Results for the three months ended
For the three months ended
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Results for the nine months ended
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For the nine months ended
Declaration of Dividend
On
Summary of Third Quarter 2023 and Other Recent Significant Events
- Below is a summary of the average daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS Measures section below) 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 (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):
Pool and Spot Market | Time | ||||||||||
Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | Average Daily TCE Revenue | Expected Revenue Days (1) | % of Days | ||||||
LR2 | $ | 40,000 | 2,550 | 50 | % | $ | 30,750 | 910 | 100 | % | |
MR | $ | 31,000 | 4,850 | 48 | % | $ | 21,800 | 450 | 100 | % | |
Handymax | $ | 30,000 | 1,250 | 47 | % | N/A | N/A | N/A |
(1) 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. The Company uses revenue days to show changes in net vessel revenues between periods.
- Below is a summary of the average daily TCE revenue earned by the Company's vessels during the third quarter of 2023:
Average Daily TCE Revenue | ||||
Vessel class | Pool / Spot | |||
LR2 | $ | 29,430 | $ | 31,089 |
MR | $ | 29,181 | $ | 22,192 |
Handymax | $ | 22,875 | N/A |
- On
November 9, 2023 , the Company’s Board of Directors replenished the 2023 Securities Repurchase Program to purchase up to an aggregate of$250 million of the Company’s securities which, in addition to its common shares also consist of its Senior Unsecured Notes Due 2025 (NYSE: SBBA). This program resets the program that was previously replenished onMay 31, 2023 . There is$250 million available under the 2023 Securities Repurchase Program as ofNovember 9, 2023 . - The Company recently entered into an agreement to sell the 2012 built MR product tanker, STI Amber, for a selling price of
$33.7 million . As a result, the Company gave notice to exercise the purchase option on this vessel on the BCFL Lease Financing (MRs), which is expected to result in a lease liability repayment of$8.2 million . The sale of this vessel and the corresponding lease repayment are expected to close before the end of the fourth quarter of 2023. - In
October 2023 , the Company gave notice to exercise the purchase options on 10 lease financed vessels consisting of (i) two Handymax vessels and four LR2 product tankers on the 2021$146.3 Million Lease Financing (STI Rotherhithe, STI Hammersmith, STI Broadway, STI Connaught, STI Lauren and STI Winnie), and (ii) three MR product tankers and an LR2 product tanker on the 2021 AVIC Lease Financing (STI Soho, STI Osceola, STI Memphis and STI Lombard). These purchases are expected to take place in the fourth quarter of 2023 and first quarter of 2024 and the aggregate lease liability is expected to be$197.9 million at the date of purchase. - In
October 2023 , the Company closed on the previously announced exercise of purchase options on eight lease financed vessels consisting of (i) five LR2 product tankers on the CSSC Lease Financing (STI Gauntlet, STI Gladiator, STI Goal, STI Gratitude and STI Guide), and (ii) an MR product tanker and two LR2 product tankers (STI Maximus, STI Lily and STI Lotus) on the IFRS 16 - Leases -$670.0 Million lease financing. The Company repaid the aggregate outstanding lease liability of$195.9 million as a result of these purchases. - In
July 2023 , the Company executed its previously announced 2023$1.0 Billion Credit Facility. In July andAugust 2023 , the Company drew an aggregate of$576.4 million from this facility (split evenly between the term loan and the revolver) to finance 26 vessels. InSeptember 2023 , the Company repaid$288.2 million on the revolving portion of this credit facility, which may be re-borrowed in the future. InNovember 2023 , the Company drew down$202.3 million from this facility (split evenly between the term loan and the revolver) and five LR2 product tankers (STI Lotus, STI Lily, STI Gladiator, STI Gratitude, and STI Goal) and three MR product tankers (STI Maximus, STI Leblon and STI Bosphorus) were placed as collateral under the facility. - In
September 2023 , the Company executed its previously announced 2023$94.0 Million Credit Facility. Upon execution of the credit facility, the Company drew down$43.8 million and two vessels (STI Marshall and STI Grace) were placed as collateral under the facility. InOctober 2023 , the Company drew down$50.2 million and two vessels (STI Guide and STI Gauntlet) were placed as collateral under the facility. - During the third quarter of 2023, the Company closed on the previously announced exercise of purchase options on eight MR product tankers (STI Mighty, STI Modest, STI Maestro, STI Maverick, STI Millennia, STI Miracle, STI Bosphorus and STI Leblon) and an LR2 product tanker (STI Supreme) which were financed on the IFRS 16 - Leases -
$670.0 Million lease financing, 2020 CMBFL Lease Financing, and the Ocean Yield Lease Financing. These transactions resulted in an aggregate debt reduction of$207.9 million . - During the third quarter of 2023, the Company completed the previously announced debt repayments for six vessels which were financed on the 2019 DNB / GIEK Credit Facility (STI Condotti and STI Sloane), 2020
$225.0 Million Credit Facility (STI Kingsway and STI Spiga) and Hamburg Commercial Credit Facility (STI Veneto and STI Poplar). These transactions resulted in an aggregate debt reduction of$101.3 million . - During the third quarter of 2023, the Company gave notice to exercise the purchase options on nine vessels consisting of six MR product tankers (STI Galata, STI La Boca, STI Esles II, STI Donald C Trauscht, STI Jardins and STI San Telmo) and three LR2 product tankers (STI Stability, STI Solace and STI Solidarity). These vessels are currently financed on the 2020 SPDBFL Lease Financing, 2020 TSFL Lease Financing, and BCFL Lease Financing (LR2s) and the repurchases are expected to occur in the fourth quarter of 2023 and first quarter of 2024. This will result in a reduction of lease liabilities of
$136.0 million in the fourth quarter of 2023 and$38.3 million in the first quarter of 2024. - In
July 2023 , the Company sold the 2013 built MR product tanker, STI Ville, for$32.5 million . As the vessel was unencumbered, the Company made no debt repayments associated with this sale. - Since
July 1, 2023 and through the date of this press release, the Company has repurchased an aggregate of 1,889,643 of its common shares in the open market at an average price of$48.02 per share.
