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Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2013, Makes Further Progress on Financing, and

Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2013, 
Makes Further Progress on Financing, and Increases
Its Quarterly Dividend 
MONACO -- (Marketwired) -- 10/28/13 --  Scorpio Tankers Inc. (NYSE:
STNG) ("Scorpio Tankers," or the "Company") today reported its
results for the three and nine months ended September 30, 2013. 
Results for the three months ended September 30, 2013 and 2012 
For the three months ended September 30, 2013, the Company had an
adjusted net income of $0.6 million (see Non-GAAP Measure section
below), or $0.00 basic and diluted earnings per share, excluding a
$0.1 million, or $0.00 per share unrealized gain on derivative
financial instruments. Including the unrealized gain on derivative
financial instruments, the Company had net income of $0.7 million, or
$0.00 basic and diluted earnings per share.  
For the three months ended September 30, 2012, the Company had an
adjusted net loss of $3.7 million (see Non-GAAP Measure section
below), or $0.09 basic and diluted loss per share, excluding a $5.9
million, or $0.14 per share, loss from sales of vessels and a $3.0
million, or $0.07 per share, write-off of deferred financing fees.
Including the aforementioned adjustments, the Company had a net loss
of $12.5 million, or $0.30 basic and diluted loss per share for the
three months ended September 30, 2012.  
Results for the nine months ended September 30, 2013 and 2012 
For the nine months ended September 30, 2013, the Company had an
adjusted net income of $10.8 million (see Non-GAAP Measure section
below), or $0.08 basic and diluted earnings per share, excluding a
$0.5 million, or $0.00 per share unrealized gain on derivative
financial instruments. Including the unrealized gain on derivative
financial instruments, the Company had net income of $11.2 million or
$0.08 basic and diluted earnings per share.  
For the nine months ended September 30, 2012, the Company had an
adjusted net loss of $8.3 million (see Non-GAAP Measure section
below), or $0.21 basic and diluted loss per share, excluding a $10.4
million, or $0.26 per share, loss from sales of vessels and a $3.0
million, or $0.07 per share, write-off of deferred financing fees.
Including the aforementioned adjustments, the Company recorded a net
loss of $
21.7 million, or $0.54 basic and diluted loss per share for
the nine months ended September 30, 2012.  
Declaration of Dividend  
On October 28, 2013, the Scorpio Tankers' board of directors declared
a quarterly cash dividend of $0.07 per share, payable on December 18,
2013 to all shareholders as of December 3, 2013 (the record date).
There are currently 191,656,422 shares outstanding.  
Emanuele Lauro, chief executive officer and chairman of the board
commented, "The past few months have been very exciting for us with
the delivery of vessels and additional construction contracts for our
Newbuilding Program, as well as a successful equity raising. I am
pleased that we have made progress on financing our growth, having
secured substantial commitments from KEXIM and KSURE." 
Summary of Recent and Third Quarter Significant Events: 


 
--  Received loan commitments from a group of financial institutions led
    by DNB Bank ASA and Skandinaviska Enskilda Banken AB (publ) and from
    the Export-Import Bank of Korea ("KEXIM") for a total loan facility of
    up to $429.6 million (the "KEXIM Financing"). The KEXIM Financing
    incorporates an optional guarantee from KEXIM for the issuance by the
    Company, at the option of the Company, of a five year $125.3 million
    amortizing bond facility; the proceeds of which will reduce KEXIM's
    direct loan commitment in the KEXIM Financing.
--  Received an Acceptance of Insurance Agreement from Korea Trade
    Insurance Corporation ("KSURE") covering 95% of an up to $358.3
    million KSURE tranche as part of a credit facility of up to $458.3
    million (the "KSURE Financing") that is currently being finalized with
    a group of financial institutions.
--  Exercised options with Hyundai Samho Heavy Industries ("HSHI") for the
    construction of two Very Large Gas Carriers ("VLGC") for approximately
    $75.0 million each, with deliveries scheduled in the first quarter of
    2016.
--  Reached agreements with certain unaffiliated third parties to issue
    shares in exchange for the transfer of ownership of four MR product
    tankers currently under construction in South Korea. The aggregate
    purchase price of the four vessels is $151.0 million with
    approximately 30% of the consideration consisting of the newly issued
    common shares. Deliveries of vessels are scheduled in the first and
    second quarters of 2014.
--  Reached agreements with HSHI and Daewoo Shipbuilding and Marine
    Engineering Co., Ltd. ("DSME") for the construction of a total of nine
    VLGC for approximately $75.6 million each with deliveries scheduled in
    the second, third and fourth quarters of 2015.
--  Reached an agreement with Hyundai Mipo Dockyard ("HMD") to construct
    four product tankers consisting of two 52,000 dwt MR product tankers
    for approximately $35.0 million each (deliveries in the second quarter
    of 2015) and two Handymax ice class-1A (38,000 dwt) product tankers
    for approximately $32.0 million each (deliveries in the fourth quarter
    of 2014).
--  Closed on an underwritten offering of 23 million common shares in
    August 2013 which includes the full exercise of the underwriters'
    overallotment of 3 million shares, raising aggregate net proceeds of
    $209.8 million.
--  Declared and paid a quarterly cash dividend on the Company's common
    stock of $0.035 per share in September 2013.
--  Took delivery of four MR tankers under the Company's Newbuilding
    Program, STI Le Rocher  and STI Larvotto in July, STI Fontvieille in
    August and STI Ville in September 2013. After delivery, each vessel
    began a time charter for up to 120 days at approximately $19,000 per
    day.

