GlobeNewswire Inc | Nov 11, 2021 06:44AM EST

November 11, 2021

MONACO, Nov. 11, 2021 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers" or the "Company") today reported its results for the three and nine months ended September 30, 2021. 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 September 30, 2021 and 2020

For the three months ended September 30, 2021, the Company had a net loss of$73.3 million, or$1.34basic and diluted loss per share.

For the three months ended September 30, 2021, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $76.1 million, or $1.39 basic and diluted loss per share, which excludes from the net loss a $2.9 million, or $0.05 per basic and diluted share, gain recorded as part of the refinancing of the lease financing for five vessels (the accounting for which is described below under the section entitled 'Debt').

For the three months ended September 30, 2020, the Company had a net loss of $20.2 million, or $0.37 basic and diluted loss per share.

For the three months ended September 30, 2020, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $20.2 million, or $0.37 basic and diluted loss per share, which excludes from the net loss (i) a $1.0 million, or $0.02 per basic and diluted share, gain recorded on the Companys repurchase of its Convertible Notes due 2022 and (ii) a $1.0 million, or $0.02 per basic and diluted share, write-off of deferred financing fees and unamortized fair value discounts on sale and leaseback liabilities that were refinanced during the period.

Results for the nine months ended September 30, 2021 and 2020

For the nine months ended September 30, 2021, the Company had a net loss of $188.4 million, or $3.46 basic and diluted loss per share.

For the nine months ended September 30, 2021, the Company had an adjusted net loss (see Non-IFRS Measures section below) of $184.5 million, or $3.38 basic and diluted loss per share, which excludes from the net loss (i) a $2.9 million, or $0.05 per basic and diluted share, gain recorded as part of the refinancing of the lease financing for five vessels (the accounting for which is described below under the section entitled 'Debt'), (ii) $5.5 million, or $0.10 per basic and diluted share, of aggregate losses recorded on the March 2021 and June 2021 transactions to exchange the Company's existing Convertible Notes due 2022 for new Convertible Notes due 2025, and (iii) a $1.3 million, or $0.02 per basic and diluted share, write-off of deferred financing fees related to the refinancing of certain credit facilities.

For the nine months ended September 30, 2020, the Company had net income of $170.4 million, or $3.11 basic and $2.95 diluted earnings per share.

For the nine months ended September 30, 2020, the Company had an adjusted net income (see Non-IFRS Measures section below) of $170.6 million, or $3.11 basic and $2.95 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 Companys repurchase of its Convertible Notes due 2022 and (ii) a $1.3 million, or $0.02 per basic and diluted share, write-off of deferred financing fees and unamortized fair value discounts on sale and leaseback liabilities that were refinanced during the period.

Emanuele A. Lauro, Chairman and Chief Executive Officer, commented, We are pleased with our current liquidity, and we are seeing a significant improvement in rates while the global energy markets are tightening.

Declaration of Dividend

On November 10, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about December 15, 2021 to all shareholders of record as of December 3, 2021 (the record date). As of November 10, 2021, there were 58,369,516 common shares of the Company outstanding.

Summary of Third 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 voyages and time charters in the pools (excluding voyages outside of the pools) for the Company's vessels thus far in the fourth 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 $13,750 58%LR1 $12,500 55%MR $10,500 55%Handymax $8,700 52%

-- Below is a summary of the average daily TCE revenue earned by the Company's vessels in each of the pools (excluding voyages outside of the pools) during the third quarter of 2021:

Pool Average daily TCE revenueLR2 $10,871LR1 $10,015MR $10,320Handymax $7,457

-- In August 2021, the Company acquired a minority interest in a portfolio of nine product tankers, among which are five dual-fuel MR methanol tankers (built between 2016 and 2021). These five vessels carry methanol as well as traditional petroleum products, and they are powered either by methanol or by traditional marine fuels. -- 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 July 1, 2021 and through the date of this press release, the Company issued $10.6 million aggregate principal amount of additional Senior Notes due 2025 for aggregate net proceeds (net of sales agent commissions and offering expenses) of $10.3 million. There is $33.8 million of remaining availability under this program as of November 10, 2021. -- In September 2021, the Company closed on the refinancing of the outstanding debt on five LR2s, raising $11.8 million in aggregate new liquidity. -- In November 2021, the Company closed on the refinancing of the outstanding debt on six vessels (four LR2s and two Handymax vessels), raising $41.3 million in aggregate new liquidity. -- The Company is in discussions with certain financial institutions to further increase its liquidity by up to $34.1 million in connection with the refinancing of six vessels. -- The Company also has $18.0 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 $228.9 million in cash and cash equivalents as of November 10, 2021.

