Results for the three months ended
For the three months ended
For the three months ended
For the three months ended
For the three months ended
Results for the year ended
For the year ended
For the year ended
For the year ended
For the year ended
Declaration of Dividend
On
Summary of Fourth 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 first quarter of 2024 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 | $ | 57,000 | 2,600 | 68 | % | $ | 30,750 | 875 | 100 | % | |
MR | $ | 34,500 | 4,650 | 59 | % | $ | 21,700 | 400 | 100 | % | |
Handymax | $ | 32,500 | 1,250 | 55 | % | 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 fourth quarter of 2023:
Average Daily TCE Revenue | ||||
Vessel class | Pool / Spot | |||
LR2 | $ | 38,431 | $ | 31,149 |
MR | $ | 32,080 | $ | 21,824 |
Handymax | $ | 30,427 | N/A | |
- In
February 2024 , the Company gave notice to exercise the purchase options on four lease financed product tankers consisting of two MRs (STI Gramercy and STI Queens) and two LR2s (STI Oxford and STI Selatar) that are currently financed on the 2022 AVIC Lease Financing. The purchases, which are expected to close in the second quarter of 2024, will result in a debt reduction of$102.4 million . - In
January 2024 , the Company gave notice to exercise its purchase options on one 2015 built MR product tanker (STI Westminster) and four 2014 built Handymax product tankers (STI Brixton, STI Comandante, STI Pimlico and STI Finchley) which are currently financed on the 2021 CMBFL Lease Financing. The purchases, which are expected to close in the first half of 2024, will result in a debt reduction of$61.1 million . - In
January 2024 , the Company entered into an agreement to sell the 2015 built MR vessel, STI Tribeca, for$39.1 million . The sale of this vessel is expected to close within the first quarter of 2024. The Company expects there will be no debt repayment as a result of this sale, as this vessel is in the process of being replaced by one of its unencumbered vessels, STI Galata, as collateral on the 2023$1.0 Billion Credit Facility. - During the fourth quarter of 2023, the Company made
$497.1 million in unscheduled debt and lease repayments and fromJanuary 1 through February 13, 2024 , the Company made an additional$171.1 million of unscheduled debt and lease repayments. - In
December 2023 , the Company gave notice to exercise its purchase options on three 2015 built MR product tankers (STI Black Hawk, STI Notting Hill and STI Pontiac) that are currently financed on the 2021 TSFL Lease Financing. The purchases, which are expected to close in the first quarter of 2024, will result in a debt reduction of$45.6 million . - In
November 2023 , the Company sold the 2012 built MR product tanker, STI Amber, for$33.7 million . Prior to the closing of this transaction, the Company exercised the purchase option on this vessel on the BCFL Lease Financing (MRs) for a purchase price of$8.2 million . - In
October 2023 , the Company drew down$50.2 million from the 2023$94.0 Million Credit Facility and placed two LR2 product tankers as collateral under this facility. - During the fourth quarter of 2023, the Company drew down
$324.6 million from the 2023$1.0 Billion Credit Facility (split evenly between the term loan and the revolver) and placed eight LR2 product tankers and five MR product tankers as collateral under the facility. InJanuary 2024 , the Company drew down$99.0 million from this credit facility and placed two Handymax product tankers and four MR Product tankers as collateral under the facility. - The Company’s options to purchase scrubbers on 11 MR product tankers recently expired unexercised. As a result, the Company will not incur an estimated
$23.1 million in incremental equipment and installation costs and an estimated 355 days that the vessels were expected to be off-hire during 2024. In the fourth quarter of 2023, the Company wrote-off$10.5 million relating to previously incurred deposits and installation costs on these scrubbers due to the expiration of this agreement. The Company currently has 86 scrubbers installed on its fleet.