  
KEXIM Financing 
 In September 2013, the Company received loan
commitments from a group of financial institutions led by DNB Bank
ASA and Skandinaviska Enskilda Banken AB (publ) for loan commitments
of up to $429.6 million, including a commitment from KEXIM for a
commitment of up to $300.6 million (the "KEXIM Tranche").  
The KEXIM Financing will be used to finance up to 60% of the contract
price of 18 newbuilding product tankers upon delivery. The covenants
are similar to those in the Company's existing credit facilities, and
other terms and conditions of the loan are in accordance with OECD
Guidelines. The KEXIM Financing is subject to executed documentation
and is expected to close within the fourth quarter of 2013.  
In addition to KEXIM's commitment of up to $300.6 million, KEXIM has
also provided an optional guarantee for a five year amortizing note
of $125.3 million (the "KEXIM Guaranteed Note") that may be issued by
the Company at the Company's discretion in 2014; the proceeds of
which will be used to reduce the $300.6 million KEXIM Tranche.  
KSURE Credit Facility 
 In October 2013, the Company received an
Acceptance of Insurance Agreement from KSURE covering 95% of an up to
$358.3 million KSURE tranche which will be a component of a credit
facility of up to $458.3 million that is in the process of being
finalized. The KSURE Financing will also include a commercial tranche
(the "Commercial Tranche") of up to $100.0 million. 
The KSURE Financing will be used to finance up to 60% of the contract
price of up 
to 21 newbuilding product tankers upon delivery. The
covenants are similar to those in the Company's existing credit
facilities, and other terms and conditions of the loan are in
accordance with OECD Guidelines. The facility is subject to credit
approval from participating financial institutions as well as
executed documentation, and is expected to close within the fourth
quarter of 2013.  
Newbuilding agreements 
In September 2013, the Company reached agreements with certain
unaffiliated third parties to issue shares in exchange for the
transfer of ownership of four MR product tankers that are currently
under construction with SPP Shipbuilding Co., Ltd. of South Korea
("SPP"). The aggregate purchase price of the four vessels is $151.0
million with approximately 30% of the consideration consisting of the
newly issued shares having a valuation based on the fair market value
of the shares at the time of issuance. The new common shares will be
issued to Ceres, Valero and a group of institutional investors
advised by JP Morgan Asset Management; the remainder of the purchase
price will be paid to the shipyard from cash on hand and bank debt.
Deliveries of the vessels are scheduled in the first and the second
quarters of 2014.  
The transaction also includes a time charter-out agreement for each
vessel for a fixed daily revenue amount at current market levels plus
a profit sharing arrangement whereby earnings in excess of the base
time charter rate will be split between the Company and charterer,
Valero. The first vessel delivered will be time chartered-out for 24
months, and the remaining three will each be time chartered-out for
12 months. The transactions will be completed by way of novation of
the existing shipbuilding agreements and remain subject to final
documentation. 
In August 2013, the Company reached an agreement with HMD to
construct four product tankers consisting of two 52,000 dwt MR
product tankers for approximately $35.0 million each and two Handymax
ice class-1A (38,000 dwt) product tankers for approximately $32.0
million each. The MR tankers are scheduled to be delivered in the
second quarter of 2015, and the Handymax ice class-1A tankers are
scheduled to be delivered in the fourth quarter of 2014. 
VLGC Newbuilding agreements 
In October 2013, the Company exercised options with HSHI for the
construction of two VLGC for approximately $75.0 million each. These
vessels are expected to be delivered in the first quarter of 2016.  
In July and August 2013, the Company reached agreements with HSHI and
DSME for the construction of nine VLGC for approximately $75.6
million each. These vessels are expected to be delivered in the
second, third and fourth quarters of 2015.  
These vessels are 84,000 cubic meter tankers designed for the
carriage of liquefied petroleum gas ("LPG"). 
Underwritten offering and full exercise of underwriters'
over-allotment 
In August 2013, the Company closed on the sale of 20 million shares
of common stock at an offering price of $9.50 per share. The
underwriters also fully exercised their over-allotment option to
purchase 3 million additional common shares at the offering price.
The Company received aggregate net proceeds of $209.8 million after
deducting underwriters' discounts and offering expenses.  
Time charter-in update 
In October 2013, the Company entered into a new time charter-in
agreement on an LR1 vessel that is currently time chartered-in. The
new agreement is for two years at $14,525 per day and commenced upon
the expiration of the existing charter in September 2013.  
In August 2013, the Company agreed to time charter-in and took
delivery of two 2007 built Handymax product tankers (37,412 dwt and
37,455 dwt, respectively). The first vessel is time chartered-in for
18 months at $12,500 per day with an option for the Company to extend
the charter for an additional year at $13,500 per day. The second
vessel is time chartered-in for one year at $12,500 per day with an
option for the Company to extend the charter for an additional year
at $13,250 per day.  
In August 2013, the Company declared an option on an LR2 vessel that
is currently time chartered-in. The option period is for six months
at $15,000 per day and commences upon the expiration of the existing
charter in November 2013.  
In July 2013, the Company agreed to time charter-in and took delivery
of a 2008 built, 73,666 dwt LR1 product tanker for one year at
$14,000 per day. This agreement contains an option for the Company to
extend the charter for an additional year at $15,000 per day.  
Conference Call 
The Company will have a conference call on October 28, 2013 at 12:00
PM Eastern Daylight Time and 5:00 PM Central European Time. 
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 (888)-215-7046 (U.S.)
or 1 (913)-312-0659 (International). The conference participant
passcode is 6328598. 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: http://www.visualwebcaster.com/event.asp?id=96603  
Current Liquidity 
As of October 25, 2013, the Company had $381.9 million in cash and
$75.5 million available to draw down from its 2010 Revolving Credit
Facility.  
Debt  
As of October 28, 2013, the Company's outstanding debt balance is as
follows: 