Investment in Dual Fuel Tankers

In August 2021, the Company acquired a minority interest in a portfolio of nine product tankers, consisting of five dual-fuel MR methanol tankers (built between 2016 and 2021) which, in addition to traditional petroleum products, are designed to both carry methanol as a cargo and to consume it as a fuel, along with four ice class 1A LR1 product tankers. The dual-fuel MR methanol tankers are currently on long-term time charter contracts greater than five years. As part of this agreement, the Company acquired a 50% interest in a joint venture that ultimately has a minority interest in the entities that own the vessels for final consideration of $6.7 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 and Convertible Notes due 2025. 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 and Convertible Notes due 2025 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 and Convertible Notes due 2025, which were issued in March and June 2021 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 $6.0 million and $14.4 million during the three and nine months ended September 30, 2021, respectively, were not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.

For the three and nine months ended September 30, 2021, the Companys basic weighted average number of shares outstanding were 54,757,241 and 54,512,767, respectively. There were 56,702,496 and 56,766,685 weighted average shares outstanding including the potentially dilutive impact of restricted shares issued under the Company's equity incentive plan, for the three and nine months ended September 30, 2021, respectively. There were 63,936,546 and 62,625,888 weighted average shares outstanding for the three and nine months ended September 30, 2021, respectively, under the if-converted method. Since the Company was in a net loss position in both periods, the potentially dilutive shares arising from both the Companys restricted shares issued under the Company's equity incentive plan 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.

COVID-19

Initially, the onset of the COVID-19 pandemic in March 2020 resulted in a sharp reduction in 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 late in the first quarter of 2020 and throughout the second quarter of 2020. These market dynamics, which were driven by arbitrage trading rather than underlying consumption, led to a build-up of global oil and refined petroleum product inventories. In June 2020, as underlying oil markets stabilized and global economies began to recover, the excess inventories that built up during this period began to slowly unwind thus causing demand for the seaborne transportation of refined petroleum products to decline.

These market conditions, coupled with underlying oil consumption that has yet to reach pre-pandemic levels, have had an adverse impact on spot TCE rates beginning in the third quarter of 2020 and continuing through the third quarter of 2021. Nevertheless, during the second quarter of 2021, the easing of restrictive measures and successful roll-out of vaccines in certain countries served as a catalyst for an economic recovery in many countries throughout the world. Consequently, oil prices have recently reached multi-year highs on the back of steadily increasing consumption, and existing inventories of refined petroleum products have fallen below multi-year averages. Though these dynamics have set the stage for a long-term recovery, spot TCE rates have remained subdued as demand has yet to reach pre-pandemic levels.

The Company expects 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 continue to have a material impact on the Company's earnings, cash flow and financial condition. An estimate of the impact on the Company's 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 new 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), Convertible Notes due 2022, and Convertible Notes due 2025. No securities have been repurchased under the new program since its inception through the date of this press release.

Conference Call

The Company has scheduled a conference call on November 11, 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: 5281973

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/2d8p5voo

Current Liquidity

As of November 10, 2021, the Company had $228.9 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 third quarter of 2021. There was no such activity in progress as of October 1, 2021.

Number Ballast Aggregate Costs Aggregate of Drydock Water Scrubbers ($ in millions) Off-hire Vessels Treatment ^(1) Days in Q3 Systems 2021Completed inthe third quarter of2021LR2 3 3 ? ? $4.6 119LR1 2 2 ? ? 2.2 88MR ? ? ? ? ? ?Handymax ? ? ? ? ? ? 5 5 ? ? $6.8 207

(1)Aggregate costs for vessels completed in the quarter represent the total costs incurred, 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 2022 (which also include actual payments made during the fourth quarter of 2021 and through November 10, 2021):

In millions of U.S. dollars As of September 30, 2021 ^(1) (2) Q4 2021 - payments made through November 10, $ 2.0 2021Q4 2021 - remaining payments 12.8 Q1 2022 7.9 Q2 2022 8.9 Q3 2022 16.1 Q4 2022 6.0

(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 $18.0 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 vessels and estimated expected off-hire days for the Company's drydocks, ballast water treatment system installations, and scrubber installations(1):

