Scorpio Tankers Inc. Announces Financial Results for the

MONACO--(Marketwired - Jul 29, 2013) -  Scorpio Tankers Inc. ( NYSE : STNG ) ("Scorpio Tankers," or the "Company") today reported its results for the three and six months ended June 30, 2013.

Results for the three months ended June 30, 2013 and 2012

For the three months ended June 30, 2013, the Company had an adjusted net income of $3.6 million (see Non-GAAP Measure section below), or $0.03 basic and diluted earnings per share, excluding a $0.3 million, or $0.00 per share of unrealized gain on derivative financial instruments. Including the unrealized gain on derivative financial instruments, the Company had net income of $4.0 million, or $0.03 basic and diluted earnings per share. 

For the three months ended June 30, 2012, the Company had a net loss of $4.0 million, or $0.10 basic and diluted loss per share. 

Results for the six months ended June 30, 2013 and 2012

For the six months ended June 30, 2013, the Company had an adjusted net income of $10.2 million (see Non-GAAP Measure section below), or $0.09 basic and diluted earnings per share, excluding a $0.4 million, or $0.00 per share unrealized gain on derivative financial instruments. Including the unrealized gain on derivative financial instruments, the Company had net income of $10.6 million or $0.09 basic and diluted earnings per share. 

For the six months ended June 30, 2012, the Company had an adjusted net loss of $4.6 million, or $0.12 basic and diluted loss per share, excluding a $4.5 million, or $0.11 basic and diluted loss per share relating to the loss from sales of STI Conqueror , STI Matador, and STI Gladiator . Including the loss from the sales of vessels, the Company had a net loss of $9.1 million or $0.23 basic and diluted loss per share.

Declaration of Dividend On July 29, 2013, the Scorpio Tankers' board of directors declared a quarterly cash dividend of $0.035 per share, payable on September 25, 2013 to all shareholders as of September 10, 2013 (the record date). There are currently 164,656,424 shares outstanding.

Emanuele Lauro, chief executive officer and chairman of the board, commented, "Our year-over-year performance continues to improve both as a result of stronger market fundamentals and a stronger Company. The seasonal weakness which we typically experience in the second and third quarter has been particularly short-lived in the Atlantic basin this year. Burgeoning exports of refined products from the United States has contributed to a significant counter-seasonal swing in MR vessel freight rates since the end of June, reaching levels in excess of $20,000 per day.

"We are confident in the outlook for freight markets in the Eastern hemisphere and as well for the LPG trade as major global infrastructure develops. Finally, our conviction in sustained profitability for the Company has led our Board of Directors to authorize an increase in our quarterly dividend by 40%."

Summary of Recent and Second Quarter Significant Events:

• Executed the previously announced $525.0 million 2013 Credit Facility in July 2013 (see additional information below). 
• Reached agreements with Hyundai Samho Heavy Industries ("HSHI") and Daewoo Shipbuilding and Marine Engineering Co., Ltd. ("DSME") in July 2013 for the construction of a minimum of five and up to 10 Very Large Gas Carriers ("VLGCs") for approximately $75.0 million each, with deliveries scheduled in 2015. 
• Declared and paid a quarterly cash dividend on the Company's common stock of $0.025 per share in June 2013.
• Took delivery of the eighth, ninth and tenth MR tankers under the Company's Newbuilding Program, STI Beryl, STI Le Rocher and STI Larvotto in April, June and July 2013, respectively. After delivery, each vessel began a time charter for up to 120 days at approximately $19,000 per day.
• Closed on a registered direct placement of common shares in May 2013, raising aggregate net proceeds of $289.1 million.
• Reached agreements in May 2013 with two shipyards to construct four 114,000 dwt LR2 product tankers for approximately $50.5 million each, two at HSHI and two at DSME. These vessels are scheduled to be delivered in the first and second quarters of 2015. 
• Reached an agreement in May 2013 with SPP Shipbuilding Co., Ltd. of South Korea ("SPP") to construct four 52,000 dwt MR product tankers for approximately $32.5 million each. These vessels are scheduled to be delivered in the first and second quarters of 2015.
• Reached agreements in May 2013 with Hyundai Mipo Dockyard Co. Ltd. of South Korea ("HMD") for the construction of six Handymax ice class-1A tankers for approximately $31.6 million each with expected deliveries in the third quarter of 2014. 
• Reached an agreement in April 2013 with an unaffiliated third party for the purchase of four MR tankers currently under construction at HMD for approximately $36.5 million each. The first two vessels under this agreement, STI Le Rocher and STI Larvotto were delivered in June and July 2013, respectively and the third and fourth vessels are expected to be delivered in August and September 2013. 

