Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello and welcome to the Scorpio Tankers Inc.

Second Quarter 2023 Conference Call.

I would now like to turn the call over to James Doyle, Head of Corporate Development and IR. Please go ahead, sir.

James Doyle

Thank you for joining us today. Tankers, XXXX Scorpio conference the to second earnings quarter call. Welcome

Brian are, call Cameron Chief Officer; Officer; with Officer. the Chief Emmanuel Chris Mackey, Chief Abella, and me Operating President; On Bugbee, today Lauro, Accounting Financial Robert Executive Chief Lee, Officer;

Earlier call quarter press that is August information of is our based release in The information X, second website, uncertainty. Actual materially and such differ set today, may risk statements on on involve our scorpiotankers.com. issued contain XXXX discussed today, which we may earnings statements. available on forward-looking those and this as results from forth

broadcasted filings a discussion scorpiotankers.com andsec.gov. not are participants is recorded the the earnings the review in available this days. are in For should Call made the for being Investor for audio our approximately the purposes. advised XX website these SEC and being webcast of An press playback release uncertainties, conference live archive of as Relations page of on is be which you statement well also disclosure and at of forward-looking on as that call the risks Tankers' will Scorpio Internet

on today. under will be go Q&A. short will a the we at Relations After available presentation, on presentation be Reports will also to Investor presentation giving available is scorpiatankers.com and We Presentations. slides the page The These the webcast.

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

question, please an the additional you If have rejoin queue.

Now, Officer, Lauro. like Emmanuel I'd introduce our to Executive Chief

Emanuele Lauro

you, everybody. us today, and for you joining Thank James thank

XXX and And to the the repurchased in which has company has quarter, leverage of of product billion pleased net and net by results. to the $X.X during financial generated EBITDA million company put to six billion this continues second been income. adjusted $XXX are EBITDA market another the The generated billion strong. $X adjusted context, last in income, $XXX quarter million have $X.X tanker in in reduced we and remain strong over We report company shares. and EUR quarters, million the into our In

to focus. total and shares The million primary our since capital almost of we the on share increase as and asset sheet. our of value. July the shares large progress made returning quarter, the Deleveraging given deleveraging repurchased in shareholders repurchases shareholders the XXXX. second been $XXX the half company's company repurchases which the we We has is that In discount at balance trading reflects for have refinancing are the our valuable to view a repurchases net

Today, billion liquidity. improve. $XXX closed In and our in facility. revolving we to continues have we sheet million balance July, $X Our term loan credit

flexibility are These financial We new a closing the accelerate the lowered the lease of the repurchases financing process expensive interest and facility. credit increase $XX new company's million margin, combined more facilities in of company. the of

low inventories, strong tanker and expect thank we We would demand fundamentals. growth support. global you a robust product to your forward, continued limited fleet for Looking to support like

a like now presentation, the to over I brief for would James to And James? call turn

James Doyle

as And We've and XXXX, X, in QX have little year. six we $XX repurchased we've million a Slide the quarters, seen please. billion generated environment an $X.X rate of highlighted, $XXX EBITDA. Emmanuel Emmanuel. the since dividends. you, million elevated last company's July since in over shares of And Thank last over paid

in turnout time XX the remaining please. X, market. and on contracts operating vessels had We the Slide spot XX vessels

upcoming. To have repurchase you lower see the these and interest vessels lease and under of margins. vessels can bank new to refinance expensive started continue facilities financing the repurchased right, some list under been of that We vessels with have to are

vessels. the have outstanding on debt we repaid today, of As XX repurchased or

ranges XXX from facility. margin SOFR of XXX $X billion a bank new points plus The the lease facilities XXX in process a one XXX plus $XX of we're loan we July, of LIBOR term our financing and have to to new million In closed points. closing and basis new margin basis facility our of

repurchased lease which that billion Slide months billion $X new Timing drawing Vessels with X, next under with additional lease increasing. please. vessels there vessels this financing today. financing lease can means be The between can differences facilities XX it We've made repurchasing we and vessels to in on significant lease repurchase at majority and $X.X periods financing repurchased. they are reducing financing expense progress of to year. appears times, down in of on that the be expect within from

timing. we the I to just will reduce wanted continue leverage. our highlight So, to

strong we keep but more the portion have an repurchase be of to vessels used on proceeds facilities, elevated earnings from financing. new will in mind, a balance to lease expect Given and cash this