Securities Repurchase Program
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 months and year 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/q3f2wm2d
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, including those announced as of
Facility | Repayment date | Principal balance repaid (in millions) | Vessels | ||
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* | ||
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 (MRs) | Dec-23 | 7.4 | STI Ruby | ||
BCFL Lease Financing (LR2s) | Dec-23 | 58.4 | STI Stability*, STI Solace* and STI Solidarity* | ||
IFRS 16 - Leases - 3 MR | Dec-23 | 29.1 | (1) | STI Beryl, STI Larvotto and STI Le Rocher | |
2021 | Dec-23 | 120.5 | STI Rotherhithe, STI Hammersmith, STI Broadway, STI Connaught, STI Lauren and STI Winnie | ||
Total unscheduled repayments - Q4 2023 | $ | 497.1 | |||
Prudential Credit Facility | Jan-24 | 33.7 | STI Acton*, STI Camden* and STI Clapham | ||
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 | ||
BCFL Lease Financing (MRs) | Jan-24 | 21.7 | STI Topaz, STI Garnet and STI Onyx | ||
Total unscheduled repayments - paid in 2024 | $ | 171.1 | |||
2021 TSFL Lease Financing | Mar-24 | 45.6 | STI Black Hawk, STI Pontiac and STI Notting Hill | ||
2021 CMBFL Lease Financing | Mar-24 | 45.3 | STI Comandante, STI Brixton, STI Pimlico and STI Finchley | ||
2021 CMBFL Lease Financing | Apr-24 | 15.8 | STI Westminster | ||
2022 AVIC Lease Financing | May-24 | 39.6 | STI Gramercy and STI Queens | ||
2022 AVIC Lease Financing | Jun-24 | 62.8 | STI Oxford and STI Selatar | ||
Total unscheduled repayments - pending | $ | 209.1 | |||
(1) The principal balance repaid includes the contractual repurchase price of | |||||
* Vessel subsequently collateralized on the 2023 | |||||
** Vessel subsequently collateralized on the 2023 | |||||
*** Vessel 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 2023 | Outstanding Principal as of 2023 | Outstanding Principal as of | Pro-forma Outstanding Principal as of (4) | |||||
1 | Prudential Credit Facility (1) | $ | 35,126 | $ | 33,740 | $ | — | $ | — |
2 | BNPP Sinosure Credit Facility | 75,121 | 69,667 | 69,667 | 69,667 | ||||
3 | 2023 | 208,050 | 199,575 | 191,100 | 191,100 | ||||
4 | 2023 | 46,780 | 45,626 | 45,626 | 45,626 | ||||
5 | 2023 | 113,142 | 108,890 | 108,890 | 108,890 | ||||
6 | 2023 | 269,344 | 564,907 | 663,907 | 663,907 | ||||
7 | 2023 | 43,750 | 92,908 | 91,584 | 91,584 | ||||
8 | Ocean Yield Lease Financing | 26,141 | 25,376 | 25,114 | 25,114 | ||||
9 | BCFL Lease Financing (LR2s) (1) | 60,157 | — | — | — | ||||
10 | CSSC Lease Financing (1) | 110,353 | — | — | — | ||||
11 | BCFL Lease Financing (MRs) (1) | 40,820 | 21,653 | — | — | ||||
12 | 2020 TSFL Lease Financing (1) | 38,117 | — | — | — | ||||
13 | 2020 SPDBFL Lease Financing (1) | 78,640 | 38,300 | — | — | ||||
14 | 2021 AVIC Lease Financing (1) | 79,196 | 77,383 | — | — | ||||
15 | 2021 CMBFL Lease Financing | 63,155 | 61,525 | 61,120 | — | ||||
16 | 2021 TSFL Lease Financing (1) | 46,712 | 45,617 | 45,617 | — | ||||
17 | 2021 | 123,815 | — | — | — | ||||
18 | 2021 Ocean Yield Lease Financing | 59,557 | 58,083 | 57,586 | 57,586 | ||||
19 | 2022 AVIC Lease Financing (1) | 106,927 | 104,635 | 104,635 | — | ||||
20 | IFRS 16 - Leases - 3 MR (1) | 14,713 | — | — | — | ||||
21 | IFRS 16 - Leases - | 85,508 | — | — | — | ||||
22 | Unsecured Senior Notes Due 2025 | 70,571 | 70,571 | 70,571 | 70,571 | ||||
Gross debt outstanding | 1,795,695 | 1,618,456 | 1,535,417 | 1,324,045 | |||||
Cash and cash equivalents | 364,908 | 355,551 | 440,511 | 229,139 | |||||
Net debt | $ | 1,430,787 | $ | 1,262,905 | $ | 1,094,906 | $ | 1,094,906 | |
(1) Refer to the preceding table for a description of unscheduled payment activity that has recently occurred or is expected to occur.
