STNG - Earnings call transcript Q2 2024

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Operator

Hello, and welcome to the Scorpio Tankers Inc., Second Quarter 2024 Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to James Doyle, Head of Corporate Development and IR.

James Doyle

Thank you for joining us today. Tankers XXXX Scorpio Conference the to Second Earnings Quarter Call. Welcome

Chris are call Cameron Chief Officer; earnings Officer. press with on second the is issued Emanuele today, Actual Mackey, Chief we Earlier me may on Operating release, President; results On quarter such Bugbee, today Lauro, risk today, our July of Financial scorpiotankers.com. Robert Executive Chief available information which Avella, our on discussed as from involve materially The differ statements. that this XXXX, may information contain and those website, and in statements uncertainty. call is based forth forward-looking Officer; XX, set

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

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

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

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

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

Emanuele Lauro

you good everyone, thank joining good for us or morning Thank today. and afternoon, you, James, and

we significant In company to were the to another the reduce rates strong returns. that. announce When quarter, continue of XXX year-over-year do I than second and we a in XXX generated million EBITDA USD positioned increase company have we the act quarter, net that spoke, able debt, second shareholder the adjusted and And in to in adjusted USD in pleased results. further highlighted we financial and see income. opportunistically are last to million more increase We quarter exactly

quarter, we cash level breakeven in XXX million per and reducing the a During USD of executed repaid USD our day. on almost XX,XXX daily to debt

has USD June million USD billion today. in net XXX X.X debt around to XXXX, from decreased Our

to asset addition, a net forma consensus we we which the debt and far returned X thus in on daily an million XXX June an these XX,XXX vessels USD breakevens XX of agreement the per over X.X lenders could credit USD of for day Since as repurchased average and share million during In our closing debt debt to net for repayment term have facilities per had have value million accretive per our assumes And would share USD XXX by above USD facility and to aggregate on prices recently BNP price which evens. revolving notice of the an we lower have We asset cash pro X, prepay value The to company shareholders at day Including is USD at USD million. dividends, assets to XXX value our break shares USD X,XXX convert facility and also from it stock older Selling recently shareholders. of be previously share. buybacks repurchasing USD a per on X.XX for basis, XX the credit below we below XXXX. of facility. net crystallizes sent Cynosure outstanding loan remaining sales, a with our net today. announced, the million with announced

share program and million. of USD announced increased In USD XXX our addition quarterly to of that, repurchase replenishment securities of authorization today, we dividend a an per with declared limit the X.XX

fleet spot USD which we was start for This year, than are optimistic XX,XXX as last day the is was day. more USD of per rest per USD higher We with the it than a third XX,XXX of year XX,XXX average very quarter TCE. the

So remain committed strong compared fleet, in I delivering support year, to higher and remarks has the capture would call my shareholders. to young appreciate Tankers. to value Scorpio turn high a to offer. With a like in this, the what to our done, rate continued to We positioned We please. uniquely low we last quarter. James, we your XX,XXX TCE liquidity third and this position leverage, and are opening for to environment are are confidence With USD

James Doyle

global Geopolitical their these fourth. strength The the capacity events highest XXXX. the in The tanker for combination fleet levels demand earnings level The has ranking product were shifts exports by began the refining become limited. have growth demand underlying and last high to is seaborne been records tanker of XXXX in increased ongoing recorded unprecedented in or all factors in reached the the have ton-mile. has since exacerbated next bifurcated caused earnings to in and years. with further has and fundamentals. supply Increasing at have strong and expectations. At product time, remain exceed Year-to-date, continues average tanker market supply rates XXXX highest MR XXXX X.X same

notable. While the has are the floor rates high in arguably striking, more rates been

at day. with seasonal we year-over-year with in exceptionally per the Emanuele have quarter the significant. XX,XXX rates XX,XXX As at day entered been has the of third mentioned, Despite nature and USD USD MRs LRXs strong per business, increase our rates

seasonality in spot refined strong. products and well at flows, above to and levels remains driving historical While market factors cash averages favor. confluence of generate which return for we intact our demand the are significant remain today's Global current rates thus, expect

by demand but not The million of distances and these compared expect In record last has increase million level has a also per to exports. year, have barrels look almost traveling X day we per day, global led seaborne demand so the compared barrels X.X we XX.X half increased. significantly barrels demand second to barrels are XXXX. of grown, exports. in an June, up and the Moreover, increased, to exports of XXX,XXX year seaborne reached exports barrels as have to As million increase has the to increase year-over-year only

