What is a quarterly dividend

what is a quarterly dividend

Scorpio Tankers Inc. Announces Financial Results for the First Quarter of 2015 and Declaration of a Quarterly Dividend Marketwired Monday, April 27, 2015

MONACO--(Marketwired - Apr 27, 2015) - Scorpio Tankers Inc. ( NYSE. STNG ) ("Scorpio Tankers," or the "Company") today reported its results for the three months ended March 31, 2015.

Results for the three months ended March 31, 2015 and 2014

For the three months ended March 31, 2015, the Company's adjusted net income was $39.3 million (see Non-GAAP Measures section below), or $0.26 basic and $0.24 diluted earnings per share, which excludes (i) a gain of $2.0 million, or $0.01 per basic and diluted shares, related to the closing of the sales of Venice. STI Harmony and STI Heritage and (ii) an unrealized loss on derivative financial instruments of $0.6 million, or $0.00 per basic and diluted shares (see non-GAAP Measures section below). For the three months ended March 31, 2015, the Company had net income of $40.7 million, or $0.27 basic and $0.25 diluted earnings per share.

For the three months ended March 31, 2015, the Company's basic and diluted weighted average number of shares were 151,838,124 and 186,916,874, respectively. The diluted weighted average number of shares includes the potentially dilutive shares relating to our Convertible Senior Notes due 2019 (the "Convertible Notes") representing 30,679,767 potential common shares (see below for further information).

For the three months ended March 31, 2014, the Company's adjusted net income was $1.9 million (see Non-GAAP Measure section below), or $0.01 basic and diluted earnings per share, which excludes (i) a gain of $51.4 million, or $0.27 per share, resulting from the sales of seven Very Large Crude Carriers ('VLCCs') under construction, and (ii) an unrealized gain on derivative financial instruments of $47,000 or $0.00 per share. For the three months ended March 31, 2014, the Company had net income of $53.3 million, or $0.28 basic and diluted earnings per share.

Declaration of Dividend

On April 27, 2015, the Scorpio Tankers' board of directors declared a quarterly cash dividend of $0.125 per share, payable on June 10, 2015 to all shareholders as of May 21, 2015 (the record date). As of April 27, 2015 there were 163,827,903 shares outstanding.

Diluted Weighted Number of Shares

Diluted earnings per share for the three months ended March 31, 2015 includes the potentially dilutive shares relating to the Convertible Notes representing 30,679,767 potential common shares. The Convertible Notes were issued in June 2014. The dilutive impact of the Convertible Notes is determined using the if-converted method. Under this method, we assume that the Convertible Notes are converted into common shares during the period and the interest and non-cash amortization expense of $5.3 million associated with these notes is not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive. The Convertible Notes are currently ineligible for conversion.

Summary of Recent and First Quarter Significant Events:

Below is a summary of the voyages fixed thus far in the second quarter of 2015: For the LR2s: approximately $29,000 per day for 48% of the days For the LR1s: approximately $24,000 per day for 48% of the days For the MRs: approximately $23,000 per day for 35% of the days For the Handymaxes: approximately $20,000 per day for 37% of the days Recently took delivery of two vessels under the Company's Newbuilding Program, one LR2, STI Oxford and one MR, STI Queens. Took delivery of 11 vessels under the Company's Newbuilding Program (four LR2, five MR, and two ice-class 1A Handymax) during the first quarter of 2015. Received commitments from two leading European financial institutions for two separate loan facilities of up to $113.2 million in aggregate to partially finance the purchase of four LR2 product tankers that was announced in December 2014. Paid a quarterly cash dividend on the Company's common stock of $0.12 per share in March 2015.

Newbuilding Vessel deliveries

The Company took delivery of two vessels under its Newbuilding Program in April 2015.

STI Oxford, an LR2 product tanker, was delivered from Hyundai Samho Heavy Industries Co. Ltd. ("HSHI"). Upon delivery, this vessel began a voyage for 50 days at approximately $41,000 per day. STI Queens, an MR product tanker, was delivered from SPP Shipbuilding Co. Ltd. of South Korea ("SPP"). Upon delivery, this vessel began a time charter for up to 120 days at approximately $18,000 per day.