Q4 2021 Vessels Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 4 ? ? 80 LR1 2 ? 2 102 MR ? ? ? ? Handymax ? ? ? ? Total Q4 2021 6 ? 2 182 Q1 2022 Vessels Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 2 ? 1 71 LR1 ? ? 3 170 MR 1 ? ? 20 Handymax ? ? ? ? Total Q1 2022 3 ? 4 261 Q2 2022 Vessels Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 1 ? ? 29 LR1 ? ? ? ? MR 1 ? 1 40 Handymax ? ? ? ? Total Q2 2022 2 ? 1 69 Q3 2022 Vessels Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 ? ? ? ? LR1 ? ? ? ? MR 7 5 1 160 Handymax ? ? ? ? Total Q3 2022 7 5 1 160 Q4 2022 Vessels Scheduled for ^(2): Off-hire Drydock Ballast Water Treatment Systems Scrubbers Days ^(3)LR2 ? ? ? ? LR1 ? ? ? ? MR 2 ? 2 80 Handymax ? ? ? ? Total Q4 2022 2 ? 2 80

(1)The number of vessels in these tables may 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 in these tables 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 principal balances of the Companys outstanding indebtedness as of the dates presented.

In thousands of Outstanding Outstanding Outstanding U.S. Dollars Principal as of June Principal as of Principal as of Nov. 30, 2021 Sept. 30, 2021 10, 20211 ING Credit 32,386 31,350 ? Facility ^(2)2 Credit Agricole 77,877 75,734 75,734 Credit Facility ABN AMRO /3 K-Sure Credit 39,901 38,938 38,938 Facility ^(3) Citibank /4 K-Sure Credit 82,610 80,506 80,506 Facility5 ABN / SEB Credit 76,164 73,634 ? Facility ^(2) Hamburg6 Commercial 38,670 37,847 37,847 Credit Facility7 Prudential 47,605 46,219 45,295 Credit Facility8 2019 DNB / GIEK 49,007 47,229 47,229 Credit Facility9 BNPP Sinosure 91,481 91,481 86,314 Credit Facility 2020 $225.010 Million Credit 198,389 193,139 193,139 Facility 2021 $21.011 Million Credit 20,415 19,830 19,830 Facility12 Ocean Yield 132,993 130,148 129,174 Lease Financing13 BCFL Lease 84,783 82,063 81,153 Financing (LR2s)14 CSSC Lease 128,844 139,486 138,272 Financing ^(1) CSSC Scrubber15 Lease Financing 2,483 ? ? ^(1)16 BCFL Lease 76,427 72,659 71,425 Financing (MRs)17 2018 CMBFL Lease 118,489 115,237 114,401 Financing18 $116.0 Million 100,887 98,336 97,506 Lease Financing19 AVIC Lease 113,069 109,737 109,737 Financing20 China Huarong 111,833 107,625 107,625 Lease Financing21 $157.5 Million 116,729 113,193 113,193 Lease Financing22 COSCO Lease 64,900 62,975 62,975 Financing23 2020 CMBFL Lease 42,952 42,142 42,142 Financing24 2020 TSFL Lease 45,589 44,759 44,759 Financing25 2020 SPDBFL 93,259 91,629 91,629 Lease Financing26 2021 AVIC Lease 95,517 93,699 93,699 Financing27 2021 CMBFL Lease 77,825 76,195 75,790 Financing28 2021 TSFL Lease 56,567 55,472 55,472 Financing29 2021 CSSC Lease 56,523 55,208 54,770 Financing 2021 $146.330 Million Lease ? ? 146,250 Financing ^(2)31 IFRS 16 - Leases 33,171 31,221 30,582 - 3 MR32 $670.0 Million 570,261 558,430 554,503 Lease Financing Unsecured Senior33 Notes Due 2025 ^ 58,757 68,271 69,347 (3)34 Convertible 69,695 69,695 69,695 Notes Due 2022 Convertible35 Notes Due 2025 ^ 202,930 205,394 206,585 (4) Gross debt $ 3,208,988 $ 3,159,481 $ 3,185,516 outstanding Cash and cash 282,229 192,420 228,947 equivalents Net debt $ 2,926,759 $ 2,967,061 $ 2,956,569

(1)In September 2021, the Company amended and restated the terms of the sale and leaseback arrangement with CSSC (Hong Kong) Shipping Company Limited for five LR2 vessels (STI Gratitude, STI Gladiator, STI Gauntlet, STI Guide and STI Goal). Under the terms of the amended and restated agreement, the borrowing amount increased to $140.7 million from $128.9 million at the time of the transaction (which is inclusive of scrubber financing), resulting in a net additional borrowing of $11.8 million.

The tenor of the arrangement remained unchanged with each lease scheduled to expire throughout 2026 and 2027, however the Company now has the option to extend the lease for each vessel by an additional 24 months. The interest under the amended and restated agreement was reduced to LIBOR plus a margin of 3.50% per annum from LIBOR plus a margin of 4.60% per annum and the principal balance is scheduled to be repaid in equal installments of approximately $0.2 million per vessel per month. Each lease also contains purchase options to re-acquire each of the subject vessels beginning on the second anniversary date from the effective date of the amended agreement, with a purchase obligation for each vessel upon the expiration of each agreement.

