Scorpio Tankers Inc. Announces Financial Results for the Second Quarter of 2024, the Declaration of a Dividend and an Increase to its Securities Repurchase Program

MONACO, July 30, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three and six months ended June 30, 2024. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend on its common shares of $0.40 per share.

Results for the three months ended June 30, 2024 and 2023

For the three months ended June 30, 2024, the Company had net income of $227.3 million, or $4.54 basic and $4.34 diluted earnings per share.

For the three months ended June 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $188.4 million, or $3.77 basic and $3.60 diluted earnings per share, which excludes from net income a $43.3 million, or $0.87 per basic and $0.83 per diluted share, gain on sales of vessels and a $4.4 million, or $0.09 per basic and $0.08 per diluted share, write-off or acceleration of the amortization of deferred financing fees related to unscheduled debt and lease payments and debt extinguishment costs on certain lease financing obligations.

For the three months ended June 30, 2023, the Company had net income of $132.4 million, or $2.50 basic and $2.40 diluted earnings per share.

For the three months ended June 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $133.3 million, or $2.51 basic and $2.41 diluted earnings per share, which excludes from net income a $0.9 million, or $0.02 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs.

Results for the six months ended June 30, 2024 and 2023

For the six months ended June 30, 2024, the Company had net income of $441.5 million, or $8.84 basic and $8.45 diluted earnings per share.

For the six months ended June 30, 2024, the Company had adjusted net income (see Non-IFRS Measures section below) of $394.9 million, or $7.90 basic and $7.56 diluted earnings per share, which excludes from net income a $54.7 million, or $1.09 per basic and $1.05 per diluted share, gain on sales of vessels and a $8.1 million, or $0.16 per basic and $0.15 per diluted share, write-off or acceleration of the amortization of deferred financing fees related to unscheduled debt and lease payments and debt extinguishment costs on certain lease financing obligations.

For the six months ended June 30, 2023, the Company had net income of $325.6 million, or $5.93 basic and $5.69 diluted earnings per share.

For the six months ended June 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $328.9 million, or $5.99 basic and $5.75 diluted earnings per share, which excludes from net income a $3.3 million, or $0.06 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs.

Declaration of Dividend

On July 29, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of September 13, 2024 to all shareholders of record as of August 15, 2024 (the record date). As of July 29, 2024, there were 53,175,099 common shares of the Company outstanding.

Emanuele Lauro, Chairman and Chief Executive Officer commented, "The Company's balance sheet and cash flow generation potential continue to improve. In the second quarter, we repaid $399 million of debt and reduced our daily cash break evens to $12,500. Additionally, we've agreed to convert our 2023 $225.0 million Credit Facility to a revolving credit facility and committed to prepaying our $64 million credit facility with BNP Paribas and Sinosure. These initiatives could potentially reduce our daily cash break-even rates by over $1,000."

Summary of Second Quarter 2024 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 third 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 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	$	44,000	2,550	43	%		$	30,750	910	100	%
MR	$	34,000	4,050	35	%		$	21,750	430	100	%
Handymax	$	25,000	1,120	29	%		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 second quarter of 2024:

	Average Daily TCE Revenue
Vessel class	Pool / Spot		Time Charters
LR2	$	52,807	$	30,884
MR	$	37,019	$	21,884
Handymax	$	28,011	N/A

• On July 29, 2024, the Company's Board of Directors replenished and increased the 2023 Securities Repurchase Program to purchase up to an aggregate of $400 million of the Company's securities which, in addition to its common shares also consist of its Senior Unsecured Notes Due 2025 (NYSE:SBBA).
• In July 2024, the Company reached an agreement with the lenders on its 2023 $225.0 Million Credit Facility to convert the $174.2 million outstanding balance remaining on this facility from a term loan to a revolving credit facility. This amendment is expected to give the Company the flexibility to make unscheduled repayments that can be re-drawn in the future subject to a quarterly amortization profile. This amendment is subject to the execution of definitive documentation and is expected to close in the third quarter of 2024.  
• In July 2024, the Company submitted notice to repay the outstanding balance on its BNPP Sinosure Credit Facility. The outstanding balance on this facility is $64.2 million and the facility currently bears interest at SOFR plus a blended margin (between the Commercial and Sinosure facilities) of 2.91% per annum. This prepayment is expected to occur in September 2024.
• In June 2024, the Company made an unscheduled prepayment on its 2023 $1.0 Billion Credit Facility of $223.6 million which was applied against the eight quarterly principal payments of the term loan falling due between the third quarter of 2024 and second quarter of 2026.
• During June and July 2024, the Company repurchased an aggregate of 1,397,966 of its common shares in the open market at an average price of $78.16 per share.
• During the second quarter of 2024, the Company entered into agreements to sell five MR product tankers (four 2012 built and one 2013 built). The 2012 built vessels (three of which are scrubber fitted), STI Garnet, STI Onyx, STI Ruby, and STI Topaz, were contracted to be sold for $142.5 million in aggregate to three separate buyers. The 2013 built vessel, STI Beryl (which is not scrubber fitted), was contracted to be sold for $36.6 million. The Company will make no debt repayments associated with these sales as these vessels are unencumbered. The sale of STI Garnet closed in July 2024 and the remaining vessel sales are expected to close within the third quarter of 2024.
• In July 2024, the Company closed the previously announced sale of its 2015 built MR product tanker, STI Manhattan, for $40.8 million. There was no debt repayment as a result of this sale as this vessel was replaced by one of its unencumbered vessels, STI Notting Hill, as collateral on the 2023 $1.0 Billion Credit Facility.
• In April and May 2024, the Company closed the previously announced sales of its 2013 built MR product tankers, STI Larvotto and STI Le Rocher, respectively, for $36.15 million each. There was no debt repayment as a result of these sales as these vessels are unencumbered.
• From April 1, 2024 through the date of this press release, the Company made $341.8 million in previously announced unscheduled debt and lease repayments.