Securities Repurchase Program
From
From
On
There is
Diluted Weighted Number of Shares
The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company’s equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.
For the three and nine months ended
Conference Call
On
Title:
Date:
Time:
The conference call will be available over the internet, through the
https://edge.media-server.com/mmc/p/suwrc98n
Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
The conference will also be available telephonically:
US/
International Dial-In Number: 1 412-902-4260
Please ask to join the
Participants should dial into the call 10 minutes before the scheduled time.
Current Liquidity
As of
Debt
The following table sets forth the unscheduled debt and lease repayments that the Company has recently completed or are pending. This table excludes the
Facility | Repayment date | Principal balance repaid (in millions) | Vessels | ||
Unscheduled repayments made - Q3 2023 | |||||
IFRS 16 - Leases - | Jul-23 | $ | 143.6 | STI Miracle*, STI Maestro*, STI Mighty*, STI Modest*, STI Maverick*, and STI Millennia* | |
Ocean Yield Lease Financing | Aug-23 | 27.8 | STI Supreme* | ||
2019 DNB / GIEK Credit Facility | Aug-23 | 34.8 | STI Condotti* and STI Sloane* | ||
2020 | Aug-23 | 35.2 | STI Spiga* and STI Kingsway* | ||
2020 CMBFL Lease Financing | Sep-23 | 36.5 | STI Leblon* and STI Bosphorus* | ||
Hamburg Commercial Credit Facility | Sep-23 | 31.3 | STI Veneto and STI Poplar | ||
Total unscheduled repayments - Q3 2023 | $ | 309.2 | |||
Unscheduled repayments made - Q4 2023 | |||||
CSSC Lease Financing | Oct-23 | 110.4 | STI Gladiator*, STI Goal*, STI Gratitude*, STI Guide** and STI Gauntlet** | ||
IFRS 16 - Leases - | Oct-23 | 85.5 | STI Maximus*, STI Lily* and STI Lotus* | ||
Total unscheduled repayments - | $ | 195.9 | |||
Purchase option notices issued, repayment pending | |||||
BCFL Lease Financing (MRs) | Nov-23 | 8.2 | STI Amber*** | ||
2020 TSFL Lease Financing | Nov-23 | 38.1 | STI Galata and STI La Boca | ||
2020 SPDBFL Lease Financing | Nov-23 | 39.5 | STI Donald C Trauscht* and STI Esles II* | ||
BCFL Lease Financing (LR2s) | Dec-23 | 58.4 | STI Stability*, STI Solace* and STI Solidarity* | ||
2021 | Dec-23 | 120.5 | STI Rotherhithe, STI Hammersmith, STI Broadway, STI Connaught, STI Lauren and STI Winnie | ||
2020 SPDBFL Lease Financing | Jan-24 | 38.3 | STI Jardins* and STI San Telmo* | ||
2021 AVIC Lease Financing | Jan-24 | 77.4 | STI Soho*, STI Osceola*, STI Memphis and STI Lombard | ||
Total repayments pending | $ | 380.4 | |||
* Vessel subsequently collateralized or is expected to be collateralized on the 2023 | |||||
** Vessel subsequently collateralized on the 2023 | |||||
*** Vessel expected to be sold in Q4 2023 |
Set forth below is a summary of the principal balances of the Company’s outstanding indebtedness as of the dates presented:
In thousands of | Outstanding Principal as of | Outstanding Principal as of | Outstanding Principal as of | ||||
1 | Hamburg Commercial Credit Facility (1) | $ | 32,086 | $ | — | $ | — |
2 | Prudential Credit Facility | 36,513 | 35,126 | 34,202 | |||
3 | 2019 DNB / GIEK Credit Facility (1) | 34,781 | — | — | |||
4 | BNPP Sinosure Credit Facility | 75,121 | 75,121 | 69,667 | |||
5 | 2020 | 35,198 | — | — | |||
6 | 2023 | 216,525 | 208,050 | 199,575 | |||
7 | 2023 | 47,934 | 46,780 | 46,780 | |||
8 | 2023 | 117,394 | 113,142 | 113,142 | |||
9 | 2023 | — | 269,344 | 471,644 | |||
10 | 2023 | — | 43,750 | 94,000 | |||
11 | Ocean Yield Lease Financing (1) | 54,895 | 26,141 | 25,883 | |||
12 | BCFL Lease Financing (LR2s) (1) | 62,837 | 60,157 | 59,269 | |||
13 | CSSC Lease Financing (1) | 113,994 | 110,353 | — | |||
14 | BCFL Lease Financing (MRs) (1) | 45,040 | 40,820 | 39,492 | |||
15 | 2020 CMBFL Lease Financing (1) | 36,468 | — | — | |||
16 | 2020 TSFL Lease Financing (1) | 38,947 | 38,117 | 38,117 | |||
17 | 2020 SPDBFL Lease Financing (1) | 80,264 | 78,640 | 78,640 | |||
18 | 2021 AVIC Lease Financing (1) | 81,009 | 79,196 | 79,196 | |||
19 | 2021 CMBFL Lease Financing | 64,785 | 63,155 | 62,750 | |||
20 | 2021 TSFL Lease Financing | 47,807 | 46,712 | 46,712 | |||
21 | 2021 | 127,110 | 123,815 | 120,520 | |||
22 | 2021 Ocean Yield Lease Financing | 61,032 | 59,557 | 59,060 | |||
23 | 2022 AVIC Lease Financing | 109,220 | 106,927 | 106,927 | |||
24 | IFRS 16 - Leases - 3 MR | 16,904 | 14,713 | 13,993 | |||
25 | IFRS 16 - Leases - | 231,015 | 85,508 | — | |||
26 | Unsecured Senior Notes Due 2025 | 70,571 | 70,571 | 70,571 | |||
Gross debt outstanding | 1,837,450 | 1,795,695 | 1,830,140 | ||||
Cash and cash equivalents | 313,923 | 364,908 | 521,176 | ||||
Net debt | $ | 1,523,527 | $ | 1,430,787 | $ | 1,308,964 |
(1) Refer to the preceding table for a description of unscheduled payment activity that has recently occurred or is expected to occur.
