New York listed shipping company Scorpio T[ds_preview]ankers has reported a sharp decline of the net income for the first nine months of the year. In the reporting period, several Credit Facilities with banks like HSH, DVB and ABN Amro have been executed.
For the nine months ended September 30, Scorpio announced a net income of $4.8 million. This reflects a huge decline as the corresponding period of 2015 had led to a net income of $183.5 million. The adjusted result for this year was $18.7 million, which excludes from net income a $2.1 million loss on sales of vessels, an aggregate write-off of $14.5 million of deferred financing fees, a $1.6 million unrealized gain on derivative financial instruments and a $1.0 million aggregate gain recorded on the repurchase of $10.0 million aggregate principal amount of the Company‘s Convertible Notes. For the nine months ended September 30, 2015, the Company‘s adjusted net income was $184.9 million.
TCE Revenues
According to the homepage of the company the fleet of Scorpio Tankers consist of 77 owned and 15 chartered vessels. The orderbook has ten vessels to be delivered between 2018 and 2019. With its financial statement, Scorpio presented a summary of the average daily TCE revenue and duration for voyages fixed thus far in the fourth quarter:
- For the LR2s in the pool: approximately $13,000 per day for 60% of the days
- For the LR1 in the pool: approximately $14,000 per day for 50% of the days
- For the MRs in the pool: approximately $10,500 per day for 50% of the days
- For the Handymaxes in the pool: approximately $7,000 per day for 50% of the days
In addition, a summary of the average daily TCE revenue earned during the third quarter of 2016 was published:
- For the LR2s in the pool: $18,793 per revenue day
- For the LR1 in the pool: $10,547 per revenue day
- For the MRs in the pool: $12,254 per revenue day
- For the Handymaxes in the pool: $9,450 per revenue day
Debt refinancings and agreements
During the third quarter of 2016, Scorpio has refinanced the aggregate outstanding indebtedness of $396.8 million under its 2013 Credit Facility and Newbuilding Credit Facility. »As part of these transactions, the Company drew down an aggregate of $418.8 million under its NIBC Credit Facility, 2016 Credit Facility and DVB Credit Facility. Furthermore, the Company amended certain financial covenants under its K-Sure, KEXIM and 2011 Credit Facilities to make them similar to the financial covenants set forth under these new credit facilities«, Scorpio said in the statement. and revealed some details:
- In August 2016, the Company executed a loan facility with ABN AMRO Bank N.V, Nordea Bank Finland plc, acting through its New York branch, and Skandinaviska Enskilda Banken AB. The loan facility was fully drawn in September 2016, and the aggregate proceeds of $288.0 million were used to refinance the existing indebtedness on 16 MR product tankers.
The loan facility consists of a term loan of $192.0 million and a revolving credit facility of $96.0 million. Repayments on the term loan facility will be made in equal, consecutive quarterly installments of $6.8 million through September 2018 and $6.0 million for each quarter thereafter with a final balloon payment due at the maturity date of September 2021. All amounts borrowed under the revolving credit facility are due at the maturity date of September 2021. The facility bears interest at LIBOR plus a margin of 2.50% per annum. - In June 2016, the Company executed a term loan facility with NIBC Bank N.V. This facility was fully drawn in July 2016, and the proceeds of $40.8 million were used to refinance the existing indebtedness on two MR product tankers. The facility will be repaid in eight quarterly installments of $1.0 million, followed by 12 quarterly installments of $0.8 million, and the remainder is due on maturity, which is June 2021. The facility bears interest at LIBOR plus a margin of 2.50% per annum. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company‘s 2016 Credit Facility.
- In September 2016, the Company executed a loan facility with DVB Bank SE. The loan facility was fully drawn in September 2016, and the aggregate proceeds of $90.0 million were used to refinance the existing indebtedness on four MR product tankers. The facility will be repaid in equal, quarterly principal repayments of $1.6 million, has a final maturity of August 2017 and bears interest at LIBOR plus a margin of 1.60% per annum. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company‘s 2016 Credit Facility.
- In November 2016, the Company received a commitment from HSH Nordbank AG for a loan facility of up to $34 million. The loan facility is expected to be used to refinance the existing indebtedness on two MR product tankers, has a final maturity of five years from the first drawdown date, and bears interest at LIBOR plus a margin of 2.50% per annum. The availability is expected to be used to finance up to 60% of the fair market value of the respective vessels. The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company‘s 2016 Credit Facility. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.
