Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Scorpio Tankers Inc. |
Entity Central Index Key | 0001483934 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 467,219 | $ 593,652 |
Accounts receivable | 56,469 | 69,718 |
Prepaid expenses and other current assets | 15,845 | 15,671 |
Inventories | 8,761 | 8,300 |
Total current assets | 548,294 | 687,341 |
Non-current assets | ||
Vessels and drydock | 3,955,446 | 3,997,789 |
Right-of-use assets | 67,266 | 0 |
Other assets | 97,233 | 75,210 |
Goodwill | 11,539 | 11,539 |
Restricted cash | 12,294 | 12,285 |
Total non-current assets | 4,143,778 | 4,096,823 |
Total assets | 4,692,072 | 4,784,164 |
Current liabilities | ||
Current portion of long-term debt | 295,543 | 297,934 |
Finance lease liabilities | 115,689 | 114,429 |
Current lease liabilities | 20,708 | 0 |
Accounts payable | 15,354 | 11,865 |
Accrued expenses | 29,175 | 22,972 |
Total current liabilities | 476,469 | 447,200 |
Non-current liabilities | ||
Long-term debt | 1,094,910 | 1,192,000 |
Finance lease liability | 1,248,231 | 1,305,952 |
Non-current lease liabilities | 47,364 | 0 |
Total non-current liabilities | 2,390,505 | 2,497,952 |
Total liabilities | 2,866,974 | 2,945,152 |
Shareholders’ equity | ||
Common stock, $0.01 par value per share; 150,000,000 and 75,000,000 shares authorized; 51,615,220 and 51,397,562 issued and outstanding shares as of June 30, 2019 and December 31, 2018, respectively. | 580 | 5,776 |
Additional paid-in capital | 2,657,375 | 2,648,599 |
Treasury shares | (467,057) | (467,056) |
Accumulated deficit(1) | (365,800) | (348,307) |
Total shareholders’ equity | 1,825,098 | 1,839,012 |
Total liabilities and shareholders’ equity | $ 4,692,072 | $ 4,784,164 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - Common stock [Member] - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 51,615,220 | 51,397,562 |
Common stock, shares outstanding (in shares) | 51,615,220 | 51,397,562 |
Consolidated Statements of Inco
Consolidated Statements of Income or Loss - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||
Vessel revenue | $ 346,635 | $ 298,241 |
Operating expenses | ||
Vessel operating costs | (138,152) | (139,904) |
Voyage expenses | (1,622) | (4,372) |
Charterhire | (4,399) | (35,169) |
Depreciation - owned or finance leased vessels | (88,183) | (87,547) |
Depreciation, right-of-use assets | (8,030) | 0 |
Depreciation - right of use assets | (31,240) | (26,972) |
Merger transaction related costs | 0 | (271) |
Total operating expenses | (271,626) | (294,235) |
Operating income | 75,009 | 4,006 |
Other (expense) and income, net | ||
Financial expenses | (96,083) | (88,367) |
Loss on exchange of Convertible Senior Notes | 0 | (16,968) |
Financial income | 5,843 | 730 |
Other expenses, net | (13) | (96) |
Total other expense, net | (90,253) | (104,701) |
Net loss | (15,244) | (100,695) |
Attributable to: | ||
Equity holders of the parent | $ (15,244) | $ (100,695) |
Loss per share | ||
Basic (in USD per share) | $ (0.32) | $ (3.26) |
Diluted (in USD per share) | $ (0.32) | $ (3.26) |
Basic weighted average shares outstanding (in shares) | 48,109,924 | 30,891,470 |
Diluted weighted average shares outstanding (in shares) | 48,109,924 | 30,891,470 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income or Loss - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of comprehensive income [abstract] | ||
Net loss | $ (15,244) | $ (100,695) |
Other comprehensive income / (loss) | 0 | 0 |
Total comprehensive loss | (15,244) | (100,695) |
Attributable to: | ||
Equity holders of the parent | $ (15,244) | $ (100,695) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity $ in Thousands | USD ($) | Share capitalUSD ($)shares | Additional paid-in capitalUSD ($) | Treasury sharesUSD ($) | Accumulated deficitUSD ($) | |
Beginning balance at Dec. 31, 2017 | $ 1,685,301 | $ 3,766 | $ 2,283,591 | $ (443,816) | $ (158,240) | |
Beginning balance (in shares) at Dec. 31, 2017 | shares | 32,650,754 | |||||
Adoption of accounting standards(3) | [1] | 4 | 4 | |||
Net loss | (100,695) | |||||
Net loss for the period | (100,695) | |||||
Issuance of restricted stock, net of forfeitures | 0 | $ 51 | (51) | |||
Issuance of restricted stock, net of forfeitures (in shares) | shares | 512,245 | |||||
Amortization of restricted stock, net of forfeitures | 13,180 | 13,180 | ||||
Dividends paid | [2] | (6,579) | (6,579) | |||
Equity component of issuance of Senior Convertible Notes due 2022 | 34,172 | 34,172 | ||||
Equity issuance costs | 4 | 4 | ||||
Ending balance at Jun. 30, 2018 | 1,625,379 | $ 3,817 | 2,324,309 | (443,816) | (258,931) | |
Ending balance (in shares) at Jun. 30, 2018 | shares | 33,162,999 | |||||
Beginning balance at Dec. 31, 2017 | 1,685,301 | $ 3,766 | 2,283,591 | (443,816) | (158,240) | |
Beginning balance (in shares) at Dec. 31, 2017 | shares | 32,650,754 | |||||
Net loss for the period | 319,600 | |||||
Ending balance at Dec. 31, 2018 | 1,839,012 | $ 5,776 | 2,648,599 | (467,056) | (348,307) | |
Ending balance (in shares) at Dec. 31, 2018 | shares | 51,397,562 | |||||
Adoption of accounting standards(3) | [3] | (2,249) | ||||
Net loss | (15,244) | (15,244) | ||||
Share related to reverse stock split | shares | (62) | |||||
Stock Issued During Period, Shares, Reverse Stock Splits, Value | $ (5,198) | |||||
Increase (Decrease) Reverse stock split | (1) | 5,197 | ||||
Issuance of restricted stock, net of forfeitures | 0 | $ 2 | (2) | |||
Number of other equity instruments forfeited in share-based payment arrangement | shares | (2,500) | |||||
Issuance of restricted stock, net of forfeitures (in shares) | shares | 220,250 | |||||
Amortization of restricted stock, net of forfeitures | 13,860 | 13,860 | ||||
Dividends paid | [2] | (10,279) | (10,279) | |||
Purchase of treasury shares | 1 | 1 | ||||
Purchase Of Treasury Shares, Average Cost Per Share | shares | (30) | |||||
Ending balance at Jun. 30, 2019 | $ 1,825,098 | $ 580 | $ 2,657,375 | $ (467,057) | $ (365,800) | |
Ending balance (in shares) at Jun. 30, 2019 | shares | 51,615,220 | |||||
[1] | Reflects the impact of the adoption of IFRS 15 - Revenue from Contracts with Customers, which was effective for annual periods beginning on January 1, 2018. Refer to Note 1 for further discussion. | |||||
[2] | The Company's policy is to distribute dividends from available retained earnings first and then from additional paid in capital. | |||||
[3] | Reflects the impact of the adoption of IFRS 16 - Leases, which was effective for annual periods beginning on January 1, 2019. Refer to Note 1 for further discussion. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | Jan. 18, 2019 |
Major ordinary share transactions [Member] | Common stock [Member] | |
Reverse stock split of common shares | 0.10 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statements - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net loss | $ (15,244) | $ (100,695) |
Depreciation - owned or finance leased vessels | 88,183 | 87,547 |
Depreciation - right of use assets | 8,030 | 0 |
Amortization of restricted stock | 13,860 | 13,180 |
Amortization of deferred financing fees | 4,088 | 6,191 |
Write-off of deferred financing fees | 275 | 7,035 |
Accretion of Convertible Senior Notes | 6,995 | 6,435 |
Accretion of fair market measurement on debt assumed from merger with NPTI | 1,827 | 1,909 |
Loss on exchange of Convertible Senior Notes | 0 | 16,968 |
Cash flows from (used) in operating activities before changes in assets and liabilities | 108,014 | 38,570 |
Changes in assets and liabilities: | ||
(Increase) / decrease in inventories | (461) | 1,473 |
Decrease in accounts receivable | 13,248 | 15,039 |
(Increase) / decrease in prepaid expenses and other current assets | (175) | 4,620 |
Increase in other assets | (2,807) | (3,576) |
Increase in accounts payable | 1,186 | 2,767 |
Increase / (decrease) in accrued expenses | 2,272 | (6,165) |
Total changes in assets and liabilities | 13,263 | 14,158 |
Net cash inflow from operating activities | 121,277 | 52,728 |
Investing activities | ||
Acquisition of vessels and payments for vessels under construction | 0 | (26,057) |
Drydock, scrubber and BWTS payments (owned and bareboat-in vessels) | (59,688) | (2,136) |
Net cash outflow from investing activities | (59,688) | (28,193) |
Repayments of borrowings, classified as financing activities | 166,755 | 167,491 |
Proceeds from borrowings, classified as financing activities | 0 | 142,025 |
Financing activities | ||
Payments for debt issue costs | 1,288 | 13,473 |
IFRS 16 - lease liability repayments | (7,129) | 0 |
Increase in restricted cash | (9) | (897) |
Repayment of Convertible Senior Notes | (2,266) | 0 |
Equity issuance costs | (295) | (4) |
Dividends paid | (10,279) | (6,579) |
Repurchase of common stock | (1) | 0 |
Net cash outflow from financing activities | (188,022) | (46,419) |
Decrease in cash and cash equivalents | (126,433) | (21,884) |
Cash and cash equivalents at January 1, | 593,652 | 186,462 |
Cash and cash equivalents at June 30, | 467,219 | 164,578 |
Supplemental information: | ||
Interest paid | $ 83,496 | $ 67,855 |
General information and signifi
General information and significant accounting policies | 6 Months Ended |
Jun. 30, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
General information and significant accounting policies | General information and significant accounting policies Company Scorpio Tankers Inc. and its subsidiaries (together “we”, “our” or the “Company”) are engaged in the seaborne transportation of refined petroleum products in the international shipping markets. Scorpio Tankers Inc. was incorporated in the Republic of the Marshall Islands on July 1, 2009. On April 6, 2010, we closed on our initial public offering, and our common stock currently trades on the New York Stock Exchange under the symbol STNG. Our fleet as of June 30, 2019 consisted of 109 owned or finance leased product tankers ( 14 Handymax, 45 MR, 12 LR1 and 38 LR2) and 10 bareboat chartered-in product tankers ( seven Handymax and three MR). Our vessels are commercially managed by Scorpio Commercial Management S.A.M., or SCM, which is majority owned by the Lolli-Ghetti family of which Mr. Emanuele Lauro, our founder, Chairman and Chief Executive Officer, and Mr. Filippo Lauro, our Vice President, are members. SCM’s services include securing employment for the vessels in our fleet, in pools, in the spot market, and on time charters. Our vessels are technically managed by Scorpio Ship Management S.A.M., or SSM, which is majority owned by the Lolli-Ghetti family. SSM facilitates vessel support such as crew, provisions, deck and engine stores, insurance, maintenance and repairs, and other services necessary to operate the vessels such as drydocks and vetting/inspection under a technical management agreement. We also have an administrative services agreement with Scorpio Services Holding Limited, or SSH, which is majority owned by the Lolli-Ghetti family. The administrative services provided under this agreement primarily include accounting, legal compliance, financial, information technology services, and the provision of administrative staff and office space, which are contracted to subsidiaries of SSH. We pay our managers fees for these services and reimburse them for direct or indirect expenses that they incur in providing these services. Basis of accounting The unaudited condensed consolidated financial statements have been presented in United States dollars (“USD” or “$”), which is the functional currency of Scorpio Tankers Inc. and all of its subsidiaries. The unaudited condensed consolidated financial statements for the six months ended June 30, 2019 have been prepared in accordance with International Accounting Standard, or IAS 34, Interim Financial Statements , as issued by the International Accounting Standards Board, or IASB, using the same accounting policies as adopted in the preparation of the consolidated financial statements for the year ended December 31, 2018. These unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards or IFRS. Reverse stock split On January 18, 2019, the Company effected a one-for-ten reverse stock split. All share and per share information has been retroactively adjusted to reflect the reverse stock split. The par value was not adjusted as a result of the reverse stock split. Going concern The unaudited condensed consolidated financial statements have been prepared in accordance with the going concern basis of accounting as described further in the "Liquidity risk" section of Note 18. Adoption of new and amended IFRS and International Financial Reporting Interpretations Committee interpretations from January 1, 2019 Standards and interpretations adopted during the six months ended June 30, 2018 IFRS 15 - Revenue from Contracts with Customers, was issued by the IASB on May 28, 2014. IFRS 15 - Revenue from Contracts with Customers amends the existing accounting standards for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products or services are transferred to customers. IFRS 15 - Revenue from Contracts with Customers applies to an entity’s first annual IFRS financial statements for a period beginning on or after January 1, 2018. The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (the “modified retrospective method”). We have applied the modified retrospective method upon the date of transition. Our revenue is primarily generated from time charters, participation in pooling arrangements and in the spot market. Of these revenue streams, revenue generated in the spot market is within the scope of IFRS 15 - Revenue from Contracts with Customers . Revenue generated from time charters and from pooling arrangements are within the scope of IFRS 16, Leases , which is discussed further below. For vessels operating in the spot market, we are recognizing revenue ‘over time’ as the customer (i.e. the charterer) is simultaneously receiving and consuming the benefits of the vessel. Under IFRS 15 - Revenue from Contracts with Customers , the time period over which revenue is recognized has changed from the previous accounting standard. Prior to the commencement of IFRS 15 - Revenue from Contracts with Customers , revenue from voyage charter agreements was recognized as voyage revenue on a pro-rata basis over the duration of the voyage on a discharge to discharge basis. In the application of this policy, we did not begin recognizing revenue until (i) the amount of revenue could be measured reliably, (ii) it was probable that the economic benefits associated with the transaction would flow to the entity, (iii) the transactions stage of completion at the balance sheet date could be measured reliably, and (iv) the costs incurred and the costs to complete the transaction could be measured reliably. However, under IFRS 15 - Revenue from Contracts with Customers , the performance obligation has been identified as the transportation of cargo from one point to another. Therefore, in a spot market voyage under IFRS 15 - Revenue from Contracts with Customers , revenue is now recognized on a pro-rata basis commencing on the date that the cargo is loaded and concluding on the date of discharge. Moreover, costs incurred in the fulfillment of a voyage charter are deferred and amortized over the course of the charter if they (i) relate directly to such charter, (ii) generate or enhance resources to be used in meeting obligations under the charter and (iii) are expected to be recovered. At December 31, 2017, we had two vessels operating in the spot market and the cumulative effect of the application of this standard under the modified retrospective method resulted in a $3,888 reduction in the opening balance of accumulated deficit on January 1, 2018. Standards and interpretations adopted during the six months ended June 30, 2019 IFRS 16 - Leases, was issued by the IASB on January 13, 2016. IFRS 16 - Leases applies to an entity's first annual IFRS financial statements for a period beginning on or after January 1, 2019. IFRS 16 - Leases amends the definition of what constitutes a lease to be a contract that conveys the right to control the use of an identified asset if the lessee has both (i) the right to obtain substantially all of the economic benefits from the use of the identified asset and (ii) the right to direct the use of the identified asset throughout the period of use. We have determined that our existing pool and time charter-out arrangements meet the definition of leases under IFRS 16 - Leases , with the Company as lessor, on the basis that the pool or charterer enters into transportation contracts with their customers, and thereby enjoys the economic benefits derived from such arrangements. Furthermore, the pool or charterer can direct the use of a vessel (subject to certain limitations in the pool or charter agreement) throughout the period of the contract. Moreover, under IFRS 16 - Leases , we are also required to identify the lease and non-lease components of revenue and account for each component in accordance with the applicable accounting standard. In time charter-out or pool arrangements, we have determined that the lease component is the vessel and the non-lease component is the technical management services provided to operate the vessel. Each component is quantified on the basis of the relative stand-alone price of each lease component; and on the aggregate stand-alone price of the non-lease components. These components are accounted for as follows: • All fixed lease revenue earned under these arrangements is recognized on a straight-line basis over the term of the lease. • Lease revenue earned under our pool arrangements is recognized as it is earned, since it is 100% variable. • The non-lease component is accounted for as services revenue under IFRS 15 - Revenue from Contracts with Customers . This revenue is recognized “over time” as the customer (i.e. the pool or the charterer) is simultaneously receiving and consuming the benefits of the service. IFRS 16 - Leases also amends the existing accounting standards to require lessees to recognize, on a discounted basis, the rights and obligations created by the commitment to lease assets on the balance sheet, unless the term of the lease is 12 months or less. Accordingly, the standard resulted in the recognition of right-of-use assets and corresponding liabilities, on the basis of the discounted remaining future minimum lease payments, relating to the existing bareboat chartered-in vessel commitments for three bareboat chartered-in vessels, which are scheduled to expire in April 2025. Upon transition, a lessee shall apply IFRS 16- Leases to its leases either retrospectively to each prior reporting period presented (the ‘full retrospective approach’) or retrospectively with the cumulative effect of initially applying IFRS 16 - Leases recognized at the date of initial application (the ‘modified retrospective approach’). We applied the modified retrospective approach upon transition. The impact of the application of this standard on the opening balance sheet as of January 1, 2019 was the recognition of a $48.5 million right of use asset, a $50.7 million operating lease liability and a $2.2 million reduction in retained earnings relating to these three vessels. |
Prepaid expenses and other asse
Prepaid expenses and other assets | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Prepaid expenses and other assets | Prepaid expenses and other assets The following is a table summarizing our prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 SSM - prepaid vessel operating expenses $ 2,712 $ 2,461 Prepaid expenses from related parties 2,712 2,461 Prepaid interest 6,535 6,870 Prepaid insurance 4,373 4,449 Third party - prepaid vessel operating expenses 651 712 Other prepaid expenses 1,574 1,179 $ 15,845 $ 15,671 |
Accounts receivable
Accounts receivable | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accounts receivable | Accounts receivable The following is a table summarizing our accounts receivable as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio MR Pool Limited $ 30,800 $ 33,288 Scorpio LR2 Pool Limited 13,720 24,563 Scorpio LR1 Pool Limited 3,895 3,705 Scorpio Handymax Tanker Pool Limited 3,785 4,559 Scorpio Aframax Pool Limited — 63 SCM 1,220 2,511 Receivables from the related parties 53,420 68,689 Insurance receivables 1,499 204 Freight and time charter receivables 237 22 Receivables from Navig8 Group Pools 72 17 Other receivables 1,241 786 $ 56,469 $ 69,718 Scorpio MR Pool Limited, Scorpio LR2 Pool Limited, Scorpio Handymax Tanker Pool Limited, Scorpio LR1 Pool Limited and Scorpio Aframax Pool Limited or the Scorpio Pools, are related parties, as described in Note 11. Amounts due from the Scorpio Pools relate to income receivables and receivables for working capital contributions which are expected to be collected within one year. Receivables from SCM primarily represent amounts due from the agreement to reimburse a portion of the commissions that SCM charges the Company’s vessels (as described in Note 11) to effectively reduce such commissions to 0.85% of gross revenue per charter fixture. This agreement was effective from September 1, 2018 and ended on June 1, 2019 and the amount due at June 30, 2019 , represents the reimbursement earned from April 1, 2019 through June 1, 2019. Insurance receivables primarily represent amounts collectible on our insurance policies in relation to vessel repairs. Freight and time charter receivables represent amounts collectible from customers for our vessels operating on time charter or in the spot market. Receivables from Navig8 Group Pools represent amounts due from the Navig8 LR8 and Alpha8 pools for certain vessels that were acquired from Navig8 Product Tankers Inc. or NPTI, which operated in such pools during the year ended December 31, 2017. We consider that the carrying amount of accounts receivable approximates their fair value due to the short maturity thereof. Accounts receivable are non-interest bearing. At June 30, 2019 and December 31, 2018 , no material receivable balances were either past due or impaired. |
Vessels
Vessels | 6 Months Ended |
Jun. 30, 2019 | |
Property, plant and equipment [abstract] | |