(2) The 2023
(3) In
Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of
In millions of | Repayments/maturities of unsecured debt | Vessel financings - announced vessel purchases and maturities in 2023 and 2024 | Vessel financings - scheduled repayments, in addition to maturities in 2025 and thereafter | Total (1) | Repayments of new borrowings after | Pro forma, including new borrowing | |||||||
$ | — | $ | 195.9 | $ | 22.2 | $ | 218.1 | $ | — | $ | 218.1 | ||
Remaining Q4 2023 (2) | — | 264.7 | 39.1 | 303.8 | 5.9 | 309.7 | |||||||
Q1 2024 (2) | — | 115.7 | 47.7 | 163.4 | 7.2 | 170.6 | |||||||
Q2 2024 | — | — | 53.2 | 53.2 | 7.2 | 60.4 | |||||||
Q3 2024 (3) | — | 15.0 | 47.8 | 62.8 | 7.2 | 70.0 | |||||||
Q4 2024 (4) | — | 5.2 | 50.2 | 55.4 | 7.2 | 62.6 | |||||||
2025 and thereafter | 70.6 | — | 868.4 | 939.0 | 217.8 | 1,156.8 | |||||||
$ | 70.6 | $ | 596.5 | $ | 1,128.6 | $ | 1,795.7 | $ | 252.5 | $ | 2,048.2 |
(1) Amounts represent the principal payments due on the Company’s outstanding indebtedness as of
(2) Includes the unscheduled payment activity that has recently occurred or is expected to occur as described in the preceding section describing unscheduled debt and lease repayments.
(3) Includes the repayment of
(4) Includes the repayment of
(5) Reflects the scheduled repayments on the amounts borrowed in October and
Drydock, Scrubber and Ballast Water Treatment Update
Set forth below is a table summarizing the drydock, scrubber, and ballast water treatment system ("BWTS") activity that occurred during the third quarter of 2023 and the estimated expected payments to be made, and off-hire days that are expected to be incurred, for the Company's drydocks, ballast water treatment system installations, and scrubber installations through 2023 and 2024:
Number of (3) | |||||
Aggregate costs in millions of USD (1) | Aggregate offhire days (2) | LR2s | MRs | Handymax | |
Q3 2023 - actual(a) | 3.6 | 28 | 0 | 1 | 0 |
Q4 2023 - estimated(b) | 7.6 | 125 | 3 | 2 | 0 |
Q1 2024 - estimated(c) | 16.1 | 180 | 1 | 6 | 0 |
Q2 2024 - estimated(d) | 18.2 | 335 | 0 | 11 | 3 |
Q3 2024 - estimated(e) | 23.1 | 500 | 4 | 13 | 4 |
Q4 2024 - estimated | 20.7 | 400 | 4 | 9 | 7 |
(1) These costs include estimated cash payments for drydocks, ballast water treatment system installations and scrubber installations. These amounts may include costs incurred for previous projects for which payments may not be due until subsequent quarters, or installment payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual installation. In addition to these installment payments, these amounts also include estimates of the installation costs of such systems. The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks and installations finalize.
(2) Represents the total estimated off-hire days during the period, including vessels that commenced work in a previous period.
(3) Represents the number of vessels scheduled to commence drydock, ballast water treatment system, and/or scrubber installations during the period. It does not include vessels that commenced work in prior periods but will be completed in the subsequent period. The number of vessels in these tables may reflect a certain amount of overlap where certain vessels are expected to be drydocked and have ballast water treatment systems and/or scrubbers installed simultaneously. Additionally, the timing set forth in these tables may vary as drydock, ballast water treatment system installation and scrubber installation times are finalized.
(a) Includes one BWTS installation.
(b) Includes one BWTS installation.
(c) Includes two scrubber installations.
(d) Includes four scrubber installations.
(e) Includes five scrubber installations.
