Noble Conference Presentation - Scorpio Tankers · 1) JODI 2) STIFEL 3) EIA 4) IEA MTOM Report,...

34
1 1 Noble Conference Presentation January 29, 2018

Transcript of Noble Conference Presentation - Scorpio Tankers · 1) JODI 2) STIFEL 3) EIA 4) IEA MTOM Report,...

Page 1: Noble Conference Presentation - Scorpio Tankers · 1) JODI 2) STIFEL 3) EIA 4) IEA MTOM Report, 2017 Increasing Ton Mile Demand and Seaborne Exports Since 2000 seaborne product ton

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Noble Conference Presentation

January 29, 2018

Page 2: Noble Conference Presentation - Scorpio Tankers · 1) JODI 2) STIFEL 3) EIA 4) IEA MTOM Report, 2017 Increasing Ton Mile Demand and Seaborne Exports Since 2000 seaborne product ton

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This document may contain forward-looking statements that reflects management’s expectations for the future. 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," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential,"

"may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn,

upon further assumptions, including without limitation, our management's examination of historical operating trends, data

contained in our records and other data available from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or

accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially

from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts

with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and

vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices,

drydocking and insurance costs, the market for our 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, potential disruption of shipping routes due to accidents or political events,

vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange

Commission for a more complete discussion of these and other risks and uncertainties.

Safe Harbor Statement

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Company Overview

Scorpio Tankers Inc. is the world’s largest and

youngest product tanker company

• Pure product tanker play offering all asset classes

• 109 owned ECO product tankers on the

water with an average age of 2.5 years

• 19 time/bareboat charters-in vessels

• NYSE-compliant governance and transparency,

listed under the ticker “STNG”

• Headquartered in Monaco, incorporated in the

Marshall Islands and is not subject to US income

tax

• Vessels employed in well-established Scorpio

pools with a track record of outperforming the

market

• Merged with Navig8 Product Tankers, acquiring 27

ECO-spec product tankers

Fleet ProfileKey Facts

14

45

12

389

9

1

0

10

20

30

40

50

60

Handymax MR LR1 LR2

Owned TC/BB Chartered-In

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Company Profile

Market Cap ($m)

Liquidity Per Day ($m pd)

Top Shareholders

12 Month Share Performance

Source: Fearnleys January 22, 2018

$2

$3

$4

$5

$6

# Holder Ownership

1 Wellington Management Company 5.3%

2 Dimensional Fund Advisors 5.2%

3 Fidelity Management & Research Company 3.4%

4 Monarch Alternative Capital 2.9%

5 BlackRock Fund Advisors 2.7%

6 Magallanes Value Investors 2.7%

7 Hosking Partners 2.5%

8 Solus Alternative Asset Management 2.2%

9 Avenue Capital Management II 1.7%

10 Nuveen Asset Management 1.7%$0

$200

$400

$600

$800

$1,000

$1,200

Euronav ScorpioTankers

Frontline DHT Gener8 NAT Ardmore

$0

$2

$4

$6

$8

$10

$12

ScorpioTankers

NAT Euronav Frontline Gener8 DHT Ardmore

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Largest & Youngest Product Tanker Fleet

Scorpio Average Age vs. Worldwide FleetLargest & Youngest Product Tanker Fleet

Figures do not include newbuilding vessels on order.

Source: Clarksons Research Services, January 2018

Avg. Age of Vessels

(Owned Fleet Only)

3.33.0

1.7

2.2

12.9

9.3 9.5

8.0

0

2

4

6

8

10

12

14

Handymax MR LR1 LR2

Scorpio Tankers

Active Fleet

59 60

34 3441 42

12 7

11 114

38

8

11 1114 6

109

75

56 56 5552

2.3

11.69.4 7.8 9.4

4.00

20

40

60

80

100

120

140

ScorpioTankers

TORM ChinaCOSCOShipping

SCF Group A.P. Moller SinokorMerchant

HM & MR LR1 LR2

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Scorpio Pools Provide World’s Largest Operating Platform

Figures do not include newbuilding vessels on order.

