Scorpio Tankers Inc. | CIK:0001483934 | 3

  • Filed: 3/23/2018
  • Entity registrant name: Scorpio Tankers Inc. (CIK: 0001483934)
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

    Vessels
     
    Operating vessels and drydock
     
     In thousands of U.S. dollars
     Vessels
     
     Drydock
     
     Total
     Cost
     
     
     
     
     
     
     
    As of January 1, 2017
    $
    3,126,790

     
    $
    60,089

     
    $
    3,186,879

     
    Additions (1)
    333,338

     
    12,667

     
    346,005

     
    Vessels acquired in merger with NPTI (2)
    1,113,618

     
    17,632

     
    1,131,250

     
    Disposal of vessels (3)
    (184,098
    )
     
    (3,750
    )
     
    (187,848
    )
     
    Write-offs (4)
    —

     
    (3,750
    )
     
    (3,750
    )
     
    As of December 31, 2017
    4,389,648

     
    82,888

     
    4,472,536

     
     
     
     
     
     
     
     Accumulated depreciation and impairment
     
     
     
     
     
     
    As of January 1, 2017
    (246,210
    )
     
    (27,415
    )
     
    (273,625
    )
     
    Charge for the period
    (127,369
    )
     
    (14,049
    )
     
    (141,418
    )
     
    Disposal of vessels (3)
    25,876

     
    2,975

     
    28,851

     
    Write-offs (4)
    —

     
    3,750

     
    3,750

     
    As of December 31, 2017
    (347,703
    )
     
    (34,739
    )
     
    (382,442
    )
     Net book value
     
     
     
     
     
     
    As of December 31, 2017
    $
    4,041,945

     
    $
    48,149

     
    $
    4,090,094

     
     
     
     
     
     
     
     Cost
     
     
     
     
     
     
     
    As of January 1, 2016
    $
    3,188,367

     
    $
    62,039

     
    $
    3,250,406

     
    Additions (5)
    105,415

     
    1,800

     
    107,215

     
    Disposal of vessels (6)
    (166,992
    )
     
    (3,750
    )
     
    (170,742
    )
     
    As of December 31, 2016
    3,126,790

     
    60,089

     
    3,186,879

     
     
     
     
     
     
     
     Accumulated depreciation and impairment
     
     
     
     
     
     
    As of January 1, 2016
    (146,063
    )
     
    (16,590
    )
     
    (162,653
    )
     
    Charge for the period
    (109,433
    )
     
    (12,028
    )
     
    (121,461
    )
     
    Disposal of vessels (6)
    9,286

     
    1,203

     
    10,489

     
    As of December 31, 2016
    (246,210
    )
     
    (27,415
    )
     
    (273,625
    )
     Net book value
     
     
     
     
     
     
    As of December 31, 2016
    $
    2,880,580

     
    $
    32,674

     
    $
    2,913,254

     
    (1)
    Additions in 2017 primarily relate to the deliveries of eight newbuilding vessels and corresponding calculations of notional drydock on these vessels.
    (2)
    Represents the fair value of the vessels acquired in the Merger with NPTI as described in Note 2.
    (3)
    Represents the net book value of (i) STI Sapphire and STI Emerald, which were sold during the year ended December 31, 2017 and (ii) STI Beryl, STI Le Rocher and STI Larvotto, which were sold and leased back during the year ended December 31, 2017. These transactions are further described below.
    (4)
    Represents the write-off of the notional drydock costs of STI Amber, STI Topaz, STI Ruby, STI Garnet and STI Onyx which were drydocked in 2017.
    (5)
    Additions in 2016 primarily relate to the deliveries of STI Grace and STI Jermyn and the corresponding calculation of notional drydock on these vessels.
    (6)
    Represents the net book value of STI Chelsea, STI Lexington, STI Powai, STI Olivia and STI Mythos, which were sold during the year ended December 31, 2016.