Securities Repurchase Program

From April 1, 2024 through July 29, 2024, the Company repurchased 1,397,966 of its common shares in the open market at an average price of $78.16 per share under the 2023 Securities Repurchase Program.

On July 29, 2024, the Company's Board of Directors replenished and increased the 2023 Securities Repurchase Program to purchase up to an aggregate of $400 million of the Company's securities which, in addition to its common shares also consist of its Senior Unsecured Notes Due 2025 (NYSE:SBBA). This program resets the program that was previously replenished on November 9, 2023.

There is $400 million available under the 2023 Securities Repurchase Program as of July 29, 2024.

Diluted Weighted Number of Shares

The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company's equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.

For the three and six months ended June 30, 2024, the Company's basic weighted average number of shares outstanding were 50,024,615 and 49,964,944, respectively. For the three and six months ended June 30, 2024, the Company's diluted weighted average number of shares outstanding were 52,354,175 and 52,237,114, respectively, which included the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan.

Conference Call

Title: Scorpio Tankers Inc. Second Quarter 2024 Conference Call

Date: Tuesday, July 30, 2024

Time: 9:00 AM Eastern Daylight Time and 3:00 PM Central European Summer Time

The conference call will be available over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com and the webcast link:

https://edge.media-server.com/mmc/p/uc4pks7s

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/CANADA Dial-In Number: 1-833-636-1321

International Dial-In Number: 1-412-902-4260

Please ask to join the Scorpio Tankers Inc. call.

Participants should dial into the call 10 minutes before the scheduled time.

Current Liquidity

As of July 29, 2024, the Company had $279.5 million in unrestricted cash and cash equivalents and $288.2 million of availability under the revolving portion of the 2023 $1.0 Billion Credit Facility. Within the next two weeks, the Company is expected to receive approximately $90 million from the Scorpio pools with respect to the monthly cash distribution for July 2024.

Debt

The following table sets forth the unscheduled debt and lease repayments that the Company completed during the second quarter of 2024.

Facility	Repayment date	Principal balance repaid (in millions)				Vessels
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
2023 $1.0 Billion Credit Facility	Jun-24		223.6		(1)
Total unscheduled repayments - Q2 2024		$	341.8
(1)   The amount represents the prepayment of eight quarters of term loan amortization. The next quarterly amortization payment will be due in the third quarter of 2026.

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 March 31, 2024		Outstanding Principal as of June 30, 2024		Outstanding Principal as of July 29, 2024
1	BNPP Sinosure Credit Facility (1)	$	69,667	$	64,212	$	64,212
2	2023 $225.0 Million Credit Facility (2)		191,100		182,625		174,150
3	2023 $49.1 Million Credit Facility		44,472		43,318		43,318
4	2023 $117.4 Million Credit Facility		104,638		100,386		100,386
5	2023 $1.0 Billion Credit Facility (3)		630,838		374,128		374,128
6	2023 $94.0 Million Credit Facility		90,491		88,075		86,751
7	Ocean Yield Lease Financing		24,624		23,871		23,610
8	2021 CMBFL Lease Financing (3)		15,795		—		—
9	2021 Ocean Yield Lease Financing		56,624		55,166		54,669
10	2022 AVIC Lease Financing (3)		102,344		—		—
11	Unsecured Senior Notes Due 2025		70,571		70,571		70,571
	Gross debt outstanding		1,401,164		1,002,352		991,795
	Cash and cash equivalents		369,504		224,649	279,545
	Net debt	$	1,031,660	$	777,703	$	712,250

⁽¹⁾   In July 2024, the Company submitted notice to repay the outstanding balance on its BNPP Sinosure Credit Facility. The outstanding balance on this facility is $64.2 million and the facility currently bears interest at SOFR plus a blended margin, (between the Commercial and Sinosure facilities) of 2.91% per annum which includes the credit adjustment spread that was agreed to upon the transition from LIBOR to SOFR. This facility is currently collateralized by five vessels (three LR2s and two Handymax). The prepayment is expected to occur in September 2024.

