MONACO--(GLOBE NEWSWIRE - November 9, 2023) - Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three and nine months ended September 30, 2023. The Company also announced that its board of directors (the "Board of Directors") has declared a quarterly cash dividend on its common shares of $0.35 per share.

For the three months ended September 30, 2023, the Company had net income of $100.4 million, or $2.01 basic and $1.93 diluted earnings per share.

For the three months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $99.2 million, or $1.99 basic and $1.91 diluted earnings per share, which excludes from net income (i) a $6.0 million, or $0.12 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.14 per basic and diluted share, gain on the sale of a vessel.

For the three months ended September 30, 2022, the Company had net income of $266.2 million, or $4.84 basic and $4.31 diluted earnings per share.

For the three months ended September 30, 2022, the Company had adjusted net income (see Non-IFRS Measures section below) of $264.8 million, or $4.81 basic and $4.29 diluted earnings per share, which excludes from net income (i) a $2.7 million, or $0.05 per basic and $0.04 per diluted share, gain on the sale of a vessel, (ii) $1.4 million, or $0.03 per basic and $0.02 per diluted share, write-off or acceleration of the amortization of deferred financing fees on certain debt or lease financing obligations and related debt extinguishment costs, and (iii) $0.1 million, or $0.00 per basic and diluted share, gain recorded on the repurchase of the Company’s Convertible Notes Due 2025.

For the nine months ended September 30, 2023, the Company had net income of $426.0 million, or $8.00 basic and $7.68 diluted earnings per share.

For the nine months ended September 30, 2023, the Company had adjusted net income (see Non-IFRS Measures section below) of $428.1 million, or $8.04 basic and $7.72 diluted earnings per share, which excludes from net income (i) a $9.3 million, or $0.17 per basic and diluted share, write-off or acceleration of the amortization of deferred financing fees on certain lease financing obligations and related debt extinguishment costs, and (ii) a $7.1 million, or $0.13 per basic and diluted share, gain on the sale of a vessel.

For the nine months ended September 30, 2022, the Company had net income of $372.8 million, or $6.74 basic and $6.07 diluted earnings per share.

For the nine months ended September 30, 2022, the Company had adjusted net income (see Non-IFRS Measures section below) of $446.0 million, or $8.06 basic and $7.21 diluted earnings per share, which excludes from net income (i) a $66.5 million, or $1.20 per basic and $1.04 per diluted share, aggregate net loss on the sale of vessels, (ii) $7.1 million, or $0.13 per basic and $0.11 per diluted share, write-off or acceleration of the amortization of deferred financing fees on debt or lease financing obligations and related debt extinguishment costs, and (iii) $0.5 million, or $0.01 per basic and diluted share, gain recorded on the repurchases of the Company’s Convertible Notes due 2025.

•Below is a summary of the average daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS Measures section below) and duration of contracted voyages and time charters for the Company's vessels (both in the pools and outside of the pools) thus far in the fourth quarter of 2023 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):

(1)     Expected Revenue Days are the total number of calendar days in the quarter for each vessel, less the total number of expected off-hire days during the period associated with major repairs or drydockings. Consequently, Expected Revenue Days represent the total number of days the vessel is expected to be available to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in revenue days. The Company uses revenue days to show changes in net vessel revenues between periods.

•Below is a summary of the average daily TCE revenue earned by the Company's vessels during the third quarter of 2023:

•On November 9, 2023, the Company’s Board of Directors replenished the 2023 Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company’s securities which, in addition to its common shares also consist of its Senior Unsecured Notes Due 2025 (NYSE: SBBA). This program resets the program that was previously replenished on May 31, 2023. There is $250 million available under the 2023 Securities Repurchase Program as of November 9, 2023.

•The Company recently entered into an agreement to sell the 2012 built MR product tanker, STI Amber, for a selling price of $33.7 million. As a result, the Company gave notice to exercise the purchase option on this vessel on the BCFL Lease Financing (MRs), which is expected to result in a lease liability repayment of $8.2 million. The sale of this vessel and the corresponding lease repayment are expected to close before the end of the fourth quarter of 2023.

