MONACO, April 25, 2018 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) ("Scorpio Tankers," or the "Company") today reported its results for the three months ended March 31, 2018.

Results for the three months ended March 31, 2018 and 2017   

For the three months ended March 31, 2018, the Company's adjusted net loss (see Non-IFRS Measures section below) was $31.5 million, or $0.10 basic and diluted loss per share, which excludes from the net loss $0.3 million, or $0.00 per basic and diluted share, of transaction costs related to the Company's previously announced merger with Navig8 Product Tankers Inc ("NPTI"). For the three months ended March 31, 2018, the Company had a net loss of $31.8 million, or $0.10 basic and diluted loss per share.

For the three months ended March 31, 2017, the Company's adjusted net loss (see Non-IFRS Measures section below) was $11.5 million, or $0.07 basic and diluted loss per share, which excludes from the net loss $0.1 million, or $0.00 per basic and diluted share, write-off of deferred financing fees. For the three months ended March 31, 2017, the Company had a net loss of $11.5 million, or $0.07 basic and diluted loss per share.

Declaration of Dividend

On April 25, 2018, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about June 28, 2018 to all shareholders of record as of June 6, 2018 (the record date). As of April 24, 2018, there were 331,629,992 shares outstanding.

New Financing Initiatives

The Company has signed term sheets or agreed main terms for a series of bank loans and sale leasebacks to refinance certain of its outstanding secured indebtedness.  These transactions, if consummated, would be expected to raise $334 million in aggregate of new liquidity after the repayment of the existing secured debt related to these vessels. The Company expects to make detailed announcements for the individual transactions in the coming weeks.

The terms and conditions of the credit facilities and lease financing arrangements, including covenants, pricing, and advance rates, are similar to those in the Company's existing credit facilities and lease financing arrangements.  These new credit facilities and lease financing arrangements are subject to credit approval, customary conditions precedent and the execution of definitive documentation.

The Company continuously evaluates potential financing transactions that it believes will enhance shareholder value or are in the best interests of the Company, including the repayment or refinancing of its existing indebtedness.

Summary of Other Recent and First Quarter Significant Events

• Below is a summary of the average daily Time Charter Equivalent (TCE) revenue (see Non-IFRS Measures section below) and duration for voyages fixed for the Company's vessels thus far in the second quarter of 2018 as of the date hereof (See footnotes to 'Other operating data' table below for the definition of daily TCE revenue):

• For the LR2s in the pool: approximately $14,000 per day for 37% of the days.
  
  
• For the LR1s in the pool: approximately $13,500 per day for 43% of the days.
  
  
• For the MRs in the pool: approximately $13,800 per day for 38% of the days.
  
  
• For the ice-class 1A and 1B Handymaxes in the pool: approximately $11,400 per day for 35% of the days.

• Below is a summary of the average daily TCE revenue earned on the Company's vessels during the first quarter of 2018:

• For the LR2s in the pool: $14,517 per revenue day.
  
  
• For the LR1s in the pool: $10,540 per revenue day.
  
  
• For the MRs in the pool: $13,264 per revenue day.
  
  
• For the ice-class 1A and 1B Handymaxes in the pool: $12,453 per revenue day.

• Took delivery of STI Esles II and STI Jardins, two MR product tankers that were under construction, from Hyundai Mipo Dockyard Co. Ltd. of South Korea ("HMD") in January 2018.  As part of these deliveries, the Company drew down $21.5 million in December 2017 and $21.5 million in January 2018 from its 2017 Credit Facility to partially finance the purchase of these vessels.

• Entered into agreements to time charter-in two vessels, a 2013 built LR2 product tanker for six months at $14,300 per day, and a 2012 built MR product tanker for one year at $14,000 per day. These vessels were delivered in February and March 2018, respectively.

• Paid a quarterly cash dividend with respect to the fourth quarter of 2017 on the Company's common stock of $0.01 per share in March 2018.

Time Charter-in Update

In February 2018, the Company entered into a new time charter-in agreement on a 2013 built LR2 product tanker for six months at $14,300 per day. The Company has an option to extend the charter for an additional six months at $15,310 per day. This vessel was delivered in February 2018.

In January 2018, the Company entered into a new time charter-in agreement on a 2012 built MR product tanker for one year at $14,000 per day. The Company has an option to extend the charter for an additional year at $14,400 per day. This vessel was delivered in March 2018.

$250 Million Securities Repurchase Program

In May 2015, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE:SBNA), which were issued in May 2014 and (iii) Unsecured Senior Notes Due 2019 (NYSE:SBBC), which were issued in March 2017.

No securities were repurchased under this program during the period commencing January 1, 2018 and ending on the date of this press release.

As of the date hereof, the Company has the authority to purchase up to an additional $147.1 million of its securities under its Securities Repurchase Program. The Company expects to repurchase its securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any of its securities.

Diluted Weighted Number of Shares

Diluted earnings per share is determined using the if-converted method. Under this method, the Company assumes that the Convertible Notes (which were issued in June 2014) were converted into common shares at the beginning of each period and the interest and non-cash amortization expense associated with these notes of $5.7 million and $5.5 million during the three months ended March 31, 2018 and 2017, respectively, were not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.