Vessels | Vessels Operating vessels and drydock The following is a rollforward of the activity within Vessels and drydock from January 1, 2019 through June 30, 2019 . Amounts capitalized as part of the Vessel are depreciated over the remaining useful life of the vessel. Amounts capitalized as part of Drydock are depreciated until each vessel's next scheduled drydock. In thousands of U.S. dollars Vessels Drydock Total Cost As of January 1, 2019 4,469,102 86,352 4,555,454 Additions (1) 35,279 10,561 45,840 As of June 30, 2019 4,504,381 96,913 4,601,294 Accumulated depreciation As of January 1, 2019 (506,443 ) (51,222 ) (557,665 ) Charge for the period (79,226 ) (8,957 ) (88,183 ) As of June 30, 2019 (585,669 ) (60,179 ) (645,848 ) Net book value As of June 30, 2019 $ 3,918,712 $ 36,734 $ 3,955,446 Net book value As of December 31, 2018 $ 3,962,659 $ 35,130 $ 3,997,789 (1) Additions during the six months ended June 30, 2019 primarily relates to the various costs relating to BWTS, scrubber and drydock installations. The following is a summary of the cost types that were capitalized during the six months ended June 30, 2019: In thousands of U.S. dollars Drydock Notional component of scrubber Total drydock additions Scrubber BWTS Other equipment Capitalized interest Total vessel additions Handymax $ 2,746 $ — $ 2,746 $ — $ 4,091 $ 584 $ 136 $ 4,811 MR 5,901 450 6,351 10,604 2,975 1,495 485 15,559 LR1 — — — 319 — 296 67 682 LR2 864 600 1,464 12,052 261 1,350 564 14,227 $ 9,511 $ 1,050 $ 10,561 $ 22,975 $ 7,327 $ 3,725 $ 1,252 $ 35,279 Ballast Water Treatment Systems In July 2018, we executed an agreement to purchase 55 ballast water treatment systems, or BWTS, from an unaffiliated third-party supplier for total consideration of $36.2 million . These systems are expected to be installed from 2018 to 2023, as each respective vessel under the agreement is due for its International Oil Pollution Prevention, or IOPP, renewal survey. Costs capitalized for these systems include the cost of the base equipment that the Company has contracted to purchase in addition to directly attributable installation costs. Costs capitalized during the six months ended June 30, 2019 include costs incurred for systems that were installed during this period, and installation costs incurred in advance of installations that are expected to occur in subsequent periods. We estimate the useful life of these systems to be for the duration of each vessel's remaining useful life and are depreciating the equipment and related installation costs on this basis. Scrubbers We have commenced a program to retrofit the substantial majority of our vessels with exhaust gas cleaning systems, or scrubbers. The scrubbers will enable our vessels to use high sulfur fuel oil, which is less expensive than low sulfur fuel oil, in certain parts of the world. From August 2018 through November 2018, we entered into agreements with two separate unaffiliated third party suppliers to retrofit a total of 77 of our vessels with such systems for total consideration of $116.1 million (which excludes installation costs). In June 2019, we exercised options with one of these suppliers to retrofit an additional 14 of our vessels with such systems for total consideration of $20.3 million (which excludes installation costs). These systems are expected to be installed throughout 2019 and 2020. Costs capitalized for these systems include the cost of the base equipment that the Company has contracted to purchase in addition to directly attributable installation costs. Costs capitalized during the six months ended June 30, 2019 include costs incurred for systems that were installed during this period, and installation costs incurred in advance of installations that are expected to occur in subsequent periods. We estimate the useful life of these systems to be for the duration of each vessel's remaining useful life, with the exception of approximately 10% of the equipment cost, which is estimated to require replacement at each vessel's next scheduled drydock. This amount has been allocated as a notional component upon installation. The carrying value of the equipment, related installation costs, and notional component will be depreciated on this basis. The following table is a timeline of future expected payments and dates for our commitments to purchase scrubbers and BWTS as of June 30, 2019 (1) : As of June 30, In thousands of U.S. dollars 2019 Less than 1 month $ 24,059 1-3 months 29,146 3 months to 1 year 55,838 1-5 years 12,644 5+ years — Total $ 121,687 (1) These amounts are subject to change as installation times are finalized. The amounts presented exclude installation costs. Carrying values of vessels At each balance sheet date, we review the carrying amounts of our vessels and related drydock costs to determine if there is any indication that those vessels and related drydock costs have suffered an impairment loss. If such indication exists, the recoverable amount of the vessels and related drydock costs is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use. As part of this evaluation, we consider certain indicators of potential impairment, such as market conditions including forecast time charter rates and values for second hand product tankers, discounted projected vessel operating cash flows, and the Company’s overall business plans. At June 30, 2019, we reviewed the carrying amount of our vessels to determine whether there was an indication that these assets had suffered an impairment. First, we compared the carrying amount of our vessels to their fair values less costs to sell (determined by taking into consideration two independent broker valuations). If the carrying amount of our vessels was greater than their fair values less costs to sell, we prepared a value in use calculation where we estimated each vessel’s future cash flows. These estimates were primarily based on (i) a combination of the latest forecast, published time charter rates for the next three years and a 2.33% growth rate (which is based on published historical and forecast inflation rates) in freight rates in each period thereafter and (ii) our best estimate of vessel operating expenses and drydock costs, which are based on our most recent forecasts for the next three years and a 2.33% growth rate in each period thereafter. These cash flows were then discounted to their present value using a pre-tax discount rate of 7.54% . At June 30, 2019, our operating fleet consisted of 109 owned or finance leased vessels. Value in use calculations were performed on all 109 owned or finance leased vessels in operation which resulted in no instances where the present value of the operating cash flows was less than the carrying value. Therefore, no impairment was recorded. The impairment test that we conduct is most sensitive to variances in the discount rate and future time charter rates. Based on the sensitivity analysis performed for June 30, 2019, a 1.0% increase in the discount rate or a 5.0% decrease in forecasted time charter rates would no t result in an impairment charge. Capitalized interest In accordance with IAS 23 - Borrowing Costs, applicable interest costs are capitalized during the period that vessels that are having BWTS and/or scrubber installations. For the six months ended June 30, 2019 , we capitalized interest expense for the respective vessels of $1.3 million . The annualized capitalization rate used to determine the amount of borrowing costs eligible for capitalization was 6.47% for the six months ended June 30, 2019 . We cease capitalizing interest when the vessels reach the location and condition necessary to operate in the manner intended by management. |
Other non-current assets
Other non-current assets | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other non-current assets | Other non-current assets As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio LR2 Pool Ltd. pool working capital contributions (1) $ 32,300 $ 31,450 Scorpio Handymax Tanker Pool Ltd. pool working capital contributions (2) 6,794 4,923 Scorpio LR1 Pool Ltd. pool working capital contributions (1) 6,600 6,600 Working capital contributions to Scorpio Pools 45,694 42,973 Deposits for scrubbers (3) 25,080 12,221 Deposits for BWTS (4) 15,356 6,365 Seller's credit on lease financed vessels (5) 9,352 9,087 Investment in BWTS supplier (4) 1,751 1,751 Deferred drydock costs on bareboat chartered-in vessels (6) — 2,813 $ 97,233 $ 75,210 (1) Upon entrance into the Scorpio LR2 and LR1 Pools, all vessels are required to make initial working capital contributions of both cash and bunkers. Initial working capital contributions are repaid, without interest, upon a vessel’s exit from the pool. Bunkers on board a vessel exiting the pool are credited against such repayment at the actual invoice price of the bunkers. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within Other Assets on the unaudited condensed consolidated balance sheets. For time chartered-in vessels we classify the amounts as current (within accounts receivable) or non-current (within Other Assets) according to the expiration of the contract. (2) Upon entrance into the Scorpio Handymax Tanker Pool, all vessels are required to make initial working capital contributions of both cash and bunkers. Initial working capital contributions are repaid, without interest, upon a vessel's exit from each pool no later than six months after the exit date. Bunkers on board a vessel exiting the pool are credited against such repayment at the actual invoice price of the bunkers. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within other assets on the unaudited condensed consolidated balance sheets. For time chartered-in vessels we classify the amounts as current (within Accounts Receivable) or non-current (within Other Assets) according to the expiration of the contract. (3) From August 2018 through November 2018, we entered into agreements with two separate suppliers to retrofit a total of 77 of our vessels with scrubbers for total consideration of $116.1 million (which excludes installation costs). In June 2019, we exercised options with one of these suppliers to retrofit an additional 14 of our vessels with such systems for total consideration of $20.3 million . These scrubbers are expected to be installed throughout 2019 and 2020. Deposits paid for these systems are reflected as investing cash flows within the unaudited condensed consolidated statement of cash flows. (4) In July 2018, we executed an agreement to purchase 55 BWTS from an unaffiliated third party supplier for total consideration of $36.2 million . These systems are expected to be installed between 2018 and 2023, as each respective vessel under the agreement is due for its IOPP renewal survey. Upon entry into this agreement, we also obtained a minority equity interest in this supplier for no additional consideration. We have determined that of the total consideration of $36.2 million , $1.8 million is attributable to the minority equity interest, which was recorded as a financial asset under IFRS 9 in 2018 upon the payment of the initial deposits. Aggregate deposits of $10.2 million were made during the six months ended June 30, 2019. Deposits paid for these systems are reflected as investing cash flows within the unaudited condensed consolidated statement of cash flows. Under the terms of the agreement, we were granted a put option, exercisable after one year following the date of the agreement, whereby we can put the shares back to the supplier at a predetermined price. The supplier was also granted a call option, exercisable two years following the date of the agreement, whereby it can buy the shares back from us at a predetermined price, which is greater than the strike price of the put option. Given that the value of this investment is contractually limited to the strike prices set forth in these options, the value of the investment of $1.8 million has remained unchanged since December 31, 2018. The difference in the aggregate value of the investment, based on the spread between the exercise prices of the put and call options, is $0.6 million . We consider this value to be a Level 3 fair value measurement, as this supplier is a private company, and the value has been determined based on unobservable market data (i.e. the proceeds that we would receive if we exercised our put option in full). (5) The seller's credit on lease financed vessels represents the present value of the deposits of $4.35 million per vessel ( $13.1 million in aggregate) that was retained by the buyer as part of the sale and operating leasebacks of STI Beryl , STI Le Rocher and STI Larvotto . This deposit 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. The present value of this deposit has been calculated based on the interest rate that is implied in the lease, and the carrying value will accrete over the life of the lease, through interest income, until expiration. $0.3 million and $0.3 million was recorded as interest income as part of these agreements during the six months ended June 30, 2019 and 2018, respectively. (6) Amount relates to drydock costs capitalized on bareboat chartered-in vessels that were previously accounted for as operating leases. $2.6 million of this amount was reclassified to 'Right to use assets' upon the adoption of IFRS - Leases as described in Note 15. The remaining difference was fully amortized during the six months ended June 30, 2019 . |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Restricted Cash | Restricted cash Restricted cash for the six months ended June 30, 2019 primarily represents debt service reserve accounts that must be maintained as part of the terms and conditions of our 2017 Credit Facility, Citibank/K-Sure Credit Facility, ABN AMRO/K-Sure Credit Facility, and the lease financing arrangements with CMB Financial Leasing Co. Ltd and Bank of Communications Financial Leasing (LR2s). The funds in these accounts will be applied against the principal balance of these facilities upon maturity. |
Accounts payable
Accounts payable | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accounts payable | Accounts payable The following table depicts the components of our accounts payable as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio Ship Management S.A.M. (SSM) $ 3,868 $ 545 Scorpio Handymax Tanker Pool Limited 384 12 Scorpio Services Holding Limited (SSH) 360 409 Scorpio LR1 Pool Limited 131 51 Scorpio Commercial Management S.A.M. (SCM) 81 389 Scorpio LR2 Pool Limited 23 2 Amounts due to a port agent - related party 20 62 Accounts payable to related parties 4,867 1,470 Suppliers 10,487 10,395 $ 15,354 $ 11,865 The majority of accounts payable is settled with a cash payment within 90 days . No interest is charged on accounts payable. We consider that the carrying amount of accounts payable approximates fair value. The increase in amounts due to SSM from December 31, 2018 to June 30, 2019 relates to the timing of payments to suppliers. The balance in suppliers as of June 30, 2019 and December 31, 2018 also includes amounts due to suppliers for costs that have been capitalized as part of each vessel's drydock, scrubber installation or BWTS installation. The payments of these costs are reflected as investing cash outflows within the unaudited condensed consolidated statement of cash flows. $2.3 million of the aggregate change in accounts payable from December 31, 2018 to June 30, 2019 relates to increases in amounts due to suppliers for drydock, scrubber installation or BWTS installation. |
Accrued expenses
Accrued expenses | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accrued expenses | Accrued expenses The following table depicts the components of our accrued expenses as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Accrued expenses to a related party port agent $ 331 $ 398 Accrued expenses to SSM 88 287 Accrued expenses to Scorpio MR Pool Limited 54 — Accrued expenses to Scorpio LR1 Pool Limited 8 — Accrued expenses to Scorpio LR2 Pool Limited 3 — Accrued expenses to SCM 2 — Accrued expenses to Scorpio Handymax Tanker Pool Limited 1 — Accrued expenses to related parties 487 685 Suppliers 12,854 9,147 Accrued interest 9,401 9,202 Accrued short-term employee benefits 6,102 2,430 Other accrued expenses 331 1,508 $ 29,175 $ 22,972 The balance in suppliers as of June 30, 2019 and December 31, 2018 also includes amounts due to suppliers for costs that have been capitalized as part of each vessel's drydock, scrubber installation or BWTS installation. The payments of these costs are reflected as investing cash outflows within the unaudited condensed consolidated statement of cash flows. $5.7 million of the aggregate change in accrued expenses from December 31, 2018 to June 30, 2019 relates to increases in amounts due to suppliers for drydock, scrubber installation or BWTS installation. |
Current and long-term debt
Current and long-term debt | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Current and long-term debt | Current and long-term debt The following is a roll forward of the activity within debt (current and non-current), by facility, for the six months ended June 30, 2019 : Activity Balance as of June 30, 2019 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2018 Drawdowns Repayments Other Activity (1) Carrying Value as of June 30, 2019 Current Non-Current KEXIM Credit Facility $ 299,300 $ — $ (16,825 ) $ — $ 282,475 $ 33,650 $ 248,825 ABN AMRO Credit Facility 100,508 — (4,278 ) — 96,230 8,553 87,677 ING Credit Facility 144,176 — (6,368 ) — 137,808 12,738 125,070 2018 NIBC Credit Facility 34,851 — (1,617 ) — 33,234 3,230 30,004 2017 Credit Facility 144,765 — (6,632 ) — 138,133 13,266 124,867 Credit Agricole Credit Facility 96,211 — (4,283 ) 416 92,344 7,768 84,576 ABN / K-Sure Credit Facility 46,832 — (1,925 ) 376 45,283 3,123 42,160 Citibank / K-Sure Credit Facility 97,609 — (4,208 ) 957 94,358 6,564 87,794 ABN / SEB Credit Facility 114,825 — (5,750 ) — 109,075 11,500 97,575 Ocean Yield Lease Financing 158,757 — (5,246 ) 97 153,608 10,696 142,912 CMBFL Lease Financing 61,198 — (2,454 ) 93 58,837 4,729 54,108 BCFL Lease Financing (LR2s) 97,454 — (3,737 ) 289 94,006 7,434 86,572 CSSC Lease Financing 251,832 — (8,655 ) (401 ) 242,776 18,088 224,688 BCFL Lease Financing (MRs) 98,831 — (5,408 ) — 93,423 11,391 82,032 2018 CMBFL Lease Financing 136,543 — (5,058 ) — 131,485 10,113 121,372 $116.0 Million Lease Financing 112,674 — (3,243 ) — 109,431 6,892 102,539 AVIC Lease Financing 139,103 — (5,896 ) — 133,207 11,794 121,413 China Huarong Lease Financing 137,250 — (6,750 ) — 130,500 13,500 117,000 $157.5 Million Lease Financing 152,086 — (7,072 ) — 145,014 14,142 130,872 COSCO Lease Financing 84,150 — (3,850 ) — 80,300 7,700 72,600 IFRS 16 - Leases - Three MR — 50,715 (3,345 ) 293 47,663 7,046 40,617 IFRS 16 - Leases - Seven Handymax — 24,194 (3,784 ) — 20,410 13,662 6,748 Unsecured Senior Notes Due 2020 53,750 — — — 53,750 53,750 — Unsecured Senior Notes Due 2019 57,500 — (57,500 ) — — — — Convertible Senior Notes due 2019 142,180 — (2,266 ) 2,794 142,708 142,708 — Convertible Senior Notes due 2022 171,469 — — 4,201 175,670 — 175,670 $ 2,933,854 $ 74,909 $ (176,150 ) $ 9,115 $ 2,841,728 $ 434,037 $ 2,407,691 Less: deferred financing fees (23,539 ) (107 ) — 4,363 (19,283 ) (2,097 ) (17,186 ) Total $ 2,910,315 $ 74,802 $ (176,150 ) $ 13,478 $ 2,822,445 $ 431,940 $ 2,390,505 (1) Relates to non-cash accretion or amortization of (i) debt or lease obligations assumed as part of the merger with Navig8 Product Tankers Inc., which were recorded at fair value on the closing dates, (ii) accretion of our Convertible Senior Notes due 2019 and Convertible Senior Notes due 2022 and (iii) amortization and write-offs of deferred financing fees. Interest expense on all of our borrowings that has been incurred and is unpaid as of June 30, 2019 is accrued for within Accrued Expenses (see Note 8). We were in compliance with all of the financial covenants set forth under the above borrowing arrangements as of June 30, 2019 . Unsecured debt Convertible Senior Notes Due 2019 In March 2019, we repurchased $2.29 million face value of our Convertible Notes due 2019 at an average price of $990.00 per $1,000 principal amount, or $2.27 million . The conversion rate of our Convertible Senior Notes due 2019 is subject to change upon the issuance of a dividend. The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2019. Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 10.1110 June 5, 2019 $ 0.10 10.1494 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2019 The carrying values of the liability component of the Convertible Senior Notes due 2019 as of June 30, 2019 and December 31, 2018 , were $142.7 million and $142.2 million , respectively. We incurred $1.7 million of coupon interest and $2.8 million of non-cash accretion on our Convertible Senior Notes due 2019 during the six months ended June 30, 2019 . We were in compliance with the covenants related to the Convertible Senior Notes due 2019 as of June 30, 2019 and December 31, 2018 . On July 1, 2019, we repaid the $142.7 million due at maturity. Convertible Senior Notes due 2022 The conversion rate of our Convertible Senior Notes due 2022 is subject to change upon the issuance of a dividend. The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2022: Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 25.4799 June 5, 2019 $ 0.10 25.5767 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2022. The carrying value of the liability component of the Convertible Senior Notes due 2022 as of June 30, 2019 and December 31, 2018 , were $175.7 million and $ 171.5 million , respectively. We incurred $3.1 million of coupon interest and $4.2 million of non-cash accretion during the six months ended June 30, 2019 . We were in compliance with the covenants related to the Convertible Senior Notes due 2022 as of June 30, 2019 and December 31, 2018 . |
Common shares
Common shares | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Common shares | Common shares In February 2019, the Company's Board of Directors approved the reloading of the Plan, and reserved an additional 86,977 common shares, par value $0.01 per share, of the Company for issuance pursuant to the Plan. 2013 Equity Incentive Plan, or the Plan In June 2019, we issued 112,750 shares of restricted stock to our employees and 107,500 shares to SSH employees for no cash consideration pursuant to the Plan. The share price on the issuance date was $24.93 per share. The vesting schedule of the restricted stock issued is (i) one-third of the shares vest on June 6, 2022, (ii) one-third of the shares vest on June 5, 2023, and (iii) one-third of the shares vest on June 4, 2024. The following is a summary of activity for awards of restricted stock that have been granted under the Plan during the six months ended June 30, 2019 . Number of Shares Weighted Average Grant Date Fair Value Outstanding and non-vested, December 31, 2018 3,359,887 $ 30.05 Granted 220,250 24.93 Vested (199,788 ) 77.45 Forfeited (2,500 ) 48.07 Outstanding and non-vested, June 30, 2019 3,377,849 $ 26.89 As of June 30, 2019 , there were 3,377,849 unvested shares of restricted stock outstanding. Assuming that all the restricted stock will vest, the stock compensation expense in future periods, including that related to restricted stock issued in prior periods will be: In thousands of U.S. dollars Employees Directors Total For the period July 1, 2019 through December 31, 2019 $ 12,213 $ 549 $ 12,762 For the year ending December 31, 2020 19,918 539 20,457 For the year ending December 31, 2021 12,870 119 12,989 For the year ending December 31, 2022 5,940 — 5,940 For the year ending December 31, 2023 1,799 — 1,799 For the year ending December 31, 2024 157 — 157 $ 52,897 $ 1,207 $ 54,104 Dividend Payments In February 2019, our Board of Directors declared a quarterly cash dividend of $0.10 per common share, which was paid on March 28, 2019 to all shareholders of record as of March 13, 2019. In May 2019, our Board of Directors declared a quarterly cash dividend of $0.10 per share, which was paid on June 27, 2019 to all shareholders of record as of June 5, 2019. Securities Repurchase Program In May 2015, our Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of our common stock and bonds, the latter of which consists of our (i) Convertible Senior Notes due 2019, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Convertible Senior Notes due 2022, which were issued in May and July 2018. In March 2019, we repurchased $2.29 million face value of our Convertible Notes due 2019 at an average price of $990.00 per $1,000 principal amount, or $2.27 million . During the six months ended June 30, 2019 , we purchased an aggregate of 30 of our common shares that are being held as treasury shares at an average price of $17.10 per share. We had $121.6 million remaining under our Securities Repurchase Program as of June 30, 2019 . We expect to repurchase any securities in the open market, at times and prices that are considered to be appropriate, but we are not obligated under the terms of the program to repurchase any securities. There were 6,349,324 and 6,349,294 common shares held in treasury at June 30, 2019 and December 31, 2018 , respectively. Shares outstanding As of June 30, 2019 , we had 51,615,220 common shares outstanding. These shares provide the holders with rights to dividends and voting rights. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party [Abstract] | |
