GlobeNewswire Inc | Feb 18, 2021 06:37AM EST

February 18, 2021

MONACO, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three months and year ended December 31, 2020. The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share on the Companys common stock.

Results for the three months ended December 31, 2020 and 2019

For the three months ended December 31, 2020, the Company had a net loss of$76.3 million, or$1.41basic and diluted loss per share. For the three months ended December 31, 2020, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $56.6 million, or $1.04 basic and diluted loss per share, which excludes from the net loss (i) $2.8 million, or $0.05 per basic and diluted share, of losses recorded on the extinguishment of debt during the period, which resulted from the refinancing of certain credit facilities and lease financing arrangements, and (ii) impairment charges of $16.8 million, or $0.31 per basic and diluted share.

For the three months ended December 31, 2019, the Company had net income of $12.0 million, or $0.22 basic and $0.21 diluted earnings per share. For the three months ended December 31, 2019, the Companys adjusted net income (see Non-IFRS Measures section below) was $12.8 million, or $0.23 basic and diluted earnings per share, which excludes from net income a $0.7 million, or $0.01 per basic and diluted share, write-off of deferred financing fees.

Results for the year ended December 31, 2020 and 2019

For the year ended December 31, 2020, the Company had net income of$94.1 million, or $1.72basic and $1.67 diluted earnings per share. For the year ended December 31, 2020, the Company had an adjusted net income (see Non-IFRS Measures section below) of $114.0 million, or $2.09 basic and $2.02 diluted earnings per share, which excludes from net income (i) a $1.0 million, or $0.02 per basic and diluted share, gain recorded on the Company's repurchase of its Convertible Notes due 2022 during the third quarter of 2020, (ii) $4.1 million, or $0.07 per basic and diluted share, of losses recorded on the extinguishment of debt during the year, which resulted from the refinancing of certain credit facilities and lease financing arrangements, and (iii) impairment charges of $16.8 million, or $0.31 per basic and $0.30 per diluted share.

For the year ended December 31, 2019, the Company had a net loss of $48.5 million, or $0.97 basic and diluted loss per share. For the year ended December 31, 2019, the Companys adjusted net loss (see Non-IFRS Measures section below) was $47.0 million, or $0.94 basic and diluted loss per share, which excludes from the net loss a $1.5 million, or $0.03 per basic and diluted share, write-off of deferred financing fees.

Declaration of Dividend

On February 17, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about March 15, 2021 to all shareholders of record as of March 2, 2021 (the record date). As of February17, 2021, there were 58,093,147 common shares of the Company outstanding.

Summary of Fourth Quarter and Other Recent Significant Events

-- Below is a summary of the average daily Time Charter Equivalent ("TCE") revenue (see Non-IFRS Measures section below) and duration of contracted pool voyages and time charters for the Company's vessels thus far in the first quarter of 2021 as of the date hereof (See footnotes to "Other operating data" table below for the definition of daily TCE revenue):

TotalPool Average daily TCE revenue % of DaysLR2 $15,200 48%LR1 $11,000 58%MR $11,500 58%Handymax $6,800 50%

-- Below is a summary of the average daily TCE revenue earned by the Company's vessels in each of the pools during the fourth quarter of 2020:

Pool Average daily TCE revenueLR2 $16,026LR1 $11,765MR $9,991Handymax $7,773

-- In January 2021, the Company entered into a note distribution agreement with B. Riley Securities, Inc., as sales agent, pursuant to which the Company may offer and sell, from time to time, up to $75.0 million of additional aggregate principal amount of its 7.00% Senior Unsecured Notes due 2025 (the "Senior Notes due 2025"). Since its inception, the Company has issued $7.6 million aggregate principal amount of Senior Notes due 2025 under the program, resulting in $7.4 million in aggregate net proceeds (net of underwriters commissions and expenses). See Distribution Agreement of Additional Senior Notes due 2025 below for additional information. -- The Company has committed financing to increase liquidity by approximately $20.8 million, consisting of: $18.9 million from the refinancing of two vessels (after the repayment of existing debt).$1.9 million from the drawdown of financing for a scrubber that has been previously paid for and installed (i.e. there are no additional payments needed in order to drawdown these funds).All of the above funds are expected to be drawn down before the end of the first quarter of 2021. -- The Company is also in discussions with financial institutions to further increase liquidity by up to $61.2 million in connection with the refinancing of 15 vessels. -- In addition to the above, the Company has $20.0 million of additional liquidity available (after the repayment of existing debt) from previously announced financings that have been committed. These drawdowns are expected to occur at varying points in the future as these financings are tied to scrubber installations on the Companys vessels. -- The Company has $204.1 million in cash and cash equivalents as of February 17, 2021. -- The Company recorded an aggregate impairment charge to certain of its vessels and goodwill of $16.8 million as of December 31, 2020. Under IFRS, impairment losses are calculated as the excess of a vessels carrying amount over its recoverable amount. Recoverable amount is the higher of an assets (i) fair value less costs to sell and (ii) value in use. Value in use is determined by discounting the estimated future cash flows of each vessel to their present value using a discount rate that reflects the risks specific to the asset. At December 31, 2020, the Companys value in use calculations for certain of the MRs in its fleet were below their carrying amounts which resulted in an impairment charge of $14.2 million. The recoverable amount of goodwill is tested in a similar manner, and the Companys testing of the carrying value of its goodwill relating to its LR1 reportable segment (which arose from the Companys acquisition of Navig8 Product Tankers Inc. in 2017), resulted in an additional impairment charge of $2.6 million.

Distribution Agreement of Additional Senior Notes due 2025

In January 2021, the Company entered into a note distribution agreement (the Distribution Agreement) with B. Riley Securities, Inc., as sales agent (the Agent), under which the Company may offer and sell, from time to time, up to an additional $75.0 million aggregate principal amount of its Senior Notes due 2025 (the "Additional Notes").

Any Additional Notes sold will be issued under the Indenture pursuant to which the Company previously issued $28.1 million aggregate principal amount of the Senior Notes due 2025 on May 29, 2020 (the "Initial Notes"). The Additional Notes will have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Initial Notes immediately upon issuance, including for purposes of notices, consents, waivers, amendments and any other action permitted under the Indenture. The Senior Notes due 2025 are listed on the New York Stock Exchange (the NYSE) under the symbol "SBBA."

Sales of the Additional Notes may be made over a period of time, and from time to time, through the Agent, in transactions involving an offering of the Senior Notes due 2025 into the existing trading market at prevailing market prices.

Since inception of this program, the Company has sold302,566 Additional Notes for aggregate net proceeds (net of underwriting commissions and expenses) of $7.4 million.

Diluted Weighted Number of Shares

The computation of earnings or loss per share is determined by taking into consideration the potentially dilutive shares arising from (i) the Companys equity incentive plan, and (ii) the Companys Convertible Notes due 2022. These potentially dilutive shares are excluded from the computation of earnings or loss per share to the extent they are anti-dilutive.

The impact of the Convertible Notes due 2022 on earnings or loss per share is computed using the if-converted method. Under this method, the Company first includes the potentially dilutive impact of restricted shares issued under the Companys equity incentive plan, and then assumes that its Convertible Notes due 2022, which were issued in May and July 2018, were converted into common shares at the beginning of each period. The if-converted method also assumes that the interest and non-cash amortization expense associated with these notes of $2.9 million and $13.9 million, during the three months and year ended December 31, 2020, respectively, were not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.

The Company's basic weighted average number of shares outstanding were 54,265,313 for the three months ended December 31, 2020. There were 55,117,113 weighted average shares outstanding including the potentially dilutive impact of restricted shares, and 59,100,976 weighted average shares outstanding under the if-converted method. Since the Company was in a net loss position, the potentially dilutive shares arising from both the Companys restricted shares, and under the if-converted method, were anti-dilutive for purposes of calculating the loss per share. Accordingly, basic weighted average shares outstanding were used to calculate both basic and diluted loss per share for this period.