VLGC Newbuilding Agreements

In July 2013, the Company reached agreements with HSHI and DSME for the construction of a minimum of five and up to 10 VLGCs for approximately $75.0 million each. The vessels are 84,000 cubic meter tankers designed for the carriage of liquefied petroleum gas ("LPG"). Of the first five vessels, two are scheduled to be delivered in the second quarter of 2015, one in the third quarter of 2015, and two in the fourth quarter of 2015. These agreements replace the previously announced agreement to construct four LR2 vessels at Samsung Heavy Industries.

2013 Credit Facility

In July 2013, we executed final documentation for the previously announced $525.0 million 2013 Credit Facility. The 2013 Credit Facility consists of a $260.0 million delayed draw term loan facility and a $265.0 million revolving credit facility. Drawdowns under the 2013 Credit Facility will be secured by certain vessels for which we have entered into newbuilding contracts ("Collateral").

A single drawdown of the term loan may occur in connection with the delivery of each newbuilding vessel that provides security for this credit facility in an amount equal to the lesser of 60% of (i) the contract price for such vessel or (ii) its fair market value. The drawdowns under the revolving loan may occur in connection with the delivery of certain newbuilding vessels and is also capped at the lesser of 60% of the loan amount or fair market value, with such amount, once drawn, available on a revolving basis. In general, drawdowns under the term loan are available until January 31, 2015 and drawdowns under the revolving loan are available until July 31, 2015 and each will bear interest at LIBOR plus an applicable margin of 3.50%.

The term loan is payable and the revolving loans reduced, in each case, in an amount equal to 1/60th of such loan on a consecutive quarterly basis until final maturity on the sixth anniversary of the facility.

The 2013 Credit Facility includes financial covenants that are similar to the covenants in the other credit facilities.

Time chartered-in update

In July 2013, the Company agreed to time charter-in and took delivery of a 2008 built, 73,666 dwt, LR1 product tanker for one year for approximately $14,000 per day. This agreement contains an option for the Company to extend the charter for an additional year at $15,000 per day. 

In July 2013, the Company entered into new agreements on two vessels that are currently time chartered-in. The agreements are for two Handymax product tankers for one year at $12,800 per day (2005 built, 40,471 dwt and 2006 built, 40,426 dwt). These agreements commenced in July 2013 upon expiration of the prior agreements. These agreements also contain options for the Company to extend the charters for an additional year at $13,550 per day. 

Conference Call The Company will have a conference call on July 29, 2013 at 2:30 PM Eastern Daylight Time and 8:30 PM Central European Time

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888)-211-4495 (U.S.) or 1(913) 312-0949 (International). The conference participant passcode is 2139106. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

Slides and Audio Webcast:

There will also be a simultaneous live webcast over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com . Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: http://www.visualwebcaster.com/event.asp?id=95304

Current Liquidity As of July 26, 2013, the Company had $431.9 million in cash and $78.5 million available to draw down from its 2010 Revolving Credit Facility. 

Debt

As of July 29, 2013, the Company's outstanding debt balance is as follows:

2010 Revolving Credit Facility		$	-		million
2011 Credit Facility			66.3		million
STI Spirit Credit Facility			23.4		million
Newbuilding Credit Facility			86.8		million
2013 Credit Facility			-		million
Total		$	176.5		million

2010 Revolving Credit Facility

In June 2013, the Company repaid $17.2 million into its 2010 Revolving Credit Facility. There is currently $78.5 million available to draw down under this facility.

STI Spirit Credit Facility

The credit facility with DVB Bank SE requires that the charter-free market value of STI Spirit shall be no less than 140% of the then outstanding loan balance. The Company posted additional cash collateral of $2.8 million into an escrow account in June 2013 to maintain compliance with this covenant. The amount held in escrow will be re-evaluated at the next measurement date, December 31, 2013. 

2011 Credit Facility

In April 2013, the Company drew down $17.7 million from the 2011 Credit Facility to partially finance the delivery of the Company's eighth newbuilding vessel, STI Beryl.  

