities 68,663,145 57,383,980
------------- ------------- Increase/(decrease) in cash and cash equivalents 811,567 (42,692,334) Cash and cash equivalents at January 1, 36,833,090 68,186,902
------------- ------------- Cash and cash equivalents at September 30, $ 37,644,657 $ 25,494,568
============= =============
Scorpio Tankers Inc. and Subsidiaries Other operating data for the three and nine months ended September 30, 2012
and 2011
(unaudited)
For the three months For the nine months
ended ended
September 30, September 30,
2012 2011 2012 2011
----------- ----------- ----------- ----------- Adjusted EBITDA(1) $ 1,715,172 $ 1,034,551 $ 8,097,415 $10,196,684
Average Daily Results Time charter equivalent per day(2) $ 11,926 $ 11,660 $ 12,719 $ 13,304 Vessel operating costs per day(3) 6,935 7,660 7,690 7,707
Aframax/LR2 TCE per revenue day - pool $ 15,809 $ 16,986 $ 10,940 $ 14,789 TCE per revenue day - time charters - - - 15,457 Vessel operating costs per day(3) 7,645 6,788 8,622 7,066
Panamax/LR1 TCE per revenue day - pool $ 13,723 $ 11,776 $ 14,661 $ 13,666 TCE per revenue day - spot 11,238 - 11,238 - TCE per revenue day - time charters - 23,894 - 23,921 Vessel operating costs per day(3) 7,271 7,986 7,783 7,928
MR TCE per revenue day - pool (Existing MR) $ 10,433 $ - $ 9,445 $ - TCE per revenue day - spot (Newbuildings) 16,719 - 16,719 -
9,103 15,928 10,750 12,053 TCE per revenue day - spot (Existing MR)
Vessel operating costs per day(3) 6,593 7,054 7,338 7,116
Handymax TCE per revenue day - pool $ 11,123 $ 8,914 $ 12,864 $ 11,587 TCE per revenue day - spot - - 11,894 - Vessel operating costs per day(3) 5,524 7,774 7,414 7,746
Fleet data Average number of owned vessels 9.88 12.00 10.43 11.05 Average number of time chartered-in vessels 10.51 6.46 8.43 3.96
Drydock Expenditures for drydock $ - $ 1,189,860 $ - $ 1,919,525
(1) See Non-GAAP 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 divided
by the number of days the vessel is owned during the period.
Fleet List as of October 29, 2012
Vessel Year Ice Vessel
Name Built DWT Class Employment type
---------- ----- --------- ----- ---------- --------
Owned
vessels 1 STI
Highlander 2007 37,145 1A SHTP (1) Handymax 2 STI Amber 2012 52,000 - Spot MR 3 STI Topaz 2012 52,000 - Spot MR 4 STI Ruby 2012 52,000 - Spot MR 5 STI Garnet 2012 52,000 - Spot MR 6 STI Onyx 2012 52,000 - Spot MR 7 Noemi 2004 72,515 - SPTP (2) LR1 8 Senatore 2004 72,514 - SPTP (2) LR1 9 STI
Harmony 2007 73,919 1A SPTP (2) LR1 10 STI
Heritage 2008 73,919 1A SPTP (2) LR1
Post- 11 Venice 2001 81,408 1C SPTP (2) Panamax 12 STI Spirit 2008 113,100 - SLR2P (3) LR2
---------
Total
owned DWT 784,520
=========
Time Charter
Info
----------------
Time Chartered-
In vessels
Daily
Vessel Year Ice Vessel Base Expiry
Name Built DWT Class Employment type Rate (5)
---------- ----- --------- ----- ---------- -------- ------- --------
26-Jul- 13 Kraslava 2007 37,258 1B SHTP (1) Handymax $12,070 13 (6) 14 Krisjanis 14-Jun-
Valdemars 2007 37,266 1B SHTP (1) Handymax $12,000 13 (7) 15 Histria 06-Apr-
Azure 2007 40,394 - SHTP (1) Handymax $12,000 13 (8) 16 Histria 17-Jul-
Coral 2006 40,426 - SHTP (1) Handymax $13,000 13 (9) 17 Histria 15-Jul-
Perla 2005 40,471 - SHTP (1) Handymax $13,000 13 (9)
16-Jan- 18 Endeavour 2004 46,102 - SMRP(4) MR $11,525 13 (10)
17-May- 19 STX Ace 6 2007 46,161 - SMRP(4) MR $14,150 14 (11) 20 Pacific 17-Mar-
Duchess 2009 46,697 - SMRP(4) MR $13,800 13 (12)
17-May- 21 Targale 2007 49,999 - SMRP(4) MR $14,500 14 (13)
Freja 26-Apr- 22 Lupus 2012 50,385 - SMRP(4) MR $14,760 14 (14) 23 Valle 15-Feb-
Bianca 2007 50,633 - SMRP(4) MR $12,000 13 (15)
01-Jan- 24 Gan-Trust 2013 51,561 - SMRP(4) MR $16,250 16 (16)
FPMC P 09-Sep- 25 Eagle 2009 73,800 - SPTP (2) LR1 $12,800 13 (17)
FPMC P 01-Jul- 26 Hero 2011 99,995 - SLR2P (3) LR2 $14,750 13 (18) 27 FPMC P 01-Jul-
Ideal 2012 99,993 - SLR2P (3) LR2 $14,750 13 (18)
---------
Total time
chartered-in DWT 811,141
