- Earnings call transcript Q4 2022

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Operator

Hello, everyone, and welcome to the Scorpio Tankers Incorporated Commercial Update Conference Call. After today's presentation there will be an opportunity to ask questions. Please note today's event is being recorded. At this time, I'd like to turn the floor over to James Doyle, Head of Corporate Development and IR. Please go ahead, sir.

James Doyle

us joining for you today. Thank Scorpio Welcome Call. and Update Commercial to the Market Tankers

may On Emanuele website, Officer; today Officer; me is we the with call release, press are Commercial Earlier President; which forward-looking Mackey, as differ uncertainties. issued XX, XXXX, December The a on Nielsen, on call Robert Cameron this today, set Lauro, and those Chief information from risks Dencker Operating is may materially of statements our Lars contain forth discussed available Director. today, scorpiotankers.com. Actual statements. involve results based on information such that Bugbee, and in Executive Chief

the call Scorpio our webcast For of that and forward-looking a internet in as is is this also be the archive audio investor and will uncertainties, page live of the made the Call broadcasted risks recorded An XX release the days. playback for of statement SEC on are participants approximately you Tankers' should the relations being conference purposes. filings. on advised disclosure these for being review press website the available as discussion of well

reports will on webcast. short will available presentations. scorpiotankers.com We That page presentation, we the the and After Q&A. also slides under presentation investor to a today. The be at available relations the is be presentation giving on go will

number to two. questions limit of For those questions, the please asking

And the over modeling to that, questions, to after Robert or call. would with President, Bugbee. any like For please out turn our reach I me to it Brian

Robert Bugbee

you so much. thank ever Hi,

that analysts shareholders, thank you all, the thank we supporting of to have. our and First you to

in the entered that, entered look, I holiday season. we We cheer. think good had

I this own the that end you be are of for going STNG, rates girls those having think boys I'd like that have who don't just through and have actual related few have of lots STNG, to short been all at STNG go year so naughty good the not that and and year. the I presents look to quickly. going been a I And presents. you you are of clearly of table itself and or think at to the own little bit release many press think to

important. very it's think I

They the so quarter. On by expectations analysts' are is we a happen. the are and market what consensus, could beat not what They're rates solid. are far going most out in really they that right on in we this by themselves see going -- but beat And themselves and were may booked October. we side, confirmation there those the of show to what left-hand actually now, saying they

on there's until, themselves, we these rates. are in As until of the and been tremendous right-hand see X days let's seeing can gain and the Friday those that December up now can last see what a left. fixing open Friday, rates in by surpassed have say, And last we in the XX% between basically, up Friday, market right market. But about the fixtures what we're side, we're

the that high high time could year quite though bookings could are of even to fourth so for affect put And fixtures quarter, XX% last actual that a starting we're could it that first be So be have this at for that materially really doing delta. those the quarter. in the book

no on now first the see which to huge. you'll rates don't see we are first one [ph] opening you very quarter fundamentals market Northern seeing We've coal outstanding time market fourth charter closing have the in into fixtures a moved And are quarter going The that like in and to at rates. start got have and simply numbers introduce through this extraordinary There's other coming already presentation, all-time I'd the through the quarter details here, strengthening increases that we've by how what Hemisphere Q&A to pass to highs. seasonal have at the are have strength. much. And table, numbers We're some being backing respected that's the with at year real James say beyond underlying than So moment. are the get very we coming that we'll we that then the strong is what Lars. a way real and and in these right charter a strongly. the this, and that, here here for averages you we it higher that's and off market got Thank we have you're into very are

James Doyle

Thanks, year for not it's events on exciting a wanted as we exciting an the LRXs brief as Robert. $XX,XXX the but commercial at update been recent provide day, Well, and before to discussion. company, per

six Tankers please Slide option the vessels quality So transforming notice reduce as In the August, when XX on gave we to completed and investment. flows debt of close by are purchase balance company if Strong options under vessels to leaseback. And we to purchase on given cash could exercise under leaseback Scorpio in sale improving the more since go to notice will have an exercise X. total, $XXX December, sale which million. the of we sheet financing,