Emmanuel is and $XXX Slide Today, we third With cash. $X.X billion has please. $X.X gross well to XX, we minimal in last today, debt have remained billion. and of quarters. Well, order, increase as as on newbuildings currently over million CapEx mentioned, will quarter. feel the debt very around three no positioned. $X.X this I have at in the declined Net And slightly billion

and of Slide two now a per in company $XXX rates These billion. are million QX August day now averaging increased day, free at exciting flow the close over $XX,XXX XX. north you're charters XX. $XX,XXX and is and as of The significantly we times. today. generated to At year at $XX,XXX has including are weeks have time cash almost $X.X that aware, certainly $XX,XXX last a so significant far, But leverage operating MRs

to decline as Middle from naphtha betas Slide the X and opportunities arbitrage refining lower opportunities quarter, LPG reduced saw Asia. trading Asian long-haul refinery a and reduced In from lower East activity rates. competition maintenance, XX, please. decline larger going significant and MR second refinery in margins a maintenance, limited volumes led and our the

of levels reverse. for stable, the remained headwinds fuel. cash in demand gasoline many such reflecting fuels are rates more much remain and jet underlying the strong rates as above QX these and process in MR global headwinds, Despite of the well consumer breakeven

large the Naphtha the suggests strong July at naphtha very substitution in has very LRXs. Refining next The for remain several and LPG a on curve margins the increase seen which occur months historical forward over will a levels for improved is constructive basis. LPG spread have and

outages in will the refinery of to will historically a rest rates. few where weeks And lastly, disruptions we last higher year. over they're volatility inventories through increased create have lead significantly strong supply scenario and think remain any Unplanned the rates the and going to increased

we months well It diesel region gasoline or inventory are And Slide well. typically, the XX, X-year they're matter summer robust This is still builds at in minimal season a the name. has product constructive tight year for of inventories winter in the please. strong demand half and have what and a doesn't and been. extremely is how Global average demand back seen below for highlights this diesel. very what ahead of the market

please. XX, Slide

year for second upwards. and product this the next have for Forecast of demand half the year refined revised

is inventories. our Second X against half the for higher this bullish demand to barrels day XXXX view, last. is additional strong this barrels of to than X one million be million demand of year-over-year expected low X In rates, to year historically million X million a most freight driver

jet due to for demand expected see to are is increases. gasoline, fuel to slower lower trucking and a expected diesel the large activity, naphtha at While pace increase demand

are We this seeing today. water demand on the

day are million barrels X more than X.X high million extremely and Seaborne averaging levels. XXXX volumes a remain to

consumption met to reallocating will imports within inventories global continue low Given be with increased through the barrels tankers world. product

please. XX, Slide

the like flows While is drive for demand Middle will Kuwait and capacity pre-COVID have impact ton-miles new increase changes to and the export above regional and is refining Australia capacity more dislocated, online levels led of export-oriented The coming an in coming continue and to lower structural refineries East. in are years.

increased imports East Russia. sanctions by million from the impact of We to barrels has seeing of are XXX,XXX its Middle U.S. Europe also the bags. X European on and

mile of miles increase these increases, and capacity driving ton reduced changes is ton supply an in tightens. investment demand All are as

XX, Slide please.

Over non-sanction few has MR are which normalized servicing today, our volumes vessels. supply Russian last reduced and have And trades XXX greatly, in trades. to of XXX Vessels on have vessels trading are levels. to into likely the not impact Russian significantly the which the of vessels move this trades exports in increased forward. and that Handymax of vessels trade declined impact the more and expected which refined the going The of Many of global are products will significant return months, is sanctioned in fleet moved to vessel premium old Russia have service and capabilities the years age XX a to their history. XX to vessels given

Slide XX, please.

a or have December, by all-time even line And well. you additional XXXX the book are From have the it's near rates new last months, we the tanker in environment, record as blue vessels. reached cyclical an strong was perspective, we the order XXXX. the a in from hopefully, rate recall, seen while XX levels increase, in rates over historically, evidenced volatile July surprising experienced so not graph. But that we orders July Thus, orders. product If

ordering, aging good product the XX, a a largely and in rates, It's orders, rationale increase Slide driven fleet for The is reason. please. been rationale market, outlook XX order book investing spot a vessels long-term The demand healthy has in time constructive strong tanker LRX also charter good by for year-to-date. company.

basically until ordered this are been orders stoical elevated, this with from XXXX to orders well LRX average XX up and LRXs their X-year And orders LRX year below are below While have only MR nonexistent averages. year, XXXX.