⁽²⁾   In July 2024, the Company reached an agreement with the lenders on its 2023 $225.0 Million Credit Facility to convert this credit facility from a term loan to a revolving credit facility. This amendment gives the Company the flexibility to make unscheduled repayments on this facility that can be re-drawn in the future. There is currently $174.2 million outstanding on this facility and under the proposed amendment, the outstanding and/or availability of the revolving credit facility is expected to amortize quarterly. This amendment is subject to the execution of definitive documentation and is expected to close in the third quarter of 2024.

⁽³⁾   Refer to the preceding table for a description of unscheduled payment activity that has recently occurred.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of June 30, 2024, which includes principal amounts due under the Company's secured credit facilities, lease financing arrangements and Senior Notes Due 2025 (which also include actual scheduled payments made from July 1, 2024 through July 29, 2024):

In millions of U.S. dollars		Repayments/ maturities of unsecured debt			Vessel financings - maturities in 2024 and 2025			Vessel financings - scheduled repayments, in addition to maturities in 2026 and thereafter			Total (1)			Prepayment of BNPP Sinosure Credit Facility(3)			Pro-forma repayments after prepayment of BNPP Sinosure Credit Facility
July 1, 2024 to July 29, 2024		$	—		$	—		$	10.6		$	10.6		$	—		$	10.6
Remaining Q3 2024			—			—			8.0			8.0			64.2			72.2
Q4 2024			—			—			24.0			24.0			(5.5	)		18.5
Q1 2025			—			—			18.5			18.5			—			18.5
Q2 2025			70.6			—			17.9			88.5			(3.3	)		85.2
Q3 2025			—			—			14.6			14.6			—			14.6
Q4 2025 (2)			—			55.4			14.7			70.1			(55.4	)		14.7
2026 and thereafter			—			—			768.1			768.1			—			768.1
		$	70.6		$	55.4		$	876.4		$	1,002.4		$	—		$	1,002.4

⁽¹⁾   Amounts represent the principal payments due on the Company's outstanding indebtedness as of June 30, 2024.

⁽²⁾   Includes the original scheduled maturity payment of $55.4 million on the BNPP Sinosure Credit Facility.

⁽³⁾   Reflects the July 2024 notice to prepay the BNPP Sinosure Credit Facility that is expected to occur before the end of the third quarter of 2024.

Drydock Update

Set forth below is a table summarizing the drydock activity that occurred during the second quarter of 2024 and the estimated expected payments to be made, and off-hire days that are expected to be incurred, for the Company's drydocks through 2024 and 2025:

			Number of (3)
	Aggregate costs in millions of USD (1)	Aggregate off- hire days (2)	LR2s	MRs	Handymax
Q2 2024 - actual	13.3	160	0	7	3
Q3 2024 - estimated	40.4	425	4	9	6
Q4 2024 - estimated	25.1	362	4	8	5
FY 2025 - estimated	29.4	420	10	11	0

⁽¹⁾   These costs include estimated cash payments for drydocks. These amounts may include costs incurred for previous projects for which payments may not be due until subsequent quarters, or payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual drydocks. The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks finalize.

⁽²⁾   Represents the total estimated off-hire days during the period for drydockings or major repairs, including vessels that commenced work in a previous period.

⁽³⁾   Represents the number of vessels scheduled to commence drydock. It does not include vessels that commenced work in prior periods but will be completed in the subsequent period. Additionally, the timing set forth in these tables may vary as drydock times are finalized.

Explanation of Variances on the Second Quarter of 2024 Financial Results Compared to the Second Quarter of 2023

For the three months ended June 30, 2024, the Company recorded net income of $227.3 million compared to net income of $132.4 million for the three months ended June 30, 2023. 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 June 30, 2024, and 2023:

			For the three months ended June 30,
In thousands of U.S. dollars				2024				2023
	Vessel revenue		$	380,660			$	329,299
	Voyage expenses			(7,187	)			(1,744	)
	TCE revenue		$	373,473			$	327,555

