Monaco - Jan 27, 2022
Agreements to Sell 14 Vessels and Update on Financings
The Company has entered into agreements to sell two MRs (2013 built STI Fontvieille and 2019 built STI Majestic) and 12 LR1s.
The sale prices of STI Fontvieille, STI Majestic, and the 12 LR1s are $23.5 million, $34.9 million, and $413.8 million, respectively.
The Company is expected to raise additional liquidity of approximately $189 million from these transactions, which are expected to close in the first and second quarters of 2022.
Separately, the Company is in discussions with a financial institution to further increase its liquidity by up to $27.0 million in connection with the refinancing of four vessels, which along with the aforementioned vessel sales are expected to increase the Company’s liquidity by approximately $216 million.
Using the latest publicly reported cash balance of $228.9 million on November 10, 2021 (reported in the November 11, 2021 press release), and adding (i) the additional liquidity raised on all of the financing transactions that have closed (see December 13, 2021 press release), (ii) the additional liquidity that is expected to be raised from financing transactions that are in discussions, and (iii) the liquidity from the sale of the 14 vessels, the Company’s pro forma liquidity is $477.9 million.
Pro forma liquidity (amounts in millions):
"After the scheduled sale of the vessels, we have limited debt maturities in 2022, the convertible bonds for $69.7 million, which we are preparing to pay off with cash, and one credit facility for $16.9 million, which we plan on refinancing."
Fourth Quarter of 2021 Daily Time Charter Equivalent (“TCE”) Revenues
Below are the estimated fourth quarter of 2021 daily TCE revenues. The amounts are subject to change as the Company has not finalized its results for the fourth quarter of 2021.
(1) TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns, finance leases or bareboat charters-in 131 product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and 14 Handymax tankers) with an average age of 6.0 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.
Scorpio Tankers Inc. press release