Scorpio Tankers Inc. Announces Financial Results for the First Quarter of 2023 and an Increase to its Quarterly Dividend

MONACO, May 02, 2023 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months ended March 31, 2023. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend of $0.25 per common share.

Results for the three months ended March 31, 2023 and 2022

For the three months ended March 31, 2023, the Company had net income of $193.2 million, or $3.40 basic and $3.27 diluted earnings per share.

For the three months ended March 31, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $195.6 million, or $3.44 basic and $3.31 diluted earnings per share, which excludes from net income a $2.3 million, or $0.04 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related extinguishment costs.

For the three months ended March 31, 2022, the Company had a net loss of $84.4 million, or $1.52 basic and diluted loss per share.

For the three months ended March 31, 2022, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $14.9 million, or $0.27 basic and diluted loss per share, which excludes from the net loss (i) a $67.7 million, or $1.22 per basic and diluted share, aggregate write-down of vessels held for sale and loss on the sale of vessels, and (ii) $1.9 million, or $0.03 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on the debt or lease financing obligations relating to these vessel sales and related debt extinguishment costs.

Declaration of Dividend

On May 1, 2023, the Board of Directors declared a quarterly cash dividend of $0.25 per common share, with a payment date of June 30, 2023 to all shareholders of record as of June 13, 2023 (the record date). As of May 1, 2023, there were 59,455,820 common shares of the Company outstanding.

Transition to a New CFO in September 2023

The Company announced that Brian Lee, the Chief Financial Officer, will be stepping down at the end of September 2023 and will be replaced by Christopher Avella. Mr. Lee has been the Chief Financial Officer of Scorpio Tankers since the start of the Company in 2010.

Mr. Avella has been with Scorpio Tankers since 2010. He is currently the Chief Accounting Officer (since 2021) and Controller (since 2014). He also served as the Chief Financial Officer of Hermitage Offshore Services Ltd. between 2019 and 2021. Prior to joining Scorpio Tankers, he was with Ernst & Young in its audit practice from 2002 through 2006 and its transaction advisory services practice from 2006 through 2010 where he was a senior manager. Mr. Avella is a certified public accountant and has a B.S. in accounting from Rutgers University, an M.B.A. from Seton Hall University, and an M.S. in finance from Georgetown University.

Emanuele Lauro, Chairman and Chief Executive Officer commented, “Brian’s leadership and experience has been instrumental in the growth and development of the Company over the last 13 years. He has been with us since the beginning and leaves the Company in its strongest financial position with a well-trained team poised to maintain high standards. While we will miss Brian’s unparalleled temperament and character, I am truly grateful for his contributions to the Company and wish him the best on a well-deserved retirement.”

Summary of First 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 second 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 Charters Out of the Pool
	Average Daily TCE Revenue		Expected Revenue Days (1)	% of Days			Average Daily TCE Revenue		Expected Revenue Days (1)	% of Days
LR2	$	53,000	2,600	39	%		$	30,500	890	100	%
MR	$	37,000	4,850	35	%		$	21,800	450	100	%
Handymax	$	37,000	1,260	34	%			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 first quarter of 2023:

	Average Daily TCE Revenue
Vessel class	Pool / Spot		Time Charters
LR2	$	47,356	$	29,887
MR	$	34,616	$	21,637
Handymax	$	38,349	N/A

• The Company is in discussions with a group of financial institutions for a term loan and revolving loan of up to the aggregate of $750.0 million to $1.0 billion. This facility is expected to bear interest at SOFR plus a margin of 1.95% per annum. The proceeds of this facility are expected to mainly be used to repay (and re-finance) more expensive lease financing, along with financing certain of the Company’s unencumbered vessels. The credit facility is subject to credit approval from the banks, customary conditions precedent, and negotiation and execution of definitive documentation.
• In March 2023, the Company entered into a time charter-out agreement on an LR2, STI Jermyn, for three years at a rate of $40,000 per day. This charter commenced in April 2023. During 2022 and so far in 2023, the Company has entered into a total of 15 time-charter out agreements (ten LR2s and five MRs), the terms of which are described in the fleet list below.
• In January 2023, the Company exercised the purchase options on STI Brooklyn, STI Rambla, STI Rose and STI Ville on the AVIC Lease Financing and repaid the aggregate outstanding lease obligation of $77.8 million as part of these transactions.
• In March 2023, the Company exercised the purchase option on STI Sanctity on the Ocean Yield Lease Financing and repaid the aggregate outstanding lease obligation of $27.8 million as part of this transaction.
• The Company has also given notice to exercise the purchase options on six LR2 product tankers and eight MR product tankers that are currently financed under lease financing arrangements (STI Steadfast, STI Supreme, STI Grace, STI Jermyn, STI Lavender, STI Lobelia, STI Magnetic, STI Marshall, STI Miracle, STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister). These repurchases are expected to occur in the second and third quarters of 2023 and result in an aggregate debt reduction of $352.7 million.
• The Company has executed or received commitments for three separate secured credit facilities for up to $391.5 million in aggregate. These facilities are expected to be collateralized by 22 vessels and bear interest at SOFR plus margins of between 1.90% and 1.975% per annum. The proceeds of these facilities are expected to be used to repay more expensive lease financing. $274.1 million has been drawn from two of these facilities as of the date of this press release.
• Since January 1, 2023 and through the date of this press release, the Company has repurchased an aggregate of 3,614,768 of its common shares in the open market at an average price of $52.22 per share.

• On May 1, 2023, the Board of Directors authorized to reset the 2023 Securities Repurchase Program up to an aggregate of $250 million of the Company’s securities.
• In March 2023, the Board of Directors appointed Ms. Sujata Parekh Kumar as an independent director to its Board of Directors. Ms. Kumar has over 40 years of experience in entrepreneurship and industry across a number of sectors including logistics, financial services, insurance, and shipping.

Securities Repurchase Program

On February 15, 2023, the Board of Directors authorized a new Securities Repurchase Program (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 currently consist of its Senior Unsecured Notes Due 2025 (NYSE: SBBA).  

Below are purchases of the Company’s securities made in the first quarter and second quarters of 2023.