• TCE revenue for the three months ended June 30, 2024 increased by $45.9 million to $373.5 million, from $327.6 million for the three months ended June 30, 2023. Overall, the average daily TCE revenue increased to $38,813 per vessel during the three months ended June 30, 2024, from $32,154 per vessel during the three months ended June 30, 2023. The average number of vessels was 108.7 during the three months ended June 30, 2024 as compared to 113.0 during the three months ended June 30, 2023.
  • TCE revenue for the three months ended June 30, 2024 remained robust as the cyclical strength in the product tanker market, combined with the ton mile expansion triggered by recent geopolitical events, resulted in an increase in daily spot TCE rates across all of the Company's vessel classes. Daily spot TCE rates for the Company's LR2 vessels benefited from strong global distillate demand and increasing ton miles as vessels continue to be re-routed around the Cape of Good Hope due to conditions in the Red Sea. Daily spot TCE rates on the Company's Handymax and MR vessel classes saw a modest spill-over effect from the conditions in the Red Sea, with their performance primarily driven by seasonally high refinery utilization and export volumes, reflecting a year-over-year increase in the demand for refined petroleum products.
  • TCE revenue for the three months ended June 30, 2023 was robust despite a decline in daily TCE rates when compared to the same period in the prior year. The second quarter of 2022 reflected several key events and market conditions, which provided multiple catalysts simultaneously and resulted in a counter-seasonal spike in daily TCE rates. The second quarter of 2023 (particularly the latter half) reflected a more normalized seasonal pattern whereby extended refinery maintenance, lower refining margins and a reduction in arbitrage opportunities all led to reduced refinery throughput and decreased volumes from major export regions. Nevertheless, on a seasonally adjusted basis, demand for the Company's vessels remained resilient, driven by low inventory levels, a modest newbuilding orderbook, and growing underlying consumption for refined petroleum products.
• Vessel operating costs for the three months ended June 30, 2024, increased by $0.4 million to $79.3 million, from $78.9 million for the three months ended June 30, 2023. Overall, the average daily vessel operating costs increased to $8,017 per vessel for the three months ended June 30, 2024 from $7,669 per vessel for the three months ended June 30, 2023. The increase is concentrated within the LR2 segment which has been driven by higher repairs and maintenance costs, coupled with disruptions in trading patterns that have impacted the costs of sourcing and transporting spare parts.
• Depreciation expense – owned or sale leaseback vessels for the three months ended June 30, 2024, increased by $4.5 million to $46.7 million, from $42.2 million for the three months ended June 30, 2023. This increase was attributable to the exercise of purchase options on 21 lease financed vessels, which were previously accounted for under IFRS 16 – Leases throughout 2023 as reflected by the $8.5 million decrease in Depreciation expense - right of use assets for the three months ended June 30, 2024. The carrying values of these repurchased vessels were reclassified to Vessels and drydock from Right of use assets for vessels on the Company's balance sheet and depreciation expense is recorded as a part of owned vessels as of the dates of each purchase. The combined decrease in depreciation expense of $4.0 million was due to the ten vessels that were either classified as held for sale or sold since June 30, 2023.
• General and administrative expenses for the three months ended June 30, 2024, increased by $9.9 million to $37.1 million, from $27.2 million for the three months ended June 30, 2023 due to an increase in non-cash restricted stock amortization resulting primarily from grants made in the second quarter of 2024.   The stock price on the dates of the grants is used as the fair value for the accounting of the awards under IFRS. The awards granted to employees vest ratably in years three, four and five following the initial grant.
• Financial expenses for the three months ended June 30, 2024 decreased by $10.4 million to $33.3 million, from $43.7 million for the three months ended June 30, 2023. This decrease was primarily attributable to the overall reduction in interest expense on debt and sale leaseback arrangements due to the Company's focus on deleveraging. The Company's average indebtedness decreased to $1.3 billion during the three months ended June 30, 2024, as compared to $2.0 billion during the three months ended June 30, 2023. Additionally:
  • The Company recorded $4.4 million of debt extinguishment related costs during the three months ended June 30, 2024, as compared to $0.9 million during the three months ended June 30, 2023; and
  • The amortization of deferred financing fees and accretion increased to $2.7 million during the three months ended June 30, 2024, as compared to $1.7 million during the three months ended June 30, 2023, primarily due to the entrance into new credit facilities during 2023.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statements of Income (unaudited)
		For the three months ended June 30,								For the six months ended June 30,
In thousands of U.S. dollars except per share and share data			2024				2023				2024				2023
Revenue
	Vessel revenue	$	380,660			$	329,299			$	771,996			$	713,730
Operating expenses
	Vessel operating costs		(79,267	)			(78,858	)			(157,392	)			(152,532	)
	Voyage expenses		(7,187	)			(1,744	)			(8,762	)			(9,013	)
	Depreciation - owned or sale leaseback vessels		(46,677	)			(42,197	)			(94,587	)			(82,688	)
	Depreciation - right of use assets		—				(8,513	)			—				(18,003	)
	General and administrative expenses		(37,108	)			(27,209	)			(67,197	)			(49,480	)
	Gain on sales of vessels		43,325				—				54,655				—
	Total operating expenses		(126,914	)			(158,521	)			(273,283	)			(311,716	)
Operating income			253,746				170,778				498,713				402,014
Other (expenses) and income, net
	Financial expenses		(33,327	)			(43,720	)			(70,321	)			(87,252	)
	Financial income		5,528				4,359				10,118				8,544
	Share of income from dual fuel tanker joint venture		1,327				954				2,846				2,395
	Other income and (expenses), net		47				32				156				(63	)
	Total other expense, net		(26,425	)			(38,375	)			(57,201	)			(76,376	)
Net income		$	227,321			$	132,403			$	441,512			$	325,638
Earnings per share
	Basic	$	4.54			$	2.50			$	8.84			$	5.93
	Diluted	$	4.34			$	2.40			$	8.45			$	5.69
	Basic weighted average shares outstanding		50,024,615				53,040,031				49,964,944				54,926,939
	Diluted weighted average shares outstanding (1)		52,354,175				55,228,080				52,237,114				57,186,103