Related party transactions | Related party transactions Transactions with entities controlled by the Lolli-Ghetti family (herein referred to as related party affiliates) in the unaudited condensed consolidated statements of income or loss and balance sheets are as follows: For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Pool revenue (1) Scorpio LR2 Pool Limited $ 131,945 $ 90,689 Scorpio MR Pool Limited 123,427 117,172 Scorpio Handymax Tanker Pool Limited 51,916 41,803 Scorpio LR1 Pool Limited 35,130 22,721 Voyage expenses (2) (192 ) (805 ) Vessel operating costs (3) (15,908 ) (17,044 ) Administrative expenses (4) (6,315 ) (6,290 ) (1) These transactions relate to revenue earned in the Scorpio Pools. The Scorpio Pools are related party affiliates. When our vessels are in the Scorpio Pools, SCM, the pool manager, charges fees of $300 per vessel per day with respect to our LR1/Panamax and Aframax vessels, $250 per vessel per day with respect to our LR2 vessels, and $325 per vessel per day with respect to each of our Handymax and MR vessels, plus a commission of 1.50% on gross revenue per charter fixture. These are the same fees that SCM charges other vessels in these pools, including third party owned vessels. In September 2018, we entered into an agreement with SCM whereby SCM reimbursed a portion of the commissions that SCM charges the Company’s vessels to effectively reduce such to 0.85% of gross revenue per charter fixture, effective from September 1, 2018 and ending on June 1, 2019. (2) Related party expenditures included within voyage expenses in the unaudited condensed consolidated statements of income or loss consist of the following: ◦ Expenses due to SCM, a related party affiliate, for commissions related to the commercial management services provided by SCM under the commercial management agreement for vessels that are not in one of the Scorpio Pools. SCM’s services include securing employment, in the spot market and on time charters, for our vessels. When not in one of the Scorpio Pools, each vessel pays (i) flat fees of $250 per day for LR1/Panamax and LR2/Aframax vessels and $300 per day for Handymax and MR vessels and (ii) commissions of 1.25% of their gross revenue per charter fixture. These expenses are included in voyage expenses in the unaudited condensed consolidated statements of income or loss. In September 2018, we entered into an agreement with SCM whereby SCM reimbursed a portion of the commissions that SCM charges the Company’s vessels to effectively reduce such to 0.85% of gross revenue per charter fixture, effective from September 1, 2018 and ending on June 1, 2019. • No voyage expenses were charged by a related party port agent during the six months ended June 30, 2019 . Voyage expenses of $25,747 were charged by a related party port agent during the six months ended June 30, 2018 . SSH has a majority equity interest in a port agent that provides supply and logistical services for vessels operating in its regions. (3) Related party expenditures included within vessel operating costs in the unaudited condensed consolidated statements of income or loss consist of the following: • Technical management fees of $15.0 million and $14.8 million charged by SSM, a related party affiliate, during the six months ended June 30, 2019 and 2018 , respectively. SSM’s services include day-to-day vessel operations, performing general maintenance, monitoring regulatory and classification society compliance, customer vetting procedures, supervising the maintenance and general efficiency of vessels, arranging the hiring of qualified officers and crew, arranging and supervising drydocking and repairs, purchasing supplies, spare parts and new equipment for vessels, appointing supervisors and technical consultants, and providing technical support. SSM administers the payment of salaries to our crew on our behalf. The crew wages that were administered by SSM (and disbursed through related party subcontractors of SSM) were $62.5 million and $63.3 million during the six months ended June 30, 2019 and 2018, respectively. SSM's fixed annual technical management fee is $175,000 per vessel plus certain itemized expenses in the technical management agreement. • Insurance related expenses of $2.0 million incurred through a related party insurance broker during the six months ended June 30, 2018 . The amounts recorded reflect the amortization of the policy premiums, which are paid directly to the broker, who then remits the premiums to the underwriters. In 2016, an Executive Officer of the Company acquired a minority interest, which in 2018 increased to a majority interest, in an insurance broker which arranges hull and machinery and war risk insurance for certain of our owned and finance leased vessels. This broker has arranged such policies for the Company since 2010 and the extent of the coverage and the manner in which the policies are priced did not change as a result of this transaction. Accordingly, all amounts charged by this insurance broker during the six months ended June 30, 2018 were on an arms-length basis. In September 2018, the Executive Officer disposed of his interest in the insurance broker in its entirety to a third party not affiliated with the Company. • Vessel operating expenses of $0.9 million and $0.3 million charged by a related party port agent during the six months ended June 30, 2019 and 2018 , respectively. SSH has a majority equity interest in a port agent that provides supply and logistical services for vessels operating in its regions. (4) We have an Amended Administrative Services Agreement with SSH for the provision of administrative staff, office space, and administrative services, including accounting, legal compliance, financial and information technology services. SSH is a related party to us. We reimburse SSH for direct or indirect expenses that are incurred on our behalf. SSH also arranges vessel sales and purchases for us. The services provided to us by SSH may be sub-contracted to other entities within the Scorpio group of companies, or Scorpio. The expenses incurred under this agreement were as follows, and were recorded in general and administrative expenses in the unaudited condensed consolidated statement of income or loss. • The expense for the six months ended June 30, 2019 of $6.3 million included (i) administrative fees of $5.5 million charged by SSH, (ii) restricted stock amortization of $0.6 million , which relates to the issuance of an aggregate of 221,900 shares of restricted stock to SSH employees for no cash consideration pursuant to the Plan, and (iii) the reimbursement of expenses of $0.1 million to SSH and $0.1 million to SCM. • The expense for the six months ended June 30, 2018 of $6.3 million included (i) administrative fees of $5.5 million charged by SSH, (ii) restricted stock amortization of $0.8 million , which relates to the issuance of an aggregate of 114,400 shares of restricted stock to SSH employees for no cash consideration pursuant to the Plan, and (iii) the reimbursement of expenses of $23,848 . We had the following balances with related party affiliates, which have been included in the unaudited condensed consolidated balance sheets: As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Assets: Accounts receivable (due from the Scorpio Pools) (1) $ 52,200 $ 66,178 Accounts receivable and prepaid expenses (SSM) (2) 2,712 2,461 Accounts receivable and prepaid expenses (SCM) (3) 1,220 2,511 Other assets (pool working capital contributions) (4) 45,694 42,973 Liabilities: Accounts payable and accrued expenses (SSM) (5) 3,956 832 Accounts payable and accrued expenses (owed to the Scorpio Pools) 605 66 Accounts payable and accrued expenses (SSH) 360 409 Accounts payable and accrued expenses (related party port agent) 351 459 Accounts payable and accrued expenses (SCM) 83 389 (1) Accounts receivable due from the Scorpio Pools relate to hire receivables for revenues earned and receivables from working capital contributions. The amounts as of June 30, 2019 and December 31, 2018 include $19.2 million and $22.9 million , respectively, of working capital contributions made on behalf of our vessels to the Scorpio Pools. Upon entrance into such pools, all vessels are required to make working capital contributions of both cash and bunkers. Additional working capital contributions can be made from time to time based on the operating needs of the Scorpio pools. These amounts are accounted for and repaid as follows: • For vessels in the Scorpio Handymax Tanker Pool, the initial contribution amount is repaid, without interest, upon a vessel’s exit from the pool no later than six months after the exit date. Bunkers on board a vessel exiting the pool are credited against such repayment at the actual invoice price of the bunkers. For all owned or finance leased vessels we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within other assets on the unaudited condensed consolidated balance sheets. For time or bareboat chartered-in vessels we classify the initial contributions as current (within accounts receivable) or non-current (within other assets) according to the expiration of the contract. Any additional working capital contributions are repaid when sufficient net revenues become available to cover such amounts. • For vessels in the Scorpio MR Pool and Scorpio Panamax Tanker Pool, any contributions are repaid, without interest, when such vessel has earned sufficient net revenues to cover the value of such working capital contributed. Accordingly, we classify such amounts as current (within accounts receivable). • For vessels in the Scorpio LR2 Pool, Scorpio Aframax Pool and Scorpio LR1 Pool, the initial contribution amount is repaid, without interest, upon a vessel’s exit from each pool. Bunkers on board a vessel exiting the pool are credited against such repayment at the actual invoice price of the bunkers. For all owned or finance leased vessels we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within other assets on the unaudited condensed consolidated balance sheets. For time or bareboat chartered-in vessels we classify the initial contributions as current (within accounts receivable) or non-current (within other assets) according to the expiration of the contract. Any additional working capital contributions are repaid when sufficient net revenues become available to cover such amounts and are therefore classified as current. (2) Accounts receivable and prepaid expenses from SSM relate to advances made for vessel operating expenses (such as crew wages) that will either be reimbursed or applied against future costs. (3) Accounts receivable and prepaid expenses from SCM primarily relate to the reduction of commission rebate to 0.85% of gross revenue per charter fixture as described above. (4) Represents the non-current portion of working capital receivables as described above. (5) Represents accounts payable and accrued expenses related to vessel operating expenses that are due to SSM. Prior to September 29, 2016, we paid SSH a fee for arranging vessel purchases and sales, on our behalf, equal to 1% of the gross purchase or sale price, payable upon the consummation of any such purchase or sale. This fee was eliminated for all vessel purchase or sale agreements entered into after September 29, 2016. These fees are capitalized as part of the carrying value of the related vessel for a vessel purchase and are included as part of the gain or loss on sale for a vessel disposal. • During the six months ended June 30, 2019 , no fees were paid to SSH for the sale or purchase of vessels. • During the six months ended June 30, 2018 , we paid SSH an aggregate fee of $0.7 million in connection with the purchase and delivery of STI Esles II and STI Jardins . The related construction contracts for these vessels were executed in 2015, prior to the amendments to the Administrative Services Agreement, which were effective on September 29, 2016. In 2011, we entered into an agreement to reimburse costs to SSM as part of its supervision agreement for newbuilding vessels. There were no costs incurred under this agreement during the six months ended June 30, 2019 and 2018 . We also had an agreement with SSM to supervise the eight MR vessels that were under construction at Hyundai Mipo Dockyard and delivered throughout 2017 and in January 2018. We paid SSM $0.1 million under this agreement during the six months ended June 30, 2018. Key management remuneration The table below shows key management remuneration for the six months ended June 30, 2019 and 2018: For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Short-term employee benefits (salaries) $ 5,191 $ 2,748 Share-based compensation (1) 11,071 10,365 Total $ 16,262 $ 13,113 (1) Represents the amortization of restricted stock issued under the Plan as described in Note 17. For the purpose of the table above, key management are those persons who have authority and responsibility for making strategic decisions, and managing operating, financial and legal activities. There are no material post-employment benefits for our executive officers or directors. By law, our employees in Monaco are entitled to a one -time payment of up to two months salary upon retirement if they meet certain minimum service requirements. There are no post-employment benefits. |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2019 | |
Operating Segments [Abstract] | |
Segment reporting | Segment reporting Information about our reportable segments for the six months ended June 30, 2019 and 2018 is as follows: For the six months ended June 30, 2019 In thousands of U.S. dollars LR1 Handymax LR2 MR Reportable segments subtotal Corporate and eliminations Total Vessel revenue $ 35,177 $ 55,176 $ 132,856 $ 123,426 $ 346,635 $ — $ 346,635 Vessel operating costs (13,851 ) (23,717 ) (46,411 ) (54,173 ) (138,152 ) — (138,152 ) Voyage expenses (24 ) (1,164 ) (206 ) (228 ) (1,622 ) — (1,622 ) Charterhire — (4,256 ) 271 (414 ) (4,399 ) — (4,399 ) Depreciation - owned or finance leased vessels (9,598 ) (9,044 ) (36,270 ) (33,271 ) (88,183 ) — (88,183 ) Depreciation - right of use assets — (3,929 ) — (4,101 ) (8,030 ) — (8,030 ) General and administrative expenses (583 ) (1,039 ) (1,857 ) (2,310 ) (5,789 ) (25,451 ) (31,240 ) Financial expenses — — — — — (96,083 ) (96,083 ) Financial income 107 11 22 264 404 5,439 5,843 Other expenses, net — — — — — (13 ) (13 ) Segment income or loss $ 11,228 $ 12,038 $ 48,405 $ 29,193 $ 100,864 $ (116,108 ) $ (15,244 ) For the six months ended June 30, 2018 In thousands of U.S. dollars LR1 Handymax LR2 MR Reportable segments subtotal Corporate and eliminations Total Vessel revenue $ 23,611 $ 48,237 $ 100,066 $ 126,327 $ 298,241 $ — $ 298,241 Vessel operating costs (14,781 ) (24,163 ) (45,736 ) (55,224 ) (139,904 ) — (139,904 ) Voyage expenses (573 ) (235 ) (2,966 ) (598 ) (4,372 ) — (4,372 ) Charterhire — (10,308 ) (4,652 ) (20,209 ) (35,169 ) — (35,169 ) Depreciation (9,565 ) (9,020 ) (36,010 ) (32,952 ) (87,547 ) — (87,547 ) General and administrative expenses (593 ) (1,116 ) (1,924 ) (2,430 ) (6,063 ) (20,909 ) (26,972 ) Merger transaction related costs — — — — — (271 ) (271 ) Financial expenses — — — — — (88,367 ) (88,367 ) Loss on exchange of convertible senior notes — — — — — (16,968 ) (16,968 ) Financial income 39 8 10 255 312 418 730 Other expenses, net — (46 ) — — (46 ) (50 ) (96 ) Segment income or loss $ (1,862 ) $ 3,357 $ 8,788 $ 15,169 $ 25,452 $ (126,147 ) $ (100,695 ) |
Vessel revenue Vessel revenue
Vessel revenue Vessel revenue | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Vessel revenue | Vessel revenue During the six months ended June 30, 2019 and 2018 , we had three and five vessels that earned revenue through long-term time-charter contracts (with initial terms of one year or greater), respectively. The remaining vessels earned revenue from the Scorpio Pools or in the spot market. Revenue Sources For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Pool revenue $ 342,505 $ 272,436 Time charter revenue 2,551 18,558 Voyage revenue (spot market) 1,579 7,247 $ 346,635 $ 298,241 Seasonality The tanker market is typically stronger in the winter months of the northern hemisphere as a result of increased oil consumption but weaker in the summer months of the northern hemisphere as a result of lower oil consumption and refinery maintenance. In addition, unpredictable weather patterns during the winter months tend to disrupt vessel scheduling. The oil price volatility resulting from these factors has historically led to increased oil trading activities in the winter months. As a result, revenues generated by our vessels have historically been weaker during April to September and stronger during October to March. |
Crewing costs
Crewing costs | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Crewing cost [Text Block] | Crewing costs The following table depicts the components of our crew expenses, including crew benefits, during the six months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, In thousands of US dollars 2019 2018 Short term crew benefits (i.e. wages, victualing, insurance) $ 74,854 $ 75,807 Other crew related costs 9,145 9,770 83,999 85,577 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases 1 [Abstract] | |
Operating Leases | Operating leases and right of use assets Bareboat Chartered-In Vessels The following table depicts our time or bareboat chartered-in vessel commitments during the six months ended June 30, 2019 : Name Year built Vessel class Charter type Delivery (1) Charter Expiration Rate ($/ day) Active as of June 30, 2019 1 Silent 2007 Handymax Bareboat March-19 March-20 6,300 (2) 2 Single 2007 Handymax Bareboat March-19 March-20 6,300 (2) 3 Star I 2007 Handymax Bareboat March-19 March-20 6,300 (2) 4 Steel 2008 Handymax Bareboat March-19 March-21 6,300 (3) 5 Sky 2008 Handymax Bareboat March-19 March-21 6,300 (3) 6 Stone I 2008 Handymax Bareboat March-19 March-21 6,300 (3) 7 Style 2008 Handymax Bareboat March-19 March-21 6,300 (3) 8 STI Beryl 2013 MR Bareboat April-17 April-25 8,800 (4) 9 STI Le Rocher 2013 MR Bareboat April-17 April-25 8,800 (4) 10 STI Larvotto 2013 MR Bareboat April-17 April-25 8,800 (4) (1) Represents delivery date or estimated delivery date. (2) In March 2019, we entered into a new bareboat charter-in agreement on a previously bareboat chartered-in vessel. The term of the agreement is for one year at a bareboat rate of $6,300 per day. (3) In March 2019, we entered into a new bareboat charter-in agreement on a previously bareboat chartered-in vessel. The term of the agreement is for two years at a bareboat rate of $6,300 per day. (4) 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 $4.35 million per vessel was retained by the buyer and will either be applied to the purchase price of each vessel if a purchase option is exercised, or refunded to us at the expiration of the agreement. Time charter that expired during the six months ended June 30, 2019 Name Year built Vessel class Delivery Charter Expiration Rate ($/ day) Miss Benedetta 2012 MR Mar-18 Jan-19 14,000 On January 1, 2019, the Company adopted IFRS 16, Leases, which amended the existing accounting standards to require lessees to recognize, on a discounted basis, the rights and obligations created by the commitment to lease assets on the balance sheet, unless the term of the lease is 12 months or less. Accordingly, the standard resulted in the recognition of right-of-use assets and corresponding liabilities, on the basis of the discounted remaining future minimum lease payments, relating to the existing bareboat chartered-in vessel commitments for three bareboat chartered-in vessels, which are scheduled to expire in April 2025. A weighted average incremental borrowing rate of 6.0% was applied at the date of initial application. The following table bridges operating lease commitments at December 31, 2018 to IFRS 16 lease liabilities at January 1, 2019 In thousands of U.S. dollars Operating leases commitments disclosed at December 31, 2018 $ 65,439 Discounting effect relating to the lease liability recorded upon transition to IFRS 16 (10,120 ) Less: leases with terms of less than 12 months at the date of transition to IFRS 16, which were recognized as charterhire expense during the six months ended June 30, 2019. (4,605 ) IFRS 16 - lease liabilities recognized at January 1, 2019 $ 50,714 Of which are: IFRS 16 - current lease liabilities $ 6,523 IFRS 16 - non-current lease liabilities $ 44,191 In March 2019, the Company entered into new bareboat charter-in agreements on seven previously bareboat chartered-in vessels. Three of these vessels will be bareboat chartered-in for one year and the remaining four vessels will be bareboat chartered-in for two years. The daily bareboat rate under all seven agreements is $6,300 per day. The following is the activity of the Right of use assets starting with the recognition of the assets on January 1, 2019 through June 30, 2019 : In thousands of U.S. dollars Vessels Drydock (2) Total As of January 1, 2019 48,466 2,635 51,101 Additions (1) 24,195 — 24,195 Depreciation - right of use assets (7,736 ) (294 ) (8,030 ) As of June 30, 2019 64,925 2,341 67,266 (1) Additions relate to seven vessels that commenced bareboat charter-in arrangements in March 2019 for $6,300 per day. (2) Drydock costs for bareboat chartered-in vessels are depreciated over the shorter of the lease term or the period until the next scheduled drydock. On this basis, the drydock costs incurred for these vessels is being depreciated separately. These costs were recorded as Other non-current assets as of December 31, 2018 and were reclassified to Right of use assets upon the adoption of IFRS 16 - Leases, on January 1, 2019. The following table summarizes the interest expense recognized in the unaudited condensed consolidated statements of income or loss and principal payments recognized in the unaudited condensed consolidated cash flow statements for the six months ended June 30, 2019 relating to lease liabilities. In thousands of U.S. dollars Six months ended June 30, 2019 Amounts recognized in unaudited condensed consolidated statements of income or loss Interest expense on IFRS 16 - lease liabilities $ 1,776 Amount recognized in unaudited condensed consolidated cash flow statements Principal repayments on IFRS 16 - lease liabilities $ 7,129 The undiscounted remaining future minimum lease payments under bareboat charter-in arrangements that are accounted as lease liabilities under IFRS 16 - Leases as of June 30, 2019 are $77.7 million . The obligations under these agreements will be repaid as follows: As of In thousands of U.S. dollars June 30, 2019 Less than 1 year $ 24,066 1 - 5 years 45,395 5+ years 8,200 Total $ 77,661 Discounting effect 9,589 Lease liability $ 68,072 The total expense recognized under time and bareboat charterhire agreements that are accounted for as operating leases during the six months ended June 30, 2019 and 2018 was $ 4.4 million and $35.2 million , respectively. These lease payments include payments for the non-lease elements in our time chartered-in arrangements. Time Chartered-Out Vessels and Vessels in Pool Arrangements In accordance with IFRS 16 - Leases, we are required to identify the lease and non-lease components of revenue and account for each component in accordance with the applicable accounting standard. In time charter-out or pool arrangements, we have determined that the lease component is the vessel and the non-lease component is the technical management services provided to operate the vessel. Each component is quantified on the basis of the relative stand-alone price of each lease component; and on the aggregate stand-alone price of the non-lease components. These components will be accounted for as follows: • All fixed lease revenue earned under these time charter-out arrangements is recognized on a straight-line basis over the term of the lease. • Lease revenue earned under our pool arrangements is recognized as it is earned, since it is 100% variable. • The non-lease component is accounted for as services revenue under IFRS 15. This revenue is recognized “over time” as the customer (i.e. the pool or the charterer) is simultaneously receiving and consuming the benefits of the service. The following table summarizes the lease and non-lease components of revenue from time charter-out and pool revenue during the six months ended June 30, 2019 and 2018 . These figures are not readily quantifiable as the Company's contracts (with the Scorpio pools or under time charter-out arrangements) do not separate these components. The Company does not view its pool and time charter-out revenue as two separate streams of revenue. Nevertheless, we have estimated these amounts by reference to (i) third party, published time charter rates for the lease component, and (ii) an approximation of the fair market value of vessel operating expenses for the non-lease component. For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Lease component of revenue from time charter-out and pool revenue $ 191,523 $ 140,183 Non-lease component of revenue from time charter-out and pool revenue 153,533 150,810 $ 345,056 $ 290,993 The following table summarizes the terms of our time chartered-out vessels that were in place during the six months ended June 30, 2019 . Name Year built Type Delivery Date to the Charterer Charter Expiration Rate ($/ day) 1 STI Pimlico 2014 Handymax February-16 March-19 $ 18,000 2 STI Poplar 2014 Handymax January-16 February-19 $ 18,000 3 STI Rose 2015 LR2 February-16 February-19 $ 28,000 Payments received include payments for the non-lease elements in these time chartered-out arrangements. The future undiscounted 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 In thousands of U.S. dollars June 30, 2019 December 31, 2018 Less than 1 year $ — $ 2,581 1 - 5 years — — 5+ years — — Total $ — $ 2,581 |