• From January 1, 2023 through February 15, 2023, the Company purchased an aggregate of 1,891,303 of its common shares in the open market at an average price of $50.27 per share. These purchases were made under the previous securities repurchase program, which ended on February 15, 2023.
• From February 16 through the date of this press release, the Company has purchased an aggregate of 1,723,465 of its common shares in the open market at an average price of $54.37 per share.
• On May 1, 2023, the Board of Directors authorized to reset the 2023 Securities Repurchase Program up to an aggregate of $250 million of the Company’s securities.
  

There is $250.0 million available under the 2023 Securities Repurchase Program as of May 1, 2023.

Lease Repayments

In January 2023, the Company exercised its purchase options on two MR product tankers (STI Brooklyn and STI Ville) and two LR2 product tankers (STI Rose and STI Rambla) which were previously financed on the AVIC Lease Financing. These purchases resulted in a debt reduction of $77.8 million.

In March 2023, the Company exercised the purchase option on STI Sanctity which was previously financed on the Ocean Yield Lease Financing. This purchase resulted in a debt reduction of $27.8 million.

In March 2023, the Company gave notice to exercise its purchase options on two LR2 product tankers that are currently financed under the 2021 CSSC Lease Financing (STI Grace and STI Jermyn), in addition to one LR2 product tanker (STI Lavender), and three MR product tankers (STI Magnetic, STI Marshall, and STI Miracle) which are currently financed under the $670.0 Million Lease Financing. All of these leases bear interest at LIBOR plus a margin of 3.50% per annum. The purchases are expected to occur in May 2023 and result in a debt reduction of $149.8 million.

In April 2023, the Company gave notice to exercise its purchase options on one LR2 product tanker (STI Lobelia), and five MR product tankers (STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister) which are currently financed under the $670.0 Million Lease Financing. These leases bear interest at LIBOR plus a margin of 3.50% per annum. The purchases are expected to occur in June 2023 and result in a debt reduction of $147.3 million.

New Executed or Committed Financings

The Company has executed or received commitments for three separate credit facilities for up to $391.5 million in aggregate (the "New Facilities").

The first credit facility (the "2023 $225.0 Million Credit Facility") is from a group of European financial institutions for a credit facility of up to $225.0 million. The 2023 $225.0 Million Credit Facility was executed in January 2023 and $184.9 million was drawn in February 2023 and $40.1 million was drawn in March 2023. Thirteen product tankers (STI Opera, STI Duchessa, STI Venere, STI Virtus, STI Aqua, STI Dama, STI Regina, STI San Antonio, STI Yorkville, STI Battery, STI Milwaukee, STI Madison, and STI Sanctity) were collateralized under this facility as part of these drawdowns. The 2023 $225.0 Million Credit Facility has a final maturity of five years from the signing date and bears interest at SOFR plus a margin of 1.975% per annum. The borrowings for the MRs are expected to be repaid in equal quarterly installments of $0.63 million per vessel for the first two years, and $0.33 million per vessel for the remaining term of the loan. The borrowings for the LR2s are expected to be repaid in equal quarterly installments of $0.8 million per vessel for the first two years, and $0.45 million per vessel for the remaining term of the loan. The remaining terms and conditions of the 2023 $225.0 Million Credit Facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities.

The second credit facility (the "2023 $49.1 Million Credit Facility") is from a North American financial institution for a credit facility of up to $49.1 million. The 2023 $49.1 Million Credit Facility was executed in February 2023 and was fully drawn in March 2023. Two LR2 product tankers, STI Rose and STI Rambla, were collateralized on this facility upon drawdown. This facility has a final maturity of five years from the drawdown date of each vessel and bears interest at SOFR plus a margin of 1.90% per annum. The borrowings are expected to be repaid in equal quarterly installments of $1.2 million in aggregate with a balloon payment at maturity. The terms and conditions of the 2023 $49.1 Million Credit Facility, including financial covenants, are similar to those set forth in the Company's existing credit facilities.

The third credit facility commitment (the "2023 $117.4 Million Credit Facility") is from a European financial institution for a credit facility of up to $117.4 million. The 2023 $117.4 Million Credit Facility is expected to be used to finance two Handymax product tankers, four MR product tankers and one LR2 product tanker. The 2023 $117.4 Million Credit Facility is expected to have a final maturity of five years from the drawdown date of each vessel and bear interest at SOFR plus a margin of 1.925% per annum. The terms and conditions of this credit facility, including financial covenants, will be similar to those set forth in the Company's existing credit facilities. The 2023 $117.4 Million Credit Facility is subject to customary conditions precedent, and the execution of definitive documentation, and is expected to close in the second quarter of 2023.

The proceeds of the New Facilities are expected to be used to repay more expensive lease financing.

$750.0 Million to $1.0 Billion Term Loan and Revolving Loan

The Company is in discussions with a group of financial institutions for a term loan and revolving loan (the “Credit Facility”) of up to the aggregate of $750.0 million to $1.0 billion. The Credit Facility is expected to consist of a 50% term loan and 50% revolving loan, have a final maturity of five years from the signing date (but not later than June 30, 2028), and bear interest at SOFR plus a margin of 1.95% per annum. Proceeds from the Credit Facility, primarily, are expected to be used to repay (and re-finance) more expensive lease financing, along with financing certain of the Company's unencumbered vessels. The terms and conditions, including financial covenants, of the Credit Facility are expected to be similar to the Company’s existing credit facilities. The Credit Facility is subject to credit approval from the banks, customary conditions precedent, and negotiation and execution of definitive documentation. There is no assurance that we will enter into the Credit Facility on the terms described above (which may be subject to change) or at all.

Diluted Weighted Number of Shares

The computation of earnings or loss 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 or loss per share to the extent they are anti-dilutive.   

For the three months ended March 31, 2023, the Company’s basic weighted average number of shares outstanding was 56,834,813. For the three months ended March 31, 2023, the Company’s diluted weighted average number of shares outstanding was 59,111,952 which included the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan.  