subject we plus lease July, replacing. we $XXX.X shares been margin of repurchased two with facilities it have by announced up an expensive more with to reflects from financed the improvement the $X.X below less approximately our with expensive day, six XXXX conversion outlook $XX.XX. December bank repurchases Slide to new X.X% final price average shares billion the additional million million And So company's bond and financing. were million. a continued the of accelerate $XX,XXX this we company's to approximately last is December, to its bear flow, since and And $X of for the approval with new with interest have cash lastly, credit at And X, at entered replace $X.X was rates was facilities which repurchasing into $XX.X but agreement customers. time repurchased which than at Well, of but it's is commercial of $XXX.X year. LRX in lower today, can we a SOFR the lease vessels. million The X.XXX%, for the In please. charter customer reduce that billion an XX per and for of financing X.X% debt substantially of far, repurchases, time X.X% fleet indebtedness company a financing lease company's convertible owned the will the the lease

progress X, with Slide So the please. excited we're we're making. very

are substantial a TCE a share. day. impacting On over booked equate would or basis, and So Global at $XX,XXX factors far rates. an supply. little rate of increase in record the annual to fourth seen the free factors $X.X to has average over in quarter, the a we've per $XX weaker with of XX, those flow inventories fleet please. a $XX $XX,XXX which degree cash resilient. an continuing seasonally this has billion have Recently, billion Since per tanker sensitivity would for the free to day, But March, XX, unprecedented. refinery the can The Slide would periods average, as to Despite December share. product refined lows XX,XXX event in been remain churn you Slide extending demand company market our are even from $XX,XXX day, confluence and maintenance. $X markets or almost say is as the in between tell please. outpace $XX,XXX during fixtures, rates current per such cash Rates the this above that. well oscillated in generate rates year,

XX.X% afar. and Product closures reached product have these ever At are demand experiencing day significantly. much The product two regions last more the over Post supply refinery the and refinery operated are last apparent. refined the closures levels immediate increase the needed. refined near are distillate two products. to year as tankers from graph. record export record averaging being drawn Higher product Robert U.S. with demand as inventories XXX are impact exports than years, barrels inventories more crude further expected also have Over of winter of are places and but next now million globally have in increased million two imports first XX.X Both exports and is Australia barrels both XX, December. as levels. utilization, increased. over like the With weeks, runs its refined Since product Seaborne refineries U.S. same quotas, maintenance used and see mentioned, increasing, Gulf refined very historic capacity at demand have exports refining of weeks in approaches over through have million of Europe decreased over China's per lifting can lows, XXXX. XX.X% the barrels time, oil to runs needed now, XXX Slide and has please. And barrels. refinery and you

However, more maintain the unclear restrictions What barrel Trade barrels are demand incremental to increasing. increases, if to to current will exports and needed. the and able ease are difficult The changing, is routes levels. as at are is that COVID clear are levels record ton domestic miles it's be China find. continues become

there's European Eastern new $XX crude the prohibited to Russian that in price at refining critical especially insurance week, a please. XX, EU transporting year, ban, an oil Russian crude sold its Next finance. to any Russian is product additions the change vessel Middle a above and impact Last refined capacity Slide will flows. incremental demand, meet import from if stating be implemented price cap

since While February Russian a far, incremental have exports buyers the China size by have and of products. Ukraine. X, been for the crude EU refined X On declined small seaborne is will ban a invasion India implement week XX%. similar so sample the almost

ton-mile product shift sourced after two Slide If a be and exports a different exports miles. please. flows. to products have barrel X, exports increased, a decline, are we far rerouted in the the substantial replacement In requires see supply yet months, to scenario need event Russian Russian demand. Russian increasing product ton-mile longer ton imports sending to have of gone regions major Every the And be will in to refined actually, refined there Europe. over afield, from in have most a XX, increase distance, last and to February further increase leading vessel substantial demand. tightening would So

increase record please. a refinery imbalances to potential dislocation, assumptions XX, yearly to individually, due less year, the the day environments increases year. fuel much product almost in next fleet are and barrels of confluence market Today, of different. limited to and Ukraine. fleet attractive scrapping by demand, the structural the three XXXX Lower Since historically increase upcoming potential the gasoline, freight at and driven equation. fleet years. exports quarter-over-quarter exports invasion are age to years. global well and to been Supply higher will Seaborne ton dislocation ton-mile upcoming increases growth. year, crisis. Yards constructed shrink over today's low of products expected persist X% outpacing are Russia's until product the expect and the the refined next most miles, regulations. scrapping Next in fleet The flows, order. XX product over on years, regional order impacts and in X% oversupply. booked financial demand fleet assumptions, growth we typically over changes million environmental the is demand XXXX, X naphtha is increasing from environmental increasing and are inventories, factors with expected of regulation, and due Using Russian part rate a demand demand with three expected this have XX grow last the refined using the could increased and Slide next the of book The due X.X% minimal in of exports system, exports to have even seaborne next ton-mile during in fleet to X.X% refinery will X.X% than be Seaborne jet