    2017 Activity
    We took delivery of the following newbuilding vessels during the year ended December 31, 2017 resulting in an increase of $346.0 million in Vessels from December 31, 2016:
     
     
     
     Month
     
     Vessel
     
     Name
     
     Delivered
     
     Type
    1

    STI Selatar
     
    February 2017
     
    LR2
    2

    STI Rambla
     
    March 2017
     
    LR2
    3

    STI Galata
     
    March 2017
     
    MR
    4

    STI Bosphorus
     
    April 2017
     
    MR
    5

    STI Leblon
     
    July 2017
     
    MR
    6

    STI La Boca
     
    July 2017
     
    MR
    7

    STI San Telmo
     
    September 2017
     
    MR
    8

    STI Donald C Trauscht
     
    October 2017
     
    MR

    Additionally, five of the Company's 2012 built MR product tankers, STI Amber, STI Topaz, STI Ruby, STI Garnet and STI Onyx, were drydocked in accordance with their scheduled, class required special survey during 2017. These vessels were offhire for an aggregate of 102 days and the aggregate drydock cost was $6.4 million.
    2016 Activity
    We took delivery of the following newbuilding vessels during the year ended December 31, 2016 resulting in an increase of $107.2 million in Vessels from December 31, 2015:
     
     
     
     Month
     
     Vessel
     
     Name
     
     Delivered
     
     Type
    1

    STI Grace
     
    March 2016
     
    LR2
    2

    STI Jermyn
     
    June 2016
     
    LR2

    Additionally, in April 2016, we took ownership of STI Lombard, an LR2 product tanker that was previously bareboat chartered-in, and paid the remaining 90% of the purchase price, or $53.1 million, upon delivery. This bareboat charter-in agreement was accounted for as a finance lease in July 2015 and the vessel's carrying value was recorded at that date. Accordingly, the delivery of this vessel in April 2016 is not reflected as an addition in the above table. We drew down $26.5 million from our ING Credit Facility in April 2016 to partially finance this transaction.
    Vessel Sales
    In February 2016, we reached an agreement with an unrelated third party to sell five 2014 built MR product tankers; STI Lexington, STI Mythos, STI Chelsea, STI Olivia, and STI Powai. Two vessels were sold in March 2016, one vessel was sold in April 2016 and two vessels were sold in May 2016. The aggregate net proceeds were $158.1 million, and we recognized an aggregate loss of $2.1 million as part of these sales.
    As part of the sales of STI Lexington, STI Chelsea, STI Olivia, and STI Powai, we made an aggregate repayment of $73.5 million on our K-Sure Credit Facility, and as part of the sale of STI Mythos, we repaid $17.9 million on our 2013 Credit Facility. We also wrote off an aggregate of $3.2 million of deferred financing fees as part of these repayments.
    In April 2017, we executed agreements with Bank of Communications Financial Leasing Co., Ltd. (the “Buyers”) to sell and leaseback, on a bareboat basis, three 2013 built MR product tankers, STI Beryl, STI Le Rocher and STI Larvotto. The selling price was $29.0 million per vessel, and we agreed to bareboat charter-in these vessels for a period of up to eight years for $8,800 per day per vessel. Each bareboat agreement is being accounted for as an operating lease. We have the option to purchase these vessels beginning at the end of the fifth year of the agreements through the end of the eighth year of the agreements. Additionally, a deposit of $4.35 million per vessel was retained by the buyers 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. These sales closed in April 2017 and as a result, all amounts outstanding under our 2011 Credit Facility of $42.2 million were repaid and a $14.2 million loss on sales of vessels was recorded during the year ended December 31, 2017.
    In April 2017, we executed an agreement with an unrelated third party to sell two 2013 built, MR product tankers, STI Emerald and STI Sapphire, for a sales price of $56.4 million in aggregate. The sale of STI Emerald closed in June 2017, and the sale of STI Sapphire closed in July 2017.  As a result of this transaction, we recorded an aggregate loss on sale of $9.1 million. Additionally, we repaid the aggregate outstanding debt for both vessels of $27.6 million on the BNP Paribas Credit Facility in June 2017 and wrote-off $0.5 million of deferred financing fees as a result of this repayment.
    Collateral agreements
    Vessels with an aggregate carrying value of $4,090.1 million have been pledged as collateral under the terms of our secured debt and finance lease arrangements. This collateral, along with the respective borrowing facility (which are described in Note 13), is summarized below, by vessel as of December 31, 2017:
    Credit Facility
     