LRXs market, MRs clean part today similar LRXs to trading of aging LRX, in than replaced how increase crude the the And is are less we Max LRX XX% to within have have So, for in the of the optionality largely the to fleet, products. trade on vessel. the water compensate Tani

newbuild constraints this the vessels. shipyard. for vessels. are slots the placed long slots of the are to new delivery now of are gone. lead earlier times there addition, There through These were Orders ordering year In

XXXX and breakeven market. historical levels of expensive will cost interest the to million $XX was or build Xto needs and constructive New new LR a bills rising the high rates. delivery date are with compared require with A rate higher a XXXX, capital

different systems to environmental still Lastly, about there are future concerns are required propulsion which regulation. meet

becomes a factors as product older, develop tensile please. get and The about training be constraint. Slide tanker and the the act fleet must the coatings this issues. orders considered. continues make because older the tanker to thinking age age product XX, growth, which them a important fleet these profile and of and new is building fleet product When as All of

products Only of products the pancan and LRX fleets product clean the water trading dirty moving is XX% clean the Older trading crude Every or LRX vessels are oil. not products. to of trading and XX% Handymax fleet.

need accounted for. Although vessels these does two to you do trades move into earlier, our see be it

become older move expect the to and Given increasing as these age scrap crude older, of get more the oil candidates. while into of fleet, trades vessels vessels number the we they years

fleet XX XXXX, tanker well XX years By and These that older, changes an environmental vessel XXX old from today. have And scrapping an vessels the to increase are material increase. XXX the age at and as product do vessels will a to will impact fleet. scrapping all-time XXX on increase we expect years have regulations and last, and is XX

year, scrapping and at next please. the than are fleet less will than despite in modest, in per due Putting the higher XX.X% increase Seaborne over fleet upcoming vastly years, three remains grow XX, an and and year outpacing regulation, assumptions using X% together, minimal to assumptions grow this book exports less ore expected increase to year. a year will this fleet and average, supply. Slide order X% the age demand scrapping X.X% X.X% the all ton-mile next using X% orders, on

market In period. against one our is miles outlook the increasing levels, charter that in exports and of miles, growth are limited they system, inventories, constructive ton flows, regulations. time upcoming supply and in today's rates The at evidence individually, exports increasing the high addition, X-year rerouting demand, confluence of and Collectively, historically factors of customers' environmental structural X-year dislocations are global constrained unprecedented. low product refinery remain time and fleet

I our over Robert Bugbee. would to President, like that, it to turn With

Robert Bugbee

to a invested invested be We're Thanks we've a further joining. a in On behalf much STING able couple is everybody. and out time of the things. do. I'd STING. so this with like to been to be great all great Good time morning, of in happy to the just point for buybacks management,

during price. of wanting is, that being we're forward. stock liquidity all, that done, important think that and think focus we're to shown the older of we this really the tremendous on the amount flexibility financing well us sell the gives first as we I NAV opportunity that's quarter going We've improve between to vessels and and arbitrage is willing,

I'm up. going think opposed going rates very in be right what of And as is And would borrow other is, but we've to many it's strong is the important going months, from is it's is a upwards that our the a been. the here, of inflecting to most market It's to as an our booking the Chappell average what where of where thing one for market average for weakest investor that year I John now from I the we've very, a that fantastic. part number, Many had mean, years, the in got. period we've is high weaker couple many, averaged the analysts

LRXs, is the already mid-XXs number, MRs continue through large moving earning LRXs pointed as up on we're the James The very has in the XXs, next part go a out, of to XXs into the it today. the

confidence company forward. of lot for So, the that creates going a

you questions. open to and all with thank again I'd And just for that, up like

Operator

begin session. The [Operator now Instructions] Omar question Nokta question-and-answer Jefferies. We first will with from the comes