The Company has taken delivery of 13 vessels under its Newbuilding Program with HSHI, Hyundai Mipo Dockyard Co. Ltd. ("HMD"), SPP, Daewoo Shipbuilding and Marine Engineering Co. Ltd. ("DSME") and Daehan Shipbuilding Co. Ltd. ("DHSC") during 2015. These deliveries are summarized as follows:

Month Name Delivered Type Shipyard 1 STI Tribeca January 2015 MR SPP 2 STI Hammersmith January 2015 Handymax HMD 3 STI Rotherhithe January 2015 Handymax HMD 4 STI Rose January 2015 LR2 DHSC 5 STI Gramercy January 2015 MR SPP 6 STI Veneto January 2015 LR2 HSHI 7 STI Alexis February 2015 LR2 DHSC 8 STI Bronx February 2015 MR SPP 9 STI Pontiac March 2015 MR HMD 10 STI Manhattan March 2015 MR SPP 11 STI Winnie March 2015 LR2 DSME 12 STI Oxford April 2015 LR2 HSHI 13 STI Queens April 2015 MR SPP

Time charter -in update

In February 2015, the Company took delivery of a previously announced time chartered-in LR2 tanker that was under construction in South Korea. The vessel is chartered-in for one year at $21,050 per day, and the Company also has an option to extend the charter for one year at $22,600 per day. Upon delivery from the shipyard, this vessel began a voyage for 54 days at approximately $31,000 per day.

In February 2015, the Company extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is for six months at $16,250 per day beginning in March 2015.

In February 2015, the Company extended the time charter on an LR1 tanker that is currently time chartered-in. The term of the agreement is for one year at $16,250 per day beginning in March 2015.

In March 2015, the Company extended the time charter on an MR tanker that is currently time chartered-in. The term of the agreement is for one year at $15,200 per day beginning in May 2015.

In April 2015, the Company time chartered-in an MR product tanker that is currently under construction in South Korea with delivery expected in May 2015. Upon delivery from the shipyard, the vessel will be chartered-in for three years at $17,034 per day.

In April 2015, the Company time chartered-in an MR product tanker for six months at $15,250 per day. We also have two consecutive options to extend the charter for an additional six month and one year periods at $15,250 per day and $16,350 per day, respectively. Delivery is expected in May 2015.

In April 2015, the Company extended the time charter on an LR2 product tanker that is currently time chartered-in. The term of the agreement is for one year at $24,875 per day beginning in September 2015. We also have an option to extend the charter for an additional year at $26,925 per day.

$52.0 Million Loan Facility

In March 2015, we received a commitment from a leading European financial institution for a loan facility of up to $52.0 million. The proceeds of this facility will be used to finance a portion of the purchase price of two LR2 product tankers currently under construction at DHSC with expected deliveries in the first and second quarters of 2016. This loan facility has a final maturity of seven years from the date of signing and bears interest at LIBOR plus a margin of 1.95% per annum. This facility is subject to customary conditions precedent and the execution of definitive documentation.

$61.2 Million Loan Facility

In March 2015, we received a commitment from a leading European financial institution for a loan facility of up to $61.2 million. The proceeds of this facility will be used to finance a portion of the purchase price of two LR2 product tankers currently under construction at Sungdong Shipbuilding & Marine Engineering Co. Ltd. ("SSME") with expected deliveries in the third and fourth quarters of 2016. This loan facility has a final maturity of five years from the date of delivery of each vessel and bears interest at LIBOR plus a margin ranging between 1.95% and 2.40% per annum (depending on the advance ratio). This facility is subject to customary conditions precedent and the execution of definitive documentation.

$30.0 Million Term Margin Loan Facility

In March 2015, we entered into a term margin loan facility with Nomura Securities International, Inc. ("Nomura") for up to $30.0 million. All of the shares that we own in Dorian LPG Ltd. have been pledged as collateral under this facility, and we are subject to certain covenants, including a loan to value ratio based on the amount outstanding and the market value of the shares that are collateral. Interest on the facility is LIBOR plus 4.50% per annum and the facility matures in March 2016, which can be extended to March 2017 at Nomura's option. The outstanding balance was $30.0 million as of March 31, 2015, and the facility was fully drawn.

Stock Buyback Program Update

During the first quarter of 2015, the Company acquired an aggregate of 746,639 of its common shares that are being held as treasury shares at an average price of $7.91 per share. There are 163,827,903 shares outstanding as of April 27, 2015.

The Company has $69.3 million remaining under its stock buyback program as of the date of this press release. 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.

Current Liquidity

As of April 24, 2015, the Company had $138.5 million in cash.

