Scorpio Tankers Inc. Announces Financial Results for the First Quarter of 2021 and Declaration of a Quarterly Dividend

MONACO, May 07, 2021 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months ended March 31, 2021. The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share on the Company’s common stock.

Results for the three months ended March 31, 2021 and 2020

For the three months ended March 31, 2021, the Company had a net loss of $62.4 million, or $1.15 basic and diluted loss per share. For the three months ended March 31, 2021, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $57.3 million, or $1.05 basic and diluted loss per share, which excludes from the net loss $3.9 million, or $0.07 per basic and diluted share, of losses recorded on the transaction to exchange $62.1 million in aggregate principal amount of its existing Convertible Notes due 2022 for $62.1 million in aggregate principal amount of new Convertible Notes due 2025, described in detail below, and $1.3 million, or $0.02 per basic and diluted share, write-offs of deferred financing fees related to the refinancing of certain credit facilities.

For the three months ended March 31, 2020, the Company had net income of $46.6 million, or $0.85 basic and $0.82 diluted earnings per share. There were no Non-IFRS adjustments to the net income for the three months ended March 31, 2020.

Declaration of Dividend

On May 6, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about June 15, 2021 to all shareholders of record as of May 21, 2021 (the record date). As of May 6, 2021, there were 58,369,516 common shares of the Company outstanding.

Summary of First Quarter 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 pool voyages and time charters for the Company's vessels thus far in the second quarter of 2021 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):
  

	Total
Pool	Average daily TCE revenue		% of Days
LR2	$14,700		48 %
LR1	$13,700		41 %
MR	$13,000		52 %
Handymax	$11,900		42 %

• Below is a summary of the average daily TCE revenue earned by the Company's vessels in each of the pools during the first quarter of 2021:

Pool	Average daily TCE revenue
LR2	$11,980
LR1	$11,292
MR	$11,326
Handymax	$9,065

• In March 2021, the Company completed the exchange of $62.1 million in aggregate principal amount of its Convertible Notes due 2022 for $62.1 million in aggregate principal amount of new 3.00% Convertible Notes due 2025 (the "Convertible Notes due 2025"), pursuant to separate, privately negotiated, agreements with certain holders of the Convertible Notes due 2022. Simultaneously, the Company issued and sold $76.1 million in aggregate principal amount of Convertible Notes due 2025 pursuant to separate, privately negotiated, agreements with certain investors in a private offering.
• In January 2021, the Company entered into a note distribution agreement with B. Riley Securities, Inc., as sales agent, pursuant to which the Company may offer and sell, from time to time, up to $75.0 million of additional aggregate principal amount of its 7.00% Senior Unsecured Notes due 2025 (the "Senior Notes due 2025"). Since the inception of this program and through the date of this press release, the Company issued $17.9 million aggregate principal amount of additional Senior Notes due 2025 for aggregate net proceeds (net of sales agent commissions and offering expenses) of $17.5 million.
• The Company has received a commitment to refinance the existing indebtedness on two LR2s, which is expected to raise $20.5 million in new liquidity (after the repayment of existing debt). These refinancings are expected to close before the end of the second quarter of 2021.
• The Company is also in discussions with financial institutions to further increase its liquidity by up to $46.7 million in connection with the refinancing of 11 vessels.
• In addition to the above, the Company has $20.0 million of additional liquidity available (after the repayment of existing debt) from previously announced financings that have been committed. These drawdowns are expected to occur at varying points in the future as these financings are tied to scrubber installations on the Company’s vessels.
• The Company has $280.1 million in cash and cash equivalents as of May 6, 2021.
  

March 2021 Exchange Offer and New Issuance of Convertible Notes

In March 2021, the Company completed the exchange of $62.1 million in aggregate principal amount of Convertible Notes due 2022 for $62.1 million in aggregate principal amount of the Convertible Notes due 2025, pursuant to separate, privately negotiated, agreements with certain holders of the Convertible Notes due 2022 (the "March 2021 Exchange"). Simultaneously with the March 2021 Exchange, the Company issued and sold $76.1 million in aggregate principal amount of Convertible Notes due 2025 pursuant to separate, privately negotiated, agreements with certain investors in a private offering (the "March 2021 Convertible Notes Offering").

The Convertible Notes due 2025 are the Company's senior, unsecured obligations and bear interest at a rate of 3.00% per year. Interest is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2021. The Convertible Notes due 2025 will mature on May 15, 2025, unless earlier converted, redeemed or repurchased in accordance with their terms.

The conversion rate of the Convertible Notes due 2025 is initially 26.6617 common shares per $1,000 principal amount of Convertible Notes due 2025 (equivalent to an initial conversion price of approximately $37.507 per common share), and is subject to adjustment upon the occurrence of certain events as set forth in the indenture governing the Convertible Notes due 2025 (such as the payment of dividends).

Commencing on the issue date of the Convertible Notes due 2025, principal will accrete on the principal amount, compounded semi-annually, at a rate of approximately 5.52% per annum, which principal amount, together with any accretions thereon, is the “Accreted Principal Amount”. The Accreted Principal Amount at maturity will equal 125.3% of par, which together with the 3.00% interest rate, compounds to a yield-to-maturity of approximately 8.25%.

The Convertible Notes due 2025 are freely convertible at the option of the holder and prior to the close of business on the 5th business day immediately preceding the maturity date. Upon conversion of the Convertible Notes due 2025, holders will receive shares of the Company's common stock. The Company may, subject to certain exceptions, redeem the Convertible Notes due 2025 for cash, if at any time the per share volume-weighted average price of our common shares equals or exceeds 125.4% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the applicable redemption date; and (ii) the trading day immediately before such date of the redemption notice.

The Company recorded a loss on the extinguishment of the Convertible Notes due 2022 of $3.9 million as a result of the March 2021 Exchange, which primarily arose from the difference between the carrying value and the face value of the Convertible Notes due 2022 on the date of the exchange.

Distribution Agreement of Additional Senior Notes due 2025

In January 2021, the Company entered into a note distribution agreement (the “Distribution Agreement”) with B. Riley Securities, Inc., as sales agent (the “Agent”), under which the Company may offer and sell, from time to time, up to an additional $75.0 million aggregate principal amount of its Senior Notes due 2025 (the "Additional Notes").

Any Additional Notes sold will be issued under the Indenture pursuant to which the Company previously issued $28.1 million aggregate principal amount of the Senior Notes due 2025 on May 29, 2020 (the "Initial Notes"). The Additional Notes will have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Initial Notes immediately upon issuance, including for purposes of notices, consents, waivers, amendments and any other action permitted under the Indenture. The Senior Notes due 2025 are listed on the New York Stock Exchange (the “NYSE”) under the symbol "SBBA."

Sales of the Additional Notes may be made over a period of time, and from time to time, through the Agent, in transactions involving an offering of the Senior Notes due 2025 into the existing trading market at prevailing market prices.