=========
Newbuildings currently under
construction (19)
Vessel Vessel
Name DWT type
---------- --------- -------- 28 Hull 2361 52,000 MR 29 Hull 2362 52,000 MR 30 Hull 2369 52,000 MR 31 Hull 2389 52,000 MR 32 Hull 2390 52,000 MR
---------
Total
newbuilding DWT 260,000
=========
---------
Total DWT 1,855,661
=========
(1) This vessel operates 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 Scorpio Panamax Tanker Pool (SPTP). SPTP is
operated by SCM. SPTP is a related party to the Company. (3) This vessel operates in the Scorpio LR2 Pool (SLR2P). SLR2P is operated
by SCM. SLR2P is a related party to the Company. (4) This vessel operates in the Scorpio MR Pool (SMRP). SMRP is operated by
SCM. SMRP is a related party to the Company. (5) Redelivery from the charterer is plus or minus 30 days from the expiry
date. (6) This agreement contains an option for the Company to extend the charter
for an additional year at $13,070 per day. (7) This agreement contains an option for the Company to extend the charter
for an additional year at $13,000 per day. The agreement also contains
a 50% profit and loss sharing provision whereby the Company splits all
of the vessel's profits and losses above or below the daily base rate
with the vessel owner. (8) The agreement contains an option for the Company to extend the term of
the charter agreement for an additional year at $13,650 per day. (9) Represents the average rate for the two year duration of the agreement.
The rate for the first year is $12,750 per day and the rate for the
second year is $13,250 per day. The agreement contains an option for
the Company to extend the charter for an additional year at $14,500 per
day. (10) The agreement contains two consecutive options for the Company to
extend the charter for up to two six month periods at $13,750 and
$14,800 per day, respectively. (11) The agreement contains an option for the Company to extend the charter
for an additional year at $15,150 per day. (12) The agreement contains an option for the Company to extend the charter
for an additional year at $14,800 per day. (13) The agreement contains three consecutive options for the Company to
extend the charter for up to three consecutive one year periods at
$14,850 per day, $15,200 per day and $16,200 per day, respectively. (14) The agreement contains an option for the Company to extend the charter
for an additional year at $16,000 per day. (15) The agreement contains an option for the Company to extend the charter
for an additional six months at $13,000 per day. (16) This vessel is currently under construction and is expected to be
delivered in January 2013 from the shipyard. The daily base rate
represents the average rate for the three year duration of the
agreement. The rate for the first year is $15,750 per day, the rate for
the second year is $16,250 per day, and the rate for the third year is
$16,750 per day. The agreement contains two consecutive options for the
Company to extend the charter for up to two consecutive one year
periods at $17,500 per day and $18,000 per day, respectively. (17) The agreement contains two consecutive options for the Company to
extend the charter up to two, one year periods at $13,400 per day and
$14,400 per day, respectively. The Company also entered into an
agreement with a third party to share 50% profit and loss sharing
provisions whereby the Company will split all of the vessel's profits
and losses above or below the daily base rate. (18) The agreement contains three consecutive options for the Company to
extend the charter for up to three six month periods at $15,000 per
day, $15,250 per day and $15,500 respectively. (19) These newbuilding vessels are being constructed at Hyundai Mipo
Dockyard Co., Ltd of South Korea. Three vessels are expected to be
delivered between January 2013 and April 2013 and the remaining two are
expected to be delivered in January 2014.