 
                                                                   
                                                                   
2010 Revolving Credit Facility      $                    -  million
2011 Credit Facility                                  65.2  million
STI Spirit Credit Facility                            23.4  million
Newbuilding Credit Facility                           85.3  million
2013 Credit Facility                                     -  million
                                                                   
                                    ----------------------         
Total                               $                173.9  million
                                    ======================         

 
Newbuilding Program  
During the third quarter of 2013, the Company made $255.0 million of
installment payments on its newbuilding vessels. The Company
currently has 65 newbuilding vessel orders with HMD, SPP, HSHI and
DSME (28 MRs, 14 Handymaxes, 12 LR2s and 11 VLGC). The estimated
future payment dates and amounts are as follows*:  


 
                                   
                                   
Q4 2013     $    215.7   million** 
Q1 2014          250.3   million   
Q2 2014          397.5   million   
Q3 2014          394.8   million   
Q4 2014          323.1   million   
Q1 2015          134.6   million   
Q2 2015          249.2   million   
Q3 2015          151.1   million   
Q4 2015          197.3   million   
Q1 2016       
   105.0   million   
            ----------             
Total       $  2,418.6   million***
                                   
                                   
hese are estimates only and are subject to change as construction
progresses. 
 **$47.0 million has been paid prior to the date of this
press release. 
 ***Excludes the consideration of newly issued common
shares of approximately 30% of the purchase price for four MRs
currently under construction with first and second quarter 2014
deliveries.
 
Explanation of Variances on the Third Quarter of 2013 Financial
Results Compared to the Third Quarter of 2012
 