Omar Nokta

all to where in on the bit things. seen just, we've further touched is this. into crude is weeks two Robert, also, about And in know in have across while And weakness doldrums settled it typical the three past, to or the the seen tanker that weakness seen rates a real we've comments we've James, it's But on tanker that and this what follow actually here wanted some product of rates past. And you resurgence summer up are. side happening product over I your a I the segments. say, really seemed

here if ask a to been it. you jump? bit latest market What's bit What's wanted And we just here? could a going expect dive more maybe the into just behind deeper can recently? I what the driving So forward

Robert Bugbee

on this. go Sure, James. first I'll

change we've seen, that is And the margins seen big say, the to in change, we've thing a a let's sentiment. I really positive think refinery first widened here.

physical oil moved moved oil view paper this things. in -- to as in They overwhelming and start oil price is market moved we on is constant the up the to then nothing market. prices And to refined recessionary there of I mean are sit of demand of really than think than is this seeing now. can't from market even We're the and they the up consumer higher upwards all, engage and into have I the as we've like prices demand products at people a the do the drawdown. products by anything, expressed that refutable now going just point. starting that in

being all think utilization. hurricanes was And this periods very levels so, of I as in anyway, usual, we had is was of these things war, with week explained the this high a at that saw except And as tight we doldrums demand-led. market or high very very

move as soon the was demand put as So, you higher. that rates this going to in,

Omar Nokta

think prior MRs. for it XX now? that the the you've TC. How now think was market it for given to at would liquidity on you we're follow-up, quarters, helpful. LRXs That's my across contracts. guys corp, market does some as more? about And ships question given that as the we've maybe have look been Robert. add period put In away And the your What sizable run-up sort I Thanks, on of of seeing? Scorpio and in mass strength to ships critical appetite then just there got is a like second a the moment able you

Robert Bugbee

things the in the think that period. we've I and other rate hardly fundamentals seen here is James' this one forward view was X-year the of encouraging to long-term of that Well, supportive changed

XX you we've a period, charter. never up, point then happening put go had this market. to look, act We this. find now, surprised paper out would And days to work market to do this exact market that move is and can referencing time So XX, not ago. strong just on time again, started it's it's quickly out actually that very, very the to the right Right And inflection point. to us move knew ships to inflection XX, very not the physical just now, through the

becoming to we've into from diesel. and as we everywhere the run Chinese season. then or we product is now States more really on East because start market to this could exposed move seeing is the from movement. exports, the The got got exposed let more United Middle start You've this Europe movements come movements stronger itself If

it's to not right time the now, So out. time negotiate charter

Omar Nokta

Thanks, Robert. sense. turn makes me. It That's it I'll all for over.

Operator

next Our John Chappell from ISI. question comes go ahead. Evercore with Please,

John Chappell

the the X up couple barrels barrels when brought of of global second seen million We've about ton in quarters? of demand. James, just and points want of to that tie also X is to last supply levels. then year, be before you a half map perspective, drawing below X demand? that the Or historical a inventories could given a going million a the over the incremental starting million the from been meet think does low you X we've there to together bit early regional, the to going both I inventory the to continue Where chance the with point And from? going to it is million that it come winter six panic more that maybe extend miles into incremental

James Doyle

think now low are of I and last we inventories saw where we have it year, Well, supply where any so scenario type disruption. this

some to So there's Gulf, places. be in met with example. for different from been to We'll the refineries some impacts U.S. imports have

it's to and a say be combination regional. I'd going So of long-haul

I you're of here we the out East. Robert capacity a Chinese have you think issue looking it's Middle which new of East increase places the see that at some did And if batch exports Middle Cordis really and they remaining think seems China. if could more capacity, I with likely. mention do [ph]

the for out up effort. collective demand be refinery a impact I CDUs to a have and how is, We material on going Al strong to the has fully which think But of example, Zour running, market. export seen, two three given do have have it's

John Chappell

to averages? that But Okay. supply met just further incremental and X-year with be mean, below inventory kind of do not clear, expect you demand to I be draws

James Doyle

looking at, it's very we're projections The close.

So there U.S. were very Russian disruptions or European refinery, example, obviously, more could barrels things for you in be if difficult. lose to be or were more to

draws see right could well. seeing as lot And the we're You now side of crude a draws. on

John Chappell

Okay.