However, they over like that, are to unprecedented. turn collectively, I'd to With Q&A. it together,

Operator

question-and-answer this Ladies begin we [Operator session and gentlemen, at Instructions]. will time the

your ahead Our first question today with Jefferies. go Please Nokta question. comes from from Omar

Omar Nokta

here your and highlighted, market now for to on are been Thanks to six quarter LRXs to product in or weeks could wanted you a this just positive exceptional Robert, basically, frame Clearly, Hey point lot earning, rates a earnings you earnings. the or you. maybe get you the you what's reported What's especially $XX,XXX morning. and since as an recently, sheet. extraordinary the so level. and XQ happening, XQ of to off going and And ask as I year of MRs? balance are be on the to both happened cause $XX,XXX in guys. things your Good the looks the here, show market starting the at Thank day top if update. where

Lars Dencker Nielsen

sustainable a What have ship honest, To seen as was enjoy good as we front-haul Hi, very here. see a can And owner strong. we this is is give continued economics be one stab also market the just Omar. that then things the well. now improvement strength. I'll back even Yes. we of backhauls on of a that

when $XX,XXX $XX,XXX it at the a as that will So But $XX,XXX, was of probably probably a Asia, has presented of lot really the day. the market, where for out TCX is at with chances that you $XX,XXX kind at a exports fact and today because time, print look matter Index to itself options day. And the these North huge of the owners. optionality of of destination a it of kind

it, LRXs, of it call $XXX,XXX a or Australia. into the day We out exports down now been What with of backhaul with So $XXX,XXX about of back the Singapore a the Australia let's $XXX,XXX North at we've well can day. out day. also itself condensate, Asia coming for we has with AG the Mediterranean. moving the which at, day end a is moving in into also reload thing quarter out moved which a nifty to seen as We're are also increase we LRXs into a fourth as economics an of is $XX,XXX presenting

from So light to ends has back active there Med an market of going been moving Asia. the

being into loading into have out been Mediterranean of as to ships and So the What to vessels Asia. the successfully of been is the our here Mediterranean elongation able well we quite with as Continent we're back have seeing we fixing Continental, distillate positions. an

December to a even And react XX that seen time. positively. you LRXs, Middle view East at we're my the of start are it seeing the long probably to seeing if position have look as we for So tightest on well is that market the is on position today the going very in is you that more

this it's today, reality, to going on $XX,XXX Worldscale higher terms in are triangulation, substantially probably be But trading that from can rates that. printing we capacity So all round of XXX, at voyage. in pure see of because

Omar Nokta

a at least are Russian today. coming seeing still $XX,XXX this, what $XX,XXX to of low the make Thanks seeing today like coming Lars. a sounds it wanted to that guess February? I James Yes, but mentioned that to Or sure, come? and we're relative And what in I of you're products as result is catalyst any ban on

Lars Dencker Nielsen

move I really going believe it's Xth past a catalyst that's the to February. show itself as we of

lot that and to from as seen up Black But of of is it doesn't ramping the that the you're February. have much in. important, we're what matter do Europe of European same as up Xth and as destinations, volumes We a Baltic And still matter the stocks can the fact is, is increase as the market moving really this said, seen the continuing. an same and in the the is we've James into obviously molecules Sea

Middle in Gulf. in up. You Far all market, on are South in the or ramping Eastern All be the can be you can Eastern America U.S. in markets the can you market, be sizes

have So that weaknesses any moved area another you where area. are could that positions you don't being to from say

You've with good good or irrespective all of markets areas got at market the happening Russia. very what's in moment, very,