Debt

We made the following drawdowns from our credit facilities during 2015:

Drawdown amount Credit facility (in $ millions) Drawdown date Collateral 1 K-Sure Credit Facility $19.9 January 2015 STI Gramercy 2 KEXIM Credit Facility $30.3 January 2015 STI Veneto 3 2013 Credit Facility $35.4 January 2015 STI Alexis 4 K-Sure Credit Facility $19.5 February 2015 STI Bronx 5 2013 Credit Facility $19.5 March 2015 STI Pontiac 6 K-Sure Credit Facility $19.5 March 2015 STI Manhattan 7 K-Sure Credit Facility $30.3 March 2015 STI Winnie 8 K-Sure Credit Facility $30.3 April 2015 STI Oxford 9 K-Sure Credit Facility $19.5 April 2015 STI Queens 10 2013 Credit Facility $19.3 April 2015 STI Osceola

As of April 27, 2015, the Company's outstanding debt balance, and amount available to draw, is as follows:

In thousands of U.S. dollars Amount outstanding at March 31, 2015 Amount Outstanding as of the date of this report Availability as of the date of this report 2010 Revolving Credit Facility $ 33,597 $ 8,014 - (1) 2011 Credit Facility 106,927 106,927 - Newbuilding Credit Facility 76,341 76,341 - 2013 Credit Facility 432,837 452,087 55,350 (2) K-Sure Credit Facility 286,360 336,160 122,100 (3) KEXIM Credit Facility 417,075 417,075 - Nomura Term Margin Facility 30,000 30,000 - (4) Senior Unsecured NotesConvertible Senior Notes 105,500

360,000 105,500

360,000 -

- (5) Total $ 1,848,637 $ 1,892,104 $ 177,450 (1) A repayment of $25.6 million was made in April 2015 in connection with the sales of STI Harmony and STI Heritage. which closed in April 2015. (2) Availability can be used to finance the lesser of 60% of the contract price for a qualifying newbuilding vessel or such vessel's fair market value at the date of drawdown. The amount outstanding as of the date of this report includes a drawdown of $19.3 million to partially finance the delivery of STI Osceola. which is scheduled to be delivered on April 30, 2015. (3) Availability can be used to finance the lesser of 60% of the newbuilding contract price and 74% of the fair market value of the relevant vessel specified in the agreement. (4) We entered into a term margin loan facility with

Nomura in March 2015 and pledged our 9,392,083 shares in Dorian as collateral. (5) As of March 31, 2015, $53.3 million of this amount has been attributed to the conversion feature of the Convertible Senior Notes and recorded within additional paid in capital on the consolidated balance sheet.

Newbuilding Program

During the first quarter of 2015, the Company made $197.5 million of installment payments on its newbuilding vessels.

The Company currently has 11 newbuilding vessel orders with HMD, SPP, HSHI, DSME, DHSC, and SSME (five MRs and six LR2s). The estimated second quarter of 2015 and future payments are as follows*:

$ in millions Q2 2015 - installment payments made $ 61.9 Q2 2015 - remaining installment payments 195.9 Q3 2015 27.5 Q4 2015 24.8 Q1 2016 40.5 Q2 2016 26.0 Q3 2016 29.6 Q4 2016 29.6 Total $ 435.8

*These are estimates only and are subject to change as construction progresses.

Explanation of Variances on the First Quarter of 2015 Financial Results Compared to the First Quarter of 2014

For the three months ended March 31, 2015, the Company recorded net income of $40.7 million compared to net income of $53.3 million for the three months ended March 31, 2014. The following were the significant changes between the two periods:

Time charter equivalent, or TCE revenue, a non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is 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 March 31, 2015 and 2014: For the three months ended

March 31, 2015 2014 In thousands of U.S. dollars Vessel revenue $ 160,706 $ 76,734 Voyage expenses (2,094 ) (3,974 ) TCE revenue $ 158,612 $ 72,760 TCE revenue increased $85.9 million to $158.6 million. This increase was driven by an increase in the average number of operating vessels (owned and time chartered-in) to 84.0 from 50.7 for the three months ended March 31, 2015 and 2014, respectively, along with an increase in time charter equivalent revenue per day to $21,138 per day from $15,906 per day for the three months ended March 31, 2015 and 2014, respectively (see the breakdown of daily TCE averages below). Spot rates across all operating segments improved during the first quarter as fundamentals in the product tanker market remained strong. These fundamentals were driven by increased refining capacity in the Middle East and India along with improved refining margins worldwide which have had a resultant, positive impact on the demand for our vessels. Furthermore, we have benefited from the collapse in crude oil prices through the consequent decline in bunker costs, positively impacting our TCE revenue.