The Company's basic weighted average number of shares outstanding were 54,665,898 for the year ended December 31, 2020. There were 56,392,311 weighted average shares outstanding including the potentially dilutive impact of restricted shares, and 61,182,447 weighted average shares outstanding under the if-converted method. The calculation of diluted earnings per share for this period was calculated by including the potentially dilutive impact of restricted shares. The calculation of diluted earnings per share under the if-converted method was anti-dilutive on the basis that under this computation, the interest and non-cash amortization expense associated with these notes of $13.9 million is assumed to have not been incurred.

COVID-19

Since the beginning of calendar year 2020, the outbreak of COVID-19 has spread throughout the world and has resulted in numerous actions taken by governments and governmental agencies in an attempt to mitigate the spread of the virus. These measures have resulted in a significant reduction in global economic activity and volatility in the global financial and commodities markets (including oil).

Initially, the onset of the COVID-19 pandemic resulted in a sharp reduction of economic activity and a corresponding reduction in the global demand for oil and refined petroleum products. This period of time was marked by extreme volatility in the oil markets and the development of a steep contango in the prices of oil and refined petroleum products. Consequently, an abundance of arbitrage and floating storage opportunities opened up, which resulted in record increases in spot TCE rates during the second quarter of 2020. These market dynamics led to a build up of global oil and refined petroleum product inventories. In June 2020, the underlying oil markets stabilized and global economies began to recover, albeit at a slow pace. These conditions led to the gradual unwinding of excess inventories and thus a reduction in spot TCE rates. Spot TCE rates have remained subdued ever since, as the continuation of the unwinding of inventories, coupled with tepid demand for oil, have had an adverse impact on the demand for our vessels.

We expect that the COVID-19 virus will continue to cause volatility in the commodities markets. The scale and duration of these circumstances is unknowable but could have a material impact on our earnings, cash flow and financial condition in 2021. An estimate of the impact on our results of operations and financial condition cannot be made at this time.

$250 Million Securities Repurchase Program

In September 2020, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its Senior Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and Convertible Notes due 2022, which were issued in May and July 2018. No securities have been repurchased under this program since its inception through the date of this press release.

Conference Call

The Company has scheduled a conference call on February18, 2021 at 8:30 AM Eastern Standard Time and 2:30 PM Central European Time. The dial-in information is as follows:

US Dial-In Number: 1 (855) 861-2416International Dial-In Number: 1 (703) 736-7422Conference ID: 3055659

Participants should dial into the call 10 minutes before the scheduled time. 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.

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: https://edge.media-server.com/mmc/p/gp5u9drq

Current Liquidity

As of February17, 2021, the Company had $204.1 million in unrestricted cash and cash equivalents.

Drydock, Scrubber and Ballast Water Treatment Update

Set forth below is a table summarizing the drydock, scrubber and ballast water treatment system activity that occurred during the fourth quarter of 2020 and that is in progress as of January 1, 2021:

Number Ballast Aggregate Costs Aggregate of Drydock Water Scrubbers ($ in millions) Off-hire Vessels Treatment ^(1) Days in Q4 Systems 2020Completed inthe fourth quarter of2020LR2 4 4 ? 4 $16.5 220LR1 2 2 ? ? 2.2 57MR 2 1 1 2 7.3 81Handymax ? ? ? ? ? ? 8 7 1 6 $26.0 358 In progressas of January 1, 2021LR2 3 3 ? 1 $6.1 86LR1 3 3 ? ? 3.3 28MR ? ? ? ? ? ?Handymax ? ? ? ? ? ? 6 6 ? 1 $9.4 114

(1)Aggregate costs for vessels completed in the quarter represent the total costs incurred, some of which may have been incurred in prior periods. Aggregate costs for vessels in progress as of January 1, 2021 represent the total costs incurred through that date, some of which may have been incurred in prior periods.

Set forth below are the estimated expected payments to be made for the Company's drydocks, ballast water treatment system installations, and scrubber installations through 2021 (which also include actual payments made during the fourth quarter of 2020 and through February17, 2021):

In millions of U.S. dollars As of February 17, 2021 ^(1) (2) Q1 2021 - payments made through February 17, $ 7.82021Q1 2021 - remaining payments 13.2Q2 2021 6.6Q3 2021 10.2Q4 2021 6.2FY 2022 40.6

(1)Includes estimated cash payments for drydocks, ballast water treatment system installations and scrubber installations. These amounts include installment payments that are due in advance of the scheduled service and may be scheduled to occur in quarters prior to the actual installation. In addition to these installment payments, these amounts also include estimates of the installation costs of such systems. The timing of the payments set forth are estimates only and may vary as the timing of the related drydocks and installations finalize.

(2)Based upon the commitments received to date, which include the remaining availability under certain financing transactions that have been previously announced, the Company expects to raise approximately $21.9 million of aggregate additional liquidity to finance the purchase and installations of scrubbers (after the repayment of existing debt) once all of the agreements are closed and drawn. These drawdowns are expected to occur at varying points in the future as these financings are tied to scrubber installations on the Companys vessels.

Set forth below are the estimated expected number of ships and estimated expected off-hire days for the Company's drydocks, ballast water treatment system installations, and scrubber installations(1):

Q1 2021 Ships Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 1 ? ? 102LR1 ? ? ? 62MR ? ? ? ?Handymax ? ? ? ? Total Q1 2021 1 ? ? 164 Q2 2021 Ships Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 3 ? ? 60LR1 3 ? ? 60MR ? ? ? ?Handymax ? ? ? ? Total Q2 2021 6 ? ? 120 Q3 2021 Ships Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 2 ? ? 40LR1 2 ? ? 40MR ? ? ? ?Handymax ? ? ? ? Total Q3 2021 4 ? ? 80 Q4 2021 Ships Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 2 ? ? 40LR1 2 ? ? 40MR ? ? ? ?Handymax ? ? ? ? Total Q4 2021 4 ? ? 80 FY 2022 Ships Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 5 ? 1 140LR1 ? ? 3 120MR 11 5 4 295Handymax ? ? ? ? Total FY 2022 16 5 8 555

(1)The number of vessels in these tables reflect a certain amount of overlap where certain vessels are expected to be drydocked and have ballast water treatment systems and/or scrubbers installed simultaneously. Additionally, the timing set forth may vary as drydock, ballast water treatment system installation and scrubber installation times are finalized.(2)Represents the number of vessels scheduled to commence drydock, ballast water treatment system, and/or scrubber installations during the period. It does not include vessels that commenced work in prior periods but will be completed in the subsequent period. (3)Represents total estimated off-hire days during the period, including vessels that commenced work in a previous period.

Debt

Set forth below is a summary of the Companys outstanding indebtedness as of the dates presented:

In Outstanding Drawdowns and Outstanding Drawdowns and Outstanding thousands Principal as (repayments), Principal as (repayments), Principal as of U.S. of September net of December net of February Dollars 30, 2020 31, 2020 17, 2021 KEXIM1 Credit $ 41,722 $ (25,791 ) $ 15,931 (15,931 ) $ ? Facility ^ (1)(2)(4) ING Credit2 Facility ^ 197,660 (6,312 ) 191,348 203 191,551 (10) 2018 NIBC3 Credit 32,098 (1,032 ) 31,066 (31,066 ) ? Facility ^ (8) 2017 Credit4 Facility ^ 92,247 (92,247 ) ? ? ? (6) (7) Credit5 Agricole 84,302 (2,142 ) 82,160 ? 82,160 Credit Facility ABN AMRO /6 K-Sure 42,791 (964 ) 41,827 ? 41,827 Credit Facility Citibank /7 K-Sure 88,922 (2,104 ) 86,818 ? 86,818 Credit Facility ABN / SEB8 Credit 99,513 (1,657 ) 97,856 ? 97,856 Facility Hamburg9 Commercial 41,138 (823 ) 40,315 ? 40,315 Credit Facility Prudential10 Credit 51,765 (1,387 ) 50,378 (924 ) 49,454 Facility 2019 DNB /11 GIEK Credit 29,892 22,671 52,563 ? 52,563 Facility ^ (1) BNPP Sinosure12 Credit 89,781 4,952 94,733 ? 94,733 Facility ^ (2) 2020 $225.0 Million13 Credit 142,365 66,525 208,890 ? 208,890 Facility ^ (3) 2021 $21.0 Million14 Credit ? ? ? 21,000 21,000 Facility ^ (4) Ocean Yield15 Lease 141,322 (2,814 ) 138,508 (1,773 ) 136,735 Financing BCFL Lease16 Financing 88,539 (2,342 ) 86,197 2,155 88,352 (LR2s) ^ (10) CSSC Lease17 Financing ^ 216,234 (81,926 ) 134,308 (1,821 ) 132,487 (3) CSSC Scrubber18 Lease 8,363 (3,920 ) 4,443 (588 ) 3,855 Financing ^ (3) BCFL Lease19 Financing 80,871 (3,123 ) 77,748 3,483 81,231 (MRs) ^(10) 2018 CMBFL20 Lease 128,245 (3,252 ) 124,993 (2,550 ) 122,443 Financing $116.0 Million21 Lease 106,047 (2,246 ) 103,801 310 104,111 Financing ^ (10) AVIC Lease22 Financing ^ 118,464 1,268 119,732 ? 119,732 (5) China Huarong23 Lease 113,625 (3,375 ) 110,250 10,000 120,250 Financing ^ (10) $157.524 Million 127,336 (3,536 ) 123,800 ? 123,800 Lease Financing25 COSCO Lease 70,675 (1,925 ) 68,750 ? 68,750 Financing 2020 CMB26 Lease 45,383 (810 ) 44,573 ? 44,573 Financing 2020 TSFL27 Lease ? 47,250 47,250 (830 ) 46,420 Financing ^ (6) 2020 SPDB-FL28 Lease ? 96,500 96,500 ? 96,500 Financing ^ (7) 2021 AVIC29 Lease ? ? ? 44,200 44,200 Financing ^ (8) IFRS 16 -30 Leases - 7 4,513 (2,266 ) 2,247 (1,469 ) 778 Handymax IFRS 16 -31 Leases - 3 38,777 (1,841 ) 36,936 (1,278 ) 35,658 MR $670.032 Million 606,675 (13,384 ) 593,291 (7,524 ) 585,767 Lease Financing Unsecured33 Senior 28,100 ? 28,100 7,564 35,664 Notes Due 2025 ^(9) Convertible34 Notes Due 151,229 ? 151,229 ? 151,229 2022 Gross debt $ 3,108,594 $ (22,053 ) 3,086,541 $ 23,161 $ 3,109,702 outstanding Cash and cash 218,095 187,511 204,055 equivalents Net debt $ 2,890,499 $ 2,899,030 $ 2,905,647

(1)In December 2020, the Company drew down $23.7 million from its 2019 DNB / GIEK Credit Facility to refinance the existing indebtedness on an LR2 product tanker, STI Condotti, which was previously financed under the KEXIM Credit Facility. The Company repaid $15.9 million on the KEXIM Credit Facility as part of this transaction. The 2019 DNB / GIEK Credit Facility matures in July 2024, bears interest at LIBOR plus a margin of 2.5% per annum, and is expected to be repaid in equal quarterly installments of approximately $1.8 million per quarter in aggregate (which includes this, and previous drawdowns), with a balloon payment due at maturity.

(2)In December 2020, the Company drew down $9.6 million from its BNPP Sinosure Credit Facility to partially finance the purchase of scrubbers on five vessels. This borrowing is collateralized by a Handymax product tanker, STI Hackney, which was previously financed under the KEXIM Credit Facility. The Company repaid $9.9 million on the KEXIM Credit Facility as part of this transaction.

A total of $101.5 million has been drawn and there is $32.6 million of remaining availability under the BNPP Sinosure Credit Facility. Each drawdown is split evenly into two facilities, (i) a commercial facility (the "Commercial Facility"), and (ii) a Sinosure facility (the "Sinosure Facility"), which is being funded by the lenders under the Commercial Facility and insured by the China Export & Credit Insurance Corporation ("Sinosure"). The BNPP Sinosure Credit Facility is split into 70 tranches each of which represent the lesser of 85% of the purchase and installation price of 70 scrubbers, or $1.9 million per scrubber (not to exceed 65% of the fair market value of the collateral vessels). The Sinosure Facility and the Commercial Facility bear interest at LIBOR plus a margin of 1.80% and 2.80% per annum, respectively. The Sinosure Facility is expected to be repaid in 10 equal semi-annual installments, and the Commercial Facility is expected to be repaid at the final maturity date of the facility, or October 2025.

In January 2021, the Company signed an agreement to extend the availability period under this loan facility to June 15, 2022 from March 15, 2021.

(3) In October and November 2020, the Company drew down an aggregate of $71.8 million from its 2020 $225.0 Million Credit Facility to refinance the existing debt on three LR2 product tankers, STI Nautilus, STI Guard, and STI Gallantry, all of which were previously financed under the CSSC Lease Financing arrangement. The Company repaid $81.7 million on the CSSC Lease Financing and CSSC Scrubber Lease Financing arrangements, in addition to a $1.6 million prepayment fee as part of these transactions during the three months ended December 31, 2020.

The remaining availability of $2.2 million under the 2020 $225.0 Million Credit Facility to partially finance the purchase and installation of scrubbers on two LR2s was terminated in December 2020. This facility has a final maturity of five years from the closing date of the loan, bears interest at LIBOR plus a margin, and is expected to be repaid in equal quarterly installments of approximately $5.3 million per quarter, in aggregate, with a balloon payment due at maturity.

(4)In February 2021, the Company drew down $21.0 million on a term loan facility with a European financial institution. The proceeds of this loan facility were used to refinance the outstanding debt on an LR2 product tanker, STI Madison, that was previously financed under our KEXIM Credit Facility. The Company repaid $15.9 million on the KEXIM Credit Facility in January 2021 upon its maturity. The loan facility has a final maturity of December 2022, bears interest at LIBOR plus a margin of 2.65% per annum, and is expected to be repaid in equal quarterly installments of approximately $0.6 million, with a balloon payment due upon maturity. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's existing credit facilities.

(5)In December 2020, the Company drew down $4.6 million from the upsized portion of the AVIC Lease Financing arrangement to partially finance the purchase and installation of scrubbers on three vessels, one MR and two LR2s, that are currently part of this arrangement. The upsized portion of the lease financing has a final maturity of three years after the first drawdown, bears interest at LIBOR plus a margin of 4.20% per annum and will be repaid in quarterly principal payments of approximately $0.4 million, in aggregate, for all three vessels.

(6)In November 2020, the Company closed on the sale and leaseback of two vessels, STI Galata and STI La Boca, to Taiping & Sinopec Financial Leasing Co., Ltd. ("2020 TSFL Lease Financing") for aggregate proceeds of $47.3 million. The Company repaid the outstanding indebtedness of $29.3 million related to these vessels on the 2017 Credit Facility as part of these transactions.

Under the 2020 TSFL Lease Financing arrangement, each vessel is subject to a seven year bareboat charter agreement. The lease financings bear interest at LIBOR plus a margin of 3.2% per annum and are scheduled to be repaid in equal quarterly repayments of approximately $0.4 million per vessel. The lease arrangement contains purchase options to re-acquire each of the subject vessels beginning on the third anniversary date from the delivery date of the respective vessel, with a purchase obligation upon the expiration of each lease.

This transaction is being accounted for as a financing transaction under IFRS 9 as the transaction does not qualify as a sale under IFRS 15 given the Companys right to repurchase the asset during the lease period. Accordingly, no gain or loss is recorded, and the Company will continue to recognize the vessel as an asset and recognize a financial liability (i.e. debt) for the consideration received (similar to the Companys other sale and leaseback transactions).

(7)In November and December 2020, the Company closed on the sale and leaseback of four vessels, STI Donald C Trauscht,STI Esles II, STI San Telmo, and STI Jardins with SPDB Financial Leasing Co., Ltd for aggregate proceeds of $96.5 million (the "2020 SPDB-FL Lease Financing"). The Company repaid the outstanding indebtedness of $62.9 million related to these vessels on the 2017 Credit Facility as part of these transactions. In connection with these repayments, approximately $5.0 million was released from restricted cash that was previously held in a debt service reserve account under the terms and conditions of the 2017 Credit Facility.