Explanation of Variances on the Third Quarter of 2023 Financial Results Compared to the Third Quarter of 2022
For the three months ended
- 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 voyages, time charters, and pool charters), and it provides useful information to investors and management. The following table sets forth TCE revenue for the three months ended
September 30, 2023 , and 2022:
For the three months ended | |||||||||
In thousands of | 2023 | 2022 | |||||||
Vessel revenue | $ | 291,179 | $ | 489,996 | |||||
Voyage expenses | (1,985 | ) | (33,721 | ) | |||||
TCE revenue | $ | 289,194 | $ | 456,275 |
- TCE revenue for the three months ended
September 30, 2023 , decreased by$167.1 million to$289.2 million , from$456.3 million for the three months endedSeptember 30, 2022 . Overall average TCE revenue per day decreased to$28,313 per day during the three months endedSeptember 30, 2023 , from$44,222 per day during the three months endedSeptember 30, 2022 . The average number of vessels was 112.1 during the three months endedSeptember 30, 2023 as compared to 113.5 during the three months endedSeptember 30, 2022 .- TCE revenue for the three months ended
September 30, 2023 remained strong despite a decline in daily TCE rates when compared to the same period in the prior year. The third quarter of 2022 reflected several key events and market conditions (discussed below), leading to a counter-seasonal spike in daily TCE rates. The third quarter of 2023 reflected a more normalized seasonal pattern whereby the beginning of the quarter was impacted by extended refinery maintenance, lower refining margins and a reduction in arbitrage opportunities, which all led to reduced refinery throughput and decreased volumes from major export regions. These conditions improved later in the quarter and daily TCE rates strengthened. As such, on a seasonally adjusted basis, demand for the Company's vessels remained strong during the third quarter of 2023 supported by growing underlying consumption for refined petroleum products against the backdrop of low inventory levels and a modest newbuilding orderbook (with a dearth of deliveries expected in the next two years). - TCE revenue for the three months ended
September 30, 2022 reflected the continued momentum in the product tanker market that began in the first quarter of 2022. Initially, the easing of COVID-19 restrictions around the globe resulted in increased personal mobility which served as a catalyst for underlying demand for refined petroleum products. This buoyant demand, combined with low global refined petroleum product inventories and strong refining margins, incentivized refiners to increase and maintain high utilization levels which drove substantial increases in refined petroleum product export volumes throughout the world. Lastly, the volatility brought on by the conflict inUkraine significantly disrupted supply chains for crude oil and refined petroleum products, changing volumes and trade routes, and thus increasing ton-mile demand for the seaborne transportation of refined petroleum products.
- TCE revenue for the three months ended
The Company also had an increased number of vessels operating outside of the Scorpio pools during the three months ended
- Vessel operating costs for the three months ended
September 30, 2023 increased by$3.3 million to$79.1 million , from$75.8 million for the three months endedSeptember 30, 2022 . Vessel operating costs per vessel per day increased to$7,669 per day for the three months endedSeptember 30, 2023 from$7,256 per day for the three months endedSeptember 30, 2022 . General inflationary pressures were the main drivers behind the increase, with certain crewing, spares and stores, and freight and forwarding expenses being the most impacted. - Depreciation expense – owned or sale leaseback vessels for the three months ended
September 30, 2023 increased by$5.6 million to$47.0 million , from$41.4 million for the three months endedSeptember 30, 2022 . This increase was attributable to the exercise of purchase options on six lease financed vessels during the third quarter of 2023 that were previously accounted for as IFRS 16 - Leases. The carrying value of these vessels was reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the date of purchase. Depreciation expense going forward from the date of repurchase will be recorded as a part of owned vessels and will not change significantly. - Depreciation expense - right of use assets for the three months ended
September 30, 2023 decreased by$5.4 million to$4.1 million from$9.6 million for the three months endedSeptember 30, 2022 . Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded under IFRS 16 - Leases. This decrease was attributable to the exercise of purchase options on six lease financed vessels during the third quarter of 2023 that were previously accounted for as IFRS 16 - Leases. The carrying value of these vessels was reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the date of purchase. Depreciation expense going forward from the date of repurchase will be recorded as part of owned vessels. - General and administrative expenses for the three months ended
September 30, 2023 , decreased by$1.8 million to$24.6 million , from$26.5 million for the three months endedSeptember 30, 2022 . This decrease was primarily due to an aggregate decrease in compensation related costs. General and administrative expenses for the fourth quarter of 2023 are expected to reflect a one-time non-cash charge of approximately$8.5 million for the acceleration of restricted stock amortization which was triggered by the departure of the Company’s former CFO inOctober 2023 . Excluding any future grants, this acceleration will reduce restricted stock amortization in subsequent periods gradually over the remaining vesting period (through 2027). - Financial expenses for the three months ended
September 30, 2023 increased by$7.4 million to$49.7 million , from$42.3 million for the three months endedSeptember 30, 2022 . This increase was primarily attributable to increases in benchmark rates, primarily SOFR. This increase was partially offset by the overall reduction in the Company's average indebtedness to$2.0 billion from$2.6 billion during the three months endedSeptember 30, 2023 as compared to the three months endedSeptember 30, 2022 . In addition to regularly scheduled repayments, the Company exercised purchase options or made unscheduled repayments of debt of$1.2 billion sinceOctober 1, 2022 and settled$205.1 million of debt through the conversion of the Convertible Notes Due 2025 into common shares inDecember 2022 . These debt settlements were partially offset by$1.0 billion of drawdowns under new credit facilities during that same period.
Additionally, the Company recorded$6.0 million of debt extinguishment related costs during the three months endedSeptember 30, 2023 , as compared to$1.4 million during the three months endedSeptember 30, 2022 . There was no accretion on the Convertible Notes Due 2025 during the three months endedSeptember 30, 2023 given their conversion inDecember 2022 , as compared to accretion of$3.1 million during the three months endedSeptember 30, 2022 .