Source: Company Websites & Vessel Values, January 2018

Top Product Tanker Operators Top LR1 & LR2 OperatorsTop HM & MR Operators

• Scorpio’s trading platform operates the largest product tanker fleet in the market with over 160 vessels under commercial management

160

121

91

52

0

20

40

60

80

100

120

140

160

180

Scorpio MaerskTankers

Norient Strait Tankers

109 109

91

37

0

20

40

60

80

100

120

Scorpio MaerskTankers

Norient Hafnia

5251

2826

0

10

20

30

40

50

60

StraitTankers

Scorpio Navig8 Prime

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Scorpio Pools Have Consistently Outperformed Market

Performance ($/day)Pool

Scorpio

Handymax Tanker

Pool (SHTP)

Scorpio MR

Tanker Pool

(SMRP)

Scorpio LR2

Tanker Pool

(SLR2P)

$0

$10,000

$20,000

$30,000

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Scorpio MR Clarksons MR

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Scorpio LR2 LR2 Benchmark (AG/EAST - AG/WEST - UKC/EAST)

$0

$10,000

$20,000

$30,000

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17

Scorpio Handymax Pool Handymax Benchmark (TD16 - TD18 - TC6 - BALTIC/CONT)

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Significant Operating Leverage to a Market Recovery

• Only taking into consideration the Company’s 109 owned vessels, a $1,000/day change in rates equates to $39.7 million

in annualized cash flow or $0.12/share

• Applying the actual TCE rates earned by the Company in 2015 to its larger fleet today, the company would generate

$978 million in revenue or $3.10/share

The one year time charter rate “TC rate” is the rate paid per day to contract a vessel out for one year, and the time charter equivalent rate (“TCE”) which is the earnings per day for a vessel operating in the spot

market.

Source: Clarksons Research Services

2015A Rates Annualized Revenue

Class # of Vessels Days/Yr Total Days ($/day) (Millions $USD)

HM 14 365 5,110 $19,686 $101

MR 45 365 16,425 $21,803 $358

LR1 12 365 4,380 $21,804 $96

LR2 38 365 13,870 $30,544 $424

109 39,785 Total Revenue $978

Historical One Year TC Rates ($/day): 2003-2017

Class Min Avg Max

HM $11,430 $16,204 $24,683

MR $13,160 $17,784 $27,000

LR1 $12,995 $20,937 $31,904

LR2 $14,391 $23,615 $35,950

Implied Revenue from Historical TC Rates

$531

$794

$1,208

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Min Avg Max

Page 9: Noble Conference Presentation - Scorpio Tankers · 1) JODI 2) STIFEL 3) EIA 4) IEA MTOM Report, 2017 Increasing Ton Mile Demand and Seaborne Exports Since 2000 seaborne product ton

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One Year Time Charter Rates

Source: Clarksons Research Services, January 2018

$/d

ay

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17

HM MR LR1 LR2

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Reduction in European Diesel Inventories

36.1

25.8

21.6

15

20

25

30

35

40

5 Yr AvgARA gasoil inventory has

declined 19.3% yoy and

39.6% since their 2015 peak

ARA - “Amsterdam,, Rotterdam, Antwerp”

Sources: Bloomberg

Mill

ion b

arr

els

As inventories continue to fall, consumption will have to be met by imports rather than being subsidized by inventory draw down

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Asset Values Starting to Recover

Resale Values

Source: Clarksons Research Services, January 2018

Mill

ion $

US

D

$25

$30

$35

$40

$45

$50

$55

$60

$65

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

HM MR LR1 LR2

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Ballast Water Treatment Systems

• In July 2017, the IMO extended ballast water treatment until

the first statutory dry docking survey after 2019.

• Ship operators will need to install type-approved ballast water

treatment systems by the time the International Oil Pollution

Prevention (IOPP) certificate falls due for renewal, typically at

Special Survey.