Under the 2020 SPDB-FL Lease Financing arrangements, STI Donald C Trauscht and STI San Telmo, are subject to seven-year bareboat charter agreements, and STI Esles II and STI Jardins are subject to eight-year bareboat charter agreements. The lease financings bear interest at LIBOR plus a margin and are scheduled to be repaid in equal quarterly repayments of approximately $0.4 million per vessel. Each agreement contains purchase options to re-acquire each of the subject vessels beginning on the third anniversary date from the delivery date of the respective vessel, with a purchase obligation upon the expiration of each lease.

This transaction is being accounted for as a financing transaction under IFRS 9 as the transaction does not qualify as a sale under IFRS 15 given the Companys right to repurchase the asset during the lease period. Accordingly, no gain or loss is recorded, and the Company will continue to recognize the vessel as an asset and recognize a financial liability (i.e. debt) for the consideration received (similar to the Companys other sale and leaseback transactions).

(8)In February 2021, the Company closed on the sale and leaseback of two vessels, STI Memphis and STI Soho, with AVIC International Leasing Co., Ltd. for aggregate proceeds of $44.2 million (the "2021 AVIC Lease Financing"). The Company repaid the outstanding indebtedness of $30.0 million related to these vessels on the 2018 NIBC Credit Facility as part of these transactions.

Under the 2021 AVIC Lease Financing, STI Memphis and STI Soho, are subject to nine-year bareboat charter agreements. The lease financings bear interest at LIBOR plus a margin of 3.45% per annum and are scheduled to be repaid in equal quarterly repayments of approximately $0.4 million per vessel. Each agreement contains purchase options to re-acquire each of the subject vessels beginning on the second anniversary date from the delivery date of the respective vessel, with a purchase obligation upon the expiration of each lease.

(9)In January 2021, the Company entered into a distribution agreement with the Agent, under which the Company may offer and sell, from time to time, up to an additional $75.0 million aggregate principal amount Additional Notes. The Additional Notes will have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Initial Notes immediately upon issuance. Sales of the Additional Notes may be made over a period of time, and from time to time, through the Agent, in transactions involving an offering of the Senior Notes due 2025 into the existing trading market at prevailing market prices. Since its inception, the Company has issued $7.6 million aggregate principal amount of Additional Notes under the program, resulting in $7.4 million in aggregate net proceeds, (net of underwriters commissions and expenses).

(10)Activity in 2021 includes drawdowns to partially finance the purchase and installation of scrubbers on certain vessels in the amounts of: (i) $2.1 million under the ING Credit Facility; (ii) $3.8 million under the BCFL Lease Financing (LR2s); (iii) $5.8 million under the BCFL Lease Financing (MRs); (iv) $1.9 million under the $116.0 Million Lease Financing; and (v) $10.0 million under the China Huarong Lease Financing.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of December31, 2020, which includes principal amounts due under the Company's secured credit facilities, Convertible Notes due 2022, lease financing arrangements, Senior Notes due 2025, and lease liabilities under IFRS 16 (which also include actual payments made during the fourth quarter of 2020 and through February17, 2021):

In millions of U.S. dollars As of February 17, 2021 ^(1)Q1 2021 - principal payments made through February $ 73.3 17, 2021 ^(2)Q1 2021 - remaining principal payments ^(3) 75.2 Q2 2021 74.5 Q3 2021 69.5 Q4 2021 74.5 Q1 2022 ^(4) 87.4 Q2 2022 ^(5) 356.7 Q3 2022 ^(6) 82.2 Q4 2022 ^(7) 101.5 2023 and thereafter 2,091.7 $ 3,086.5

(1)Amounts represent the principal payments due on the Companys outstanding indebtedness as of December 31, 2020 and do not incorporate the impact of any of the Companys new financing initiatives which have not closed as of that date.

(2)Repayments include (i) the maturity of the Company's KEXIM Credit Facility for $15.9 million, which was refinanced in February 2021 as part of the 2021 $21.0 Million Credit Facility, and (ii) $30.0 million on the NIBC Credit Facility, which was refinanced in February 2021 as part of the 2021 AVIC Lease Financing.

(3)Repayments include the maturities of two tranches on the ING Credit Facility for $28.8 million. The Company has received a commitment to refinance this facility within the first quarter of 2021.

(4)Repayments include the maturity of the outstanding debt related to one vessel under the Citi/K-Sure Credit Facility of $19.3 million.

(5)Repayments include the maturity of the outstanding debt related to (i) three vessels under the Citi/K-Sure Credit Facility of $57.6 million in aggregate, (ii) the Company's Convertible Notes due 2022 of $151.2 million, and (iii) six vessels under the ING Credit Facility for $76.7 million in aggregate.

(6)Repayments include the maturity of the outstanding debt related to one vessel under the ABN AMRO/K-Sure Credit Facility of $18.4 million.

(7)Repayments include the maturity of the outstanding debt related to (i) one vessel under the ABN AMRO/K-Sure Credit Facility of $17.2 million and (ii) one vessel under the Credit Agricole Credit Facility of $16.5 million

Explanation of Variances on the Fourth Quarter of 2020 Financial Results Compared to the Fourth Quarter of 2019

For the three months ended December 31, 2020, the Company recorded a net loss of $76.3 million compared to net income of $12.0 million for the three months ended December 31, 2019. The following were the significant changes between the two periods:

-- 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 voyages, time charters, and pool charters), and it provides useful information to investors and management. The following table sets forth TCE revenue for the three months ended December 31, 2020 and 2019:

For the three months ended December 31,In thousands of U.S. dollars 2020 2019 Vessel revenue $ 138,236 $ 221,622 Voyage expenses (241 ) (2,483 ) TCE revenue $ 137,995 $ 219,139

-- TCE revenue for the three months ended December 31, 2020 decreased by $81.1 million to $138.0 million, from $219.1 million for the three months ended December 31, 2019. Overall average TCE revenue per day decreased to $11,608 per day during the three months ended December 31, 2020, from $19,910 per day during the three months ended December 31, 2019. Given the onset of the COVID-19 pandemic, market fundamentals underlying TCE revenue during these periods differed significantly. TCE revenue for the three months ended December 31, 2020 reflected the adverse market conditions brought on by the COVID-19 pandemic. Demand for crude and refined petroleum products remained low during this period as most countries throughout the world continued to implement restrictive policies in an effort to control the spread of the virus, particularly as a second wave of infections took hold. These headwinds were exacerbated by the continued unwinding of excess inventories that built up in the first half of 2020.TCE revenue for the three months ended December 31, 2019 reflected a favorable shift in supply and demand dynamics driven by the January 1, 2020 implementation date of the International Maritime Organizations (IMO) low sulfur emissions standards. The implementation of these standards impacted the trade flows of both crude and refined petroleum products which, combined with favorable supply and demand dynamics at the time, resulted in strengthening spot market TCE rates across all of the Companys operating segments during the fourth quarter of 2019. -- Vessel operating costs for the three months ended December 31, 2020 remained consistent, increasing slightly by $1.4 million to $86.8 million, from $85.4 million for the three months ended December 31, 2019. Vessel operating costs were impacted by a net increase of one average vessel for the three months ended December 31, 2020 when compared to the three months ended December 31, 2019. This net increase was due to the delivery of four vessels that were previously under construction (three MRs in the first quarter of 2020 and one MR in September 2020), offset by the redelivery of three Handymax vessels upon the expiration of their bareboat charters in the second and third quarters of 2020.Vessel operating costs per day also remained consistent, increasing slightly to $6,987 per day for the three months ended December 31, 2020 from $6,928 per day for the three months ended December 31, 2019.