Second question relates the fleet. to

the age, that course, as of much then, sold handful there's about and think bit you You've should vessels fleet now, values handful a we of maybe over over the recently to just as the if monetizing this a old at ARB the XX or the the asset or next back areas? When stock price I and older years of become we go still to the current vessel look of year a half expect right greater year. more at XX are

Robert Bugbee

we've Yes. disruptive, we that. do to last the sale willing that call by as evidenced we're the But as would quarter That we're last slowly. the it on stated doing and of first the one, be

John Chappell

Thanks, Robert. James. Thanks, Yes, all right.

Operator

Ken next comes Bank with from Hoexter America. question Our of

Nathan Ho

comments we some in economics question on Maybe clean and of heard that product original tanker I we follow-up product market? represents for to dirtying get the the Ho on tankers mean sort firstly, tailwind markets. could quarter, wanted the feed on just capacity Nathan if Omar's how is about and there bifurcation This for tanker the think vessels. should some just just the we've product Ken. I dial of between the over the

James Doyle

switching say least had Aframax vessels And trade. of year. was QX over the really have I'd at into strong you XX a this kind of market. a started in move probably LRXs seen Nathan, Well, from Sure. you've lot last

Latin miles a these I benefit coming of capacity the there's Africa U.S. obviously think online vessels lot vessels, from for and ton America, have new and these increased. which smaller crude

what the challenging the clean I seen we think obviously and you've naphtha is a but of things arbitrage those due to then distillate market reversing. on volumes obviously side, see kind lower

expect as on the little product less. the especially both markets about obviously, And we've be to so know tight, more on bit been forward, crude I look we side think we which side, we a

Nathan Ho

on a as it. follow-up And just strategy. capital Got

team more is over looking a of vessel Obviously, potentially on want maybe a level? the goal where target is trying sense into breakeven say, being lot a trend, a we're past from few deleveraging of target this get just achieve that that Just leverage how And us and there Is to also at to could year on quarters. Or XXXX? here? XX,XXX shed here. the debt update the past TCE level

Robert Bugbee

deal So with James, with don't do why you the answers. other and I'll XX,XXX the

James Doyle

Yes.

down. than of to expect lease we They're little the of because timing higher So the repayments. the bit that probably a 'XX breakeven come

the we you a which the is give of with and can period have leases to specific So, year vessel. or there repurchase time notice the

news most as and vessels and So to as months. we'd is, can associated billion off go vessels around it lease $X the the do XX today. like those The be much can't repay debt with next of repurchased those We that. over good

it you and So, to haven't give obviously, on vessels will that right expect we over many client. will higher see you the continued during this have from how XX interest well period. But And we disclosed us next as had insight as But better that. the the to do breakeven months, you rates now, yet. announcements timing

Robert Bugbee

plus level things those the the of confident do. to whatever think that both to mentioned reduce see reduce can debt two of But we debt debt going ready rate of do from how the really both already to basis. continues we've potential a we got anyone With environment to combined a Historically, will you not we want said in historical question -- lower low terms can can will the to is to And further forward. sale debt lenders. regards answer. else see We've We question the as on Yes. lead the how level we ability terms vessels. we've repay, that's the level, are I the from

Operator

Our Bland JP Morgan. next Sam question with comes from

Samuel Bland

question one of sort got two I've parts. with

Russia, related tightening else? the may it's And First that there Russian is one of there's done X.X% seen through, general sort comes is that the we've you that? sort Or on is, and market can of demand of from? Where from impact. some another in it Russia sanctions from is full tonne-mile sort we to do Russia global of come dark disruption impact growth? market just of the related sort else? related the impact Whatever see which to fleet tightening that further now touch the and on whether or or related to Or that is Slide 'XX. second expected Is the think XX, anything the part I it to is you anything