•In October 2023, the Company gave notice to exercise the purchase options on 10 lease financed vessels consisting of (i) two Handymax vessels and four LR2 product tankers on the 2021 $146.3 Million Lease Financing (STI Rotherhithe, STI Hammersmith, STI Broadway, STI Connaught, STI Lauren and STI Winnie), and (ii) three MR product tankers and an LR2 product tanker on the 2021 AVIC Lease Financing (STI Soho, STI Osceola, STI Memphis and STI Lombard). These purchases are expected to take place in the fourth quarter of 2023 and first quarter of 2024 and the aggregate lease liability is expected to be $197.9 million at the date of purchase.

•In October 2023, the Company closed on the previously announced exercise of purchase options on eight lease financed vessels consisting of (i) five LR2 product tankers on the CSSC Lease Financing (STI Gauntlet, STI Gladiator, STI Goal, STI Gratitude and STI Guide), and (ii) an MR product tanker and two LR2 product tankers (STI Maximus, STI Lily and STI Lotus) on the IFRS 16 - Leases - $670.0 Million lease financing. The Company repaid the aggregate outstanding lease liability of $195.9 million as a result of these purchases.

•In July 2023, the Company executed its previously announced 2023 $1.0 Billion Credit Facility. In July and August 2023, the Company drew an aggregate of $576.4 million from this facility (split evenly between the term loan and the revolver) to finance 26 vessels. In September 2023, the Company repaid $288.2 million on the revolving portion of this credit facility, which may be re-borrowed in the future. In November 2023, the Company drew down $202.3 million from this facility (split evenly between the term loan and the revolver) and five LR2 product tankers (STI Lotus, STI Lily, STI Gladiator, STI Gratitude, and STI Goal) and three MR product tankers (STI Maximus, STI Leblon and STI Bosphorus) were placed as collateral under the facility.

•In September 2023, the Company executed its previously announced 2023 $94.0 Million Credit Facility. Upon execution of the credit facility, the Company drew down $43.8 million and two vessels (STI Marshall and STI Grace) were placed as collateral under the facility. In October 2023, the Company drew down $50.2 million and two vessels (STI Guide and STI Gauntlet) were placed as collateral under the facility.

•During the third quarter of 2023, the Company closed on the previously announced exercise of purchase options on eight MR product tankers (STI Mighty, STI Modest, STI Maestro, STI Maverick, STI Millennia, STI Miracle, STI Bosphorus and STI Leblon) and an LR2 product tanker (STI Supreme) which were financed on the IFRS 16 - Leases - $670.0 Million lease financing, 2020 CMBFL Lease Financing, and the Ocean Yield Lease Financing. These transactions resulted in an aggregate debt reduction of $207.9 million.

•During the third quarter of 2023, the Company completed the previously announced debt repayments for six vessels which were financed on the 2019 DNB / GIEK Credit Facility (STI Condotti and STI Sloane), 2020 $225.0 Million Credit Facility (STI Kingsway and STI Spiga) and Hamburg Commercial Credit Facility (STI Veneto and STI Poplar). These transactions resulted in an aggregate debt reduction of $101.3 million.

•During the third quarter of 2023, the Company gave notice to exercise the purchase options on nine vessels consisting of six MR product tankers (STI Galata, STI La Boca, STI Esles II, STI Donald C Trauscht, STI Jardins and STI San Telmo) and three LR2 product tankers (STI Stability, STI Solace and STI Solidarity). These vessels are currently financed on the 2020 SPDBFL Lease Financing, 2020 TSFL Lease Financing, and BCFL Lease Financing (LR2s) and the repurchases are expected to occur in the fourth quarter of 2023 and first quarter of 2024. This will result in a reduction of lease liabilities of $136.0 million in the fourth quarter of 2023 and $38.3 million in the first quarter of 2024.

•In July 2023, the Company sold the 2013 built MR product tanker, STI Ville, for $32.5 million. As the vessel was unencumbered, the Company made no debt repayments associated with this sale.