(2) In November and
The amounts drawn, and the currently available
(3) In
(4) Amounts reflect the balances as of
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 2024 and 2025 | Vessel financings - scheduled repayments, in addition to maturities in 2026 and thereafter | Total (1) | Repayments of new borrowings after December 31, 2023 (4) | Pro forma, including new borrowing | |||||||
$ | — | $ | 171.1 | $ | 11.0 | $ | 182.1 | $ | — | $ | 182.1 | ||
Remaining Q1 2024 (2) | — | 90.9 | 39.3 | 130.2 | 4.0 | 134.2 | |||||||
Q2 2024 (2) | — | 118.2 | 53.0 | 171.2 | 4.0 | 175.2 | |||||||
Q3 2024 | — | — | 47.6 | 47.6 | 4.0 | 51.6 | |||||||
Q4 2024 | — | — | 53.0 | 53.0 | 4.1 | 57.1 | |||||||
Q1 2025 | — | — | 47.6 | 47.6 | 4.0 | 51.6 | |||||||
Q2 2025 | 70.6 | — | 47.0 | 117.6 | 4.0 | 121.6 | |||||||
Q3 2025 | — | — | 37.0 | 37.0 | 4.0 | 41.0 | |||||||
Q4 2025 (3) | — | 55.4 | 33.5 | 88.9 | 4.1 | 93.0 | |||||||
2026 and thereafter | — | — | 743.3 | 743.3 | 66.8 | 810.1 | |||||||
$ | 70.6 | $ | 435.6 | $ | 1,112.3 | $ | 1,618.5 | $ | 99.0 | $ | 1,717.5 | ||
(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 scheduled maturity payment of
(4) Reflects the scheduled repayments on the amounts borrowed in
Drydock and Ballast Water Treatment Update
Set forth below is a table summarizing the drydock and ballast water treatment system ("BWTS") activity that occurred during the fourth 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 and ballast water treatment system installations through 2024 and 2025:
Number of (3) | |||||
Aggregate costs in millions of USD (1) | Aggregate off- hire days (2) | LR2s | MRs | Handymax | |
Q4 2023 - actual(a) | 6.0 | 76 | 3 | 1 | 0 |
Q1 2024 - estimated(b) | 11.3 | 200 | 1 | 7 | 0 |
Q2 2024 - estimated(b) | 10.7 | 200 | 0 | 7 | 3 |
Q3 2024 - estimated(b) | 17.8 | 320 | 4 | 8 | 4 |
Q4 2024 - estimated(b) | 21.2 | 380 | 4 | 8 | 7 |
FY 2025 | 25.5 | 440 | 10 | 12 | 0 |
(1) These costs include estimated cash payments for drydocks and ballast water treatment system 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 and/or ballast water treatment system 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 installed simultaneously. Additionally, the timing set forth in these tables may vary as drydock and ballast water treatment system installation times are finalized.
(a) Includes one BWTS installation.
(b) The Company’s options to purchase scrubbers on 11 MR product tankers recently expired unexercised. In the fourth quarter of 2023, the Company wrote-off
Explanation of Variances on the Fourth Quarter of 2023 Financial Results Compared to the Fourth 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
December 31, 2023 , and 2022:
For the three months ended | |||||||||
In thousands of | 2023 | 2022 | |||||||
Vessel revenue | $ | 336,313 | $ | 493,717 | |||||
Voyage expenses | (2,245 | ) | (33,429 | ) | |||||
TCE revenue | $ | 334,068 | $ | 460,288 | |||||
- TCE revenue for the three months ended
December 31, 2023 decreased by$126.2 million to$334.1 million , from$460.3 million for the three months endedDecember 31, 2022 . Overall, the average daily TCE revenue decreased to$32,949 per day during the three months endedDecember 31, 2023 , from$45,679 per day during the three months endedDecember 31, 2022 . The average number of vessels was 111.5 during the three months endedDecember 31, 2023 as compared to 113.0 during the three months endedDecember 31, 2022 .- TCE revenue for the three months ended
December 31, 2023 remained strong despite a decline in daily TCE rates when compared to the same period in the prior year. The fourth quarter of 2022 reflected several key events and market conditions (discussed below) occurring simultaneously, which led to a spike in daily TCE rates. The fourth quarter of 2023 reflected a more normalized seasonal pattern whereby demand increased from the third quarter of 2023 as the northern hemisphere entered into the winter months. This increase was partially offset by elevated refinery maintenance in theU.S. ,Middle East andAsia which led to a slight reduction in seaborne volumes. Despite this elevated refinery maintenance, demand for the Company's vessels remained robust in the fourth quarter of 2023, driven by growing underlying consumption for refined petroleum products set against the backdrop of a modest newbuilding orderbook. - TCE revenue for the three months ended
December 31, 2022 reflected the strength in the product tanker market that began in the first quarter of 2022 as a result of several catalysts. 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 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. Additionally, the volatility brought on by the conflict inUkraine 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. Export volumes also spiked during the fourth quarter of 2022 as European inventories built-up immediately prior to the implementation of sanctions on the export of Russian refined petroleum products, which took effect inFebruary 2023 .