For the three months ended March 31, 2018 and 2017, the Company's basic weighted average number of shares was 307,905,015 and 162,711,256, respectively.  The weighted average number of shares, both diluted and under the if-converted method, were anti-dilutive for the three months ended March 31, 2018 and 2017, respectively, as the Company incurred net losses.

 As of the date hereof, the Convertible Notes are not eligible for conversion.

Conference Call

The Company has scheduled a conference call on April 25, 2018 at 8:00 AM Eastern Daylight Time and 2:00 PM Central European Summer Time.  The dial-in information is as follows:

US Dial-In Number: +1 (855) 861-2416

International Dial-In Number: +1 (703) 736-7422

Conference ID: 3478179

Participants should dial into the call 10 minutes before the scheduled time. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

Slides and Audio Webcast:

There will also be a simultaneous live webcast over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: https://edge.media-server.com/m6/p/5hmnuuc3

Current Liquidity

As of April 24, 2018, the Company had $150.9 million in unrestricted cash and cash equivalents.

Drydock Update

The Company has five MRs that are scheduled for drydock during the remainder of 2018 and estimates that these vessels will be offhire for an aggregate of 100 days with estimated aggregate drydock costs of approximately $4.0 million. Three of these vessels are currently operating under operating lease bareboat charter-in arrangements.

Debt

Set forth below is a summary of the Company’s outstanding indebtedness as of the dates presented:

In millions of U.S. dollars		Outstanding as of December 31, 2017			Drawdowns and (repayments), net			Outstanding as of March 31, 2018			Repayments			Outstanding as of April 24, 2018
K-Sure Credit Facility		$	240.0		$	—		$	240.0		$	—		$	240.0
KEXIM Credit Facility		333.0			(16.9		)	316.1			—			316.1
Credit Suisse Credit Facility		53.5			—			53.5			—			53.5
ABN AMRO Credit Facility		113.3			(2.2		)	111.1			(0.6		)	110.5
ING Credit Facility		109.9			—			109.9			—			109.9
BNP Paribas Credit Facility		42.6			—			42.6			—			42.6
Scotiabank Credit Facility		28.8			—			28.8			—			28.8
NIBC Credit Facility		34.7			—			34.7			(1.0		)	33.7
2016 Credit Facility		196.0			(5.3		)	190.7			—			190.7
HSH Nordbank Credit Facility		15.4			(0.4		)	15.0			—			15.0
2017 Credit Facility (1)		141.8			18.6			160.4			(1.2		)	159.2
DVB 2017 Credit Facility		78.4			(1.5		)	76.9			(1.5		)	75.4
Credit Agricole Credit Facility		107.9			(2.2		)	105.7			—			105.7
ABN AMRO/K-Sure Credit Facility		53.4			(1.0		)	52.4			—			52.4
Citi/K-Sure Credit Facility		112.1			(2.1		)	110.0			—			110.0
Ocean Yield Lease Financing		170.6			(2.5		)	168.1			(0.8		)	167.3
CMBFL Lease Financing		66.9			(1.2		)	65.7			—			65.7
BCFL Lease Financing (LR2s)		108.1			(1.8		)	106.3			(0.6		)	105.7
CSSC Lease Financing		263.8			(4.3		)	259.5			(1.4		)	258.1
BCFL Lease Financing (MRs)		109.2			(2.5		)	106.7			(0.9		)	105.8
2020 senior unsecured notes		53.8			—			53.8			—			53.8
2019 senior unsecured notes		57.5			—			57.5			—			57.5
Convertible Notes		348.5			—			348.5			—			348.5
		$	2,839.2		$	(25.3	)	$	2,813.9		$	(8.0	)	$	2,805.9

(1) In January 2018, the Company drew down $21.5 million from the 2017 Credit Facility to partially finance the purchase of STI Jardins, which was subsequently delivered.

Set forth below are the expected, estimated future principal repayments on the Company's outstanding indebtedness which includes amounts due under sale and finance leaseback arrangements:

	In millions of U.S. dollars
Q2 2018 - principal payments made to date	$	8.0
Q2 2018 - remaining principal payments	25.1
Q3 2018	51.1
Q4 2018	39.0
Q1 2019	63.6
Q2 2019	123.2
Q3 2019	411.8
Q4 2019	38.7
2020 and thereafter	2,053.4
	$	2,813.9

Newbuilding Program

In January 2018, the Company took delivery of STI Esles II and STI Jardins from HMD, which were the final vessels to be delivered under the Company's newbuilding program. The final installment payment for STI Esles II was made in December 2017 in advance of its delivery, and the Company paid $23.5 million as the final installment payment for the delivery of STI Jardins in January 2018.

As part of these deliveries, the Company drew down $21.5 million in December 2017 and $21.5 million in January 2018 from its 2017 Credit Facility to partially finance the purchase of these vessels.

