Scorpio Tankers Inc. | CIK:0001483934 | 3

  • Filed: 3/23/2018
  • Entity registrant name: Scorpio Tankers Inc. (CIK: 0001483934)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1483934/000148393418000015/0001483934-18-000015-index.htm
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    • ifrs-full:DisclosureOfLeasesExplanatory

    Operating Leases

    Time and Bareboat Chartered-In Vessels
     
    The following table depicts our time or bareboat chartered-in vessel commitments during the year ended December 31, 2017:
     
    Name
     
    Year built
     
    Vessel class
     
    Charter type
     
    Delivery (1)
     
    Charter Expiration
     
    Rate ($/ day)
     
     
    Active as of December 31, 2017
     
    1

    Kraslava
     
    2007
     
    Handymax
     
    Time Charter
     
    January-11
     
    May-18
     
    11,250

    (2) 
    2

    Krisjanis Valdemars
     
    2007
     
    Handymax
     
    Time Charter
     
    February-11
     
    March-18
     
    11,250

    (3) 
    3

    Silent
     
    2007
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    7,500

    (4) 
    4

    Single
     
    2007
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    7,500

    (4) 
    5

    Star I
     
    2007
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    7,500

    (4) 
    6

    Steel
     
    2008
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    6,000

    (5) 
    7

    Sky
     
    2008
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    6,000

    (5) 
    8

    Stone I
     
    2008
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    6,000

    (5) 
    9

    Style
     
    2008
     
    Handymax
     
    Bareboat
     
    January-17
     
    March-19
     
    6,000

    (5) 
    10

    STI Beryl
     
    2013
     
    MR
     
    Bareboat
     
    April-17
     
    April-25
     
    8,800

    (6) 
    11

    STI Le Rocher
     
    2013
     
    MR
     
    Bareboat
     
    April-17
     
    April-25
     
    8,800

    (6) 
    12

    STI Larvotto
     
    2013
     
    MR
     
    Bareboat
     
    April-17
     
    April-25
     
    8,800

    (6) 
    13

    Vukovar
     
    2015
     
    MR
     
    Time Charter
     
    May-15
     
    May-18
     
    17,034

     
    14

    Zefyros
     
    2013
     
    MR
     
    Time Charter
     
    July-16
     
    June-18
     
    13,250

    (7) 
    15

    Gan-Trust
     
    2013
     
    MR
     
    Time Charter
     
    January-13
     
    January-19
     
    13,050

    (8) 
    16

    CPO New Zealand
     
    2011
     
    MR
     
    Time Charter
     
    September-16
     
    September-18
     
    15,250

    (9) 
    17

    CPO Australia
     
    2011
     
    MR
     
    Time Charter
     
    September-16
     
    September-18
     
    15,250

    (9) 
    18

    Ance
     
    2006
     
    MR
     
    Time Charter
     
    October-16
     
    October-18
     
    13,500

    (10) 
    19

    Densa Crocodile
     
    2015
     
    LR2
     
    Time Charter
     
    June-17
     
    July-18
     
    14,750

    (11) 
     
    Time or bareboat charters that expired in 2017
     
    1

    Densa Crocodile
     
    2015
     
    LR2
     
    Time Charter
     
    February-15
     
    January-17
     
    22,600

     
    2

    Miss Mariarosaria
     
    2011
     
    MR
     
    Time Charter
     
    May-15
     
    May-17
     
    16,350

     
    3

    Targale
     
    2007
     
    MR
     
    Time Charter
     
    May-12
     
    May-17
     
    16,200

     
    4

    Hellespont Progress
     
    2006
     
    LR1
     
    Time Charter
     
    March-14
     
    May-17
     
    17,250


    5

    Densa Alligator
     
    2013
     
    LR2
     
    Time Charter
     
    September-13
     
    September-17
     
    14,360

     