- 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
December 31, 2023 , decreased by$2.2 million to$83.9 million , from$86.2 million for the three months endedDecember 31, 2022 . Vessel operating costs per vessel per day decreased to$8,181 per day for the three months endedDecember 31, 2023 from$8,289 per day for the three months endedDecember 31, 2022 . Vessel operating costs per day decreased slightly among the LR2 and MR vessel classes with the largest decreases within stores and spares expenses. In the three months endedDecember 31, 2022 , the easing of supply chain congestion (leading to a high volume of spares and stores deliveries), the completion of deferred repairs and maintenance, and generalized inflationary pressures all contributed to the higher operating costs during the period. The three months endedDecember 31, 2023 were also impacted by generalized inflationary pressures. In both the three months endedDecember 31, 2023 and 2022, crewing expenses included$2.0 million allocated to a provident fund dedicated to the Company's seafarers. - Depreciation expense – owned or sale leaseback vessels for the three months ended
December 31, 2023 , increased by$7.1 million to$48.6 million , from$41.4 million for the three months endedDecember 31, 2022 . This increase was attributable to the exercise of purchase options on all 21 lease financed vessels throughout 2023 that were previously accounted for as IFRS 16 - Leases consisting of nine in the second quarter; six in the third quarter; and six in the fourth quarter. The carrying values of these vessels were reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the dates of purchase. Depreciation expense going forward from the dates of repurchase are recorded as a part of owned vessels. - Depreciation expense - right of use assets for the three months ended
December 31, 2023 , decreased by$7.7 million to$2.1 million from$9.8 million for the three months endedDecember 31, 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 all 21 lease financed vessels throughout 2023 that were previously accounted for as IFRS 16 - Leases consisting of nine in the second quarter; six in the third quarter; and six in the fourth quarter. The carrying values of these vessels were reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the dates of purchase. Depreciation expense going forward from the dates of repurchase are recorded as a part of owned vessels. - General and administrative expenses for the three months ended
December 31, 2023 , increased by$5.7 million to$32.1 million , from$26.4 million for the three months endedDecember 31, 2022 . This increase was primarily due to a one-time non-cash charge of$8.4 million for the acceleration of restricted stock amortization which was triggered by the departure of the Company's former CFO inOctober 2023 . This increase was partially offset by an aggregate decrease in compensation related costs.
- Write-off of deposits on scrubbers for the three months ended
December 31, 2023 , of$10.5 million related to previously incurred deposits and installation costs on these scrubbers due to the recent expiration of the Company’s options to purchase scrubbers on 11 MR product tankers. As a result, the Company will not incur an estimated$23.1 million in incremental equipment and installation costs and an estimated 355 days that the vessels were expected to be off-hire during 2024. The Company currently has 86 scrubbers installed on its fleet. - Financial expenses for the three months ended
December 31, 2023 decreased by$2.5 million to$46.3 million , from$48.8 million for the three months endedDecember 31, 2022 . This decrease was primarily attributable to the overall reduction in interest expense on debt, as the Company's average indebtedness decreased to$1.7 billion during the three months endedDecember 31, 2023 , as compared to$2.3 billion during the three months endedDecember 31, 2022 . Additionally:- The Company recorded
$7.3 million of debt extinguishment related costs during the three months endedDecember 31, 2023 , as compared to$4.3 million during the three months endedDecember 31, 2022 ; - The Company incurred
$1.9 million in accretion of its Convertible Notes Due 2025 during the three months endedDecember 31, 2022 . These convertible notes were converted inDecember 2022 and, therefore, no expense was incurred during the three months endedDecember 31, 2023 ; and - The amortization of deferred financing fees increased to
$2.8 million during the three months endedDecember 31, 2023 , as compared to$1.3 million during the three months endedDecember 31, 2022 , due to the entrance into new credit facilities during 2023.
- The Company recorded
Condensed Consolidated Statements of Income | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||
In thousands of | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | ||||||||||||||||