During the first quarter of 2021, the Company issued $14.1 million in aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $13.8 million. Since the inception of this program and through the date of this press release, the Company issued $17.9 million aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $17.5 million.

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 (i) the Company’s equity incentive plan, and (ii) the Company’s Convertible Notes due 2022 and Convertible Notes due 2025. These potentially dilutive shares are excluded from the computation of earnings or loss per share to the extent they are anti-dilutive.

The impact of the Convertible Notes due 2022 and Convertible Notes due 2025 on earnings or loss per share is computed using the if-converted method. Under this method, the Company first includes the potentially dilutive impact of restricted shares issued under the Company’s equity incentive plan, and then assumes that its Convertible Notes due 2022 and Convertible Notes due 2025, which were issued in May and July 2018 and March 2021, respectively, were converted into common shares at the beginning of each period. The if-converted method also assumes that the interest and non-cash amortization expense associated with these notes of $3.1 million during the three months ended March 31, 2021 were not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.

The Company's basic weighted average number of shares outstanding were 54,318,792 for the three months ended March 31, 2021. There were 56,019,369 weighted average shares outstanding including the potentially dilutive impact of restricted shares, and 60,168,137 weighted average shares outstanding under the if-converted method. Since the Company was in a net loss position, the potentially dilutive shares arising from both the Company’s restricted shares and under the if-converted method, were anti-dilutive for purposes of calculating the loss per share. Accordingly, basic weighted average shares outstanding were used to calculate both basic and diluted loss per share for this period.

COVID-19

Initially, the onset of the COVID-19 pandemic in March 2020 resulted in a sharp reduction in economic activity and a corresponding reduction in the global demand for oil and refined petroleum products. This period of time was marked by extreme volatility in the oil markets and the development of a steep contango in the prices of oil and refined petroleum products. Consequently, an abundance of arbitrage and floating storage opportunities opened up, which resulted in record increases in spot TCE rates late in the first quarter of 2020 and throughout the second quarter of 2020. These market dynamics, which were driven by arbitrage trading rather than underlying consumption, led to a build-up of global oil and refined petroleum product inventories.

In June 2020, as underlying oil markets stabilized and global economies began to recover, the excess inventories that built up during this period began to slowly unwind. Nevertheless, global demand for oil and refined petroleum products remained subdued as governments around the world continued to impose travel restrictions and other measures in an effort to curtail the spread of the virus. These market conditions had an adverse impact on the demand for our vessels beginning in the third quarter of 2020 and continuing through the first quarter of 2021. Recently, the easing of restrictive measures and successful roll-out of vaccines in certain countries have begun to stimulate oil demand and have manifested into sequential improvements in market conditions to start the second quarter of 2021.

We expect that the COVID-19 virus will continue to cause volatility in the commodities markets. The scale and duration of these circumstances is unknowable but could have a material impact on our earnings, cash flow and financial condition in 2021. An estimate of the impact on our results of operations and financial condition cannot be made at this time.

$250 Million Securities Repurchase Program

In September 2020, the Company's Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its Senior Notes due 2025 (NYSE: SBBA), which were originally issued in May 2020, Convertible Notes due 2022, which were issued in May and July 2018, and Convertible Notes due 2025, which were issued in March 2021. No securities have been repurchased under the new program since its inception through the date of this press release.

Conference Call

The Company has scheduled a conference call on May 7, 2021 at 8:30 AM Eastern Daylight Time and 2:30 PM Central European Summer Time. The dial-in information is as follows:

US Dial-In Number: [phone]
International Dial-In Number: [phone]
Conference ID: 1796885

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/7nx97or2

Current Liquidity

As of May 6, 2021, the Company had $280.1 million in unrestricted cash and cash equivalents.

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 2021 and that is in progress as of April 1, 2021:

	Number of Vessels	Drydock	Ballast Water Treatment Systems	Scrubbers	Aggregate Costs ($ in millions) (1)	Aggregate Off- hire Days in Q1 2021
Completed in the first quarter of 2021
LR2	3	3	—	1	$6.2	76
LR1	3	3	—	—	3.2	61
MR	—	—	—	—	—	—
Handymax	—	—	—	—	—	—
	6	6	—	1	$9.4	137
In progress as of April 1, 2021
LR2	1	1	—	—	$0.2	1
LR1	—	—	—	—	—	—
MR	—	—	—	—	—	—
Handymax	—	—	—	—	—	—
	1	1	—	—	$0.2	1

⁽¹⁾ Aggregate costs for vessels completed in the quarter represent the total costs incurred, some of which may have been incurred in prior periods. Aggregate costs for vessels in progress as of April 1, 2021 represent the total costs incurred through that date, some of which may have been incurred in prior periods.

Set forth below are the estimated expected payments to be made for the Company's drydocks, ballast water treatment system installations, and scrubber installations through 2022 (which also include actual payments made during the first quarter of 2021 and through May 6, 2021): 

In millions of U.S. dollars	As of March 31, 2021 (1) (2)
Q2 2021 - payments made through May 6, 2021	$	1.8
Q2 2021 - remaining payments	8.6
Q3 2021	10.1
Q4 2021	6.1
FY 2022	40.5

⁽¹⁾ Includes 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⁾ Based upon the commitments received to date, which include the remaining availability under certain financing transactions that have been previously announced, the Company expects to raise approximately $20.0 million of aggregate additional liquidity to finance the purchase and installations of scrubbers (after the repayment of existing debt) once all of the agreements are closed and drawn.  These drawdowns are expected to occur at varying points in the future as these financings are tied to scrubber installations on the Company’s vessels.

Set forth below are the estimated expected number of ships and estimated expected off-hire days for the Company's drydocks, ballast water treatment system installations, and scrubber installations ⁽¹⁾:

	Q2 2021
	Ships Scheduled for (2):						Off-hire
	Drydock		Ballast Water Treatment Systems		Scrubbers		Days (3)
LR2	4		—		—		80
LR1	3		—		—		60
MR	—		—		—		—
Handymax	—		—		—		—
Total Q2 2021	7		—		—		140
	Q3 2021
	Ships Scheduled for (2):						Off-hire
	Drydock		Ballast Water Treatment Systems		Scrubbers		Days (3)
LR2	2		—		—		40
LR1	2		—		—		40
MR	—		—		—		—
Handymax	—		—		—		—
Total Q3 2021	4		—		—		80
	Q4 2021
	Ships Scheduled for (2):						Off-hire
	Drydock		Ballast Water Treatment Systems		Scrubbers		Days (3)
LR2	2		—		—		40
LR1	2		—		—		40
MR	—		—		—		—
Handymax	—		—		—		—
Total Q4 2021	4		—		—		80
	FY 2022
	Ships Scheduled for (2):						Off-hire
	Drydock		Ballast Water Treatment Systems		Scrubbers		Days (3)
LR2	5		—		1		140
LR1	—		—		3		120
MR	11		5		4		320
Handymax	—		—		—		—
Total FY 2022	16		5		8		580

⁽¹⁾ The number of vessels in these tables 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 may vary as drydock, ballast water treatment system installation and scrubber installation times are finalized.
⁽²⁾ 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.
⁽³⁾ Represents total estimated off-hire days during the period, including vessels that commenced work in a previous period.