Excluding events per Including refined and increase since day is X% long-awaited a and and also XXX,XXX over avoid this These in demand additional would XX%. has the longer Sea capacity. miles, around efficient cover disruptions an it's Dangote ton year Cape XX% continue of less XXXX higher the supply markets. production our Russia, to but fundamentals Red year-to-date the have strong levels. Russia, geopolitical Hope, changes ton earlier fleet to transit to than only mile Vessels in mile distances. not exported must April. ton that Nigeria's leading good exacerbated refining began And refinery driving product barrels of demand demand

saying Conversely, ramping global products. reshape June, in the early refinery increase XX% and capacity has for vessels. LRX ] per an has has demand X the shift refining the expected to Historically, X barrels added exceeded to crude way through excluding Today, Middle barrels flows a up of of supplier in that East exported the Aframax XX% has of trading still In refined the to and supply. close increase While This East, period, continue capacity fleet may capacity which by LRX the XXXX, oil. oil, refinery both is throughput are data fleet as or fleet LRX day. this for to of is and and year-end. increase opposed activity clean. will fell is pipeline nearly significantly mile of same Canada's ton refining demand around product the tightened in production, products, XX% XX% suggests traded LRX From to structural Changes the altering XXX,XXX incremental global continues the to and Aframax trading is China over by become barrels clean and is [indiscernible]. and loadings. loss another flows, Middle expectations barrels XXX,XXX of day TMX [ XXXX million almost production. the of crude trading increased additional This capacity million TMX LRX

vessels underlying Aframax opposed Since and expect vessels opted LRX trade optionality coated because coated for fundamentals have LRX the the of continue majority vessels. and ratio products. Aframax especially Prior We LRX of LRX vessels. increasingly to to XXXX, to then, uncoated for as this owners strong recently, both and the were Aframax orders to given crude

[indiscernible] continue orders However, the crude of market. vessels thus, has and in declining service to Aframax up to LRX increase cost larger LRXs the Aframax will require oil the growth

have ageing spot the charter the substantially to years. fleet, below earnings book increase book size, of represents to LRX Meanwhile, is XXXX may levels. the the is continues modest LRX over of next to X which the newbuilding the led half rates, appear Aframax an vessels. that order at to and in period fleet, set Currently, now an at seen XX%, orders. and XX% with with is their tanker of high combined fleet coupled to XX.X age the fleet product Strong given XX% recent order XX% in are years fleet deliver LRX XXXX similar average time While age which the existing smaller under the orders only

fleet fleet Well, of scrapping. will them years fleet XX older, modest over in the years next fleet for potential positioning years. ton older years. new we exports will this including close be XX% the XX miles candidates higher X.X% X.X% minimal of by XXXX, to next the using scrapping exceed builds? Year-to-date, look year's looks like scrapping conservative and the the So fleet XX% assumptions, X growth and what than and of several will Thus, than assumptions, X% growth have Using and then, as significantly X.X%, fleet over seaborne increased expect and X.X% growth.

X and assuming X fleet in slightly be years. growth over trade of would markets, a X.X% effective assumptions new portion scrapping using higher X% our However, builds the the crude and next

dislocations fleet flows, are constructive The on we rerouting like balance. market turn supply-demand in ton the of in increasing growth. exports they would very individually, demand forward, to Collectively, today's are over product With unprecedented. structural Looking system, refinery are Christopher. it in of miles, constructive limited that, to factors global the confluence I

Chris Avella

James. afternoon, everyone. morning Good you, good or Thank

underlying conditions Red Second expansion demand same of XXXX, average of was significant ton the the the period TCE with mile strong improvement This improvement quarter by Sea. a coupled by demand, over were the driven in triggered year. daily last rates

generated X.XX reduce EBITDA net quarters, company's XXX adjusted adjusted in USD the billion and USD our stock results repurchased X open USD stock. company's per the have share XXX USD of we have XXX the Including of million enabled In in have USD returned XX in us an have we XXXX. debt past USD XXX dividends income. Over since share. and thus in an These and million USD shareholders we dividends additional about July, buybacks, million, XXX in of far to market pay the XX price million million per at by average million USD X.X USD purchased to or share

lowering with cost of and daily rates. deleverage balance to cash our maximizing the continue We sheet reducing goal of our flexibility, breakeven debt

