Scorpio Tankers Inc.

Good morning and welcome to the Scorpio Tankers, Inc. Second Quarter 2022 Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to James Doyle, Head of Corporate Development and Investor Relations. Please go ahead.

Thank you for joining us today. Welcome to the Scorpio Tankers Second Quarter 2022 Earnings Conference Call. On the call with me today are Emmanuel L.A. Loro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Brian Lee, Chief Financial Officer, Lars Denker-Nielsen, Commercial Director. Earlier today, we issued our second quarter's earnings press release, which is available on our website, ScorpioTankers.com. The information discussed on this call is based on information as of today, July 28, 2022, 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 in the earnings press release, as well as the 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 broadcasted live on the internet and is also being for playback purposes. An archive of the webcast will be made available on the investor relations page of our website for approximately 14 days. We will be giving a short presentation today. The presentation is available at scorpiotankers.com on the investor relations page under reports and presentations. The slides will also be available on the webcast. After the presentation, we will go to Q&A. For those asking questions, please limit the number of questions to two. Now, I'd like to introduce Chief Executive Officer Emanuele Oro.

Thank you, James. Good day, everyone. In the second quarter, Scorpio Tankers generated its largest quarterly profit in the company's history. The quality of the company as an investment continues to improve, and we are positioned to create shareholders' value in what we believe will be a multi-year cycle. We also believe, consistent with our actions, that the best way to do this is first through improving our balance sheet. In the first half of this year, we reduced our outstanding debt by $511 million, and in addition, our pro forma cash balance has increased by $360 million to $591 million through July. As we start the second half of the year, the company has declared repurchase options on six MRs under sale list back arrangements for $95 million. With this and scheduled amortization, we will reduce our debt by almost $700 million in the first nine months of the year. That counts for a 22% reduction in overall indebtedness. This debt reduction combined with rising asset values leads to a material improvement in the company's loan-to-value as well as net asset value. The third quarter earnings have started strongly. We have booked 44% of the days in the third quarter at a rate close to $45,000 a day. If we were to average $10,000 less, so $35,000 a day for the entire third quarter, the company pro forma liquidity would be close to $700 million at the end of Q3. Our customer expects the current market conditions to be sustained as evidenced by the increase in time charter rates, duration, and activity, and we agree with our customers. Global inventories remain near historic lows. The reopening of the global economy from the COVID-19 pandemic continues to increase the demand for refined products and seaborne exports. Demand for product anchor is expected to increase over the next few years, while supply remains constrained. And as we've mentioned before, there is a record low order book, an aging fleet, and upcoming environmental regulations coming into play. To conclude, our top priority remains reducing our leverage and increasing our liquidity. Thank you for your continued support, and I will now turn the call to James for a brief presentation.