Vessel revenue | $ | 336,313 | $ | 493,717 | $ | 1,341,222 | $ | 1,562,873 | ||||||||
Operating expenses | ||||||||||||||||
Vessel operating costs | (83,937 | ) | (86,169 | ) | (315,582 | ) | (323,725 | ) | ||||||||
Voyage expenses | (2,245 | ) | (33,429 | ) | (13,243 | ) | (92,698 | ) | ||||||||
Depreciation - owned or sale leaseback vessels | (48,555 | ) | (41,427 | ) | (178,259 | ) | (168,008 | ) | ||||||||
Depreciation - right of use assets | (2,105 | ) | (9,772 | ) | (24,244 | ) | (38,827 | ) | ||||||||
General and administrative expenses | (32,128 | ) | (26,384 | ) | (106,255 | ) | (88,131 | ) | ||||||||
Write-off of deposits on scrubbers | (10,508 | ) | — | (10,508 | ) | — | ||||||||||
Reversal of previously recorded impairment | — | 12,708 | — | 12,708 | ||||||||||||
Net gain (loss) on sales of vessels | 4,892 | — | 12,019 | (66,486 | ) | |||||||||||
Total operating expenses | (174,586 | ) | (184,473 | ) | (636,072 | ) | (765,167 | ) | ||||||||
Operating income | 161,727 | 309,244 | 705,150 | 797,706 | ||||||||||||
Other (expenses) and income, net | ||||||||||||||||
Financial expenses | (46,281 | ) | (48,783 | ) | (183,231 | ) | (169,795 | ) | ||||||||
Financial income | 4,497 | 4,158 | 19,112 | 7,365 | ||||||||||||
Other income (expenses), net | 947 | (216 | ) | 5,867 | 1,975 | |||||||||||
Total other expense, net | (40,837 | ) | (44,841 | ) | (158,252 | ) | (160,455 | ) | ||||||||
Net income | $ | 120,890 | $ | 264,403 | $ | 546,898 | $ | 637,251 | ||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 2.43 | $ | 4.74 | $ | 10.44 | $ | 11.49 | ||||||||
Diluted | $ | 2.34 | $ | 4.37 | $ | 10.03 | $ | 10.34 | ||||||||
Basic weighted average shares outstanding | 49,799,818 | 55,814,716 | 52,369,269 | 55,455,277 | ||||||||||||
Diluted weighted average shares outstanding (1) | 51,637,739 | 61,096,967 | 54,527,747 | 63,511,276 | ||||||||||||
(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 | $ | 355,551 | $ | 376,870 | |||
Accounts receivable | 203,500 | 276,700 | |||||
Prepaid expenses and other current assets | 10,213 | 18,159 | |||||
Inventories | 7,816 | 15,620 | |||||
Total current assets | 577,080 | 687,349 | |||||
Non-current assets | |||||||
Vessels and drydock | 3,577,935 | 3,089,254 | |||||
Right of use assets for vessels | — | 689,826 | |||||
Other assets | 65,440 | 83,754 | |||||
8,197 | 8,197 | ||||||
Restricted cash | — | 783 | |||||
Total non-current assets | 3,651,572 | 3,871,814 | |||||
Total assets | $ | 4,228,652 | $ | 4,559,163 | |||
Current liabilities | |||||||
Current portion of long-term debt | $ | 220,965 | $ | 31,504 | |||
Lease liability - sale and leaseback vessels | 206,757 | 269,145 | |||||
Lease liability - IFRS 16 | — | 52,346 | |||||
Accounts payable | 10,004 | 28,748 | |||||
Accrued expenses and other liabilities | 72,678 | 91,508 | |||||
Total current liabilities | 510,404 | 473,251 | |||||
Non-current liabilities | |||||||
Long-term debt | 939,188 | 264,106 | |||||
Lease liability - sale and leaseback vessels | 221,380 | 871,469 | |||||
Lease liability - IFRS 16 | — | 443,529 | |||||
Other long-term liabilities | 3,974 | — | |||||
Total non-current liabilities | 1,164,542 | 1,579,104 | |||||
Total liabilities | 1,674,946 | 2,052,355 | |||||
Shareholders' equity | |||||||
Issued, authorized and fully paid-in share capital: | |||||||
Share capital | 745 | 727 | |||||
Additional paid-in capital | 3,097,054 | 3,049,732 | |||||
(1,131,225 | ) | (641,545 | ) | ||||
Retained earnings | 587,132 | 97,894 | |||||
Total shareholders' equity | 2,553,706 | 2,506,808 | |||||
Total liabilities and shareholders' equity | $ | 4,228,652 | $ | 4,559,163 | |||
Condensed Consolidated Statements of Cash Flows | |||||||
(unaudited) | |||||||
For the year ended | |||||||
In thousands of | 2023 | 2022 | |||||
Operating activities | |||||||
Net income | $ | 546,898 | $ | 637,251 | |||
Depreciation - owned or sale leaseback vessels | 178,259 | 168,008 | |||||
Depreciation - right of use assets | 24,244 | 38,827 | |||||
Reversal of previously recorded impairment | — | (12,708 | ) | ||||
Amortization of restricted stock | 47,340 | 20,397 | |||||
Amortization of deferred financing fees | 7,292 | 6,385 | |||||
Non-cash debt extinguishment costs | 8,320 | 6,604 | |||||
Accretion of convertible notes | — | 12,718 | |||||
Net (gain) / loss on sales of vessels | (12,019 | ) | 66,486 | ||||
Write-off of deposits on scrubbers | 10,508 | — | |||||
Accretion of fair value measurement on debt assumed in business combinations | 1,128 | 2,106 | |||||
Gain on Convertible Notes transactions | — | (481 | ) | ||||
Share of income from dual fuel tanker joint venture | (5,950 | ) | (679 | ) | |||
806,020 | 944,914 | ||||||
Changes in assets and liabilities: | |||||||
Decrease / (increase) in inventories | 7,804 | (7,522 | ) | ||||
Decrease / (increase) in accounts receivable | 73,201 | (238,631 | ) | ||||