•Since July 1, 2023 and through the date of this press release, the Company has repurchased an aggregate of 1,889,643 of its common shares in the open market at an average price of $48.02 per share.

From July 1, 2023 through September 30, 2023, the Company repurchased 1,648,355 of its common shares in the open market at an average price of $47.74 per share under the 2023 Securities Repurchase Program.

From October 1, 2023 through November 8, 2023, the Company repurchased 241,288 of its common shares in the open market at an average price of $49.88 per share under the 2023 Securities Repurchase Program.

On November 9, 2023, the Company’s Board of Directors replenished the 2023 Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company’s securities which, in addition to its common shares also consist of its Senior Unsecured Notes Due 2025 (NYSE: SBBA). This program resets the program that was previously replenished on May 31, 2023.

There is $250 million available under the 2023 Securities Repurchase Program as of November 9, 2023.

The computation of earnings per share is determined by taking into consideration the potentially dilutive shares arising from the Company’s equity incentive plan. These potentially dilutive shares are excluded from the computation of earnings per share to the extent they are anti-dilutive.

For the three and nine months ended September 30, 2023, the Company’s basic weighted average number of shares outstanding were 49,906,783 and 53,235,165 respectively. For the three and nine months ended September 30, 2023, the Company’s diluted weighted average number of shares outstanding were 51,943,617 and 55,482,321, respectively, which included the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan.

On Thursday November 9, 2023, the Company plans to issue its third quarter 2023 earnings press release in the morning (Eastern Daylight Time) and host a conference call at 9:00 AM Eastern Standard Time and 3:00 PM Central European Time.

Title: Scorpio Tankers Inc. Third Quarter 2023 Conference Call

Date: Thursday November 9, 2023

Time: 9:00 AM Eastern Standard Time and 3:00 PM Central European Time.

The conference call will be available over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com and the webcast link:

https://edge.media-server.com/mmc/p/suwrc98n

Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

The conference will also be available telephonically:

US/CANADA Dial-In Number: 1 833-636-1321

International Dial-In Number: 1 412-902-4260

Please ask to join the Scorpio Tankers Inc call

Participants should dial into the call 10 minutes before the scheduled time.

As of November 8, 2023, the Company had $521.2 million in unrestricted cash and cash equivalents and $288.2 million of availability under the revolving portion of the 2023 $1.0 Billion Credit Facility.

The following table sets forth the unscheduled debt and lease repayments that the Company has recently completed or are pending. This table excludes the September 2023 payment of $288.2 million into the revolving portion of the 2023 $1.0 Billion Credit facility, which can be re-drawn in the future.

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

			In thousands of U.S. Dollars			Outstanding Principal as of June 30, 2023			Outstanding Principal as of September 30, 2023			Outstanding Principal as of November 8, 2023
1			Hamburg Commercial Credit Facility (1)			$	32,086		$	—		$	—
2			Prudential Credit Facility			36,513			35,126			34,202
3			2019 DNB / GIEK Credit Facility (1)			34,781			—			—
4			BNPP Sinosure Credit Facility			75,121			75,121			69,667
5			2020 $225.0 Million Credit Facility (1)			35,198			—			—
6			2023 $225.0 Million Credit Facility			216,525			208,050			199,575
7			2023 $49.1 Million Credit Facility			47,934			46,780			46,780
8			2023 $117.4 Million Credit Facility			117,394			113,142			113,142
9			2023 $1.0 Billion Credit Facility (2)			—			269,344			471,644
10			2023 $94.0 Million Credit Facility (3)			—			43,750			94,000
11			Ocean Yield Lease Financing (1)			54,895			26,141			25,883
12			BCFL Lease Financing (LR2s) (1)			62,837			60,157			59,269
13			CSSC Lease Financing (1)			113,994			110,353			—
14			BCFL Lease Financing (MRs) (1)			45,040			40,820			39,492
15			2020 CMBFL Lease Financing (1)			36,468			—			—
16			2020 TSFL Lease Financing (1)			38,947			38,117			38,117
17			2020 SPDBFL Lease Financing (1)			80,264			78,640			78,640
18			2021 AVIC Lease Financing (1)			81,009			79,196			79,196
19			2021 CMBFL Lease Financing			64,785			63,155			62,750
20			2021 TSFL Lease Financing			47,807			46,712			46,712
21			2021 $146.3 Million Lease Financing (1)			127,110			123,815			120,520
22			2021 Ocean Yield Lease Financing			61,032			59,557			59,060
23			2022 AVIC Lease Financing			109,220			106,927			106,927
24			IFRS 16 - Leases - 3 MR			16,904			14,713			13,993
25			IFRS 16 - Leases - $670.0 Million (1)			231,015			85,508			—
26			Unsecured Senior Notes Due 2025			70,571			70,571			70,571
			Gross debt outstanding			1,837,450			1,795,695			1,830,140
			Cash and cash equivalents			313,923			364,908			521,176
			Net debt			$	1,523,527		$	1,430,787		$	1,308,964