Vessel operating costs increased $24.4 million to $37.5 million from $13.1 million for the three months ended March 31, 2015 and 2014, respectively. This increase was primarily driven by an increase in the Company's owned fleet to an average of 63.0 vessels from 20.2 vessels for the three months ended March 31, 2015 and 2014, respectively. The increase was offset by an overall decrease in vessel operating costs per day to $6,583 per day from $7,185 per day for the three months ended March 31, 2015 and 2014, respectively (see the breakdown of daily TCE averages below). Vessel operating costs per day improved across all operating segments as the Company's fleet transitioned to a modern, more cost-efficient fleet with the delivery of 52 vessels under our newbuilding program since January 2014 and the disposal of four of our older vessels during that same time period.

Charterhire expense decreased $11.5 million to $28.7 million from $40.2 million for the three months ended March 31, 2015 and 2014, respectively. This difference was driven by a decrease in the Company's time chartered-in fleet to an average of 21.0 vessels from 30.5 vessels for the three months ended March 31, 2015 and 2014, respectively.

Depreciation expense increased $15.4 million to $21.4 million from $6.0 million for the three months ended March 31, 2015 and 2014, respectively. This change was the result of an increase in the average number of owned vessels to 63.0 from 20.2 for the three months ended March 31, 2015 and 2014, respectively.

General and administrative expenses increased $2.7 million to $13.7 million from $11.0 million for the three months ended March 31, 2015 and 2014, respectively. This increase was driven by a $0.7 million increase in the amortization of restricted stock (non-cash) and an overall increase in other general and administrative expenses due to the significant growth in the Company's fleet.

Gain on sale of vessels of $2.0 million for the three months ended March 31, 2015 relates to the sales of Venice, STI Harmony and STI Heritage. which closed in March, April and April, respectively. This gain relates to lower than expected closing costs incurred relating to the closing of the sales of each vessel.

Gain on sale of VLCCs of $51.4 million for the three months ended March 31, 2014 relates to the gain recorded as a result of our sale of seven VLCCs under construction.

Financial expenses increased $17.7 million to $18.1 million from $0.4 million primarily as a result of an increase in the Company's debt balance for the three months ended March 31, 2015 and 2014, respectively. Total debt outstanding, net of deferred financing fees, was $1.7 billion at March 31, 2015 compared to $344.6 million at March 31, 2014.

Unrealized loss on derivative financial instruments of $0.6 million for the three months ended March 31, 2015 relates to the mark-to-market value on a profit or loss sharing agreement with a third party relating to one of our time chartered-in vessels.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statement of Income or Loss (unaudited) For the three months ended March 31, In thousands of U.S. dollars except per share and share data 2015 2014 Revenue Vessel revenue $ 160,706 $ 76,734 Operating expenses Vessel operating costs (37,475 ) (13,070 ) Voyage expenses (2,094 ) (3,974 ) Charterhire (28,731 ) (40,173 ) Depreciation (21,408 ) (5,953 ) General and administrative expenses (13,702 ) (10,966 ) Gain on sale of VLCCs - 51,419 Gain on sale of vessels 2,008 - Total operating expenses (101,402 ) (22,717 ) Operating income 59,304 54,017 Other (expense) and income, net Financial expenses (18,058 ) (399 ) Realized gain on derivative financial instruments 40 17 Unrealized gain / (loss) on derivative financial instruments (606 ) 47 Financial income 25 27 Share of loss from associate - (324 ) Other expenses, net (10 ) (47 ) Total other expense, net (18,609 ) (679 ) Net income $ 40,695 $ 53,338 Earnings per share Basic $ 0.27 $ 0.28 Diluted* $ 0.25 $ 0.28 Basic weighted average shares outstanding 151,838,124 189,290,673 Diluted weighted average shares outstanding* 186,916,874 192,430,865

