Scorpio Tankers Inc.

Good day and welcome to the Scorpio Tankers fourth quarter 2024 conference call. All participants will be in a 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 touchtone phone. 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 IR. Please go ahead.

James Doyle Thank you for joining us today. Welcome to the ScorpioTankers fourth quarter 2024 earnings conference call. On the call with me today are Emanuele Loro, 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 fourth 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, February 13th, 2025, and may contain forward-looking statements that involve risk and uncertainty. Actual results may materialize 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. All 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 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. If you have an additional question, please rejoin the queue. Now, I'd like to introduce our Chief Executive Officer, Emanuele Loro.

Emanuele Loro Thank you, James. Good morning or good afternoon, everyone, and thank you for being with us today. We are pleased to report a strong quarter and a strong year of financial results. In the fourth quarter, the company generated $105 million in adjusted EBITDA and $30 million in adjusted net income. For the full year 2024, we've generated $842 million in adjusted EBITDA and $513 in adjusted net income. 2024 was another transformational year for Scorpio Tankers. financially, operationally, and strategically. We have significantly strengthened our balance sheet by reducing indebtedness by $740 million, expanding our revolving debt capacity, and lowering our daily cash break-evens to $12,500 per day. Our liquidity now stands at $1.3 billion, comprising of $531 million in cash and $788 million in undrawn revolving capacity. For clarity, this excludes our investment in DHT. Operationally, we completed the special surveys and dry docking of 54 vessels during 2024. This is more than half of our fleet. Following the dry docks, these vessels will operate more efficiently and no longer need repositioning voyages solely for their dry docks, which adversely impact earnings. In addition, we sold 12 vessels at attractive prices, many of which were older vessels and thereby improving the age profile of the fleet. We balance our constructive market outlook with the understanding that cyclical downturns in our industry are often triggered by unexpected black swan events, COVID-19 being a prime example of it. As a result, we want to maintain financial flexibility and position the company to thrive under any rate environment. That said, with a strong balance sheet, we can also act opportunistically. During the year, we returned $419 million to shareholders, $336 million of share repurchases, and $84 million in dividends. Recently, we increased our stake in the crude tanker company DHC, capitalizing on its share price lag relative to improving market fundamentals and rates. We continue to view this as an attractive investment opportunity. Our outlook for both crude oil and refined products remains positive. With low leverage, strong liquidity, and a young fleet, we believe we are exceptionally well-positioned. With this, my remarks are concluded, and I would like to turn the call to Robert Bugbee.