• Ballast water is used to stabilize vessels and ensure structural

integrity. It is typically pumped in while cargo is being

unloaded, and discharged while cargo is being loaded.

• Water taken on in one ecological zone and released into

another can result in the introduction and spread of aquatic

invasive species, many of which can have serious ecological,

economic and public health effects if transferred to regions

where they are not native

• Ballast water treatment systems actively remove, kill and/or

inactivate organisms in the ballast water prior to discharge.

• Ballast water treatment systems are expected to cost

$500,000 to $1.5 million and depends on the type and size of

vessel.

• Retrofits on older, existing ships, can be more challenging

and expensive as they were designed without the space in

the engine room.

BWTS Filtering Unit

BWTS Piping in Engine Room

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Sulfur Emission Regulations

(1) STIFEL Equity Research

(2) International Maritime Organization

(3) Clarksons Research Services/Ocean Connect January, 2018

MARPOL Annex VI SOx Emission Timeline (2)

• On October 27, 2016 the International Maritime Organization's (IMO) Marine Environmental Protection Committee announced the results from a vote to ratify and formalize regulations mandating a reduction in sulfur emissions from 3.5% currently to 0.5% as of the beginning of 2020.

• Ship owners will have to decide between:

1. Installing a scrubber so the vessel can continue to burn HFSO; or

2. Paying the premium to consume MGO with a sulfur content < 0.5%

• Scrubbers can cost $3-$10 million to install depending on the size of the ship. (1)

• Modern fuel efficient ships have a competitive advantage over older tonnage through lower fuel consumption.

• Increase in scrap rate as the cost to equip older tonnage with scrubbers can exceed the scrap value of the vessel.

Historical FO & MGO Prices ($/MT) (3)

$0

$200

$400

$600

$800

$1,000

$1,200

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Rotterdam Singapore Houston

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Long Term Developments

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Fundamentals Overview

1) JODI

2) STIFEL

3) EIA

4) IEA MTOM Report, 2017

Increasing Ton Mile Demand and

Seaborne Exports ✓Since 2000 seaborne product ton miles have increased at a

CAGR of 4.2%

Increasing Exports to Brazil and

Australia ✓Since 2013 gasoline and diesel imports to Brazil and Australia

have increased 55% and 123%, respectively(1)

Demand to Outpace Supply in 2018 ✓Demand is expected to grow 4.6% vs supply growth of 2.4% in

2018

Potential for Accelerated Scrapping ✓Environmental regulations and high scrap prices likely to

increase scrapping of older tonnage

US Exports Continue to Grow ✓ U.S. refined product exports have averaged 4.8 mb/d in 2017(3)

Middle Eastern Refining Capacity

Expansions ✓Middle East is expected to add 1.5 mb/d in refining capacity

from 2018-2021(4)

Increasing Regional Product

Imbalances ✓

Increasing regional product imbalances and lack of refinery

capacity expansions in Latin America & Africa drive ton mile

demand

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

Ton Mile Demand Continues to Grow

Sources: Clarksons Research Services,

Bill

ion T

on M

iles

Seaborne Product Ton Miles

• Ton miles, the quantity of cargo multiplied by the distance it travels, has increased at a CAGR of 4.2% since 2000

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Ton Mile Demand Drivers

Brazil Diesel & Gasoline Imports (kb/d) Australia Diesel & Gasoline Imports (kb/d)

Sources: JODI

227243

292 301

336

64

69

119 110

115

291

313

411 411

451

0

100

200

300

400

500

2013 2014 2015 2016 2017

Diesel Gasoline

146

179

119146

232

68

205

216

202

245

214

384

335348

477

0

100

200

300

400

500

2013 2014 2015 2016 2017

Diesel Gasoline

Imports of 451,000 and 477,000 b/d is equivalent to 45 and 48 MR voyages per month

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Seaborne Refined Product Exports

Since 2000, there has only been one year in which seaborne exports of refined products has not increased year over year (2001)

2000 2016 % Change CAGR

mb/d mb/d

Global Oil

Demand76.9 96.6 25% 1.4%

Seaborne Crude

Exports33.7 39.3 17% 1.0%

Seaborne

Refined Product

Exports

12.2 23.0 89% 4.1%

10.0

15.0

20.0

25.0

30.0

35.0

40.0

70.0

80.0

90.0

100.0

Sources: Clarksons Research Services, BP and IEA

Seaborne Exports of Refined Products

Seaborne Crude Exports

Global Oil Demand

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Demand to Outpace Supply Growth in 2018

STIFEL estimates assume scrapping and slippage.