Financial expenses
Financial expenses | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Financial expenses | Financial expenses The following table depicts the components of financial expenses for the six months ended June 30, 2019 : For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Interest expense on debt (1) $ 82,898 $ 66,797 Accretion of Convertible Senior Notes due 2019 and 2022 6,995 6,435 Amortization of deferred financing fees 4,088 6,191 Accretion of premiums and discounts on assumed debt (2) 1,827 1,909 Write-off of deferred financing fees (3) 275 7,035 Total financial expenses $ 96,083 $ 88,367 (1) The increase in interest payable, net of capitalized interest was primarily attributable to (i) an increase in the Company's average debt balance, (ii) an increase in LIBOR rates compared to the six months ended June 30, 2018, (iii) an increase in borrowing costs associated with the Company's lease financing arrangements that were entered into in 2018 and (iv) the implementation of IFRS 16 - Leases. IFRS 16 - Leases, required the recognition of right of use assets and corresponding liabilities on the basis of the discounted remaining future minimum lease payments, relating to our existing bareboat chartered-in vessel commitments that were previously reported as operating leases. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. During the six months ended June 30, 2019, we recognized $1.8 million of finance charge for leases accounted for under IFRS 16. Average debt outstanding during the six months ended June 30, 2019 and 2018 was $2.9 billion and $2.8 billion , respectively. The increase in average debt during the six months ended June 30, 2019 was primarily the result of the Company's refinancing initiatives that were executed in the second, third and fourth quarters of 2018. Interest payable during those periods was partially offset by interest capitalized from vessels under construction and installations of BWTS and scrubbers of $1.3 million and $0.2 million during the six months ended June 30, 2019 and 2018 , respectively. (2) The accretion of premiums and discounts represent the accretion or amortization of the fair value adjustments relating to the indebtedness assumed from Navig8 Product Tankers Inc. that have been recorded since the closing dates of that merger in 2017. (3) The write-off of deferred financing fees for the six months ended June 30, 2019 was primarily the result of the early redemption of the Unsecured Senior Notes due 2019 in March 2019. The write-off of deferred financing fees in the six months ended June 30, 2018 included (i) $1.1 million related to the exchange of our Convertible Senior Notes due 2019 in May 2018, (ii) $3.3 million related to refinancing of the existing indebtedness on five vessels under our K-Sure Credit Facility into our ABN / SEB Credit Facility, and (iii) $2.6 million related to the acceleration of the unamortized deferred financing fees for certain credit facilities that were refinanced in the third and fourth quarters of 2018. |
(Loss) _ earnings per share
(Loss) / earnings per share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings per share [abstract] | |
(Loss) / earnings per share | Loss per share The calculation of both basic and diluted loss per share is based on net loss attributable to equity holders of the parent and weighted average outstanding shares of: For the six months ended June 30, In thousands of U.S. dollars except for share data 2019 2018 Net loss attributable to equity holders of the parent - basic $ (15,244 ) $ (100,695 ) Convertible Senior Notes interest expense — — Convertible Senior Notes deferred financing amortization — — Net loss attributable to equity holders of the parent - diluted $ (15,244 ) $ (100,695 ) Basic weighted average number of shares 48,109,924 30,891,470 Effect of dilutive potential basic shares: Restricted stock — — Convertible Senior Notes — — — — Diluted weighted average number of shares 48,109,924 30,891,470 Loss Per Share: Basic $ (0.32 ) $ (3.26 ) Diluted $ (0.32 ) $ (3.26 ) During the six months ended June 30, 2019 and 2018 , we incurred net losses and as a result, the inclusion of potentially dilutive shares relating to unvested shares of restricted stock and our Convertible Senior Notes due 2019 and Convertible Senior Notes due 2022 were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. Accordingly, interest expense and deferred financing amortization relating to the Convertible Senior Notes due 2019 and Convertible Senior Notes due 2022 along with the potentially dilutive securities under such notes (representing 6,653,256 and 6,320,243 shares of common stock for the six months ended June 30, 2019 and 2018 , respectively) along with the potentially dilutive impact of 3,377,849 and 2,167,474 unvested shares of restricted stock were excluded from the computation of diluted earnings per share for the six months ended June 30, 2019 and 2018 , respectively. |
Financial instruments - financi
Financial instruments - financial and other risks | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Financial instruments - financial and other risks | Financial instruments - financial and other risks Funding and capital risk management We manage our funding and capital resources to ensure our ability to continue as a going concern while maximizing the return to shareholders through the optimization of our debt and equity balance. IFRS 13 requires classifications of fair value measures into Levels 1, 2 and 3. Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values and carrying values of our financial instruments at June 30, 2019 and December 31, 2018 , respectively, are shown in the table below. Categories of Financial Instruments As of June 30, 2019 As of December 31, 2018 Amounts in thousands of U.S. dollars Fair value Carrying Value Fair value Carrying Value Financial assets Cash and cash equivalents (1) $ 467,219 $ 467,219 $ 593,652 $ 593,652 Restricted cash (2) 12,294 12,294 12,285 12,285 Accounts receivable (3) 56,469 56,469 69,718 69,718 Investment in BWTS supplier (4) 1,751 1,751 1,751 1,751 Working capital contributions to Scorpio Pools (5) 45,694 45,694 42,973 42,973 Seller's credit on sale leaseback vessels (6) 9,352 9,352 9,087 9,087 Financial liabilities Accounts payable (7) $ 15,354 $ 15,354 $ 11,865 $ 11,865 Accrued expenses (7) 29,175 29,175 22,972 22,972 Secured bank loans (8) 1,018,638 1,018,638 1,066,452 1,066,452 Finance lease liability (9) 1,363,932 1,363,932 1,420,381 1,420,381 Unsecured Senior Notes Due 2020 (10) 54,524 53,750 52,584 53,750 Unsecured Senior Notes Due 2019 (10) — — 58,029 57,500 Convertible Senior Notes due 2019 (11) 142,708 142,708 140,267 145,000 Convertible Senior Notes due 2022 (11) 210,865 203,500 163,842 203,500 IFRS 16 - Lease liabilities (12) 68,072 68,072 — — (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) We consider the value of our minority interest in our BWTS supplier (as described in Note 5) to be a Level 3 fair value measurement, as this supplier is a private company and the value has been determined based on unobservable market data (i.e. the proceeds that we would receive if we exercised the put option set forth in the agreement in full). Moreover, we consider that its carrying value approximates fair value given that the value of this investment is contractually limited to the strike prices set forth in the put option that was granted to the Company and the call option that was granted to the supplier. The difference in the aggregate value of the investment, based on the spread between the exercise prices of the put and call options, is $0.6 million . (5) Non-current working capital contributions to the Scorpio Pools are repaid, without interest, upon a vessel’s exit from the pool. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within Other Assets on the consolidated balance sheets. We consider that their carrying values approximate fair value given that the amounts due are contractually fixed based on the terms of each pool agreement. (6) The seller's credit on lease financed vessels represents the present value of the deposits of $4.35 million per vessel ( $13.1 million in aggregate) that was retained by the buyer as part of the sale and operating leasebacks of STI Beryl , STI Le Rocher and STI Larvotto , which is described in Note 5. This deposit 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. This deposit has been recorded as a financial asset measured at amortized cost. The present value of this deposit has been calculated based on the interest rate that is implied in the leases, and the carrying value will accrete over the life of the lease using the effective interest method, through interest income, until expiration. We consider that its carrying value approximates fair value given that its value is contractually fixed based on the terms of each lease. (7) 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. (8) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $10.3 million and $12.6 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (9) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. These amounts are shown net of $8.7 million and $9.5 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (10) The carrying value of our Unsecured Senior Notes Due 2020 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 $0.3 million and $0.5 million of unamortized deferred financing fees on our unaudited condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018. Our Unsecured Senior Notes Due 2020 are quoted on the New York Stock Exchange under the symbols 'SBNA'. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange. (11) The carrying value of our Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 shown in the table above are their face value. The liability components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Long-term debt on the unaudited condensed consolidated balance sheet as of June 30, 2019 . The equity components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Additional paid-in capital on the unaudited condensed consolidated balance sheet, net of $1.9 million , of unamortized deferred financing fees. These instruments are traded in inactive markets and are valued based on quoted prices on the recent trading activity. Accordingly, we consider its fair value to be a Level 2 measurement. (12) The carrying values of our IFRS 16 - Leases, lease liabilities are measured at present value of the minimum lease payments over the lease term, discounted at the Company's incremental borrowing rate. We consider that the carrying value approximates fair value because the interest rates on these instruments approximate market interest rates. Accordingly, we consider their fair value to a Level 2 measurement. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. We manage liquidity risk by maintaining adequate reserves and borrowing facilities and by continuously monitoring forecast and actual cash flows. Economic conditions in the product tanker market were challenging during the year ended December 31, 2018, with freight rates at their lowest levels since 2009, resulting in the incurrence of significant losses during that period. The Company raised $319.6 million in additional liquidity in an underwritten offering of our common shares in October 2018 and economic conditions in the product tanker market subsequently improved during the six months ended June 30, 2019. Our Senior Unsecured Notes due 2020 are scheduled to mature in May of 2020 and our ABN AMRO Credit Facility is scheduled to mature in the third quarter of 2020 (depending on the tranche). While we believe our current financial position is adequate to address the maturity of these instruments, a deterioration in economic conditions could cause us to pursue other means to raise liquidity, such as through the sale of vessels, to meet these obligations. Moreover, a deterioration in economic conditions could cause us to breach our debt covenants, and could have a material adverse effect on our business, results of operations, cash flows and financial condition. Based on internal forecasts and projections, we believe that we have adequate financial resources to continue in operation and meet our financial commitments (including but not limited to debt service obligations and charterhire commitments) for a period of at least twelve months from the date of approval of these unaudited condensed consolidated financial statements. Accordingly, we continue to adopt the going concern basis in preparing our unaudited condensed consolidated financial statements. |
Fair Values and Carrying Values of Financial Assets | The fair values and carrying values of our financial instruments at June 30, 2019 and December 31, 2018 , respectively, are shown in the table below. Categories of Financial Instruments As of June 30, 2019 As of December 31, 2018 Amounts in thousands of U.S. dollars Fair value Carrying Value Fair value Carrying Value Financial assets Cash and cash equivalents (1) $ 467,219 $ 467,219 $ 593,652 $ 593,652 Restricted cash (2) 12,294 12,294 12,285 12,285 Accounts receivable (3) 56,469 56,469 69,718 69,718 Investment in BWTS supplier (4) 1,751 1,751 1,751 1,751 Working capital contributions to Scorpio Pools (5) 45,694 45,694 42,973 42,973 Seller's credit on sale leaseback vessels (6) 9,352 9,352 9,087 9,087 Financial liabilities Accounts payable (7) $ 15,354 $ 15,354 $ 11,865 $ 11,865 Accrued expenses (7) 29,175 29,175 22,972 22,972 Secured bank loans (8) 1,018,638 1,018,638 1,066,452 1,066,452 Finance lease liability (9) 1,363,932 1,363,932 1,420,381 1,420,381 Unsecured Senior Notes Due 2020 (10) 54,524 53,750 52,584 53,750 Unsecured Senior Notes Due 2019 (10) — — 58,029 57,500 Convertible Senior Notes due 2019 (11) 142,708 142,708 140,267 145,000 Convertible Senior Notes due 2022 (11) 210,865 203,500 163,842 203,500 IFRS 16 - Lease liabilities (12) 68,072 68,072 — — (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) We consider the value of our minority interest in our BWTS supplier (as described in Note 5) to be a Level 3 fair value measurement, as this supplier is a private company and the value has been determined based on unobservable market data (i.e. the proceeds that we would receive if we exercised the put option set forth in the agreement in full). Moreover, we consider that its carrying value approximates fair value given that the value of this investment is contractually limited to the strike prices set forth in the put option that was granted to the Company and the call option that was granted to the supplier. The difference in the aggregate value of the investment, based on the spread between the exercise prices of the put and call options, is $0.6 million . (5) Non-current working capital contributions to the Scorpio Pools are repaid, without interest, upon a vessel’s exit from the pool. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within Other Assets on the consolidated balance sheets. We consider that their carrying values approximate fair value given that the amounts due are contractually fixed based on the terms of each pool agreement. (6) The seller's credit on lease financed vessels represents the present value of the deposits of $4.35 million per vessel ( $13.1 million in aggregate) that was retained by the buyer as part of the sale and operating leasebacks of STI Beryl , STI Le Rocher and STI Larvotto , which is described in Note 5. This deposit 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. This deposit has been recorded as a financial asset measured at amortized cost. The present value of this deposit has been calculated based on the interest rate that is implied in the leases, and the carrying value will accrete over the life of the lease using the effective interest method, through interest income, until expiration. We consider that its carrying value approximates fair value given that its value is contractually fixed based on the terms of each lease. (7) 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. (8) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $10.3 million and $12.6 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (9) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. These amounts are shown net of $8.7 million and $9.5 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (10) The carrying value of our Unsecured Senior Notes Due 2020 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 $0.3 million and $0.5 million of unamortized deferred financing fees on our unaudited condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018. Our Unsecured Senior Notes Due 2020 are quoted on the New York Stock Exchange under the symbols 'SBNA'. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange. (11) The carrying value of our Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 shown in the table above are their face value. The liability components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Long-term debt on the unaudited condensed consolidated balance sheet as of June 30, 2019 . The equity components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Additional paid-in capital on the unaudited condensed consolidated balance sheet, net of $1.9 million , of unamortized deferred financing fees. These instruments are traded in inactive markets and are valued based on quoted prices on the recent trading activity. Accordingly, we consider its fair value to be a Level 2 measurement. (12) The carrying values of our IFRS 16 - Leases, lease liabilities are measured at present value of the minimum lease payments over the lease term, discounted at the Company's incremental borrowing rate. We consider that the carrying value approximates fair value because the interest rates on these instruments approximate market interest rates. Accordingly, we consider their fair value to a Level 2 measurement. |
General and administrative expe
General and administrative expenses | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
General and administrative expenses | General and administrative expenses General and administrative expenses increased $4.3 million to $31.2 million from $27.0 million for the six months ended June 30, 2019 and 2018, respectively. This increase was primarily driven by an increase in restricted stock amortization and compensation expenses. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2019 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events Convertible Senior Notes due 2019 In July 2019, our Convertible Senior Notes due 2019 matured and we repaid the entire outstanding balance of $142.7 million . Convertible Senior Notes due 2022 On September 10, 2019, the conversion rate of the Convertible Senior Notes due 2022 was adjusted to reflect the Company's expected payment of a cash dividend on or about September 27, 2019 to all shareholders of record as of September 10, 2019. The new conversion rate for the Convertible Senior Notes due 2022 is 25.6637 shares of the Company’s common shares per $1,000 principal amount, representing an increase to the prior conversion rate of 0.0870 shares for each $1,000 principal amount of the Convertible Senior Notes due 2022. Declaration of Dividend On July 30, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on or about September 27, 2019 to all shareholders of record as of September 10, 2019 (the record date). Scrubber Financing The Company has received commitments for seven different facilities to partially finance the purchase and installation of scrubbers on certain of the Company's vessels. These commitments are expected to increase the Company’s liquidity by approximately $87 million . The Company is in discussions with a different group of financial institutions to finance additional purchases of scrubbers which, if consummated, are expected to increase the Company’s liquidity by an additional $35 million . All of these agreements are expected to be signed in the next few months and the drawdowns will occur as the scrubbers are installed throughout the remainder of 2019 and 2020. 2013 Equity Incentive Plan, or the Plan In July 2019, the Company's Board of Directors approved the reloading of the Plan, and reserved an additional 134,893 common shares, par value $0.01 per share, of the Company for issuance pursuant to the Plan. In July 2019, the Company issued 230,170 shares of restricted stock to our employees for no cash consideration pursuant to the Plan. The share price on the issuance date was $26.23 per share. The vesting schedule of the restricted stock issued to our employees is (i) one-third of the shares vest on May 24, 2022, (ii) one-third of the shares vest on May 23, 2023, and (iii) one-third of the shares vest on May 22, 2024. |
General information and signi_2