Explanation of Variances on the First Quarter of 2018 Financial Results Compared to the First Quarter of 2017

For the three months ended March 31, 2018, the Company recorded a net loss of $31.8 million compared to a net loss of $11.5 million for the three months ended March 31, 2017. The following were the significant changes between the two periods:

• TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended March 31, 2018 and 2017:

			For the three months ended March 31,
In thousands of U.S. dollars			2018				2017
	Vessel revenue		$	156,446			$	122,801
	Voyage expenses		(3,339		)		(2,532		)
	TCE revenue		$	153,107			$	120,269

• TCE revenue for the three months ended March 31, 2018 increased $32.8 million to $153.1 million, from $120.3 million for the three months ended March 31, 2017. This increase was driven by the growth of the Company's fleet to an average of 128.0 operating vessels during the three months ended March 31, 2018 from an average of 92.9 operating vessels during the three months ended March 31, 2017.  This growth was the result of the merger with NPTI, which resulted in the delivery of four vessels in June 2017 and 23 vessels in September 2017.  In addition, the Company took delivery of eight vessels under its newbuilding program throughout 2017 and two vessels under its newbuilding program during the first quarter of 2018.  The increase in TCE revenue resulting from the increase in the size of the Company's fleet was partially offset by a reduction in TCE revenue per day, which decreased to $13,331 per day during the three months ended March 31, 2018, from $14,408 per day during the three months ended March 31, 2017.  This reduction reflects the challenging market conditions, driven by an unfavorable global supply and demand imbalance, that have persisted throughout 2017 and the first quarter of 2018.
  
  
• Vessel operating costs for the three months ended March 31, 2018 increased $22.3 million to $70.4 million, from $48.1 million for the three months ended March 31, 2017.  This increase was the result of an increase in the average number of owned and bareboat chartered-in vessels for the three months ended March 31, 2018 to 118.6 vessels from 80.6 vessels for the three months ended March 31, 2017.  This growth was the result of (i) the merger with NPTI, which resulted in the delivery of four vessels in June 2017 and 23 vessels in September 2017, (ii) the delivery of eight vessels under the Company's newbuilding program throughout 2017 and two vessels under the Company's newbuilding program during the first quarter of 2018, and (iii) the delivery of seven Handymax vessels under bareboat charter-in agreements, which operated for a portion of the three months ended March 31, 2017 and for the entire three months ended March 31, 2018.  These additions were offset by the sales of two MR tankers in June and July 2017.
  
  
• Voyage expenses for the three months ended March 31, 2018 increased $0.8 million to $3.3 million, from $2.5 million for the three months ended March 31, 2017.  This increase was primarily the result of certain vessels acquired from NPTI that traded in the spot market during the first quarter of 2018 as these vessels transitioned technical managers or transitioned from trading crude oil to clean products.
  
  
• Charterhire expenses for the three months ended March 31, 2018 decreased $1.4 million to $18.0 million, from $19.4 million for the three months ended March 31, 2017.  This decrease was driven by lower average daily base rates on the Company's time chartered-in fleet during the three months ended March 31, 2018 to an average of $14,035 per vessel per day from an average of $15,601 per vessel per day for the three months ended March 31, 2017.  The Company's time and bareboat chartered-in fleet for the three months ended March 31, 2018 increased to an average of 19.4 vessels, (9.4 time chartered-in vessels and 10.0 bareboat chartered-in vessels) from an average of 15.6 vessels (12.3 time chartered-in vessels and 3.3 bareboat chartered-in vessels) for the three months ended March 31, 2017.  The average daily base rate for the Company's bareboat chartered-in fleet was $6,797 per vessel per day for the three months ended March 31, 2018 and $7,013 per vessel per day for the three months ended March 31, 2017. 
  
  
• Depreciation expense for the three months ended March 31, 2018 increased $13.0 million to $43.5 million, from $30.5 million for the three months ended March 31, 2017. This increase was primarily driven by (i) the delivery of two LR2 and six MR vessels under the Company's newbuilding program during 2017, (ii) the delivery of the four LR1 vessels acquired from NPTI in June 2017, (iii) the delivery of eight LR1 and 15 LR2 vessels acquired from NPTI in September 2017, and (iv) the delivery of two MR vessels under the Company's newbuilding program during the three months ended March 31, 2018.  These deliveries were offset by the sales of five MR vessels throughout 2017, of which three were leased back under bareboat charter-in operating lease arrangements.
  
  
• Financial expenses for the three months ended March 31, 2018 increased $17.8 million to $39.4 million, from $21.7 million for the three months ended March 31, 2017. The increase in financial expenses was primarily a result of (i) increased interest expense incurred as a result of the assumption of $924.8 million of indebtedness as part of the Company's merger with NPTI ($118.3 million in June 2017 and $806.4 million in September 2017) and (ii) increases in LIBOR rates when compared to the first quarter of 2017.