Source: STIFEL, January 2018

3.9%

5.8%6.1%

4.4%

2.4%

2.8%

8.5%

11.0%

5.2%

2.8%

4.6% 5.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2014 2015 2016 2017E 2018E 2019E

Net Fleet Growth Demand Growth

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MR’s Turning 15 vs Newbuild Deliveries

Assumes newbuildings are delivered as scheduled.

Source: Clarksons Research Services, January 2018

For the first time more MR’s will turn 15 years old than are delivered

-29

-19 -16

-35

-56

-87-79

78

10093

5753

61

10

2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0

MR's Turning 15 Years Old MR NB Deliveries

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Fleet Age Profile & Scrap Prices

Fleet Age Profile

Includes Product Tankers 10K to 120K DWT

Source: Clarksons Research Services, January 2018

33%

13%

27%

12%

39%

42%

33%

20%

18%

39% 27%

38%

8%4%

8%

19%

3%1%

6%12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LR2 LR1 MR Handymax

0-4 5-9 10-14 15-19 20+

Environmental regulations and attractive scrap prices likely to

increase scrapping of older tonnage

$230

$445

200

250

300

350

400

450

500

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18

($/ld

t)

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US Remains Worlds Largest Product Exporter

Source: EIA, January 2018

2017 YTD Diesel Exports By Country

U.S. Crude Oil Production

U.S. Diesel Exports

U.S. Imports and Exports of Finished Oil Products

(mb/d) (mb/d)

(mb/d)

Mexico17%

Brazil15%

Netherlands7%

Chile7%Peru

5%

France5%

Guatemala4%

Panama3%

Argentina3%

UK3%

Other31%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Imports Exports

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

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Middle Eastern Refinery Expansions Continue

Source: BP Statistical Review; IEA Medium Term Report

2.12.5

2.9 2.9 2.9 2.9 2.93.3 3.3 3.3

0.70.7

1.1 1.1 1.1 1.1 1.11.1 1.1 1.12.0

2.0

2.0 2.0 2.0 2.2 2.2

2.3 2.3 2.3

3.53.2

3.3 3.3 3.43.3 3.4

3.4 3.84.4

8.2 8.4

9.3 9.3 9.5 9.6 9.7

10.310.6

11.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(mb

/d)

Saudi Arabia United Arab Emirates Iran Other Middle East

Middle East expected to add 1.5 mb/d from 2018-2021

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Saudi Aramco Increasing Product Exports

Saudi Aramco Refined Products Exports

Million Barrels

Saudi Aramco Exports by Region

3.5 11.4

78.3 74.8

15.8 21.8

80.0

114.4

28.135.2

96.2

136.5

0

20

40

60

80

100

120

140

Mediterranean Northwest Europe Asia Other

2014 2015 2016

121

168

232

296

100

150

200

250

300

350

2013 2014 2015 2016

Source: Saudi Aramco Annual Report

• Saudi Aramco refined product exports have increased 144% since 2013

• 800 kb/d of refining capacity added in 2014 from export oriented refineries (Yanbu and Jubail)

• Additional 400 kb/d refining capacity expected to come online in 2018/2019 from Jazan refinery

Million Barrels

Saudi Aramco Domestic Refining Capacity

Operational Refinery Capacity (kb/d)