Condensed Consolidated Statements of Income (unaudited) | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
In thousands of | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | ||||||||||||||||
Vessel revenue | $ | 291,179 | $ | 489,996 | $ | 1,004,909 | $ | 1,069,116 | ||||||||
Operating expenses | ||||||||||||||||
Vessel operating costs | (79,113 | ) | (75,801 | ) | (231,645 | ) | (237,556 | ) | ||||||||
Voyage expenses | (1,985 | ) | (33,721 | ) | (10,998 | ) | (59,229 | ) | ||||||||
Depreciation - owned or sale leaseback vessels | (47,016 | ) | (41,422 | ) | (129,704 | ) | (126,581 | ) | ||||||||
Depreciation - right of use assets | (4,136 | ) | (9,567 | ) | (22,139 | ) | (29,055 | ) | ||||||||
General and administrative expenses | (24,647 | ) | (26,490 | ) | (74,127 | ) | (61,747 | ) | ||||||||
Gain (loss) on sales of vessels | 7,127 | 2,732 | 7,127 | (66,486 | ) | |||||||||||
Total operating expenses | (149,770 | ) | (184,269 | ) | (461,486 | ) | (580,654 | ) | ||||||||
Operating income | 141,409 | 305,727 | 543,423 | 488,462 | ||||||||||||
Other (expenses) and income, net | ||||||||||||||||
Financial expenses | (49,698 | ) | (42,302 | ) | (136,950 | ) | (121,012 | ) | ||||||||
Financial income | 6,071 | 2,183 | 14,615 | 3,207 | ||||||||||||
Other income, net | 2,586 | 557 | 4,920 | 2,191 | ||||||||||||
Total other expense, net | (41,041 | ) | (39,562 | ) | (117,415 | ) | (115,614 | ) | ||||||||
Net income | $ | 100,368 | $ | 266,165 | $ | 426,008 | $ | 372,848 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 2.01 | $ | 4.84 | $ | 8.00 | $ | 6.74 | ||||||||
Diluted | $ | 1.93 | $ | 4.31 | $ | 7.68 | $ | 6.07 | ||||||||
Basic weighted average shares outstanding | 49,906,783 | 55,003,149 | 53,235,165 | 55,334,147 | ||||||||||||
Diluted weighted average shares outstanding (1) | 51,943,617 | 62,820,207 | 55,482,321 | 64,172,301 |
(1) The computation of diluted earnings per share for the three months ended
Condensed Consolidated Balance Sheets (unaudited) | |||||||
As of | |||||||
In thousands of | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 364,908 | $ | 376,870 | |||
Accounts receivable | 192,547 | 276,700 | |||||
Prepaid expenses and other current assets | 19,373 | 18,159 | |||||
Inventories | 8,482 | 15,620 | |||||
Total current assets | 585,310 | 687,349 | |||||
Non-current assets | |||||||
Vessels and drydock | 3,478,195 | 3,089,254 | |||||
Right of use assets for vessels | 142,508 | 689,826 | |||||
Other assets | 94,442 | 83,754 | |||||
8,197 | 8,197 | ||||||
Restricted cash | 783 | 783 | |||||
Total non-current assets | 3,724,125 | 3,871,814 | |||||
Total assets | $ | 4,309,435 | $ | 4,559,163 | |||
Current liabilities | |||||||
Current portion of long-term debt | $ | 147,526 | $ | 31,504 | |||
Lease liability - sale and leaseback vessels | 369,019 | 269,145 | |||||
Lease liability - IFRS 16 | 95,171 | 52,346 | |||||
Accounts payable | 21,492 | 28,748 | |||||
Accrued expenses and other liabilities | 73,163 | 91,508 | |||||
Total current liabilities | 706,371 | 473,251 | |||||
Non-current liabilities | |||||||
Long-term debt | 694,026 | 264,106 | |||||
Lease liability - sale and leaseback vessels | 454,450 | 871,469 | |||||
Lease liability - IFRS 16 | 5,676 | 443,529 | |||||
Other long-term liabilities | 3,974 | — | |||||
Total non-current liabilities | 1,158,126 | 1,579,104 | |||||
Total liabilities | 1,864,497 | 2,052,355 | |||||
Shareholders' equity | |||||||
Issued, authorized and fully paid-in share capital: | |||||||
Share capital | 745 | 727 | |||||
Additional paid-in capital | 3,078,552 | 3,049,732 | |||||
(1,119,190 | ) | (641,545 | ) | ||||
Retained earnings | 484,831 | 97,894 | |||||
Total shareholders' equity | 2,444,938 | 2,506,808 | |||||
Total liabilities and shareholders' equity | $ | 4,309,435 | $ | 4,559,163 |
Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||
For the nine months ended | |||||||
In thousands of | 2023 | 2022 | |||||
Operating activities | |||||||
Net income | $ | 426,008 | $ | 372,848 | |||
Depreciation - owned or sale leaseback vessels | 129,704 | 126,581 | |||||
Depreciation - right of use assets | 22,139 | 29,055 | |||||
Amortization of restricted stock | 28,838 | 16,148 | |||||
Amortization of deferred financing fees | 4,491 | 5,039 | |||||
Non-cash debt extinguishment costs | 6,126 | 5,506 | |||||
Accretion of convertible notes | — | 10,858 | |||||
Net (gain) / loss on sales of vessels | (7,127 | ) | 66,486 | ||||
Accretion of fair value measurement on debt assumed in business combinations | 956 | 1,756 | |||||
Gain on Convertible Notes transactions | — | (481 | ) | ||||
Share of income from dual fuel tanker joint venture | (4,940 | ) | (695 | ) | |||
606,195 | 633,101 | ||||||
Changes in assets and liabilities: | |||||||
Decrease / (increase) in inventories | 6,640 | (7,183 | ) | ||||
Decrease / (increase) in accounts receivable | 84,153 | (208,941 | ) | ||||
Increase in prepaid expenses and other current assets | (1,214 | ) | (13,232 | ) | |||
Decrease in other assets | 2,549 | 16,705 | |||||
Decrease in accounts payable | (5,658 | ) | (12,975 | ) | |||
(Decrease) / increase in accrued expenses | (12,998 | ) | 45,513 | ||||
73,472 | (180,113 | ) | |||||
Net cash inflow from operating activities | 679,667 | 452,988 | |||||
Investing activities | |||||||
Net proceeds from sales of vessels | 32,186 | 607,894 | |||||
Distributions from dual fuel tanker joint venture | 1,489 | 493 | |||||
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, leased financed and bareboat-in vessels) | (17,101 | ) | (26,418 | ) | |||
Net cash inflow from investing activities | 16,574 | 581,969 | |||||
Financing activities | |||||||
Debt repayments | (774,892 | ) | (670,108 | ) | |||
Issuance of debt | 1,011,632 | 122,638 | |||||
Debt issuance costs | (28,742 | ) | (1,701 | ) | |||
Principal repayments on lease liability - IFRS 16 | (399,485 | ) | (66,030 | ) | |||
Repurchase / repayment of convertible notes | — | (83,968 | ) | ||||
Decrease in restricted cash | — | 4,008 | |||||
Dividends paid | (39,072 | ) | (17,683 | ) | |||
Repurchase of common stock | (477,644 | ) | (84,893 | ) | |||
Net cash outflow from financing activities | (708,203 | ) | (797,737 | ) | |||
(Decrease) / increase in cash and cash equivalents | (11,962 | ) | 237,220 | ||||
Cash and cash equivalents at | 376,870 | 230,415 | |||||
Cash and cash equivalents at | $ | 364,908 | $ | 467,635 |
Other operating data for the nine months ended