General information and significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of significant accounting policies | General information and significant accounting policies Company Scorpio Tankers Inc. and its subsidiaries (together “we”, “our” or the “Company”) are engaged in the seaborne transportation of refined petroleum products in the international shipping markets. Scorpio Tankers Inc. was incorporated in the Republic of the Marshall Islands on July 1, 2009. On April 6, 2010, we closed on our initial public offering, and our common stock currently trades on the New York Stock Exchange under the symbol STNG. Our fleet as of June 30, 2019 consisted of 109 owned or finance leased product tankers ( 14 Handymax, 45 MR, 12 LR1 and 38 LR2) and 10 bareboat chartered-in product tankers ( seven Handymax and three MR). Our vessels are commercially managed by Scorpio Commercial Management S.A.M., or SCM, which is majority owned by the Lolli-Ghetti family of which Mr. Emanuele Lauro, our founder, Chairman and Chief Executive Officer, and Mr. Filippo Lauro, our Vice President, are members. SCM’s services include securing employment for the vessels in our fleet, in pools, in the spot market, and on time charters. Our vessels are technically managed by Scorpio Ship Management S.A.M., or SSM, which is majority owned by the Lolli-Ghetti family. SSM facilitates vessel support such as crew, provisions, deck and engine stores, insurance, maintenance and repairs, and other services necessary to operate the vessels such as drydocks and vetting/inspection under a technical management agreement. We also have an administrative services agreement with Scorpio Services Holding Limited, or SSH, which is majority owned by the Lolli-Ghetti family. The administrative services provided under this agreement primarily include accounting, legal compliance, financial, information technology services, and the provision of administrative staff and office space, which are contracted to subsidiaries of SSH. We pay our managers fees for these services and reimburse them for direct or indirect expenses that they incur in providing these services. Basis of accounting The unaudited condensed consolidated financial statements have been presented in United States dollars (“USD” or “$”), which is the functional currency of Scorpio Tankers Inc. and all of its subsidiaries. The unaudited condensed consolidated financial statements for the six months ended June 30, 2019 have been prepared in accordance with International Accounting Standard, or IAS 34, Interim Financial Statements , as issued by the International Accounting Standards Board, or IASB, using the same accounting policies as adopted in the preparation of the consolidated financial statements for the year ended December 31, 2018. These unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards or IFRS. Reverse stock split On January 18, 2019, the Company effected a one-for-ten reverse stock split. All share and per share information has been retroactively adjusted to reflect the reverse stock split. The par value was not adjusted as a result of the reverse stock split. Going concern The unaudited condensed consolidated financial statements have been prepared in accordance with the going concern basis of accounting as described further in the "Liquidity risk" section of Note 18. Adoption of new and amended IFRS and International Financial Reporting Interpretations Committee interpretations from January 1, 2019 Standards and interpretations adopted during the six months ended June 30, 2018 IFRS 15 - Revenue from Contracts with Customers, was issued by the IASB on May 28, 2014. IFRS 15 - Revenue from Contracts with Customers amends the existing accounting standards for revenue recognition and is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products or services are transferred to customers. IFRS 15 - Revenue from Contracts with Customers applies to an entity’s first annual IFRS financial statements for a period beginning on or after January 1, 2018. The standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (the “modified retrospective method”). We have applied the modified retrospective method upon the date of transition. Our revenue is primarily generated from time charters, participation in pooling arrangements and in the spot market. Of these revenue streams, revenue generated in the spot market is within the scope of IFRS 15 - Revenue from Contracts with Customers . Revenue generated from time charters and from pooling arrangements are within the scope of IFRS 16, Leases , which is discussed further below. For vessels operating in the spot market, we are recognizing revenue ‘over time’ as the customer (i.e. the charterer) is simultaneously receiving and consuming the benefits of the vessel. Under IFRS 15 - Revenue from Contracts with Customers , the time period over which revenue is recognized has changed from the previous accounting standard. Prior to the commencement of IFRS 15 - Revenue from Contracts with Customers , revenue from voyage charter agreements was recognized as voyage revenue on a pro-rata basis over the duration of the voyage on a discharge to discharge basis. In the application of this policy, we did not begin recognizing revenue until (i) the amount of revenue could be measured reliably, (ii) it was probable that the economic benefits associated with the transaction would flow to the entity, (iii) the transactions stage of completion at the balance sheet date could be measured reliably, and (iv) the costs incurred and the costs to complete the transaction could be measured reliably. However, under IFRS 15 - Revenue from Contracts with Customers , the performance obligation has been identified as the transportation of cargo from one point to another. Therefore, in a spot market voyage under IFRS 15 - Revenue from Contracts with Customers , revenue is now recognized on a pro-rata basis commencing on the date that the cargo is loaded and concluding on the date of discharge. Moreover, costs incurred in the fulfillment of a voyage charter are deferred and amortized over the course of the charter if they (i) relate directly to such charter, (ii) generate or enhance resources to be used in meeting obligations under the charter and (iii) are expected to be recovered. At December 31, 2017, we had two vessels operating in the spot market and the cumulative effect of the application of this standard under the modified retrospective method resulted in a $3,888 reduction in the opening balance of accumulated deficit on January 1, 2018. Standards and interpretations adopted during the six months ended June 30, 2019 IFRS 16 - Leases, was issued by the IASB on January 13, 2016. IFRS 16 - Leases applies to an entity's first annual IFRS financial statements for a period beginning on or after January 1, 2019. IFRS 16 - Leases amends the definition of what constitutes a lease to be a contract that conveys the right to control the use of an identified asset if the lessee has both (i) the right to obtain substantially all of the economic benefits from the use of the identified asset and (ii) the right to direct the use of the identified asset throughout the period of use. We have determined that our existing pool and time charter-out arrangements meet the definition of leases under IFRS 16 - Leases , with the Company as lessor, on the basis that the pool or charterer enters into transportation contracts with their customers, and thereby enjoys the economic benefits derived from such arrangements. Furthermore, the pool or charterer can direct the use of a vessel (subject to certain limitations in the pool or charter agreement) throughout the period of the contract. Moreover, under IFRS 16 - Leases , we are also required to identify the lease and non-lease components of revenue and account for each component in accordance with the applicable accounting standard. In time charter-out or pool arrangements, we have determined that the lease component is the vessel and the non-lease component is the technical management services provided to operate the vessel. Each component is quantified on the basis of the relative stand-alone price of each lease component; and on the aggregate stand-alone price of the non-lease components. These components are accounted for as follows: • All fixed lease revenue earned under these arrangements is recognized on a straight-line basis over the term of the lease. • Lease revenue earned under our pool arrangements is recognized as it is earned, since it is 100% variable. • The non-lease component is accounted for as services revenue under IFRS 15 - Revenue from Contracts with Customers . This revenue is recognized “over time” as the customer (i.e. the pool or the charterer) is simultaneously receiving and consuming the benefits of the service. IFRS 16 - Leases also amends the existing accounting standards to require lessees to recognize, on a discounted basis, the rights and obligations created by the commitment to lease assets on the balance sheet, unless the term of the lease is 12 months or less. Accordingly, the standard resulted in the recognition of right-of-use assets and corresponding liabilities, on the basis of the discounted remaining future minimum lease payments, relating to the existing bareboat chartered-in vessel commitments for three bareboat chartered-in vessels, which are scheduled to expire in April 2025. Upon transition, a lessee shall apply IFRS 16- Leases to its leases either retrospectively to each prior reporting period presented (the ‘full retrospective approach’) or retrospectively with the cumulative effect of initially applying IFRS 16 - Leases recognized at the date of initial application (the ‘modified retrospective approach’). We applied the modified retrospective approach upon transition. The impact of the application of this standard on the opening balance sheet as of January 1, 2019 was the recognition of a $48.5 million right of use asset, a $50.7 million operating lease liability and a $2.2 million reduction in retained earnings relating to these three vessels. |
Basis of accounting | Basis of accounting The unaudited condensed consolidated financial statements have been presented in United States dollars (“USD” or “$”), which is the functional currency of Scorpio Tankers Inc. and all of its subsidiaries. The unaudited condensed consolidated financial statements for the six months ended June 30, 2019 have been prepared in accordance with International Accounting Standard, or IAS 34, Interim Financial Statements , as issued by the International Accounting Standards Board, or IASB, using the same accounting policies as adopted in the preparation of the consolidated financial statements for the year ended December 31, 2018. These unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards |
Reverse stock split | Reverse stock split On January 18, 2019, the Company effected a one-for-ten reverse stock split. All share and per share information has been retroactively adjusted to reflect the reverse stock split. The par value was not adjusted as a result of the reverse stock split. |
Prepaid expenses and other as_2
Prepaid expenses and other assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of prepaid expenses and other assets | The following is a table summarizing our prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 SSM - prepaid vessel operating expenses $ 2,712 $ 2,461 Prepaid expenses from related parties 2,712 2,461 Prepaid interest 6,535 6,870 Prepaid insurance 4,373 4,449 Third party - prepaid vessel operating expenses 651 712 Other prepaid expenses 1,574 1,179 $ 15,845 $ 15,671 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of the components of accounts receivable | The following is a table summarizing our accounts receivable as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio MR Pool Limited $ 30,800 $ 33,288 Scorpio LR2 Pool Limited 13,720 24,563 Scorpio LR1 Pool Limited 3,895 3,705 Scorpio Handymax Tanker Pool Limited 3,785 4,559 Scorpio Aframax Pool Limited — 63 SCM 1,220 2,511 Receivables from the related parties 53,420 68,689 Insurance receivables 1,499 204 Freight and time charter receivables 237 22 Receivables from Navig8 Group Pools 72 17 Other receivables 1,241 786 $ 56,469 $ 69,718 |
Vessels (Tables)
Vessels (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, plant and equipment [abstract] | |
Operating vessels rollforward | The following is a rollforward of the activity within Vessels and drydock from January 1, 2019 through June 30, 2019 . Amounts capitalized as part of the Vessel are depreciated over the remaining useful life of the vessel. Amounts capitalized as part of Drydock are depreciated until each vessel's next scheduled drydock. In thousands of U.S. dollars Vessels Drydock Total Cost As of January 1, 2019 4,469,102 86,352 4,555,454 Additions (1) 35,279 10,561 45,840 As of June 30, 2019 4,504,381 96,913 4,601,294 Accumulated depreciation As of January 1, 2019 (506,443 ) (51,222 ) (557,665 ) Charge for the period (79,226 ) (8,957 ) (88,183 ) As of June 30, 2019 (585,669 ) (60,179 ) (645,848 ) Net book value As of June 30, 2019 $ 3,918,712 $ 36,734 $ 3,955,446 Net book value As of December 31, 2018 $ 3,962,659 $ 35,130 $ 3,997,789 (1) Additions during the six months ended June 30, 2019 primarily relates to the various costs relating to BWTS, scrubber and drydock installations. |
Summary of cost capitalized [Table Text Block] | The following is a summary of the cost types that were capitalized during the six months ended June 30, 2019: In thousands of U.S. dollars Drydock Notional component of scrubber Total drydock additions Scrubber BWTS Other equipment Capitalized interest Total vessel additions Handymax $ 2,746 $ — $ 2,746 $ — $ 4,091 $ 584 $ 136 $ 4,811 MR 5,901 450 6,351 10,604 2,975 1,495 485 15,559 LR1 — — — 319 — 296 67 682 LR2 864 600 1,464 12,052 261 1,350 564 14,227 $ 9,511 $ 1,050 $ 10,561 $ 22,975 $ 7,327 $ 3,725 $ 1,252 $ 35,279 |
Schedule of future expected payments for purchase commitments | The following table is a timeline of future expected payments and dates for our commitments to purchase scrubbers and BWTS as of June 30, 2019 (1) : As of June 30, In thousands of U.S. dollars 2019 Less than 1 month $ 24,059 1-3 months 29,146 3 months to 1 year 55,838 1-5 years 12,644 5+ years — Total $ 121,687 (1) These amounts are subject to change as installation times are finalized. The amounts presented exclude installation costs. |
Other non-current assets (Table
Other non-current assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other non-current assets | Other non-current assets As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio LR2 Pool Ltd. pool working capital contributions (1) $ 32,300 $ 31,450 Scorpio Handymax Tanker Pool Ltd. pool working capital contributions (2) 6,794 4,923 Scorpio LR1 Pool Ltd. pool working capital contributions (1) 6,600 6,600 Working capital contributions to Scorpio Pools 45,694 42,973 Deposits for scrubbers (3) 25,080 12,221 Deposits for BWTS (4) 15,356 6,365 Seller's credit on lease financed vessels (5) 9,352 9,087 Investment in BWTS supplier (4) 1,751 1,751 Deferred drydock costs on bareboat chartered-in vessels (6) — 2,813 $ 97,233 $ 75,210 |
Accounts payable (Tables)
Accounts payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of the components of accounts payable | The following table depicts the components of our accounts payable as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Scorpio Ship Management S.A.M. (SSM) $ 3,868 $ 545 Scorpio Handymax Tanker Pool Limited 384 12 Scorpio Services Holding Limited (SSH) 360 409 Scorpio LR1 Pool Limited 131 51 Scorpio Commercial Management S.A.M. (SCM) 81 389 Scorpio LR2 Pool Limited 23 2 Amounts due to a port agent - related party 20 62 Accounts payable to related parties 4,867 1,470 Suppliers 10,487 10,395 $ 15,354 $ 11,865 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of the components of accrued expenses | The following table depicts the components of our accrued expenses as of June 30, 2019 and December 31, 2018 : As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Accrued expenses to a related party port agent $ 331 $ 398 Accrued expenses to SSM 88 287 Accrued expenses to Scorpio MR Pool Limited 54 — Accrued expenses to Scorpio LR1 Pool Limited 8 — Accrued expenses to Scorpio LR2 Pool Limited 3 — Accrued expenses to SCM 2 — Accrued expenses to Scorpio Handymax Tanker Pool Limited 1 — Accrued expenses to related parties 487 685 Suppliers 12,854 9,147 Accrued interest 9,401 9,202 Accrued short-term employee benefits 6,102 2,430 Other accrued expenses 331 1,508 $ 29,175 $ 22,972 The balance in suppliers as of June 30, 2019 and December 31, 2018 also includes amounts due to suppliers for costs that have been capitalized as part of each vessel's drydock, scrubber installation or BWTS installation. The payments of these costs are reflected as investing cash outflows within the unaudited condensed consolidated statement of cash flows. $5.7 million of the aggregate change in accrued expenses from December 31, 2018 to June 30, 2019 relates to increases in amounts due to suppliers for drydock, scrubber installation or BWTS installation. |
Current and long-term debt (Tab
Current and long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Schedule of Detailed Information about Current and Long-term Debt | The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2019. Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 10.1110 June 5, 2019 $ 0.10 10.1494 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2019 The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2022: Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 25.4799 June 5, 2019 $ 0.10 25.5767 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2022. The following is a roll forward of the activity within debt (current and non-current), by facility, for the six months ended June 30, 2019 : Activity Balance as of June 30, 2019 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2018 Drawdowns Repayments Other Activity (1) Carrying Value as of June 30, 2019 Current Non-Current KEXIM Credit Facility $ 299,300 $ — $ (16,825 ) $ — $ 282,475 $ 33,650 $ 248,825 ABN AMRO Credit Facility 100,508 — (4,278 ) — 96,230 8,553 87,677 ING Credit Facility 144,176 — (6,368 ) — 137,808 12,738 125,070 2018 NIBC Credit Facility 34,851 — (1,617 ) — 33,234 3,230 30,004 2017 Credit Facility 144,765 — (6,632 ) — 138,133 13,266 124,867 Credit Agricole Credit Facility 96,211 — (4,283 ) 416 92,344 7,768 84,576 ABN / K-Sure Credit Facility 46,832 — (1,925 ) 376 45,283 3,123 42,160 Citibank / K-Sure Credit Facility 97,609 — (4,208 ) 957 94,358 6,564 87,794 ABN / SEB Credit Facility 114,825 — (5,750 ) — 109,075 11,500 97,575 Ocean Yield Lease Financing 158,757 — (5,246 ) 97 153,608 10,696 142,912 CMBFL Lease Financing 61,198 — (2,454 ) 93 58,837 4,729 54,108 BCFL Lease Financing (LR2s) 97,454 — (3,737 ) 289 94,006 7,434 86,572 CSSC Lease Financing 251,832 — (8,655 ) (401 ) 242,776 18,088 224,688 BCFL Lease Financing (MRs) 98,831 — (5,408 ) — 93,423 11,391 82,032 2018 CMBFL Lease Financing 136,543 — (5,058 ) — 131,485 10,113 121,372 $116.0 Million Lease Financing 112,674 — (3,243 ) — 109,431 6,892 102,539 AVIC Lease Financing 139,103 — (5,896 ) — 133,207 11,794 121,413 China Huarong Lease Financing 137,250 — (6,750 ) — 130,500 13,500 117,000 $157.5 Million Lease Financing 152,086 — (7,072 ) — 145,014 14,142 130,872 COSCO Lease Financing 84,150 — (3,850 ) — 80,300 7,700 72,600 IFRS 16 - Leases - Three MR — 50,715 (3,345 ) 293 47,663 7,046 40,617 IFRS 16 - Leases - Seven Handymax — 24,194 (3,784 ) — 20,410 13,662 6,748 Unsecured Senior Notes Due 2020 53,750 — — — 53,750 53,750 — Unsecured Senior Notes Due 2019 57,500 — (57,500 ) — — — — Convertible Senior Notes due 2019 142,180 — (2,266 ) 2,794 142,708 142,708 — Convertible Senior Notes due 2022 171,469 — — 4,201 175,670 — 175,670 $ 2,933,854 $ 74,909 $ (176,150 ) $ 9,115 $ 2,841,728 $ 434,037 $ 2,407,691 Less: deferred financing fees (23,539 ) (107 ) — 4,363 (19,283 ) (2,097 ) (17,186 ) Total $ 2,910,315 $ 74,802 $ (176,150 ) $ 13,478 $ 2,822,445 $ 431,940 $ 2,390,505 (1) Relates to non-cash accretion or amortization of (i) debt or lease obligations assumed as part of the merger with Navig8 Product Tankers Inc., which were recorded at fair value on the closing dates, (ii) accretion of our Convertible Senior Notes due 2019 and Convertible Senior Notes due 2022 and (iii) amortization and write-offs of deferred financing fees. The following table depicts the components of financial expenses for the six months ended June 30, 2019 : For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Interest expense on debt (1) $ 82,898 $ 66,797 Accretion of Convertible Senior Notes due 2019 and 2022 6,995 6,435 Amortization of deferred financing fees 4,088 6,191 Accretion of premiums and discounts on assumed debt (2) 1,827 1,909 Write-off of deferred financing fees (3) 275 7,035 Total financial expenses $ 96,083 $ 88,367 |
Common shares (Tables)
Common shares (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of activity for awards of restricted stock | The following is a summary of activity for awards of restricted stock that have been granted under the Plan during the six months ended June 30, 2019 . Number of Shares Weighted Average Grant Date Fair Value Outstanding and non-vested, December 31, 2018 3,359,887 $ 30.05 Granted 220,250 24.93 Vested (199,788 ) 77.45 Forfeited (2,500 ) 48.07 Outstanding and non-vested, June 30, 2019 3,377,849 $ 26.89 |
Summary of future stock compensation expense | Assuming that all the restricted stock will vest, the stock compensation expense in future periods, including that related to restricted stock issued in prior periods will be: In thousands of U.S. dollars Employees Directors Total For the period July 1, 2019 through December 31, 2019 $ 12,213 $ 549 $ 12,762 For the year ending December 31, 2020 19,918 539 20,457 For the year ending December 31, 2021 12,870 119 12,989 For the year ending December 31, 2022 5,940 — 5,940 For the year ending December 31, 2023 1,799 — 1,799 For the year ending December 31, 2024 157 — 157 $ 52,897 $ 1,207 $ 54,104 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The table below shows key management remuneration for the six months ended June 30, 2019 and 2018: For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Short-term employee benefits (salaries) $ 5,191 $ 2,748 Share-based compensation (1) 11,071 10,365 Total $ 16,262 $ 13,113 (1) Represents the amortization of restricted stock issued under the Plan as described in Note 17. Transactions with entities controlled by the Lolli-Ghetti family (herein referred to as related party affiliates) in the unaudited condensed consolidated statements of income or loss and balance sheets are as follows: For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Pool revenue (1) Scorpio LR2 Pool Limited $ 131,945 $ 90,689 Scorpio MR Pool Limited 123,427 117,172 Scorpio Handymax Tanker Pool Limited 51,916 41,803 Scorpio LR1 Pool Limited 35,130 22,721 Voyage expenses (2) (192 ) (805 ) Vessel operating costs (3) (15,908 ) (17,044 ) Administrative expenses (4) (6,315 ) (6,290 ) (1) These transactions relate to revenue earned in the Scorpio Pools. The Scorpio Pools are related party affiliates. When our vessels are in the Scorpio Pools, SCM, the pool manager, charges fees of $300 per vessel per day with respect to our LR1/Panamax and Aframax vessels, $250 per vessel per day with respect to our LR2 vessels, and $325 per vessel per day with respect to each of our Handymax and MR vessels, plus a commission of 1.50% on gross revenue per charter fixture. These are the same fees that SCM charges other vessels in these pools, including third party owned vessels. In September 2018, we entered into an agreement with SCM whereby SCM reimbursed a portion of the commissions that SCM charges the Company’s vessels to effectively reduce such to 0.85% of gross revenue per charter fixture, effective from September 1, 2018 and ending on June 1, 2019. (2) Related party expenditures included within voyage expenses in the unaudited condensed consolidated statements of income or loss consist of the following: ◦ Expenses due to SCM, a related party affiliate, for commissions related to the commercial management services provided by SCM under the commercial management agreement for vessels that are not in one of the Scorpio Pools. SCM’s services include securing employment, in the spot market and on time charters, for our vessels. When not in one of the Scorpio Pools, each vessel pays (i) flat fees of $250 per day for LR1/Panamax and LR2/Aframax vessels and $300 per day for Handymax and MR vessels and (ii) commissions of 1.25% of their gross revenue per charter fixture. These expenses are included in voyage expenses in the unaudited condensed consolidated statements of income or loss. In September 2018, we entered into an agreement with SCM whereby SCM reimbursed a portion of the commissions that SCM charges the Company’s vessels to effectively reduce such to 0.85% of gross revenue per charter fixture, effective from September 1, 2018 and ending on June 1, 2019. • No voyage expenses were charged by a related party port agent during the six months ended June 30, 2019 . Voyage expenses of $25,747 were charged by a related party port agent during the six months ended June 30, 2018 . SSH has a majority equity interest in a port agent that provides