Scorpio Tankers Inc.

Hello and welcome to the Scorpio Tankers Inc. first quarter 2024 earnings 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 or then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to James Doyle, Head of Corporate Development and IR. Please go ahead, sir.

Thank you for joining us today. Welcome to the Scorpio Tankers First Quarter 2024 Earnings Conference Call. On the call with me today are Emanuele Oro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Chris Avella, Chief Financial Officer, Lars Denker-Nielsen, Chief Commercial Officer. Earlier today, we issued our first quarter earnings press release, which is available on our website, ScorpioTankers.com. The information discussed on this call is based on information as of today, May 9th, 2024, 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 ScorpioTankers 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 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. We will be giving a short presentation today. The presentation is available at ScorpioTankers.com on the investor relations page under reports and presentation. 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. If you have an additional question, please rejoin the queue. Now, I'd like to introduce our Chief Executive Officer, Emmanuel Iwora.

Thank you, James, and good morning to everyone, and thank you for joining us today. We are pleased to announce another strong quarter of financial results. In the first quarter, the company generated $293 million in adjusted EBITDA and 207 in adjusted net income. The market dynamics that have been driving the favorable rate environment continue. Global demand for refined products is robust. Refining capacity remains dislocated, and the maritime supply chain is still constrained. In addition, geopolitical disruptions have tightened the supply curve further and the resulting cash flows from a heightened rate environment have been significant as well as transformational for Scorpio tankers over the past few quarters. In Q1, we continue to focus on reducing our leverage. We made $262 million in unscheduled repayments on our debt and are set to repay an additional 118 during the second quarter. As previously mentioned, the balance sheet and quality of Scorpio as an investment improves each day. Today, our net debt stands at $811 million, which represents the lower end of our target debt level. We anticipate significant reduction in our cash break even starting in the third quarter of this year. In fact, we are working with our lenders to prepay existing debt, which would decrease our daily fleet operating break-evens to $12,500 per day, a figure near the lowest TCE rates earned during the COVID period and in the company's history. This break-even once achieved would be amongst the lowest in the industry, despite Scorpio Tankers actually still owning the most modern product anchor fleet out there. With net debt near scrap value, our modern fleet, low anticipated cash break evens, we have positioned ourselves to act opportunistically to increase shareholder returns and further reduce debt. If things were to remain the same, even the share price discount to NAV, we would favor buybacks as we see them more accreted to shareholders than further increases in regular dividends. As we look forward, we remain optimistic with low global inventories, robust demand, and limited fleet growth, who are all supportive factors for the continued strength in the product anchor rates. We remain committed to delivering value to our shareholders and appreciate your continued support and confidence in Scorpio Tankers. I would like now to turn the call to James for a brief presentation. James.