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statements of Income or Loss
(unaudited)
		For the three months ended March 31,
In thousands of U.S. dollars except per share and share data		2018				2017
Revenue
	Vessel revenue	$	156,446			$	122,801
Operating expenses
	Vessel operating costs	(70,430		)		(48,148		)
	Voyage expenses	(3,339		)		(2,532		)
	Charterhire	(18,012		)		(19,431		)
	Depreciation	(43,455		)		(30,502		)
	General and administrative expenses	(13,626		)		(11,910		)
	Merger transaction related costs	(264		)		—
	Total operating expenses	(149,126		)		(112,523		)
Operating income		7,320				10,278
Other (expense) and income, net
	Financial expenses	(39,418		)		(21,664		)
	Realized loss on derivative financial instruments	—				(116		)
	Financial income	385				52
	Other expenses, net	(81		)		(83		)
	Total other expense, net	(39,114		)		(21,811		)
Net loss		$	(31,794	)		$	(11,533	)
Loss per share
	Basic	$	(0.10	)		$	(0.07	)
	Diluted	$	(0.10	)		$	(0.07	)
	Basic weighted average shares outstanding	307,905,015				162,711,256
	Diluted weighted average shares outstanding (1)	307,905,015				162,711,256

⁽¹⁾ The dilutive effect of (i) unvested shares of restricted stock and (ii) the potentially dilutive securities relating to the Company's Convertible Notes were excluded from the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017, respectively because their effect would have been anti-dilutive. Weighted average shares under the if-converted method (which includes the potential dilutive effect of both the unvested shares of restricted stock and the Convertible Notes) were 345,539,088 for the three months ended March 31, 2018. 

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
	As of
In thousands of U.S. dollars	March 31, 2018				December 31, 2017
Assets
Current assets
Cash and cash equivalents	$	163,379			$	186,462
Accounts receivable	55,773				65,458
Prepaid expenses and other current assets	10,289				17,720
Inventories	8,953				9,713
Total current assets	238,394				279,353
Non-current assets
Vessels and drydock	4,128,250				4,090,094
Vessels under construction	—				55,376
Other assets	52,871				50,684
Goodwill	11,727				11,482
Restricted cash	12,156				11,387
Total non-current assets	4,205,004				4,219,023
Total assets	$	4,443,398			$	4,498,376
Current liabilities
Current portion of long-term debt	$	130,403			$	113,036
Finance lease liability	50,363				50,146
Accounts payable	10,780				13,044
Accrued expenses	28,011				32,838
Total current liabilities	219,557				209,064
Non-current liabilities
Long-term debt	1,912,627				1,937,018
Finance lease liability	654,320				666,993
Total non-current liabilities	2,566,947				2,604,011
Total liabilities	2,786,504				2,813,075
Shareholders' equity
Issued, authorized and fully paid-in share capital:
Share capital	3,817				3,766
Additional paid-in capital	2,286,922				2,283,591
Treasury shares	(443,816		)		(443,816		)
Accumulated deficit (1)	(190,029		)		(158,240		)
Total shareholders' equity	1,656,894				1,685,301
Total liabilities and shareholders' equity	$	4,443,398			$	4,498,376

⁽¹⁾ Accumulated deficit reflects the impact of the adoption of IFRS 15, Revenue from Contracts with Customers, which is effective for annual periods beginning on January 1, 2018.  The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (the "modified retrospective method"). We have applied the modified retrospective method upon the date of transition.  Accordingly, the cumulative effect of the application of this standard resulted in a $3,888 reduction in the opening balance of Accumulated deficit on January 1, 2018.

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
	For the three months ended March 31,
In thousands of U.S. dollars	2018				2017
Operating activities
Net loss	$	(31,794	)		$	(11,533	)
Depreciation	43,455				30,502
Amortization of restricted stock	6,650				6,289
Amortization of deferred financing fees	3,306				3,251
Write-off of deferred financing fees	—				66
Accretion of Convertible Notes	3,200				3,004
Accretion of fair value measurement on debt assumed from NPTI	960				—
	25,777				31,579
Changes in assets and liabilities:
Decrease / (increase) in inventories	882				(652		)
Decrease in accounts receivable	9,514				4,053
Decrease in prepaid expenses and other current assets	7,608				734
Increase in other assets	(3,071		)		(1,745		)
(Decrease) / increase in accounts payable	(2,323		)		2,326
Decrease in accrued expenses	(3,538		)		(2,754		)
	9,072				1,962
Net cash inflow from operating activities	34,849				33,541
Investing activities
Acquisition of vessels and payments for vessels under construction	(25,851		)		(83,303		)
Drydock payments (owned and bareboat-in vessels)	(438		)		—
Net cash outflow from investing activities	(26,289		)		(83,303		)
Financing activities
Debt repayments	(46,703		)		(97,182		)
Issuance of debt	21,450				187,475
Debt issuance costs	(2,354		)		(7,435		)
Increase in restricted cash	(768		)		(1,778		)
Equity issuance costs	(4		)		—
Dividends paid	(3,264		)		(1,746		)
Net cash (outflow) / inflow from financing activities	(31,643		)		79,334
(Decrease) / increase in cash and cash equivalents	(23,083		)		29,572
Cash and cash equivalents at January 1,	186,462				99,887
Cash and cash equivalents at March 31,	$	163,379			$	129,459

Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three months ended March 31, 2018 and 2017
(unaudited)
		For the three months ended March 31,
		2018				2017
Adjusted EBITDA(1)  (in thousands of U.S. dollars)		$	57,608			$	46,870
Average Daily Results
Time charter equivalent per day(2)		$	13,331			$	14,408
Vessel operating costs per day(3)		$	6,624			$	6,519
LR2
TCE per revenue day (2)		$	14,302			$	16,543
Vessel operating costs per day(3)		$	6,866			$	6,555
Average number of owned or finance leased vessels		38.0				21.3
Average number of time chartered-in vessels		1.4				1.2
LR1
TCE per revenue day (2)		$	10,121			$	13,545
Vessel operating costs per day(3)		$	6,999			$	—
Average number of owned or finance leased vessels		12.0				—
Average number of time chartered-in vessels		—				1.0
MR
TCE per revenue day (2)		$	13,534			$	13,429
Vessel operating costs per day(3)		$	6,376			$	6,318
Average number of owned or finance leased vessels		44.6				42.0
Average number of time chartered-in vessels		6.2				8.0
Average number of bareboat chartered-in vessels		3.0				—
Handymax
TCE per revenue day (2)		$	12,875			$	14,497
Vessel operating costs per day(3)		$	6,533			$	6,939
Average number of owned or finance leased vessels		14.0				14.0
Average number of time chartered-in vessels		1.8				2.2
Average number of bareboat chartered-in vessels		7.0				3.3
Fleet data
Average number of owned or finance leased vessels		108.6				77.3
Average number of time chartered-in vessels		9.4				12.3
Average number of bareboat chartered-in vessels		10.0				3.3
Drydock
Drydock payments for owned or bareboat-in vessels (in thousands of U.S. dollars)		$	438			$	—

(1	)	See Non-IFRS Measures section below.
(2	)	Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. Revenue days are the number of days the vessel is owned or chartered-in less the number of days the vessel is off-hire for drydock and repairs.
(3	)	Vessel operating costs per day represent vessel operating costs divided by the number of operating days during the period. Operating days are the total number of available days in a period with respect to the owned or bareboat chartered-in vessels, before deducting available days due to off-hire days and days in drydock. Operating days is a measurement that is only applicable to our owned, finance leased or bareboat chartered-in vessels, not our time chartered-in vessels.