The CSSC Lease Financing includes a covenant that requires that the fair market value of each vessel leased under the facility shall at all times be no less than 125% of the outstanding balance for such vessel.

This transaction is being accounted for as an amendment to the original financial liability under IFRS 9 as the terms of the amended and restated arrangement were determined to not be substantially different than that of the original arrangement. Pursuant to IFRS 9, where an existing financial liability is modified, a gain or loss should be recognized as the difference between the original contractual cash flows and the modified contractual cash flows discounted using the original effective interest rate. This calculation resulted in a gain of $2.9 million, which consisted of the gain arising from the present value calculation of the modified contractual cash flows, offset by fees paid to the lessor.

(2)In November 2021, the Company closed on the sale and leaseback transactions for four LR2 product tankers (STI Connaught, STI Winnie, STI Lauren and STI Broadway) and two Handymax product tankers (STI Rotherhithe and STI Hammersmith) with an international financial institution (the "2021 $146.3 Million Lease Financing"). The borrowing amount under the agreement was $146.3 million in aggregate, and part of the proceeds were used to repay the aggregate outstanding indebtedness of $105.0 million relating to these vessels under the ING Credit Facility and ABN/SEB Credit Facility.

Under this lease financing arrangement, each vessel is subject to a seven-year bareboat charter-in agreement. The lease financings bear interest at LIBOR plus a margin of 3.3% per annum and are scheduled to be repaid in equal quarterly principal installments of approximately $0.7 million on three LR2 vessels, $0.6 million on one LR2 vessel and $0.4 million per Handymax vessel. In addition, the Company has purchase options beginning at the end of the second year of each agreement, and a purchase obligation for each vessel upon the expiration of each agreement. The remaining terms and conditions, including financial covenants, are similar to those set forth in the Company's existing lease financing arrangements.

(3)In January 2021, the Company entered into a note distribution agreement with B. Riley Securities, Inc., as sales 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"). 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 are fungible with, the initial notes which were issued on May 29, 2020. Sales of the Additional Notes may be made over a period of time, and from time to time, through the sales agent, in transactions involving an offering of the Senior Notes due 2025 into the existing trading market at prevailing market prices. During the third quarter of 2021, the Company issued $9.5 million aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $9.3 million. Since inception of this program and through the date of this press release, the Company issued $41.2 million aggregate principal amount of Additional Notes for aggregate net proceeds (net of sales agent commissions and offering expenses) of $40.3 million.

(4)The outstanding principal balance reflects the par value of the Convertible Notes Due 2025 of $200.0 million plus the accreted principal balance as of each date presented. The Convertible Notes due 2025 are scheduled to accrete at an annualized rate of approximately 5.52% per annum, with the total balance due at maturity equal to 125.3% of par. The Convertible Notes due 2025 also bear interest at a cash coupon rate of 3.0% per annum, which is calculated based upon the par value of the instrument.

Set forth below are the estimated expected future principal repayments on the Company's outstanding indebtedness as of September 30, 2021, which includes principal amounts due under the Company's secured credit facilities, Convertible Notes due 2022, Convertible Notes due 2025, lease financing arrangements, Senior Notes due 2025, and lease liabilities under IFRS 16 (which also include actual scheduled payments made during the fourth quarter of 2021 through November 10, 2021):

As of September 30, 2021 ^(1)In millions Maturities Vessel Vessel financings -of U.S. Total of financings - scheduled repayments, indollars unsecured 2021 and 2022 addition to maturities in debt maturities 2023 and thereafterQ4 2021 -principalpayments made $ 17.5 $ ? $ ? $ 17.5 throughNovember 10,2021 ^(2)Q4 2021 60.9 ? ? 60.9 Q1 2022 ^(3) 92.0 ? 19.3 72.7 Q2 2022 ^(4) 216.2 69.7 70.2 76.3 Q3 2022 ^(5) 89.2 ? 18.4 70.8 Q4 2022 ^(6) 125.7 ? 51.2 74.5 2023 and 2,558.0 273.7 ? 2,284.3 thereafter $ 3,159.5 $ 343.4 $ 159.1 $ 2,657.0

(1)Amounts represent the principal payments due on the Companys outstanding indebtedness as of September 30, 2021 and do not incorporate the impact of any of the Companys new financing initiatives which have not closed as of that date.