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, 2020			Drawdowns and (repayments), net				Outstanding Principal as of March 31, 2021			Drawdowns and (repayments), net				Outstanding Principal as of May 6, 2021
1	KEXIM Credit Facility (1)	$	15,931		$	(15,931	)		$	—		—				$	—
2	ING Credit Facility (2)(3)(4)(8)	191,348			(121,001		)		70,347			—				70,347
3	2018 NIBC Credit Facility (4)	31,066			(31,066		)		—			—				—
4	Credit Agricole Credit Facility	82,160			(2,142		)		80,018			—				80,018
5	ABN AMRO / K-Sure Credit Facility	41,827			(963		)		40,864			—				40,864
6	Citibank / K-Sure Credit Facility	86,818			(2,104		)		84,714			—				84,714
7	ABN / SEB Credit Facility (2)	97,856			(3,087		)		94,769			(16,076		)		78,693
8	Hamburg Commercial Credit Facility	40,315			(823		)		39,492			—				39,492
9	Prudential Credit Facility	50,378			(1,386		)		48,992			(924		)		48,068
10	2019 DNB / GIEK Credit Facility	52,563			(1,778		)		50,785			—				50,785
11	BNPP Sinosure Credit Facility (5)	94,733			1,915				96,648			(5,167		)		91,481
12	2020 $225.0 Million Credit Facility	208,890			(5,250		)		203,640			—				203,640
13	2021 $21.0 Million Credit Facility (1)	—			21,000				21,000			—				21,000
14	Ocean Yield Lease Financing	138,508			(2,733		)		135,775			(911		)		134,864
15	BCFL Lease Financing (LR2s) (6)	86,197			1,277				87,474			(895		)		86,579
16	CSSC Lease Financing	134,308			(2,732		)		131,576			(911		)		130,665
17	CSSC Scrubber Lease Financing	4,443			(980		)		3,463			(327		)		3,136
18	BCFL Lease Financing (MRs) (6)	77,748			2,394				80,142			(1,250		)		78,892
19	2018 CMBFL Lease Financing	124,993			(3,252		)		121,741			(836		)		120,905
20	$116.0 Million Lease Financing (6)	103,801			(401		)		103,400			(848		)		102,552
21	AVIC Lease Financing	119,732			(3,332		)		116,400			—				116,400
22	China Huarong Lease Financing (7)	110,250			5,791				116,041			—				116,041
23	$157.5 Million Lease Financing	123,800			(3,536		)		120,264			—				120,264
24	COSCO Lease Financing	68,750			(1,925		)		66,825			—				66,825
25	2020 CMBFL Lease Financing	44,573			(810		)		43,763			—				43,763
26	2020 TSFL Lease Financing	47,250			(831		)		46,419			—				46,419
27	2020 SPDBFL Lease Financing	96,500			(1,624		)		94,876			—				94,876
28	2021 AVIC Lease Financing (4)	—			97,325				97,325			—				97,325
29	2021 CMBFL Lease Financing (2)	—			58,800				58,800			20,250				79,050
30	2021 TSFL Lease Financing (3)	—			57,663				57,663			—				57,663
31	IFRS 16 - Leases - 7 Handymax (9)	2,247			(2,247		)		—			—				—
32	IFRS 16 - Leases - 3 MR	36,936			(1,843		)		35,093			(623		)		34,470
33	$670.0 Million Lease Financing	593,291			(11,134		)		582,157			(3,993		)		578,164
34	Unsecured Senior Notes Due 2025 (10)	28,100			14,133				42,233			3,755				45,988
35	Convertible Notes Due 2022 (11)	151,229			(62,088		)		89,141			—				89,141
36	Convertible Notes Due 2025 (11)	—			138,188				138,188			—				138,188
	Gross debt outstanding	$	3,086,541		$	113,487			$	3,200,028		$	(8,756	)		$	3,191,272
	Cash and cash equivalents	187,511							269,538							280,053
	Net debt	$	2,899,030						$	2,930,490						$	2,911,219

⁽¹⁾ In February 2021, the Company drew down $21.0 million on a term loan facility with a European financial institution (the "2021 $21.0 Million Credit Facility"). The proceeds of this loan facility were used to refinance the outstanding debt on an LR2 product tanker, STI Madison, that was previously financed under the KEXIM Credit Facility. The Company repaid the outstanding indebtedness of $15.9 million related to this vessel on the KEXIM Credit Facility in January 2021 upon its maturity. The 2021 $21.0 Million Credit Facility has a final maturity of December 2022, bears interest at LIBOR plus a margin of 2.65% per annum, and is scheduled to be repaid in equal quarterly installments of approximately $0.6 million, with a balloon payment due upon maturity. The remaining terms and conditions, including financial covenants, are similar to those set forth in our existing credit facilities.

⁽²⁾ In March 2021, the Company received a commitment to sell and leaseback four Handymax vessels (STI Comandante, STI Brixton, STI Pimlico and STI Finchley) and one MR vessel (STI Westminster) from CMB Financial Leasing Co. Ltd, or CMBFL (the "2021 CMBFL Lease Financing"). In March 2021, the Company closed on the sale and leaseback of the four aforementioned Handymax vessels for aggregate proceeds of $58.8 million. The Company repaid the outstanding indebtedness of $46.7 million related to these vessels on the ING Credit Facility as part of these transactions. In April 2021, the Company closed on the sale and leaseback of STI Westminster for aggregate proceeds of $20.25 million. The Company repaid the outstanding indebtedness of $16.1 million related to this vessel on the ABN/SEB Credit Facility as part of this transaction.

Under the 2021 CMBFL Lease Financing, each vessel is subject to a seven-year bareboat charter-in agreement. The lease financings bear interest at LIBOR plus a margin of 3.25% per annum for the Handymax vessels and 3.20% for the MR vessel and are scheduled to be repaid in equal quarterly principal installments of approximately $0.3 million per each Handymax vessel and $0.4 million for the MR vessel. Each agreement contains purchase options to re-acquire each of the subject vessels beginning on the third anniversary date from the delivery date of the respective vessel, with a purchase option for each vessel upon the expiration of each agreement. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's other sale and leaseback arrangements.

This transaction is being accounted for as a financing transaction under IFRS 9 as the transaction does not qualify as a ‘sale’ under IFRS 15 given the Company’s right to repurchase the asset during the lease period. Accordingly, no gain or loss is recorded, and the Company will continue to recognize the vessel as an asset and recognize a financial liability (i.e. debt) for the consideration received (similar to the Company’s other sale and leaseback transactions).