Fleet list as of April 24, 2018
		Vessel Name		Year Built		DWT			Ice class		Employment		Vessel type
		Owned or finance leased vessels
1		STI Brixton		2014		38,734			1A		SHTP (1)		Handymax
2		STI Comandante		2014		38,734			1A		SHTP (1)		Handymax
3		STI Pimlico		2014		38,734			1A		Time Charter (5)		Handymax
4		STI Hackney		2014		38,734			1A		SHTP (1)		Handymax
5		STI Acton		2014		38,734			1A		SHTP (1)		Handymax
6		STI Fulham		2014		38,734			1A		SHTP (1)		Handymax
7		STI Camden		2014		38,734			1A		SHTP (1)		Handymax
8		STI Battersea		2014		38,734			1A		SHTP (1)		Handymax
9		STI Wembley		2014		38,734			1A		SHTP (1)		Handymax
10		STI Finchley		2014		38,734			1A		SHTP (1)		Handymax
11		STI Clapham		2014		38,734			1A		SHTP (1)		Handymax
12		STI Poplar		2014		38,734			1A		Time Charter (5)		Handymax
13		STI Hammersmith		2015		38,734			1A		SHTP (1)		Handymax
14		STI Rotherhithe		2015		38,734			1A		SHTP (1)		Handymax
15		STI Amber		2012		49,990			—		SMRP (2)		MR
16		STI Topaz		2012		49,990			—		SMRP (2)		MR
17		STI Ruby		2012		49,990			—		SMRP (2)		MR
18		STI Garnet		2012		49,990			—		SMRP (2)		MR
19		STI Onyx		2012		49,990			—		SMRP (2)		MR
20		STI Fontvieille		2013		49,990			—		SMRP (2)		MR
21		STI Ville		2013		49,990			—		SMRP (2)		MR
22		STI Duchessa		2014		49,990			—		SMRP (2)		MR
23		STI Opera		2014		49,990			—		SMRP (2)		MR
24		STI Texas City		2014		49,990			—		SMRP (2)		MR
25		STI Meraux		2014		49,990			—		SMRP (2)		MR
26		STI San Antonio		2014		49,990			—		SMRP (2)		MR
27		STI Venere		2014		49,990			—		SMRP (2)		MR
28		STI Virtus		2014		49,990			—		SMRP (2)		MR
29		STI Aqua		2014		49,990			—		SMRP (2)		MR
30		STI Dama		2014		49,990			—		SMRP (2)		MR
31		STI Benicia		2014		49,990			—		SMRP (2)		MR
32		STI Regina		2014		49,990			—		SMRP (2)		MR
33		STI St. Charles		2014		49,990			—		SMRP (2)		MR
34		STI Mayfair		2014		49,990			—		SMRP (2)		MR
35		STI Yorkville		2014		49,990			—		SMRP (2)		MR
36		STI Milwaukee		2014		49,990			—		SMRP (2)		MR
37		STI Battery		2014		49,990			—		SMRP (2)		MR
38		STI Soho		2014		49,990			—		SMRP (2)		MR
39		STI Memphis		2014		49,995			—		SMRP (2)		MR
40		STI Tribeca		2015		49,990			—		SMRP (2)		MR
41		STI Gramercy		2015		49,990			—		SMRP (2)		MR
42		STI Bronx		2015		49,990			—		SMRP (2)		MR
43		STI Pontiac		2015		49,990			—		SMRP (2)		MR
44		STI Manhattan		2015		49,990			—		SMRP (2)		MR
45		STI Queens		2015		49,990			—		SMRP (2)		MR
46		STI Osceola		2015		49,990			—		SMRP (2)		MR
47		STI Notting Hill		2015		49,687			1B		Time Charter (6)		MR
48		STI Seneca		2015		49,990			—		SMRP (2)		MR
49		STI Westminster		2015		49,687			1B		Time Charter (6)		MR
50		STI Brooklyn		2015		49,990			—		SMRP (2)		MR
51		STI Black Hawk		2015		49,990			—		SMRP (2)		MR
52		STI Galata		2017		49,990			—		SMRP (2)		MR
53		STI Bosphorus		2017		49,990			—		SMRP (2)		MR
54		STI Leblon		2017		49,990			—		SMRP (2)		MR
55		STI La Boca		2017		49,990			—		SMRP (2)		MR
56		STI San Telmo		2017		49,990			1B		SMRP (2)		MR
57		STI Donald C Trauscht		2017		49,990			1B		SMRP (2)		MR
58		STI Esles II		2018		49,990			1B		SMRP (2)		MR
59		STI Jardins		2018		49,990			1B		SMRP (2)		MR
60		STI Excel		2015		74,000			—		SLR1P (3)		LR1
61		STI Excelsior		2016		74,000			—		SLR1P (3)		LR1
62		STI Expedite		2016		74,000			—		SLR1P (3)		LR1
63		STI Exceed		2016		74,000			—		SLR1P (3)		LR1
64		STI Executive		2016		74,000			—		SLR1P (3)		LR1
65		STI Excellence		2016		74,000			—		SLR1P (3)		LR1
66		STI Experience		2016		74,000			—		SLR1P (3)		LR1
67		STI Express		2016		74,000			—		SLR1P (3)		LR1
68		STI Precision		2016		74,000			—		SLR1P (3)		LR1
69		STI Prestige		2016		74,000			—		SLR1P (3)		LR1
70		STI Pride		2016		74,000			—		SLR1P (3)		LR1
71		STI Providence		2016		74,000			—		SLR1P (3)		LR1
72		STI Elysees		2014		109,999			—		SLR2P (4)		LR2
73		STI Madison		2014		109,999			—		SLR2P (4)		LR2
74		STI Park		2014		109,999			—		SLR2P (4)		LR2
75		STI Orchard		2014		109,999			—		SLR2P (4)		LR2
76		STI Sloane		2014		109,999			—		SLR2P (4)		LR2
77		STI Broadway		2014		109,999			—		SLR2P (4)		LR2
78		STI Condotti		2014		109,999			—		SLR2P (4)		LR2
79		STI Rose		2015		109,999			—		Time Charter (7)		LR2
80		STI Veneto		2015		109,999			—		SLR2P (4)		LR2
81		STI Alexis		2015		109,999			—		SLR2P (4)		LR2
82		STI Winnie		2015		109,999			—		SLR2P (4)		LR2
83		STI Oxford		2015		109,999			—		SLR2P (4)		LR2
84		STI Lauren		2015		109,999			—		SLR2P (4)		LR2
85		STI Connaught		2015		109,999			—		SLR2P (4)		LR2
86		STI Spiga		2015		109,999			—		SLR2P (4)		LR2
87		STI Savile Row		2015		109,999			—		SLR2P (4)		LR2
88		STI Kingsway		2015		109,999			—		SLR2P (4)		LR2
89		STI Carnaby		2015		109,999			—		SLR2P (4)		LR2
90		STI Solidarity		2015		109,999			—		SLR2P (4)		LR2
91		STI Lombard		2015		109,999			—		SLR2P (4)		LR2
92		STI Grace		2016		109,999			—		SLR2P (4)		LR2
93		STI Jermyn		2016		109,999			—		SLR2P (4)		LR2
94		STI Sanctity		2016		109,999			—		SLR2P (4)		LR2
95		STI Solace		2016		109,999			—		SLR2P (4)		LR2
96		STI Stability		2016		109,999			—		SLR2P (4)		LR2
97		STI Steadfast		2016		109,999			—		SLR2P (4)		LR2
98		STI Supreme		2016		109,999			—		SLR2P (4)		LR2
99		STI Symphony		2016		109,999			—		SLR2P (4)		LR2
100		STI Gallantry		2016		113,000			—		SLR2P (4)		LR2
101		STI Goal		2016		113,000			—		SLR2P (4)		LR2
102		STI Nautilus		2016		113,000			—		SLR2P (4)		LR2
103		STI Guard		2016		113,000			—		SLR2P (4)		LR2
104		STI Guide		2016		113,000			—		SLR2P (4)		LR2
105		STI Selatar		2017		109,999			—		SLR2P (4)		LR2
106		STI Rambla		2017		109,999			—		SLR2P (4)		LR2
107		STI Gauntlet		2017		113,000			—		SLR2P (4)		LR2
108		STI Gladiator		2017		113,000			—		SLR2P (4)		LR2
109		STI Gratitude		2017		113,000			—		SLR2P (4)		LR2
		Total owned or finance leased DWT				7,883,195