(2)Repayments do not include the November 2021 repayment of the aggregate outstanding indebtedness of $105.0 million relating to the vessels under the ING Credit Facility and ABN/SEB Credit Facility which were refinanced as part of the sale and leaseback transaction under the 2021 $146.3 Million Lease Financing.

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

(4)Repayments include the scheduled maturities of outstanding debt related to (i) the Company's Convertible Notes due 2022 of $69.7 million, (ii) three vessels under the Citi/K-Sure Credit Facility of $57.6 million in aggregate, and (iii) one vessel under the ING Credit Facility of $12.6 million. The scheduled maturity under the ING Credit Facility was repaid in November 2021 as noted above.

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

(6)Repayments include the scheduled maturities of outstanding debt related to (i) one vessel under the ABN AMRO/K-Sure Credit Facility of $17.2 million, (ii) one vessel under the Credit Agricole Credit Facility of $16.5 million, and (iii) one vessel under the 2021 $21.0 Million Credit Facility for $17.5 million.

Explanation of Variances on the Third Quarter of 2021 Financial Results Compared to the Third Quarter of 2020

For the three months ended September 30, 2021, the Company recorded a net loss of $73.3 million compared to a net loss of $20.2 million for the three months ended September 30, 2020. 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 September 30, 2021 and 2020:

For the three months ended September 30,In thousands of U.S. dollars 2021 2020 Vessel revenue $ 119,271 $ 177,250 Voyage expenses (661 ) (592 ) TCE revenue $ 118,610 $ 176,658

-- TCE revenue for the three months ended September 30, 2021 decreased by $58.0 million to $118.6 million, from $176.7 million for the three months ended September 30, 2020. Overall average TCE revenue per day decreased to $10,139 per day during the three months ended September 30, 2021, from $15,100 per day during the three months ended September 30, 2020. TCE revenue for the three months ended September 30, 2021 reflected the continued adverse market conditions brought on by the COVID-19 pandemic. While underlying demand for crude and refined petroleum products have improved throughout 2021, it still remains below pre-pandemic levels thus keeping pressure on daily spot TCE rates. These conditions were exacerbated by longer than expected refinery maintenance along with drawdowns of existing inventories during the third quarter of 2021, which negatively affected the demand for the seaborne transportation of refined petroleum products.TCE revenue for the three months ended September 30, 2020 reflected the aftermath of the extreme volatility brought on by the onset of the COVID-19 pandemic, which initially caused record spikes in spot TCE rates but also led to the buildup of excess inventories during the second quarter of 2020. As markets stabilized in June of 2020, the excess inventories that built up during this period began to slowly unwind thus causing demand for the seaborne transportation of refined petroleum products to decline. TCE revenue for the three months ended September 30, 2020 therefore reflects a mixture of the strong results from voyages that were fixed during the second quarter of 2020 which carried over into the third quarter of 2020, coupled with the weaker results from subsequent voyages that were fixed during the third quarter of 2020. -- Vessel operating costs for the three months ended September 30, 2021 increased by $0.1 million to $85.9 million, from $85.8 million for the three months ended September 30, 2020. Vessel operating costs per day increased to $7,126 per day for the three months ended September 30, 2021 from $6,950 per day for the three months ended September 30, 2020. This increase was primarily attributable to (i) costs incurred to transition technical managers for certain MRs that were acquired from Trafigura Maritime Logistics Pte. Ltd. in 2019 (the last of which were transitioned during the third quarter of 2021) and (ii) increased crewing related costs due to COVID-19. -- Depreciation expense - owned or sale leaseback vessels for the three months ended September 30, 2021 increased by $0.3 million to $49.7 million, from $49.4 million for the three months ended September 30, 2020. 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. -- Depreciation expense - right of use assets for the three months ended September 30, 2021 decreased $1.8 million to $10.4 million from $12.2 million for the three months ended September 30, 2020. 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 an MR that was previously under construction in the third quarter of 2020 offset by the redelivery of three Handymax vessels upon the expiration of their bareboat charters in the second and third quarters of 2020 and four Handymax vessels at the end of the first quarter of 2021. The Company had four LR2s and 18 MRs that were accounted for under IFRS 16 - Leases during the three months ended September 30, 2021. -- General and administrative expenses for the three months ended September 30, 2021, decreased by $2.8 million to $13.1 million, from $15.9 million for the three months ended September 30, 2020. This decrease was due to an overall reduction in costs during the three months ended September 30, 2021, including reductions in restricted stock amortization and compensation expenses. -- Financial expenses for the three months ended September 30, 2021 increased slightly by $0.6 million to $35.8 million, from $35.2 million for the three months ended September 30, 2020. This increase was primarily attributable to an increase in the Company's average debt balance, which increased to $3.2 billion from $3.1 billion for the three months ended September 30, 2021 and 2020, respectively.