Conference Call

The Company has scheduled a conference call on May 2, 2023 at 8:00 AM Eastern Daylight Time and 2:00 PM Central European Summer Time. The dial-in information is as follows:

US Dial-In Number: 1 (833) 630-1956

International Dial-In Number: +1 (412) 317-1837

Conference ID: 10178106

Participants should dial into the call 10 minutes before the scheduled time. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

There will also be a simultaneous live webcast over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: https://edge.media-server.com/mmc/p/5d8emazp

Current Liquidity

As of April 27, 2023, the Company had $586.6 million in unrestricted cash and cash equivalents. Within the next two weeks, the Company is expected to receive approximately $100 million from the Scorpio tanker pools with respect to the monthly cash distribution for April. The Company is also expected to draw down approximately $117.4 million from a credit facility that has been committed but is pending closing (described above, under the heading "New Executed or Committed Financings").

Drydock, Scrubber and Ballast Water Treatment Update

Set forth below is a table summarizing the drydock, scrubber, and ballast water treatment system activity that occurred during the first quarter of 2023 and the estimated expected payments to be made, and offhire 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
Q1 2023 - actual (a)	8.5	61	—	2	—
Q2 2023 - estimated (b)	9.9	96	—	4	—
Q3 2023 - estimated	5.3	—	—	—	—
Q4 2023 - estimated (c)	8.2	180	—	5	—
FY 2024 - estimated (d)	64.2	1,215	11	32	12

⁽¹⁾  These costs include estimated cash payments for drydocks, ballast water treatment system installations and scrubber installations. These amounts include 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 three BWTS installations.

(c)   Includes five scrubber installations and one BWTS installation.

(d)   Includes seven scrubber installations.

Debt

Set forth below is a summary of the principal balances of the Company’s outstanding indebtedness as of the dates presented:

	In thousands of U.S. Dollars	Outstanding Principal as of December 31, 2022		Outstanding Principal as of March 31, 2023		Outstanding Principal as of April 27, 2023
1	Hamburg Commercial Credit Facility	$	33,732	$	32,909	$	32,909
2	Prudential Credit Facility		39,286		37,899		37,437
3	2019 DNB / GIEK Credit Facility		38,338		36,559		36,559
4	BNPP Sinosure Credit Facility		80,576		80,576		75,122
5	2020 $225.0 Million Credit Facility		37,765		36,482		36,482
6	2023 $225.0 Million Credit Facility (1)		—		225,000		216,525
7	2023 $49.1 Million Credit Facility (2)		—		49,088		49,088
8	Ocean Yield Lease Financing (3)		114,860		84,372		83,687
9	BCFL Lease Financing (LR2s)		68,310		65,598		64,733
10	CSSC Lease Financing		121,276		117,635		116,421
11	BCFL Lease Financing (MRs)		53,202		49,202		47,750
12	AVIC Lease Financing (4)		77,769		—		—
13	2020 CMBFL Lease Financing		38,090		37,279		37,279
14	2020 TSFL Lease Financing		40,607		39,777		39,777
15	2020 SPDBFL Lease Financing		83,511		81,887		81,887
16	2021 AVIC Lease Financing		84,635		82,822		82,822
17	2021 CMBFL Lease Financing		68,045		66,415		66,010
18	2021 TSFL Lease Financing		49,997		48,902		48,902
19	2021 CSSC Lease Financing		48,631		47,315		46,877
20	2021 $146.3 Million Lease Financing		133,699		130,404		127,109
21	2021 Ocean Yield Lease Financing		63,933		62,490		62,009
22	2022 AVIC Lease Financing		113,804		111,512		111,512
23	IFRS 16 - Leases - 3 MR		21,138		19,063		18,338
24	IFRS 16 - Leases - $670.0 Million		475,939		464,813		461,061
25	Unsecured Senior Notes Due 2025		70,571		70,571		70,571
	Gross debt outstanding		1,957,714		2,078,570		2,050,867
	Cash and cash equivalents		376,870		612,655		586,596
	Net debt	$	1,580,844	$	1,465,915	$	1,464,271

⁽¹⁾  The 2023 $225.0 Million Credit Facility was executed in January 2023, with $184.9 million and $40.1 million drawn in February and March 2023, respectively. Thirteen product tankers (11 MRs and two LR2) were collateralized under this facility as part of these drawdowns. The 2023 $225.0 Million Credit Facility has a final maturity of five years from the signing date and bears interest at SOFR plus a margin of 1.975% per annum. The borrowings for the MRs are expected to be repaid in equal quarterly installments of $0.63 million per vessel for the first two years, and $0.33 million per vessel for the remaining term of the loan. The borrowings for the LR2s are expected to be repaid in equal quarterly installments of $0.8 million per vessel for the first two years, and $0.45 million per vessel for the remaining term of the loan. The remaining terms and conditions of the 2023 $225.0 Million Credit Facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities.

⁽²⁾  The 2023 $49.1 Million Credit Facility was executed in February 2023 and was fully drawn in March 2023. Two LR2 product tankers were collateralized on this facility upon drawdown. The 2023 $49.1 Million Credit Facility has a final maturity of five years from the drawdown date of each vessel and bears interest at SOFR plus a margin of 1.90% per annum. The borrowings are expected to be repaid in equal quarterly installments of $1.2 million in aggregate with a balloon payment at maturity. The terms and conditions of the 2023 $49.1 Million Credit Facility, including financial covenants, are similar to those set forth in the Company's existing credit facilities.

⁽³⁾  In September and October 2022, the Company gave notice to exercise the repurchase options on STI Sanctity, STI Steadfast, and STI Supreme on the Ocean Yield Lease Financing. In March 2023, the Company exercised the purchase option on STI Sanctity resulting in a debt reduction of $27.8 million. The remaining transactions are expected to occur in the second and third quarters of 2023 resulting in debt reductions of $27.8 million per vessel.

