Scorpio Tankers Inc. (NYSE:STNG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:30 am ET


Scorpio Tankers Inc. (NYSE:STNG) Q3 2019 Earnings Conference Call - Final Transcript


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Hello and welcome to the Scorpio Tankers Inc. third quarter 2019 conference call. I would now like to turn the call over to Brian Lee, Chief Financial Officer. Please go ahead, sir.

Brian Lee

Thank you, and thank you, operator. I want to thank everyone for joining us today, and welcome to the Scorpio Tankers 2019 third quarter earnings conference call. On the call with me are Emanuele Lauro, Chief Executive Officer; Robert Bugbee, President; Cameron Mackey, Chief Operating Officer; Lars Dencker Nielsen, Commercial Director; David Morant, Managing Director; James Doyle, Senior Financial Analyst.

Earlier today we issued our 2019 third quarter earnings press release, which is available on our website. The information discussed on this call is based on the information as of today, November 7, 2019 and may contain forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statement disclosure in the earnings press release that we issued today, as well as Scorpio Tankers' SEC filings, which are available on and 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 Investor Relations page of our website for approximately 14 days.

There are some slides available for this call at on the Investor Relations page under Reports and Presentations. Just as a reminder, if you have specific modeling questions, you can contact me later and discuss offline. And in our press release, we did have an explanation of variances that give guidance on future depreciation, G&A, charter hire expense and interest expense. Now, I'd like to introduce Emanuele Lauro.

Emanuele A. Lauro

Thank you, Brian. And thank you all for attending today's call. In many ways, Q3 marked to come before the storm. I have rarely felt that a quarterly earnings call refer so much to the past rather than to the present. Even for those of us with many years of experience in this industry, this serves as a timely reminder for the rapidity with which the shipping markets can inflect, as the markets in the third quarter bear little resemblance to the strength we anticipate. Despite the rearview mirror, I am pleased with the way the company performed in the third quarter. This period also marked an important milestone for our company in that we concluded a transaction with Trafigura to further extend our market leadership position in the product tanker market.

Today, we have announced the technical details of the ATM program we announced five weeks ago at the time of the Trafigura transaction announcement. We have been in no rush to use it though. In our view, we now stand in the foothills of a powerful inflection driven by the confluence of seasonal, cyclical and structural changes, substantially the impact of IMO 2020. We are satisfied to