the We the points. This have loan following on the facility balance on This There of today. bearing agreement full the cash and prepayment include per is facility million recently revolving by notice company and Cynosure. The expected into USD collateralized currently future. the expected redrawn repayment. facility, a to the and XX amount X facility Paribas the reached This this currently and the occur that XXX unscheduled potentially amortization on XXX bank in available vessel facility. G&A, USD million currently first submitted XXX be payments an expensive USD a under give flexibility scheduled vessels the SOFR the that before X,XXX this repayments reduce USD third margin is sheet, both financing we with Paribas credit our regularly cost, lenders remains to outstanding of credit is million with our could loan. repay breakeven prepay amendment term daily profile the plus quarterly facility operating interest USD convert as our our amortization to to outstanding of basis revolver, BNP to facility. the as subject or BNP on million at We've was most end amount are release repayment will quarter, cash day to year over same can also loan which in make XXX interest this should A credit term costs,

USD right, respectively. below been at have previously sales, would our million. net the debt XXX the stands As debt billion debt which at shown USD in chart the net same on USD which million vessel and last as net gross announced, XXX the On pro USD and year. remaining X closing our time forma of XXX This of today be to a basis, of assumes million, compares X.X

have than service and initiatives the transformative secured ongoing XXXX, debt debt of Our been commitments. quarterly cash our our daily opportunistically refinancing our are position repayment USD obligations returns. million USD repayment breakeven the less X to increase principal XX Through quarter. rate years shareholder scheduled manageable XX,XXX per these to and over to last continue approximately highly company end are a of per obligations forward With debt on day, the

can same year cash over USD As we the company that, million is the XX,XXX typically in company year, can the the day, per billion the X quarter the year. levels to at I'd XXXX third prior USD USD the potential, USD enter illustrate company's almost fleet, generate XXX the is like of per per time with at concludes charters, presentation. of across over day, the To flow into XX,XXX generation seasonal to point and what USD in our including generate above coverage low turn That day year. Q&A. XX,XXX per And cash the per call

Operator

session. We Instructions]. [Operator begin the will question-and-answer now

first comes Jon from ISI. of question Chappell Evercore Our

Jonathan Chappell

pages So Chris, early the about X you ended presentation. in

you a Interestingly, than just XX% is . go in you more have which XX couple fleet. time If your less you of one pages, commenced haven't about charters, down

Has into through been feels any to So continuing of charter the market up higher; cycle. a of becoming little year years exposure charter X-plus time The push like deeper. go rest contract time fleet increasing there this consideration into the rates it we're the next? we as out to this is the and

Chris Avella

more and better we and all, sell this to been on of deleveraging, itself spot which change, if to look very a take at first us charter, you the on time in And it better would assets. the the may then that time return that assets do has us know. -- or allowing been provide which selling we've that. we We've charter our be I than continues focused tell told market is a pruning That we've is also, approach, fleet. the relationship still would has historically, spot the And also put don't it confident age to of vessel been to so. think we've math been actual

we're of we other [indiscernible]. all that we're charter on will that. let's but at and to that So we've happy would And ratio, than NAV confident, the take anxious just it would continue we watching need to fleet. and We related before. but took to to we've We'll just at again, hand, selling the stock this to of no we're next the there's fix, [indiscernible] say, market, be, years. -- price that are now to got do still to older the the opportunistically not desperate rid But opportunities. say, We're continue like look vessels done in fix let's age XX place. in time I look ships would expect the

Jonathan Chappell

is contrast that maybe putting just export to to Second diesel mean they maybe the impact you term? last last for and ban but I about compare was question, near us, think night Russia Russia James. diesel. I the on could remind export know the market market the in period was from reading you considering time ban product and during how the another it Can another the what pretty on that, did last lived short that

Robert Bugbee

very Jon, short you're was lived. right. It

of of from about over months; to the the about of seen a barrels X have distillate. the range that is X.X couple We decline by Russian last barrels million kind X.X XXX,XXX day exports

of frame basically Africa East. the X to you and about to been would So million has [ going which lose that, barrels distillate and ] in market, Middle Med

the So you maintenance towards would to here certainly that Basin where inventories as likely the the and to come build. from especially Middle most would distillate it or full for have tighten to East start up make Atlantic market, get

Operator

from question Jefferies. Omar Nokta next The comes of

Omar Nokta

your EBITDA wanted on touch X in next to quarters. still and quarter, net to Obviously, target debt. generating basically amount the flow on and just of pace last you're reached a to good a you've cash here perhaps position cash debt the I in you're X be

that maybe point stock? couple besides you do that. just is place to any debt-free. So this on of a One, basically be two, at use then free a of cash questions want you see buying And compelling