(1)    Refer to the preceding table for a description of unscheduled payment activity that has recently occurred or is expected to occur.

(2)    The 2023 $1.0 Billion Credit Facility was executed in July 2023. In July and August 2023, the Company drew an aggregate of $576.4 million from this facility (split evenly between the term loan and the revolver) and 26 of the Company's vessels (17 MRs and nine LR2s) were placed as collateral under the facility. In September 2023, the Company repaid $288.2 million on the revolving portion of this credit facility, which may be re-borrowed in the future. In November 2023, the Company drew down $202.3 million from this facility (split evenly between the term loan and the revolver) and eight of the Company's vessels (three MRs and five LR2s) were placed as collateral under the facility. This facility has a final maturity of June 30, 2028, bears interest at SOFR plus a margin of 1.95% per annum and is expected to be repaid in quarterly installments with a balloon payment due at the maturity date, where the term loan portion for each vessel shall be repaid in full prior to the reduction of the revolving loan for each vessel. The amounts drawn thus far, and the currently available $288.2 million under the revolving portion of the facility, are scheduled to be repaid and/or permanently reduced in aggregate amounts of $24.7 million per quarter through June 30, 2025 and gradually decreasing from $18.1 million to $16.2 million per quarter in years three through five of the loan, with a balloon payment due at the maturity date. The remaining terms and conditions of this credit facility, including financial covenants, are similar to those set forth in the Company’s existing credit facilities. The Company expects to draw $37.7 million under this facility before the end of the fourth quarter of 2023, and the remaining $183.6 million within the first quarter of 2024.

(3)    In September 2023, the Company executed its previously announced 2023 $94.0 Million Credit Facility. Upon execution of the credit facility, the Company drew $43.8 million and two vessels (one MR and one LR2) were placed as collateral under the facility. In October 2023, the Company drew $50.2 million and two vessels (two LR2s) were placed as collateral under the facility. Each tranche of the facility has a final maturity five years from the respective drawdown date and bears interest at SOFR plus a margin of 1.70% per annum. The facility is scheduled to be repaid in aggregate repayments of $2.4 million per quarter with a balloon payment due maturity.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of September 30, 2023, which includes principal amounts due under the Company's secured credit facilities, lease financing arrangements, Senior Notes Due 2025, and lease liabilities under IFRS 16 (which also include actual scheduled payments made from October 1, 2023 through November 8, 2023):

(1)    Amounts represent the principal payments due on the Company’s outstanding indebtedness as of September 30, 2023.

(2)    Includes the unscheduled payment activity that has recently occurred or is expected to occur as described in the preceding section describing unscheduled debt and lease repayments.

(3)    Includes the repayment of $15.0 million, inclusive of the scheduled purchase options, on three MR product tankers (STI Topaz, STI Ruby, and STI Garnet), which are currently financed under the BCFL Lease Financing (MRs).

(4)    Includes the repayment of $5.2 million, inclusive of the scheduled purchase option, on an MR product tanker (STI Onyx), which is currently financed under the BCFL Lease Financing (MRs).