supply and logistical services for vessels operating in its regions. (3) Related party expenditures included within vessel operating costs in the unaudited condensed consolidated statements of income or loss consist of the following: • Technical management fees of $15.0 million and $14.8 million charged by SSM, a related party affiliate, during the six months ended June 30, 2019 and 2018 , respectively. SSM’s services include day-to-day vessel operations, performing general maintenance, monitoring regulatory and classification society compliance, customer vetting procedures, supervising the maintenance and general efficiency of vessels, arranging the hiring of qualified officers and crew, arranging and supervising drydocking and repairs, purchasing supplies, spare parts and new equipment for vessels, appointing supervisors and technical consultants, and providing technical support. SSM administers the payment of salaries to our crew on our behalf. The crew wages that were administered by SSM (and disbursed through related party subcontractors of SSM) were $62.5 million and $63.3 million during the six months ended June 30, 2019 and 2018, respectively. SSM's fixed annual technical management fee is $175,000 per vessel plus certain itemized expenses in the technical management agreement. • Insurance related expenses of $2.0 million incurred through a related party insurance broker during the six months ended June 30, 2018 . The amounts recorded reflect the amortization of the policy premiums, which are paid directly to the broker, who then remits the premiums to the underwriters. In 2016, an Executive Officer of the Company acquired a minority interest, which in 2018 increased to a majority interest, in an insurance broker which arranges hull and machinery and war risk insurance for certain of our owned and finance leased vessels. This broker has arranged such policies for the Company since 2010 and the extent of the coverage and the manner in which the policies are priced did not change as a result of this transaction. Accordingly, all amounts charged by this insurance broker during the six months ended June 30, 2018 were on an arms-length basis. In September 2018, the Executive Officer disposed of his interest in the insurance broker in its entirety to a third party not affiliated with the Company. • Vessel operating expenses of $0.9 million and $0.3 million charged by a related party port agent during the six months ended June 30, 2019 and 2018 , respectively. SSH has a majority equity interest in a port agent that provides supply and logistical services for vessels operating in its regions. (4) We have an Amended Administrative Services Agreement with SSH for the provision of administrative staff, office space, and administrative services, including accounting, legal compliance, financial and information technology services. SSH is a related party to us. We reimburse SSH for direct or indirect expenses that are incurred on our behalf. SSH also arranges vessel sales and purchases for us. The services provided to us by SSH may be sub-contracted to other entities within the Scorpio group of companies, or Scorpio. The expenses incurred under this agreement were as follows, and were recorded in general and administrative expenses in the unaudited condensed consolidated statement of income or loss. • The expense for the six months ended June 30, 2019 of $6.3 million included (i) administrative fees of $5.5 million charged by SSH, (ii) restricted stock amortization of $0.6 million , which relates to the issuance of an aggregate of 221,900 shares of restricted stock to SSH employees for no cash consideration pursuant to the Plan, and (iii) the reimbursement of expenses of $0.1 million to SSH and $0.1 million to SCM. • The expense for the six months ended June 30, 2018 of $6.3 million included (i) administrative fees of $5.5 million charged by SSH, (ii) restricted stock amortization of $0.8 million , which relates to the issuance of an aggregate of 114,400 shares of restricted stock to SSH employees for no cash consideration pursuant to the Plan, and (iii) the reimbursement of expenses of $23,848 . We had the following balances with related party affiliates, which have been included in the unaudited condensed consolidated balance sheets: As of In thousands of U.S. dollars June 30, 2019 December 31, 2018 Assets: Accounts receivable (due from the Scorpio Pools) (1) $ 52,200 $ 66,178 Accounts receivable and prepaid expenses (SSM) (2) 2,712 2,461 Accounts receivable and prepaid expenses (SCM) (3) 1,220 2,511 Other assets (pool working capital contributions) (4) 45,694 42,973 Liabilities: Accounts payable and accrued expenses (SSM) (5) 3,956 832 Accounts payable and accrued expenses (owed to the Scorpio Pools) 605 66 Accounts payable and accrued expenses (SSH) 360 409 Accounts payable and accrued expenses (related party port agent) 351 459 Accounts payable and accrued expenses (SCM) 83 389 |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Information about our reportable segments for the six months ended June 30, 2019 and 2018 is as follows: For the six months ended June 30, 2019 In thousands of U.S. dollars LR1 Handymax LR2 MR Reportable segments subtotal Corporate and eliminations Total Vessel revenue $ 35,177 $ 55,176 $ 132,856 $ 123,426 $ 346,635 $ — $ 346,635 Vessel operating costs (13,851 ) (23,717 ) (46,411 ) (54,173 ) (138,152 ) — (138,152 ) Voyage expenses (24 ) (1,164 ) (206 ) (228 ) (1,622 ) — (1,622 ) Charterhire — (4,256 ) 271 (414 ) (4,399 ) — (4,399 ) Depreciation - owned or finance leased vessels (9,598 ) (9,044 ) (36,270 ) (33,271 ) (88,183 ) — (88,183 ) Depreciation - right of use assets — (3,929 ) — (4,101 ) (8,030 ) — (8,030 ) General and administrative expenses (583 ) (1,039 ) (1,857 ) (2,310 ) (5,789 ) (25,451 ) (31,240 ) Financial expenses — — — — — (96,083 ) (96,083 ) Financial income 107 11 22 264 404 5,439 5,843 Other expenses, net — — — — — (13 ) (13 ) Segment income or loss $ 11,228 $ 12,038 $ 48,405 $ 29,193 $ 100,864 $ (116,108 ) $ (15,244 ) For the six months ended June 30, 2018 In thousands of U.S. dollars LR1 Handymax LR2 MR Reportable segments subtotal Corporate and eliminations Total Vessel revenue $ 23,611 $ 48,237 $ 100,066 $ 126,327 $ 298,241 $ — $ 298,241 Vessel operating costs (14,781 ) (24,163 ) (45,736 ) (55,224 ) (139,904 ) — (139,904 ) Voyage expenses (573 ) (235 ) (2,966 ) (598 ) (4,372 ) — (4,372 ) Charterhire — (10,308 ) (4,652 ) (20,209 ) (35,169 ) — (35,169 ) Depreciation (9,565 ) (9,020 ) (36,010 ) (32,952 ) (87,547 ) — (87,547 ) General and administrative expenses (593 ) (1,116 ) (1,924 ) (2,430 ) (6,063 ) (20,909 ) (26,972 ) Merger transaction related costs — — — — — (271 ) (271 ) Financial expenses — — — — — (88,367 ) (88,367 ) Loss on exchange of convertible senior notes — — — — — (16,968 ) (16,968 ) Financial income 39 8 10 255 312 418 730 Other expenses, net — (46 ) — — (46 ) (50 ) (96 ) Segment income or loss $ (1,862 ) $ 3,357 $ 8,788 $ 15,169 $ 25,452 $ (126,147 ) $ (100,695 ) |
Vessel revenue (Tables)
Vessel revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Revenue Sources | Revenue Sources For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Pool revenue $ 342,505 $ 272,436 Time charter revenue 2,551 18,558 Voyage revenue (spot market) 1,579 7,247 $ 346,635 $ 298,241 |
Crewing costs (Tables)
Crewing costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Crewing cost [Abstract] | |
Crewing cost [Table Text Block] | The following table depicts the components of our crew expenses, including crew benefits, during the six months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, In thousands of US dollars 2019 2018 Short term crew benefits (i.e. wages, victualing, insurance) $ 74,854 $ 75,807 Other crew related costs 9,145 9,770 83,999 85,577 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases 1 [Abstract] | |
explanation of difference between operating lease commitments disclosed applying IAS 17 and lease liabilities recognized at date of initial application of IFRS 16 [Table Text Block] | The following table bridges operating lease commitments at December 31, 2018 to IFRS 16 lease liabilities at January 1, 2019 In thousands of U.S. dollars Operating leases commitments disclosed at December 31, 2018 $ 65,439 Discounting effect relating to the lease liability recorded upon transition to IFRS 16 (10,120 ) Less: leases with terms of less than 12 months at the date of transition to IFRS 16, which were recognized as charterhire expense during the six months ended June 30, 2019. (4,605 ) IFRS 16 - lease liabilities recognized at January 1, 2019 $ 50,714 Of which are: IFRS 16 - current lease liabilities $ 6,523 IFRS 16 - non-current lease liabilities $ 44,191 |
Lease and non lease components [Table Text Block] | The following table summarizes the lease and non-lease components of revenue from time charter-out and pool revenue during the six months ended June 30, 2019 and 2018 . These figures are not readily quantifiable as the Company's contracts (with the Scorpio pools or under time charter-out arrangements) do not separate these components. The Company does not view its pool and time charter-out revenue as two separate streams of revenue. Nevertheless, we have estimated these amounts by reference to (i) third party, published time charter rates for the lease component, and (ii) an approximation of the fair market value of vessel operating expenses for the non-lease component. For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Lease component of revenue from time charter-out and pool revenue $ 191,523 $ 140,183 Non-lease component of revenue from time charter-out and pool revenue 153,533 150,810 $ 345,056 $ 290,993 |
Terms of time chartered-out vessels [Table Text Block] | The following table summarizes the terms of our time chartered-out vessels that were in place during the six months ended June 30, 2019 . Name Year built Type Delivery Date to the Charterer Charter Expiration Rate ($/ day) 1 STI Pimlico 2014 Handymax February-16 March-19 $ 18,000 2 STI Poplar 2014 Handymax January-16 February-19 $ 18,000 3 STI Rose 2015 LR2 February-16 February-19 $ 28,000 |
Schedule of operating leases and future minimum lease payments | he obligations under these agreements will be repaid as follows: As of In thousands of U.S. dollars June 30, 2019 Less than 1 year $ 24,066 1 - 5 years 45,395 5+ years 8,200 Total $ 77,661 Discounting effect 9,589 Lease liability $ 68,072 Bareboat Chartered-In Vessels The following table depicts our time or bareboat chartered-in vessel commitments during the six months ended June 30, 2019 : Name Year built Vessel class Charter type Delivery (1) Charter Expiration Rate ($/ day) Active as of June 30, 2019 1 Silent 2007 Handymax Bareboat March-19 March-20 6,300 (2) 2 Single 2007 Handymax Bareboat March-19 March-20 6,300 (2) 3 Star I 2007 Handymax Bareboat March-19 March-20 6,300 (2) 4 Steel 2008 Handymax Bareboat March-19 March-21 6,300 (3) 5 Sky 2008 Handymax Bareboat March-19 March-21 6,300 (3) 6 Stone I 2008 Handymax Bareboat March-19 March-21 6,300 (3) 7 Style 2008 Handymax Bareboat March-19 March-21 6,300 (3) 8 STI Beryl 2013 MR Bareboat April-17 April-25 8,800 (4) 9 STI Le Rocher 2013 MR Bareboat April-17 April-25 8,800 (4) 10 STI Larvotto 2013 MR Bareboat April-17 April-25 8,800 (4) (1) Represents delivery date or estimated delivery date. (2) In March 2019, we entered into a new bareboat charter-in agreement on a previously bareboat chartered-in vessel. The term of the agreement is for one year at a bareboat rate of $6,300 per day. (3) In March 2019, we entered into a new bareboat charter-in agreement on a previously bareboat chartered-in vessel. The term of the agreement is for two years at a bareboat rate of $6,300 per day. (4) 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 $4.35 million per vessel was retained by the buyer and will either be applied to the purchase price of each vessel if a purchase option is exercised, or refunded to us at the expiration of the agreement. Time charter that expired during the six months ended June 30, 2019 Name Year built Vessel class Delivery Charter Expiration Rate ($/ day) Miss Benedetta 2012 MR Mar-18 Jan-19 14,000 |
Schedule of operating leases by lessor | The future undiscounted 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 In thousands of U.S. dollars June 30, 2019 December 31, 2018 Less than 1 year $ — $ 2,581 1 - 5 years — — 5+ years — — Total $ — $ 2,581 |
Disclosure of quantitative information about right-of-use assets [text block] | The following is the activity of the Right of use assets starting with the recognition of the assets on January 1, 2019 through June 30, 2019 : In thousands of U.S. dollars Vessels Drydock (2) Total As of January 1, 2019 48,466 2,635 51,101 Additions (1) 24,195 — 24,195 Depreciation - right of use assets (7,736 ) (294 ) (8,030 ) As of June 30, 2019 64,925 2,341 67,266 (1) Additions relate to seven vessels that commenced bareboat charter-in arrangements in March 2019 for $6,300 per day. (2) Drydock costs for bareboat chartered-in vessels are depreciated over the shorter of the lease term or the period until the next scheduled drydock. On this basis, the drydock costs incurred for these vessels is being depreciated separately. These costs were recorded as Other non-current assets as of December 31, 2018 and were reclassified to Right of use assets upon the adoption of IFRS 16 - Leases, on January 1, 2019. The following table summarizes the interest expense recognized in the unaudited condensed consolidated statements of income or loss and principal payments recognized in the unaudited condensed consolidated cash flow statements for the six months ended June 30, 2019 relating to lease liabilities. In thousands of U.S. dollars Six months ended June 30, 2019 Amounts recognized in unaudited condensed consolidated statements of income or loss Interest expense on IFRS 16 - lease liabilities $ 1,776 Amount recognized in unaudited condensed consolidated cash flow statements Principal repayments on IFRS 16 - lease liabilities $ 7,129 The following is the activity of the Right of use assets starting with the recognition of the assets on January 1, 2019 through June 30, 2019 : In thousands of U.S. dollars Vessels Drydock (2) Total As of January 1, 2019 48,466 2,635 51,101 Additions (1) 24,195 — 24,195 Depreciation - right of use assets (7,736 ) (294 ) (8,030 ) As of June 30, 2019 64,925 2,341 67,266 |
Financial expenses (Tables)
Financial expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Financial Expenses | The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2019. Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 10.1110 June 5, 2019 $ 0.10 10.1494 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2019 The table below details the dividends declared during the six months ended June 30, 2019 and the corresponding effect to the conversion rate of the Convertible Senior Notes due 2022: Record Date Dividends per share Share Adjusted Conversion Rate (1) March 13, 2019 $ 0.10 25.4799 June 5, 2019 $ 0.10 25.5767 (1) Per $1,000 principal amount of the Convertible Senior Notes due 2022. The following is a roll forward of the activity within debt (current and non-current), by facility, for the six months ended June 30, 2019 : Activity Balance as of June 30, 2019 consists of: In thousands of U.S. dollars Carrying Value as of December 31, 2018 Drawdowns Repayments Other Activity (1) Carrying Value as of June 30, 2019 Current Non-Current KEXIM Credit Facility $ 299,300 $ — $ (16,825 ) $ — $ 282,475 $ 33,650 $ 248,825 ABN AMRO Credit Facility 100,508 — (4,278 ) — 96,230 8,553 87,677 ING Credit Facility 144,176 — (6,368 ) — 137,808 12,738 125,070 2018 NIBC Credit Facility 34,851 — (1,617 ) — 33,234 3,230 30,004 2017 Credit Facility 144,765 — (6,632 ) — 138,133 13,266 124,867 Credit Agricole Credit Facility 96,211 — (4,283 ) 416 92,344 7,768 84,576 ABN / K-Sure Credit Facility 46,832 — (1,925 ) 376 45,283 3,123 42,160 Citibank / K-Sure Credit Facility 97,609 — (4,208 ) 957 94,358 6,564 87,794 ABN / SEB Credit Facility 114,825 — (5,750 ) — 109,075 11,500 97,575 Ocean Yield Lease Financing 158,757 — (5,246 ) 97 153,608 10,696 142,912 CMBFL Lease Financing 61,198 — (2,454 ) 93 58,837 4,729 54,108 BCFL Lease Financing (LR2s) 97,454 — (3,737 ) 289 94,006 7,434 86,572 CSSC Lease Financing 251,832 — (8,655 ) (401 ) 242,776 18,088 224,688 BCFL Lease Financing (MRs) 98,831 — (5,408 ) — 93,423 11,391 82,032 2018 CMBFL Lease Financing 136,543 — (5,058 ) — 131,485 10,113 121,372 $116.0 Million Lease Financing 112,674 — (3,243 ) — 109,431 6,892 102,539 AVIC Lease Financing 139,103 — (5,896 ) — 133,207 11,794 121,413 China Huarong Lease Financing 137,250 — (6,750 ) — 130,500 13,500 117,000 $157.5 Million Lease Financing 152,086 — (7,072 ) — 145,014 14,142 130,872 COSCO Lease Financing 84,150 — (3,850 ) — 80,300 7,700 72,600 IFRS 16 - Leases - Three MR — 50,715 (3,345 ) 293 47,663 7,046 40,617 IFRS 16 - Leases - Seven Handymax — 24,194 (3,784 ) — 20,410 13,662 6,748 Unsecured Senior Notes Due 2020 53,750 — — — 53,750 53,750 — Unsecured Senior Notes Due 2019 57,500 — (57,500 ) — — — — Convertible Senior Notes due 2019 142,180 — (2,266 ) 2,794 142,708 142,708 — Convertible Senior Notes due 2022 171,469 — — 4,201 175,670 — 175,670 $ 2,933,854 $ 74,909 $ (176,150 ) $ 9,115 $ 2,841,728 $ 434,037 $ 2,407,691 Less: deferred financing fees (23,539 ) (107 ) — 4,363 (19,283 ) (2,097 ) (17,186 ) Total $ 2,910,315 $ 74,802 $ (176,150 ) $ 13,478 $ 2,822,445 $ 431,940 $ 2,390,505 (1) Relates to non-cash accretion or amortization of (i) debt or lease obligations assumed as part of the merger with Navig8 Product Tankers Inc., which were recorded at fair value on the closing dates, (ii) accretion of our Convertible Senior Notes due 2019 and Convertible Senior Notes due 2022 and (iii) amortization and write-offs of deferred financing fees. The following table depicts the components of financial expenses for the six months ended June 30, 2019 : For the six months ended June 30, In thousands of U.S. dollars 2019 2018 Interest expense on debt (1) $ 82,898 $ 66,797 Accretion of Convertible Senior Notes due 2019 and 2022 6,995 6,435 Amortization of deferred financing fees 4,088 6,191 Accretion of premiums and discounts on assumed debt (2) 1,827 1,909 Write-off of deferred financing fees (3) 275 7,035 Total financial expenses $ 96,083 $ 88,367 |
(Loss) _ earnings per share (Ta
(Loss) / earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings per share [abstract] | |
Schedule of basic and diluted (loss) / earnings per share | The calculation of both basic and diluted loss per share is based on net loss attributable to equity holders of the parent and weighted average outstanding shares of: For the six months ended June 30, In thousands of U.S. dollars except for share data 2019 2018 Net loss attributable to equity holders of the parent - basic $ (15,244 ) $ (100,695 ) Convertible Senior Notes interest expense — — Convertible Senior Notes deferred financing amortization — — Net loss attributable to equity holders of the parent - diluted $ (15,244 ) $ (100,695 ) Basic weighted average number of shares 48,109,924 30,891,470 Effect of dilutive potential basic shares: Restricted stock — — Convertible Senior Notes — — — — Diluted weighted average number of shares 48,109,924 30,891,470 Loss Per Share: Basic $ (0.32 ) $ (3.26 ) Diluted $ (0.32 ) $ (3.26 ) |
Financial instruments - finan_2
Financial instruments - financial and other risks (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Fair Values and Carrying Values of Financial Liabilities | The fair values and carrying values of our financial instruments at June 30, 2019 and December 31, 2018 , respectively, are shown in the table below. Categories of Financial Instruments As of June 30, 2019 As of December 31, 2018 Amounts in thousands of U.S. dollars Fair value Carrying Value Fair value Carrying Value Financial assets Cash and cash equivalents (1) $ 467,219 $ 467,219 $ 593,652 $ 593,652 Restricted cash (2) 12,294 12,294 12,285 12,285 Accounts receivable (3) 56,469 56,469 69,718 69,718 Investment in BWTS supplier (4) 1,751 1,751 1,751 1,751 Working capital contributions to Scorpio Pools (5) 45,694 45,694 42,973 42,973 Seller's credit on sale leaseback vessels (6) 9,352 9,352 9,087 9,087 Financial liabilities Accounts payable (7) $ 15,354 $ 15,354 $ 11,865 $ 11,865 Accrued expenses (7) 29,175 29,175 22,972 22,972 Secured bank loans (8) 1,018,638 1,018,638 1,066,452 1,066,452 Finance lease liability (9) 1,363,932 1,363,932 1,420,381 1,420,381 Unsecured Senior Notes Due 2020 (10) 54,524 53,750 52,584 53,750 Unsecured Senior Notes Due 2019 (10) — — 58,029 57,500 Convertible Senior Notes due 2019 (11) 142,708 142,708 140,267 145,000 Convertible Senior Notes due 2022 (11) 210,865 203,500 163,842 203,500 IFRS 16 - Lease liabilities (12) 68,072 68,072 — — (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) We consider the value of our minority interest in our BWTS supplier (as described in Note 5) to be a Level 3 fair value measurement, as this supplier is a private company and the value has been determined based on unobservable market data (i.e. the proceeds that we would receive if we exercised the put option set forth in the agreement in full). Moreover, we consider that its carrying value approximates fair value given that the value of this investment is contractually limited to the strike prices set forth in the put option that was granted to the Company and the call option that was granted to the supplier. The difference in the aggregate value of the investment, based on the spread between the exercise prices of the put and call options, is $0.6 million . (5) Non-current working capital contributions to the Scorpio Pools are repaid, without interest, upon a vessel’s exit from the pool. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within Other Assets on the consolidated balance sheets. We consider that their carrying values approximate fair value given that the amounts due are contractually fixed based on the terms of each pool agreement. (6) The seller's credit on lease financed vessels represents the present value of the deposits of $4.35 million per vessel ( $13.1 million in aggregate) that was retained by the buyer as part of the sale and operating leasebacks of STI Beryl , STI Le Rocher and STI Larvotto , which is described in Note 5. This deposit 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. This deposit has been recorded as a financial asset measured at amortized cost. The present value of this deposit has been calculated based on the interest rate that is implied in the leases, and the carrying value will accrete over the life of the lease using the effective interest method, through interest income, until expiration. We consider that its carrying value approximates fair value given that its value is contractually fixed based on the terms of each lease. (7) 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. (8) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $10.3 million and $12.6 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (9) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. These amounts are shown net of $8.7 million and $9.5 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (10) The carrying value of our Unsecured Senior Notes Due 2020 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 $0.3 million and $0.5 million of unamortized deferred financing fees on our unaudited condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018. Our Unsecured Senior Notes Due 2020 are quoted on the New York Stock Exchange under the symbols 'SBNA'. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange. (11) The carrying value of our Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 shown in the table above are their face value. The liability components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Long-term debt on the unaudited condensed consolidated balance sheet as of June 30, 2019 . The equity components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Additional paid-in capital on the unaudited condensed consolidated balance sheet, net of $1.9 million , of unamortized deferred financing fees. These instruments are traded in inactive markets and are valued based on quoted prices on the recent trading activity. Accordingly, we consider its fair value to be a Level 2 measurement. (12) The carrying values of our IFRS 16 - Leases, lease liabilities are measured at present value of the minimum lease payments over the lease term, discounted at the Company's incremental borrowing rate. We consider that the carrying value approximates fair value because the interest rates on these instruments approximate market interest rates. Accordingly, we consider their fair value to a Level 2 measurement. |