⁽³⁾ In March 2021, the Company closed on the sale and leaseback of three MR vessels (STI Black Hawk, STI Notting Hill and STI Pontiac) with Taiping & Sinopec Financial Leasing Co., Ltd. for aggregate proceeds of $57.7 million (the "2021 TSFL Lease Financing"). The Company repaid the outstanding indebtedness of $40.7 million related to these vessels on the ING Credit Facility as part of these transactions.

Under the 2021 TSFL Lease Financing, each vessel is subject to a seven-year bareboat charter-in agreement. The lease financings bear interest at LIBOR plus a margin of 3.20% per annum and are scheduled to be repaid in equal quarterly principal installments of approximately $0.4 million per vessel. Each agreement contains purchase options to re-acquire each of the subject vessels beginning on the second anniversary date from the delivery date of the respective vessel, with a purchase option for each vessel upon the expiration of each agreement. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's other sale and leaseback arrangements.

This transaction is being accounted for as a financing transaction under IFRS 9 as the transaction does not qualify as a ‘sale’ under IFRS 15 given the Company’s right to repurchase the asset during the lease period. Accordingly, no gain or loss is recorded, and the Company will continue to recognize the vessel as an asset and recognize a financial liability (i.e. debt) for the consideration received (similar to the Company’s other sale and leaseback transactions).

⁽⁴⁾ In February 2021, the Company closed on the sale and leaseback of two vessels (STI Memphis and STI Soho) with AVIC International Leasing Co., Ltd. for aggregate proceeds of $44.2 million. The Company repaid the outstanding indebtedness of $30.0 million related to these vessels on the 2018 NIBC Credit Facility as part of these transactions. Additionally, in March 2021, the Company closed on the sale and leaseback of two additional vessels (STI Lombard and STI Osceola) under the 2021 AVIC Lease Financing for aggregate proceeds of $53.1 million. The Company repaid the outstanding indebtedness of $29.6 million related to these vessels on the ING Credit Facility as part of these transactions. These sale and leaseback transactions are collectively referred to as the “2021 AVIC Lease Financing”.

Under the 2021 AVIC Lease Financing, each vessel is subject to a nine-year bareboat charter-in agreement. The lease financings bear interest at LIBOR plus a margin of 3.45% per annum and are scheduled to be repaid in equal aggregate quarterly repayments of approximately $1.8 million. Each agreement contains purchase options to re-acquire each of the subject vessels beginning on the second anniversary date from the delivery date of the respective vessel, with a purchase obligation upon the expiration of each agreement. Additionally, we are required to deposit with the lessor, 1% of the borrowing amount, or $1.0 million in aggregate. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's other sale and leaseback arrangements.

This transaction is being accounted for as a financing transaction under IFRS 9 as the transaction does not qualify as a ‘sale’ under IFRS 15 given the Company’s right to repurchase the asset during the lease period. Accordingly, no gain or loss is recorded, and the Company will continue to recognize the vessel as an asset and recognize a financial liability (i.e. debt) for the consideration received (similar to the Company’s other sale and leaseback transactions).

⁽⁵⁾ In January 2021, the Company signed an agreement to extend the availability period under this loan facility to June 15, 2022 from March 15, 2021. In March 2021, the Company drew down $1.9 million from the BNPP Sinosure Credit Facility to partially finance the purchase and installation of a scrubber on a MR product tanker.

⁽⁶⁾ In January 2021, the Company drew down an aggregate of $11.4 million, which consisted of (i) $3.8 million under the BCFL Lease Financing (LR2s); (ii) $5.8 million under the BCFL Lease Financing (MRs) and (iii) $1.9 million under the $116.0 Million Lease Financing to partially finance the purchase and installations of scrubbers on six product tankers. All of these scrubber related borrowings are scheduled to be repaid over a period of three years from each drawdown date in fixed monthly installments (which includes interest) of approximately $50,000 to $60,000 per vessel.

⁽⁷⁾ In January 2021, the Company drew down $10.0 million from the China Huarong Lease Financing to partially finance the purchase and installations of scrubbers on five MR product tankers. These borrowings bear interest at LIBOR plus a margin of 3.50% and are scheduled to be repaid in equal quarterly installments of approximately $0.2 million per vessel through November 2023.

⁽⁸⁾ In January 2021, the Company drew down $2.1 million from its ING Credit Facility to partially finance the purchase and installations of scrubbers on two LR2 product tankers. These borrowings bear interest at LIBOR plus a margin of 1.95% and are scheduled to be repaid in equal quarterly installments of approximately $0.2 million per vessel through June 2022.

⁽⁹⁾ The remaining terms on the bareboat-in agreements for Handymax vessels under these agreements expired in March 2021.

⁽¹⁰⁾ In January 2021, the Company entered into the Distribution Agreement with the Agent, under which the Company may offer and sell, from time to time, up to an additional $75.0 million aggregate principal amount Additional Notes. The Additional Notes will have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Initial Notes immediately upon issuance. Sales of the Additional Notes may be made over a period of time, and from time to time, through the Agent, in transactions involving an offering of the Senior Notes due 2025 into the existing trading market at prevailing market prices. During the first quarter of 2021, the Company issued $14.1 million aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $13.8 million. Since inception of this program and through the date of this press release, the Company issued $17.9 million aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $17.5 million.

⁽¹¹⁾ In March 2021, the Company completed the exchange of approximately $62.1 million in aggregate principal amount of Convertible Notes due 2022 for approximately $62.1 million in aggregate principal amount of Convertible Notes due 2025 as part of the March 2021 Exchange. Simultaneously with the March 2021 Exchange, the Company issued and sold $76.1 million in aggregate principal amount of Convertible Notes due 2025 as part of the March 2021 Convertible Notes Offering.

The conversion rate of the Convertible Notes due 2025 is initially 26.6617 common shares per $1,000 principal amount of Convertible Notes due 2025 (equivalent to an initial conversion price of approximately $37.507 per common share), and is subject to adjustment upon the occurrence of certain events as set forth in the indenture governing the Convertible Notes due 2025 (such as the payment of dividends).

Commencing on the issue date of the Convertible Notes due 2025, principal will accrete on the principal amount, compounded semi-annually, at a rate of approximately 5.52% per annum, which principal amount, together with any accretions thereon, is the “Accreted Principal Amount”. The Accreted Principal Amount at maturity will equal 125.3% of par, which together with the 3.00% interest rate, compounds to a yield-to-maturity of approximately 8.25%.