⁽⁴⁾  In January 2023, the Company exercised the repurchase options on STI Brooklyn, STI Rambla, STI Rose, and STI Ville on the AVIC Lease Financing and repaid the aggregate outstanding lease obligation of $77.8 million as part of these transactions.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of March 31, 2023, which includes principal amounts due under the Company's secured credit facilities, lease financing arrangements, Senior Notes Due 2025, and lease liabilities under IFRS 16 (which also include actual scheduled payments made during the second quarter of 2023 through April 27, 2023):

		As of March 31, 2023 (1)
In millions of U.S. dollars		Total		Repayments/maturities of unsecured debt		Vessel financings - announced vessel repurchases and maturities in 2023 and 2024		Vessel financings - scheduled repayments, in addition to maturities in 2025 and thereafter
Q2 2023 - principal payments made through April 27, 2023		$	27.7	$	—	$	—	$	27.7
Q2 2023 (2) (3) (4)			356.7		—		324.9		31.8
Q3 2023 (4)			79.9		—		27.8		52.1
Q4 2023			57.3		—		—		57.3
Q1 2024			51.5		—		—		51.5
Q2 2024			56.8		—		—		56.8
Q3 2024 (5)			92.1		—		42.7		49.4
Q4 2024 (6)			88.4		—		38.2		50.2
2025 and thereafter			1,268.2		70.6		—		1,197.6
		$	2,078.6	$	70.6	$	433.6	$	1,574.4

⁽¹⁾  Amounts represent the principal payments due on the Company’s outstanding indebtedness as of March 31, 2023.

⁽²⁾  Repayments include the Company's exercise of its purchase options on two LR2 product tankers (STI Grace and STI Jermyn) which are currently financed under the 2021 CSSC Lease Financing. These purchases are expected to occur in May 2023, and the aggregate outstanding lease liability is expected to be $46.9 million at the date of purchase.

⁽³⁾  Repayments include the Company's exercise of its purchase options on eight MR product tankers (STI Magnetic, STI Marshall, STI Miracle, STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister) and two LR2 product tankers (STI Lavender and STI Lobelia) which are currently financed under the IFRS 16 - Leases - $670.0 Million lease financing. These purchases are expected to occur in May and June 2023, and the aggregate outstanding lease liability is expected to be $250.2 million at the dates of purchase.

⁽⁴⁾  Repayments include the Company’s exercise of its purchase options on two LR2 product tankers (STI Steadfast, and STI Supreme). These vessels are currently financed under the Ocean Yield Lease Financing. The purchases are expected to occur in the second and third quarters of 2023 with a debt reduction of $27.8 million per vessel.

⁽⁵⁾  Repayments include (i) $15.0 million for the scheduled purchase options on three MR product tankers (STI Topaz, STI Ruby, and STI Garnet), which are currently financed under the BCFL Lease Financing (MRs); and (ii) $27.7 million for the scheduled maturity payments on the 2019 DNB / GIEK Credit Facility.

⁽⁶⁾  Repayments include (i) $10.2 million for the scheduled purchase options on two MR product tankers (STI Onyx and STI Amber), which are currently financed under the BCFL Lease Financing (MRs); and (ii) $28.0 million for the scheduled maturity payments on the Hamburg Commercial Credit Facility.

Explanation of Variances on the First Quarter of 2023 Financial Results Compared to the First Quarter of 2022

For the three months ended March 31, 2023, the Company recorded net income of $193.2 million compared to a net loss of $84.4 million for the three months ended March 31, 2022. The following were the significant changes between the two periods:

• 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 March 31, 2023 and 2022:
  
  

			For the three months ended March 31,
In thousands of U.S. dollars			2023				2022
	Vessel revenue		$	384,431			$	174,047
	Voyage expenses			(7,269	)			(2,023	)
	TCE revenue		$	377,162			$	172,024

• TCE revenue for the three months ended March 31, 2023 increased by $205.1 million to $377.2 million, from $172.0 million for the three months ended March 31, 2022. Overall average TCE revenue per day increased to $37,500 per day during the three months ended March 31, 2023, from $15,415 per day during the three months ended March 31, 2022.   The average number of vessels was 113.0 during the three months end March 31, 2023 as compared to 129.3 during the three months ended March 31, 2022.   The decrease in the average number of vessels was due to the previously disclosed sales of 18 vessels during the year ended December 31, 2022.
  • TCE revenue for the three months ended March 31, 2023 reflected the continued strength in the product tanker market that began at the end of the first quarter of 2022 and has continued in 2023. Initially, the easing of COVID-19 restrictions around the globe, the conflict in Ukraine, and strengthening refining margins resulted in significant increases in ton-mile demand as trade routes shifted and volumes increased. More recently, volumes and trade routes continue to be impacted by the continued easing of COVID-19 restrictions, particularly in China, along with the implementation of sanctions on the export of Russian crude oil and refined petroleum products. These changes have accelerated a structural shift in the product tanker market that had been years in the making, where increasing demand for the seaborne transportation of refined petroleum products is outpacing the growth in the worldwide fleet of product tankers given a near record low orderbook for newbuilding vessels.
  • TCE revenue for the three months ended March 31, 2022 was subdued for most of the quarter which reflected the continued adverse market conditions that were brought on by the COVID-19 pandemic. The end of the quarter reflected an improving spot market for product tankers which was triggered by myriad factors including (i) the easing of COVID-19 restrictions around the globe which resulted in increased personal mobility and the demand for refined petroleum products; (ii) strengthening refining margins which, combined with low global refined petroleum product inventories, increased demand for the seaborne transportation of refined petroleum products, and; (iii) the volatility brought on by the conflict in Ukraine, which disrupted supply chains for crude oil and refined petroleum products, changing volumes and trade routes, and thus increased ton-mile demand for refined petroleum products.
    
    

The Company also had an increased number of vessels operating outside of the Scorpio pools during the three months ended March 31, 2023, which led to an increase in voyage revenue and voyage expenses for this period.