		Vessel Name		Year Built		DWT			Ice class		Employment		Vessel type		Charter type		Daily Base Rate				Expiry (8)
		Time or bareboat chartered-in vessels
110		Kraslava		2007		37,258			1B		SHTP (1)		Handymax		Time charter		$	11,250			13-May-18	(9	)
111		Silent		2007		37,847			1A		SHTP (1)		Handymax		Bareboat		$	7,500			31-Mar-19	(10	)
112		Single		2007		37,847			1A		SHTP (1)		Handymax		Bareboat		$	7,500			31-Mar-19	(10	)
113		Star I		2007		37,847			1A		SHTP (1)		Handymax		Bareboat		$	7,500			31-Mar-19	(10	)
114		Sky		2007		37,847			1A		SHTP (1)		Handymax		Bareboat		$	6,000			31-Mar-19	(10	)
115		Steel		2008		37,847			1A		SHTP (1)		Handymax		Bareboat		$	6,000			31-Mar-19	(10	)
116		Stone I		2008		37,847			1A		SHTP (1)		Handymax		Bareboat		$	6,000			31-Mar-19	(10	)
117		Style		2008		37,847			1A		SHTP (1)		Handymax		Bareboat		$	6,000			31-Mar-19	(10	)
118		Miss Benedetta		2012		47,499			—		SMRP (2)		MR		Time charter		$	14,000			16-Mar-19	(11	)
119		STI Beryl		2013		49,990			—		SMRP (2)		MR		Bareboat		$	8,800			18-Apr-25	(12	)
120		STI Le Rocher		2013		49,990			—		SMRP (2)		MR		Bareboat		$	8,800			21-Apr-25	(12	)
121		STI Larvotto		2013		49,990			—		SMRP (2)		MR		Bareboat		$	8,800			28-Apr-25	(12	)
122		Zefyros		2013		49,999			—		SMRP (2)		MR		Time charter		$	13,250			08-Jun-18	(13	)
123		Gan-Trust		2013		51,561			—		SMRP (2)		MR		Time charter		$	13,950			06-Jan-19	(14	)
124		CPO New Zealand		2011		51,717			—		SMRP (2)		MR		Time charter		$	15,250			12-Sep-18	(15	)
125		CPO Australia		2011		51,763			—		SMRP (2)		MR		Time charter		$	15,250			01-Sep-18	(15	)
126		Ance		2006		52,622			—		SMRP (2)		MR		Time charter		$	13,500			12-Oct-18	(16	)
127		Densa Alligator		2013		105,708			—		SLR2P (4)		LR2		Time charter		$	14,300			21-Aug-18	(17	)
128		Densa Crocodile		2015		105,408			—		SLR2P (4)		LR2		Time charter		$	15,750			06-Jul-18	(18	)
		Total time or bareboat chartered-in DWT				968,434
		Total Fleet DWT				8,851,629

(1	)	This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is a Scorpio Group Pool and is operated by Scorpio Commercial Management S.A.M., or SCM. SHTP and SCM are related parties to the Company.
(2	)	This vessel operates in the Scorpio MR Pool, or SMRP. SMRP is a Scorpio Group Pool and is operated by SCM. SMRP and SCM are related parties to the Company.
(3	)	This vessel operates in or is expected to operate in the Scorpio LR1 Pool, or SLR1P. SLR1P is a Scorpio Group Pool and is operated by SCM. SLR1P and SCM are related parties to the Company.
(4	)	This vessel operates in or is expected to operate in the Scorpio LR2 Pool, or SLR2P. SLR2P is a Scorpio Group Pool and is operated by SCM. SLR2P and SCM are related parties to the Company.
(5	)	This vessel is currently time chartered-out to an unrelated third-party for three years at $18,000 per day. This time charter is scheduled to expire in January 2019.
(6	)	This vessel is currently time chartered-out to an unrelated third-party for three years at $20,500 per day. This time charter is scheduled to expire in December 2018.
(7	)	This vessel is currently time chartered-out to an unrelated third-party for three years at $28,000 per day. This time charter is scheduled to expire in February 2019.
(8	)	Redelivery from the charterer is plus or minus 30 days from the expiry date.
(9	)	We have an option to extend this charter for an additional year at $13,250 per day.
(10	)	This agreement includes a purchase option which can be exercised through December 31, 2018.  If the purchase option is not exercised, the bareboat-in agreement will expire on March 31, 2019.
(11	)	In January 2018, we entered into a time charter-in agreement for one year at $14,000 per day.  We have an option to extend the charter for an additional year at $14,400 per day.  We took delivery of this vessel in March 2018.
(12	)	In April 2017, we sold and leased back this vessel, on a bareboat basis, for a period of up to eight years for $8,800 per day.  The sales price was $29.0 million and we have the option to purchase this vessel beginning at the end of the fifth year of the agreement through the end of the eighth year of the agreement, at market based prices. Additionally, a deposit of $4.35 million was retained by the buyer and will either be applied to the purchase price of the vessel if a purchase option is exercised, or refunded to us at the expiration of the agreement.
(13	)	We have an option to extend the charter for an additional year at $14,500 per day.
(14	)	We have an option to extend the charter for an additional year at $15,750 per day.
(15	)	We have an option to extend this charter for an additional year at $16,000 per day.
(16	)	We have an option to extend this charter for an additional year at $15,000 per day.
(17	)	In February 2018, we entered into a time charter-in agreement for six months at $14,300 per day.  We also have an option to extend the charter for an additional six months at $15,310 per day. We took delivery of this vessel in February 2018.
(18	)	In November 2017, we exercised our option extend this charter for an additional six months at $15,750 per day, effective January 2018.