⁽¹⁾   The computation of diluted earnings per share for the three and six months ended June 30, 2024 and 2023, includes the effect of potentially dilutive unvested shares of restricted stock.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited)
	As of
In thousands of U.S. dollars	June 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	224,649			$	355,551
Accounts receivable		227,725				203,500
Prepaid expenses and other current assets		10,273				10,213
Inventories		7,872				7,816
Assets held for sale		146,513				—
Total current assets		617,032				577,080
Non-current assets
Vessels and drydock		3,311,114				3,577,935
Other assets		63,084				65,440
Goodwill		8,197				8,197
Total non-current assets		3,382,395				3,651,572
Total assets	$	3,999,427			$	4,228,652
Current liabilities
Current portion of long-term debt	$	138,773			$	220,965
Lease liability - sale and leaseback vessels		8,499				206,757
Accounts payable		13,831				10,004
Accrued expenses and other liabilities		70,397				72,678
Total current liabilities		231,500				510,404
Non-current liabilities
Long-term debt		765,871				939,188
Lease liability - sale and leaseback vessels		69,139				221,380
Other long-term liabilities		5,165				3,974
Total non-current liabilities		840,175				1,164,542
Total liabilities		1,071,675				1,674,946
Shareholders' equity
Issued, authorized and fully paid-in share capital:
Share capital		760				745
Additional paid-in capital		3,126,178				3,097,054
Treasury shares		(1,184,951	)			(1,131,225	)
Retained earnings		985,765				587,132
Total shareholders' equity		2,927,752				2,553,706
Total liabilities and shareholders' equity	$	3,999,427			$	4,228,652

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited)
	For the six months ended June 30,
In thousands of U.S. dollars		2024				2023
Operating activities
Net income	$	441,512			$	325,638
Depreciation - owned or sale leaseback vessels		94,587				82,688
Depreciation - right of use assets		—				18,003
Equity settled share based compensation expense		29,139				16,574
Amortization of deferred financing fees		5,700				2,548
Non-cash debt extinguishment costs		3,010				824
Net gain on sales of vessels		(54,655	)			—
Accretion of fair value measurement on debt assumed in business combinations		41				656
Share of income from dual fuel tanker joint venture		(2,846	)			(2,395	)
		516,488				444,536
Changes in assets and liabilities:
(Increase) / decrease in inventories		(56	)			7,114
(Increase) / decrease in accounts receivable		(22,225	)			75,132
(Increase) /decrease in prepaid expenses and other current assets		(60	)			7,492
Decrease in other assets		1,650				918
Increase / (decrease) in accounts payable		2,339				(16,497	)
Decrease in accrued expenses		(3,903	)			(17,346	)
		(22,255	)			56,813
Net cash inflow from operating activities		494,233				501,349
Investing activities
Net proceeds from sales of vessels		108,715				—
Distributions from dual fuel tanker joint venture		1,260				1,489
Investment in dual fuel tanker joint venture		(1,937	)			—
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, leased financed and bareboat-in vessels)		(23,876	)			(13,545	)
Net cash inflow / (outflow) from investing activities		84,162				(12,056	)
Financing activities
Debt repayments		(711,490	)			(260,950	)
Issuance of debt		99,000				391,482
Debt issuance costs		(202	)			(7,524	)
Principal repayments on lease liability - IFRS 16		—				(250,626	)
Dividends paid		(42,879	)			(25,678	)
Repurchase of common stock		(53,726	)			(398,944	)
Net cash outflow from financing activities		(709,297	)			(552,240	)
Decrease in cash and cash equivalents		(130,902	)			(62,947	)
Cash and cash equivalents at January 1,		355,551				376,870
Cash and cash equivalents at June 30,	$	224,649			$	313,923

        

Scorpio Tankers Inc. and Subsidiaries Other operating data for the three and six months ended June 30, 2024 and 2023 (unaudited)
		For the three months ended June 30,								For the six months ended June 30,
			2024				2023				2024				2023
Adjusted EBITDA(1) (in thousands of U.S. dollars except Fleet Data)		$	278,000			$	235,227			$	570,786			$	521,611
Average Daily Results
Fleet
TCE per revenue day (2)		$	38,813			$	32,154			$	39,241			$	34,810
Vessel operating costs per day (3)		$	8,017			$	7,669			$	7,879			$	7,458
Average number of vessels			108.7				113.0				109.8				113.0
LR2
TCE per revenue day (2)		$	47,156			$	39,526			$	48,906			$	41,395
Vessel operating costs per day (3)		$	8,984			$	8,070			$	8,768			$	7,785
Average number of vessels			39.0				39.0				39.0				39.0
MR
TCE per revenue day (2)		$	35,600			$	28,586			$	34,751			$	31,037
Vessel operating costs per day (3)		$	7,492			$	7,563			$	7,430			$	7,337
Average number of vessels			55.7				60.0				56.8				60.0
Handymax
TCE per revenue day (2)		$	28,011			$	26,784			$	30,245			$	32,534
Vessel operating costs per day (3)		$	7,406			$	7,064			$	7,216			$	7,083
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 U.S. dollars)		$	13,316			$	5,062			$	23,876			$	13,545