Fair Values and Carrying Values of Financial Assets | The fair values and carrying values of our financial instruments at June 30, 2019 and December 31, 2018 , respectively, are shown in the table below. Categories of Financial Instruments As of June 30, 2019 As of December 31, 2018 Amounts in thousands of U.S. dollars Fair value Carrying Value Fair value Carrying Value Financial assets Cash and cash equivalents (1) $ 467,219 $ 467,219 $ 593,652 $ 593,652 Restricted cash (2) 12,294 12,294 12,285 12,285 Accounts receivable (3) 56,469 56,469 69,718 69,718 Investment in BWTS supplier (4) 1,751 1,751 1,751 1,751 Working capital contributions to Scorpio Pools (5) 45,694 45,694 42,973 42,973 Seller's credit on sale leaseback vessels (6) 9,352 9,352 9,087 9,087 Financial liabilities Accounts payable (7) $ 15,354 $ 15,354 $ 11,865 $ 11,865 Accrued expenses (7) 29,175 29,175 22,972 22,972 Secured bank loans (8) 1,018,638 1,018,638 1,066,452 1,066,452 Finance lease liability (9) 1,363,932 1,363,932 1,420,381 1,420,381 Unsecured Senior Notes Due 2020 (10) 54,524 53,750 52,584 53,750 Unsecured Senior Notes Due 2019 (10) — — 58,029 57,500 Convertible Senior Notes due 2019 (11) 142,708 142,708 140,267 145,000 Convertible Senior Notes due 2022 (11) 210,865 203,500 163,842 203,500 IFRS 16 - Lease liabilities (12) 68,072 68,072 — — (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) We consider the value of our minority interest in our BWTS supplier (as described in Note 5) to be a Level 3 fair value measurement, as this supplier is a private company and the value has been determined based on unobservable market data (i.e. the proceeds that we would receive if we exercised the put option set forth in the agreement in full). Moreover, we consider that its carrying value approximates fair value given that the value of this investment is contractually limited to the strike prices set forth in the put option that was granted to the Company and the call option that was granted to the supplier. The difference in the aggregate value of the investment, based on the spread between the exercise prices of the put and call options, is $0.6 million . (5) Non-current working capital contributions to the Scorpio Pools are repaid, without interest, upon a vessel’s exit from the pool. For all owned vessels, we assume that these contributions will not be repaid within 12 months and are thus classified as non-current within Other Assets on the consolidated balance sheets. We consider that their carrying values approximate fair value given that the amounts due are contractually fixed based on the terms of each pool agreement. (6) The seller's credit on lease financed vessels represents the present value of the deposits of $4.35 million per vessel ( $13.1 million in aggregate) that was retained by the buyer as part of the sale and operating leasebacks of STI Beryl , STI Le Rocher and STI Larvotto , which is described in Note 5. This deposit 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. This deposit has been recorded as a financial asset measured at amortized cost. The present value of this deposit has been calculated based on the interest rate that is implied in the leases, and the carrying value will accrete over the life of the lease using the effective interest method, through interest income, until expiration. We consider that its carrying value approximates fair value given that its value is contractually fixed based on the terms of each lease. (7) 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. (8) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. Accordingly, we consider their fair value to be a Level 2 measurement. These amounts are shown net of $10.3 million and $12.6 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (9) 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 (i) the interest rates on these instruments change with, or approximate, market interest rates and (ii) the credit risk of the Company has remained stable. These amounts are shown net of $8.7 million and $9.5 million of unamortized deferred financing fees as of June 30, 2019 and December 31, 2018 , respectively. (10) The carrying value of our Unsecured Senior Notes Due 2020 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 $0.3 million and $0.5 million of unamortized deferred financing fees on our unaudited condensed consolidated balance sheet as of June 30, 2019 and December 31, 2018. Our Unsecured Senior Notes Due 2020 are quoted on the New York Stock Exchange under the symbols 'SBNA'. We consider their fair values to be Level 1 measurements due to their quotation on an active exchange. (11) The carrying value of our Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 shown in the table above are their face value. The liability components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Long-term debt on the unaudited condensed consolidated balance sheet as of June 30, 2019 . The equity components of the Convertible Senior Notes due 2019 and Convertible Senior Notes 2022 have been recorded within Additional paid-in capital on the unaudited condensed consolidated balance sheet, net of $1.9 million , of unamortized deferred financing fees. These instruments are traded in inactive markets and are valued based on quoted prices on the recent trading activity. Accordingly, we consider its fair value to be a Level 2 measurement. (12) The carrying values of our IFRS 16 - Leases, lease liabilities are measured at present value of the minimum lease payments over the lease term, discounted at the Company's incremental borrowing rate. We consider that the carrying value approximates fair value because the interest rates on these instruments approximate market interest rates. Accordingly, we consider their fair value to a Level 2 measurement. |
General information and signi_3
General information and significant accounting policies - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2019vessel | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Variability of lease revenue | 100.00% | |
Number of vessels | 109 | |
Property, plant and equipment not subject to operating leases [member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 109 | |
Handymax [Member] | Property, plant and equipment not subject to operating leases [member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 14 | |
MR [Member] | Property, plant and equipment not subject to operating leases [member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 45 | |
LR1 [Member] | Property, plant and equipment not subject to operating leases [member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 12 | |
LR2 [Member] | Property, plant and equipment not subject to operating leases [member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 38 | |
Retained earnings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of Vessels Operating in the Spot Market | 2 | |
Propert, plant and equipment subject to IFRS Lease Liability [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 10 | |
Propert, plant and equipment subject to IFRS Lease Liability [Member] | Handymax [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 7 | |
Propert, plant and equipment subject to IFRS Lease Liability [Member] | MR [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Number of vessels | 3 |
General information and signi_4
General information and significant accounting policies Adoption of New and Amended International Financial Reporting Standards (IFRS) (Details) $ in Thousands | Jan. 01, 2018USD ($) | [1] | Mar. 31, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | [2] | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Equity Adjusted For Cumulative Effect Of New Accounting Principle In Period Of Adoption | $ (2,249) | $ 4 | ||||||||
Variability of lease revenue | 100.00% | |||||||||
Number of bareboat chartered-in vessels one year | 3 | |||||||||
Right-of-use assets | $ 67,266 | $ 51,101 | $ 0 | |||||||
Lease liabilities | 68,072 | 50,700 | ||||||||
Accumulated deficit | ||||||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Number of Vessels Operating in the Spot Market | 2 | |||||||||
Equity Adjusted For Cumulative Effect Of New Accounting Principle In Period Of Adoption | (2,249) | [1] | $ 4 | $ 4 | ||||||
Vessels [member] | ||||||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||||||
Right-of-use assets | $ 64,925 | $ 48,466 | ||||||||
[1] | Reflects the impact of the adoption of IFRS 16 - Leases, which was effective for annual periods beginning on January 1, 2019. Refer to Note 1 for further discussion. | |||||||||
[2] | Reflects the impact of the adoption of IFRS 15 - Revenue from Contracts with Customers, which was effective for annual periods beginning on January 1, 2018. Refer to Note 1 for further discussion. |
Prepaid expenses and other as_3
Prepaid expenses and other assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | ||
Prepaid expenses from related parties | $ 2,712 | $ 2,461 |
Prepaid interest | 6,535 | 6,870 |
Prepaid insurance | 4,373 | 4,449 |
Third party - prepaid vessel operating expenses | 651 | 712 |
Other prepaid expenses | 1,574 | 1,179 |
Current prepayments and other current assets | 15,845 | 15,671 |
SSM [Member] | Other related parties [member] | ||
Disclosure of transactions between related parties [line items] | ||
SSM - prepaid vessel operating expenses | $ 2,712 | $ 2,461 |
Accounts receivable - Summary o
Accounts receivable - Summary of Accounts Receivable (Details) - USD ($) | Sep. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of transactions between related parties [line items] | |||
Insurance receivables | $ 1,499,000 | $ 204,000 | |
Freight and time charter receivables | 237,000 | 22,000 | |
Other receivables | 1,241,000 | 786,000 | |
Accounts receivable | 56,469,000 | 69,718,000 | |
Navig8 Group Pools [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Freight and time charter receivables | 72,000 | 17,000 | |
Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 53,420,000 | 68,689,000 | |
Other related parties [member] | Scorpio MR Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 30,800,000 | 33,288,000 | |
Other related parties [member] | Scorpio LR2 Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 13,720,000 | 24,563,000 | |
Other related parties [member] | Scorpio LR1 Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 3,895,000 | 3,705,000 | |
Other related parties [member] | Scorpio Handymax Tanker Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 3,785,000 | 4,559,000 | |
Other related parties [member] | Scorpio Aframax Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 0 | 63,000 | |
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Related party receivables | 1,220,000 | 2,511,000 | |
Commission on gross revenue, per charter fixture | 0.85% | ||
Impairment loss recognised in profit or loss, trade receivables | $ 0 | $ 0 |
Vessels - Operating vessels and
Vessels - Operating vessels and drydock rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | $ 3,997,789 |
Property, plant and equipment | 3,955,446 |
Cost [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | 4,555,454 |
Additions | 45,840 |
Property, plant and equipment | 4,601,294 |
Accumulated depreciation and impairment [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | (557,665) |
Charge for the period | (88,183) |
Property, plant and equipment | (645,848) |
Vessels [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | 3,962,659 |
Property, plant and equipment | 3,918,712 |
Vessels [member] | Cost [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | 4,469,102 |
Additions | 35,279 |
Property, plant and equipment | 4,504,381 |
Vessels [member] | Accumulated depreciation and impairment [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | (506,443) |
Charge for the period | (79,226) |
Property, plant and equipment | (585,669) |
Drydock [Member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | 35,130 |
Property, plant and equipment | 36,734 |
Drydock [Member] | Cost [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | 86,352 |
Additions | 10,561 |
Property, plant and equipment | 96,913 |
Drydock [Member] | Accumulated depreciation and impairment [member] | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment | (51,222) |
Charge for the period | (8,957) |
Property, plant and equipment | $ (60,179) |
Vessels - Summary of cost capit
Vessels - Summary of cost capitalized during the period (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Interest Capitalized | $ 1,300 | |
Drydock [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Drydock Expenses | 9,511 | |
Notional of component of scrubber cost | 1,050 | |
Total drydock cost | 10,561 | |
Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Scrubber Cost | 22,975 | |
BWTS cost | 7,327 | |
Other equipment cost | 3,725 | |
Interest Capitalized | 1,252 | $ 200 |
Vessel additions | 35,279 | |
Handymax [Member] | Drydock [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Drydock Expenses | 2,746 | |
Notional of component of scrubber cost | 0 | |
Total drydock cost | 2,746 | |
Handymax [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Scrubber Cost | 0 | |
BWTS cost | 4,091 | |
Other equipment cost | 584 | |
Interest Capitalized | 136 | |
Vessel additions | 4,811 | |
MR [Member] | Drydock [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Drydock Expenses | 5,901 | |
Notional of component of scrubber cost | 450 | |
Total drydock cost | 6,351 | |
MR [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Scrubber Cost | 10,604 | |
BWTS cost | 2,975 | |
Other equipment cost | 1,495 | |
Interest Capitalized | 485 | |
Vessel additions | 15,559 | |
LR1 [Member] | Drydock [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Drydock Expenses | 0 | |
Notional of component of scrubber cost | 0 | |
Total drydock cost | 0 | |
LR1 [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Scrubber Cost | 319 | |
BWTS cost | 0 | |
Other equipment cost | 296 | |
Interest Capitalized | 67 | |
Vessel additions | 682 | |
LR2 [Member] | Drydock [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Drydock Expenses | 864 | |
Notional of component of scrubber cost | 600 | |
Total drydock cost | 1,464 | |
LR2 [Member] | Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Scrubber Cost | 12,052 | |
BWTS cost | 261 | |
Other equipment cost | 1,350 | |
Interest Capitalized | 564 | |
Vessel additions | $ 14,227 |
Vessels - Expected future purch
Vessels - Expected future purchase commitment payments (Details) - Ballast Water Treatment Systems and Scrubbers [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | $ 121,687 |
Less than 1 month [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | 24,059 |
1-3 months [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | 29,146 |
3 months to 1 year [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | 55,838 |
1 - 5 years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | 12,644 |
Later than five years [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Contractual commitments for acquisition of property, plant and equipment | $ 0 |
Vessels - Carrying value of ves
Vessels - Carrying value of vessels (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Carrying value of assets [Abstract] | |
Growth rate in freight rates | 2.33% |
Discount rate used | 7.54% |
Number of vessels | 109 |
Impairment loss | $ 0 |
Percentage increase in discount rate used in sensitivity analysis | 1.00% |
Impact on impairment loss with 5% decrease in forecasted time charter rates | 5.00% |
Impairment from increase in discount rate and decrease in forecasted time charter rate | $ 0 |
Vessels - Narrative (Details)
Vessels - Narrative (Details) $ in Millions | 1 Months Ended | 4 Months Ended | 6 Months Ended |
Jul. 31, 2018USD ($)equipment | Nov. 30, 2018USD ($)tanker | Jun. 30, 2019USD ($)tanker | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Sensitivity Analysis, Decrease In Time Charter Rates For Assets With Significant Risk Of Material Adjustments, Impact On Impairment Loss | 5.00% | ||
Growth rate in freight rates | 2.33% | ||
Discount rate used | 7.54% | ||
Number of vessels | 109 | ||
Interest Capitalized | $ 1.3 | ||
Capitalisation rate of borrowing costs eligible for capitalisation | 6.47% | ||
Percentage of equipment cost estimated to require replacement value of vessel | 0.00% | ||
Ballast Water Treatment Systems [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of Equipment | equipment | 55 | ||
Total Consideration to Acquire Property, Plant, and Equipment | $ 36.2 | ||
Ships to be installed with scrubbers [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of vessels | tanker | 77 | ||
Exhaust Gas cleaning System [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total Consideration to Acquire Property, Plant, and Equipment | $ 116.1 | ||
Option exercised [Member] | Exhaust Gas cleaning System [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Number of vessels | tanker | 14 | ||
Total Consideration to Acquire Property, Plant, and Equipment | $ 20.3 | $ 20.3 |
Other non-current assets (Detai
Other non-current assets (Details) $ in Thousands | 1 Months Ended | 4 Months Ended | 6 Months Ended | |||
Jul. 31, 2018USD ($)equipment | Nov. 30, 2018USD ($)tanker | Jun. 30, 2019USD ($)tanker | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Deferred drydock costs on bareboat chartered-in vessels(6) | $ 0 | $ 2,813 | ||||
Other non-current assets | $ 97,233 | 75,210 | ||||
Number of vessels | 109 | |||||
Sellers credit on lease financed vessels | $ 9,352 | 9,087 | ||||
Right-of-use assets | $ 67,266 | $ 51,101 | 0 | |||
Scorpio Handymax Tanker Pool Limited [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Working capital repayment period upon vessel's exit from each pool | 6 months | |||||
Other related parties [member] | Scorpio LR2 Pool Limited [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Non-current receivables due from related parties | $ 32,300 | 31,450 | ||||
Other related parties [member] | Scorpio Handymax Tanker Pool Limited [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Non-current receivables due from related parties | $ 6,794 | 4,923 | ||||
Working capital repayment period upon vessel's exit from each pool | 6 months | |||||
Other related parties [member] | Scorpio LR1 Pool Limited [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Non-current receivables due from related parties | $ 6,600 | 6,600 | ||||
Other related parties [member] | Scorpio Pools [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Non-current receivables due from related parties | 45,694 | 42,973 | ||||
Exhaust Gas cleaning System [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Deposits on property, plant and equipment | 25,080 | 12,221 | ||||
Payments to acquire property, plant, and equipment | $ 116,100 | |||||
Vessels [member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Number of scrubbers | tanker | 77 | |||||
Right-of-use assets | 64,925 | 48,466 | ||||
Ballast Water Treatment Systems [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Deposits on property, plant and equipment | 15,356 | 6,365 | ||||
Payments to acquire property, plant, and equipment | $ 36,200 | |||||
Number of equipment | equipment | 55 | |||||
Deposits for purchase of property, plant, and equipment and minority interest | 10,200 | |||||
Aggregate difference in investment fair value between put and call option exercise prices | 600 | |||||
Drydock [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Right-of-use assets | 2,341 | $ 2,635 | ||||
STI Beryl, STI Le Rocher, STI Larvotto [Member] | Vessels [member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Sale leaseback transaction, aggregate amount | 13,100 | 13,100 | ||||
Sale leaseback transaction, deposit per vessel | 4,350 | 4,350 | ||||
Accretion of lease financed vessels | 300 | $ 300 | ||||
Third Party Supplier [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Cash flows used in obtaining control of subsidiaries or other businesses, classified as investing activities | $ 1,800 | $ 1,800 | ||||
Period after investment acquired for which put option is exercisable | 1 year | |||||
Period after investment acquired for which call option is exercisable | 2 years | |||||
Third Party Supplier [Member] | Ballast Water Treatment Systems [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Investment in ballast water treatment system supplier | $ 1,751 | $ 1,751 | ||||
Option exercised [Member] | Exhaust Gas cleaning System [Member] | ||||||
Disclosure Of Other Non-Current Assets [Line Items] | ||||||
Number of vessels | tanker | 14 | |||||
Payments to acquire property, plant, and equipment | $ 20,300 | $ 20,300 |
Accounts payable (Details)
Accounts payable (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Payable | ||
Accounts payable settlement days | 90 days | |
Interest charged on accounts payable | $ 0 | |
Change in amounts due to suppliers for drydock, scrubber installation or ballast water treatment installation | 2,300,000 | |
Suppliers | 10,487,000 | $ 10,395,000 |
Accounts payable | 15,354,000 | 11,865,000 |
Other related parties [member] | ||
Accounts Payable | ||
Related party payables | 4,867,000 | 1,470,000 |
Other related parties [member] | SSM [Member] | ||
Accounts Payable | ||
Related party payables | 3,868,000 | 545,000 |
Other related parties [member] | Scorpio Services Holding Limited (SSH) [Member] | ||
Accounts Payable | ||
Related party payables | 360,000 | 409,000 |
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | ||
Accounts Payable | ||
Related party payables | 81,000 | 389,000 |
Other related parties [member] | Port Agent [Member] | ||
Accounts Payable | ||
Related party payables | 20,000 | 62,000 |
Other related parties [member] | Scorpio LR1 Pool Limited [Member] | ||
Accounts Payable | ||
Related party payables | 131,000 | 51,000 |
Other related parties [member] | Scorpio Handymax Tanker Pool Limited [Member] | ||
Accounts Payable | ||
Related party payables | 384,000 | 12,000 |
Other related parties [member] | Scorpio LR2 Pool Limited [Member] | ||
Accounts Payable | ||
Related party payables | $ 23,000 | $ 2,000 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Change in accrued expenses due to suppliers for drydock, scrubber installation or BWTS | $ 5,700 | |
Suppliers | 12,854 | $ 9,147 |
Accrued interest | 9,401 | 9,202 |
Accrued short-term employee benefits | 6,102 | 2,430 |
Other accrued expenses | 331 | 1,508 |
Accrued expenses | 29,175 | 22,972 |
Other related parties [member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 487 | 685 |
Other related parties [member] | Port Agent [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 331 | 398 |
Other related parties [member] | SSM [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 88 | 287 |
Other related parties [member] | Scorpio MR Pool Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 54 | 0 |
Other related parties [member] | Scorpio LR1 Pool Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 8 | 0 |