The Company recorded a loss on the extinguishment of the Convertible Notes due 2022 of $3.9 million as a result of the March 2021 Exchange which primarily arose from the difference between the carrying value and the face value of the Convertible Notes due 2022 on the date of the exchange.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of March 31, 2021, which includes principal amounts due under the Company's secured credit facilities, Convertible Notes due 2022, Convertible Notes due 2025, lease financing arrangements, Senior Notes due 2025, and lease liabilities under IFRS 16 (which also include actual payments made during the first quarter of 2021 and through May 6, 2021):

In millions of U.S. dollars	As of March 31, 2021 (1)
Q2 2021 - principal payments made through May 6, 2021 (2)	$	32.8
Q2 2021 - remaining principal payments	61.1
Q3 2021	72.9
Q4 2021	77.9
Q1 2022 (3)	90.7
Q2 2022 (4)	265.4
Q3 2022 (5)	86.7
Q4 2022 (6)	123.1
2023 and thereafter	2,389.4
	$	3,200.0

⁽¹⁾ Amounts represent the principal payments due on the Company’s outstanding indebtedness as of March 31, 2021 and do not incorporate the impact of any of the Company’s new financing initiatives which have not closed as of that date.

⁽²⁾ Repayments include the payment of $16.1 million on the ABN / SEB Credit Facility which was made as part of the refinancing of the amounts borrowed for STI Westminster, which was sold and leased back under the 2021 CMBFL Lease Financing in April 2021.

⁽³⁾ Repayments include the maturity of the outstanding debt related to one vessel under the Citi/K-Sure Credit Facility of $19.3 million.

⁽⁴⁾ Repayments include the maturity of the outstanding debt related to (i) three vessels under the Citi/K-Sure Credit Facility of $57.6 million in aggregate, (ii) the Company's Convertible Notes due 2022 of $89.1 million, and (iii) three vessels under the ING Credit Facility of $44.8 million in aggregate.

⁽⁵⁾ Repayments include the maturity of the outstanding debt related to one vessel under the ABN AMRO/K-Sure Credit Facility of $18.4 million.

⁽⁶⁾ Repayments include the maturity of the outstanding debt related to (i) one vessel under the ABN AMRO/K-Sure Credit Facility of $17.2 million and (ii) one vessel under the Credit Agricole Credit Facility of $16.5 million.^.

Explanation of Variances on the First Quarter of 2021 Financial Results Compared to the First Quarter of 2020

For the three months ended March 31, 2021, the Company recorded a net loss of $62.4 million compared to net income of $46.6 million for the three months ended March 31, 2020. 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, 2021 and 2020:
  
  

		For the three months ended March 31,
In thousands of U.S. dollars		2021					2020
	Vessel revenue	$	134,165				$	254,167
	Voyage expenses	(1,385		)			(4,220		)
	TCE revenue	$	132,780				$	249,947

• TCE revenue for the three months ended March 31, 2021 decreased by $117.2 million to $132.8 million, from $249.9 million for the three months ended March 31, 2020. Overall average TCE revenue per day decreased to $11,166 per day during the three months ended March 31, 2021, from $22,644 per day during the three months ended March 31, 2020. Given the onset of the COVID-19 pandemic, market fundamentals and underlying TCE revenue during these periods differed significantly.
  • TCE revenue for the three months ended March 31, 2021 reflected the adverse market conditions brought on by the COVID-19 pandemic. Demand for crude and refined petroleum products remained low during this period as inventories that built up during 2020 continued to be drawn, and most countries throughout the world continued to implement restrictive policies in an effort to control the spread of the virus.
  • TCE revenue for the three months ended March 30, 2020 reflected strong market conditions that were the result of (i) the January 1, 2020 implementation date of the IMO low sulfur emissions standards and (ii) the initial market conditions brought on by the onset of the COVID-19 pandemic in March 2020. Supply and demand dynamics shifted favorably during the fourth quarter of 2019 and early in the first quarter of 2020, driven by the January 1, 2020 implementation date of the International Maritime Organization’s (“IMO”) low sulfur emissions standards. The implementation of these standards impacted the trade flows of both crude and refined petroleum products which, combined with favorable supply and demand dynamics at the time, resulted in improvements in daily spot market TCE rates.
    
    Towards the end of the first quarter of 2020, travel restrictions and other preventive measure to control the spread of the COVID-19 pandemic resulted in a precipitous decline in oil demand. Lack of corresponding production and refinery cuts resulted in a supply glut of oil and refined petroleum products, which was exacerbated by extreme oil price volatility from the Russia-Saudi Arabia oil price war. The oversupply of petroleum products and contango in oil prices led to record floating storage and arbitrage opportunities of both crude and refined petroleum products. These market conditions had a disruptive impact on the supply and demand balance of product tankers, resulting in significant and prolonged spikes in spot TCE rates which persisted through the second quarter of 2020.

• Vessel operating costs for the three months ended March 31, 2021 remained consistent, increasing slightly by $1.8 million to $83.3 million, from $81.5 million for the three months ended March 31, 2020. Vessel operating costs were impacted by a net decrease of 1.5 average vessels for the three months ended March 31, 2021 when compared to the three months ended March 31, 2020. This decrease was due to the redelivery of three Handymax vessels upon the expiration of their bareboat charters in the second and third quarters of 2020, and the redelivery of four Handymax vessels in March 2021. Offsetting this decrease was the delivery of four MRs under bareboat charter-in agreements; three of which were delivered during the first quarter of 2020, and one was delivered during the third quarter of 2020.
  
  Vessel operating costs per day increased to $6,891 per day for the three months ended March 31, 2021 from $6,592 per day for the three months ended March 31, 2020. This increase was primarily attributable to (i) costs incurred to transition technical managers for certain MRs that were acquired from Trafigura Maritime Logistics Pte. Ltd. in 2019, and (ii) costs incurred upon the expiration of the bareboat charters on four Handymax vessels in March 2021.

• Depreciation expense - owned or sale leaseback vessels for the three months ended March 31, 2021 increased by $1.9 million to $48.8 million, from $46.8 million for the three months ended March 31, 2020. The increase was due to the Company's drydock, scrubber and ballast water treatment system installations that have taken place over the preceding 12-month period.
• Depreciation expense - right of use assets for the three months ended March 31, 2021 decreased $1.4 million to $11.8 million from $13.2 million for the three months ended March 31, 2020. Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded under IFRS 16 - Leases. Right of use asset depreciation expense was impacted by the delivery of four vessels that were previously under construction (three MRs in the first quarter of 2020 and one MR in the third quarter of 2020), offset by the redelivery of three Handymax vessels upon the expiration of their bareboat charters in the second and third quarters of 2020 and four Handymax vessels at the end of the first quarter of 2021. The Company had four LR2s, 18 MRs, and four Handymax vessels (whose leases expired in March 2021) that were accounted for under IFRS 16 - Leases during the three months ended March 31, 2021. The right of use asset depreciation for these vessels is approximately $0.2 million per MR and $0.3 million per LR2 per month.
• General and administrative expenses for the three months ended March 31, 2021, decreased by $3.7 million to $13.6 million, from $17.3 million for the three months ended March 31, 2020. This decrease was due to an overall reduction in costs during the three months ended March 31, 2021, including reductions in restricted stock amortization and compensation expenses.
• Financial expenses for the three months ended March 31, 2021 decreased by $10.7 million to $34.1 million, from $44.8 million for the three months ended March 31, 2020. The decrease was primarily driven by significant decreases in LIBOR rates, which underpin all of the Company's variable rate borrowings, and which have collapsed since the onset of the COVID-19 pandemic.

