Scorpio Tankers Inc.

Hello, and welcome to the Scorpio Tankers, Inc. Second Quarter 2021 Conference Call. I would now like to turn the call over to Brian Leith, Chief Financial Officer. Please go ahead, sir.

Thank you, Operator, and thank everyone for joining us today. Welcome to the Scorpio Tankers Second Quarter Earnings Conference Call. On the call with me are Emanuel Oro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Lars Delkens, Director Nelson, Commercial Director James Doyle, Senior Financial Analyst. Earlier today, we issued our second quarter earnings press release, which is available on our website, ScorpioTankers.com. The information discussed on the call is based on information as of today, August 5th, 2021, and may contain forward-looking statements that involve risks and uncertainty. Actual results may differ materially from those set forth in such statements. For discussion of these risks and uncertainties, you should review the forward-looking statement disclosure in the earnings press release, as well as Scorpio Tankers SCC filings, which are available at scorpiotankers.com and scc.gov. Call participants are advised that the audio of this conference call is being broadcast live on the Internet, and it's also being recorded for playback purposes. An archive of the webcast will be made available on the investor relations page of our website for approximately 14 days. There are slides at scorpiotankers.com on the investor relations page under SCC. reports, and presentations. For those asking questions, please limit the number of questions so everyone has a chance. If you have any specific financial modeling questions, you can contact me later and discuss offline. I'd now like to introduce Manuel Oro.

Thank you, Brian. Welcome, everybody, from myself as well. Welcome to our second quarter thing results call. Before I start with my opening remarks, I just wanted to make everybody aware that Robert Bugbee had a very last-minute personal issue and may not be with us for the first 30 minutes of the call. We'll play it by ear as we go along. As far as the remarks are concerned, instead, we've seen market weakness caused by the pandemic, which has disappointingly continued in the quarter. Despite that, We believe with increasing conviction that the recovery has been deferred rather than cancelled. I am pleased that the value of our incumbent position has continued to increase with vessel prices that have increased and very low supply growth which has continued over the quarter. Our modern spot exposed fleet remains very well positioned. We have continue to focus on sensible balance sheet management and liquidity management ahead of the normalization of ton-mile demand and the upswing in rates which we anticipate in the final part of the year. Concerns over variants of COVID-19 are dominating or have dominated and unfortunately still are dominating global markets. Restrictive government policies have led to a delay in recovery in many sectors, and the transportation sector specifically was hit as well. This means that for the product space, this means that ton-mile demand, although stronger than a year ago, is still running well below 2019 levels. Indeed, in the southern hemisphere, some developed nations have recently entered a form of lockdown for the first time, and this is another negative to the transportation sector specifically. As far as we are concerned, as I've mentioned, we continue to manage our liquidity actively to ensure that the business remains on the front foot. This quarter, we've upsized our 2025 convertible bonds We stopped the baby bond market and negotiated that facility, which I would describe as innovative and climate-linked. Against the backdrop in rates, which we've experienced and are experiencing, inventories are low. Crude prices have recently stabilized, setting the scene for an enduring recovery, which we believe will follow the usual signal pattern in markets. the second half of the year. We've seen OPEC mid last month who flagged the progressive reduction in their current supply cuts. These cuts should be eliminated entirely by the third quarter of 2022. And this is, or can be a sensible trajectory to use for the anticipated demand recovery. The tanker market recoveries, therefore, as I've mentioned before, deferred rather than canceled, but we remain increasingly confident in our position. I should also add that against the backdrop of the weak market, the outlook of premium which can be achieved really by our eco and scrubber-equipped vessels continues to increase, and we expect the spread to continue to widen in the quarters to come similar to what we've experienced in the first quarter of 2020 and the last quarter of 2019, actually. In similarity with other spaces, product anchor values have continued to improve. Input prices are increasing as well, and yard availability remains low. There is demand for new tonnage in other sectors that continues to be very strong, and this of course, positively impacts the product anchor supply side. We believe this increase in asset values is a precursor to an improvement in cash earnings. Quietly but steadily, our incumbency position has become more and more valuable throughout this point of the cycle, and we have seen this year how richly patients can be rewarded in And we see no reason why the move up in tanker rates should differ in terms of recovery path going forward. Many of the same variables, particularly constrained supply, are evident and are here to stay. We remain optimally positioned to capture this upswing as the world continues to normalize. And I will now pass the word to Lars Denkers, which is going to walk us through a market overview. Lars?