And been also has the product imports as this seeing the of But further. miles fifth increase Europe clearly, past products LRs ultimately also to of distillates over will go replacement into ton certainly in of particular. MR couple have February increase Now carriers. last been the for months for deadline, will we have that the what and in travel we

even that are running thing, So harder. you've course, of got refineries one

board. utilization way will the even of the of across potential got increase over some tripping course, the which, You've of run hard, The increase due these moving to up start high arbitrages so the dislocations further. rates they also and them will

both increase it to also owner in West in there's can seeing which good out of news. wishes very South that and India, to for in So and products see of we're on going But going also Europe. all is the who we've stuff triangulate very effectively long-haul volumes optionality Africa, to also not West seeing Middle Coast it's product certainly of certainly seen We to necessarily so move. East China destination, and Again, America ship to and going this we're on. only a plenty

Omar Nokta

Yes. it. the at is LRX, the And Got Thanks on for one year on think, from charter, high, the new me, market I least, for additional in Lars. color, three the final that the we've recently. one seen $XX,XXX what just

on this that forward delivery basis. noted is You a

is you thoughts doesn't Just any guys, forward charterer that from far the deployment? how take wanted to sense ship a And today. why that on get

Lars Dencker Nielsen

years, even well, we're not for leave got position, spot very mean, anxious quarter for somewhere our not at a partly think We've high the first still we present think fix I out. you're I still the And confident subject the the the one you're not when I tonnage -- think, I I too market. quarter. why obviously charterer to it's it is is like if -- great say three to market a anxious -- rate a We're is not hot, position. necessarily, is just to would well. as first we'll that the that. $XX,XXX very why very

Robert Bugbee

certainly charters Omar, customers there's market that and that, I from time think has plenty project the abated. interest in mean of not activity in our the I'll take long-term in seeing it just tier forward. levels terms wanting to inquiry going that we're I add to of charter department, top

Omar Nokta

Well, guys. over. it will I good. turn thanks Very

Operator

your with question. next Please from Clarksons from comes question ahead Our Frode Securities. go Morkedal

Frode Morkedal

really is yes. it Thank strong, strong. guys. Hi It you. Yes, strong. is The market's

could is me in what's the future? Considering the in that December. market next you day, the by the $XX,XXX tell So outlook LRXs improving day per for

Robert Bugbee

to $XX,XXX, at on, already when first back of $XXX,XXX, Hold it your was the just Lars said that sort -- we $XXX,XXX controversial a the me he's neck said on $XXX,XXX LRXs. the you're that credit day on give higher that day to very That going now to than winter. while you you that time a on call. see fixing to want the say. $XXX,XXX, your, first. quite a some I'd thought I fixed winter, to you're at what has vessels would this most going like would stuck know time, the in a out but by a and Handysize see be actually I that see as comment just LRXs extravagant on for probably probably this will $XXX,XXX was

So Lars, I add if to you want that. don't know to

Lars Dencker Nielsen

that is winter, surprise It already MRs LRs $XXX,XXX LRXs, will this me over which see would we obviously Handies or not on or doing.

all segments fire. are think on I

Frode Morkedal

That's unusual lengths to question that, with connection explain I my movements hasn't So in you February Perfect. this any is, product guess because right? maybe yet, in order are increasing? recent And months? great. in X happened arbitrage have seen next ballast

Lars Dencker Nielsen

I decreasing. we've are LRXs a lot Frode, last as at would a moment on triangulation lengths We're than to more ballast seeing ever We're seen. MRs well. on say the answer question, of your seeing triangulations lot

mentioned I And Coast increased alone. exports trebled of of of of They're They've kind certainly India. Middle it going Europe year comes seen in When increasing. Jizan. West with out So question, not They're the a that has seeing think the I in coming earlier, this lot production up ramping first processing their in the the part up -- in just product, of the we're ramping East. to it China, certainly Azure. as that is we've high to course, also

It's a We're seen going lot to Australia, before So is longer America. also it mentioned going long-haul into volumes than It's Western of of Africa it's going South before, not to lot Europe. lot a a as going of also seeing we we're well. only seeing as volume. going haul down to we've

for it's there that great but of ban defined pushing it preparing miles, ton this February, strength. around is post Xth market the it the into of of globe fact is of terms in the So this is by fundamentals ourselves only kind not

Frode Morkedal

could ballast have be more What the on guess to least be I length, at inefficient color. you good round guess -- argued the That's be Russian I to basis. think? on moving voyage products Yes. do

Lars Dencker Nielsen

assume moving because they'll the been is doing Xth only Well, they're February, would as obviously, come dark be afield now, will Russian, this of that product this we going and ballasting fleet be called what be is further to well. as -- what's back. the They

normal contract inefficient your fundamentally and that fleet is that utilization supply course, means utilization that certainly overall. So particular of increase the of which, fleet, the will of will

Frode Morkedal

That's Perfect. Thank you. all.