-- Depreciation expense - owned or sale leaseback vessels for the three months ended December 31, 2020 increased by $3.5 million to $49.9 million, from $46.5 million for the three months ended December 31, 2019. The increase was due to the Company's drydock, scrubber and ballast water treatment system installations that have taken place over the preceding 12-month period. While the Company has completed most of its scrubber and ballast water treatment installations over the past two years, depreciation expense in future periods is expected to increase, albeit at a lower rate, as the Company continues the installation of ballast water treatment systems and/or scrubbers on certain remaining vessels in 2021 and beyond. The Company expects to depreciate the majority of the cost of this equipment over each vessel's remaining useful life. -- Depreciation expense - right of use assets for the three months ended December 31, 2020 remained consistent, decreasing slightly by $0.1 million to $12.6 million from $12.6 million for the three months ended December 31, 2019. Depreciation expense - right of use assets reflects the straight-line depreciation expense recorded under IFRS 16 - Leases. Right of use asset depreciation expense was impacted by the delivery of four vessels that were previously under construction (three MRs in the first quarter of 2020 and one MR in September 2020), offset by the redelivery of three Handymax vessels upon the expiration of their bareboat charters in the second and third quarters of 2020. The Company had four LR2s, 18 MRs, and four Handymax vessels that were accounted for under IFRS 16 - Leases during the three months ended December 31, 2020. The right of use asset depreciation for these vessels is approximately $0.2 million per MR and Handymax per month, and $0.3 million per LR2 per month. The leases on the four Handymax vessels are scheduled to expire in March 2021. -- Impairment - At December 31, 2020, the Company reviewed the carrying amount of its vessels to determine whether there was an indication that these assets had suffered an impairment. As part of this assessment, the Company determined that impairment indicators existed as a result of the adverse market conditions brought on by the COVID-19 pandemic. An indicator of impairment prompts the Company to perform a calculation of the potentially impaired vessels value in use in order to appropriately determine the higher of its value in use and its fair value less costs to sell (market value). The higher of the two values is then determined to be the vessels recoverable amount.Under IFRS, impairment losses are calculated as the excess of a vessels carrying amount over its recoverable amount. Value in use is determined by discounting the estimated future cash flows of each vessel to its present value using a discount rate that reflects the risks specific to the asset. At December 31, 2020, the Companys value in use calculations for certain of the MRs in its fleet were below their carrying amounts, which resulted in an aggregate impairment charge of $14.2 million. The recoverable amount of goodwill is tested in a similar manner by estimating the future cash flows of the reportable segments to which the goodwill is allocated. The Companys assessment of the carrying value of its goodwill that was allocated to its LR1 reportable segment, which arose from its acquisition of Navig8 Product Tankers Inc. in 2017, resulted in an additional impairment charge of $2.6 million.

-- General and administrative expenses for the three months ended December 31, 2020, decreased by $1.4 million to $14.3 million, from $15.8 million for the three months ended December 31, 2019. This decrease was due to an overall reduction in costs during the three months ended December 31, 2020, including reductions in restricted stock amortization and compensation expenses. -- Financial expenses for the three months ended December 31, 2020 decreased by $11.4 million to $35.9 million, from $47.3 million for the three months ended December 31, 2019. The decrease was primarily driven by significant decreases in LIBOR rates, which underpin all of the Company's variable rate borrowings, and which have collapsed since the onset of the COVID-19 pandemic.

Scorpio Tankers Inc. and Subsidiaries Condensed Consolidated Statements of Income or Loss(unaudited)

For the three months ended For the year ended December December 31, 31,In thousands of U.S.dollars except per 2020 2019 2020 2019share and share dataRevenue Vessel revenue $ 138,236 $ 221,622 $ 915,892 $ 704,325 Operating expenses Vessel operating (86,775 ) (85,412 ) (333,748 ) (294,531 ) costs Voyage expenses (241 ) (2,483 ) (7,959 ) (6,160 ) Charterhire ? ? ? (4,399 ) Depreciation - owned or sale (49,948 ) (46,477 ) (194,268 ) (180,052 ) leaseback vessels Depreciation - (12,578 ) (12,636 ) (51,550 ) (26,916 ) right of use assets Impairment of (14,207 ) ? (14,207 ) ? vessels Impairment of (2,639 ) ? (2,639 ) ? goodwill General and administrative (14,318 ) (15,758 ) (66,187 ) (62,295 ) expenses Total operating (180,706 ) (162,766 ) (670,558 ) (574,353 ) expensesOperating income (42,470 ) 58,856 245,334 129,972 Other (expense) and income, net Financial expenses (35,888 ) (47,287 ) (154,971 ) (186,235 ) Gain on repurchase of Convertible ? ? 1,013 ? Notes Financial income 181 756 1,249 8,182 Other income and 1,916 (283 ) 1,499 (409 ) (expense), net Total other (33,791 ) (46,814 ) (151,210 ) (178,462 ) expense, netNet (loss) / income $ (76,261 ) $ 12,042 $ 94,124 $ (48,490 ) (Loss) / Earnings per share Basic $ (1.41 ) $ 0.22 $ 1.72 $ (0.97 ) Diluted $ (1.41 ) $ 0.21 $ 1.67 $ (0.97 ) Basic weighted average shares 54,265,313 54,626,119 54,665,898 49,857,998 outstanding Diluted weighted average shares 54,265,313 56,780,849 56,392,311 49,857,998 outstanding ^(1)

(1)The computation of diluted loss per share for the three months ended December 31, 2020 excludes the effect of potentially dilutive unvested shares of restricted stock and the Convertible Notes due 2022 because their effect would have been anti-dilutive. The computation of diluted earnings per share for the year ended December 31, 2020 includes the effect of potentially dilutive unvested shares of restricted stock but excludes the effect of the Convertible Notes due 2022 under the if-converted method because their effect would have been anti-dilutive.

The computation of diluted earnings per share for the three months ended December 31, 2019 includes the effect of potentially dilutive unvested shares of restricted stock but excludes the effect of the Convertible Notes due 2022 under the if-converted method because their effect would have been anti-dilutive. The computation of diluted loss per share for the year ended December 31, 2019 excludes the effect of potentially dilutive unvested shares of restricted stock and the Convertible Notes due 2022 because their effect would have been anti-dilutive.

Scorpio Tankers Inc. and SubsidiariesCondensed Consolidated Balance Sheets(unaudited)

As ofIn thousands of U.S. dollars December 31, December 31, 2020 2019Assets Current assets Cash and cash equivalents $ 187,511 $ 202,303 Accounts receivable 58,217 78,174 Prepaid expenses and other current assets 12,430 13,855 Inventories 9,261 8,646 Total current assets 267,419 302,978 Non-current assets Vessels and drydock 4,002,888 4,008,158 Right of use assets 807,179 697,903 Other assets 66,945 131,139 Goodwill 8,900 11,539 Restricted cash 5,293 12,293 Total non-current assets 4,891,205 4,861,032 Total assets $ 5,158,624 $ 5,164,010 Current liabilities Current portion of long-term debt $ 172,705 $ 235,482 Lease liability - sale and leaseback vessels 131,736 122,229 Lease liability - IFRS 16 56,678 63,946 Accounts payable 12,863 23,122 Accrued expenses 32,193 41,452 Total current liabilities 406,175 486,231 Non-current liabilities Long-term debt 971,172 999,268 Lease liability - sale and leaseback vessels 1,139,713 1,195,494 Lease liability - IFRS 16 575,796 506,028 Total non-current liabilities 2,686,681 2,700,790 Total liabilities 3,092,856 3,187,021 Shareholders' equity Issued, authorized and fully paid-in share capital:Share capital 656 646 Additional paid-in capital 2,850,206 2,842,446 Treasury shares (480,172 ) (467,057 )Accumulated deficit (304,922 ) (399,046 )Total shareholders' equity 2,065,768 1,976,989 Total liabilities and shareholders' equity $ 5,158,624 $ 5,164,010

Scorpio Tankers Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows (unaudited)

