Scorpio Tankers Inc.

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

Thank you, and thank everyone for joining us today. Welcome to the Scorpio Tankers Third Quarter Earnings Conference Call. On the call with me are Emmanuel Laurel, our Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Lars Duncan Nelson, Commercial Director, James Doyle, Senior Financial Analyst. Earlier today, we issued our third 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, November 11th, 2021, and may contain forward-looking statements that involve risk 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 and the earnings press release that we issued today, as well as Scorpio Tankers SEC filings, which are available at scorpiotankers.com and sec.gov. Call participants are advised that the audio of this conference call is being broadcast live on the internet and is also being recorded for playback purposes. An archive of the webcast will be available on the investor relations page of our website for approximately 14 days. There are slides available at scorpiotankers.com on the investor relations page under reports and presentations. For those asking questions, please leave a number of questions so everyone has a chance. If you have any specific modeling questions, you can contact me later and discuss offline. Now I'd like to introduce Emmanuel.

Thank you, Brian, and welcome to our third quarter results call, everybody. Over the quarter, The market weakness caused by the pandemic has disappointingly continued. We continue to believe that the recovery has been deferred rather than canceled, and the reasons for these convictions are the following, really. First, world refined products consumption is normalizing. Diesel, gasoline, and NAFTA demand are already back at 2019 levels. Jet fuel is lagging a bit behind, but with signs of improvement, as we are seeing the U.S. and European travels, for example, now flowing freely since earlier this week. Asia should follow suit soon with key strategic locations like Singapore, where there are travel restrictions. Second, the seaborne tonne mild demand per barrel consumed is higher as a result of an acceleration of refinery shutdowns from the pandemic and new refineries who have opened and come online. We expect tonne mild demand to exceed 2019 levels over the next few months due to refinery closures and seaborne exports of refined products is expected to increase by over 5% in 2022, meaning that we will exceed pre-COVID levels soon. Third reason is that steel values have inflated significantly, and at Scorpio Tankers, we have a very high gearing to this. Despite cash losses in the quarter, our equity and AV per share, may have increased, actually. The asset values on a five-year-old MR have increased by 8% year-to-date. Five-year-old LR2s have increased by more than 20% year-to-date. And both new building prices on MRs and LR2s are year-to-date up more than 20%. Fourth reason, scrapping has picked up and yards are full, meaning supply will remain constrained for several years. Product tankers scrapped year-to-date see 32 MRs, which is the largest number of MRs scrapped on record. In addition, there have been three LR1s and eight LR2s, which have also been scrapped so far this year. And lastly, with our eco and scrubber fitted vessels, we are well positioned in an environment of rising fuel prices and widening spreads between grades of fuel. The spread between the scrubber suitable HSFO and BLSO is $150 per ton at present, and it is growing. Because of our investment in scrubbers, this means that at this current $150 per ton spread, the company would generate an additional $70 million in TCE in 2022. so to sum up our modern spot exposed fleet remains very well positioned we have continued to focus on sensible balance sheet management and liquidity management ahead of the normalization of ton my demand and ahead of the upswing in rates which we are finally experiencing now with that i will turn the Call to lives, please.