• Vessel operating costs for the three months ended March 31, 2023 decreased by $11.2 million to $73.7 million, from $84.8 million for the three months ended March 31, 2022. Vessel operating costs per vessel per day remained consistent at $7,244 per day for the three months ended March 31, 2023 as compared to $7,290 for the three months ended March 31, 2022. The aggregate reduction is due to the sale of 18 owned or lease financed vessels during the year ended December 31, 2022 (seven of which closed during the first quarter of 2022).
• Depreciation expense – owned or sale leaseback vessels for the three months ended March 31, 2023 decreased by $3.6 million to $40.5 million, from $44.1 million for the three months ended March 31, 2022. This decrease was attributable to the sale of 17 of the Company's owned or sale leaseback vessels during the year ended December 31, 2022 (16 of which were in the first quarter of 2022). These vessels were written down to their net realizable value upon being designated as held for sale, and depreciation expense ceased being recorded upon that designation.
• Depreciation expense - right of use assets for the three months ended March 31, 2023 decreased by $0.2 million to $9.5 million from $9.7 million for the three months ended March 31, 2022. Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded under IFRS 16 - Leases. This decrease is attributable to the sale of one of the Company's right of use asset vessels. This vessel was written down to its net realizable value upon being designated as held for sale during the first quarter of 2022, and depreciation expense ceased being recorded upon that designation. The Company had four LR2s and 17 MRs that were accounted for under IFRS 16 - Leases during the three months ended March 31, 2023.
• General and administrative expenses for the three months ended March 31, 2023, increased by $9.8 million to $22.3 million, from $12.5 million for the three months ended March 31, 2022. This increase was primarily due to an increase in compensation related costs. Due to the increase in stock price and a recent grant, the amortization of the restricted stock awards are expected to increase general and administrative expenses by approximately $8.0 million per quarter in the upcoming quarters. The awards granted to employees vest ratably in years three, four, and five following the initial grant.
• Net loss on sales of vessels for the three months ended March 31, 2022 was $67.7 million. During the first quarter of 2022, the Company entered into agreements to sell 17 vessels, consisting of two LR2s, 12 LR1s, and three MRs. Seven of these sales closed within the first quarter of 2022 (six LR1s and one MR) and the remaining sales closed within the second and third quarters of 2022.
• Financial expenses for the three months ended March 31, 2023 increased by $5.5 million to $43.5 million, from $38.0 million for the three months ended March 31, 2022. This increase was primarily attributable to 400+ basis point increases in benchmark rates, primarily LIBOR, during the three months ended March 31, 2023 as compared to the three months ended March 31, 2022. This increase was partially offset by the overall reduction in the Company's average indebtedness to $2.0 billion from $3.1 billion during the three months ended March 31, 2023 as compared to the three months ended March 31, 2022, arising from the aforementioned sales of 18 vessels (and repayments of the related debt or lease financing obligations), the exercise of purchase options on 27 lease financed vessels (six in August 2022, 16 in December 2022, four in January 2023, and one in March 2023), the maturity of the Convertible Notes Due 2022 in May 2022 and the conversion of the Convertible Notes Due 2025 in December 2022. Additionally, the Company recorded $2.3 million of debt extinguishment related costs during the three months ended March 31, 2023, as compared to $1.9 million during the three months ended March 31, 2022. This was accompanied by an aggregate decrease of $5.3 million in the amortization of deferred financing fees and accretion on both the convertible notes and debt assumed in business combinations, which were $1.5 million during the three months ended March 31, 2023 as compared to $6.8 million during the three months ended March 31, 2022.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statements of Income or Loss (unaudited)
		For the three months ended March 31,
In thousands of U.S. dollars except per share and share data		2023				2022
Revenue
	Vessel revenue	$	384,431			$	174,047
Operating expenses
	Vessel operating costs		(73,674	)			(84,832	)
	Voyage expenses		(7,269	)			(2,023	)
	Depreciation - owned or sale leaseback vessels		(40,491	)			(44,108	)
	Depreciation - right of use assets		(9,490	)			(9,720	)
	General and administrative expenses		(22,271	)			(12,454	)
	Net loss on sales of vessels		—				(67,738	)
	Total operating expenses		(153,195	)			(220,875	)
Operating income / (loss)			231,236				(46,828	)
Other (expense) and income, net
	Financial expenses		(43,532	)			(38,001	)
	Financial income		4,185				188
	Other income, net		1,348				193
	Total other expense, net		(37,999	)			(37,620	)
Net income / (loss)		$	193,237			$	(84,448	)
Earnings / (loss) per share
	Basic	$	3.40			$	(1.52	)
	Diluted	$	3.27			$	(1.52	)
	Basic weighted average shares outstanding		56,834,813				55,409,131
	Diluted weighted average shares outstanding (1)		59,111,952				55,409,131

⁽¹⁾  The computation of diluted earnings per share for the three months ended March 31, 2023 includes the effect of potentially dilutive unvested shares of restricted stock. The computation of diluted loss per share for the three months ended March 31, 2022 excludes the effect of potentially dilutive unvested shares of restricted stock and the Convertible Notes Due 2022 (which were repaid in full upon maturity in May 2022) and Convertible Notes Due 2025 (which were fully converted to common shares in December 2022) because their effect would have been anti-dilutive.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited)
	As of
In thousands of U.S. dollars	March 31, 2023				December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	612,655			$	376,870
Accounts receivable		233,592				276,700
Prepaid expenses and other current assets		9,642				18,159
Inventories		8,364				15,620
Total current assets		864,253				687,349
Non-current assets
Vessels and drydock		3,054,586				3,089,254
Right of use assets for vessels		681,344				689,826
Other assets		83,665				83,754
Goodwill		8,197				8,197
Restricted cash		783				783
Total non-current assets		3,828,575				3,871,814
Total assets	$	4,692,828			$	4,559,163
Current liabilities
Current portion of long-term debt	$	69,362			$	31,504
Lease liability - sale and leaseback vessels		205,560				269,145
Lease liability - IFRS 16		147,167				52,346
Accounts payable		24,086				28,748
Accrued expenses and other liabilities		62,325				91,508
Total current liabilities		508,500				473,251
Non-current liabilities
Long-term debt		490,385				264,106
Lease liability - sale and leaseback vessels		803,610				871,469
Lease liability - IFRS 16		336,519				443,529
Total non-current liabilities		1,630,514				1,579,104
Total liabilities		2,139,014				2,052,355
Shareholders' equity
Issued, authorized and fully paid-in share capital:
Share capital		743				727
Additional paid-in capital		3,053,538				3,049,732
Treasury shares		(779,725	)			(641,545	)
Retained earnings		279,258				97,894
Total shareholders' equity		2,553,814				2,506,808
Total liabilities and shareholders' equity	$	4,692,828			$	4,559,163