Business Strategy, Dividend Policy, and Stock 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. The Company 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); and -- reduced order book.
Dividend Policy The Company does not have immediate plans to pay dividends but will continue to assess the dividend policy. In the future, the board of directors may determine in its sole discretion that 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. The Company plans 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. As of October 29, 2012, the Company has purchased $7.9 million of shares in the open market at an average price of $6.78. 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, one Handymax tanker, five MR tankers, and one post-Panamax tanker with an average age of 4.6 years, time charters-in 15 vessels (two LR2, one LR1, seven MR and five Handymax tankers), and has contracted for five newbuilding MR's (three are expected to be delivered to the Company in the first half of 2013 and two in January 2014). Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release. 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. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date hereof. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. Non-GAAP Measures This press release describes adjusted net loss and Adjusted EBITDA, which are not measures prepared in accordance with IFRS (that is, a "Non-GAAP" measure). The Non-GAAP 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-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.
Adjusted net loss
For the three months For the three months
ended ended
September 30, 2012 September 30, 2011
----------------------- -----------------------
------------ --------- ------------ ---------
Amount Per share Amount Per share
------------ --------- ------------ --------- Net loss $(12,511,169) $ (0.30) $ (6,884,608) $ (0.22) Add: Loss from sale of
vessels 5,878,753 0.14 - - Write off of deferred
financing fees 2,977,905 0.07 - -
------------ --------- ------------ --------- Total adjustments 8,856,658 0.21 - -
------------ --------- ------------ --------- Adjusted net loss $ (3,654,511) $ (0.09) $ (6,884,608) $ (0.22)
============ ========= ============ =========
For the nine months For the nine months
ended ended
September 30, 2012 September 30, 2011
----------------------- -----------------------
Amount Per share Amount Per share
------------ --------- ------------ --------- Net loss $(21,656,048) $ (0.54) $(11,041,021) $ (0.40) Add: Loss from sale of
vessels 10,403,524 0.26 - - Write off of deferred
financing fees 2,977,905 0.07 - -
------------ --------- ------------ --------- Total adjustments 13,381,429 0.34 - -
------------ --------- ------------ --------- Adjusted net loss $ (8,274,619) $ (0.21) $(11,041,021) $ (0.40)
============ ========= ============ =========
Adjusted EBITDA
For the three months
ended For the nine months ended
September 30, September 30,
------------------------- --------------------------
2012 2011 2012 2011
------------ ----------- ------------ ------------ Net loss $(12,511,169) $(6,884,608) $(21,656,048) $(11,041,021) Financial expenses 4,108,237 1,879,512 6,582,928 5,360,447 Unrealized gain on derivative financial instruments (38,224) - (38,224) - Financial income (3,569) - (5,674) (49,842) Depreciation 3,389,271 5,169,926 10,213,008 13,434,476 Amortization of restricted stock 891,873 869,721 2,597,901 2,492,624
------------ ----------- ------------ ------------ Loss from sale of vessels 5,878,753 - 10,403,524 -
------------ ----------- ------------ ------------ Adjusted EBITDA $ 1,715,172 $ 1,034,551 $ 8,097,415 $ 10,196,684
============ =========== ============ ============
Scorpio Tankers Inc. 212-542-1616
Rate this Page