Newbuilding Program

During the second quarter of 2013, the Company made $162.3 million of installment payments on its newbuilding vessels. The Company currently has 53 newbuilding vessel orders with HMD, SPP, HSHI and DSME (24 MRs, 12 Handymaxes, 12 LR2s and five VLGCs). The estimated future payment dates and amounts are as follows*:

Q3 2013		$	256.2		million**
Q4 2013			157.3		million
Q1 2014			182.5		million
Q2 2014			288.2		million
Q3 2014			403.6		million
Q4 2014			269.6		million
Q1 2015			127.3		million
Q2 2015			207.3		million
Q3 2015			67.5		million
Q4 2015			15.0		million
Total		$	1,974.5		million

*These are estimates only and are subject to change as construction progresses.  **$63.2 million has been paid prior to the date of this press release, including the final installment payment of $18.4 million relating to the delivery of STI Larvotto.  

Explanation of Variances on the Second Quarter of 2013 Financial Results Compared to the Second Quarter of 2012

For the three months ended June 30, 2013, the Company recorded net income of $4.0 million compared to a net loss of $4.0 million in the three months ended June 30, 2012. The following were the significant changes between the two periods:

• Time charter equivalent, or TCE revenues, a non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is also included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended June 30, 2013 and 2012:

		For the three months ended June 30,
In thousands of U.S. dollars		2013				2012
Vessel revenue		$	51,533			$	27,487
Voyage expenses			(1,333	)			(7,797	)
TCE revenue		$	50,200			$	19,690

• TCE revenue increased by $30.5 million to $50.2 million as a result of an increase in the average number of operating vessels (owned and time chartered-in) to 35.9 from 17.8 for the three month periods ended June 30, 2013 and 2012, respectively. Additionally, the Company experienced an increase in time charter equivalent revenue per day to $15,444 per day from $12,258 per day for the three months ended June 30, 2013 and 2012, respectively (see the breakdown of daily TCE averages below). 
• Vessel operating costs increased $1.5 million to $8.5 million from $7.0 million. This increase was driven by an increase in the Company's owned fleet to an average of 14.69 vessels from 9.55 vessels for the three months ended June 30, 2013 and 2012, respectively. This increase was offset by a decrease in operating costs per day to $6,262 per day from $7,942 per day for the three months ended June 30, 2013 and 2012, respectively. The improvement in operating costs per day was primarily driven by the mix of vessels in the Company's fleet. 
  • The Company's fleet for the three months ended June 30, 2013 included the first eight vessels under the Company's Newbuilding program for all or part of the period. Daily operating costs for these vessels were $5,945 per day. The Company's fleet for three months ended June 30, 2012 did not include such vessels and included STI Matador, STI Gladiator, STI Diamond and STI Coral, which were sold during 2012. Daily operating costs for these vessels were $8,241 per day. 
• Charterhire expense increased $17.2 million to $27.0 million as a result of an increase in the average number of time chartered-in vessels to 21.19 from 8.25 for the three months ended June 30, 2013 and 2012, respectively. See the Company's Fleet List below for the terms of these agreements.
• Depreciation expense increased $2.3 million to $5.5 million primarily as a result of (i) an increase in the average number of owned vessels to 14.69 from 9.55 for the three months ended June 30, 2013 and 2012, and (ii) a change in the mix vessels in the Company's fleet. Both were driven by the deliveries of the first eight vessels under the Company's Newbuilding program offset by the sales of STI Matador, STI Gladiator, STI Diamond and STI Coral in 2012.  
• General and administrative expenses increased $2.6 million to $5.3 million. This increase was driven by (i) a $1.5 million increase in restricted stock amortization (non-cash) as a result of restricted stock issued during the second quarter under the Company's Equity Incentive Plan and (ii) an overall increase in other general and administrative expenses due to the significant growth in the Company's fleet and Newbuilding program. 

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Profit or Loss
(unaudited)
			For the three months ended June 30,								For the six months ended June 30,
In thousands of U.S. dollars except per share and share data			2013				2012				2013				2012
Revenue
	Vessel revenue			51,533				27,487				96,457				56,611
Operating expenses:
	Vessel operating costs			(8,527	)			(6,966	)			(16,498	)			(15,784	)
	Voyage expenses			(1,333	)			(7,797	)			(2,533	)			(13,647	)
	Charterhire			(26,972	)			(9,766	)			(47,469	)			(16,891	)
	Depreciation			(5,521	)			(3,178	)			(10,288	)			(6,824	)
	Loss from sale of vessels			-				(31	)			-				(4,525	)
	General and administrative expenses			(5,290	)			(2,737	)			(8,049	)			(5,592	)
	Total operating expenses			(47,643	)			(30,475	)			(84,837	)			(63,263	)
Operating income / (loss)				3,890				(2,988	)			11,620				(6,652	)
Other (expense) and income, net
	Financial expenses			(476	)			(1,049	)			(1,875	)			(2,475	)
	Realized (loss) / gain on derivative financial instruments			(46	)			-				23				-
	Unrealized gain on derivative financial instruments			323				-				365				-
	Financial income			369				1				550				2
	Other expenses, net			(92	)			(8	)			(107	)			(20	)
	Total other expense, net			78				(1,056	)			(1,044	)			(2,493	)
Net income / (loss)			$	3,968			$	(4,044	)		$	10,576			$	(9,145	)
Earnings / (loss) per share
	Basic and diluted		$	0.03			$	(0.10	)		$	0.09			$	(0.23	)