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited)
	For the three months ended March 31,
In thousands of U.S. dollars	2023				2022
Operating activities
Net income / (loss)	$	193,237			$	(84,448	)
Depreciation - owned or sale leaseback vessels		40,491				44,108
Depreciation - right of use assets		9,490				9,720
Amortization of restricted stock		3,821				4,494
Amortization of deferred financing fees		1,160				1,806
Non-cash debt extinguishment costs		1,148				1,586
Accretion of convertible notes		—				4,128
Net loss on sales of vessels		—				67,738
Accretion of fair value measurement on debt assumed in business combinations		338				889
Share of income from dual fuel tanker joint venture		(1,441	)			(174	)
		248,244				49,847
Changes in assets and liabilities:
Decrease / (increase) in inventories		7,256				(2,589	)
Decrease / (increase) in accounts receivable		43,108				(27,137	)
Decrease / (increase) in prepaid expenses and other current assets		8,516				(3,156	)
Decrease / (increase) in other assets		685				(27	)
Decrease in accounts payable		(3,743	)			(17,162	)
(Decrease) / increase in accrued expenses		(27,589	)			5,758
		28,233				(44,313	)
Net cash inflow from operating activities		276,477				5,534
Investing activities
Net proceeds from sales of vessels		—				225,815
Distributions from dual fuel tanker joint venture		845				240
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, leased financed and bareboat-in vessels)		(8,483	)			(14,279	)
Net cash (outflow) / inflow from investing activities		(7,638	)			211,776
Financing activities
Debt repayments		(138,641	)			(191,163	)
Issuance of debt		274,088				3,806
Debt issuance costs		(5,244	)			(184	)
Principal repayments on lease liability - IFRS 16		(13,204	)			(13,666	)
Decrease in restricted cash		—				2,003
Dividends paid		(11,873	)			(5,837	)
Repurchase of common stock		(138,180	)			—
Net cash outflow from financing activities		(33,054	)			(205,041	)
Increase in cash and cash equivalents		235,785				12,269
Cash and cash equivalents at January 1,		376,870				230,415
Cash and cash equivalents at March 31,	$	612,655			$	242,684

Scorpio Tankers Inc. and Subsidiaries Other operating data for the three months ended March 31, 2023 and 2022 (unaudited)
		For the three months ended March 31,
		2023			2022
Adjusted EBITDA(1) (in thousands of U.S. dollars except Fleet Data)		$	286,386		$	79,425
Average Daily Results
Fleet
TCE per revenue day (2)		$	37,500		$	15,415
Vessel operating costs per day (3)		$	7,244		$	7,290
Average number of vessels			113.0			129.3
LR2
TCE per revenue day (2)		$	43,292		$	14,475
Vessel operating costs per day (3)		$	7,497		$	7,228
Average number of vessels			39.0			42.0
LR1
TCE per revenue day (2)		N/A			$	12,320
Vessel operating costs per day (3)		N/A			$	7,170
Average number of vessels		N/A				10.7
MR
TCE per revenue day (2)		$	33,517		$	16,305
Vessel operating costs per day (3)		$	7,109		$	7,364
Average number of vessels			60.0			62.6
Handymax
TCE per revenue day (2)		$	38,349		$	15,949
Vessel operating costs per day (3)		$	7,102		$	7,231
Average number of vessels			14.0			14.0
Capital Expenditures
Drydock, scrubber, ballast water treatment system and other vessel related payments (in thousands of U.S. dollars)		$	8,483		$	14,279

(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 the vessel is owned, sale leasebacked, or chartered-in less the number of days the vessel is 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 the owned, sale leasebacked or bareboat chartered-in vessels, before deducting available days due to off-hire days and days in drydock. Operating days is a measurement that is only applicable to owned, sale leasebacked, or bareboat chartered-in vessels, not time chartered-in vessels.

