Scorpio Tankers Inc.

Hello and welcome to the Scorpio Tankers Second Quarter 2026 Conference Call. I would now like to turn the call over to James Doyle, Head of Corporate Development and Investment Relations. Please go ahead, sir.

Thank you for joining us today. Welcome to the Scorpio Tankers Second Quarter 2026 Earnings Conference Call. On the call with me today are Emanuele Lauro, Chief Executive Officer, Robert Bugbee, President, Cameron Mackey, Chief Operating Officer, Chris Avella, Chief Financial Officer, Lars Dencker Nielsen, Chief Commercial Officer. Earlier today, we issued our second 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, July 30th, 2026, and may contain forward-looking statements that involve risk and uncertainty. Actual results may differ 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 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 made available on the industrial 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 Lauro.

Emanuele Lauro Thank you, James. and good morning or good afternoon to all. So last quarter, I spoke about our focus on the things that we can control, like strengthening our balance sheet, lowering our cost of capital, reducing our cash break evens, optimizing our fleet, securing attractive time charter contracts and returning capital to shareholders. That approach has not changed. And during the second quarter, we continue to execute against each of these priorities. Financially, the results speak for themselves. The second quarter was the strongest in Scorpio Tankers history, generating adjusted EBITDA in excess of $300 million and adjusted net income of $243.7 million. We continue to strengthen our financial position. Today our cash position stands at more than $1.9 billion. During the quarter we completed one of the most attractive financing transactions in the company's history. We've issued $605 million of convertible bonds at a yield to maturity of approximately 1%. We also repaid at the same time $589 million of debt which was carrying an interest rate between five and seven and a half percent. So replacing our highest cost of capital debt with our lowest cost of capital further improved our balance sheet and reduced our cost of funding while preserving significant financial flexibility. As a result, our daily Cash break events remains approximately $11,000 per day, which is one of the lowest in the industry. We also continued during the second quarter to optimize our fleet. Since the beginning of the year, we have sold 19 vessels, most of them 11 or 12 years old, at prices above what we originally paid for them more than a decade ago. As a point of reference, the last four sales, which were all LR2s, were completed at prices above the cost of the LR2 new buildings we currently have on order. Tomorrow we will welcome the STI MOXIE, our first MR new building. who is delivering into the fleet tomorrow, as I said. This brief order broke down to 13 vessels. This reflects our philosophy on fleet renewal, realizing attractive values from older assets while reinvesting in more fuel-efficient vessels that will strengthen the fleet for many years to come. Return to shareholders. also remains the priority. During the quarter, we purchased approximately 2 million shares for $155 million. And today, our board declared the quarterly dividend of 45 cents per share. These two actions combined represent more than $175 million returned to shareholders during the second quarter. On the commercial side, We entered into charter agreements for three MR vessels for a minimum period of three years. These vessels are expected to enter the TC contracts in December of this year, allowing us to benefit on the current strong spot environment that we are experiencing. Customers do not commit to multi-year charters without confidence in the market, and we view these agreements as another encouraging indication of the long-term fundamentals of our business. While freight rates have moderated from the exceptional levels we've experienced early in the year, they remain at levels that continue to generate meaningful free cash flow for us. At the same time, geopolitical developments, particularly in the Middle East, create uncertainty. We do not pretend to know how or when events will evolve. Shipping has always been and will remain a cyclical business Markets rise and fall and geopolitical events introduce uncertainty that no one can really predict with precision. Our job is not to predict the cycle. Our job is to be prepared for it. And this is what we're doing. That is why we continue to strengthen our balance sheet, lower our cost of capital, reduce our cash break events, optimize our fleet, renew our asset base, and maintain sustainable liquidity. We believe these decisions position Scorpio Tankers to generate meaningful cash flow when markets are strong while giving us the resilience and financial flexibility to capitalize opportunities when conditions inevitably change. The philosophy has been with us for many years and it will continue to guide us in the years ahead. My opening remarks are over and I would like to turn the call back to Jade, please. Thank you.