For the three months ended September 30, 2013, the Company recorded
net income of $0.7 million compared to a net loss of $12.5 million in
the three months ended September 30, 2012. 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 pool charters), and it provides useful 
information to investors and management. The following table depicts 
TCE revenue for the three months ended September 30, 2013 and 2012: 
For the three months ended    
September 30,          
------------------------------ 
In thousands of U.S. dollars                      2013            2012       
--------------  -------------- 
Vessel revenue                               $       57,756  $       28,667 
Voyage expenses                                      (1,249)         (6,304) 
--------------  -------------- 
TCE revenue                                  $       56,507  $       22,363  
==============  ==============  
--  TCE revenue increased by $34.1 million to $56.5 million as a result of 
an increase in the average number of operating vessels (owned and time 
chartered-in) to 42.3 from 20.4 for the three months ended September 
30, 2013 and 2012, respectively. Additionally, the Company experienced 
an overall increase in time charter equivalent revenue per day to 
$14,557 per day from $11,926 per day for the three months ended 
September 30, 2013 and 2012, respectively (see the breakdown of daily 
TCE averages below). 
--  Vessel operating costs increased $4.7 million to $11.1 million from 
$6.4 million for the three months ended September 30, 2013 and 2012, 
respectively. This increase was primarily driven by an increase in the 
Company's owned fleet to an average of 17.3 vessels from 9.9 vessels 
for the three months ended September 30, 2013 and 2012, respectively. 
--  Charterhire expense increased $19.3 million to $31.9 million as a 
result of an increase in the average number of time chartered-in 
vessels to 25.0 from 10.5 for the three months ended September 30, 
2013 and 2012, respectively. See the Company's Fleet List below for 
the terms of these agreements. 
--  Depreciation expense increased $3.0 million to $6.4 million primarily 
as a result of an increase in the average number of owned vessels to 
17.3 from 9.9 for the three months ended September 30, 2013 and 2012. 
--  General and administrative expenses increased $3.7 million to $6.5 
million. This increase was driven by (i) a $3.0 million increase in 
restricted stock amortization (non-cash) and (ii) an overall increase 
in other general and administrative expenses due to the significant 
growth in the Company's fleet and Newbuilding program. 
--  Financial expenses decreased $3.7 million to $0.4 million primarily as 
a result of the one-time write-off of deferred financing fees during 
the three months ended September 30, 2012 of $3.0 million relating to 
the amendment signed in July 2012 to extend the availability period of 
the 2011 Credit Facility to January 2014. 
Scorpio Tankers Inc. and Subsidiaries                     
Condensed Consolidated Statement of Profit or Loss              
(unaudited)                                  
For the three months   For the nine months  
ended September 30,   ended September 30,  
--------------------  -------------------- 
In thousands of U.S. dollars                                                
 except per share and share data    2013       2012       2013       2012    
---------  ---------  ---------  --------- 
Revenue                                                                     
  Vessel revenue                 $  57,756  $  28,667  $ 154,213  $  85,278  
Operating expenses:                                                         
  Vessel operating costs           (11,137)    (6,374)   (27,635)   (22,158)
  Voyage expenses                   (1,249)    (6,304)    (3,782)   (19,950)
  Charterhire                      (31,877)   (12,588)   (79,345)   (29,479)
  Depreciation                      (6,377)    (3,389)   (16,665)   (10,213)
  Loss from sale of vessels              -     (5,879)         -    (10,404)
  General and administrative                                                 
expenses                         (6,522)    (2,815)   (14,572)    (8,404) 
---------  ---------  ---------  --------- 
  Total operating expenses         (57,162)   (37,349)  (141,999)  (100,608) 
---------  ---------  ---------  --------- 
Operating income / (loss)              594     (8,682)   
 12,214    (15,330) 
---------  ---------  ---------  --------- 
Other (expense) and income, net                                             
  Financial expenses                  (448)    (4,108)    (2,323)    (6,583)
  Realized gain on derivative                                                
financial instruments                 3        286         25        286 
  Unrealized gain on derivative                                              
financial instruments               118         38        483         38 
  Financial income                     400          4        950          6 
  Other expenses, net                    -        (49)      (106)       (73) 
---------  ---------  ---------  --------- 
  Total other expense, net              73     (3,829)      (971)    (6,326) 
---------  ---------  ---------  --------- 
Net income / (loss)              $     667  $ (12,511) $  11,243  $ (21,656) 
=========  =========  =========  =========  
Earnings / (loss) per share                                                  
Basic and diluted              $    0.00  $   (0.30) $    0.08  $   (0.54) 
Scorpio Tankers Inc. and Subsidiaries                     
Condensed Consolidated Balance Sheet                     
(unaudited)                                  
As of                
----------------------------------  
September 30,     December 31,   
In thousands of U.S. dollars                   2013              2012        
----------------  ---------------- 
Assets                                                                      
Current assets                                                              
Cash and cash equivalents                $        447,368  $         87,165 
Accounts receivable                                73,961            36,438 
Prepaid expenses and other current assets           3,871               956 
Inventories                                         3,498             2,169  
----------------  ---------------- 
Total current assets                              528,698           126,728  
----------------  ---------------- 
Non-current assets                                                          
Vessels and drydock                               640,855           395,412 
Vessels under construction                        371,236            50,251 
Other assets                                       14,045               889  
----------------  ---------------- 
Total non-current assets                        1,026,136           446,552  
----------------  ---------------- 
Total assets                             $      1,554,834  $        573,280  
================  ================  
Current liabilities                                                         
Bank loans                                         13,754             7,475 
Accounts payable                                    9,194            11,387 
Accrued expenses                                    3,254             3,057 
Derivative financial instruments                      675               844  
----------------  ---------------- 
Total current liabilities                          26,877            22,763  
----------------  ---------------- 
Non-current liabilities                                                     
Bank loans                                        157,543           134,984 
Derivative financial instruments                      309               743  
----------------  ---------------- 
Total non-current liabilities                     157,852           135,727  
----------------  ---------------- 
Total liabilities                                 184,729           158,490  
----------------  ----------------  
Shareholders' equity                                                        
Issued, authorized and fully paid in                                        
 share capital:                                                             
  Share capital                                     1,888               650 
  Additional paid in capital                    1,462,232           519,493 
Treasury shares                                    (7,938)           (7,938)
Hedging reserve                                      (236)             (329)
Accumulated deficit                               (85,841)          (97,086) 
----------------  ---------------- 
Total shareholders' equity                      1,370,105           414,790  
----------------  ---------------- 
Total liabilities and shareholders'                                         
 equity                                  $      1,554,834  $        573,280  
================  ================  
Scorpio Tankers Inc. and Subsidiaries                     
Condensed Consolidated Statement of Cash Flows                