(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 July 30, 2024
	Vessel Name		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) (7)		MR		Yes
16	STI Ruby		2012		49,990		—		SMRP (2) (7)		MR		No
17	STI Onyx		2012		49,990		—		SMRP (2) (7)		MR		Yes
18	STI Beryl		2013		49,990		—		SMRP (2) (7)		MR		No
19	STI Duchessa		2014		49,990		—		Time Charter (5)		MR		No
20	STI Opera		2014		49,990		—		SMRP (2)		MR		No
21	STI Texas City		2014		49,990		—		SMRP (2)		MR		Yes
22	STI Meraux		2014		49,990		—		SMRP (2)		MR		Yes
23	STI San Antonio		2014		49,990		—		SMRP (2)		MR		Yes
24	STI Venere		2014		49,990		—		SMRP (2)		MR		Yes
25	STI Virtus		2014		49,990		—		SMRP (2)		MR		Yes
26	STI Aqua		2014		49,990		—		SMRP (2)		MR		Yes
27	STI Dama		2014		49,990		—		SMRP (2)		MR		Yes
28	STI Regina		2014		49,990		—		SMRP (2)		MR		Yes
29	STI St. Charles		2014		49,990		—		SMRP (2)		MR		Yes
30	STI Mayfair		2014		49,990		—		SMRP (2)		MR		Yes
31	STI Yorkville		2014		49,990		—		SMRP (2)		MR		Yes
32	STI Milwaukee		2014		49,990		—		SMRP (2)		MR		Yes
33	STI Battery		2014		49,990		—		SMRP (2)		MR		Yes
34	STI Soho		2014		49,990		—		SMRP (2)		MR		Yes
35	STI Memphis		2014		49,990		—		Time Charter (6)		MR		Yes
36	STI Gramercy		2015		49,990		—		SMRP (2)		MR		Yes
37	STI Bronx		2015		49,990		—		SMRP (2)		MR		Yes
38	STI Pontiac		2015		49,990		—		SMRP (2)		MR		Yes
39	STI Queens		2015		49,990		—		SMRP (2)		MR		Yes
40	STI Osceola		2015		49,990		—		SMRP (2)		MR		Yes
41	STI Notting Hill		2015		49,687		1B		SMRP (2)		MR		Yes
42	STI Seneca		2015		49,990		—		SMRP (2)		MR		Yes
43	STI Westminster		2015		49,687		1B		SMRP (2)		MR		Yes
44	STI Brooklyn		2015		49,990		—		SMRP (2)		MR		Yes
45	STI Black Hawk		2015		49,990		—		SMRP (2)		MR		Yes
46	STI Galata		2017		49,990		—		SMRP (2)		MR		Yes
47	STI Bosphorus		2017		49,990		—		SMRP (2)		MR		No
48	STI Leblon		2017		49,990		—		SMRP (2)		MR		Yes
49	STI La Boca		2017		49,990		—		SMRP (2)		MR		Yes
50	STI San Telmo		2017		49,990		1B		SMRP (2)		MR		No
51	STI Donald C Trauscht		2017		49,990		1B		SMRP (2)		MR		No
52	STI Esles II		2018		49,990		1B		SMRP (2)		MR		No
53	STI Jardins		2018		49,990		1B		SMRP (2)		MR		No
54	STI Magic		2019		50,000		—		SMRP (2)		MR		Yes
55	STI Mystery		2019		50,000		—		SMRP (2)		MR		Yes
56	STI Marvel		2019		50,000		—		SMRP (2)		MR		Yes
57	STI Magnetic		2019		50,000		—		Time Charter (8)		MR		Yes
58	STI Millennia		2019		50,000		—		SMRP (2)		MR		Yes
59	STI Magister		2019		50,000		—		SMRP (2)		MR		Yes
60	STI Mythic		2019		50,000		—		SMRP (2)		MR		Yes
61	STI Marshall		2019		50,000		—		Time Charter (9)		MR		Yes
62	STI Modest		2019		50,000		—		SMRP (2)		MR		Yes
63	STI Maverick		2019		50,000		—		SMRP (2)		MR		Yes
64	STI Miracle		2020		50,000		—		Time Charter (10)		MR		Yes
65	STI Maestro		2020		50,000		—		SMRP (2)		MR		Yes
66	STI Mighty		2020		50,000		—		SMRP (2)		MR		Yes
67	STI Maximus		2020		50,000		—		SMRP (2)		MR		Yes
68	STI Elysees		2014		109,999		—		SLR2P (3)		LR2		Yes
69	STI Madison		2014		109,999		—		SLR2P (3)		LR2		Yes
70	STI Park		2014		109,999		—		SLR2P (3)		LR2		Yes
71	STI Orchard		2014		109,999		—		SLR2P (3)		LR2		Yes
72	STI Sloane		2014		109,999		—		SLR2P (3)		LR2		Yes
73	STI Broadway		2014		109,999		—		SLR2P (3)		LR2		Yes
74	STI Condotti		2014		109,999		—		SLR2P (3)		LR2		Yes
75	STI Rose		2015		109,999		—		SLR2P (3)		LR2		Yes
76	STI Veneto		2015		109,999		—		SLR2P (3)		LR2		Yes
77	STI Alexis		2015		109,999		—		MPL (4)		LR2		Yes
78	STI Winnie		2015		109,999		—		SLR2P (3)		LR2		Yes
79	STI Oxford		2015		109,999		—		SLR2P (3)		LR2		Yes
80	STI Lauren		2015		109,999		—		SLR2P (3)		LR2		Yes
81	STI Connaught		2015		109,999		—		Time Charter (11)		LR2		Yes
82	STI Spiga		2015		109,999		—		MPL (4)		LR2		Yes
83	STI Kingsway		2015		109,999		—		SLR2P (3)		LR2		Yes
84	STI Solidarity		2015		109,999		—		SLR2P (3)		LR2		Yes
85	STI Lombard		2015		109,999		—		Time Charter (12)		LR2		Yes
86	STI Grace		2016		109,999		—		Time Charter (13)		LR2		Yes
87	STI Jermyn		2016		109,999		—		Time Charter (14)		LR2		Yes
88	STI Sanctity		2016		109,999		—		SLR2P (3)		LR2		Yes
89	STI Solace		2016		109,999		—		SLR2P (3)		LR2		Yes
90	STI Stability		2016		109,999		—		SLR2P (3)		LR2		Yes
91	STI Steadfast		2016		109,999		—		SLR2P (3)		LR2		Yes
92	STI Supreme		2016		109,999		—		SLR2P (3)		LR2		Yes
93	STI Symphony		2016		109,999		—		SLR2P (3)		LR2		Yes
94	STI Gallantry		2016		113,000		—		SLR2P (3)		LR2		Yes
95	STI Goal		2016		113,000		—		SLR2P (3)		LR2		Yes
96	STI Guard		2016		113,000		—		Time Charter (15)		LR2		Yes
97	STI Guide		2016		113,000		—		Time Charter (16)		LR2		Yes
98	STI Selatar		2017		109,999		—		SLR2P (3)		LR2		Yes
99	STI Rambla		2017		109,999		—		SLR2P (3)		LR2		Yes
100	STI Gauntlet		2017		113,000		—		Time Charter (17)		LR2		Yes
101	STI Gladiator		2017		113,000		—		Time Charter (16)		LR2		Yes
102	STI Gratitude		2017		113,000		—		Time Charter (18)		LR2		Yes
103	STI Lobelia		2019		110,000		—		SLR2P (3)		LR2		Yes
104	STI Lotus		2019		110,000		—		SLR2P (3)		LR2		Yes
105	STI Lily		2019		110,000		—		SLR2P (3)		LR2		Yes
106	STI Lavender		2019		110,000		—		Time Charter (19)		LR2		Yes
	Total Fleet DWT				7,502,252