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(unaudited)
			As of
In thousands of U.S. dollars			June 30, 2013				December 31, 2012
Assets
Current assets
Cash and cash equivalents			$	520,849			$	87,165
Accounts receivable				62,847				36,438
Prepaid expenses and other current assets				4,076				956
Inventories				2,525				2,169
Total current assets				590,297				126,728
Non-current assets
Vessels and drydock				498,639				395,412
Vessels under construction				261,580				50,251
Other assets				11,895				889
Total non-current assets				772,114				446,552
Total assets			$	1,362,411			$	573,280
Current liabilities
Bank loans				13,373				7,475
Accounts payable				12,868				11,387
Accrued expenses				12,384				3,057
Derivative financial instruments				738				844
Total current liabilities				39,363				22,763
Non-current liabilities
Bank loans				160,448				134,984
Derivative financial instruments				378				743
Total non-current liabilities				160,826				135,727
Total liabilities				200,189				158,490
Shareholders' equity
Issued, authorized and fully paid in share capital:
	Share capital			1,658				650
	Additional paid in capital			1,255,260				519,493
Treasury shares				(7,938	)			(7,938	)
Hedging reserve				(250	)			(329	)
Accumulated deficit				(86,508	)			(97,086	)
Total shareholders' equity				1,162,222				414,790
Total liabilities and shareholders' equity			$	1,362,411			$	573,280

Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
		For the six months ended June 30,
In thousands of U.S. dollars		2013				2012
Operating activities
Net income / (loss)		$	10,576			$	(9,145	)
Loss from sale of vessels			-				4,525
Depreciation			10,288				6,824
Amortization of restricted stock			2,882				1,706
Amortization of deferred financing fees			536				627
Straight-line adjustment for charterhire expense			(118	)			89
Unrealized gain on derivative financial instruments			(365	)			-
			23,799				4,626
Changes in assets and liabilities:
Drydock payments			(1,381	)			(119	)
Increase in inventories			(356	)			(561	)
Increase in accounts receivable			(26,410	)			(3,608	)
(Increase)/decrease in prepaid expenses and other current assets			(3,146	)			476
(Decrease)/increase in other assets			(394	)			1,068
Increase in accounts payable			1,684				2,333
(Decrease)/increase in accrued expenses			(833	)			1,111
			(30,836	)			700
Net cash (outflow) / inflow from operating activities			(7,037	)			5,326
Investing activities
Acquisition of vessels and payments for vessels under construction			(323,548	)			(46,680	)
Proceeds from disposal of vessels			-				52,236
Net cash (outflow) / inflow from investing activities			(323,548	)			5,556
Financing activities
Bank loan repayment			(21,452	)			(58,891	)
Bank loan drawdown			52,050				25,708
Debt issuance costs			(439	)			(2,097	)
Gross proceeds from issuance of common stock			765,037				27,000
Equity issuance costs			(26,811	)			(1,118	)
Purchase of treasury shares			-				(2,000	)
Dividends paid			(4,116	)			-
Net cash inflow / (outflow) from financing activities			764,269				(11,398	)
Increase in cash and cash equivalents			433,684				(516	)
Cash and cash equivalents at January 1,			87,165				36,833
Cash and cash equivalents at June 30,		$	520,849			$	36,317

Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three and six months ended June 30, 2013 and 2012
(unaudited)
		For the three months ended June 30,						For the six months ended June 30,
		2013			2012			2013			2012
Adjusted EBITDA (1) (in thousands of U.S. dollars)		$	11,655		$	1,105		$	24,706		$	6,383
Average Daily Results
Time charter equivalent per day (2)		$	15,444		$	12,258		$	15,943		$	13,329
Vessel operating costs per day (3)			6,262			7,942			6,529		$	8,042
Aframax/LR2
TCE per revenue day (2)		$	12,681		$	491		$	14,680		$	9,319
Vessel operating costs per day (3)			7,301			10,363			7,131			9,115
Panamax/LR1
TCE per revenue day (2)		$	14,242		$	15,591		$	13,600		$	15,138
Vessel operating costs per day (3)			6,553			7,496			7,264			8,042
MR
TCE per revenue day (2)		$	17,840		$	13,210		$	18,000		$	11,845
Vessel operating costs per day (3)			5,945			7,538			5,905			7,880
Handymax
TCE per revenue day (2)		$	13,906		$	10,968		$	14,979		$	13,605
Vessel operating costs per day (3)			6,211			8,340			6,453			7,766
Fleet data
Average number of owned vessels			14.69			9.55			13.73			10.71
Average number of time chartered-in vessels			21.19			8.25			19.02			7.18
Drydock
Expenditures for drydock (in thousands of U.S. dollars)			-			-			-			-

(1)	See Non-GAAP Measure section below
(2)	Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. Revenue days are the number of days the vessel is owned less the number of days the vessel is off-hire for drydock and repairs.
(3)	Vessel operating costs per day represent vessel operating costs excluding non-recurring expenses (for example insurance deductible expenses for repairs) divided by the number of days the vessel is owned during the period.

Fleet List as of July 29, 2013
	Vessel Name		Year Built		DWT		Ice class				Employment		Vessel type
	Owned vessels
1	STI Highlander		2007		37,145		1A				SHTP (1)		Handymax
2	STI Amber		2012		52,000		-				SMRP(4)		MR
3	STI Topaz		2012		52,000		-				SMRP(4)		MR
4	STI Ruby		2012		52,000		-				SMRP(4)		MR
5	STI Garnet		2012		52,000		-				SMRP(4)		MR
6	STI Onyx		2012		52,000		-				SMRP(4)		MR
7	STI Sapphire		2013		52,000		-				SMRP(4)		MR
8	STI Emerald		2013		52,000		-				SMRP(4)		MR
9	STI Beryl		2013		52,000		-				SMRP(4)		MR
10	STI Le Rocher		2013		52,000		-				Spot		MR
11	STI Larvotto		2013		52,000		-				Spot		MR
12	Noemi		2004		72,515		-				SPTP (2)		LR1
13	Senatore		2004		72,514		-				SPTP (2)		LR1
14	STI Harmony		2007		73,919		1A				SPTP (2)		LR1
15	STI Heritage		2008		73,919		1A				SPTP (2)		LR1
16	Venice		2001		81,408		1C				SPTP (2)		Post-Panamax
17	STI Spirit		2008		113,100		-				SLR2P (3)		LR2
	Total owned DWT				1,044,520