(5)    Reflects the scheduled repayments on the amounts borrowed in October and November 2023 on the 2023 $94.0 Million Credit Facility and 2023 $1.0 Billion Credit Facility of $52.0 million and $202.3 million, respectively.

Set forth below is a table summarizing the drydock, scrubber, and ballast water treatment system ("BWTS") activity that occurred during the third quarter of 2023 and the estimated expected payments to be made, and off-hire days that are expected to be incurred, for the Company's drydocks, ballast water treatment system installations, and scrubber installations through 2023 and 2024:

(1)    These costs include estimated cash payments for drydocks, ballast water treatment system installations and scrubber installations. These amounts may include costs incurred for previous projects for which payments may not be due until subsequent quarters, or installment payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual installation. In addition to these installment payments, these amounts also include estimates of the installation costs of such systems.  The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks and installations finalize. 

(2)    Represents the total estimated off-hire days during the period, including vessels that commenced work in a previous period.

(3)    Represents the number of vessels scheduled to commence drydock, ballast water treatment system, and/or scrubber installations during the period. It does not include vessels that commenced work in prior periods but will be completed in the subsequent period. The number of vessels in these tables may reflect a certain amount of overlap where certain vessels are expected to be drydocked and have ballast water treatment systems and/or scrubbers installed simultaneously.  Additionally, the timing set forth in these tables may vary as drydock, ballast water treatment system installation and scrubber installation times are finalized.

(a)    Includes one BWTS installation.

(b)    Includes one BWTS installation.

(c)    Includes two scrubber installations.

(d)    Includes four scrubber installations.

(e)     Includes five scrubber installations.

For the three months ended September 30, 2023, the Company recorded net income of $100.4 million compared to net income of $266.2 million for the three months ended September 30, 2022. The following were the significant changes between the two periods:

•TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot voyages, time charters, and pool charters), and it provides useful information to investors and management. The following table sets forth TCE revenue for the three months ended September 30, 2023, and 2022:

•TCE revenue for the three months ended September 30, 2023, decreased by $167.1 million to $289.2 million, from $456.3 million for the three months ended September 30, 2022. Overall average TCE revenue per day decreased to $28,313 per day during the three months ended September 30, 2023, from $44,222 per day during the three months ended September 30, 2022. The average number of vessels was 112.1 during the three months ended September 30, 2023 as compared to 113.5 during the three months ended September 30, 2022.

◦TCE revenue for the three months ended September 30, 2023 remained strong despite a decline in daily TCE rates when compared to the same period in the prior year. The third quarter of 2022 reflected several key events and market conditions (discussed below), leading to a counter-seasonal spike in daily TCE rates. The third quarter of 2023 reflected a more normalized seasonal pattern whereby the beginning of the quarter was impacted by extended refinery maintenance, lower refining margins and a reduction in arbitrage opportunities, which all led to reduced refinery throughput and decreased volumes from major export regions. These conditions improved later in the quarter and daily TCE rates strengthened. As such, on a seasonally adjusted basis, demand for the Company's vessels remained strong during the third quarter of 2023 supported by growing underlying consumption for refined petroleum products against the backdrop of low inventory levels and a modest newbuilding orderbook (with a dearth of deliveries expected in the next two years).

◦TCE revenue for the three months ended September 30, 2022 reflected the continued momentum in the product tanker market that began in the first quarter of 2022. Initially, the easing of COVID-19 restrictions around the globe resulted in increased personal mobility which served as a catalyst for underlying demand for refined petroleum products. This buoyant demand, combined with low global refined petroleum product inventories and strong refining margins, incentivized refiners to increase and maintain high utilization levels which drove substantial increases in refined petroleum product export volumes throughout the world. Lastly, the volatility brought on by the conflict in Ukraine significantly disrupted supply chains for crude oil and refined petroleum products, changing volumes and trade routes, and thus increasing ton-mile demand for the seaborne transportation of refined petroleum products.

The Company also had an increased number of vessels operating outside of the Scorpio pools during the three months ended September 30, 2022, which led to an increase in voyage revenue and voyage expenses for that period.