(1)		This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is operated by Scorpio Commercial Management S.A.M. (SCM). SHTP and SCM are related parties to the Company.
(2)		This vessel operates in the Scorpio MR Pool, or SMRP. SMRP is operated by SCM. SMRP and SCM are related parties to the Company.
(3)		This vessel operates in the Scorpio LR2 Pool, or SLR2P. SLR2P is operated by SCM. SLR2P and SCM are related parties to the Company.
(4)		This vessel operates in the Mercury Pool Limited, or MPL. MPL is operated by SCM. MPL and SCM are related parties to the Company.
(5)		This vessel commenced a time charter in October 2022 for three years at an average rate of $25,000 per day.
(6)		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 six 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.
(7)		The Company has entered into an agreement to sell this vessel which is expected to close in the third quarter of 2024.
(8)		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.
(9)		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.
(10)		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 six 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.
(11)		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.
(12)		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.
(13)		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.
(14)		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.
(15)		This vessel commenced a time charter in July 2022 for five years at a rate of $28,000 per day.
(16)		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.
(17)		This vessel commenced a time charter in November 2022 for three years at an average rate of $32,750 per day.
(18)		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.
(19)		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 2023 and 2024 were as follows:

Date paid	Dividend per common share
March 2023	$0.20
June 2023	$0.25
September 2023	$0.25
December 2023	$0.35
March 2024	$0.40
June 2024	$0.40

On July 29, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per common share, with a payment date of September 13, 2024 to all shareholders of record as of August 15, 2024 (the record date). As of July 29, 2024, there were 53,175,099 common shares of the Company outstanding.