(unaudited)                                  
For the nine months ended      
September 30,            
---------------------------------- 
In thousands of U.S. dollars                   2013              2012        
----------------  ----------------  
Operating activities                                                        
Net income / (loss)                      $         11,243  $        (21,656)
Loss from sale of vessels                               -            10,404 
Depreciation                                       16,665            10,213 
Amortization of restricted stock                    6,738             2,598 
Amortization of deferred financing fees               538             3,844 
Straight-line adjustment for charterhire                                    
 expense                                                7               225 
Unrealized gain on derivative financial                                     
 instruments                                         (483)              (38) 
----------------  ----------------  
34,708             5,590  
----------------  ---------------- 
Changes in assets and liabilities:                                          
Drydock payments                                   (1,448)             (150)
Increase in inventories                            (1,328)              (77)
Increase in accounts receivable                   (37,523)           (5,575)
(Increase)/decrease in prepaid expenses                                     
 and other current assets                          (2,942)              129 
(Increase)/decrease in other assets                  (394)            2,442 
Increase in accounts payable                        1,337            
 4,413 
(Decrease)/increase in accrued expenses               (29)              598  
----------------  ----------------  
(42,327)            1,780  
----------------  ---------------- 
Net cash (outflow) / inflow from                                            
 operating activities                              (7,169)            7,370  
----------------  ---------------- 
Investing activities                                                        
Acquisition of vessels and payments for                                     
 vessels under construction                      (585,182)         (176,556)
Proceeds from disposal of vessels                       -           101,335  
----------------  ---------------- 
Net cash outflow from investing                                             
 activities                                      (585,182)          (75,221) 
----------------  ---------------- 
Financing activities                                                        
Bank loan repayment                               (24,102)          (75,989)
Bank loan drawdown                                 52,050           124,173 
Debt issuance costs                               (12,266)           (2,944)
Gross proceeds from issuance of common                                      
 stock                                            983,537            27,000 
Equity issuance costs                             (35,531)           (1,137)
Purchase of treasury shares                             -            (2,440)
Dividends paid                                    (10,684)                -  
----------------  ---------------- 
Net cash inflow from financing activities         953,004            68,663  
----------------  ---------------- 
Increase in cash and cash equivalents             360,203               812 
Cash and cash equivalents at January 1,            87,165            36,833  
----------------  ---------------- 
Cash and cash equivalents at September                                      
 30,                                     $        447,368  $         37,645  
================  ================  
Scorpio Tankers Inc. and Subsidiaries                   
 Other operating data for the three and nine months ended September 30, 2013 
and 2012                                  
(unaudited)                                 
For the three months  For the nine months  
ended September 30,   ended September 30,  
--------------------- --------------------- 
2013       2012       2013       2012    
---------- ---------- ---------- ----------
Adjusted EBITDA(1) (in thousands                                            
 of U.S. dollars)                $   10,830 $    1,715 $   35,536 $    8,098 
Average Daily Results                                                       
Time charter equivalent per                                                 
 day(2)                          $   14,557 $   11,926 $   15,388 $   12,719
Vessel operating costs per                                                  
 day(3)                               6,851      6,935      6,656      7,690 
Aframax/LR2                                                                 
TCE per revenue day (2)          $   10,876 $   15,809 $   12,803 $   10,940
Vessel operating costs per                                                  
 day(3)                               9,112      7,645      7,799      8,622 
Panamax/LR1                                                                 
TCE per revenue day (2)          $   13,349 $   13,613 $   13,519 $   14,609
Vessel operating costs per                                                  
 day(3)                               8,174      7,271      7,570      7,783 
MR                                                                          
TCE per revenue day (2)          $   17,304 $   10,972 $   17,706 $   11,195
Vessel operating costs per                                                  
 day(3)                               5,956      6,593      5,930      7,338 
Handymax                                                                    
TCE per revenue day (2)          $   13,029 $   11,106 $   14,246 $   12,804
Vessel operating costs per                                                  
 day(3)                               7,157      5,524      6,690      7,414 
Fleet data                                                                  
Average number of owned vessels        17.3        9.9       14.9       10.4
Average number of time                                                      
 chartered-in vessels                  25.0       10.5       21.1        8.4 
Drydock                                                                     
Expenditures for drydock (in                                                
 thousands of U.S. dollars)               -          -          -          - 
(1)  See Non-GAAP Measure 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 October 28, 2013                      
Year               Ice  Employ  Vessel              
Vessel Name    Built        DWT   class  ment    type                    
-----------    -----      ------- ----- ------ --------                  
Owned                                                                    
vessels                                                                 
1   STI                                      SHTP                            
Highlander      2007       37,145   1A    (1)  Handymax                 
2   STI Amber                                SMRP                            
2012       52,000   -     (4)     MR                    
3   STI Topaz                                SMRP                            
2012       52,000   -     (4)     MR                    
4   STI Ruby                                 SMRP                            
2012       52,000   -     (4)     MR                    
5   STI Garnet                               SMRP                            
2012       52,000   -     (4)     MR                    
6   STI Onyx                                 SMRP                            
2012       52,000   -     (4)     MR                    
7   STI                                      SMRP                            
Sapphire        2013       52,000   -     (4)     MR                    
8   STI Emerald                              SMRP                            
2013       52,000   -     (4)     MR                    
9   STI Beryl                                SMRP                            
2013       52,000   -     (4)     MR                    
10  STI Le                                   SMRP                            
Rocher          2013       52,000   -     (4)     MR                    
11  STI                                      SMRP                            
Larvotto        2013       52,000   -     (4)     MR                    
12  STI                                      SMRP                            
Fontvieille     2013       52,000   -     (4)     MR                    
13  STI Ville       2013       52,000   -    Spot     MR                    
14  Noemi                                    SPTP                            
2004       72,515   -     (2)     LR1                   
15  Senatore                                 SPTP                            
2004       72,514   -     (2)     LR1                   
16  STI Harmony                              SPTP                            
2007       73,919   1A    (2)     LR1                   