-- Financial income for the three months ended September 30, 2021 increased $2.8 million to $3.0 million from $0.2 million for the three months ended September 30, 2020. Financial income for the three months ended September 30, 2021 reflects the gain recorded upon the modification of the CSSC Lease Financing arrangement as described above in the section entitled 'Debt'.

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

For the three months ended For the nine months ended September 30, September 30,In thousands of U.S.dollars except per 2021 2020 2021 2020share and share dataRevenue Vessel revenue $ 119,271 $ 177,250 $ 392,878 $ 777,656 Operating expenses Vessel operating (85,881 ) (85,752 ) (249,781 ) (246,973 ) costs Voyage expenses (661 ) (592 ) (3,442 ) (7,718 ) Depreciation - owned or sale (49,707 ) (49,377 ) (147,713 ) (144,320 ) leaseback vessels Depreciation - (10,408 ) (12,166 ) (32,449 ) (38,972 ) right of use assets General and administrative (13,054 ) (15,861 ) (39,938 ) (51,870 ) expenses Total operating (159,711 ) (163,748 ) (473,323 ) (489,853 ) expensesOperating (loss) / (40,440 ) 13,502 (80,445 ) 287,803 incomeOther (expense) and income, net Financial expenses (35,810 ) (35,191 ) (105,783 ) (119,084 ) Loss on Convertible ? ? (5,504 ) ? Notes exchange Gain on repurchase of Convertible ? 1,013 ? 1,013 Notes Financial income 3,041 208 3,453 1,068 Other (expense) and (58 ) 285 (164 ) (417 ) income, net Total other (32,827 ) (33,685 ) (107,998 ) (117,420 ) expense, netNet (loss) / income $ (73,267 ) $ (20,183 ) $ (188,443 ) $ 170,383 (Loss) / Earnings per share Basic $ (1.34 ) $ (0.37 ) $ (3.46 ) $ 3.11 Diluted $ (1.34 ) $ (0.37 ) $ (3.46 ) $ 2.95 Basic weighted average shares 54,757,241 54,905,361 54,512,767 54,800,402 outstanding Diluted weighted average shares 54,757,241 54,905,361 54,512,767 61,578,016 outstanding ^(1)

(1)The computation of diluted loss per share for the three and nine months ended September 30, 2021 excludes the effect of potentially dilutive unvested shares of restricted stock and the Convertible Notes due 2022 and Convertible Notes due 2025 because their effect would have been anti-dilutive. The computation of diluted earnings per share for the three and nine months ended September 30, 2020 includes the effect of potentially dilutive unvested shares of restricted stock and the effect of the Convertible Notes due 2022 under the if-converted method.

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

As ofIn thousands of U.S. dollars September 30, December 31, 2021 2020Assets Current assets Cash and cash equivalents $ 192,420 $ 187,511 Accounts receivable 40,752 33,017 Prepaid expenses and other current assets 9,902 12,430 Inventories 8,539 9,261 Total current assets 251,613 242,219 Non-current assets Vessels and drydock 3,884,053 4,002,888 Right of use assets 774,362 807,179 Other assets 109,644 92,145 Goodwill 8,900 8,900 Restricted cash 5,293 5,293 Total non-current assets 4,782,252 4,916,405 Total assets $ 5,033,865 $ 5,158,624 Current liabilities Current portion of long-term debt $ 250,165 $ 172,705 Lease liability - sale and leaseback vessels 159,343 131,736 Lease liability - IFRS 16 54,389 56,678 Accounts payable 15,246 12,863 Accrued expenses 24,663 32,193 Total current liabilities 503,806 406,175 Non-current liabilities Long-term debt 803,789 971,172 Lease liability - sale and leaseback vessels 1,307,575 1,139,713 Lease liability - IFRS 16 534,637 575,796 Total non-current liabilities 2,646,001 2,686,681 Total liabilities 3,149,807 3,092,856 Shareholders' equity Issued, authorized and fully paid-in share capital:Share capital 659 656 Additional paid-in capital 2,856,936 2,850,206 Treasury shares (480,172 ) (480,172 )Accumulated deficit (493,365 ) (304,922 )Total shareholders' equity 1,884,058 2,065,768 Total liabilities and shareholders' equity $ 5,033,865 $ 5,158,624