Decrease / (increase) in prepaid expenses and other current assets | 7,944 | (10,205 | ) | ||||
Decrease in other assets | 2,884 | 19,492 | |||||
Decrease in accounts payable | (16,748 | ) | (4,482 | ) | |||
(Decrease) / increase in accrued expenses | (15,613 | ) | 65,767 | ||||
59,472 | (175,581 | ) | |||||
Net cash inflow from operating activities | 865,492 | 769,333 | |||||
Investing activities | |||||||
Net proceeds from sales of vessels | 64,878 | 607,693 | |||||
Distributions from dual fuel tanker joint venture | 1,822 | 493 | |||||
Investment in dual fuel tanker joint venture | — | (1,750 | ) | ||||
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, leased financed and bareboat-in vessels) | (23,089 | ) | (34,480 | ) | |||
Net cash inflow from investing activities | 43,611 | 571,956 | |||||
Financing activities | |||||||
Debt repayments | (1,224,529 | ) | (971,622 | ) | |||
Issuance of debt | 1,386,482 | 122,638 | |||||
Debt issuance costs | (29,691 | ) | (1,702 | ) | |||
Principal repayments on lease liability - IFRS 16 | (516,127 | ) | (79,502 | ) | |||
Repurchase / repayment of convertible notes | — | (83,968 | ) | ||||
Decrease in restricted cash | 783 | 4,008 | |||||
Dividends paid | (57,661 | ) | (23,313 | ) | |||
Repurchase of common stock | (489,679 | ) | (161,373 | ) | |||
Net cash outflow from financing activities | (930,422 | ) | (1,194,834 | ) | |||
(Decrease) / increase in cash and cash equivalents | (21,319 | ) | 146,455 | ||||
Cash and cash equivalents at | 376,870 | 230,415 | |||||
Cash and cash equivalents at | $ | 355,551 | $ | 376,870 |
Other operating data for the year ended | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Adjusted EBITDA(1) (in thousands of | $ | 237,452 | $ | 351,768 | $ | 959,349 | $ | 1,080,691 | ||||||||
Average Daily Results | ||||||||||||||||
Fleet | ||||||||||||||||
TCE per revenue day (2) | $ | 32,949 | $ | 45,679 | $ | 32,711 | $ | 34,878 | ||||||||
Vessel operating costs per day (3) | $ | 8,181 | $ | 8,289 | $ | 7,692 | $ | 7,460 | ||||||||
Average number of vessels | 111.5 | 113.0 | 112.4 | 118.9 | ||||||||||||
LR2 | ||||||||||||||||
TCE per revenue day (2) | $ | 36,546 | $ | 52,023 | $ | 37,268 | $ | 37,548 | ||||||||
Vessel operating costs per day (3) | $ | 8,498 | $ | 8,547 | $ | 8,051 | $ | 7,593 | ||||||||
Average number of vessels | 39.0 | 39.0 | 39.0 | 40.6 | ||||||||||||
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 | $ | 7,474 | |||||||||||
Average number of vessels | N/A | N/A | N/A | 3.3 | ||||||||||||
MR | ||||||||||||||||
TCE per revenue day (2) | $ | 31,195 | $ | 39,783 | $ | 30,461 | $ | 32,876 | ||||||||
Vessel operating costs per day (3) | $ | 8,027 | $ | 8,193 | $ | 7,523 | $ | 7,444 | ||||||||
Average number of vessels | 58.5 | 60.0 | 59.4 | 61.0 | ||||||||||||
Handymax | ||||||||||||||||
TCE per revenue day (2) | $ | 30,427 | $ | 52,065 | $ | 29,578 | $ | 39,253 | ||||||||
Vessel operating costs per day (3) | $ | 7,951 | $ | 7,952 | $ | 7,423 | $ | 7,144 | ||||||||
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 | $ | 5,988 | $ | 8,062 | $ | 23,089 | $ | 34,480 |
(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 and sale leaseback 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 Topaz | 2012 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
16 | STI Ruby | 2012 | 49,990 | — | SMRP (2) | MR | No | ||||||
17 | STI Garnet | 2012 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
18 | STI Onyx | 2012 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
19 | STI Beryl | 2013 | 49,990 | — | SMRP (2) | MR | No | ||||||
20 | STI Le Rocher | 2013 | 49,990 | — | SMRP (2) | MR | No | ||||||
21 | STI Larvotto | 2013 | 49,990 | — | SMRP (2) | MR | No | ||||||
22 | STI Duchessa | 2014 | 49,990 | — | Time Charter (5) | MR | No | ||||||
23 | STI Opera | 2014 | 49,990 | — | SMRP (2) | MR | No | ||||||
24 | STI Texas City | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
25 | STI Meraux | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
26 | STI San Antonio | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
27 | STI Venere | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
28 | STI Virtus | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
29 | STI Aqua | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
30 | STI Dama | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
31 | STI Regina | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
32 | 2014 | 49,990 | — | SMRP (2) | MR | Yes | |||||||
33 | STI Mayfair | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
34 | STI Yorkville | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
35 | STI Milwaukee | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
36 | STI Battery | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
37 | STI Soho | 2014 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
38 | STI Memphis | 2014 | 49,990 | — | Time Charter (6) | MR | Yes | ||||||