Robert Bugbee

a in moment tanker cash. in done product best you've in off May were been from seen buying stronger in months out the rates And the of at time we've about obviously, that the discount of to sense from at a it's very, the more use think world that I way that blacked compelling the is our than way at pretty and last in into in levels market is And public fleet the the weeks turn that, announcements, God pretty -- a the along, buying we're are Street But season selling my now. strong a going well the into look we result, year, earnings. record or regularly. that for the buying would anticipated we June, We wouldn't very weeks of quite were I react say very before the weaker at of holistic of X they release matter but because these this in X Wall earnings rates market where a the are aggressively, going of really, as to whereas strong. a it

opportunity market right pretty own invest we're and be we've to a think into position, now think now. likely cash strong it's to net cheaply that in an would to but it shares our get nice buy a So got going that to

Omar Nokta

And many NAV. comments and maybe Jon of mentioned to disconnect you in these stock ships, the with the then just talking of sale that. the one and And between discussing the as quick follow-up price opening crystallizing

In the from do further coming terms buyback here, that asset obviously to you ongoing stock it million. bumped sales? stock? from from coming How you think about of [indiscernible] Is buying USD the buying XXX is Or for the

Robert Bugbee

to read all. We're not at a going give the market

the have offer, better shareholders Our act we long what's And is that it's to unbelievably shareholders strong. into position to get in the keep have an for term quiet. our on a and us allowed that we ability

Operator

of Hoexter Bank comes Our from next Kenneth of America. question

Ken Hoexter

little talk now. So bit in the you've maybe percent lower. maybe a just your days little that locked of are looks itself like market It right about a bit

third [ think the lowest you LRX I it maybe down I've to your since seems to on more XX it's like on have it Or get looking thoughts some just you do, expected here? the second handy quarter. your on be guys seasonal. hold a That's what ] seasonality the the in seems that rates seen it to XX%. seasonality? and recorded talk The Maybe were weaker about of in locking and is little and you're off to on

Robert Bugbee

I area a terms a No, just very in been particular they've It's summer. holding people that been of been volatile summer. It's quiet in on. think weaker

gone really of XX market been to me really have weak. early describe hand using from July, -- and mouth. at got and has MRs using a strong. that to difficult is August on It's credit day So end day is plus when plus think even But weaker. XX the LRX It's a guys word I a on you the we're that

really out it take are opportunity with X,XXX, with pointed say [indiscernible] Chris Emanuele, ] important and an I'd [indiscernible] but are this was here. very, to [ because to we these as So like things X position XX,XXX very pleased

X,XXX, rate own relevant a season compared Your not its in relevant or It's plus that and It's USD XX. where the own in actual above quarter. is XX,XXX to is second to that's us time, its June USD year. day headline rate last

USD Your day X,XXX, cash costs of operating somewhere X,XXX lower. like USD a

we you've through halfway never in and a actual now. last spring cash a have high. very So got flows board had year market. differential net almost actually quarter substantial strong We're in of the this that's And between third terms

Ken Hoexter

thought that [indiscernible] I then was you're -- rates. a looking move if seasonality the it And just on you or at I anything strong wondered understand definitely

Robert Bugbee

change seasonality, June is this No, the now. and between May,

Ken Hoexter

term? still week last are increasing to of customers interest Robert, the market charters. about you as seeing chatted, like on Or the you getting high? now? So X-year lock had What that your time and interest are state looking we talked discussions they nervous in Are their in longer

Robert Bugbee

Well, is -- people doing what inquiry strategic that weeks still continue [ we probably the or a being think, and to I I especially many X last for there things, and have a industries think in ] things. you're it. holiday with taken as have the think Vital's so, of well, remember Again, is ours are in that to geopolitical think this I quiet talking and markets the terms we'll I

expect willing would X And I the may weeks. So getting the of fixtures to or together, lower and owner another activity have activity willing again in will way. start or in a charter in handful that you of occur terms a meantime, X the along

Operator

question comes of from next Lewis Our BTIG. Gregory

Gregory Lewis

are market of had allowed crude they're what just days, the is, from Dangote, kind ramp One while? kind to a of, on and that about of challenging Is to with it do the something just last terms directly it's or couple of in a thoughts of potential thinking it's Dangote? has Any increasing buy is up that volumes hey, NNPC. from couple take a market to refinery, in now that participants I to going of questions.