Conflict in Ukraine and Middle East

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, United Kingdom, and the European Union, among other countries, 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 and refined petroleum products from Russia to the United States, United Kingdom or the European Union, and a prohibition on a variety of specified services related to the maritime transport of Russian Federation origin crude oil and petroleum products, including trading/commodities brokering, financing, shipping, insurance (including reinsurance and protection and indemnity), flagging, and customs brokering, which took effect in December 2022 and February 2023 respectively. An exception exists to permit such services when the price of the seaborne Russian oil does not exceed the relevant price cap; but implementation of this price exception relies on a recordkeeping and attestation process that requires each party in the supply chain of seaborne Russian oil to demonstrate or confirm that oil has been purchased at or below the price cap. 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 while thus far the impact has been favorable, it is possible that the current conflict in Ukraine could adversely affect the Company's financial condition, results of operations, and future performance.

Additionally, since December 2023, there have been multiple drone and missile attacks on commercial vessels transiting international waters in the southern Red Sea by groups believed to be affiliated with the Yemen-based Houthi rebel group purportedly in response to the ongoing military conflict between Israel and Hamas. Recent attacks on U.S. military installations in Jordan and other locations in the middle east, the continuing military actions by the U.S. government and certain of its allies against the Houthi rebel group, which the U.S. government believes to be supported by the government of Iran, and the ongoing military conflict between Israel and Hamas continue to threaten the political stability of the region and may lead to further military conflicts, including continued hostile actions towards commercial shipping in the region. We cannot predict the severity or length of the current conditions impacting international shipping in this region and the continuing disruption of the trade routes in the region of the Red Sea. While thus far the impact of these events has been favorable to the demand for our vessels, it is also possible that it could have a material and adverse impact on our results of operations in the future.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns or lease finances 106 product tankers (39 LR2 tankers, 53 MR tankers and 14 Handymax tankers) with an average age of 8.4 years. The Company has entered into agreements to sell four of its MR tankers, which are expected to close in the third quarter of 2024. Additional information about the Company is available at the Company's website www.scorpiotankers.com. Information on the Company's website does not constitute a part of and is not incorporated by reference into 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 Second Quarter of 2024 Financial Results Compared to the Second Quarter of 2023". 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 June 30, 2024
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net income		$	227,321			$	4.54			$	4.34
	Adjustments:
	Write-offs of deferred financing fees and debt extinguishment costs			4,380				0.09				0.08
	Gain on sales of vessels			(43,325	)			(0.87	)			(0.83	)
	Adjusted net income		$	188,376			$	3.77		(1)	$	3.60		(1)

⁽¹⁾ Summation difference due to rounding

			For the three months ended June 30, 2023
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net income		$	132,403			$	2.50			$	2.40
	Adjustment:
	Write-offs of deferred financing fees and debt extinguishment costs			939				0.02				0.02
	Adjusted net income		$	133,342			$	2.51		(1)	$	2.41		(1)

⁽¹⁾ Summation difference due to rounding

			For the six months ended June 30, 2024
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net income		$	441,512			$	8.84			$	8.45
	Adjustments:
	Write-offs of deferred financing fees and debt extinguishment costs			8,072				0.16				0.15
	Gain on sales of vessels			(54,655	)			(1.09	)			(1.05	)
	Adjusted net income		$	394,929			$	7.90		(1)	$	7.56		(1)

⁽¹⁾ Summation difference due to rounding

			For the six months ended June 30, 2023
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net income		$	325,638			$	5.93			$	5.69
	Adjustment:
	Write-offs of deferred financing fees and debt extinguishment costs			3,254				0.06				0.06
	Adjusted net income		$	328,892			$	5.99			$	5.75

Reconciliation of Net Income to Adjusted EBITDA

			For the three months ended June 30,								For the six months ended June 30,
In thousands of U.S. dollars				2024				2023				2024				2023
	Net Income		$	227,321			$	132,403			$	441,512			$	325,638
	Financial expenses			33,327				43,720				70,321				87,252
	Financial income			(5,528	)			(4,359	)			(10,118	)			(8,544	)
	Depreciation - owned or lease financed vessels			46,677				42,197				94,587				82,688
	Depreciation - right of use assets			—				8,513				—				18,003
	Equity settled share based compensation expense			19,528				12,753				29,139				16,574
	Gain on sales of vessels			(43,325	)			—				(54,655	)			—
	Adjusted EBITDA		$	278,000			$	235,227			$	570,786			$	521,611

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 Ukraine and the developments in the Middle East, including the armed conflict between Israel and Hamas, 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: [email protected]