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		2021					2020
Revenue
	Vessel revenue	$	134,165				$	254,167
Operating expenses
	Vessel operating costs	(83,302		)			(81,463		)
	Voyage expenses	(1,385		)			(4,220		)
	Depreciation - owned or sale leaseback vessels	(48,784		)			(46,841		)
	Depreciation - right of use assets	(11,841		)			(13,197		)
	General and administrative expenses	(13,560		)			(17,261		)
	Total operating expenses	(158,872		)			(162,982		)
Operating income		(24,707		)			91,185
Other (expense) and income, net
	Financial expenses	(34,067		)			(44,765		)
	Loss on Convertible Notes exchange	(3,856		)			—
	Financial income	225					565
	Other income and (expense), net	11					(358		)
	Total other expense, net	(37,687		)			(44,558		)
Net (loss) / income		$	(62,394	)			$	46,627
(Loss) / Earnings per share
	Basic	$	(1.15	)			$	0.85
	Diluted	$	(1.15	)			$	0.82
	Basic weighted average shares outstanding	54,318,792					54,667,211
	Diluted weighted average shares outstanding (1)	54,318,792					61,692,830

⁽¹⁾ The computation of diluted loss per share for the three months ended March 31, 2021 excludes the effect of potentially dilutive unvested shares of restricted stock and the Convertible Notes due 2022 and Convertible Notes due 2025 because their effect would have been anti-dilutive. The computation of diluted earnings per share for the three months ended March 31, 2020 includes the effect of potentially dilutive unvested shares of restricted stock and the effect of the Convertible Notes due 2022 under the if-converted method.

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)

	As of
In thousands of U.S. dollars	March 31, 2021					December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	269,538				$	187,511
Accounts receivable	45,086					33,017
Prepaid expenses and other current assets	9,092					12,430
Inventories	8,104					9,261
Total current assets	331,820					242,219
Non-current assets
Vessels and drydock	3,964,122					4,002,888
Right of use assets	794,970					807,179
Other assets	97,274					92,145
Goodwill	8,900					8,900
Restricted cash	5,293					5,293
Total non-current assets	4,870,559					4,916,405
Total assets	$	5,202,379				$	5,158,624
Current liabilities
Current portion of long-term debt	$	105,861				$	172,705
Lease liability - sale and leaseback vessels	151,446					131,736
Lease liability - IFRS 16	54,442					56,678
Accounts payable	14,796					12,863
Accrued expenses	27,891					32,193
Total current liabilities	354,436					406,175
Non-current liabilities
Long-term debt	966,309					971,172
Lease liability - sale and leaseback vessels	1,311,604					1,139,713
Lease liability - IFRS 16	562,146					575,796
Total non-current liabilities	2,840,059					2,686,681
Total liabilities	3,194,495					3,092,856
Shareholders' equity
Issued, authorized and fully paid-in share capital:
Share capital	656					656
Additional paid-in capital	2,854,716					2,850,206
Treasury shares	(480,172		)			(480,172		)
Accumulated deficit	(367,316		)			(304,922		)
Total shareholders' equity	2,007,884					2,065,768
Total liabilities and shareholders' equity	$	5,202,379				$	5,158,624

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	2021					2020
Operating activities
Net (loss) / income	$	(62,394	)			$	46,627
Depreciation - owned or finance leased vessels	48,784					46,841
Depreciation - right of use assets	11,841					13,197
Amortization of restricted stock	6,192					7,845
Amortization of deferred financing fees	1,825					1,458
Write-off of deferred financing fees and unamortized discounts on sale and leaseback facilities	1,275					—
Accretion of convertible notes	1,922					2,258
Accretion of fair value measurement on debt assumed in business combinations	847					878
Loss on Convertible Notes exchange	3,856					—
	14,148					119,104
Changes in assets and liabilities:
Decrease / (increase) in inventories	1,157					(1,221		)
Increase in accounts receivable	(12,069		)			(70,363		)
(Increase) / decrease in prepaid expenses and other current assets	(600		)			2,080
(Increase) / decrease in other assets	(147		)			46
Increase / (decrease) in accounts payable	2,428					(675		)
Decrease in accrued expenses	(6,745		)			(4,869		)
	(15,976		)			(75,002		)
Net cash (outflow) / inflow from operating activities	(1,828		)			44,102
Investing activities
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, finance leased and bareboat-in vessels)	(16,601		)			(63,486		)
Net cash outflow from investing activities	(16,601		)			(63,486		)
Financing activities
Debt repayments	(224,757		)			(108,617		)
Issuance of debt	273,421					73,946
Debt issuance costs	(3,643		)			(1,783		)
Principal repayments on lease liability - IFRS 16	(14,856		)			(20,772		)
Issuance of convertible notes	76,100					—
Dividends paid	(5,809		)			(5,868		)
Net cash inflow / (outflow) from financing activities	100,456					(63,094		)
Increase / (decrease) in cash and cash equivalents	82,027					(82,478		)
Cash and cash equivalents at January 1,	187,511					202,303
Cash and cash equivalents at March 31,	$	269,538				$	119,825

Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three months and three months ended March 31, 2021 and 2020
(unaudited)

	For the three months ended March 31,
	2021				2020
Adjusted EBITDA(1) (in thousands of U.S. dollars except Fleet Data)	$	42,121			$	158,710
Average Daily Results
TCE per day(2)	$	11,166			$	22,644
Vessel operating costs per day(3)	$	6,891			$	6,592
LR2
TCE per revenue day (2)	$	11,947			$	25,914
Vessel operating costs per day(3)	$	6,675			$	6,742
Average number of vessels	42.0				42.0
LR1
TCE per revenue day (2)	$	11,228			$	20,296
Vessel operating costs per day(3)	$	6,646			$	6,678
Average number of vessels	12.0				12.0
MR
TCE per revenue day (2)	$	11,281			$	20,866
Vessel operating costs per day(3)	$	6,974			$	6,422
Average number of vessels	63.0				60.8
Handymax
TCE per revenue day (2)	$	8,844			$	22,564
Vessel operating costs per day(3)	$	7,280			$	6,734
Average number of vessels	17.3				21.0
Fleet data
Average number of vessels	134.3				135.8
Drydock
Drydock, scrubber, ballast water treatment system and other vessel related payments for owned, sale leaseback and bareboat chartered-in vessels (in thousands of U.S. dollars)	$	16,601			$	63,486

(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, finance leased 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, finance leased 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 our owned, finance leased or bareboat chartered-in vessels, not our time chartered-in vessels.