Operator

next from Our Ben question. with ahead from Stifel. Nolan go Please question comes your

Benjamin Nolan

Appreciate spot this fix Good at you already guys. mentioned into you it. update. Robert, point, Hey, to guys that XQ. are had beginning

rate that maybe can you already much the release XQ in levels there? and frame in the have laid you if how of press of are booked, curious out Just you they have kind the

Robert Bugbee

of Well, the as be to so be we I could putting the aren't Friday and much, at saying -- down those a this Lars if calculations basically we haven't -- I lot that this that can't fixtures what an Friday fixes LRX up see fixes rate, those forward, were $XX,XXX, could they week, for the voyages starting the of went in you're to talking now at are calculations Right is $XX,XXX, longer between you infer going plus now, at be done in the Friday, to infer week books further the But in they're that the QX. X some fits do up there. that about let's last guided that only of Those -- $XXX,XXX. rate going December you're rates how the, that. starting say, would can of starting we kind $XX,XXX you is would Friday on last say would until of that averages, closed

of QX. voyages each and as into more the go So and week, you chop more through

first three rates, everyone weeks. fourth you rates, high on is of and that have on think, December, basically, earn and comes and By weeks, super just definitely have by in these be three three January is depth weeks could XX% what's those rates present weeks you this end first third year, of earned what the what virtually booked the would QX the you quarter in end the those had, present let's at the of could three think the So which say, first your they breadth sheet. your quarter have the your related of book. back entire you earnings I to an to time have that you'll exciting such XX, so first and cash position get That XX% effect to immediate are on balance the

So If I then away can approximately it January would calculate by, you you X%, another if let's a just say back count then back bookings week backwards. XX, X% chop that's say, it's X%, take how that, XX% to forward. chop a week, again, from

Benjamin Nolan

That's -- operate don't simultaneously. or and to season, as we're do next going How are in. laid year's we sanctions market color. be then a square I Lars the that with refinery think of about relates sort the mean does could -- And appreciating the should maintenance inefficiencies close the I how pretty to just circle catalyst February size season when turnaround how you helpful all fleet. or of it that as to coming those you that shrink of things the that Okay. effectively know, how of out, sort create on that coincides are sanctions the

Lars Dencker Nielsen

part quarter, had the tends steam look in be the full XXXX what turnarounds, the that ahead of Well, third quarter, strongest refinery to if of second refinery seasonality we it meant, in which comes we terms maintenance period. at when to

to just X.X X.X% I million barrels. December think to and compared this market for outage as strong. we're That in the was in October was down October, also month

high with the utilization, seeing of kind with that type we're that extenuating capacity think is of what so I bottlenecks. element no today underlying theoretically of now

structural. this is So

that seasonality into So supply will of they further see afield. of kind any that through maintenance to with terms ride saying kind a has turnaround, and that to them will that of of of in have in there's smaller available terms refiner its take and I to a ships market only this fleet refinery strength. And maintain them go

Benjamin Nolan

Lars. all Okay, Appreciate. right. Thanks

Operator

Hoexter question. from Merrill Bank ahead question America next your with Ken Our go Lynch. Please comes from of

Ken Hoexter

that into typically talk a getting getting and not goes in know does much to -- what if orders on now? something interest and downturn Great. in does pushing the are certainly than too, guess, I so Robert, Congrats I of Hey, you what's was ever it the interest time when keep finally rates the good, longer too working details? through about in you going -- book, the cost much you're from keep point thought. charter this up off, going view, I'm there's an newbuild our market Maybe major? turn on analytical of order guess things I but wrong. outs

Robert Bugbee

that's a I Yes, think great question.

the a -- one the time Lars think I $XX,XXX, year actually it's for $XX,XXX day. was rate, whether year. mean of discount in there's at one place. the is okay it's moment, me take morning It's think I -- an this LRX, in in okay I charter to an place a major they've telling in enough able been

the getting first the or profit So charterer is of The at all part cetera. of on rates, it. $XX,XXX points, three the et kind a $XX,XXX, year

