Scorpio Tankers Inc. | CIK:0001483934 | 3

  • Filed: 3/23/2018
  • Entity registrant name: Scorpio Tankers Inc. (CIK: 0001483934)
  • Generator: Workiva (WebFilings)
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1483934/000148393418000015/0001483934-18-000015-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1483934/000148393418000015/stng-20171231.xml
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  • ifrs-full:DisclosureOfFinancialAssetsExplanatory

    The fair values and carrying values of our financial instruments at December 31, 2017 and 2016, respectively, are shown in the table below.
    Categories of Financial Instruments
     
     
     As of December 31, 2017
     
     As of December 31, 2016
     Amounts in thousands of U.S. dollars
     
    Fair value
    Carrying Value
     
    Fair value
    Carrying Value
    Financial assets
     
     
     
     
     
     
    Cash and cash equivalents (1)
     
    $
    186,462

    $
    186,462

     
    $
    99,887

    $
    99,887

    Restricted cash (2)
     
    11,387

    11,387

     


    Loans and receivables (3)
     
    65,458

    65,458

     
    42,329

    42,329

    Derivatives at fair value through profit or loss (4)
     


     
    116

    116

     
     
     
     
     
     
     
    Financial liabilities
     
     
     
     
     
     
    Accounts payable (5)
     
    $
    13,044

    $
    13,044

     
    $
    9,282

    $
    9,282

    Accrued expenses (5)
     
    32,838

    32,838

     
    23,024

    23,024

    Secured bank loans (6)
     
    1,615,248

    1,615,248

     
    1,466,940

    1,466,940

    Finance lease liability (7)
     
    717,139

    717,139

     


    Unsecured Senior Notes Due 2020 (8)
     
    53,449

    53,750

     
    48,252

    53,750

    Unsecured Senior Notes Due 2017 (8)
     


     
    52,330

    51,750

    Unsecured Senior Notes Due 2019 (8)
     
    58,466

    57,500

     


    Convertible Notes (9)
     
    316,184

    348,500

     
    286,321

    348,500

    (1)
    Cash and cash equivalents are considered Level 1 items as they represent liquid assets with short-term maturities.
    (2)
    Restricted cash are considered Level 1 items due to the liquid nature of these assets.
    (3)
    We consider that the carrying amount of accounts receivable approximate their fair value due to the relative short maturity of these instruments.
    (4)
    The derivative financial instrument at December 31, 2016 consists of the profit or loss agreement relating to Densa Crocodile whereby the profits or losses above or below the daily time charter rate were shared with a third party who neither owned nor operated the vessel. This instrument was recorded at the present value of estimated future cash flows which were derived from observable time charter rates and discounted based on the applicable yield curves to determine the fair value. As such, we classified this liability as a Level 2 fair value measurement. This agreement expired in January 2017.
    (5)
    We consider that the carrying amounts of accounts payable and accrued expenses approximate the fair value due to the relative short maturity of these instruments.
    (6)
    The carrying value of our secured bank loans are measured at amortized cost using the effective interest method. We consider that their carrying value approximates fair value because the interest rates on these instruments change with, or approximate, market interest rates. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $29.9 million and $31.1 million of unamortized deferred financing fees as of December 31, 2017 and 2016, respectively.
    (7)
    The carrying value of our obligations due under finance lease arrangements are measured at amortized cost using the effective interest method. We consider that their carrying value approximates fair value because the interest rates on these instruments change with, or approximate, market interest rates. These amounts are shown net of $1.2 million of unamortized deferred financing fees as of December 31, 2017.
    (8)
    The carrying value of our Unsecured Senior Notes Due 2020 and 2019 are measured at amortized cost using the effective interest method. The carrying values shown in the table are the face value of the notes. These notes are shown net of $0.8 million and $1.5 million of unamortized deferred financing fees, respectively, on our consolidated balance sheet as of December 31, 2017. Our Senior Notes Due 2020 and 2019 are quoted on the New York Stock Exchange under the symbols 'SBNA' and 'SBBC', respectively. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange.
    (9)
    The carrying value of our Convertible Notes shown in the table above is its face value. The liability component of the Convertible Notes has been recorded within Long-term debt on the consolidated balance sheet as of December 31, 2017, net of $2.8 million of unamortized deferred financing fees. The equity component of the Convertible Notes has been recorded within Additional paid-in capital on the consolidated balance sheet, net of $1.9 million of deferred financing fees. We consider its fair value to be a Level 2 measurement.