39 | STI Tribeca | 2015 | 49,990 | — | SMRP (2) (7) | MR | Yes | ||||||
40 | STI Gramercy | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
41 | STI Bronx | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
42 | STI Pontiac | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
43 | STI Manhattan | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
44 | STI Queens | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
45 | STI Osceola | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
46 | STI Notting Hill | 2015 | 49,687 | 1B | SMRP (2) | MR | Yes | ||||||
47 | STI Seneca | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
48 | STI Westminster | 2015 | 49,687 | 1B | SMRP (2) | MR | Yes | ||||||
49 | STI Brooklyn | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
50 | STI Black Hawk | 2015 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
51 | STI Galata | 2017 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
52 | STI Bosphorus | 2017 | 49,990 | — | SMRP (2) | MR | No | ||||||
53 | STI Leblon | 2017 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
54 | STI La Boca | 2017 | 49,990 | — | SMRP (2) | MR | Yes | ||||||
55 | STI San Telmo | 2017 | 49,990 | 1B | SMRP (2) | MR | No | ||||||
56 | STI Donald C Trauscht | 2017 | 49,990 | 1B | SMRP (2) | MR | No | ||||||
57 | STI Esles II | 2018 | 49,990 | 1B | SMRP (2) | MR | No | ||||||
58 | STI Jardins | 2018 | 49,990 | 1B | SMRP (2) | MR | No | ||||||
59 | STI Magic | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
60 | STI Mystery | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
61 | STI Marvel | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
62 | STI Magnetic | 2019 | 50,000 | — | Time Charter (8) | MR | Yes | ||||||
63 | STI Millennia | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
64 | STI Magister | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
65 | STI Mythic | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
66 | STI Marshall | 2019 | 50,000 | — | Time Charter (9) | MR | Yes | ||||||
67 | STI Modest | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
68 | STI Maverick | 2019 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
69 | STI Miracle | 2020 | 50,000 | — | Time Charter (10) | MR | Yes | ||||||
70 | STI Maestro | 2020 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
71 | STI Mighty | 2020 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
72 | STI Maximus | 2020 | 50,000 | — | SMRP (2) | MR | Yes | ||||||
73 | STI Elysees | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
74 | STI Madison | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
75 | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | |||||||
76 | STI Orchard | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
77 | STI Sloane | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
78 | STI Broadway | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
79 | STI Condotti | 2014 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
80 | STI Rose | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
81 | STI Veneto | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
82 | STI Alexis | 2015 | 109,999 | — | MPL (4) | LR2 | Yes | ||||||
83 | STI Winnie | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
84 | STI Oxford | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
85 | STI Lauren | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
86 | STI Connaught | 2015 | 109,999 | — | Time Charter (11) | LR2 | Yes | ||||||
87 | STI Spiga | 2015 | 109,999 | — | MPL (4) | LR2 | Yes | ||||||
88 | STI Kingsway | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
89 | STI Solidarity | 2015 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
90 | STI Lombard | 2015 | 109,999 | — | Time Charter (12) | LR2 | Yes | ||||||
91 | STI Grace | 2016 | 109,999 | — | Time Charter (13) | LR2 | Yes | ||||||
92 | STI Jermyn | 2016 | 109,999 | — | Time Charter (14) | LR2 | Yes | ||||||
93 | STI Sanctity | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
94 | STI Solace | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
95 | STI Stability | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
96 | STI Steadfast | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
97 | STI Supreme | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
98 | STI Symphony | 2016 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
99 | STI Gallantry | 2016 | 113,000 | — | SLR2P (3) | LR2 | Yes | ||||||
100 | STI Goal | 2016 | 113,000 | — | MPL (4) | LR2 | Yes | ||||||
101 | STI Guard | 2016 | 113,000 | — | Time Charter (15) | LR2 | Yes | ||||||
102 | STI Guide | 2016 | 113,000 | — | Time Charter (16) | LR2 | Yes | ||||||
103 | STI Selatar | 2017 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
104 | STI Rambla | 2017 | 109,999 | — | SLR2P (3) | LR2 | Yes | ||||||
105 | STI Gauntlet | 2017 | 113,000 | — | Time Charter (17) | LR2 | Yes | ||||||