(unaudited)
For the three months ended | For the nine months ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Adjusted EBITDA(1) (in thousands of | $ | 200,284 | $ | 360,013 | $ | 721,897 | $ | 728,923 | ||||
Average Daily Results | ||||||||||||
Fleet | ||||||||||||
TCE per revenue day (2) | $ | 28,313 | $ | 44,222 | $ | 32,631 | $ | 31,485 | ||||
Vessel operating costs per day (3) | $ | 7,669 | $ | 7,256 | $ | 7,529 | $ | 7,199 | ||||
Average number of vessels | 112.1 | 113.5 | 112.7 | 120.9 | ||||||||
LR2 | ||||||||||||
TCE per revenue day (2) | $ | 29,856 | $ | 48,152 | $ | 37,509 | $ | 32,812 | ||||
Vessel operating costs per day (3) | $ | 8,129 | $ | 7,349 | $ | 7,901 | $ | 7,288 | ||||
Average number of vessels | 39.0 | 39.4 | 39.0 | 41.1 | ||||||||
LR1 | ||||||||||||
TCE per revenue day (2) | N/A | N/A | N/A | $ | 13,724 | |||||||
Vessel operating costs per day (3) | N/A | N/A | N/A | $ | 7,429 | |||||||
Average number of vessels | N/A | N/A | N/A | 4.4 | ||||||||
MR | ||||||||||||
TCE per revenue day (2) | $ | 28,587 | $ | 41,143 | $ | 30,218 | $ | 30,694 | ||||
Vessel operating costs per day (3) | $ | 7,393 | $ | 7,258 | $ | 7,356 | $ | 7,197 | ||||
Average number of vessels | 59.1 | 60.1 | 59.7 | 61.3 | ||||||||
Handymax | ||||||||||||
TCE per revenue day (2) | $ | 22,875 | $ | 46,231 | $ | 29,292 | $ | 34,934 | ||||
Vessel operating costs per day (3) | $ | 7,568 | $ | 6,835 | $ | 7,246 | $ | 6,873 | ||||
Average number of vessels | 14.0 | 14.0 | 14.0 | 14.0 | ||||||||
Capital Expenditures | ||||||||||||
Drydock, scrubber, ballast water treatment system and other vessel related payments (in thousands of | $ | 3,556 | $ | 3,639 | $ | 17,101 | $ | 26,418 |
(1) | See Non-IFRS 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 vessels are part of the fleet less the number of days vessels are off-hire for drydock and repairs. |
(3) | Vessel operating costs per day represent vessel operating costs divided by the number of operating days during the period. Operating days are the total number of available days in a period with respect to vessels that are owned, operating under a lease financing arrangement, or bareboat chartered-in, before deducting available days due to off-hire days and days in drydock. Operating days is a measurement that is only applicable to vessels that are owned, operating under a lease financing arrangement, or bareboat chartered-in, not time chartered-in vessels. |
Fleet list as of
Year Built | DWT | Ice class | Employment | Vessel type | Scrubber | |||||||||
Owned, sale leaseback and bareboat chartered-in vessels | ||||||||||||||
1 | STI Brixton | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
2 | STI Comandante | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
3 | STI Pimlico | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
4 | STI Hackney | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
5 | STI Acton | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
6 | STI Fulham | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
7 | STI Camden | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
8 | STI Battersea | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
9 | STI Wembley | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
10 | STI Finchley | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
11 | STI Clapham | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
12 | STI Poplar | 2014 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
13 | STI Hammersmith | 2015 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
14 | STI Rotherhithe | 2015 | 38,734 | 1A | SHTP (1) | Handymax | N/A | |||||||
15 | STI Amber | 2012 | 49,990 | — | SMRP (2) (4) | MR | Yes | |||||||
16 | STI Topaz | 2012 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
17 | STI Ruby | 2012 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
18 | STI Garnet | 2012 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
19 | STI Onyx | 2012 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
20 | STI Duchessa | 2014 | 49,990 | — | Time Charter (5) | MR | Not Yet Installed | |||||||
21 | STI Opera | 2014 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
22 | STI Texas City | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
23 | STI Meraux | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
24 | STI San Antonio | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
25 | STI Venere | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
26 | STI Virtus | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
27 | STI Aqua | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
28 | STI Dama | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
29 | STI Regina | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
30 | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||||
31 | STI Mayfair | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
32 | STI Yorkville | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
33 | STI Milwaukee | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
34 | STI Battery | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
35 | STI Soho | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
36 | STI Memphis | 2014 | 49,990 | — | Time Charter (6) | MR | Yes | |||||||
37 | STI Tribeca | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
38 | STI Gramercy | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
39 | STI Bronx | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
40 | STI Pontiac | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
41 | STI Manhattan | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
42 | STI Queens | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
43 | STI Osceola | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
44 | STI Notting Hill | 2015 | 49,687 | 1B | SMRP (2) | MR | Yes | |||||||
45 | STI Seneca | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
46 | STI Westminster | 2015 | 49,687 | 1B | SMRP (2) | MR | Yes | |||||||
47 | STI Brooklyn | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
48 | STI Black Hawk | 2015 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
49 | STI Galata | 2017 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
50 | STI Bosphorus | 2017 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
51 | STI Leblon | 2017 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
52 | STI La Boca | 2017 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