1967 Jiddah 77

1979 Yanbu 243

1981 Riyadh 126

1983 SAMREF – Yanbu 400

1986 SASREF - Jubail 305

1986 Ras Tanura 550

1990 Petro Rabigh 400

2014 YASREF - Yanbu 400

2014 SATORP - Jubail 400

Current Domestic Capacity 2,901

2018/2019 Jazan 400

Total Domestic Capacity 3,301

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Regional Imbalances Drive Product Tanker Demand Growth

-520 -490

9001,200

50200

(k.bpd)

1,000 1,000

-1,720-1,730

200 200

800700

1,1001,200

800

400

700

1,300

700

1,200

-510-260

-340-240

-650-550

60200

-290 -300

-1,040-940

-40

0

-1,180

-1,720

700

-340

-1,030-670

Americas

Latin AmericaAfrica

Middle East

EuropeFSU

Asia

(1) Source: International Energy Agency (IEA) 2017

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Refinery Capacity Expansions (2017-2022)

Source: International Energy Agency (IEA)

North America

+ 233 kb/d

Africa

+ 650 kb/d

Middle East

+ 1,905 kb/d

Europe

+ 200 kb/d

FSU

+ 263 kb/d

Asia

+ 1,482 kb/d

South America

+ 73 kb/d

China

+ 2,200

kb/d

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Far East

AG-Far East trade route

Arabian Gulf

Product Tankers Needed to Meet New Capacity

Growth AG-FE Illustrative Example

Incremental Refining Capacity

Growth(bbl/d)500,000

HM/MR Carrying Capacity (bbl) 250,000

LR1/LR2 Carrying Capacity (bbl) 600,000

Laden Speed (knots) 12.5

Ballast Speed (knots) 12.5

Voyage Days (Ras Tanura – Yokohama)

Sailing (Round Trip) 44

Loading 2

Discharging 2

Total Voyage Days (Per Trip) 48

Operating Days (Per Year) 360

AG-FE Round Trip Voyages Per Year 7.5

Product Tankers Needed Per Year

HM/MR Needed Per Year 96

LR1/LR2 Needed Per Year 40

Note: Operating assumptions are based upon industry standards.

Incremental Supply Needed to Meet New Capacity

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Company Highlights

Modern, fuel-

efficient fleet

World’s largest product tanker fleet, of which, all are ECO-design product tankers

ECO-design vessels have substantially lower fuel costs than prior generation vessels

World’s youngest fleet (average age of 2.5 years), built at high quality yards.

Tremendous

operating

leverage

STNG currently operates a fleet of 109 wholly owned tankers and time/bareboat charters-in

an additional 19 tankers

Vessels employed in Scorpio commercial pools that have historically outperformed the market

Short term drivers

support market

inflection point

As global refined product inventories continue to fall, consumption will have to be met by

imports rather than inventory draw down

Increasing ton mile demand driven by Brazil and Australia

Product tanker demand is expected to grow 4.6% vs supply growth of 2.4% in 2018

Positive long term

market

fundamentals

Remaining orderbook provides favourable supply / demand balance

Refinery capacity expansions move closer to the well head, increasing ton mile demand, i.e.

Middle East expected to add 1.5 mb/d in refining capacity compared to 73 kb/d in Latin

America between 2018-2021 (3)

1

2

3

4

(1) Bloomberg

(2) Clarksons December 2017

(3) IEA Medium Term Oil Market Report 2017

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Appendix

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Product Tankers in the Oil Supply Chain

Oil production includes drilling, extraction, and recovery of oil from underground.

Crude oil is transported to the refinery for processing by crude tankers, rail cars, and pipelines.

Refineries convert the crude oil into a wide range of consumable products.

Refined products are moved from the refinery to the end users via product tankers, railcars, pipelines and trucks.

Terminals are located closer to transportation hubs and are the final staging point for the refined fuel before the point of sale.

Products

TransportationTerminalling &

Distribution

Exploration &

ProductionCrude Transportation Refining

• Crude Tankers provide the marine transportation of the crude oil to the refineries.

• Product Tankers provide the marine transportation of the refined products to areas of demand.