So extremely comforting an for strong secure a a kind market. tonnage period a thing, of that's profit to while on getting

they're able the uncertain, years. the at are It anything. massively have down get and everyone curve, So do further to doing discounted, they've the exposed front. out. to just doesn't get anything left you at they more that themselves They're they present alleviate they for ship into Whereas, short cash or to not kind were The and present, were the the problem to coverage when cash they're flow. getting not newbuilding, a tonnage some that translate if of

to charter why else has is we're order the present. extremely for major, upstairs can. what now add, the So in future at and something we calculation year record prices Lars go a happy not stressed we if anything position a that three an to the right do worked unless in having for would does something And help

Ken Hoexter

take the Makes talked you sense. James, faster, Yes. debt of opportunity lot about to down a obviously.

something we tell like Are think Thanksgiving $XXX million, see there completely us I you rates. you -- year looks can look Robert, what's wait draw the and any normal And you're flow on down? can as billion. be calendar. until originally cash were, different to talking to a I you Obviously, constraints just than think you then typically always $X.X this into on next what going up now with

horizon changes run What the just So maybe you about? switches into going is the anything seasonally? maintenance of there is that it this? kind Or were on just seasonally refinery that talking here

Robert Bugbee

second…? Lars James, if and you first the play I go and want to

James Doyle

Sure.

So did Ken, or leases. the are vessels six year. still for under of have we more this end XX more that leases probably We

definitely more we've terms cash there's can those in have And doing Obviously, to draw those do. next commercial of on attractive. bank obviously, loans unencumbered, repurchases. flow. accelerate we'll as loans vessels the then we over and are down new through these it the the are loans really Recently, year, So and been financing

we're impact lower to that. point really at the and on you'll looking to continue of so going next to kind do And breakevens, forward look year, some to. to we're principal start interest And then which see

Robert Bugbee

products rates are to maybe not in of even itself distances things dark as We've look bullish X getting a if of we right in products you When going too very gas you the fact describe they're isn't from I occur. now in this because built. The now, bullish because fleet I now winter. see the going from, -- -- after complacency create a when situation hot. form being actually products. a are very in going got winter higher, at the to And some even so suddenly, products, world in all now taking it. seen already than know We've Northern that so seen moved then wacky to building. Hemisphere. is talking in red crude is to got can it's be know there in kind crude kind I it's something to we're of think more it's to or now, long shock these don't putting February the that it much because that. South China mean, is. mean you're to even things such even weak to oil comes more or to energy I is check push And fleet hard points I the of to what's inventory products going it, hot. think hard that's like taking the that of the that. Africa, And constructs. rates seen huge just market But They're to we inventories can India likely to same that's to that the are bullish way dark we've white despite from be that's for be And America word it's extreme We can moved about market need to -- I And cold. low. what mean, don't a bullish attempt don't with the you've I into very coming it's how

strong for early with maintenance period, through last little of way a hiccup market which actual to be because with but a Russia, capacity to tell, refinery to this itself, the say, season is nothing all with of to normal that this moment, is supply normally its because So hard bit anything at -- do of itself going the capacity the of and during the it through the think side season the mid-June. sort let's -- seasonal of would

Ken Hoexter

Wonderful. Hey, Robert so that. much for James. Appreciate and it. Thanks

Operator

Greg with Our BTIG. Lewis Please next your go question comes from ahead from question.

Greg Lewis

fixed I days not revenue plan -- and up think for update. see some as what any -- quarter? crude around quarter, fourth total ends there for about kind as that, about see as think kind in the just ballast is days looking for sometimes of Could and everybody, it's of We then with of color question being lot like are of some maybe us where us provide revenue guidance like helpful? also like of a And be you good percent unplanned leg a vessel. that we thanks maybe and zero a we Hey, really morning would we James, days. the for the any think in days that did I I'm days can thank that a you, the terms around -- and you there have give quarter

James Doyle

Yes.

and MRs. off-hire were the additional So those was days in some there updated

longer COVID taking So those China. came due docks a in bit down, dry and to restrictions little that's because the are

to have needs what it's probably than mutes on is that. generally, has and pretty what triangulation Asia the from the In of which And I more the obviously different bit is team Lars terms of him is But incredible see, probably been LRXs. let distillate on do crude well go speak rates is MRs very West. little able bit an his is think what And I'll we a known, little that this to a and to to surprising the where you the amount now triangulation.

