Scorpio Tankers announced updates on fourth quarter of 2023 Daily TCE Revenues and recent debt and lease activity.
Fourth Quarter of 2023 Daily Time Charter Equivalent (“TCE”) Revenues
Below is a summary of the estimated average daily Time Charter Equivalent (“TCE”) revenue and duration of contracted voyages and time charters for the Company’s vessels (both in the pools and outside of the pools) thus far in the fourth quarter of 2023 as of the date hereof:
| Pool and Spot Market | Time Charters Out of the Pool | ||||||||||
| Vessel class | Average Daily TCE Revenue (1) | Expected Revenue Days (2) | % of Days | Average Daily TCE Revenue (1) | Expected Revenue Days (2) | % of Days | |||||
| LR2 | $ | 38,000 | 2,550 | 92 | % | $ | 30,750 | 910 | 100 | % | |
| MR | $ | 32,500 | 4,850 | 87 | % | $ | 21,800 | 450 | 100 | % | |
| Handymax | $ | 30,000 | 1,250 | 84 | % | N/A | N/A | N/A |
| (1) | TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is 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. |
| (2) | Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of expected off-hire days during the period associated with major repairs or drydockings. Consequently, Expected Revenue Days represent the total number of days the vessel is expected to be available to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in revenue days. We use revenue days to show changes in net vessel revenues between periods. |
Debt and Lease Activity
Subsequent to debt and lease activity announced in our Earnings Press Release on November 9th, the Company has recently committed to repaying the debt or lease financing obligations on 13 vessels consisting of:
- Three 2013 built MR product tankers (STI Beryl, STI Le Rocher, and STI Larvotto) that are currently financed as part of the IFRS 16 – Leases – 3 MR lease financing. The purchases are expected to occur in December 2023 for an aggregate amount of $29.1 million.
- Four 2012 built MR product tankers (STI Ruby, STI Topaz, STI Garnet, and STI Onyx) that are currently financed as part of the BCFL Lease Financing (MRs). The purchases are expected to occur in December 2023 and January 2024 for an aggregate amount of $29.0 million.
- Three 2014 built Handymax product tankers (STI Acton, STI Camden, and STI Clapham) that are currently financed as part of the Prudential Credit Facility. These repayments are expected to occur in January 2024 for $33.7 million.
- Three 2015 built MR product tankers (STI Pontiac, STI Notting Hill and STI Black Hawk) that are currently financed as part of the 2021 TSFL Lease Financing. The purchases are expected to occur in March 2024 for an aggregate amount of $45.6 million.
Emanuele Lauro, Chairman and Chief Executive Officer, commented “The product tanker market remains strong, MR rates have led the way and we are seeing an improvement in LR2 rates as winter demand increases and Middle East refinery maintenance concludes. Our balance sheet continues to improve and the commitments to repay the debt or lease financing obligations on 13 vessels reflect our commitment to lowering leverage and borrowing costs.”
Outstanding Debt
The table below summarizes the Company’s outstanding indebtedness as of the dates presented and pro-forma for previously announced debt and lease repayments and drawdowns which have been committed but are pending closing:
| In millions | September 30, 2023 | November 8, 2023 | December 12, 2023 | December 12, 2023 pro-forma* | |||||||
| Gross debt outstanding | $ | 1,795,695 | $ | 1,830,140 | $ | 1,784,656 | $ | 1,534,279 | |||
| Cash & cash equivalents | 364,908 | 521,176 | 558,363 | 307,986 | |||||||
| Net debt | $ | 1,430,787 | $ | 1,308,964 | $ | 1,226,293 | $ | 1,226,293 |
| * | Amounts reflect the balances as of December 12, 2023, adjusted for previously announced debt and lease repayments and debt drawdowns which are expected to occur in December 2023 and the first quarter of 2024. |
There is currently $288.2 million available under the revolving portion of the 2023 $1.0 Billion Credit Facility.