	Time Chartered-In vessels													Time Charter Info
	Vessel Name		Year Built			DWT		Ice class		Employment		Vessel type		Daily Base Rate		Expiry (5)
18	Freja Polaris		2004			37,217		1B		SHTP (1)		Handymax		$12,700		14-Apr-14		(6)
19	Kraslava		2007			37,258		1B		SHTP (1)		Handymax		$12,800		18-May-14		(7)
20	Krisjanis Valdemars		2007			37,266		1B		SHTP (1)		Handymax		$12,800		14-Apr-14		(8)
21	Jinan		2003			37,285		-		SHTP (1)		Handymax		$12,600		28-Apr-15
22	Histria Azure		2007			40,394		-		SHTP (1)		Handymax		$12,600		04-Apr-14		(9)
23	Histria Coral		2006			40,426		-		SHTP (1)		Handymax		$12,800		17-Jul-14		(10)
24	Histria Perla		2005			40,471		-		SHTP (1)		Handymax		$12,800		15-Jul-14		(10)
25	STX Ace 6		2007			46,161		-		SMRP (4)		MR		$14,150		17-May-14		(11)
26	Targale		2007			49,999		-		SMRP (4)		MR		$14,500		17-May-14		(12)
27	Ugale		2007			49,999		1B		SMRP (4)		MR		$14,000		15-Jan-14		(13)
28	Gan Triumph		2010			49,999		-		SMRP (4)		MR		$14,150		20-May-14
29	Nave Orion		2013			49,999		-		SMRP (4)		MR		$14,300		25-Mar-15		(14)
30	Freja Lupus		2012			50,385		-		SMRP (4)		MR		$14,760		26-Apr-14		(15)
31	Gan-Trust		2013			51,561		-		SMRP (4)		MR		$16,250		06-Jan-16		(16)
32	Usma		2007			52,684		1B		SMRP (4)		MR		$13,500		03-Jan-14		(17)
33	SN Federica		2003			72,344		-		SPTP (2)		LR1		$11,250		15-May-15		(18)
34	King Douglas		2008			73,666				SPTP (2)		LR1		$14,000		26-Jul-14		(19)
35	Hellespont Promise		2007			73,669		-		SPTP (2)		LR1		$12,500		16-Dec-13		(20)
36	FPMC P Eagle		2009			73,800		-		SPTP (2)		LR1		$12,800		09-Sep-13		(21)
37	FPMC P Hero		2011			99,995		-		SLR2P (3)		LR2		$14,750		02-Nov-13		(22)
38	FPMC P Ideal		2012			99,993		-		SLR2P (3)		LR2		$15,000		09-Jan-14		(23)
39	Densa Alligator		2013			105,708		-		SLR2P (3)		LR2		$16,500		11-Sep-14		(24)
40	Khawr Aladid		2006			106,003		-		SLR2P (3)		LR2		$15,400		11-Jul-15
41	Fair Seas		2008			115,406		-		SLR2P (3)		LR2		$16,250		31-Jan-14		(25)
42	Pink Stars		2010			115,592		-		SLR2P (3)		LR2		$16,125		10-Apr-14
43	Four Sky		2010			115,708		-		SLR2P (3)		LR2		$16,250		01-Sep-14		(26)
44	Orange Stars		2011			115,756		-		SLR2P (3)		LR2		$16,125		06-Apr-14
	Total time chartered-in DWT					1,838,744
	Newbuildings currently under construction
	Vessel Name		Yard			DWT		Ice class				Vessel type
	Product tankers
45	Hull 2451		HMD	(27)		38,000		1A				Handymax
46	Hull 2452		HMD	(27)		38,000		1A				Handymax
47	Hull 2453		HMD	(27)		38,000		1A				Handymax
48	Hull 2454		HMD	(27)		38,000		1A				Handymax
49	Hull 2462		HMD	(27)		38,000		1A				Handymax
50	Hull 2463		HMD	(27)		38,000		1A				Handymax
51	Hull 2464		HMD	(27)		38,000		1A				Handymax
52	Hull 2465		HMD	(27)		38,000		1A				Handymax
53	Hull 2476		HMD	(27)		38,000		1A				Handymax
54	Hull 2477		HMD	(27)		38,000		1A				Handymax
55	Hull 2478		HMD	(27)		38,000		1A				Handymax
56	Hull 2479		HMD	(27)		38,000		1A				Handymax
57	Hull 2349		HMD	(27)		52,000						MR
58	Hull 2350		HMD	(27)		52,000						MR
59	Hull 2389		HMD	(27)		52,000						MR
60	Hull 2390		HMD	(27)		52,000						MR
61	Hull 2391		HMD	(27)		52,000						MR
62	Hull 2392		HMD	(27)		52,000						MR
63	Hull 2449		HMD	(27)		52,000						MR
64	Hull 2450		HMD	(27)		52,000						MR
65	Hull 2458		HMD	(27)		52,000						MR
66	Hull 2459		HMD	(27)		52,000						MR
67	Hull 2460		HMD	(27)		52,000						MR
68	Hull 2461		HMD	(27)		52,000						MR
69	Hull S1138		SPP	(28)		52,000						MR
70	Hull S1139		SPP	(28)		52,000						MR
71	Hull S1140		SPP	(28)		52,000						MR
72	Hull S1141		SPP	(28)		52,000						MR
73	Hull S1142		SPP	(28)		52,000						MR
74	Hull S1143		SPP	(28)		52,000						MR
75	Hull S1144		SPP	(28)		52,000						MR
76	Hull S1145		SPP	(28)		52,000						MR
77	Hull S1167		SPP	(28)		52,000						MR
78	Hull S1168		SPP	(28)		52,000						MR
79	Hull S1169		SPP	(28)		52,000						MR
80	Hull S1170		SPP	(28)		52,000						MR
81	Hull S703		HSHI	(29)		114,000						LR2
82	Hull S704		HSHI	(29)		114,000						LR2
83	Hull S705		HSHI	(29)		114,000						LR2
84	Hull S706		HSHI	(29)		114,000						LR2
85	Hull S709		HSHI	(29)		114,000						LR2
86	Hull S710		HSHI	(29)		114,000						LR2
87	Hull S715		HSHI	(29)		114,000						LR2
88	Hull S716		HSHI	(29)		114,000						LR2
89	Hull 5394		DSME	(30)		114,000						LR2
90	Hull 5395		DSME	(30)		114,000						LR2
91	Hull 5398		DSME	(30)		114,000						LR2
92	Hull 5399		DSME	(30)		114,000						LR2
	Total product tankers DWT					3,072,000
	Vessel Name		Yard			Vessel size (cbm)						Vessel type
	LPG Carriers
93	VLGC #1		DSME	(31)		84,000						VLGC
94	VLGC #2		DSME	(31)		84,000						VLGC
95	Hull S749		HSHI	(32)		84,000						VLGC
96	Hull S750		HSHI	(32)		84,000						VLGC
97	Hull S751		HSHI	(32)		84,000						VLGC
	Total LPG carriers (cbm)					420,000