For the year ended December 31,In thousands of U.S. dollars 2020 2019Operating activities Net income / (loss) $ 94,124 $ (48,490 )Depreciation - owned or finance leased vessels 194,268 180,052 Depreciation - right of use assets 51,550 26,916 Amortization of restricted stock 28,506 27,421 Impairment of vessels and goodwill 16,846 ? Amortization of deferred financing fees 6,657 7,041 Write-off of deferred financing fees and unamortized 2,025 1,466 discounts on sale and leaseback facilitiesAccretion of convertible notes 8,413 11,375 Accretion of fair value measurement on debt assumed 3,422 3,615 in business combinationsGain on repurchases of convertible notes (1,013 ) ? 404,798 209,396 Changes in assets and liabilities: Increase in inventories (615 ) (346 )Decrease / (increase) in accounts receivable 19,957 (8,458 )Decrease in prepaid expenses and other current assets 1,424 1,816 Decrease / (increase) in other assets 856 (7,177 )(Decrease) / increase in accounts payable (5,094 ) 4,019 (Decrease) / increase in accrued expenses (1,945 ) 10,262 14,583 116 Net cash inflow from operating activities 419,381 209,512 Investing activities Acquisition of vessels and payments for vessels under ? (2,998 )constructionDrydock, scrubber, ballast water treatment system andother vessel related payments (owned, finance leased (174,477 ) (203,975 )and bareboat-in vessels)Net cash outflow from investing activities (174,477 ) (206,973 )Financing activities Debt repayments (800,072 ) (343,351 )Issuance of debt 705,390 108,589 Debt issuance costs (13,523 ) (5,744 )Principal repayments on lease liability - IFRS 16 (77,913 ) (36,761 )Decrease / (increase) in restricted cash 7,001 (9 )Repurchase / repayment of convertible notes (46,737 ) (145,000 )Gross proceeds from issuance of common stock 2,601 50,000 Equity issuance costs (26 ) (333 )Dividends paid (23,302 ) (21,278 )Repurchase of common stock (13,115 ) (1 )Net cash outflow from financing activities (259,696 ) (393,888 )Decrease in cash and cash equivalents (14,792 ) (391,349 )Cash and cash equivalents at January 1, 202,303 593,652 Cash and cash equivalents at December 31, $ 187,511 $ 202,303

Scorpio Tankers Inc. and SubsidiariesOther operating data for the three months and year ended December 31, 2020 and 2019 (unaudited)

For the three months ended For the year ended December December 31, 31, 2020 2019 2020 2019Adjusted EBITDA^(1) (inthousands of $ 45,190 $ 124,399 $ 538,003 $ 363,952 U.S. dollarsexcept FleetData) Average Daily ResultsTCE per day^(2) $ 11,608 $ 19,910 $ 19,655 $ 16,682 Vessel operatingcosts per day^ $ 6,987 $ 6,928 $ 6,734 $ 6,563 (3) LR2 TCE per revenue $ 15,995 $ 24,987 $ 26,786 $ 20,254 day^ (2)Vessel operatingcosts per day^ $ 7,396 $ 7,123 $ 7,007 $ 6,829 (3)Average number 42.0 42.0 42.0 39.1 of vessels LR1 TCE per revenue $ 11,739 $ 17,648 $ 21,579 $ 15,846 day^ (2)Vessel operatingcosts per day^ $ 7,178 $ 7,570 $ 6,921 $ 6,658 (3)Average number 12.0 12.0 12.0 12.0 of vessels MR TCE per revenue $ 9,962 $ 17,261 $ 16,224 $ 15,095 day^ (2)Vessel operatingcosts per day^ $ 6,658 $ 6,505 $ 6,520 $ 6,312 (3)Average number 63.0 59.0 62.0 51.0 of vessels Handymax TCE per revenue $ 7,769 $ 19,294 $ 14,835 $ 14,575 day^ (2)Vessel operatingcosts per day^ $ 7,055 $ 7,351 $ 6,710 $ 6,621 (3)Average number 18.0 21.0 19.5 21.0 of vessels Fleet data Average number 135.0 134.0 135.4 123.1 of vessels Drydock Drydock,scrubber,ballast watertreatment systemand other vesselrelated paymentsfor owned, sale $ 21,863 $ 75,406 $ 174,477 $ 203,975 leaseback andbareboatchartered-invessels (inthousands ofU.S. dollars)

^ See Non-IFRS Measures section below.(1) 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(2) 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, finance leased or chartered-in less the number of days the vessel is off-hire for drydock and repairs. Vessel operating costs per day represent vessel operating costs divided by the number of operating days during the period. Operating days are the^ total number of available days in a period with respect to the owned,(3) finance leased or bareboat chartered-in vessels, before deducting available days due to off-hire days and days in drydock. Operating days is a measurement that is only applicable to our owned, finance leased or bareboat chartered-in vessels, not our time chartered-in vessels.