•Vessel operating costs for the three months ended September 30, 2023 increased by $3.3 million to $79.1 million, from $75.8 million for the three months ended September 30, 2022. Vessel operating costs per vessel per day increased to $7,669 per day for the three months ended September 30, 2023 from $7,256 per day for the three months ended September 30, 2022. General inflationary pressures were the main drivers behind the increase, with certain crewing, spares and stores, and freight and forwarding expenses being the most impacted.

•Depreciation expense – owned or sale leaseback vessels for the three months ended September 30, 2023 increased by $5.6 million to $47.0 million, from $41.4 million for the three months ended September 30, 2022. This increase was attributable to the exercise of purchase options on six lease financed vessels during the third quarter of 2023 that were previously accounted for as IFRS 16 - Leases. The carrying value of these vessels was reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the date of purchase. Depreciation expense going forward from the date of repurchase will be recorded as a part of owned vessels and will not change significantly.

•Depreciation expense - right of use assets for the three months ended September 30, 2023 decreased by $5.4 million to $4.1 million from $9.6 million for the three months ended September 30, 2022. Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded under IFRS 16 - Leases. This decrease was attributable to the exercise of purchase options on six lease financed vessels during the third quarter of 2023 that were previously accounted for as IFRS 16 - Leases. The carrying value of these vessels was reclassified to Vessels from Right of Use Assets on the Company's balance sheet on the date of purchase. Depreciation expense going forward from the date of repurchase will be recorded as part of owned vessels.

•General and administrative expenses for the three months ended September 30, 2023, decreased by $1.8 million to $24.6 million, from $26.5 million for the three months ended September 30, 2022. This decrease was primarily due to an aggregate decrease in compensation related costs. General and administrative expenses for the fourth quarter of 2023 are expected to reflect a one-time non-cash charge of approximately $8.5 million for the acceleration of restricted stock amortization which was triggered by the departure of the Company’s former CFO in October 2023. Excluding any future grants, this acceleration will reduce restricted stock amortization in subsequent periods gradually over the remaining vesting period (through 2027).

•Financial expenses for the three months ended September 30, 2023 increased by $7.4 million to $49.7 million, from $42.3 million for the three months ended September 30, 2022. This increase was primarily attributable to increases in benchmark rates, primarily SOFR. This increase was partially offset by the overall reduction in the Company's average indebtedness to $2.0 billion from $2.6 billion during the three months ended September 30, 2023 as compared to the three months ended September 30, 2022. In addition to regularly scheduled repayments, the Company exercised purchase options or made unscheduled repayments of debt of $1.2 billion since October 1, 2022 and settled $205.1 million of debt through the conversion of the Convertible Notes Due 2025 into common shares in December 2022. These debt settlements were partially offset by $1.0 billion of drawdowns under new credit facilities during that same period.

Additionally, the Company recorded $6.0 million of debt extinguishment related costs during the three months ended September 30, 2023, as compared to $1.4 million during the three months ended September 30, 2022. There was no accretion on the Convertible Notes Due 2025 during the three months ended September 30, 2023 given their conversion in December 2022, as compared to accretion of $3.1 million during the three months ended September 30, 2022.

(1) The computation of diluted earnings per share for the three months ended September 30, 2023 includes the effect of potentially dilutive unvested shares of restricted stock. The computation of diluted earnings per share for the three and nine months ended September 30, 2022 includes the effect of potentially dilutive unvested shares of restricted stock and the effect of the Convertible Notes Due 2022 and Convertible Notes Due 2025 under the if-converted method.