(1)	This vessel operates in or is expected to operate in the Scorpio Handymax Tanker Pool (SHTP). SHTP is operated by Scorpio Commercial Management (SCM). SHTP and SCM are related parties to the Company.
(2)	This vessel operates in or is expected to operate in the Scorpio Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related party to the Company.
(3)	This vessel operates in or is expected to operate in the Scorpio LR2 Pool (SLR2P). SLR2P is operated by SCM. SLR2P is a related party to the Company.
(4)	This vessel operates in or is expected to operate in the Scorpio MR Pool (SMRP). SMRP is operated by SCM. SMRP is a related party to the Company.
(5)	Redelivery from the charterer is plus or minus 30 days from the expiry date.
(6)	We have an option to extend the charter for an additional year at $14,000 per day.
(7)	We have extended the charter for an additional ten months at $12,800 per day beginning in July 2013. We have an option to extend the charter for an additional year at $13,650 per day.
(8)	We have extended the charter for an additional ten months at $12,800 per day beginning in June 2013. We have an option to extend the charter for an additional year at $13,650 per day. The agreement also contains a 50% profit and loss sharing provision whereby we split all of the vessel's profits and losses above or below the daily base rate with the vessel's owner.
(9)	We have an option to extend the term of the charter for an additional year at $13,550 per day.
(10)	We entered into new charter agreements at $12,800 per day. We have options to extend the charters for an additional year at $13,550 per day.
(11)	We have an option to extend the charter for an additional year at $15,150 per day.
(12)	We have options to extend the charter for up to three consecutive one year periods at $14,850 per day, $15,200 per day and $16,200 per day, respectively.
(13)	We have an option to extend the charter for an additional year at $15,000 per day.
(14)	We have an option to extend the charter for an additional year at $15,700 per day.
(15)	We have an option to extend the charter for an additional year at $16,000 per day.
(16)	The daily base rate represents the average rate for the three year duration of the agreement. The rate for the first year is $15,750 per day, the rate for the second year is $16,250 per day, and the rate for the third year is $16,750 per day. We have options to extend the charter for up to two consecutive one year periods at $17,500 per day and $18,000 per day, respectively.
(17)	We have an option to extend the charter for an additional year at $14,500 per day.
(18)	We have an option to extend the charter for an additional year at $12,500 per day. We have also entered into an agreement with the owner whereby we split all of the vessel's profits above the daily base rate.
(19)	We have an option to extend the charter for an additional year at $15,000 per day.
(20)	We have an option to extend the charter for an additional six months at $14,250 per day.
(21)	We have also entered into an agreement with a third party whereby we split all of the vessel's profits and losses above or below the daily base rate.
(22)	We have options to extend the charter for three consecutive six month periods at $15,000 per day, $15,250 per day, and $15,500 per day respectively.
(23)	We have options to extend the charter for two consecutive six month periods at $15,250 per day, and $15,500 per day respectively.
(24)	This vessel is expected to be delivered in early September 2013. We have an option to extend the charter for one year at $17,550 per day.
(25)	We have options to extend the charter for two consecutive six month periods at $16,500 per day and $16,750 per day, respectively.
(26)	This vessel is expected to be delivered by the end of September 2013.
(27)	These newbuilding vessels are being constructed at HMD (Hyundai Mipo Dockyard Co. Ltd. of South Korea). Two vessels are expected to be delivered in the third quarter of 2013 and the remaining 22 vessels by the end of 2014.
(28)	These newbuilding vessels are being constructed at SPP (SPP Shipbuilding Co., Ltd. of South Korea ). Eight vessels are expected to be delivered during the second, third and fourth quarters of 2014 and four in the first and second quarter of 2015.
(29)	These newbuilding vessels are being constructed at HSHI (Hyundai Samho Heavy Industries Co., Ltd.). Six vessels are expected to be delivered in the third and fourth quarters of 2014 and two in the first quarter of 2015.
(30)	These newbuilding vessels are being constructed at DSME (Daewoo Shipbuilding and Marine Engineering). Two vessels are expected to be delivered in the fourth quarter of 2014 and two in the second quarter of 2015.
(31)	These newbuilding vessels are being constructed at DSME (Daewoo Shipbuilding and Marine Engineering). One vessel is expected to be delivered in the second quarter and one in the fourth quarter of 2015.
(32)	These newbuilding vessels are being constructed at HSHI (Hyundai Samho Heavy Industries Co., Ltd.). One vessel is expected to be delivered in the second quarter, one in the third quarter and one in the fourth quarter of 2015.