Fleet list as of May 1, 2023

	Vessel Name		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)		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 Ville		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
21	STI Duchessa		2014		49,990		—		Time Charter (4)		MR		Not Yet Installed
22	STI Opera		2014		49,990		—		SMRP (2)		MR		Not Yet Installed
23	STI Texas City		2014		49,990		—		SMRP (2)		MR		Yes
24	STI Meraux		2014		49,990		—		SMRP (2)		MR		Yes
25	STI San Antonio		2014		49,990		—		SMRP (2)		MR		Yes
26	STI Venere		2014		49,990		—		SMRP (2)		MR		Yes
27	STI Virtus		2014		49,990		—		SMRP (2)		MR		Yes
28	STI Aqua		2014		49,990		—		SMRP (2)		MR		Yes
29	STI Dama		2014		49,990		—		SMRP (2)		MR		Yes
30	STI Regina		2014		49,990		—		SMRP (2)		MR		Yes
31	STI St. Charles		2014		49,990		—		SMRP (2)		MR		Yes
32	STI Mayfair		2014		49,990		—		SMRP (2)		MR		Yes
33	STI Yorkville		2014		49,990		—		SMRP (2)		MR		Yes
34	STI Milwaukee		2014		49,990		—		SMRP (2)		MR		Yes
35	STI Battery		2014		49,990		—		SMRP (2)		MR		Yes
36	STI Soho		2014		49,990		—		SMRP (2)		MR		Yes
37	STI Memphis		2014		49,990		—		Time Charter (5)		MR		Yes
38	STI Tribeca		2015		49,990		—		SMRP (2)		MR		Yes
39	STI Gramercy		2015		49,990		—		SMRP (2)		MR		Yes
40	STI Bronx		2015		49,990		—		SMRP (2)		MR		Yes
41	STI Pontiac		2015		49,990		—		SMRP (2)		MR		Yes
42	STI Manhattan		2015		49,990		—		SMRP (2)		MR		Yes
43	STI Queens		2015		49,990		—		SMRP (2)		MR		Yes
44	STI Osceola		2015		49,990		—		SMRP (2)		MR		Yes
45	STI Notting Hill		2015		49,687		1B		SMRP (2)		MR		Yes
46	STI Seneca		2015		49,990		—		SMRP (2)		MR		Yes
47	STI Westminster		2015		49,687		1B		SMRP (2)		MR		Yes
48	STI Brooklyn		2015		49,990		—		SMRP (2)		MR		Yes
49	STI Black Hawk		2015		49,990		—		SMRP (2)		MR		Yes
50	STI Galata		2017		49,990		—		SMRP (2)		MR		Yes
51	STI Bosphorus		2017		49,990		—		SMRP (2)		MR		Not Yet Installed
52	STI Leblon		2017		49,990		—		SMRP (2)		MR		Yes
53	STI La Boca		2017		49,990		—		SMRP (2)		MR		Yes
54	STI San Telmo		2017		49,990		1B		SMRP (2)		MR		Not Yet Installed
55	STI Donald C Trauscht		2017		49,990		1B		SMRP (2)		MR		Not Yet Installed
56	STI Esles II		2018		49,990		1B		SMRP (2)		MR		Not Yet Installed
57	STI Jardins		2018		49,990		1B		SMRP (2)		MR		Not Yet Installed
58	STI Magic		2019		50,000		—		SMRP (2)		MR		Yes
59	STI Mystery		2019		50,000		—		SMRP (2)		MR		Yes
60	STI Marvel		2019		50,000		—		SMRP (2)		MR		Yes
61	STI Magnetic		2019		50,000		—		Time Charter (6)		MR		Yes
62	STI Millennia		2019		50,000		—		SMRP (2)		MR		Yes
63	STI Magister		2019		50,000		—		SMRP (2)		MR		Yes
64	STI Mythic		2019		50,000		—		SMRP (2)		MR		Yes
65	STI Marshall		2019		50,000		—		Time Charter (7)		MR		Yes
66	STI Modest		2019		50,000		—		SMRP (2)		MR		Yes
67	STI Maverick		2019		50,000		—		SMRP (2)		MR		Yes
68	STI Miracle		2020		50,000		—		Time Charter (8)		MR		Yes
69	STI Maestro		2020		50,000		—		SMRP (2)		MR		Yes
70	STI Mighty		2020		50,000		—		SMRP (2)		MR		Yes
71	STI Maximus		2020		50,000		—		SMRP (2)		MR		Yes
72	STI Elysees		2014		109,999		—		SLR2P (3)		LR2		Yes
73	STI Madison		2014		109,999		—		SLR2P (3)		LR2		Yes
74	STI Park		2014		109,999		—		SLR2P (3)		LR2		Yes
75	STI Orchard		2014		109,999		—		SLR2P (3)		LR2		Yes
76	STI Sloane		2014		109,999		—		SLR2P (3)		LR2		Yes
77	STI Broadway		2014		109,999		—		SLR2P (3)		LR2		Yes
78	STI Condotti		2014		109,999		—		SLR2P (3)		LR2		Yes
79	STI Rose		2015		109,999		—		SLR2P (3)		LR2		Yes
80	STI Veneto		2015		109,999		—		SLR2P (3)		LR2		Yes
81	STI Alexis		2015		109,999		—		SLR2P (3)		LR2		Yes
82	STI Winnie		2015		109,999		—		SLR2P (3)		LR2		Yes
83	STI Oxford		2015		109,999		—		SLR2P (3)		LR2		Yes
84	STI Lauren		2015		109,999		—		SLR2P (3)		LR2		Yes
85	STI Connaught		2015		109,999		—		Time Charter (9)		LR2		Yes
86	STI Spiga		2015		109,999		—		SLR2P (3)		LR2		Yes
87	STI Kingsway		2015		109,999		—		SLR2P (3)		LR2		Yes
88	STI Solidarity		2015		109,999		—		SLR2P (3)		LR2		Yes
89	STI Lombard		2015		109,999		—		Time Charter (10)		LR2		Yes
90	STI Grace		2016		109,999		—		Time Charter (11)		LR2		Yes
91	STI Jermyn		2016		109,999		—		Time Charter (12)		LR2		Yes
92	STI Sanctity		2016		109,999		—		SLR2P (3)		LR2		Yes
93	STI Solace		2016		109,999		—		SLR2P (3)		LR2		Yes
94	STI Stability		2016		109,999		—		SLR2P (3)		LR2		Yes
95	STI Steadfast		2016		109,999		—		SLR2P (3)		LR2		Yes
96	STI Supreme		2016		109,999		—		SLR2P (3)		LR2		Yes
97	STI Symphony		2016		109,999		—		SLR2P (3)		LR2		Yes
98	STI Gallantry		2016		113,000		—		SLR2P (3)		LR2		Yes
99	STI Goal		2016		113,000		—		SLR2P (3)		LR2		Yes
100	STI Guard		2016		113,000		—		Time Charter (13)		LR2		Yes
101	STI Guide		2016		113,000		—		Time Charter (14)		LR2		Yes
102	STI Selatar		2017		109,999		—		SLR2P (3)		LR2		Yes
103	STI Rambla		2017		109,999		—		SLR2P (3)		LR2		Yes
104	STI Gauntlet		2017		113,000		—		Time Charter (15)		LR2		Yes
105	STI Gladiator		2017		113,000		—		Time Charter (14)		LR2		Yes
106	STI Gratitude		2017		113,000		—		Time Charter (16)		LR2		Yes
107	STI Lobelia		2019		110,000		—		SLR2P (3)		LR2		Yes
108	STI Lotus		2019		110,000		—		SLR2P (3)		LR2		Yes
109	STI Lily		2019		110,000		—		SLR2P (3)		LR2		Yes
110	STI Lavender		2019		110,000		—		Time Charter (17)		LR2		Yes
111	STI Beryl		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
112	STI Le Rocher		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
113	STI Larvotto		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
	Total Fleet DWT				7,852,182