James Doyle

you're think I right. Gregory, Yes,

I takes think time. it

different to types. crude I sensitive think it's

think I been looking what on us, at focused is, first, exported. just For we're what's

jet fuel naphtha. You've fuel and had oil and

in terms the ramp-up takes like it they'll other refineries, probably dynamics expect time. early to the making start come gasoline, where more online But of RFCC units and we'll play stage, and then the trading year, see we out. next how year Next

had I a leaking. to through an tank was here. that they're to go fire know weeks so And ago few a going effluent some due challenges they

the people bullish market we that's is So were I come product just products anticipating more the the perspective. a regular up. side, lot [indiscernible] for see think kind from than start exports positive a on and to out to But run

Gregory Lewis

a for tankers. lot moved been gets investment have scrubbers the a that great fuel and have more than themselves, of Realizing paid by product

a So that. and sulfur of And the between just hey, how high of just fuel, you're curious, if at spread around level, high recent move lower in low curious have kind you XXX maybe new it's of the something been? in just is is where lower is that this see spread that normal? Or seasonal price that USD this, historically there you it about kind sulfur maybe market something thoughts the thinking the has kind keeping or than

Cameron Mackey

that I Gregory. you if could take want,

So for spread foreseeable we expect the to pretty the future. stay narrow

were period into. timing issues, In get around fact, there long-term where our reasons, for been important reasons predicted of investment a widened our forecasts but could time. spread for a a spread But narrower regulatory timing more I important scrubbers have issues successfully we in

a we make wouldn't decision again capital. today, had our to great return if be So that on it

Operator

comes The next from question Benjamin Nolan Stifel. of

Benjamin Nolan

that products. crude to the have questions have don't noise some trading about has There's visibility I continues a into So couple been, been, and myself. be tankers, of thing. We great market

I and hoping maybe bit been shifts that update an in what how playing out you're so or of And was seeing little any that respect? give a if changes there's on or that's you could

James Doyle

I and can start add you out? leave something I'll maybe if Cam,

Cameron Mackey

Sure.

James Doyle

Ben, it. seen we have

you this So it's that is predominantly to India They're distillate, specifically U.K. commodity do have can where diesel tell next traders. to later challenge predominantly month. discharge been The it's carried they that by go after. done than going Suezmax's the We month from

load to smaller need try remains goes [indiscernible] or to discharges cargo. unclear. to oil vessels vessel you it travel those Middle will that India clean back to would a after very and to the have it to want to where another vessels East But weak crude for have market So

Cameron Mackey

is we've to been Ben, trading what previous and in significant dirty. add, is years, I'd larger said investment with a thing a it that's vessel quarters up only The consistent clean

you're easy so not about process. an And talking

not intermediate redeliver they In fact, like have in to same want in history. to, those them traders have are referring that cargoes to clean dirty cleaned on redeliver aren't Once condensate, vessels want owner to example, them the to clean to They because get not James is order to you but keep they historically, that vessel, to back you contamination do want find themselves, the mostly only as that for a condition. those up, prone clean. charter have to them

So whether or periods it it's historically and ships several voyage time. thing been long for voyages, has of not cleaning a temporary single a up

Benjamin Nolan

I And thing, the ] know that is moving and the ratio but a I and everything else. that of wall clean And of next kind is Aframax to [ question then LRX this know and continue higher. book-to-fleet versus worry Aframax, age see order

with you'd where a is frothy we of That's it there something." curiosity, geez, just as point risk respect or know, book-to-fleet "Oh, out don't Just which some supply? order starting get sense at say, ratio you XX% might to I or whatever in of is, to think are the slope

Robert Bugbee

mean is X, ageing still, and I we're next pretty you're saying. counterbalances the think you've got outlook flying strong moment. X the We the at years

this as You've also you and I had cleaning of up ships this year. got market a movements carrying at market record that time carrying, for the and high But -yes, from crude is - oil before, a said cleaning.

that So well. it's as absorbing

Ben, no we're we're going So full And it's there's to start good posting my market fine. stop. no, our on try but is the chart a [ way this website possible train. point, little At and oversupplied, ]

Operator

Deutsche Christopher Bank. comes Our of next question Robertson from

Christopher Robertson

congratulations saying the significantly by cash first level me on here. lowering Let breakeven

the think sheet to over the quarters. balance it several you guys the efforts strong have last strengthen highlights done I

you end if be, maybe, point, breakeven prepayments level will the think, that cash continues? on the what the by So of debt and XXXX, Chris, do normal amortization quarterly