    Vessel Name
    2016 Credit Facility
     
    STI Aqua
    2016 Credit Facility
     
    STI Benicia
    2016 Credit Facility
     
    STI Dama
    2016 Credit Facility
     
    STI Meraux
    2016 Credit Facility
     
    STI Opera
    2016 Credit Facility
     
    STI Regina
    2016 Credit Facility
     
    STI San Antonio
    2016 Credit Facility
     
    STI St. Charles
    2016 Credit Facility
     
    STI Texas City
    2016 Credit Facility
     
    STI Venere
    2016 Credit Facility
     
    STI Virtus
    2016 Credit Facility
     
    STI Yorkville
    2017 Credit Facility
     
    STI Bosphorus
    2017 Credit Facility
     
    STI Donald C Trauscht
    2017 Credit Facility
     
    STI Galata
    2017 Credit Facility
     
    STI La Boca
    2017 Credit Facility
     
    STI Leblon
    2017 Credit Facility
     
    STI San Telmo
    ABN AMRO / K-Sure Credit Facility
     
    STI Precision
    ABN AMRO / K-Sure Credit Facility
     
    STI Prestige
    ABN AMRO Credit Facility
     
    STI Carnaby
    ABN AMRO Credit Facility
     
    STI Kingsway
    ABN AMRO Credit Facility
     
    STI Savile Row
    ABN AMRO Credit Facility
     
    STI Spiga
    BCFL Lease Financing (LR2s)
     
    STI Solace
    BCFL Lease Financing (LR2s)
     
    STI Solidarity
    BCFL Lease Financing (LR2s)
     
    STI Stability
    BCFL Lease Financing (MRs)
     
    STI Amber
    BCFL Lease Financing (MRs)
     
    STI Garnet
    BCFL Lease Financing (MRs)
     
    STI Onyx
    BCFL Lease Financing (MRs)
     
    STI Ruby
    BCFL Lease Financing (MRs)
     