17  STI                                      SPTP                            
Heritage        2008       73,919   1A    (2)     LR1                   
18  Venice                                   SPTP    Post-                   
2001       81,408   1C    (2)   Panamax                 
19  STI Spirit                               SLR2P                           
2008      113,100   -     (3)     LR2                    
-------                                        
Total owned DWT           1,148,5                                        
20                                          
=======                                        
Daily  Exp      
Year               Ice  Employ  Vessel    Base  iry      
Vessel Name    Built        DWT   class  ment    type     Rate  (5)      
-----------    -----      ------- ----- ------ -------- ------- ---      
Time Chartered-In                                                        
vessels                                                                 
20  Freja                                                           14-      
Polaris         2004       37,217   1B   SHTP  Handymax $12,700 Apr (6)  
(1)                   -14     
21  Kraslava                                                        18-      
2007       37,258   1B   SHTP  Handymax $12,800 May (7)  
(1)                   -14     
22  Krisjanis                                                       14-      
Valdemars       2007       37,266   1B   SHTP  Handymax $12,800 Apr (8)  
(1)                   -14     
23  Jinan                                                           28-      
2003       37,285   -    SHTP  Handymax $12,600 Apr      
(1)                   -15     
24  Iver                                                            03-      
Progress        2007       37,412   -    SHTP  Handymax $12,500 Mar (9)  
(1)                   -15     
25  Iver                                                            20-      
Prosperity      2007       37,455   -    SHTP  Handymax $12,500 Oct (10) 
(1)                   -14     
26  Histria                                                         04-      
Azure           2007       40,394   -    SHTP  Handymax $12,600 Apr (11) 
(1)                   -14     
27  Histria                                                         17-      
Coral           2006       40,426   -    SHTP  Handymax $12,800 Jul (12) 
(1)                   -14     
28  Histria                                                         15-      
Perla           2005       40,471   -    SHTP  Handymax $12,800 Jul (12) 
(1)                   -14     
29  STX Ace 6                                                       17-      
2007       46,161   -    SMRP     MR    $14,150 May (13) 
(4)                   -14     
30  Targale                                                         17-      
2007       49,999   -    SMRP     MR    $14,500 May (14) 
(4)                   -14     
31  Ugale                                                           15-      
2007       49,999   1B   SMRP     MR    $14,000 Jan (15) 
(4)                   -14     
32  Gan Triumph                                                     20-      
2010       49,999   -    SMRP     MR    $14,150 May      
(4)                   -14     
33  Nave Orion                                                      25-      
2013       49,999   -    SMRP     MR    $14,300 Mar (16) 
(4)                   -15     
34  Freja Lupus                                                     26-      
2012       50,385   -    SMRP     MR    $14,760 Apr (17) 
(4)                   -14     
35  Gan-Trust                                                       06-      
2013       51,561   -    SMRP     MR    $16,250 Jan (18) 
(4)                   -16     
36  Usma                                                            03-      
2007       52,684   1B   SMRP     MR    $13,500 Jan (19) 
(4)                   -14     
37  SN Federica                                                     15-   
2003       72,344   -    SPTP     LR1   $11,250 May (20) 
(2)                   -15     
38  King                                                            08-      
Douglas         2008       73,666        Spot     LR1   $14,000 Aug (21) 
-14     
39  Hellespont                                                      16-      
Promise         2007       73,669   -    SPTP     LR1   $12,500 Dec (22) 
(2)                   -13     
40  FPMC P                                                          09-      
Eagle           2009       73,800   -    SPTP     LR1   $14,525 Sep      
(2)                   -15     
41  FPMC P Hero                                                     02-      
2011       99,995   -    SLR2P    LR2   $14,750 May (23) 
(3)                   -14     
42  FPMC P                                                          09-      
Ideal           2012       99,993   -    SLR2P    LR2   $15,000 Jan (24) 
(3)                   -14     
43  Densa                                                           17-      
Alligator       2013      105,708   -    SLR2P    LR2   $16,500 Sep (25) 
(3)                   -14     
44  Khawr                                                           11-      
Aladid          2006      106,003   -    SLR2P    LR2   $15,400 Jul      
(3)                   -15     
45  Fair Seas                                                       31-      
2008      115,406   -    SLR2P    LR2   $16,250 Jan (26) 
(3)                   -14     
46  Pink Stars                                                      10-      
2010      115,592   -    SLR2P    LR2   $16,125 Apr      
(3)                   -14     
47  Four Sky                                                        02-      
2010      115,708   -    SLR2P    LR2   $16,250 Sep      
(3)                   -14     
48  Orange                                                          06-      
Stars           2011      115,756   -    SLR2P    LR2   $16,125 Apr      
(3)                   -14      
-------                                        
Total time                1,913,6                                        
chartered-in DWT             11                                          
=======                                        
Newbuildings currently                                                   
under construction                                                       
Ice          Vessel                   
Vessel Name     Yard        DWT   class          type                    
-----------    -----      ------- -----        --------                  
Product                                                                  
tankers                                                                  
49  Hull 2451       HMD  (27)  38,000   1A         Handymax                 
50  Hull 2452       HMD  (27)  38,000   1A         Handymax                 
51  Hull 2453       HMD  (27)  38,000   1A         Handymax                 
52  Hull 2454       HMD  (27)  38,000   1A         Handymax                 
53  Hull 2462       HMD  (27)  38,000   1A         Handymax                 
54  Hull 2463       HMD  (27)  38,000   1A         Handymax                 
55  Hull 2464       HMD  (27)  38,000   1A         Handymax                 
56  Hull 2465       HMD  (27)  38,000   1A         Handymax                 
57  Hull 2476       HMD  (27)  38,000   1A         Handymax                 
58  Hull 2477       HMD  (27)  38,000   1A         Handymax                 
59  Hull 2478       HMD  (27)  38,000   1A         Handymax                 
60  Hull 2479       HMD  (27)  38,000   1A         Handymax                 
61  Hull 2499       HMD  (27)  38,000   1A         Handymax                 
62  Hull 2500       HMD  (27)  38,000   1A         Handymax                 
63  Hull 2389       HMD  (27)  52,000                 MR                    
64  Hull 2390       HMD  (27)  52,000                 MR                    
65  Hull 2391       HMD  (27)  52,000                 MR                    
66  Hull 2392       HMD  (27)  52,000                 MR                    
67  Hull 2449       HMD  (27)  52,000                 MR                    
68  Hull 2450       HMD  (27)  52,000                 MR                    
69  Hull 2458       HMD  (27)  52,000                 MR                    
70  Hull 2459       HMD  (27)  52,000                 MR                    
71  Hull 2460       HMD  (27)  52,000                 MR                    
72  Hull 2461       HMD  (27)  52,000                 MR                    
73  Hull 2492       HMD  (27)  52,000                 MR                    
74  Hull 2493       HMD  (27)  52,000                 MR                    
75  Hull S1138      SPP  (28)  52,000                 MR                    
76  Hull S1139      SPP  (28)  52,000                 MR                    
77  Hull S1140      SPP  (28)  52,000                 MR                    
78  Hull S1141      SPP  (28)  52,000                 MR                    
79  Hull S1142      SPP  (28)  52,000                 MR                    
80  Hull S1143      SPP  (28)  52,000                 MR                    