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

For the nine months ended September 30, 2021In thousands of U.S. dollars 2021 2020Operating activities Net (loss) / income $ (188,443 ) $ 170,383 Depreciation - owned or finance leased vessels 147,713 144,320 Depreciation - right of use assets 32,449 38,972 Amortization of restricted stock 18,231 22,134 Amortization of deferred financing fees 5,663 4,823 Write-off of deferred financing fees and unamortized 1,326 1,268 discounts on sale and leaseback facilitiesAccretion of convertible notes 9,179 6,623 Gain on sale and leaseback amendment (2,851 ) ? Accretion of fair value measurement on debt assumed in 2,582 2,598 business combinationsLoss / (gain) on Convertible Notestransactions 5,504 (1,013 ) 31,353 390,108 Changes in assets and liabilities: Decrease / (increase) in inventories 723 (388 )(Increase) / decrease in accounts receivable (7,736 ) 18,359 Decrease in prepaid expenses and other current assets 2,528 1,452 (Increase) / decrease in other assets (448 ) 1,058 Increase / (decrease) in accounts payable 2,697 (4,820 )Decrease in accrued expenses (6,037 ) (3,029 ) (8,273 ) 12,632 Net cash inflow from operating activities 23,080 402,740 Investing activities Investment in dual fuel tankers (6,701 ) ? Drydock, scrubber, ballast water treatment system andother vessel related payments (owned, finance leased (41,008 ) (152,614 )and bareboat-in vessels)Net cash outflow from investing activities (47,709 ) (152,614 )Financing activities Debt repayments (404,123 ) (540,732 )Issuance of debt 388,885 450,610 Debt issuance costs (14,080 ) (11,011 )Issuance / (repurchase / repayment) of convertible 119,419 (46,737 )notesPrincipal repayments on lease liability - IFRS 16 (43,080 ) (60,424 )Decrease in restricted cash ? 2,002 Gross proceeds from issuance of common stock ? 2,601 Equity issuance costs ? (26 )Dividends paid (17,483 ) (17,502 )Repurchase of common stock ? (13,115 )Net cash inflow / (outflow) from financing activities 29,538 (234,334 )Increase in cash and cash equivalents 4,909 15,792 Cash and cash equivalents at January 1, 187,511 202,303 Cash and cash equivalents at September 30, $ 192,420 $ 218,095

Scorpio Tankers Inc. and SubsidiariesOther operating data for the three months and nine months ended September 30, 2021 and 2020 (unaudited)

For the three months ended For the nine months ended September 30, September 30, 2021 2020 2021 2020Adjusted EBITDA^(1) (in thousandsof U.S. dollars $ 25,365 $ 82,109 $ 117,784 $ 492,812 except FleetData) Average Daily ResultsTCE per revenue $ 10,139 $ 15,100 $ 11,083 $ 22,447 day^(2)Vessel operatingcosts per day ^ $ 7,126 $ 6,950 $ 6,926 $ 6,649 (3) LR2 TCE per revenue $ 10,871 $ 19,182 $ 11,586 $ 30,492 day^ (2)Vessel operatingcosts per day ^ $ 7,168 $ 7,227 $ 6,849 $ 6,876 (3)Average number of 42.0 42.0 42.0 42.0 vessels LR1 TCE per revenue $ 10,015 $ 17,619 $ 10,953 $ 24,899 day^ (2)Vessel operatingcosts per day ^ $ 7,322 $ 6,933 $ 6,761 $ 6,834 (3)Average number of 12.0 12.0 12.0 12.0 vessels MR TCE per revenue $ 10,262 $ 13,512 $ 11,330 $ 18,515 day^ (2)Vessel operatingcosts per day ^ $ 7,150 $ 6,829 $ 7,013 $ 6,472 (3)Average number of 63.0 62.0 63.0 61.6 vessels Handymax TCE per revenue $ 7,458 $ 9,892 $ 8,716 $ 16,990 day^ (2)Vessel operatingcosts per day ^ $ 6,726 $ 6,736 $ 6,912 $ 6,605 (3)Average number of 14.0 18.1 15.1 20.0 vessels Fleet data Average number of 131.0 134.1 132.1 135.6 vessels Drydock Drydock,scrubber, ballastwater treatmentsystem and othervessel relatedpayments forowned, sale $ 13,700 $ 32,809 $ 41,008 $ 152,614 leaseback andbareboatchartered-invessels (inthousands of U.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, sale leasebacked, 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, sale(3) leasebacked 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 owned, sale leasebacked, or bareboat chartered-in vessels, not time chartered-in vessels.