53 | STI San Telmo | 2017 | 49,990 | 1B | SMRP (2) | MR | Not Yet Installed | |||||||
54 | STI Donald C Trauscht | 2017 | 49,990 | 1B | SMRP (2) | MR | Not Yet Installed | |||||||
55 | STI Esles II | 2018 | 49,990 | 1B | SMRP (2) | MR | Not Yet Installed | |||||||
56 | STI Jardins | 2018 | 49,990 | 1B | SMRP (2) | MR | Not Yet Installed | |||||||
57 | STI Magic | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
58 | STI Mystery | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
59 | STI Marvel | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
60 | STI Magnetic | 2019 | 50,000 | — | Time Charter (7) | MR | Yes | |||||||
61 | STI Millennia | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
62 | STI Magister | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
63 | STI Mythic | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
64 | STI Marshall | 2019 | 50,000 | — | Time Charter (8) | MR | Yes | |||||||
65 | STI Modest | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
66 | STI Maverick | 2019 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
67 | STI Miracle | 2020 | 50,000 | — | Time Charter (9) | MR | Yes | |||||||
68 | STI Maestro | 2020 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
69 | STI Mighty | 2020 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
70 | STI Maximus | 2020 | 50,000 | — | SMRP (2) | MR | Yes | |||||||
71 | STI Elysees | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
72 | STI Madison | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
73 | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||||
74 | STI Orchard | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
75 | STI Sloane | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
76 | STI Broadway | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
77 | STI Condotti | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
78 | STI Rose | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
79 | STI Veneto | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
80 | STI Alexis | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
81 | STI Winnie | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
82 | STI Oxford | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
83 | STI Lauren | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
84 | STI Connaught | 2015 | 109,999 | — | Time Charter (10) | LR2 | Yes | |||||||
85 | STI Spiga | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
86 | STI Kingsway | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
87 | STI Solidarity | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
88 | STI Lombard | 2015 | 109,999 | — | Time Charter (11) | LR2 | Yes | |||||||
89 | STI Grace | 2016 | 109,999 | — | Time Charter (12) | LR2 | Yes | |||||||
90 | STI Jermyn | 2016 | 109,999 | — | Time Charter (13) | LR2 | Yes | |||||||
91 | STI Sanctity | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
92 | STI Solace | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
93 | STI Stability | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
94 | STI Steadfast | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
95 | STI Supreme | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
96 | STI Symphony | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
97 | STI Gallantry | 2016 | 113,000 | — | SLR2P (3) | LR2 | Yes | |||||||
98 | STI Goal | 2016 | 113,000 | — | SLR2P (3) | LR2 | Yes | |||||||
99 | STI Guard | 2016 | 113,000 | — | Time Charter (14) | LR2 | Yes | |||||||
100 | STI Guide | 2016 | 113,000 | — | Time Charter (15) | LR2 | Yes | |||||||
101 | STI Selatar | 2017 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
102 | STI Rambla | 2017 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
103 | STI Gauntlet | 2017 | 113,000 | — | Time Charter (16) | LR2 | Yes | |||||||
104 | STI Gladiator | 2017 | 113,000 | — | Time Charter (15) | LR2 | Yes | |||||||
105 | STI Gratitude | 2017 | 113,000 | — | Time Charter (17) | LR2 | Yes | |||||||
106 | STI Lobelia | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | |||||||
107 | STI Lotus | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | |||||||
108 | STI Lily | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | |||||||
109 | STI Lavender | 2019 | 110,000 | — | Time Charter (18) | LR2 | Yes | |||||||
110 | STI Beryl | 2013 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
111 | STI Le Rocher | 2013 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
112 | STI Larvotto | 2013 | 49,990 | — | SMRP (2) | MR | Not Yet Installed | |||||||
Total Fleet DWT | 7,802,192 | |||||||||||||
(1 | ) | This vessel operates in, or is expected to operate in, the |
(2 | ) | This vessel operates in, or is expected to operate in, the |
(3 | ) | This vessel operates in, or is expected to operate in, the |
(4 | ) | The Company has entered into an agreement to sell this vessel which is expected to close before the end of the fourth quarter of 2023. |
(5 | ) | This vessel commenced a time charter in |
(6 | ) | This vessel commenced a time charter in |
(7 | ) | This vessel commenced a time charter in |
(8 | ) | This vessel commenced a time charter in |
(9 | ) | This vessel commenced a time charter in |
(10 | ) | In |
(11 | ) | This vessel commenced a time charter in |
(12 | ) | This vessel commenced a time charter in |
(13 | ) | This vessel commenced a time charter in |
(14 | ) | This vessel commenced a time charter in |
(15 | ) | This vessel commenced a time charter in |
(16 | ) | This vessel commenced a time charter in |
(17 | ) | This vessel commenced a time charter in |
(18 | ) | This vessel commenced a time charter in |
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 the amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in loan agreements, the provisions of
The Company's dividends paid during 2022 and 2023 were as follows:
Date paid | Dividend per common share | |||
$ | 0.10 | |||
$ | 0.10 | |||
$ | 0.10 | |||
$ | 0.10 | |||
$ | 0.20 | |||
$ | 0.25 | |||
$ | 0.25 |
On
Conflict in
The ongoing military conflict in
About
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS Financial Information
This press release describes time charter equivalent revenue, or TCE revenue, adjusted net income or loss, and adjusted EBITDA, which are not measures prepared in accordance with IFRS ("Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors and other users of our financial statements, such as our lenders, with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.