James Doyle

Yes. The just next going potential year's forecast exports the Middle difference, about as X.X% is for in ton And and emerging Europe online by that's some the X.X% coming exports the capacity as is miles market and driven closures well to miles. to of X.X%, ton Eastern of demand. and really that be

is displaced there's dislocation seen to impact. the of we volume. conflict the I as Russian in more still including result So, that have a majority think any and not of a Ukraine. that upside Russia But

be will that fleet happens with from time. contribution gray the over biggest the what think I

old XX have there's trades. So a of XX to vessels, moved lot these say, years that service to in

these are and they'll dark a potentially history. trading older have Now, vessels

you fleet, and this talking the forward MR the think mean, with I XX% servicing trade. XX%, fleet So, as we're of is look I

long seen dynamics. have don't supply a that it's yet. we've standing So, And impact and going part, fleet on to I trading think

increase exports in and Middle I Middle the the seen East, And U.S. volumes from to the seen of to an Europe. obviously, moving think have those. America and we East Africa, highlighted we terms Latin the we've In

have say So seen. we part that I'd

Operator

Morkedal Clarkson Frode Securities. from comes question with next Our

Frode Morkedal

Good the presentation is so on key Yes. far demand led. and guess words so the demand question you mentioned far. I

refinery product spreads, some demand, return, important shift, exports, and or new on many question certainly to to products, there's course, of near medium arbitrage is right? impact may and right? parts that moving which one have oil malty on, the is guess You inventories vendor demand I should the greatest most one So is trades, in the factors. the mining exports demand, low capacity, Russian really So term? The many refining Chinese have crack maintenance

Robert Bugbee

who demand. mean, headline the headline comfort would say, I I for those think for creates create are short. all the I players demand perhaps players urgency and of

recession product immittance the various towards for if this understanding and whether sort they're demand move will that from as continue happening, So short then by we you going fear fall recession. oil diesel, move are example, And first in older buying. of while to and a creates of demand and better you're result an half that anything we participants, start government or into if environment that's else come winter, product, if Europe you short forward headline where

it's difficult And because to from there. most so that, to cohesive East wherever or of China I in think, but that's act important or going is basis, market forces a of estimate way. sort the day-to-day sort Middle thing coming way it a whether the And too I the to any on be would start

Frode Morkedal

My second question is on the Russian trades.

for the products Our peers boys how now? But the situation coming that speak. is off exports are crude to

James Doyle

day kind similar which have come I Gulf right maintenance. X more and through a normalized at on Part and And put increase kind have barrels in XXs at they would a that that to export had of period kind even that You've for more market. the would trying can't the where saw of extended products for buildup of they down to to regions, run of probably had. due exports Obviously, you an XX% go to we part suggest our the the is high refineries levels. seen exports think of million it But you've to March is crude, in sanctions seen the OPEC. after U.S. other

a see to million maybe we're I barrels day. around them So, similar going more historically X.X of on think what normalized a to level kind we've seen

Frode Morkedal

related is this in the And market?

Robert Bugbee

where winter. at interesting at is same to approach we the I will last ahead a they because to and were now time, able Frode, Yes. think sanction Roxane mild what of be very watching is had Europe esprestock year,

in the year to put less that described, with as It's place. you in October last to have James you and harder than, are into or and do it's the and go lower Russian you more say, or winter. pre-stock going the let's situation much winter if So to be to be the inventories sanctions going same last year

Operator

Our with Sherri question comes Elmaghrabi next BTIG. from

Sherri Elmaghrabi

with cap, down other LRXs Or places? trades clean upside. you oil what's the look is for Or potential a that price more after bit are shift? of First, drilling are trade? more on going to there's back seeing they've kind created crossing for the But on return in switching with Russia. to tankers some it too Russian rates soon Certainly, like because some some

Robert Bugbee

not it's throw ship think clean soon way into it's easy not and it it I to crude And just too and easy to it's that. for anyway take up.

to going the going may of clean be the some the, certainly accepted not market gets are charters difficult it have be traded say, by almost spread. more the And then and the free is, Russia, do that involved at in let's the to really vessels difficult. it present not The older these petroleum to ship You're trade.

then clean got trade and be allowed itself. to product to got up the to actual you've You've

Sherri Elmaghrabi

to looking if follow are renewal last on about realize the at And over all? you sales, you're up about How fleet pick full. the vessel thinking then new orders maybe pretty I thinking up this seen at we've are newbuild months. prices really time build few pace of it

Robert Bugbee

itself You or general? mean STNG

Sherri Elmaghrabi

specifically. both STING do meeting Yes. We know could but we was I

Robert Bugbee

low thinking down not would new thing capital the build allocation I at We're very very, be all. this list. about on

thing come buy that's realize elongated better think much a order anyway. have that to in way to book So stock or vessel XXXX new we order And the here the that probably than until to the is been to time to. building when your whatever do I has you own

