Scorpio Tankers Inc. Scorpio Tankers Inc. Credit Suisse Small & Mid Cap Conference

Transcription

1 0 Scorpio Tankers Inc. Scorpio Tankers Inc. Credit Suisse Small & Mid Cap Conference September 2013

2 1 Fleet List Newbuildings Under Construction Owned vessels Handymax Newbuildings (38,000 dwt) MR Newbuildings (52,000 dwt) LR2 Newbuildings (114,000 dwt) Name Year DWT Type Name Year Yard Name Year Yard Name Year Yard STI Highlander ,145 Handymax STI Comandante Q2-14 HMD STI Ville Q3-13 HMD STI Elysees Q3-14 HSHI STI Amber ,000 MR STI Brixton Q2-14 HMD STI Duchessa Q1-14 HMD STI Madison Q3-14 HSHI STI Topaz ,000 MR STI Pimlico Q2-14 HMD STI Opera Q1-14 HMD STI Park Q3-14 HSHI STI Ruby ,000 MR STI Hackney Q2-14 HMD STI Venere Q2-14 HMD STI Sloane Q4-14 HSHI STI Garnet ,000 MR STI Acton Q2-14 HMD STI Mythos Q2-14 HMD STI Condotti Q4-14 HSHI STI Onyx ,000 MR STI Finchley Q2-14 HMD STI Powai Q2-14 HMD STI Veneto Q4-14 HSHI STI Sapphire ,000 MR STI Fulham Q3-14 HMD STI Olivia Q2-14 HMD STI Orchard Q4-14 DSME STI Emerald ,000 MR STI Camden Q3-14 HMD STI Chelesa Q2-14 HMD STI Broadway Q4-14 DSME STI Beryl ,000 MR STI Battersea Q3-14 HMD STI Lexington Q2-14 HMD STI Oxford Q1-15 HSHI STI Le Rocher ,000 MR STI Wembley Q3-14 HMD STI Yorkville Q3-14 HMD STI Connaught Q1-15 HSHI STI Larvotto ,000 MR STI Clapham Q3-14 HMD STI Battery Q4-14 HMD STI Winnie Q2-15 DSME STI Fontvieille ,000 MR STI Poplar Q3-14 HMD STI Notting Hill Q2-15 HMD STI Lauren Q2-15 DSME Noemi ,515 LR1 STI Hammersmith Q4-14 HMD STI Westminster Q2-15 HMD Senatore ,514 LR1 STI Rotherhithe Q4-14 HMD STI Virtus Q2-14 SPP STI Harmony ,919 LR1 STI Aqua Q2-14 SPP VLGC Newbuildings (84,000 cbm) STI Heritage ,919 LR1 STI Dama Q3-14 SPP Name Year Yard Venice ,408 Post-Panamax STI Regina Q3-14 SPP STI Shanghai Q2-15 HSHI STI Spirit ,100 LR2 STI Mayfair Q3-14 SPP STI Houston Q2-15 HSHI STI Tribeca Q4-14 SPP STI Amsterdam Q3-15 HSHI STI Soho Q4-14 SPP STI Barelona Q4-15 HSHI STI Gramercy Q4-14 SPP STI Ulsan Q3-15 HSHI STI Manhattan Q1-15 SPP STI Monaco Q4-15 HSHI STI Bronx Q1-15 SPP STI Dubai Q3-15 DSME STI Brooklyn Q1-15 SPP STI Tokyo Q4-15 DSME STI Queens Q2-15 SPP STI Geneva Q4-15 DSME 18 existing vessels, plus 51 Product Tanker and 9 VLGC Newbuilds

3 2 Chartered-In Fleet STNG maintains a Chartered-in Fleet of ~29 vessels to benefit the company while newbuilds are under construction Predominantly short term charters Charters at prevailing low rates (23 out of 29 expire before October 2014) VAR is constantly monitored Chartered-in fleet is profitable YTD October 2012: 15 TC-IN September 2013: 29 TC-IN Chartered Vessels Name Year Type Charter Expiration Option Expiry Rate ($/ day) 1 Freja Polaris 2004 Handymax 14-Apr Apr-15 12,700 2 Jinan 2003 Handymax 28-Apr-15-12,600 3 Kraslava 2007 Handymax 18-May May-15 12,800 4 Krisjanis Valdemars (1) 2007 Handymax 14-Apr Apr-15 12,800 5 Histria Azure 2007 Handymax 04-Apr Apr-15 13,550 6 Histria Coral 2006 Handymax 17-Jul Jul-15 12,800 7 Histria Perla 2005 Handymax 15-Jul Jul-15 12,800 8 Iver Progress 2007 Handymax 15-Apr Apr-16 12,500 9 Iver Prosperity 2007 Handymax 15-Oct Oct-15 12, STX Ace MR 17-May May-15 14, Targale 2007 MR 17-May May-17 14, Ugale 2007 MR 15-Jan Jan-15 14, Nave Orion 2013 MR 25-Mar Mar-16 14, Freja Lupus 2012 MR 26-Apr Apr-15 14, Gan-Trust 2013 MR 06-Jan Jan-18 16, Usma 2007 MR 03-Jan Jan-15 13, Gan-Triumph 2010 MR 20-May-14-14, FN Federica (2) 2003 LR1 13-Apr Apr-16 11, Hellespont Promise 2007 LR1 16-Dec Jun-14 12, FPMC P Eagle (1) 2009 LR1 09-Sep Sep-15 12, King Douglas 2008 LR1 08-Aug Aug-15 13, Khawr Aladid 2006 LR2 11-Jul-15-15, FPMC P Hero (1) 2011 LR2 02-Nov May-15 14, FPMC P Ideal (1) 2012 LR2 09-Jan Jan-15 15, Fair Seas 2008 LR2 31-Jan Jan-15 16, Pink Stars 2010 LR2 10-Apr-14-16, Four Sky 2009 LR2 01-Sep-14-16, Orange Stars 2011 LR2 06-Apr-14-16, Densa Alligator 2013 LR2 17-Sep Sep-15 16,500 Provides greater market presence while building fleet (1) 50/50 Profit Loss agreement (2) 50/50 Profit Share agreement