The Company believes that the presentation of TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful to investors or other users of our financial statements, such as our lenders, because they facilitate the comparability and the evaluation of companies in the Company’s industry. In addition, the Company believes that TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Company’s industry. The Company’s definitions of TCE revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.
TCE revenue, on a historical basis, is reconciled above in the section entitled "Explanation of Variances on the Third Quarter of 2023 Financial Results Compared to the Third Quarter of 2022". The Company has not provided a reconciliation of forward-looking TCE revenue because the most directly comparable IFRS measure on a forward-looking basis is not available to the Company without unreasonable effort.
Reconciliation of Net Income to Adjusted Net Income
For the three months ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 100,368 | $ | 2.01 | $ | 1.93 | ||||||||
Adjustment: | ||||||||||||||
Write-offs of deferred financing fees and debt extinguishment costs | 5,999 | 0.12 | 0.12 | |||||||||||
Gain on sales of vessels | (7,127 | ) | (0.14 | ) | (0.14 | ) | ||||||||
Adjusted net income | $ | 99,240 | $ | 1.99 | $ | 1.91 |
For the three months ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 266,165 | $ | 4.84 | $ | 4.31 | ||||||||
Adjustments: | ||||||||||||||
Net gain on sales of vessels | (2,732 | ) | $ | (0.05 | ) | $ | (0.04 | ) | ||||||
Write-offs of deferred financing fees and debt extinguishment costs | 1,443 | $ | 0.03 | $ | 0.02 | |||||||||
Gain on repurchase of Convertible Notes | (69 | ) | $ | — | $ | — | ||||||||
Adjusted net income | $ | 264,807 | $ | 4.81 | (1) | $ | 4.29 |
(1) Summation difference due to rounding
For the nine months ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 426,008 | $ | 8.00 | $ | 7.68 | ||||||||
Adjustment: | ||||||||||||||
Write-offs of deferred financing fees and debt extinguishment costs | 9,253 | 0.17 | 0.17 | |||||||||||
Gain on sales of vessels | (7,127 | ) | (0.13 | ) | (0.13 | ) | ||||||||
Adjusted net income | $ | 428,134 | $ | 8.04 | $ | 7.72 |
For the nine months ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 372,848 | $ | 6.74 | $ | 6.07 | ||||||||
Adjustments: | ||||||||||||||
Net loss on sales of vessels | 66,486 | $ | 1.20 | $ | 1.04 | |||||||||
Write-offs of deferred financing fees and debt extinguishment costs | 7,144 | $ | 0.13 | $ | 0.11 | |||||||||
Gain on repurchase of Convertible Notes | $ | (481 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||
Adjusted net income | $ | 445,997 | $ | 8.06 | $ | 7.21 |
Reconciliation of Net Income to Adjusted EBITDA
For the three months ended | For the nine months ended | ||||||||||||||||
In thousands of | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Net Income | $ | 100,368 | $ | 266,165 | $ | 426,008 | $ | 372,848 | |||||||||
Financial expenses | 49,698 | 42,302 | 136,950 | 121,012 | |||||||||||||
Financial income | (6,071 | ) | (2,183 | ) | (14,615 | ) | (3,207 | ) | |||||||||
Depreciation - owned or lease financed vessels | 47,016 | 41,422 | 129,704 | 126,581 | |||||||||||||
Depreciation - right of use assets | 4,136 | 9,567 | 22,139 | 29,055 | |||||||||||||
Amortization of restricted stock | 12,264 | 5,472 | 28,838 | 16,148 | |||||||||||||
Net (gain) / loss on sales of vessels | (7,127 | ) | (2,732 | ) | (7,127 | ) | 66,486 | ||||||||||
Adjusted EBITDA | $ | 200,284 | $ | 360,013 | $ | 721,897 | $ | 728,923 |
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," "expect," "anticipate," "estimate," "intend," "plan," "target," "project," "likely," "may," "will," "would," "could" 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, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes 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 the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies in response to epidemic and other public health concerns including any effect on demand for petroleum products and the transportation thereof, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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, including the impact of the conflict in
Contact Information
Tel: +1 646-432-1678
Email: investor.relations@scorpiotankers.com
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