    (1)
    Represents delivery date or estimated delivery date.
    (2)
    In February 2017, we entered into a new time charter-in agreement for one year at $11,250 per day effective May 2017. We have an option to extend the charter for an additional year at $13,250 per day.
    (3)
    In February 2017, we entered into a new time charter-in agreement for one year at $11,250 per day effective March 2017. We have an option to extend the charter for an additional year at $13,250 per day.
    (4)
    In December 2016, we entered into an agreement to cancel the time charter agreement for this vessel and enter into a new bareboat charter agreement. The time charter-in contract was cancelled in January 2017 and replaced by the new bareboat contract at a rate of $7,500 per day. The agreement includes a purchase option which can be exercised through December 31, 2018. If the purchase option is not exercised, the bareboat-in agreement will expire on March 31, 2019.
    (5)
    In December 2016, we entered into an agreement to bareboat-in this vessel at a rate of $6,000 per day. The agreement includes a purchase option which can be exercised through December 31, 2018. If the purchase option is not exercised, the bareboat-in agreement will expire on March 31, 2019.
    (6)
    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 and we have the option to purchase this vessel 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 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.
    (7)
    In November 2017, we declared the option to extend the time charter-in agreement for an additional six months at $13,250 per day effective December 2017. We have an option to extend the charter for an additional year at $14,500 per day.
    (8)
    In November 2017, we extended the time charter-in agreement for one year at $13,950 per day effective January 2018. We have an option to extend the charter for an additional year at $15,750 per day.
    (9)
    We have an option to extend the charter for an additional year at $16,000 per day.
    (10)
    In August 2017, we entered into a new time charter-in agreement for one year at $13,500 per day. We have an option to extend the charter for an additional year at $15,000 per day.
    (11)
    In November 2017, we declared the option to extend this time charter for an additional six months at $15,750 per day effective January 2018.


    The undiscounted remaining future minimum lease payments under these arrangements as of December 31, 2017 are $117.6 million. The obligations under these agreements will be repaid as follows:
     
     
    As of December 31,
    In thousands of U.S. dollars
    2017
     
    2016
    Less than 1 year
    $
    52,532

     
    $
    57,018

    1 - 5 years
    42,839

     
    30,933

    5+ years
    22,264

     
    —

    Total
    $
    117,635

     
    $
    87,951


    During the years ended December 31, 2017, 2016 and 2015, our charterhire expense was $75.8 million, $78.9 million and $96.9 million, respectively. These lease payments include payments for the non-lease elements in our time chartered-in arrangements.
    Time Chartered-Out Vessels

    The following table summarizes the terms of our time chartered-out vessels that were in place during the years ended December 31, 2017 and 2016.
     
    Name
     
    Year built
     
    Type
     
    Delivery Date to the Charterer
     
    Charter Expiration
     
    Rate ($/ day)
     
    1

    STI Pimlico
     
    2014
     
    Handymax
     
    February-16
     
    February-19
    (1) 
    $
    18,000

     
    2

    STI Poplar
     
    2014
     
    Handymax
     
    January-16
     
    January-19
    (1) 
    $
    18,000

     
    3

    STI Notting Hill
     
    2015
     
    MR
     
    November-15
     
    November-18
    (2) 
    $
    20,500

     
    4

    STI Westminster
     
    2015
     
    MR
     
    December-15
     
    December-18
    (2) 
    $
    20,500

     
    5

    STI Rose
     
    2015
     
    LR2
     
    February-16
     
    February-19
    (2) 
    $
    28,000

     
    6

    STI Texas City
     
    2014
     
    MR
     
    March-14
     
    April-16
     
    $
    16,000

    (3) 

    (1) Redelivery is plus 30 days or minus 10 days from the expiry date.  
    (2) Redelivery is plus or minus 30 days from the expiry date.
    (3) The charter had a 50% profit sharing provision whereby we received 50% of the vessel's profits above the daily base rate from the charterer.
    Payments received include payments for the non-lease elements in these time chartered-out arrangements.
    The future minimum payments due to us under these non-cancellable leases are set forth below. These minimum payments are shown net of address commissions, which are deducted upon payment.

     
     
     
     
     
    As of December 31,
    In thousands of U.S. dollars
    2017
     
    2016
    Less than 1 year
    $
    35,992

     
    $
    37,472

    1 - 5 years
    2,176

     
    38,168

    5+ years
    —

     
    —

    Total
    $
    38,168

     
    $
    75,640