*Diluted earnings per share for the three months ended March 31, 2015 primarily includes the potentially dilutive shares relating to our Convertible Senior Notes due 2019 (the "Convertible Notes") representing 30,679,767 potential common shares. The dilutive impact of the Convertible Notes is determined using the if-converted method. Under this method, we assume that the Convertible Notes are converted into common shares during the period and the interest and non-cash amortization expense of $5.3 million associated with these notes is not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive. The Convertible Notes are currently ineligible for conversion.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Balance Sheet (unaudited) As of In thousands of U.S. dollars March 31, 2015 December 31, 2014 Assets Current assets Cash and cash equivalents $ 135,694 $ 116,143 Accounts receivable 76,098 78,201 Prepaid expenses and other current assets 11,608 2,420 Inventories 6,181 6,075 Vessels held for sale 60,270 70,865 Total current assets 289,851 273,704 Non-current assets Vessels and drydock 2,372,883 1,971,878 Vessels under construction 199,666 404,877 Other assets 19,820 23,728 Available for sale investment 122,379 130,456 Total non-current assets 2,714,748 2,530,939 Total assets $ 3,004,599 $ 2,804,643 Current liabilities Current portion of long term debt 132,817 87,163 Debt related to vessels held for sale 25,562 32,932 Accounts payable 36,361 14,929 Accrued expenses 47,213 55,139 Derivative financial instruments 661 205 Total current liabilities 242,614 190,368 Non-current liabilities Long term debt 1,584,370 1,451,427 Total non-current liabilities 1,584,370 1,451,427 Total liabilities 1,826,984 1,641,795 Shareholders' equity Issued, authorized and fully paid in share capital: Share capital 2,033 2,033 Additional paid in capital 1,551,688 1,550,956 Treasury shares (357,189 ) (351,283 ) Accumulated other comprehensive loss (18,917 ) (10,878 ) Retained earnings / (accumulated deficit) - (27,980 ) Total shareholders' equity 1,177,615 1,162,848 Total liabilities and shareholders' equity $ 3,004,599 $ 2,804,643 Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statement of Cash Flows (unaudited) For the three months ended March 31, In thousands of U.S. dollars 2015 2014 Operating activities Net income $ 40,695 $ 53,338 Gain on sale of VLCCs - (51,419 ) Gain on sale of vessels (2,008 ) - Depreciation 21,408 5,953 Amortization of restricted stock 7,676 6,955 Amortization of deferred financing fees 3,124 155 Straight-line adjustment for charterhire expense - 3 Share of loss from associate - 324 Unrealized (gain) / loss on derivative financial instruments 606 (47 ) Amortization of acquired time charter contracts 195 - Accretion of convertible senior notes 2,735 - 74,431 15,262 Changes in assets and liabilities: (Increase)/decrease in inventories 825 (1,700 ) (Increase)/decrease in accounts receivable 2,104 (11,906 ) Increase in prepaid expenses and other current assets (9,318 ) (935 ) Increase in other assets (2,365 ) (47 ) Increase in accounts payable 10,722 3,125 Increase/(decrease) in accrued expenses (11,847 ) 1,759 Interest rate swap termination payment (113 ) (274 ) (9,992 ) (9,978 ) Net cash inflow from operating activities 64,439 5,284 Investing activities Acquisition of vessels and payments for vessels under construction (203,501 ) (199,055 ) Proceeds from disposal of vessels 12,602 162,950 Net cash outflow from investing activities (190,899 ) (36,105 ) Financing activities Debt repayments (30,453 ) (27,674 ) Issuance of debt 204,400 209,100 Debt issuance costs (2,370 ) (18,345 ) Equity issuance costs - (42 ) Dividends paid (19,659 ) (16,076 ) Repurchase of common stock (5,907 ) - Net cash inflow from financing activities 146,011 146,963 Increase in cash and cash equivalents 19,551 116,142 Cash and cash equivalents at January 1, 116,143 78,845 Cash and cash equivalents at March 31, $ 135,694 $ 194,987 Scorpio Tankers Inc. and Subsidiaries Other operating data for the three months ended March 31, 2015 and 2014 (unaudited) For the three months ended March 31, 2015 2014 Adjusted EBITDA (1) (in thousands of U.S. dollars) $ 86,410 $ 15,896 Average Daily Results Time charter equivalent per day (2) $ 21,138 $ 15,906 Vessel operating costs per day (3) 6,583 7,185 Aframax/LR2 TCE per revenue day (2) 25,231 14,342 Vessel operating costs per day (3) 6,858 7,386 Panamax/LR1 TCE per revenue day (2) 21,943 20,063 Vessel operating costs per day (3) 7,216 8,372 MR TCE per revenue day (2) 20,061 14,262 Vessel operating costs per day (3) 6,400 6,466 Handymax TCE per revenue day (2) 20,006 16,736 Vessel operating costs per day (3) 6,754 10,814 Fleet data Average number of owned vessels 63.0 20.2 Average number of time chartered-in vessels 21.0 30.5 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 April 27, 2015

Source: finance.yahoo.com

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