So you shifted yes, 'XX. are haven't more that coming what's there orders in

haven't first coming of shipped coming what's 'XX. in the shifted haven't You what's in you and half 'XX

in it to math in a getting when dollar, I would not fleet or simple dollar delivered you to dollar cash a the Apnea for staying anyway. example a do just Admo has take right I spend take that and a XXXX? if put investor the front flow have and Or is do at new especially of comparison, benefit that want such the STING So,

Operator

Our next with Riley Burke question comes from FBR. B. Liam

Liam Burke

at this Is your paying you clear maintaining a Or debt buybacks possibly going anticipate I payout dividend or your and dividend bumping through Back you been on to from $X.XX mean it about allocation, back looking capital $X.XX. quarter, you reduction, are you've that last as bumped the cycle? earlier. it?

Robert Bugbee

investor, is right as lot depends a a want where in that price to gets Again, at right now cash that really or paying company the out dollar would dividend the taxed the marginal flow use a to an the than buybacks think whatever point now. think I everybody or opposed this on the stock speculator of particular on. stock investor I use

It into great is the that dynamic. We're where increase going with cash the to trading future a We a has It's stock just created everything. So, at wait. going the flow. at fundamentals. this point is felt great fantastic had situation just a dividend market right refinanced the such part a it upwards. The quarter. the can This dividend dislocation just wasn't to company

Liam Burke

And enough. Fair a getting Things better James. a book macro. order looking I lot the at this guess are here. creeping We're at is for

activity that a recycling. few be But in would We years. seen going? offset that gets the haven't what of Some

James Doyle

question. a it's No, great

think to vessels, so that I serve or well. turn vessels XXXX, you're XXX number going years regulations of think was as part next vessels going from a it you're a and up first of massive or around XX XXX it think to of today. will it's I number have kind tertiary will over going I years really XX two those XXX the of see are is environmental But just be older trades the markets XX staggering to be by as and vessels scrapped. vessels that years that to

it's a number. massive So

will those think think kind of vessels lot to of the to that XX are crude move the factor in a also scrapped. age to do And trade. into going fleet. have XX we of that be are you the There's I So oil

still we on So basis. book and is think historical order low, especially fleet is the growth extremely a modest

Liam Burke

just And follow-on. a Great. then as

just I your selling throwing to mean, age market? NAV think versus the into been it into while. you a Do vessels As crude or a of it's it to have that the trade-off category, between

Robert Bugbee

will as That's continue what we said, doing have we we doing just been to do. and are we what

Operator

Our from Bank. question with Chris Robertson comes Deutsche next

Christopher Robertson

out utilization operating kind and what in translate days? are you impact coming any off-hire in well next. days? ships quarters minimal in there in And of into that I'm quarter terms as pools coming factors James, outlined does could wondering And of of of moving terms this CapEx this the as the

Brian Lee

minimal. in half the Yes, year, Brian. two the next are many quarters. off-hire have dry next in the Sure, the don't days We docks of

As you of number see in special 'XX, for fiscal it's the release, the table due coming their in the just press because surveys. more escalated vessels of

CapEx is the in So for coming minimal that quarters. the reason,

Christopher Robertson

utilization, ships of any then and in in pools? of terms there regards the out impact to And moving with Okay.

Brian Lee

material. that's say wouldn't I

Christopher Robertson

is XQ. Okay. remainder XQ any around year? or OpEx My second of to just you vessel the the question further for pressure in Do inflation cost step-up is guys see from expected the

Brian Lee

year remainder going opposed to run more rate QX? the normalized I QX the be is as think of a to for

Christopher Robertson

Okay, that's for Yes, it me. great.

Operator

This for like question-and-answer over back any concludes to closing I session. remarks. Robert would the Bugbee conference turn our to

Robert Bugbee

again interest. We everybody. we And very enjoy and the to look term. support Thanks and speaking much. your you, in Thank forward summer your appreciate you to everybody, the near

Operator

presentation. Thank The today's you conference concluded. for attending has now

may disconnect. You now

Scorpio Tankers (STNG) 2 Aug 232023 Q2 Earnings call transcript