Chris Avella

inflation things X of the like resume a potentially revolver, these repayments. USD The we potentially have our until end to into get consideration debt earlier, have repay. to the big have of certain cash Like lot so facility could of prepayments. one breakeven, USD below there. this shared of on By XXXX. down layer of not to per XX,XXX and End you day, we take XXXX assuming September credit XXXX, in resumption assumptions we billion could you does which We

there. time some still there's So

guess just around would answer to estimate XX that's directly somewhere I your right or So an now. question, so

Christopher Robertson

in fair. a Robert, This there and any that's the a you whether that near coming of whether in the attractive not Maybe capture question Yes, more space, refined it's maybe it's in could business might in sectors more core for product future, ahead, traditional the beyond strategic tanker a is few of are looking into any transport, interest tangential are out to but years? that the bit future years the high-level Robert. chemicals, that other Okay. look the carbon looking segments

Robert Bugbee

that. pass We'll on

Operator

question comes Clarkson Securities. from next Frode Our from Morkedal

Frode Morkedal

this Interesting chart this where but Right that averages, look at when trading chart, page last last year's I XX% in XX, the with long-term be XX%. roughly, it clean, above maybe you was show certainly line fairly on to year. seems it's level, now, LRX's

year, more or last the dirty of were crude. trading LRX's So

Now they're trading clean.

growth, I have a or you and we then trading LRX's negative been are that's So do fleet Do guess talking with talking on of much data any right, but cleaning, any about points Ben tankers have how here? you about probably the X% clean? crude

Robert Bugbee

cleaned the many asking quota, Or how up? how have You're on LRX's many [indiscernible]

Frode Morkedal

vessels able crude Sorry, we are to how to talking about? tankers I was talking be [indiscernible] many about the cleaning,

Robert Bugbee

estimates. different seen We've

cargo. probably tracking is that number around vessel they've look loaded if specifically, data because So to you like have had already XX at the

If to, you say, Cameron clean that once it to we look vessel tracking. What going continue. know don't that at that arrives ships, some if XX can Europe, highlighted, reports, and cargo it's as up broker we're to with be something

we're we're be is see. something think on But to we'll Sure. don't it's monitoring segment well. going it's this We sustainable the long that monitoring. oil because as term crude bullish we're and something So

Frode Morkedal

probably Well, XX,XXX we're mentioned, explain X% fleet enough year-on-year, that's growth probably count that's if of right? the why maybe LRXs And so XX,XX. X%, probably like higher to talking effective XX like I take you instead are

So rates good, happens it yes, again, to been back higher, And is they turn right? question but right? what if So... still the are have crude even could

Robert Bugbee

hope freighter oil The crude again. trade

for not we're sometime. be a showing we're market happy year. [ been stronger we gets days, complaining XX ] It's And think VLCC that to I promise much with that really the and higher. going now about hope our it's

Frode Morkedal

are market. equal fairly the now LRXs and It seems Afromax in like spot

So hopefully, change will they back.

Operator

Our Liam BR. next of Burke Riley of B. question from comes

Liam Burke

growth the you're boost got event. demand macro by past you rolling a has the capacity. of Slide out has a this year question. refinery see redistribution and refined refinery How redistribution long global ton-mile of demand This #X, for multiyear another steady I've ton-mile showing products. do nice there? The On been gotten demand up keeping

Robert Bugbee

Liam, refineries online is coming highlighted addition it's the got outside subtraction. But us. by Dangote. to be China. spoke really, there's We outlook going few I question. We've a good a to mean of

around between the XXX,XXX going So there's next X Europe, Europe, to the and that X X refineries U.S. in U.S. close barrels for in year are

as think I regions export well as older we're so those to demand then close going And stay as more increases have regions those to product continue in or modern places. other refineries, grow see refineries in the to and same

So I product think trend this long-term are to is in as be production certain going tankers around reshuffled a as going that's benefit areas. closes products refinery to

James Doyle

event. a multiyear at Okay, so you're looking

highlighted you've you time XX% which got have order an plus over book a period You've scrapping. of

think see on the gap supply/demand So safe nice demand, to a on on to ton-mile if you're it's supply there side. side looking you'll the based continue that

Robert Bugbee

Exactly.

Operator

This the concludes like I to CEO, would remarks. any turn our closing to for back question-and-answer Emmanuel Lauro over session. conference

Emanuele Lauro

everybody We is you a not lot. apart Thanks call speaking soon. operator. attention their look much, concluded. very The you thanking forward and Thank have remarks with for all from closing today time any to and do

Operator

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

You may now disconnect.

Scorpio Tankers (STNG) 30 Jul 242024 Q2 Earnings call transcript