Fleet list as of May 6, 2021

	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 Fontvieille		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
21	STI Ville		2013		49,990		—		SMRP (2)		MR		Not Yet Installed
22	STI Duchessa		2014		49,990		—		SMRP (2)		MR		Not Yet Installed
23	STI Opera		2014		49,990		—		SMRP (2)		MR		Not Yet Installed
24	STI Texas City		2014		49,990		—		SMRP (2)		MR		Yes
25	STI Meraux		2014		49,990		—		SMRP (2)		MR		Yes
26	STI San Antonio		2014		49,990		—		SMRP (2)		MR		Yes
27	STI Venere		2014		49,990		—		SMRP (2)		MR		Yes
28	STI Virtus		2014		49,990		—		SMRP (2)		MR		Yes
29	STI Aqua		2014		49,990		—		SMRP (2)		MR		Yes
30	STI Dama		2014		49,990		—		SMRP (2)		MR		Yes
31	STI Benicia		2014		49,990		—		SMRP (2)		MR		Yes
32	STI Regina		2014		49,990		—		SMRP (2)		MR		Yes
33	STI St. Charles		2014		49,990		—		SMRP (2)		MR		Yes
34	STI Mayfair		2014		49,990		—		SMRP (2)		MR		Yes
35	STI Yorkville		2014		49,990		—		SMRP (2)		MR		Yes
36	STI Milwaukee		2014		49,990		—		SMRP (2)		MR		Yes
37	STI Battery		2014		49,990		—		SMRP (2)		MR		Yes
38	STI Soho		2014		49,990		—		SMRP (2)		MR		Yes
39	STI Memphis		2014		49,990		—		SMRP (2)		MR		Yes
40	STI Tribeca		2015		49,990		—		SMRP (2)		MR		Yes
41	STI Gramercy		2015		49,990		—		SMRP (2)		MR		Yes
42	STI Bronx		2015		49,990		—		SMRP (2)		MR		Yes
43	STI Pontiac		2015		49,990		—		SMRP (2)		MR		Yes
44	STI Manhattan		2015		49,990		—		SMRP (2)		MR		Yes
45	STI Queens		2015		49,990		—		SMRP (2)		MR		Yes
46	STI Osceola		2015		49,990		—		SMRP (2)		MR		Yes
47	STI Notting Hill		2015		49,687		1B		SMRP (2)		MR		Yes
48	STI Seneca		2015		49,990		—		SMRP (2)		MR		Yes
49	STI Westminster		2015		49,687		1B		SMRP (2)		MR		Yes
50	STI Brooklyn		2015		49,990		—		SMRP (2)		MR		Yes
51	STI Black Hawk		2015		49,990		—		SMRP (2)		MR		Yes
52	STI Galata		2017		49,990		—		SMRP (2)		MR		Yes
53	STI Bosphorus		2017		49,990		—		SMRP (2)		MR		Not Yet Installed
54	STI Leblon		2017		49,990		—		SMRP (2)		MR		Yes
55	STI La Boca		2017		49,990		—		SMRP (2)		MR		Yes
56	STI San Telmo		2017		49,990		1B		SMRP (2)		MR		Not Yet Installed
57	STI Donald C Trauscht		2017		49,990		1B		SMRP (2)		MR		Not Yet Installed
58	STI Esles II		2018		49,990		1B		SMRP (2)		MR		Not Yet Installed
59	STI Jardins		2018		49,990		1B		SMRP (2)		MR		Not Yet Installed
60	STI Magic		2019		50,000		—		SMRP (2)		MR		Yes
61	STI Majestic		2019		50,000		—		SMRP (2)		MR		Yes
62	STI Mystery		2019		50,000		—		SMRP (2)		MR		Yes
63	STI Marvel		2019		50,000		—		SMRP (2)		MR		Yes
64	STI Magnetic		2019		50,000		—		SMRP (2)		MR		Yes
65	STI Millennia		2019		50,000		—		SMRP (2)		MR		Yes
66	STI Magister (formerly STI Master)		2019		50,000		—		SMRP (2)		MR		Yes
67	STI Mythic		2019		50,000		—		SMRP (2)		MR		Yes
68	STI Marshall		2019		50,000		—		SMRP (2)		MR		Yes
69	STI Modest		2019		50,000		—		SMRP (2)		MR		Yes
70	STI Maverick		2019		50,000		—		SMRP (2)		MR		Yes
71	STI Miracle		2020		50,000		—		SMRP (2)		MR		Yes
72	STI Maestro		2020		50,000		—		SMRP (2)		MR		Yes
73	STI Mighty		2020		50,000		—		SMRP (2)		MR		Yes
74	STI Maximus		2020		50,000		—		SMRP (2)		MR		Yes
75	STI Excel		2015		74,000		—		SLR1P (3)		LR1		Not Yet Installed
76	STI Excelsior		2016		74,000		—		SLR1P (3)		LR1		Not Yet Installed
77	STI Expedite		2016		74,000		—		SLR1P (3)		LR1		Not Yet Installed
78	STI Exceed		2016		74,000		—		SLR1P (3)		LR1		Not Yet Installed
79	STI Executive		2016		74,000		—		SLR1P (3)		LR1		Yes
80	STI Excellence		2016		74,000		—		SLR1P (3)		LR1		Yes
81	STI Experience		2016		74,000		—		SLR1P (3)		LR1		Not Yet Installed
82	STI Express		2016		74,000		—		SLR1P (3)		LR1		Yes
83	STI Precision		2016		74,000		—		SLR1P (3)		LR1		Yes
84	STI Prestige		2016		74,000		—		SLR1P (3)		LR1		Yes
85	STI Pride		2016		74,000		—		SLR1P (3)		LR1		Yes
86	STI Providence		2016		74,000		—		SLR1P (3)		LR1		Yes
87	STI Elysees		2014		109,999		—		SLR2P (4)		LR2		Yes
88	STI Madison		2014		109,999		—		SLR2P (4)		LR2		Yes
89	STI Park		2014		109,999		—		SLR2P (4)		LR2		Yes
90	STI Orchard		2014		109,999		—		SLR2P (4)		LR2		Yes
91	STI Sloane		2014		109,999		—		SLR2P (4)		LR2		Yes
92	STI Broadway		2014		109,999		—		SLR2P (4)		LR2		Yes
93	STI Condotti		2014		109,999		—		SLR2P (4)		LR2		Yes
94	STI Rose		2015		109,999		—		SLR2P (4)		LR2		Yes
95	STI Veneto		2015		109,999		—		SLR2P (4)		LR2		Yes
96	STI Alexis		2015		109,999		—		SLR2P (4)		LR2		Yes
97	STI Winnie		2015		109,999		—		SLR2P (4)		LR2		Yes
98	STI Oxford		2015		109,999		—		SLR2P (4)		LR2		Yes
99	STI Lauren		2015		109,999		—		SLR2P (4)		LR2		Yes
100	STI Connaught		2015		109,999		—		SLR2P (4)		LR2		Yes
101	STI Spiga		2015		109,999		—		SLR2P (4)		LR2		Yes
102	STI Savile Row		2015		109,999		—		SLR2P (4)		LR2		Yes
103	STI Kingsway		2015		109,999		—		SLR2P (4)		LR2		Yes
104	STI Carnaby		2015		109,999		—		SLR2P (4)		LR2		Yes
105	STI Solidarity		2015		109,999		—		SLR2P (4)		LR2		Yes
106	STI Lombard		2015		109,999		—		SLR2P (4)		LR2		Yes
107	STI Grace		2016		109,999		—		SLR2P (4)		LR2		Yes
108	STI Jermyn		2016		109,999		—		SLR2P (4)		LR2		Yes
109	STI Sanctity		2016		109,999		—		SLR2P (4)		LR2		Yes
110	STI Solace		2016		109,999		—		SLR2P (4)		LR2		Yes
111	STI Stability		2016		109,999		—		SLR2P (4)		LR2		Yes
112	STI Steadfast		2016		109,999		—		SLR2P (4)		LR2		Yes
113	STI Supreme		2016		109,999		—		SLR2P (4)		LR2		Not Yet Installed
114	STI Symphony		2016		109,999		—		SLR2P (4)		LR2		Yes
115	STI Gallantry		2016		113,000		—		SLR2P (4)		LR2		Yes
116	STI Goal		2016		113,000		—		SLR2P (4)		LR2		Yes
117	STI Nautilus		2016		113,000		—		SLR2P (4)		LR2		Yes
118	STI Guard		2016		113,000		—		SLR2P (4)		LR2		Yes
119	STI Guide		2016		113,000		—		SLR2P (4)		LR2		Yes
120	STI Selatar		2017		109,999		—		SLR2P (4)		LR2		Yes
121	STI Rambla		2017		109,999		—		SLR2P (4)		LR2		Yes
122	STI Gauntlet		2017		113,000		—		SLR2P (4)		LR2		Yes
123	STI Gladiator		2017		113,000		—		SLR2P (4)		LR2		Yes
124	STI Gratitude		2017		113,000		—		SLR2P (4)		LR2		Yes
125	STI Lobelia		2019		110,000		—		SLR2P (4)		LR2		Yes
126	STI Lotus		2019		110,000		—		SLR2P (4)		LR2		Yes
127	STI Lily		2019		110,000		—		SLR2P (4)		LR2		Yes
128	STI Lavender		2019		110,000		—		SLR2P (4)		LR2		Yes
129	STI Beryl		2013		49,990		—		SMRP (2)		MR		Not Yet Installed	(5)
130	STI Le Rocher		2013		49,990		—		SMRP (2)		MR		Not Yet Installed	(5)
131	STI Larvotto		2013		49,990		—		SMRP (2)		MR		Not Yet Installed	(5)
	Total owned, sale leaseback and bareboat chartered-in fleet DWT				9,223,160