Dividend Policy

The declaration and payment of dividends is subject at all times to the discretion of the Company's Board of Directors. The timing and amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2017 and 2018 were as follows:

	Date paid	Dividends per share
	March 2017	$0.010
	June 2017	$0.010
	September 2017	$0.010
	December 2017	$0.010
	March 2018	$0.010

On April 25, 2018, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about June 28, 2018 to all shareholders of record as of June 6, 2018 (the record date). As of April 24, 2018, there were 331,629,992 shares outstanding.

Securities Repurchase Program

In May 2015, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2019 (NYSE: SBBC), which were issued in March 2017.

No securities were repurchased under this program during the period commencing January 1, 2018 through and ending on the date of this press release.

As of the date hereof, the Company has the authority to purchase up to an additional $147.1 million of its securities under its Securities Repurchase Program. The Company expects to repurchase its securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any of its securities.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns or finance leases 109 product tankers (38 LR2 tankers, 12 LR1 tankers, 45 MR tankers, 14 Handymax tankers) with an average age of 2.7 years and time or bareboat charters-in 19 product tankers (two LR2 tankers, nine MR tankers and eight Handymax tankers). Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.

Non-IFRS Measures

Reconciliation of IFRS Financial Information to Non-IFRS Financial Information

This press release describes time charter equivalent revenue, or TCE revenue, adjusted net income or loss and adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. "Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors and other users of our financial statements, such as our lenders, with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

The Company believes that the presentation of time charter equivalent revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful to investors or other users of our financial statements, such as our lenders, because they facilitate the comparability and the evaluation of companies in the Company’s industry. In addition, the Company believes that time charter equivalent revenue, adjusted net income or loss with adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Company’s industry. The Company’s definitions of time charter equivalent revenue, adjusted net income or loss with the adjusted earnings or loss per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.

Time charter equivalent revenue is reconciled above in the section entitled 'Explanation of Variances on the First Quarter of 2018 Financial Results Compared to the First Quarter of 2017'.

Reconciliation of Net Loss to Adjusted Net Loss

			For the three months ended March 31, 2018
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net loss		$	(31,794	)		$	(0.10	)		$	(0.10	)
	Adjustment:
	Merger transaction related costs		264					0.00				0.00
	Adjusted net loss		$	(31,530	)		$	(0.10	)		$	(0.10	)

			For the three months ended March 31, 2017
							Per share				Per share
In thousands of U.S. dollars except per share data			Amount				basic				diluted
	Net loss		$	(11,533	)		$	(0.07	)		$	(0.07	)
	Adjustment:
	Deferred financing fees write-off		66					0.00				0.00
	Adjusted net loss		$	(11,467	)		$	(0.07	)		$	(0.07	)

Reconciliation of Net Loss to Adjusted EBITDA

			For the three months ended March 31,
In thousands of U.S. dollars			2018				2017
	Net loss		$	(31,794	)		$	(11,533	)
	Financial expenses		39,418				21,664
	Financial income		(385		)		(52		)
	Depreciation		43,455				30,502
	Merger transaction related costs		264				—
	Amortization of restricted stock		6,650				6,289
	Adjusted EBITDA		$	57,608			$	46,870

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of our operations, risks relating to the integration of the operations of Navig8 Product Tankers Inc. (“NPTI”) and the possibility that the anticipated synergies and other benefits of the acquisition of NPTI will not be realized or will not be realized within the expected timeframe, the outcome of any legal proceedings related to the merger with NPTI and the related transactions, the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires, and other factors. Please see Scorpio Tankers’ filings with the U.S. Securities and Exchange Commission for a more complete discussion of certain of these and other risks and uncertainties.

Scorpio Tankers Inc.
212-542-1616