The following is a summary of the Scorpio Tankers Inc. (STNG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Scorpio Tankers' Q1 2024 reports reveal an adjusted EBITDA of $293 million and adjusted net income of $207 million.

• They reduced their net debt to $811 million and made unscheduled repayments totalling $262 million.

• The company plans to repay an additional $118 million in Q2.

• Scorpio Tankers predicts significant reduction in cash breakevens by Q3 2024, potentially decreasing daily fleet operating breakevens to $12,500 per day.

Business Progress:

• Scorpio Tankers used their leverage to manage debt in Q1.

• They communicated with lenders regarding the prepayment of existing debt to reduce operating costs and increase potential shareholder returns.

• Scorpio Tankers predicts that their modern product tanker fleet, low debt level, and projected cash breakevens will allow them to increase shareholder returns and further reduce debt.

• The fleet's coverage is expected to average around $38,600 per day in Q2 2024.

• Scorpio anticipates robust demand for products and constrained supply in the maritime industry, both of which should lead to favourable rate environment.

• Potential impacts of CMX on the Aframax and LR2 markets could potentially increase demand for these vessel types.

• Scorpio is considering selling some vessels, based on the offers' attractiveness.

• They foresee a potential new export market opened up by the Dangote refinery.

• Scorpio noted an ongoing improvement in the product tanker market, contributing to higher rates and a shift in market sentiment from uncertainty to bullishness.

• The company views their Handymax vessel market segment as a potential to ramp up quickly, trading at around $30,000 a day but has seen some recent fall in rates.

More details: Scorpio Tankers IR

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