Fleet list as of February17, 2021

Vessel Name Year DWT Ice Employment Vessel Scrubber Built class type Owned, sale leaseback and bareboat chartered-in vessels1 STI Brixton 2014 38,734 1A SHTP (1) Handymax N/A 2 STI 2014 38,734 1A SHTP (1) Handymax N/A Comandante3 STI Pimlico 2014 38,734 1A SHTP (1) Handymax N/A 4 STI Hackney 2014 38,734 1A SHTP (1) Handymax N/A 5 STI Acton 2014 38,734 1A SHTP (1) Handymax N/A 6 STI Fulham 2014 38,734 1A SHTP (1) Handymax N/A 7 STI Camden 2014 38,734 1A SHTP (1) Handymax N/A 8 STI 2014 38,734 1A SHTP (1) Handymax N/A Battersea9 STI Wembley 2014 38,734 1A SHTP (1) Handymax N/A 10 STI Finchley 2014 38,734 1A SHTP (1) Handymax N/A 11 STI Clapham 2014 38,734 1A SHTP (1) Handymax N/A 12 STI Poplar 2014 38,734 1A SHTP (1) Handymax N/A 13 STI 2015 38,734 1A SHTP (1) Handymax N/A Hammersmith14 STI 2015 38,734 1A SHTP (1) Handymax N/A Rotherhithe15 STI Amber 2012 49,990 ? SMRP (2) MR Yes 16 STI Topaz 2012 49,990 ? SMRP (2) MR Yes 17 STI Ruby 2012 49,990 ? SMRP (2) MR Not Yet Installed18 STI Garnet 2012 49,990 ? SMRP (2) MR Yes 19 STI Onyx 2012 49,990 ? SMRP (2) MR Yes 20 STI 2013 49,990 ? SMRP (2) MR Not Yet Fontvieille Installed21 STI Ville 2013 49,990 ? SMRP (2) MR Not Yet Installed22 STI Duchessa 2014 49,990 ? SMRP (2) MR Not Yet Installed23 STI Opera 2014 49,990 ? SMRP (2) MR Not Yet Installed24 STI Texas 2014 49,990 ? SMRP (2) MR Yes City25 STI Meraux 2014 49,990 ? SMRP (2) MR Yes 26 STI San 2014 49,990 ? SMRP (2) MR Yes Antonio27 STI Venere 2014 49,990 ? SMRP (2) MR Yes 28 STI Virtus 2014 49,990 ? SMRP (2) MR Yes 29 STI Aqua 2014 49,990 ? SMRP (2) MR Yes 30 STI Dama 2014 49,990 ? SMRP (2) MR Yes 31 STI Benicia 2014 49,990 ? SMRP (2) MR Yes 32 STI Regina 2014 49,990 ? SMRP (2) MR Yes 33 STI St. 2014 49,990 ? SMRP (2) MR Yes Charles34 STI Mayfair 2014 49,990 ? SMRP (2) MR Yes 35 STI 2014 49,990 ? SMRP (2) MR Yes Yorkville36 STI 2014 49,990 ? SMRP (2) MR Yes Milwaukee37 STI Battery 2014 49,990 ? SMRP (2) MR Yes 38 STI Soho 2014 49,990 ? SMRP (2) MR Yes 39 STI Memphis 2014 49,990 ? SMRP (2) MR Yes 40 STI Tribeca 2015 49,990 ? SMRP (2) MR Yes 41 STI Gramercy 2015 49,990 ? SMRP (2) MR Yes 42 STI Bronx 2015 49,990 ? SMRP (2) MR Yes 43 STI Pontiac 2015 49,990 ? SMRP (2) MR Yes 44 STI 2015 49,990 ? SMRP (2) MR Yes Manhattan45 STI Queens 2015 49,990 ? SMRP (2) MR Yes 46 STI Osceola 2015 49,990 ? SMRP (2) MR Yes 47 STI Notting 2015 49,687 1B SMRP (2) MR Yes Hill48 STI Seneca 2015 49,990 ? SMRP (2) MR Yes 49 STI 2015 49,687 1B SMRP (2) MR Yes Westminster50 STI Brooklyn 2015 49,990 ? SMRP (2) MR Yes 51 STI Black 2015 49,990 ? SMRP (2) MR Yes Hawk52 STI Galata 2017 49,990 ? SMRP (2) MR Yes 53 STI 2017 49,990 ? SMRP (2) MR Not Yet Bosphorus Installed54 STI Leblon 2017 49,990 ? SMRP (2) MR Yes 55 STI La Boca 2017 49,990 ? SMRP (2) MR Yes 56 STI San 2017 49,990 1B SMRP (2) MR Not Yet Telmo Installed57 STI Donald C 2017 49,990 1B SMRP (2) MR Not Yet Trauscht Installed58 STI Esles II 2018 49,990 1B SMRP (2) MR Not Yet Installed59 STI Jardins 2018 49,990 1B SMRP (2) MR Not Yet Installed60 STI Magic 2019 50,000 ? SMRP (2) MR Yes 61 STI Majestic 2019 50,000 ? SMRP (2) MR Yes 62 STI Mystery 2019 50,000 ? SMRP (2) MR Yes 63 STI Marvel 2019 50,000 ? SMRP (2) MR Yes 64 STI Magnetic 2019 50,000 ? SMRP (2) MR Yes 65 STI 2019 50,000 ? SMRP (2) MR Yes Millennia66 STI Master 2019 50,000 ? SMRP (2) MR Yes 67 STI Mythic 2019 50,000 ? SMRP (2) MR Yes 68 STI Marshall 2019 50,000 ? SMRP (2) MR Yes 69 STI Modest 2019 50,000 ? SMRP (2) MR Yes 70 STI Maverick 2019 50,000 ? SMRP (2) MR Yes 71 STI Miracle 2020 50,000 ? SMRP (2) MR Yes 72 STI Maestro 2020 50,000 ? SMRP (2) MR Yes 73 STI Mighty 2020 50,000 ? SMRP (2) MR Yes 74 STI Maximus 2020 50,000 ? SMRP (2) MR Yes 75 STI Excel 2015 74,000 ? SLR1P (3) LR1 Not Yet Installed76 STI 2016 74,000 ? SLR1P (3) LR1 Not Yet Excelsior Installed77 STI Expedite 2016 74,000 ? SLR1P (3) LR1 Not Yet Installed78 STI Exceed 2016 74,000 ? SLR1P (3) LR1 Not Yet Installed79 STI 2016 74,000 ? SLR1P (3) LR1 Yes Executive80 STI 2016 74,000 ? SLR1P (3) LR1 Yes Excellence81 STI 2016 74,000 ? SLR1P (3) LR1 Not Yet Experience Installed82 STI Express 2016 74,000 ? SLR1P (3) LR1 Yes 83 STI 2016 74,000 ? SLR1P (3) LR1 Yes Precision84 STI Prestige 2016 74,000 ? SLR1P (3) LR1 Yes 85 STI Pride 2016 74,000 ? SLR1P (3) LR1 Yes 86 STI 2016 74,000 ? SLR1P (3) LR1 Yes Providence87 STI Elysees 2014 109,999 ? SLR2P (4) LR2 Yes 88 STI Madison 2014 109,999 ? SLR2P (4) LR2 Yes 89 STI Park 2014 109,999 ? SLR2P (4) LR2 Yes 90 STI Orchard 2014 109,999 ? SLR2P (4) LR2 Yes 91 STI Sloane 2014 109,999 ? SLR2P (4) LR2 Yes 92 STI Broadway 2014 109,999 ? SLR2P (4) LR2 Yes 93 STI Condotti 2014 109,999 ? SLR2P (4) LR2 Yes 94 STI Rose 2015 109,999 ? SLR2P (4) LR2 Yes 95 STI Veneto 2015 109,999 ? SLR2P (4) LR2 Yes 96 STI Alexis 2015 109,999 ? SLR2P (4) LR2 Yes 97 STI Winnie 2015 109,999 ? SLR2P (4) LR2 Yes 98 STI Oxford 2015 109,999 ? SLR2P (4) LR2 Yes 99 STI Lauren 2015 109,999 ? SLR2P (4) LR2 Yes 100 STI 2015 109,999 ? SLR2P (4) LR2 Yes Connaught101 STI Spiga 2015 109,999 ? SLR2P (4) LR2 Yes 102 STI Savile 2015 109,999 ? SLR2P (4) LR2 Yes Row103 STI Kingsway 2015 109,999 ? SLR2P (4) LR2 Yes 104 STI Carnaby 2015 109,999 ? SLR2P (4) LR2 Yes 105 STI 2015 109,999 ? SLR2P (4) LR2 Yes Solidarity106 STI Lombard 2015 109,999 ? SLR2P (4) LR2 Yes 107 STI Grace 2016 109,999 ? SLR2P (4) LR2 Yes 108 STI Jermyn 2016 109,999 ? SLR2P (4) LR2 Yes 109 STI Sanctity 2016 109,999 ? SLR2P (4) LR2 Yes 110 STI Solace 2016 109,999 ? SLR2P (4) LR2 Yes 111 STI 2016 109,999 ? SLR2P (4) LR2 Yes Stability112 STI 2016 109,999 ? SLR2P (4) LR2 Yes Steadfast113 STI Supreme 2016 109,999 ? SLR2P (4) LR2 Not Yet Installed114 STI Symphony 2016 109,999 ? SLR2P (4) LR2 Yes 115 STI 2016 113,000 ? SLR2P (4) LR2 Yes Gallantry116 STI Goal 2016 113,000 ? SLR2P (4) LR2 Yes 117 STI Nautilus 2016 113,000 ? SLR2P (4) LR2 Yes 118 STI Guard 2016 113,000 ? SLR2P (4) LR2 Yes 119 STI Guide 2016 113,000 ? SLR2P (4) LR2 Yes 120 STI Selatar 2017 109,999 ? SLR2P (4) LR2 Yes 121 STI Rambla 2017 109,999 ? SLR2P (4) LR2 Yes 122 STI Gauntlet 2017 113,000 ? SLR2P (4) LR2 Yes 123 STI 2017 113,000 ? SLR2P (4) LR2 Yes Gladiator124 STI 2017 113,000 ? SLR2P (4) LR2 Yes Gratitude125 STI Lobelia 2019 110,000 ? SLR2P (4) LR2 Yes 126 STI Lotus 2019 110,000 ? SLR2P (4) LR2 Yes 127 STI Lily 2019 110,000 ? SLR2P (4) LR2 Yes 128 STI Lavender 2019 110,000 ? SLR2P (4) LR2 Yes 129 Sky 2007 37,847 1A SHTP (1) Handymax N/A (5 )130 Steel 2008 37,847 1A SHTP (1) Handymax N/A (5 )131 Stone I 2008 37,847 1A SHTP (1) Handymax N/A (5 )132 Style 2008 37,847 1A SHTP (1) Handymax N/A (5 )133 STI Beryl 2013 49,990 ? SMRP (2) MR Not Yet (6 ) Installed134 STI Le 2013 49,990 ? SMRP (2) MR Not Yet (6 ) Rocher Installed135 STI Larvotto 2013 49,990 ? SMRP (2) MR Not Yet (6 ) Installed Total owned, sale leaseback 9,374,548 and bareboat chartered-in fleet DWT

This vessel operates in the Scorpio Handymax Tanker Pool, or SHTP. SHTP is(1 ) a Scorpio Pool and is operated by Scorpio Commercial Management S.A.M. (SCM). SHTP and SCM are related parties to the Company. This vessel operates in or is expected to operate in, the Scorpio MR Pool,(2 ) or SMRP. SMRP is a Scorpio Pool and is operated by SCM. SMRP and SCM are related parties to the Company. This vessel operates in the Scorpio LR1 Pool, or SLR1P. SLR1P is a Scorpio(3 ) Pool and is operated by SCM. SLR1P and SCM are related parties to the Company. This vessel operates in or is expected to operate in the Scorpio LR2 Pool,(4 ) or SLR2P. SLR2P is a Scorpio Pool and is operated by SCM. SLR2P and SCM are related parties to the Company. In March 2019, we entered into a new bareboat charter-in agreement on a(5 ) previously bareboat chartered-in vessel. The term of the agreement is for two years at a bareboat rate of $6,300 per day. The agreement is expected to expire on March 31, 2021. In April 2017, we sold and leased back this vessel, on a bareboat basis, for a period of up to eight years for $8,800 per day. The sales price was $29.0 million per vessel, and we have the option to purchase this vessel(6 ) beginning at the end of the fifth year of the agreement through the end of the eighth year of the agreement, at market-based prices. Additionally, a deposit of $4.35 million per vessel was retained by the buyer and will either be applied to the purchase price of the vessel if a purchase option is exercised or refunded to us at the expiration of the agreement.