(1	)	This vessel operates in, or is expected to operate in, the Scorpio Handymax Tanker Pool, or SHTP. SHTP is a Scorpio Pool and is operated by Scorpio Commercial Management S.A.M. (SCM). SHTP and SCM are related parties to the Company.
(2	)	This vessel operates in, or is expected to operate in, the Scorpio MR Pool, or SMRP. SMRP is a Scorpio Pool and is operated by SCM. SMRP and SCM are related parties to the Company.
(3	)	This vessel operates in, or is expected to operate in, the Scorpio LR2 Pool, or SLR2P. SLR2P is a Scorpio Pool and is operated by SCM. SLR2P and SCM are related parties to the Company.
(4	)	This vessel commenced a time charter in October 2022 for three years at an average rate of $25,000 per day.
(5	)	This vessel commenced a time charter in June 2022 for three years at an average rate of $21,000 per day. The daily rate is the average rate over the three year period, which is payable during the first six months at $30,000 per day, the next 6 months are payable at $20,000 per day, and years two and three are payable at $19,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $22,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $24,000 per day.
(6	)	This vessel commenced a time charter in July 2022 for three years at an average rate of $23,000 per day. The daily rate is the average rate over the three year period, which is payable in years one, two, and three at $30,000 per day, $20,000 per day, and $19,000 per day, respectively. The charterers have the option to extend the term of this agreement for an additional year at $24,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $26,000 per day.
(7	)	This vessel commenced a time charter in July 2022 for three years at a rate of $23,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $24,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $25,000 per day. If this second option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $26,000 per day.
(8	)	This vessel commenced a time charter in August 2022 for three years at a rate of $21,000 per day. The daily rate is the average rate over the three year period, which is payable during the first six months at $30,000 per day, the next 6 months are payable at $20,000 per day, and years two and three are payable at $19,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $22,500 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $24,000 per day.
(9	)	In April 2023, STI Connaught replaced STI Goal on a time charter which initially commenced in August 2022 for three years at a rate of $30,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $32,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $34,000 per day.
(10	)	This vessel commenced a time charter in September 2022 for three years at an average rate of $32,750 per day. The charterer has the option to extend the term of this agreement for an additional year at $34,750 per day. If this option is declared, the charterer has the option to further extend the term of this agreement for an additional year at $36,750 per day.
(11	)	This vessel commenced a time charter in December 2022 for three years at an average rate of $37,500 per day. The daily rate is the average rate over the three-year period, which is payable during the first six months at $47,000 per day, the next 6 months are payable at $28,000 per day, and years two and three are payable at $37,500 per day.
(12	)	This vessel commenced a time charter in April 2023 for three years at a rate of $40,000 per day. The charterer has the option to extend the term of this agreement for an additional year at $42,500 per day.
(13	)	This vessel commenced a time charter in July 2022 for five years at a rate of $28,000 per day. The charterers have the option to convert the term of this agreement to three years at $30,000 per day, which must be declared within 30 months after the delivery date.
(14	)	This vessel commenced a time charter in July 2022 for three years at an average rate of $28,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $31,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $33,000 per day.
(15	)	This vessel commenced a time charter in November 2022 for three years at an average rate of $32,750 per day.
(16	)	This vessel commenced a time charter in May 2022 for three years at an average rate of $28,000 per day. The charterers have the option to extend the term of this agreement for an additional year at $31,000 per day. If this option is declared, the charterers have the option to further extend the term of this agreement for an additional year at $33,000 per day.
(17	)	This vessel commenced a time charter in December 2022 for three years at an average rate of $35,000 per day.

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 Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2022 and 2023 were as follows:

	Date paid	Dividend per common share
	March 2022	$0.10
	June 2022	$0.10
	September 2022	$0.10
	December 2022	$0.10
	March 2023	$0.20

On May 1, 2023, the Company's Board of Directors declared a quarterly cash dividend of $$0.25 per common share, with a payment date of June 30, 2023 to all shareholders of record as of June 13, 2023 (the record date). As of May 1, 2023, there were 59,455,820 common shares of the Company outstanding.

Conflict in Ukraine

The ongoing military conflict in Ukraine has had a significant direct and indirect impact on the trade of refined petroleum products. This conflict has resulted in the United States, the United Kingdom, and the European Union countries, among other countries and jurisdictions, implementing sanctions and executive orders against citizens, entities, and activities connected to Russia. Some of these sanctions and executive orders target the Russian oil sector, including a prohibition on the import of oil from Russia to the United States or the United Kingdom, and the European Union's recent ban on Russian crude oil and petroleum products which took effect in December 2022 and February 2023, respectively. The Company cannot foresee what other sanctions or executive orders may arise that affect the trade of petroleum products. Furthermore, the conflict and ensuing international response has disrupted the supply of Russian oil to the global market, and as a result, the price of oil and petroleum products has experienced significant volatility. The Company cannot predict what effect the higher price of oil and petroleum products will have on demand, and it is possible that the current conflict in Ukraine could adversely affect the Company's financial condition, results of operations, and future performance.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns, lease finances or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.3 years. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.

Non-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 First Quarter of 2023 Financial Results Compared to the First 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 / (Loss) to Adjusted Net Income / (Loss)

			For the three months ended March 31, 2023
						Per share			Per share
In thousands of U.S. dollars except per share data			Amount			basic			diluted
	Net income		$	193,237		$	3.40		$	3.27
	Adjustment:
	Write-offs of deferred financing fees and debt extinguishment costs			2,315			0.04			0.04
	Adjusted net income		$	195,552		$	3.44		$	3.31

			For the three months ended March 31, 2022
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net loss		$	(84,448	)		$	(1.52	)		$	(1.52	)
	Adjustments:
	Loss on sales of vessels			67,738			$	1.22			$	1.22
	Write-offs of deferred financing fees and debt extinguishment costs			1,855			$	0.03			$	0.03
	Adjusted net loss		$	(14,855	)		$	(0.27	)		$	(0.27	)

Reconciliation of Net Income / (Loss) to Adjusted EBITDA

			For the three months ended March 31,
In thousands of U.S. dollars			2023				2022
	Net Income / (Loss)		$	193,237			$	(84,448	)
	Financial expenses			43,532				38,001
	Financial income			(4,185	)			(188	)
	Depreciation - owned or lease financed vessels			40,491				44,108
	Depreciation - right of use assets			9,490				9,720
	Amortization of restricted stock			3,821				4,494
	Net loss on sales of vessels			—				67,738
	Adjusted EBITDA		$	286,386			$	79,425

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 for the continuing impacts of the novel coronavirus (COVID-19) pandemic, including its 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 Ukraine, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off‐hires, and other factors. Please see the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Contact Information

Scorpio Tankers Inc.
James Doyle - Head of Corporate Development & Investor Relations
Tel: +1 646-432-1678
Email: investor.relations@scorpiotankers.com