Business Strategy, Dividend Policy, and Stock Buyback Program

Business Strategy

The Company's primary objectives are to profitably grow the business and emerge as a major operator of medium-sized tanker vessels and gas carriers. The Company intends to acquire modern, high-quality tankers and gas carriers through timely and selective acquisitions. The Company is currently concentrating on product or coated tankers and gas carriers because of the fundamentals of these segments, which the Company believes includes:

• increasing demand for refined products and LPG;
• increasing ton miles (distance between new refiners and areas of demand); and
• reduced order book.

Dividend Policy

The declaration and payment of dividends is subject at all times to the discretion of the Company's board of directors. The timing and amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

On July 29, 2013, the Company's board of directors declared a quarterly cash dividend of $0.035 per share, payable on September 25, 2013 to all shareholders as of September 10, 2013 (the record date). On June 25, 2013, the Company paid a quarterly cash dividend on its common stock of $0.025 per share to all shareholders as of June 11, 2013 (the record date).

Share Buyback Program

On July 9, 2010, the Company's board of directors authorized a share buyback program of up to $20 million. The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares. 

As of July 29, 2013, the Company has purchased $7.9 million of shares in the open market at an average price of $6.78.

Non-GAAP Measures This press release describes adjusted net income and Adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. "Non-GAAP" measure). The Non-GAAP measures are presented in this press release as we believe that they provide investors with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

Adjusted net income / (loss)
				For the three months ended June 30,
				2013								2012
In thousands of U.S. dollars except per share and share data				Amount				Per share				Amount				Per share
	Net income / (loss)			$	3,968			$	0.03			$	(4,044	)		$	(0.10	)
	Adjustments:
		Loss from sale of vessels			-				0.00				31				0.00
		Unrealized gain on derivative financial instruments			(323	)			(0.00	)			-				0.00
	Total adjustments				(323	)			(0.00	)			31				0.00
	Adjusted net income/ (loss)			$	3,645			$	0.03			$	(4,013	)		$	(0.10	)
				For the six months ended June 30,
				2013								2012
				Amount				Per share				Amount				Per share
	Net income / (loss)			$	10,576			$	0.09			$	(9,145	)		$	(0.23	)
	Adjustments:
		Loss from sale of vessels			-				0.00				4,525				0.11
		Unrealized gain on derivative financial instruments			(365	)			(0.00	)			-				0.00
	Total adjustments				(365	)			(0.00	)			4,525				0.11
	Adjusted net income/ (loss)			$	10,211			$	0.09			$	(4,620	)		$	(0.12	)

Adjusted EBITDA
			For the three months ended June 30,								For the six months ended June 30,
In thousands of U.S. dollars			2013				2012				2013				2012
	Net income / (loss)		$	3,968			$	(4,044	)		$	10,576			$	(9,145	)
	Financial expenses			476				1,049				1,875				2,475
	Unrealized gain on derivative financial instruments			(323	)			-				(365	)			-
	Financial income			(369	)			(1	)			(550	)			(2	)
	Depreciation			5,521				3,178				10,288				6,824
	Amortization of restricted stock			2,382				892				2,882				1,706
	Loss from sale of vessels			-				31				-				4,525
	Adjusted EBITDA		$	11,655			$	1,105			$	24,706			$	6,383

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 17 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, ten MR tankers, and one post-Panamax tanker) with an average age of 4.1 years, time charters-in 27 product tankers (eight LR2, four LR1, eight MR and seven Handymax tankers), and has contracted for 53 newbuilding vessels (24 MR, 12 LR2, and 12 Handymax ice class-1A product tankers, and 5 Very Large Gas Carriers), two of which are expected to be delivered to the Company by September 2013, 38 within 2014 and the remaining 13 by the end of 2015. Additional information about the Company is available at the Company's website www.scorpiotankers.com , which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.