About Scorpio Tankers
Scorpio Tankers Inc., together with its subsidiaries, provides seaborne transportation of refined petroleum products worldwide.
As of March 23, 2023, the company’s fleet included 113 wholly owned, leased financed or bareboat chartered-in product tankers (39 LR2, 60 MR and 14 Handymax) with a weighted average age of approximately 7.2 years, which it refers to collectively as its Operating Fleet. The company operates its vessels in commercial pools operated by related entities, on time charters or in the spot market.
Commercial Pools
To increase vessel utilization and thereby revenues, the company participates in commercial pools with other shipowners of similar modern, well-maintained vessels. As of March 23, 2023, 99 of the vessels in the company’s Operating Fleet operate in one of the Scorpio Pools.
Time Charters
Time charters also mitigate in part the seasonality of the spot market business, which is generally weaker in the second and third quarters (year ended December 2022) of the year.
Spot Market
Under spot market voyage charters, the company pays voyage expenses, such as port, canal and bunker costs. The company also considers short-term time charters (with initial terms of less than one year) as spot market voyages.
Management of Fleet
Commercial and Technical Management: The company’s vessels are commercially managed by Scorpio Commercial Management S.A.M. (SCM) and technically managed by Scorpio Ship Management S.A.M. (SSM).
Tanker Fleet
As of February 28, 2023, the total oil tanker fleet (crude, products, and product/chemical tankers) consisted of 5,541 ships with a combined capacity of 636.2 mdwt.
Environmental and Other Regulations
Under Chapter IX of the International Convention for the Safety of Life at Sea of 1974 (the SOLAS Convention), or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the ISM Code), the company’s operations are also subject to environmental standards and requirements.
A variety of government and private entities subject the company’s vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities, such as the United States Coast Guard (USCG), harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators.
The company relies upon the safety management system that it and its technical management team have developed for compliance with the Safe Operation of Ships and for Pollution Prevention (the ISM Code).
History
Scorpio Tankers Inc. was founded in 2009. The company was incorporated in the Republic of the Marshall Islands pursuant to the Marshall Islands Business Corporations Act in 2009.