• Structural demand drivers in the product tanker industry:

• US has emerged as a refined products powerhouse, becoming the worlds largest product exporter

• Changes in refinery locations, expansion of refining capacity in Asia and Middle East as well as a reduction in OECD refiningcapacity (Europe & Australia).

• Changes in consumption demand growth in Latin America, Africa, and non-China/Japan Asia and lack of corresponding growth in refining capacity

• Balance of trade: needs of each particular region- gasoline/diesel trade between U.S./Europe is a prime example of this given significantly different diesel penetration rates for light vehicles

• Europe imports surplus diesel from the United States, and exports surplus gasoline to the United States.

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Product and Crude Tankers

Vessel

Size

Cargo

Size

Naphtha

Clean Condensate

Jet Fuels

Kerosene

Gasoline

Vegoil

Gasoils

Diesels

Cycle Oils

Fuel Oils

Chemicals

Clean

Products

-

-

-

-

-

Dirty

Products

Crude Oil

VLCC

(200,000 +

DWT)

Suezmax

(120,000 -

200,000 DWT)

Aframax

(80,000 -

120,000 DWT)

Panamax

(60,000 -

80,000 DWT)

Handysize

(< 60,000

DWT)

LR2

(80,000-

120,000 DWT)

LR1

(60,000-

80,000 DWT)

Hmx/MR

(25,000-

60,000 DWT)

Handysize

(<25,000

DWT)

Crude Products

“Dirty” “Clean”Tankers

2,000,000

bbls

1,000,000

bbls

500,000-

800,000 bbls

350,000-

500,000 bbls<=350,000

bbls

615,000-

800,000 bbls

345,000-

615,000 bbls

200,000-

345,000 bbls

<=200,000

bbls

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Product Tanker Specifications

• Product tankers have coated tanks, typically epoxy, making them easy to clean and preventing

cargo contamination and hull corrosion.

• IMO II & III tankers have at least 6 segregations and 12 tanks, i.e. 2 tanks can have a common line

for discharge.

• Oil majors and traders have strict requirements for the transportation of chemicals, FOSFA cargoes

(vegetable oils and chemicals), and refined products.

• Tanks must be completely cleaned before a new product is loaded to prevent contamination.

IMO Class I Chemical

TankersIMO Class I refers to the transportation of the most hazardous,

very acidic, chemicals. The tanks can be stainless steel, epoxy or

marine-line coated.

IMO Class II Chemical &

Product Tankers IMO Class II carries Veg & Palm Oils, Caustic Soda. These tanks

tend to be coated with Epoxy or Stainless steel.

IMO Class III Product TankersTypically carry refined either light, refined oil “clean” products or

“dirty” heavy crude or refined oils.

IMO Classes I, II, & III

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New Design Features on Scorpio Product Tankers

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Fleet List

Owned Vessels

Name Year DWT Type Name Year DWT Type Name Year DWT Type

STI Comandante May-14 38,734 HM STI Soho Dec-14 49,990 MR STI Broadway Nov-14 109,999 LR2

STI Brixton Jun-14 38,734 HM STI Tribeca Jan-15 49,990 MR STI Condotti Nov-14 109,999 LR2

STI Pimlico Jul-14 38,734 HM STI Gramercy Jan-15 49,990 MR STI Rose Jan-15 109,999 LR2

STI Hackney Aug-14 38,734 HM STI Bronx Feb-15 49,990 MR STI Veneto Jan-15 109,999 LR2

STI Acton Sep-14 38,734 HM STI Pontiac Mar-15 49,990 MR STI Alexis Jan-15 109,999 LR2

STI Fulham Sep-14 38,734 HM STI Manhattan Mar-15 49,990 MR STI Winnie Mar-15 109,999 LR2

STI Camden Sep-14 38,734 HM STI Queens Apr-15 49,990 MR STI Oxford Apr-15 109,999 LR2

STI Battersea Oct-14 38,734 HM STI Osceola Apr-15 49,990 MR STI Lauren Apr-15 109,999 LR2