(1	)	This vessel operates 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 the Scorpio LR1 Pool, or SLR1P. SLR1P is a Scorpio Pool and is operated by SCM. SLR1P and SCM are related parties to the Company.
(4	)	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.
(5	)	In April 2017, we sold and leased back this vessel, on a bareboat basis, for a period of up to eight years for $8,800 per day. The sales price was $29.0 million per vessel, and we have the option to purchase this vessel beginning at the end of the fifth year of the agreement through the end of the eighth year of the agreement, at market-based prices. Additionally, a deposit of $4.35 million per vessel was retained by the buyer and will either be applied to the purchase price of the vessel if a purchase option is exercised or refunded to us at the expiration of the agreement.

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 2020 and 2021 were as follows:

Date paid	Dividends per common share
March 2020	$0.100
June 2020	$0.100
September 2020	$0.100
December 2020	$0.100
March 2021	$0.100

On May 6, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about June 15, 2021 to all shareholders of record as of May 21, 2021 (the record date). As of May 6, 2021, there were 58,369,516 common shares of the Company outstanding.

$250 Million Securities Repurchase Program

In September 2020, the Company's Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its Senior Notes due 2025 (NYSE: SBBA), which were originally issued in May 2020, Convertible Notes due 2022, which were issued in May and July 2018, and Convertible Notes due 2025, which were issued in March 2021. No securities have been repurchased under the new program since its inception through the date of this press release.

At the Market Equity Offering Program

In November 2019, the Company entered into an “at the market” offering program (the "ATM Equity Program") pursuant to which it may sell up to $100 million of its common shares, par value $0.01 per share. As part of the ATM Equity Program, the Company entered into an equity distribution agreement dated November 7, 2019 (the “Sales Agreement”), with BTIG, LLC, as sales agent (the "Equity ATM Agent"). In accordance with the terms of the Sales Agreement, the Company may offer and sell its common shares from time to time through the Equity ATM Agent by means of ordinary brokers’ transactions on the NYSE at market prices, in block transactions, or as otherwise agreed upon by the Equity ATM Agent and the Company.

There is $97.4 million of remaining availability under the ATM Program as of May 6, 2021.

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 5.3 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 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 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 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 2021 Financial Results Compared to the First Quarter of 2020". 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 Loss to Adjusted Net Loss

		For the three months ended March 31, 2021
							Per share					Per share
In thousands of U.S. dollars except per share data		Amount					basic					diluted
	Net loss	$	(62,394	)			$	(1.15	)			$	(1.15	)
	Adjustments:
	Loss on Convertible Notes exchange	3,856					0.07					0.07
	Write-off of deferred financing fees	1,275					$	0.02				$	0.02
	Adjusted net loss	$	(57,263	)			$	(1.05	)		(1)	$	(1.05	)		(1)

(1) Summation difference due to rounding.

There were no Non-IFRS adjustments to the Net Income for the three months ended March 31, 2020.

Reconciliation of Net (Loss) / Income to Adjusted EBITDA

		For the three months ended March 31,
In thousands of U.S. dollars		2021					2020
	Net (loss) / income	$	(62,394	)			$	46,627
	Financial expenses	34,067					44,765
	Loss on Convertible Notes exchange	3,856					—
	Financial income	(225		)			(565		)
	Depreciation - owned or finance leased vessels	48,784					46,841
	Depreciation - right of use assets	11,841					13,197
	Amortization of restricted stock	6,192					7,845
	Adjusted EBITDA	$	42,121				$	158,710

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 management, length and severity of the ongoing novel coronavirus (COVID-19) outbreak, 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, 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.

Scorpio Tankers Inc.
212-542-1616