    STI Topaz
    BNP Paribas Credit Facility
     
    STI Battery
    BNP Paribas Credit Facility
     
    STI Memphis
    BNP Paribas Credit Facility
     
    STI Soho
    Citi / K-Sure Credit Facility
     
    STI Excellence
    Citi / K-Sure Credit Facility
     
    STI Executive
    Citi / K-Sure Credit Facility
     
    STI Experience
    Citi / K-Sure Credit Facility
     
    STI Express
    CMB Lease Financing
     
    STI Pride
    CMB Lease Financing
     
    STI Providence
    Credit Agricole Credit Facility
     
    STI Exceed
    Credit Agricole Credit Facility
     
    STI Excel
    Credit Agricole Credit Facility
     
    STI Excelsior
    Credit Agricole Credit Facility
     
    STI Expedite
    Credit Suisse Credit Facility
     
    STI Rambla
    Credit Suisse Credit Facility
     
    STI Selatar
    CSSC Lease Financing
     
    STI Gallantry
    CSSC Lease Financing
     
    STI Gauntlet
    CSSC Lease Financing
     
    STI Gladiator
    CSSC Lease Financing
     
    STI Goal
    CSSC Lease Financing
     
    STI Gratitude
    CSSC Lease Financing
     
    STI Guard
    CSSC Lease Financing
     
    STI Guide
    CSSC Lease Financing
     
    STI Nautilus
    DVB 2017 Credit Facility
     
    STI Alexis
    DVB 2017 Credit Facility
     
    STI Milwaukee
    DVB 2017 Credit Facility
     
    STI Seneca
    DVB 2017 Credit Facility
     
    STI Wembley
    HSH Credit Facility
     
    STI Duchessa
    ING Credit Facility
     
    STI Black Hawk
    ING Credit Facility
     
    STI Grace
    ING Credit Facility
     
    STI Jermyn
    ING Credit Facility
     
    STI Lombard
    ING Credit Facility
     
    STI Osceola
    ING Credit Facility
     
    STI Pontiac
    KEXIM Credit Facility
     
    STI Acton
    KEXIM Credit Facility
     
    STI Brixton
    KEXIM Credit Facility
     
    STI Broadway
    KEXIM Credit Facility
     
    STI Camden
    KEXIM Credit Facility
     
    STI Clapham
    KEXIM Credit Facility
     
    STI Comandante
    KEXIM Credit Facility
     
    STI Condotti
    KEXIM Credit Facility
     
    STI Elysees
    KEXIM Credit Facility
     
    STI Finchley
    KEXIM Credit Facility
     
    STI Fulham
    KEXIM Credit Facility
     
    STI Hackney
    KEXIM Credit Facility
     
    STI Madison
    KEXIM Credit Facility
     
    STI Orchard
    KEXIM Credit Facility
     
    STI Park
    KEXIM Credit Facility
     
    STI Pimlico
    KEXIM Credit Facility
     
    STI Poplar
    KEXIM Credit Facility
     
    STI Sloane
    KEXIM Credit Facility
     
    STI Veneto
    K-Sure Credit Facility
     
    STI Battersea
    K-Sure Credit Facility
     
    STI Bronx
    K-Sure Credit Facility
     
    STI Brooklyn
    K-Sure Credit Facility
     
    STI Connaught
    K-Sure Credit Facility
     
    STI Gramercy
    K-Sure Credit Facility
     
    STI Hammersmith
    K-Sure Credit Facility
     
    STI Lauren
    K-Sure Credit Facility
     
    STI Manhattan
    K-Sure Credit Facility
     
    STI Mayfair
    K-Sure Credit Facility
     
    STI Notting Hill
    K-Sure Credit Facility
     
    STI Oxford
    K-Sure Credit Facility
     
    STI Queens
    K-Sure Credit Facility
     
    STI Rotherhithe
    K-Sure Credit Facility
     
    STI Tribeca
    K-Sure Credit Facility
     
    STI Westminster
    K-Sure Credit Facility
     
    STI Winnie
    NIBC Credit Facility
     
    STI Fontvieille
    NIBC Credit Facility
     
    STI Ville
    Ocean Yield Lease Financing
     
    STI Sanctity
    Ocean Yield Lease Financing
     
    STI Steadfast
    Ocean Yield Lease Financing
     
    STI Supreme
    Ocean Yield Lease Financing
     
    STI Symphony
    Scotiabank Credit Facility
     
    STI Rose
    Vessels under construction
        
    We did not enter into any contracts for the construction of newbuilding vessels during the years ended December 31, 2017 and 2016.
    As of December 31, 2017, we had two MR newbuilding product tanker orders with HMD for an aggregate purchase price of $75.8 million, of which $52.3 million in cash has been paid as of that date, which included the final installment payment of $23.5 million for STI Esles II, which was paid in December 2017 in advance of its delivery in January 2018. Additionally, in January 2018, we made the final installment of $23.5 million for the delivery of STI Jardins.
    Capitalized interest
    In accordance with IAS 23 “Borrowing Costs,” applicable interest costs are capitalized during the period that vessels are under construction. For the years ended December 31, 2017 and 2016, we capitalized interest expense for the vessels under construction of $4.2 million and $6.3 million, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization was 4.7% for each of the years ended December 31, 2017 and 2016. We cease capitalizing interest when the vessels reach the location and condition necessary to operate in the manner intended by management.

    A rollforward of activity within vessels under construction is as follows:

    In thousands of U.S. dollars
     
    Balance as of January 1, 2016
    $
    132,218

    Installment payments and other capitalized expenses
    106,034

    Capitalized interest
    6,274

    Transferred to operating vessels and drydock
    (106,609
    )
    Balance as of December 31, 2016
    $
    137,917

     
     
    Installment payments and other capitalized expenses
    252,977

    Capitalized interest
    4,194

    Transferred to operating vessels and drydock
    (339,712
    )
    Balance as of December 31, 2017
    $
    55,376