STI Wembley Oct-14 38,734 HM STI Notting Hill May-15 49,687 MR STI Connaught May-15 109,999 LR2

STI Finchley Nov-14 38,734 HM STI Seneca Jun-15 49,990 MR STI Spiga Jun-15 109,999 LR2

STI Clapham Nov-14 38,734 HM STI Westminster Jun-15 49,687 MR STI Savile Row Jun-15 109,999 LR2

STI Poplar Dec-14 38,734 HM STI Brooklyn Jul-15 49,990 MR STI Kingsway Aug-15 109,999 LR2

STI Hammersmith Jan-15 38,734 HM STI Black Hawk Sep-15 49,990 MR STI Lombard Aug-15 109,999 LR2

STI Rotherhithe Jan-15 38,734 HM STI Galata Mar-17 49,990 MR STI Carnaby Sep-15 109,999 LR2

STI Amber Jul-12 49,990 MR STI Bosphorus Apr-17 49,990 MR STI Grace Mar-16 109,999 LR2

STI Topaz Aug-12 49,990 MR STI Leblon Jul-17 49,990 MR STI Jermyn Jun-16 109,999 LR2

STI Ruby Sep-12 49,990 MR STI La Boca Jul-17 49,990 MR STI Selatar Feb-17 109,999 LR2

STI Garnet Sep-12 49,990 MR STI San Telmo Sep-17 49,990 MR STI Rambla Mar-17 109,999 LR2

STI Onyx Sep-12 49,990 MR STI Donald C. Trauscht Oct-17 50,000 MR STI Solidarity Nov-15 109,999 LR2

STI Fontvieille Jul-13 49,990 MR STI Esles II Jan-18 50,000 MR STI Stability Jan-16 109,999 LR2

STI Ville Sep-13 49,990 MR STI Jardins Jan-18 50,000 MR STI Solace Jan-16 109,999 LR2

STI Opera Jan-14 49,990 MR STI Excel Nov-15 74,000 LR1 STI Symphony Feb-16 109,999 LR2

STI Duchessa Jan-14 49,990 MR STI Excelsior Jan-16 74,000 LR1 STI Sanctity Mar-16 109,999 LR2

STI Texas City Mar-14 49,990 MR STI Expedite Jan-16 74,000 LR1 STI Steadfast May-16 109,999 LR2

STI Meraux Apr-14 49,990 MR STI Exceed Feb-16 74,000 LR1 STI Grace May-16 113,000 LR2

STI San Antonio May-14 49,990 MR STI Experience Mar-16 74,000 LR1 STI Gallantry Jun-16 113,000 LR2

STI Venere Jun-14 49,990 MR STI Express May-16 74,000 LR1 STI Supreme Aug-16 109,999 LR2

STI Virtus Jun-14 49,990 MR STI Executive May-16 74,000 LR1 STI Guard Aug-16 113,000 LR2

STI Aqua Jul-14 49,990 MR STI Excellence May-16 74,000 LR1 STI Guide Oct-16 113,000 LR2

STI Dama Jul-14 49,990 MR STI Pride Jul-16 74,000 LR1 STI Goal Nov-16 113,000 LR2

STI Benicia Sep-14 49,990 MR STI Providence Aug-16 74,000 LR1 STI Guantlet Jan-17 113,000 LR2

STI Regina Sep-14 49,990 MR STI Precision Oct-16 74,000 LR1 STI Gladiator Jan-17 113,000 LR2

STI St Charles Sep-14 49,990 MR STI Prestige Nov-16 74,000 LR1 STI Gratitude May-17 113,000 LR2

STI Mayfair Oct-14 49,990 MR STI Elysees Jul-14 109,999 LR2

STI Yorkville Oct-14 49,990 MR STI Madison Aug-14 109,999 LR2

STI Memphis Nov-14 49,995 MR STI Park Sep-14 109,999 LR2

STI Milwaukee Nov-14 49,990 MR STI Orchard Sep-14 109,999 LR2

STI Battery Dec-14 49,990 MR STI Sloane Oct-14 109,999 LR2