			For the nine months ended September 30,
In thousands of U.S. dollars			2023						2022
Operating activities
Net income			$	426,008					$	372,848
Depreciation - owned or sale leaseback vessels			129,704						126,581
Depreciation - right of use assets			22,139						29,055
Amortization of restricted stock			28,838						16,148
Amortization of deferred financing fees			4,491						5,039
Non-cash debt extinguishment costs			6,126						5,506
Accretion of convertible notes			—						10,858
Net (gain) / loss on sales of vessels			(7,127)						66,486
Accretion of fair value measurement on debt assumed in business combinations			956						1,756
Gain on Convertible Notes transactions			—						(481)
Share of income from dual fuel tanker joint venture			(4,940)						(695)
			606,195						633,101
Changes in assets and liabilities:
Decrease / (increase) in inventories			6,640						(7,183)
Decrease / (increase) in accounts receivable			84,153						(208,941)
Increase in prepaid expenses and other current assets			(1,214)						(13,232)
Decrease in other assets			2,549						16,705
Decrease in accounts payable			(5,658)						(12,975)
(Decrease) / increase in accrued expenses			(12,998)						45,513
			73,472						(180,113)
Net cash inflow from operating activities			679,667						452,988
Investing activities
Net proceeds from sales of vessels			32,186						607,894
Distributions from dual fuel tanker joint venture			1,489						493
Drydock, scrubber, ballast water treatment system and other vessel related payments (owned, leased financed and bareboat-in vessels)			(17,101)						(26,418)
Net cash inflow from investing activities			16,574						581,969
Financing activities
Debt repayments			(774,892)						(670,108)
Issuance of debt			1,011,632						122,638
Debt issuance costs			(28,742)						(1,701)
Principal repayments on lease liability - IFRS 16			(399,485)						(66,030)
Repurchase / repayment of convertible notes			—						(83,968)
Decrease in restricted cash			—						4,008
Dividends paid			(39,072)						(17,683)
Repurchase of common stock			(477,644)						(84,893)
Net cash outflow from financing activities			(708,203)						(797,737)
(Decrease) / increase in cash and cash equivalents			(11,962)						237,220
Cash and cash equivalents at January 1,			376,870						230,415
Cash and cash equivalents at September 30,			$	364,908					$	467,635

    

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

The Company's dividends paid during 2022 and 2023 were as follows:

The ongoing military conflict in Ukraine has had a significant direct and indirect impact on the trade of refined petroleum products. This conflict has resulted in the United States, the United Kingdom, and the European Union countries, among other countries and jurisdictions, implementing sanctions and executive orders against citizens, entities, and activities connected to Russia. Some of these sanctions and executive orders target the Russian oil sector, including a prohibition on the import of oil from Russia to the United States or the United Kingdom, and the European Union's recent ban on Russian crude oil and petroleum products which took effect in December 2022 and February 2023, respectively. The Company cannot foresee what other sanctions or executive orders may arise that affect the trade of petroleum products. Furthermore, the conflict and ensuing international response has disrupted the supply of Russian oil to the global market, and as a result, the price of oil and petroleum products has experienced significant volatility. The Company cannot predict what effect the higher price of oil and petroleum products will have on demand, and it is possible that the current conflict in Ukraine could adversely affect the Company's financial condition, results of operations, and future performance.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns, lease finances or bareboat charters-in 112 product tankers (39 LR2 tankers, 59 MR tankers and 14 Handymax tankers) with an average age of 7.8 years. The Company has entered into an agreement to sell one of its MR tankers within the fourth quarter of 2023. Additional information about the Company is available at the Company's website www.scorpiotankers.com. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.

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

The Company believes that the presentation of TCE revenue, adjusted net income or loss with adjusted earnings 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 TCE 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 TCE revenue, adjusted net income or loss with 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.

TCE revenue, on a historical basis, is reconciled above in the section entitled "Explanation of Variances on the Third Quarter of 2023 Financial Results Compared to the Third Quarter of 2022". The Company has not provided a reconciliation of forward-looking TCE revenue because the most directly comparable IFRS measure on a forward-looking basis is not available to the Company without unreasonable effort.

(1) Summation difference due to rounding

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

The forward‐looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies in response to epidemic and other public health concerns including any effect on demand for petroleum products and the transportation thereof, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including the impact of the conflict in Ukraine and the developments in the Middle East, including the armed conflict in Israel and Gaza, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off‐hires, and other factors. Please see the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Scorpio Tankers Inc.

James Doyle - Head of Corporate Development & Investor Relations

Tel: +1 646-432-1678

Email: investor.relations@scorpiotankers.com