4 3 90 Fleet Growth Since 2010 IPO (by Vessel Type) 72 (1) ECO Design # of Vessels Q Q Q Q Q Q Q Q Q Q Q Q LR1 Handymax LR2 MR VLGC LR1 Opt. Handymax Opt. LR2 Opt. MR Opt. Time Charter Options (2) (1) Includes Gan-Trust (Time Charter) & VLGC s (2) Assumes Exercising of Time Charter Options

5 4 Summary of ECO Based Newbuilding Program Fuel efficiency benefits to a new ECO product tanker: Revenue benefits (MRs: Greater than $3,000/ day) Cost benefits (Lower operating expenses, estimated at $500-$750/ day) Intangible benefits (Charterer preferences for a greener vessel) Early-mover advantage as first to order and first to stop Our vessels deliver in while new vessel orders available in Large newbuilding program provides scale to Scorpio in key pools No restriction on where our vessels can trade We have the largest independent ECO newbuilding fleet which are preferred by our customers Our Competitors cannot replicate STNG s first mover advantage until much later in the cycle

6 5 US Shifting Role in the Energy Marketplace Average US domestic crude oil production has increased by 2 MBPD since end 2008 to 7.0 MBPD end 2012 US crude exports are forbidden by law; Product exports have increased with crude production US Crude production increases along with refinery expansions in US Gulf have lead to product exports from the US rising by 250% since beginning Majority of exports went to Latin America/Caribs US has become a net exporter of Petroleum Products Exports surpassed Imports by 44 Mbarrels in 2011 and by 373 Mbarrels in 2012 MBPD US Crude Production increased by 2 MBPD Jan-04 Aug-04 Mar-05 Oct-05 May-06 Dec-06 Jul-07 Feb-08 Sep-08 Apr-09 Nov-09 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 MBPD US Imports / Exports of Petroleum Products Jan-00 Dec-00 Nov-01 Oct-02 Sep-03 Aug-04 Jul-05 Jun-06 May-07 Apr-08 Mar-09 Feb-10 Jan-11 Dec-11 Nov-12 MBPD US Exports by Region 2004 to January 2013 Jan-04 Aug-04 Mar-05 Oct-05 May-06 Dec-06 Jul-07 Feb-08 Sep-08 Apr-09 Nov-09 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 US Crude Production Total Exports Total Imports LatAm Caribs Europe Other Source: EIA, IEA Source: EIA, IEA Source: EIA, IEA

7 6 Demand Dynamics: Refinery Capacity Expansion According to IEA, refinery capacity is expected to increase by 7 million barrels a day between ; ~90% will be added in the broader Asian and Middle East regions New low-cost capacity in Asia and Middle East is increasingly forcing rationalization of old high-cost capacity in the West, structurally favoring more long-haul products trade Due to refinery closures (USAC, Caribs, Europe), refined oil products ton mile growth is expected to outpace the demand for refined oil products, increasing the demand for product tankers m. bpd m. bpd (0.2) (0.4) (0.6) (0.8) (1.0) North America Global Total m. bpd m. bpd Western Europe (0.5) (1.0) Middle East m. bpd Asia Source: Clarksons Research Services Refinery capacity is being added further away from consuming regions

8 7 Increase In New Routes Leading To Greater Ship Demand M. East-Europe Gas Oil Jet Fuel S. Korea-Japan Gas Oil Gasoline U.S. W.C-S. America Diesel Caribbean-N. America Gasoline Naptha Jet Fuel M. East-F. East Naptha M. East & India- U.S. West Coast Asia-Australia Intra-Asia Gas Oil Naptha Jet Fuel Gas Oil Diesel Map Key: New ROUTES Traditional ROUTES

9 8 FOSFA (Federation of Oils, Seeds and Fats Association) Routes PALM OIL VEGETABLE OIL Map Key: MOLASSES UAN CAUSTIC SODA

10 9 Top VLGC Owners By Q4 2015, STNG will be a leading VLGC operator with the youngest fleet in the LPG market STNG is most attractive partner for any of the leading VLGC Owners Fleet Size Average Age BW Group Stolt/ FRO-12 (Avance) JX Group Scorpio Tankers 0.3 Nippon Yusen Kaisha Petredec S.A.M. Mitsui O.S.K. Lines Dorian LPG Current Orderbook Avg. Age (Q4-15) Source: Clarksons Research Services