106 | STI Gladiator | 2017 | 113,000 | — | Time Charter (16) | LR2 | Yes | ||||||
107 | STI Gratitude | 2017 | 113,000 | — | Time Charter (18) | LR2 | Yes | ||||||
108 | STI Lobelia | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | ||||||
109 | STI Lotus | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | ||||||
110 | STI Lily | 2019 | 110,000 | — | SLR2P (3) | LR2 | Yes | ||||||
111 | STI Lavender | 2019 | 110,000 | — | Time Charter (19) | LR2 | Yes | ||||||
Total Fleet DWT | 7,752,202 |
(1 | ) | This vessel operates in the |
(2 | ) | This vessel operates in the |
(3 | ) | This vessel operates in the |
(4 | ) | This vessel operates in the |
(5 | ) | This vessel commenced a time charter in |
(6 | ) | This vessel commenced a time charter in |
(7 | ) | The Company has entered into an agreement to sell this vessel which is expected to close before the end of the first quarter of 2024. |
(8 | ) | This vessel commenced a time charter in |
(9 | ) | This vessel commenced a time charter in |
(10 | ) | This vessel commenced a time charter in |
(11 | ) | 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 |
(19 | ) | 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 | |
On
Conflict in
The ongoing military conflict in
Additionally, since
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 Fourth Quarter of 2023 Financial Results Compared to the Fourth 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 | $ | 120,890 | $ | 2.43 | $ | 2.34 | ||||||||
Adjustment: | ||||||||||||||
Write-offs of deferred financing fees and debt extinguishment costs | 7,272 | 0.15 | 0.14 | |||||||||||
Gain on sales of vessels | (4,892 | ) | (0.10 | ) | (0.09 | ) | ||||||||
Acceleration of amortization of restricted stock | 8,374 | 0.17 | 0.16 | |||||||||||
Write-off of deposits on scrubbers | 10,508 | 0.21 | 0.20 | |||||||||||
Adjusted net income | $ | 142,152 | $ | 2.85 | (1) | $ | 2.75 | |||||||
(1) Summation difference due to rounding
For the three months ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 264,403 | $ | 4.74 | $ | 4.37 | ||||||||
Adjustments: | ||||||||||||||
Reversal of previously recorded impairment | (12,708 | ) | $ | (0.23 | ) | $ | (0.21 | ) | ||||||
Write-offs of deferred financing fees and debt extinguishment costs | 4,319 | $ | 0.08 | $ | 0.07 | |||||||||
Adjusted net income | $ | 256,014 | $ | 4.59 | $ | 4.24 | (1) | |||||||
(1) Summation difference due to rounding
For the year ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 546,898 | $ | 10.44 | $ | 10.03 | ||||||||
Adjustment: | ||||||||||||||
Write-offs of deferred financing fees and debt extinguishment costs | 16,525 | 0.32 | 0.30 | |||||||||||
Gain on sales of vessels | (12,019 | ) | (0.23 | ) | (0.22 | ) | ||||||||
Acceleration of amortization of restricted stock | 8,374 | 0.16 | 0.15 | |||||||||||
Write-off of deposits on scrubbers | 10,508 | 0.20 | 0.19 | |||||||||||
Adjusted net income | $ | 570,286 | $ | 10.89 | $ | 10.46 | (1) | |||||||
(1) Summation difference due to rounding
For the year ended | ||||||||||||||
Per share | Per share | |||||||||||||
In thousands of | Amount | basic | diluted | |||||||||||
Net income | $ | 637,251 | $ | 11.49 | $ | 10.34 | ||||||||
Adjustments: | ||||||||||||||
Net loss on sales of vessels | 66,486 | $ | 1.20 | $ | 1.05 | |||||||||
Reversal of previously recorded impairment | (12,708 | ) | $ | (0.23 | ) | $ | (0.20 | ) | ||||||
Write-offs of deferred financing fees and debt extinguishment costs | 11,463 | $ | 0.21 | $ | 0.18 | |||||||||
Gain on repurchase of Convertible Notes | (481 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Adjusted net income | $ | 702,011 | $ | 12.66 | $ | 11.36 | ||||||||
Reconciliation of Net Income to Adjusted EBITDA
For the three months ended | For the year ended | |||||||||||||||||
In thousands of | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net Income | $ | 120,890 | $ | 264,403 | $ | 546,898 | $ | 637,251 | ||||||||||
Financial expenses | 46,281 | 48,783 | 183,231 | 169,795 | ||||||||||||||
Financial income | (4,497 | ) | (4,158 | ) | (19,112 | ) | (7,365 | ) | ||||||||||
Depreciation - owned or lease financed vessels | 48,555 | 41,427 | 178,259 | 168,008 | ||||||||||||||
Depreciation - right of use assets | 2,105 | 9,772 | 24,244 | 38,827 | ||||||||||||||
Write-off of deposits on scrubbers | 10,508 | — | 10,508 | — | ||||||||||||||
Reversal of previously recorded impairment | — | (12,708 | ) | — | (12,708 | ) | ||||||||||||
Amortization of restricted stock | 18,502 | 4,249 | 47,340 | 20,397 | ||||||||||||||
Net (gain) / loss on sales of vessels | (4,892 | ) | — | (12,019 | ) | 66,486 | ||||||||||||
Adjusted EBITDA | $ | 237,452 | $ | 351,768 | $ | 959,349 | $ | 1,080,691 | ||||||||||
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 epidemics 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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