81  Hull S1144      SPP  (28)  52,000                 MR                    
82  Hull S1145      SPP  (28)  52,000                 MR                    
83  Hull S1167      SPP  (28)  52,000                 MR                    
84  Hull S1168      SPP  (28)  52,000                 MR                    
85  Hull S1169      SPP  (28)  52,000                 MR                    
86  Hull S1170      SPP  (28)  52,000                 MR                    
87  Hull S5122      SPP  (28)  52,000                 MR                    
88  Hull S5123      SPP  (28)  52,000                 MR                    
89  Hull S5124      SPP  (28)  52,000                 MR                    
90  Hull S5125      SPP  (28)  52,000                 MR                    
91  Hull S703       HSHI (29) 114,000                 LR2                   
92  Hull S704       HSHI (29) 114,000                 LR2                   
93  Hull S705       HSHI (29) 114,000                 LR2                   
94  Hull S706       HSHI (29) 114,000                 LR2                   
95  Hull S709       HSHI (29) 114,000                 LR2                   
96  Hull S710       HSHI (29) 114,000                 LR2                   
97  Hull S715       HSHI (29) 114,000                 LR2                   
98  Hull S716       HSHI (29) 114,000                 LR2                   
99  Hull 5394       DSME (30) 114,000                 LR2                   
100 Hull 5395       DSME (30) 114,000                 LR2                   
101 Hull 5398       DSME (30) 114,000                 LR2                   
102 Hull 5399       DSME (30) 114,000                 LR2                    
-------                                       
Total product             3,356,0                                        
tankers DWT                  00                                          
=======                                        
Vessel                                        
size                 Vessel                   
Vessel Name     Yard       (cbm)                 type                    
-----------    -----      -------              --------                  
LPG                                                                      
Carriers                                                                
103 Hull 2336       DSME (31)  84,000                VLGC                   
104 Hull 2337       DSME (31)  84,000                VLGC                   
105 Hull 2338       DSME (31)  84,000                VLGC                   
106 Hull S749       HSHI (32)  84,000                VLGC                   
107 Hull S750       HSHI (32)  84,000                VLGC                   
108 Hull S751       HSHI (32)  84,000                VLGC                   
109 Hull S752       HSHI (32)  84,000                VLGC                   
110 Hull S755       HSHI (32)  84,000                VLGC                   
111 Hull S756       HSHI (32)  84,000                VLGC                   
112 Hull S753       HSHI (32)  84,000                VLGC                   
113 Hull S754       HSHI (32)  84,000                VLGC                    
-------                                        
Total LPG carriers                                                       
(cbm)                     924,000                                        
=======                                        
(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        
Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related  
party to the Company.                                                  
(3)  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.                                                               
(4)  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.                                                               
(5)  Redelivery from the charterer is plus or minus 30 days from the expiry  
date.                                                                  
(6)  We have an option to extend the charter for an additional year at       
$14,000 per day.                                                       
(7)  We have an option to extend the charter for an additional year at       
$13,650 per day.                                                       
(8)  We have an option to extend the charter for an additional year at       
$13,650 per day. The agreement also contains a 50% profit and loss      
sharing provision whereby we split all of the vessel's profits and      
losses above or below the daily base rate with the vessel's owner.     
(9)  We have an option to extend the charter for an additional year at       
$13,500 per day.                                                       
(10) We have an option to extend the charter for an additional year at       
$13,250 per day.                                                       
(11) We have an option to extend the charter for an additional year at       
$13,550 per day.                                                       
(12) We have options to extend each charter for an additional year at        
$13,550 per day.                                                       
(13) We have an option to extend the charter for an additional year at       
$15,150 per day.                                                       
(14) We have options 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.                                                          
(15) We have an option to extend the charter for an additional year at       
$15,000 per day.                                                       
(16) We have an option to extend the charter for an additional year at       
$15,700 per day.                                                       
(17) We have an option to extend the charter for an additional year at       
$16,000 per day.                                                       
(18) 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. We have options to extend the        
charter for up to two consecutive one year periods at $17,500 per day   
and $18,000 per day, respectively.                                     
(19) We have an option to extend the charter for an additional year at       
$14,500 per day.                                                       
(20) We have an option to extend the charter for an additional year at       
$12,500 per day. We have also entered into an agreement with the        
vessel's owner whereby we split all of the vessel's profits above the   
daily base rate.                                                       
(21) We have an option to extend the charter for an additional year at       
$15,000 per day.                                                       
(22) We have an option to extend the charter for an additional six months at 
$14,250 per day.                                                       
(23) We have extended the charter for six months at $15,000 per day          
beginning in November 2013. Subsequent to that, we have options to      
extend the charter for two consecutive six month periods at $15,250 per 
day, and $15,500 per day respectively.                                 
(24) We have options to extend the charter for two consecutive six month     
periods at $15,250 per day and $15,500 per day respectively.           
(25) We have an option to extend the charter for one year at $17,550 per     
day.                                                                   
(26) We have options to extend the charter for two consecutive six month     
periods at $16,500 per day and $16,750 per day, respectively.          
(27) These newbuilding vessels are being constructed at HMD (Hyundai Mipo    
Dockyard Co. Ltd. of South Korea). 24 vessels are expected to be        
delivered in 2014 and two vessels in the second quarter of 2015.       
(28) These newbuilding vessels are being constructed at SPP (SPP             
Shipbuilding Co., Ltd. of South Korea ). 12 vessels are expected to be  
delivered during the second, third and fourth quarters of 2014 and four 
in the first and second quarters of 2015.                              
(29) These newbuilding vessels are being constructed at HSHI (Hyundai Samho  
Heavy Industries Co., Ltd.). Six vessels are expected to be delivered   
in the third and fourth quarters of 2014 and two in the first quarter   
of 2015.                                                               
(30) These newbuilding vessels are being constructed at DSME (Daewoo         
Shipbuilding and Marine Engineering). Two vessels are expected to be    
delivered in the fourth quarter of 2014 and two in the second quarter   
of 2015.                                                               
(31) These newbuilding vessels are being constructed at DSME (Daewoo         
Shipbuilding and Marine Engineering). One vessel is expected to be      
delivered in the third quarter and two in the fourth quarter of 2015.  
(32) These newbuilding vessels are being constructed at HSHI (Hyundai Samho  
Heavy Industries Co., Ltd.). Two vessels are expected to be delivered   
each in the second quarter, third and fourth quarters of 2015 and two   
in the first quarter of 2016.                                           