Fleet list as of November 10, 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 Millennia STI Magister66 (formerly 2019 50,000 ? SMRP (2) MR Yes STI Master)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 STI Beryl 2013 49,990 ? SMRP (2) MR Not Yet (5 ) Installed130 STI Le 2013 49,990 ? SMRP (2) MR Not Yet (5 ) Rocher Installed131 STI Larvotto 2013 49,990 ? SMRP (2) MR Not Yet (5 ) Installed Total owned, sale leaseback 9,223,160 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 the Scorpio MR Pool, or SMRP. SMRP is a Scorpio(2 ) 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 the Scorpio LR2 Pool, or SLR2P. SLR2P is a Scorpio(4 ) Pool and is operated by SCM. SLR2P and SCM are related parties to the Company. 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(5 ) 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 2020 and 2021 were as follows:

Date paid Dividends per common shareMarch 2020 $0.100June 2020 $0.100September 2020 $0.100December 2020 $0.100March 2021 $0.100June 2021 $0.100September 2021 $0.100

On November 10, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about December 15, 2021 to all shareholders of record as of December 3, 2021 (the record date). As of November 10, 2021, there were 58,369,516 common shares of the Company outstanding.

$250 Million Securities Repurchase Program

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 which, in addition to its common shares, currently consist of its Senior Notes due 2025 (NYSE: SBBA), which were originally issued in May 2020, Convertible Notes due 2022, which were issued in May and July 2018, and Convertible Notes due 2025, which were issued in March and June 2021. No securities have been repurchased under the new program since its inception through the date of this press release.

At the Market Equity Offering Program

In November 2019, the Company entered into an at the market offering program (the "ATM Equity 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 Equity 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.

There is $97.4 million of remaining availability under the ATM Equity Program as of November 10, 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 131 product tankers (42 LR2 tankers, 12 LR1 tankers, 63 MR tankers and 14 Handymax tankers) with an average age of 5.8 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 or loss 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 or loss 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 or loss 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 Third Quarter of 2021 Financial Results Compared to the Third Quarter of 2020". 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 to Adjusted Net Loss

For the three months ended Sept. 30, 2021 Per share Per shareIn thousands of U.S. dollars except Amount basic dilutedper share data Net loss $ (73,267 ) $ (1.34 ) $ (1.34 ) Adjustments: Gain on sale and leaseback (2,851 ) (0.05 ) (0.05 ) amendment Adjusted net loss $ (76,118 ) $ (1.39 ) $ (1.39 )

For the three months ended Sept. 30, 2020 Per share Per shareIn thousands of U.S. dollars except Amount basic dilutedper share data Net loss $ (20,183 ) $ (0.37 ) $ (0.37 ) Adjustment: Write-off of deferred financing fees and unamortized discounts 955 0.02 0.02 on sale and leaseback facilities Gain on repurchase of (1,013 ) (0.02 ) (0.02 ) Convertible Notes Adjusted net loss $ (20,241 ) $ (0.37 ) $ (0.37 )

For the nine months ended Sept. 30, 2021 Per share Per share In thousands of U.S. dollars Amount basic diluted except per share data Net loss $ (188,443 ) $ (3.46 ) $ (3.46 ) Adjustments: Loss on Convertible Notes 5,504 0.10 0.10 exchange Write-off of deferred 1,326 0.02 0.02 financing fees Gain on sale and leaseback (2,851 ) (0.05 ) (0.05 ) amendment Adjusted net loss $ (184,464 ) $ (3.38 ) $ (3.38 ) (1 )

For the nine months ended Sept. 30, 2020 Per share Per shareIn thousands of U.S. dollars except Amount basic dilutedper share data Net income $ 170,383 $ 3.11 $ 2.95 Adjustments: Write-off of deferred financing fees and unamortized discounts 1,268 0.02 0.02 on sale and leaseback facilities Gain on repurchase of $ (1,013 ) $ (0.02 ) $ (0.02 ) Convertible Notes Adjusted net income $ 170,638 $ 3.11 $ 2.95

(1) Summation difference due to rounding.

Reconciliation of Net (Loss) / Income to Adjusted EBITDA

For the three months For the nine months ended ended September 30, September 30,In thousands of U.S. 2021 2020 2021 2020dollars Net (loss) / income $ (73,267 ) $ (20,183 ) $ (188,443 ) $ 170,383 Financial expenses 35,810 35,191 105,783 119,084 Financial income (3,041 ) (208 ) (3,453 ) (1,068 ) Depreciation - owned or 49,707 49,377 147,713 144,320 finance leased vessels Depreciation - right of 10,408 12,166 32,449 38,972 use assets Amortization of 5,748 6,779 18,231 22,134 restricted stock Loss on Convertible ? ? 5,504 ? Notes exchange Gain on repurchase of ? (1,013 ) ? (1,013 ) Convertible Notes Adjusted EBITDA $ 25,365 $ 82,109 $ 117,784 $ 492,812

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