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 the amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

The Company's dividends paid during 2019 and 2020 were as follows:

Date paid Dividends per commonshareMarch 2019 $0.100June 2019 $0.100September 2019 $0.100December 2019 $0.100March 2020 $0.100June 2020 $0.100September 2020 $0.100December 2020 $0.100

On February 17, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about March 15, 2021 to all shareholders of record as of March 2, 2021 (the record date). As of February17, 2021, there were 58,093,147 common shares of the Company outstanding.

$250 Million Securities Repurchase Program

In May 2015, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities which, in addition to its common shares, currently consist of its Senior Notes due 2025 (NYSE: SBBA), which were issued in May 2020, and Convertible Notes due 2022, which were issued in May and July 2018.

-- Between July 1, 2020 and September 7, 2020, the Company repurchased $52.3 million face value of its Convertible Notes due 2022 at an average price of $894.12 per $1,000 principal amount, or $46.7 million. -- In September 2020, the Company acquired an aggregate of 1,170,000 of its common shares at an average price of $11.18 per share for a total of $13.1 million. The repurchased shares are being held as treasury shares.

In September 2020, the Company's Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities. The aforementioned repurchases of common stock and convertible notes were executed under the previous securities repurchase program which has since been terminated. No securities have been repurchased under the new program since its inception through the date of this press release.

At the Market Offering Program

In November 2019, the Company entered into an at the market offering program (the "ATM Program") pursuant to which it may sell up to $100 million of its common shares, par value $0.01 per share. As part of the ATM Program, the Company entered into an equity distribution agreement dated November 7, 2019 (the Sales Agreement), with BTIG, LLC, as sales agent (the "Equity ATM Agent"). In accordance with the terms of the Sales Agreement, the Company may offer and sell its common shares from time to time through the Equity ATM Agent by means of ordinary brokers transactions on the NYSE at market prices, in block transactions, or as otherwise agreed upon by the Equity ATM Agent and the Company.

In June 2020, the Company sold an aggregate of 137,067 of its common shares at an average price of $18.79 per share for aggregate net proceeds of $2.6 million. No additional sales have been made under this program and there is $97.4 million of remaining availability under the ATM Program as of February 17, 2021.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns, finance leases or bareboat charters-in 135 product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and 18 Handymax tankers) with an average age of 5.2 years. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.

Non-IFRS Measures

Reconciliation of IFRS Financial Information to Non-IFRS Financial Information

This press release describes time charter equivalent revenue, or TCE revenue, adjusted net income or loss, and adjusted EBITDA, which are not measures prepared in accordance with IFRS ("Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors and other users of our financial statements, such as our lenders, with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

The Company believes that the presentation of TCE revenue, adjusted net income or loss with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful to investors or other users of our financial statements, such as our lenders, because they facilitate the comparability and the evaluation of companies in the Companys industry. In addition, the Company believes that TCE revenue, adjusted net income or loss with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Companys industry. The Companys definitions of TCE revenue, adjusted net income or loss with adjusted earnings per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.

TCE revenue, on a historical basis, is reconciled above in the section entitled "Explanation of Variances on the Fourth Quarter of 2020 Financial Results Compared to the Fourth Quarter of 2019". The Company has not provided a reconciliation of forward-looking TCE revenue because the most directly comparable IFRS measure on a forward-looking basis is not available to the Company without unreasonable effort.

Reconciliation of Net (Loss) / Income to Adjusted Net (Loss) / Income

For the three months ended December 31, 2020 Per share Per share In thousands of U.S. dollars Amount basic diluted except per share data Net loss $ (76,261 ) $ (1.41 ) $ (1.41 ) Adjustments: Loss on extinguishment of 2,788 0.05 0.05 debt Impairment of vessels 14,207 0.26 0.26 Impairment of goodwill 2,639 0.05 0.05 Adjusted net loss $ (56,627 ) $ (1.04 ) (1 ) $ (1.04 ) (1 )

For the three months ended December 31, 2019 Per share Per share In thousands of U.S. dollars Amount basic diluted except per share data Net income $ 12,042 $ 0.22 $ 0.21 Adjustment: Deferred financing fees 748 0.01 0.01 write-off Adjusted net income $ 12,790 $ 0.23 $ 0.23 (1 )

For the year ended December 31, 2020 Per share Per share In thousands of U.S.dollars except per share Amount basic diluted data Net income $ 94,124 $ 1.72 $ 1.67 Adjustments: Loss on extinguishment 4,056 0.07 0.07 of debt Gain on repurchase of (1,013 ) $ (0.02 ) $ (0.02 ) Convertible Notes Impairment of vessels 14,207 0.26 0.25 Impairment of goodwill 2,639 0.05 0.05 Adjusted net income $ 114,013 $ 2.09 (1 ) $ 2.02

For the year ended December 31, 2019 Per share Per share In thousands of U.S. dollars Amount basic diluted except per share data Net loss $ (48,490 ) $ (0.97 ) $ (0.97 ) Adjustment: Deferred financing fees 1,466 0.03 0.03 write-off Adjusted net loss $ (47,024 ) $ (0.94 ) $ (0.94 )

(1) Summation differences due to rounding

Reconciliation of Net (Loss) / Income to Adjusted EBITDA

For the three months For the year ended ended December 31, December 31,In thousands of U.S. 2020 2019 2020 2019dollars Net (loss) / income $ (76,261 ) $ 12,042 $ 94,124 $ (48,490 ) Financial expenses 35,888 47,287 154,971 186,235 Financial income (181 ) (756 ) (1,249 ) (8,182 ) Depreciation - owned or finance leased 49,948 46,477 194,268 180,052 vessels Depreciation - right 12,578 12,636 51,550 26,916 of use assets Impairment of vessels 14,207 ? 14,207 ? Impairment of 2,639 ? 2,639 ? goodwill Amortization of 6,372 6,713 28,506 27,421 restricted stock Gain on repurchase of ? ? (1,013 ) ? Convertible Notes Adjusted EBITDA $ 45,190 $ 124,399 $ 538,003 $ 363,952

Forward-Looking Statements

Matters discussed in this press release may constitute forwardlooking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forwardlooking statements in order to encourage companies to provide prospective information about their business. Forwardlooking 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," "expect," "anticipate," "estimate," "intend," "plan," "target," "project," "likely," "may," "will," "would," "could" and similar expressions identify forwardlooking statements.

The forwardlooking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, managements examination of historical operating trends, data contained in the Companys records and other data available from third parties. Although management believes 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 the Companys control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors, other important factors that, in the Companys view, could cause actual results to differ materially from those discussed in the forwardlooking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effect on demand for petroleum products and the transportation thereof, expansion and growth of the Companys operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, 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 the Companys operating expenses, including bunker prices, drydocking and insurance costs, the market for the Companys 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 offhires, and other factors. Please see the Company's filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

Scorpio Tankers Inc.212-542-1616