 
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 and gas
carriers. The Company intends to acquire modern, high-quality tankers
and gas carriers through timely and selective acquisitions. The
Company is currently concentrating on product or coated tankers and
gas carriers because of the fundamentals of these segments, which the
Company believes includes:

 
--  increasing demand for refined products and LPG,
--  increasing ton miles (distance between new refiners and areas of 
demand), and
--  reduced order book. 


 
 
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.
 
On October 28, 2013, the Company's board of directors declared a
quarterly cash dividend of $0.07 per share, payable on December 18,
2013 to all shareholders as of December 3, 2013 (the record date). On
September 25, 2013, the Company paid a quarterly cash dividend on its
common stock of $0.035 per share to all shareholders as of September
10, 2013 (the record date).
 
Share Buyback Program
 
On July 9, 2010, the Company's board of directors authorized a share
buyback program of up to $20 million. The Company 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. 
 
As of October 28, 2013, 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 19
tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 12 MR
tankers, and one post-Panamax tanker) with an average age of 4.0
years, time charters-in 29 product tankers (eight LR2, four LR1,
eight MR and nine Handymax tankers), and has contracted for 65
newbuilding vessels (28 MR, 12 LR2, and 14 Handymax ice class-1A
product tankers, and 11 Very Large Gas Carriers), 44 of which are
expected to be delivered within 2014, 19 within 2015 and the
remaining two in the first quarter of 2016. 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-GAAP Measures
 This press release describes adjusted net income
and Adjusted EBITDA, which are not measures prepared in accordance
with IFRS (i.e. "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 income / (loss)

  
For the three months ended September 30,   
------------------------------------------  
2013                  2012          
--------------------  -------------------- 
In thousands of U.S. dollars                                                
 except per share and share data   Amount   Per share    Amount   Per share  
---------  ---------  ---------  --------- 
  Net income / (loss)            $     667  $    0.00  $ (12,511) $   (0.30)
  Adjustments:                                                               
Loss from sale of vessels            -       0.00      5,879       0.14  
Write off of deferred                                                    
financing fees                      -       0.00      2,977       0.07  
Unrealized gain on                                                       
derivative financial                                                    
instruments                      (118)     (0.00)       (38)     (0.00) 
---------  ---------  ---------  --------- 
  Total adjustments                   (118)     (0.00)     8,818       0.21  
---------  ---------  ---------  --------- 
  Adjusted net income/ (loss)    $     549  $    0.00  $  (3,693) $   (0.09) 
=========  =========  =========  =========  
For the nine months ended September 30,   
------------------------------------------  
2013                  2012          
--------------------  --------------------  
Amount   Per share    Amount   Per share  
---------  ---------  ---------  --------- 
  Net income / (loss)            $  11,243  $    0.08  $ (21,656) $   (0.54)
  Adjustments:                                                               
Loss from sale of vessels            -       0.00     10,404       0.26  
Write off of deferred                                                    
financing fees                      -       0.00      2,977       0.07  
Unrealized gain on                                                       
derivative financial                                                    
instruments                      (483)     (0.00)       (38)     (0.00) 
---------  ---------  ---------  --------- 
  Total adjustments                   (483)     (0.00)    13,343       0.33  
---------  ---------  ---------  --------- 
  Adjusted net income/ (loss)    $  10,760  $    0.08  $  (8,313) $   (0.21) 
=========  =========  =========  =========  


 
Adjusted EBITDA

  
For the three months   For the nine months  
ended September 30,   ended September 30,  
--------------------  -------------------- 
In thousands of U.S. dollars        2013       2012       2013       2012    
---------  ---------  ---------  --------- 
Net income / (loss)              $     667  $ (12,511) $  11,243  $ (21,656)
  Financial expenses                   448      4,108      2,323      6,583 
  Unrealized gain on derivative                                              
financial instruments              (118)       (38)      (483)       (38)
  Financial income                    (400)        (4)      (950)        (6)
  Depreciation                       6,377      3,389     16,665     10,213 
  Amortization of restricted                                                 
stock                             3,856        892      6,738      2,598 
  Loss from sale of vessels              -      5,879          0     10,404  
---------  ---------  ---------  --------- 
  Adjusted EBITDA                $  10,830  $   1,715  $  35,536  $   8,098  
=========  =========  =========  =========  


 
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. 
 
 
 
Scorpio Tankers Inc. 
212-542-1616 


 
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