some creating And we're And And also it's really well. you very look nice of benefiting that. benefiting MRs where as from very, are, benchmark the rates when and how backhauls. it's we kind at so that's

update, in I compared seeing difference at look probably you're the the you biggest to triangulation. crude. think we're And of if that now what current benefit doing that's the

Greg Lewis

Great. And did then I question. a have

more Atlantic MR we fix really it in to work. that market see get realizing tends to be, the we As we Basin and the

ahead Robert, at more volumes time is or to as out fair those loading that loadings to look As the actual it a its their mid-December, refinery I for or increase. loading of it? and bit, we way forward, i.e. [ph] rough XX of leg any a Is kind and of we as days fixing on that's rate? way a a the to -- starting kind Is today? as is the X or of vessel XX X Is like that East, think that touched runs way refinery -- realize there to think, we of kind cargoes that little think you today's actual on Middle today see about days? that about to fixed

Robert Bugbee

So don't little now…? Lars, a discuss you why bit

Lars Dencker Nielsen

between days. depending Middle an can more the East, to you be ships -- be weeks and and where for to need a particular it little will three to condensates probably three X weeks vary of -- even on it with be U.S. port look, to sure and maintain out, it's bit MRXs, North when tends loading it could west little mainly two with is, on two Gulf tends weeks comes XX also enough comes tricky to bit be X Asia, or but can X Australia that, about there It the out start further I'll cans. for low anywhere Yes. can be kind to MR, Greg, the that you it's days. it depending out, be that to it make if two, to it out, weeks than it's the U.S. that a to late even Gulf that's of have When or east is But when it where the right. comes shorter

Greg Lewis

where Great. other about seeing prove have are trying vessels or Okay. was crude then just authorities the that to on locking and it, And I as embargo rates did Turkish we one the the up of originated I the just those out think in everybody impact is question, guess from. oil crude the

headline in out Russian taking from knows what's of Baltic? of about rough terms as guidance region products, about Any think of embargo hold or coming February. Everyone kind coming you exports. numbers that's and the the in upcoming As that the what's of of seaborne the could market we talk early refined product to -- opposed

Robert Bugbee

transiting sanctioned, Black certainly place. coverage to have question. out product post making that, now coming is in February, that, Straits, It the was available terms has out supply ships not very, the thing -- wording because it what first clubs loading was that to out dark to which, down least we that maximize the of more sure think When P&I it of they it finding out Xth Sea, it's out with issue are of it adapted has but vessels is in knowledge, of of now comes is Sea. And CPC First sorted My to first the good I whatever of because able of been crude, enough in the a of that very volumes out. were has by of my is Turkish seen ships Black do ships kind can going to with than issues course, players, to around do at they're to with have so. all to they move sorted to fleet P&I now funny through. that, point different the an a the trying be of is, adopted point now the and or all, been Kazakh with more the the the here And -- of there's Baltic the

Greg Lewis

a everybody. port on Okay, great super helpful Thanks, you have are you and if holiday.

Robert Bugbee

you. Thank

Operator

for gentlemen, Ladies that, remarks. floor the today's Robert session. we'll back I'd question-and-answer with to over and turn conclude like Bugbee to closing

Robert Bugbee

limits, cover to by that and NAV speed the creating the now this Thank coming we for very that you. you been just implement a been driving call -- is on haven't continuing $XX to this a here. want March. serve longer becoming guys much, not reality. that, talked you market mean, an mean Clearly, various just it cold of I been very is wow, Thank share end bullish even the tight very about et And becoming no It's bullish, the that with I we've we inventories are to and in amazingly It's and comes enough. a NAV no I'd in the everybody. we covered. run you're fast down optimistic. and conference bullish. reality last just a like even is policies $XX wasn't especially We've either something government longer quickly bullish. way cetera,

you've in. got the it about it's too. the on know So much talked but call, It's earnings, X I coming we the not just things haven't value

Thanks. for So much again great position. a We happy wish trust. and holidays, it's your and very thank a you all your you very support

Operator

that gentlemen, We call conference for and do today's Ladies joining. will presentation. and conclude you thank

now your lines. disconnect may You

Scorpio Tankers (STNG) 16 Dec 222022 Q4 Earnings call transcript