Other related parties [member] | Scorpio LR2 Pool Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 3 | 0 |
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | 2 | 0 |
Other related parties [member] | Scorpio Handymax Tanker Pool Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Related party expenses | $ 1 | $ 0 |
Current and long-term debt - Sc
Current and long-term debt - Schedule of debt rollforward by facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Interest expense on borrowings | $ 82,898 | $ 66,797 | ||
Expense Due to Accretion of Convertible Notes | 6,995 | 6,435 | ||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Drawdowns | 0 | 142,025 | ||
Repayments | (166,755) | $ (167,491) | ||
Long-term debt | 1,094,910 | $ 1,192,000 | ||
Convertible Senior Notes Due 2019 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest expense on borrowings | 1,700 | |||
Expense Due to Accretion of Convertible Notes | 2,800 | |||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Repayments | $ (142,700) | |||
Convertible Notes due 2022 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest expense on borrowings | 3,100 | |||
Expense Due to Accretion of Convertible Notes | 4,200 | |||
Gross carrying amount [member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 2,841,728 | 2,933,854 | ||
Drawdowns | 74,909 | |||
Repayments | (176,150) | |||
Other Activity | 9,115 | |||
Carrying Value as of June 30, 2019 | 2,841,728 | |||
Current portion of long-term debt | 434,037 | |||
Long-term debt | 2,407,691 | |||
Gross carrying amount [member] | KEXIM Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 282,475 | 299,300 | ||
Drawdowns | 0 | |||
Repayments | (16,825) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 282,475 | |||
Current portion of long-term debt | 33,650 | |||
Long-term debt | 248,825 | |||
Gross carrying amount [member] | ABN AMRO Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 96,230 | 100,508 | ||
Drawdowns | 0 | |||
Repayments | (4,278) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 96,230 | |||
Current portion of long-term debt | 8,553 | |||
Long-term debt | 87,677 | |||
Gross carrying amount [member] | ING Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 137,808 | 144,176 | ||
Drawdowns | 0 | |||
Repayments | (6,368) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 137,808 | |||
Current portion of long-term debt | 12,738 | |||
Long-term debt | 125,070 | |||
Gross carrying amount [member] | 2018 NIBC Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 33,234 | 34,851 | ||
Drawdowns | 0 | |||
Repayments | (1,617) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 33,234 | |||
Current portion of long-term debt | 3,230 | |||
Long-term debt | 30,004 | |||
Gross carrying amount [member] | 2017 Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 138,133 | 144,765 | ||
Drawdowns | 0 | |||
Repayments | (6,632) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 138,133 | |||
Current portion of long-term debt | 13,266 | |||
Long-term debt | 124,867 | |||
Gross carrying amount [member] | Credit Agricole Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 92,344 | 96,211 | ||
Drawdowns | 0 | |||
Repayments | (4,283) | |||
Other Activity | 416 | |||
Carrying Value as of June 30, 2019 | 92,344 | |||
Current portion of long-term debt | 7,768 | |||
Long-term debt | 84,576 | |||
Gross carrying amount [member] | ABN / K-Sure Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 45,283 | 46,832 | ||
Drawdowns | 0 | |||
Repayments | (1,925) | |||
Other Activity | 376 | |||
Carrying Value as of June 30, 2019 | 45,283 | |||
Current portion of long-term debt | 3,123 | |||
Long-term debt | 42,160 | |||
Gross carrying amount [member] | Citibank / K-Sure Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 94,358 | 97,609 | ||
Drawdowns | 0 | |||
Repayments | (4,208) | |||
Other Activity | 957 | |||
Carrying Value as of June 30, 2019 | 94,358 | |||
Current portion of long-term debt | 6,564 | |||
Long-term debt | 87,794 | |||
Gross carrying amount [member] | ABN / SEB Credit Facility [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 109,075 | 114,825 | ||
Drawdowns | 0 | |||
Repayments | (5,750) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 109,075 | |||
Current portion of long-term debt | 11,500 | |||
Long-term debt | 97,575 | |||
Gross carrying amount [member] | Ocean Yield Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 153,608 | 158,757 | ||
Drawdowns | 0 | |||
Repayments | (5,246) | |||
Other Activity | 97 | |||
Carrying Value as of June 30, 2019 | 153,608 | |||
Current portion of long-term debt | 10,696 | |||
Long-term debt | 142,912 | |||
Gross carrying amount [member] | CMBFL Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 58,837 | 61,198 | ||
Drawdowns | 0 | |||
Repayments | (2,454) | |||
Other Activity | 93 | |||
Carrying Value as of June 30, 2019 | 58,837 | |||
Current portion of long-term debt | 4,729 | |||
Long-term debt | 54,108 | |||
Gross carrying amount [member] | BCFL Lease Financing (LR2s) [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 94,006 | 97,454 | ||
Drawdowns | 0 | |||
Repayments | (3,737) | |||
Other Activity | 289 | |||
Carrying Value as of June 30, 2019 | 94,006 | |||
Current portion of long-term debt | 7,434 | |||
Long-term debt | 86,572 | |||
Gross carrying amount [member] | CSSC Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 242,776 | 251,832 | ||
Drawdowns | 0 | |||
Repayments | (8,655) | |||
Other Activity | (401) | |||
Carrying Value as of June 30, 2019 | 242,776 | |||
Current portion of long-term debt | 18,088 | |||
Long-term debt | 224,688 | |||
Gross carrying amount [member] | BCFL Lease Financing (MRs) [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 93,423 | 98,831 | ||
Drawdowns | 0 | |||
Repayments | (5,408) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 93,423 | |||
Current portion of long-term debt | 11,391 | |||
Long-term debt | 82,032 | |||
Gross carrying amount [member] | 2018 CMBFL Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 131,485 | 136,543 | ||
Drawdowns | 0 | |||
Repayments | (5,058) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 131,485 | |||
Current portion of long-term debt | 10,113 | |||
Long-term debt | 121,372 | |||
Gross carrying amount [member] | $116.0 Million Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 109,431 | 112,674 | ||
Drawdowns | 0 | |||
Repayments | (3,243) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 109,431 | |||
Current portion of long-term debt | 6,892 | |||
Long-term debt | 102,539 | |||
Gross carrying amount [member] | AVIC Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 133,207 | 139,103 | ||
Drawdowns | 0 | |||
Repayments | (5,896) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 133,207 | |||
Current portion of long-term debt | 11,794 | |||
Long-term debt | 121,413 | |||
Gross carrying amount [member] | China Huarong Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 130,500 | 137,250 | ||
Drawdowns | 0 | |||
Repayments | (6,750) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 130,500 | |||
Current portion of long-term debt | 13,500 | |||
Long-term debt | 117,000 | |||
Gross carrying amount [member] | $157.5 Million Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 145,014 | 152,086 | ||
Drawdowns | 0 | |||
Repayments | (7,072) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 145,014 | |||
Current portion of long-term debt | 14,142 | |||
Long-term debt | 130,872 | |||
Gross carrying amount [member] | COSCO Lease Financing [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 80,300 | 84,150 | ||
Drawdowns | 0 | |||
Repayments | (3,850) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 80,300 | |||
Current portion of long-term debt | 7,700 | |||
Long-term debt | 72,600 | |||
Gross carrying amount [member] | Leases 3 MR IFRS16 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 47,663 | 0 | ||
Drawdowns | 50,715 | |||
Repayments | (3,345) | |||
Other Activity | 293 | |||
Carrying Value as of June 30, 2019 | 47,663 | |||
Current portion of long-term debt | 7,046 | |||
Long-term debt | 40,617 | |||
Gross carrying amount [member] | Leases 7 Handymax IFRS 16 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 20,410 | 0 | ||
Drawdowns | 24,194 | |||
Repayments | (3,784) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 20,410 | |||
Current portion of long-term debt | 13,662 | |||
Long-term debt | 6,748 | |||
Gross carrying amount [member] | Unsecured Senior Notes Due 2020 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 53,750 | 53,750 | ||
Drawdowns | 0 | |||
Repayments | 0 | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 53,750 | |||
Current portion of long-term debt | 53,750 | |||
Long-term debt | 0 | |||
Gross carrying amount [member] | Unsecured Senior Notes Due 2019 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 0 | 57,500 | ||
Drawdowns | 0 | |||
Repayments | (57,500) | |||
Other Activity | 0 | |||
Carrying Value as of June 30, 2019 | 0 | |||
Current portion of long-term debt | 0 | |||
Long-term debt | 0 | |||
Gross carrying amount [member] | Convertible Senior Notes Due 2019 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 142,708 | 142,180 | ||
Drawdowns | 0 | |||
Repayments | (2,266) | |||
Other Activity | 2,794 | |||
Carrying Value as of June 30, 2019 | 142,708 | |||
Current portion of long-term debt | 142,708 | |||
Long-term debt | 0 | |||
Gross carrying amount [member] | Convertible Notes due 2022 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 175,670 | 171,469 | ||
Drawdowns | 0 | |||
Repayments | 0 | |||
Other Activity | 4,201 | |||
Carrying Value as of June 30, 2019 | 175,670 | |||
Current portion of long-term debt | 0 | |||
Long-term debt | 175,670 | $ 171,500 | ||
Deferred financing fees [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | (19,283) | (23,539) | ||
Drawdowns | (107) | |||
Repayments | 0 | |||
Other Activity | 4,363 | |||
Carrying Value as of June 30, 2019 | (19,283) | |||
Current portion of long-term debt | (2,097) | |||
Long-term debt | (17,186) | |||
Deferred financing fees [Member] | Unsecured Senior Notes Due 2020 [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | 300 | 500 | ||
Carrying Value as of June 30, 2019 | 300 | |||
Net carrying amount [Member] | ||||
Reconciliation Of Changes In Borrowings [Roll Forward] | ||||
Carrying Value as of December 31, 2018 | $ 2,822,445 | 2,910,315 | ||
Drawdowns | 74,802 | |||
Repayments | (176,150) | |||
Other Activity | 13,478 | |||
Carrying Value as of June 30, 2019 | 2,822,445 | |||
Current portion of long-term debt | 431,940 | |||
Long-term debt | $ 2,390,505 |
Current and long-term debt - Co
Current and long-term debt - Convertible senior notes due 2019 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||||
Interest expense on borrowings | $ 82,898,000 | $ 66,797,000 | ||
Expense Due to Accretion of Convertible Notes | 6,995,000 | $ 6,435,000 | ||
Convertible Senior Notes Due 2019 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest expense on borrowings | 1,700,000 | |||
Expense Due to Accretion of Convertible Notes | 2,800,000 | |||
Gross carrying amount [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current borrowings and current portion of non-current borrowings | 434,037,000 | |||
Borrowings | 2,841,728,000 | $ 2,933,854,000 | ||
Gross carrying amount [member] | Convertible Senior Notes Due 2019 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Current borrowings and current portion of non-current borrowings | 142,708,000 | |||
Borrowings | 142,708,000 | $ 142,180,000 | ||
Repayment of Senior Notes | $ 142,700,000 | |||
2015 Securities Repurchase Program [Member] | Convertible Senior Notes Due 2019 [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, Convertible, Repurchased Face Amount | $ 2,290,000 | |||
Borrowings, convertible repurchase average price | 990 | |||
Principal amount | $ 2,270,000 |
Current and long-term debt - _2
Current and long-term debt - Convertible senior notes due 2022 (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Non-current portion | $ 1,094,910 | $ 1,192,000 | |
Interest expense on borrowings | 82,898 | $ 66,797 | |
Expense Due to Accretion of Convertible Notes | 6,995 | $ 6,435 | |
Convertible Senior Notes Due 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest expense on borrowings | 1,700 | ||
Expense Due to Accretion of Convertible Notes | 2,800 | ||
Convertible Notes due 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest expense on borrowings | 3,100 | ||
Expense Due to Accretion of Convertible Notes | 4,200 | ||
Gross carrying amount [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current portion | 2,407,691 | ||
Gross carrying amount [member] | Convertible Senior Notes Due 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current portion | 0 | ||
Gross carrying amount [member] | Convertible Notes due 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current portion | $ 175,670 | $ 171,500 |
Current and long-term debt - _3
Current and long-term debt - Schedule of dividends declared from issuance of the Convertible Notes (Details) | Sep. 10, 2019 | Jun. 05, 2019$ / shares | Mar. 13, 2019$ / shares |
Convertible Senior Notes Due 2019 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Dividends per share (in USD per share) | $ 0.10 | $ 0.10 | |
Convertible conversion rate | 0.01014940 | 0.01011100 | |
Convertible Senior Notes Due 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Dividends per share (in USD per share) | $ 0.10 | $ 0.10 | |
Convertible conversion rate | 0.02566370 | 0.02557670 | 0.02547990 |
Common shares - Narrative (Deta
Common shares - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||||
Jul. 31, 2019USD ($)shares$ / shares | Dec. 31, 2018shares$ / shares | Jun. 30, 2019USD ($)shares$ / shares | Jun. 30, 2018shares | Feb. 01, 2019$ / sharesshares | Dec. 31, 2017shares | |
2013 Equity Incentive Plan [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares reserved for issuance (in shares) | 86,977 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Restricted Stock [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of other equity instruments outstanding in share-based payment arrangement | 3,359,887 | 3,377,849 | ||||
Number of shares issued | 220,250 | |||||
Weighted average grant date fair value, granted (in USD per share) | $ | $ 24.93 | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | Employees [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 230,170 | 112,750 | ||||
Weighted average grant date fair value, granted (in USD per share) | $ | $ 26 | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | Directors [Member] | First vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | Directors [Member] | Second vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | Directors [Member] | Third vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | SSH Employees [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 107,500 | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | SSH Employees [Member] | First vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | |||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | SSH Employees [Member] | Second vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | 33.00% | ||||
Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | SSH Employees [Member] | Third vesting percentage [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Vested shares percentage | 33.00% | 33.00% | ||||
Common stock [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares outstanding (in shares) | 51,397,562 | 51,615,220 | ||||
Common stock, shares issued (in shares) | 51,397,562 | 51,615,220 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Common stock [Member] | 2013 Equity Incentive Plan [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares reserved for issuance (in shares) | 134,893 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Other related parties [member] | Scorpio Services Holding Limited (SSH) [Member] | Restricted Stock [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 221,900 | 114,400 | ||||
NPTI [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Price per share (in USD per share) | $ / shares | $ 40.20 | |||||
Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares outstanding (in shares) | 51,397,562 | 51,615,220 | 33,162,999 | 32,650,754 | ||
Number of shares issued | 220,250 | 512,245 |
Common shares - Vesting schedul
Common shares - Vesting schedule of restricted stock (Details) - 2013 Equity Incentive Plan [Member] - Restricted Stock [Member] | 1 Months Ended | 6 Months Ended |
Dec. 31, 2018 | Jun. 30, 2019 | |
Directors [Member] | First vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | |
Directors [Member] | Second vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | |
Directors [Member] | Third vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | |
SSH Employees [Member] | First vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | |
SSH Employees [Member] | Second vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | 33.00% |
SSH Employees [Member] | Third vesting period [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Award Vesting Rights Percentage1 | 33.00% | 33.00% |
Common shares - Summary of rest
Common shares - Summary of restricted stock awards (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)shares | |
Reconciliation of Share-based Payment Awards in Period [Roll Forward] | |
Number of shares, outstanding and non-vested (in shares) | shares | 3,359,887 |
Issuance of restricted stock, net of forfeitures (in shares) | shares | 220,250 |
Number of shares, vested (in shares) | shares | (199,788) |
Number of shares, forfeited (in shares) | shares | (2,500) |
Number of shares, outstanding and non-vested (in shares) | shares | 3,377,849 |
Weighted average grant date fair value, outstanding and non-vested (in USD per share) | $ | $ 30.05 |
Weighted average grant date fair value, granted (in USD per share) | $ | 24.93 |
Weighted average grant date fair value, vested (in USD per share) | $ | 77.45 |
Weighted average grant date fair value, forfeited (in USD per share) | $ | 48.07 |
Weighted average grant date fair value, outstanding and non-vested (in USD per share) | $ | $ 26.89 |
Common shares - Stock compensat
Common shares - Stock compensation expense (Details) - Restricted Stock [Member] $ in Thousands | Jun. 30, 2019USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expected stock compensation expense, 2019 | $ 12,762 |
Expected stock compensation expense, 2020 | 20,457 |
Expected stock compensation expense, 2021 | 12,989 |
Expected stock compensation expense, 2022 | 5,940 |
Expected stock compensation expense, 2023 | 1,799 |
Expected Stock Compensation expense, 2024 | 157 |
Total expected stock compensation expense | 54,104 |
Employees [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expected stock compensation expense, 2019 | 12,213 |
Expected stock compensation expense, 2020 | 19,918 |
Expected stock compensation expense, 2021 | 12,870 |
Expected stock compensation expense, 2022 | 5,940 |
Expected stock compensation expense, 2023 | 1,799 |
Expected Stock Compensation expense, 2024 | 157 |
Total expected stock compensation expense | 52,897 |
Directors [Member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Expected stock compensation expense, 2019 | 549 |
Expected stock compensation expense, 2020 | 539 |
Expected stock compensation expense, 2021 | 119 |
Expected stock compensation expense, 2022 | 0 |
Expected stock compensation expense, 2023 | 0 |
Expected Stock Compensation expense, 2024 | 0 |
Total expected stock compensation expense | $ 1,207 |
Common shares - Dividend paymen
Common shares - Dividend payments (Details) - $ / shares | Jun. 27, 2019 | Mar. 28, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-Based Payment Arrangements [Abstract] | ||||
Dividends paid per share (in USD per share) | $ 0.10 | $ 0.10 | $ 0.2 | $ 0.20 |
Common shares - Stock and secur
Common shares - Stock and securities repurchase program (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | May 31, 2015 | |
Common stock [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Common shares held in treasury | 6,349,324 | 6,349,294 | ||
Number of shares authorized (in shares) | 150,000,000 | 75,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding (in shares) | 51,615,220 | 51,397,562 | ||
2015 Securities Repurchase Program [Member] | Common stock [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Authorized amount of share repurchase | $ 250,000,000 | |||
Entity's shares acquired (in shares) | 30 | |||
Common stock, par value (in dollars per share) | 17.10 | |||
Stock buyback program, remaining authorized amount | $ 121,600,000 | |||
Convertible Senior Notes Due 2019 [Member] | 2015 Securities Repurchase Program [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Borrowings, Convertible, Repurchased Face Amount | $ 2,290,000 | |||
Borrowings, convertible repurchase average price | 990 | |||
Principal amount | $ 2,270,000 |
Related party transactions - Na
Related party transactions - Narrative (Details) | Sep. 28, 2016 | Jun. 30, 2019USD ($)vessel | Jun. 30, 2018USD ($) |
Disclosure of transactions between related parties [line items] | |||
Key management personnel compensation, post-employment benefits | $ 0 | ||
Administrative Expenses, Related Party Transactions | $ 6,315,000 | $ 6,290,000 | |
Number of vessels | 109 | ||
Scorpio Services Holding Limited (SSH) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Prior fee payable upon any future vessel sale or purchase | 1.00% | ||
Termination fee | $ 0 | ||
Reimbursement of expenses | 100,000 | 0 | |
Administrative Fees, Related Party Transactions | 5,500,000 | 5,500,000 | |
Scorpio Commercial Management SAM (SCM) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Reimbursement of expenses | 100,000 | ||
SSM [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Crew wages | $ 62,500,000 | 63,300,000 | |
Reimbursement of expenses | 0 | ||
STI Esles II and STI Jardins [Member] | Scorpio Services Holding Limited (SSH) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Aggregate management fee | 700,000 | ||
MR [Member] | Construction in progress [member] | SSM [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of vessels | vessel | 8 | ||
Agreement supervision expense | $ 100,000 | ||
Restricted Stock [Member] | Scorpio Services Holding Limited (SSH) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Restricted stock amortization | $ 600,000 | $ 800,000 |
Related party transactions - Re
Related party transactions - Related Party Statement of Income or Loss (Details) | Sep. 01, 2018 | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares |
Disclosure of transactions between related parties [line items] | |||
Voyage expenses | $ (192,000) | $ (805,000) | |
Vessel operating costs | (15,908,000) | (17,044,000) | |
Administrative expenses | $ (6,315,000) | (6,290,000) | |
Restricted Stock [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Issuance of restricted stock, net of forfeitures (in shares) | shares | 220,250 | ||
Handymax [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fees charged by pool manager, per vessel, per day when out of pools | $ 300 | ||
LR1/Panamax [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fees charged by pool manager, per vessel, per day when out of pools | 250 | ||
Other related parties [member] | Scorpio MR Pool Limited [Member] | MR [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Pool revenue | 123,427,000 | 117,172,000 | |
Other related parties [member] | Scorpio LR2 Pool Limited [Member] | LR2 [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Pool revenue | 131,945,000 | 90,689,000 | |
Other related parties [member] | Scorpio Handymax Tanker Pool Limited [Member] | Handymax [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Pool revenue | 51,916,000 | 41,803,000 | |
Other related parties [member] | Scorpio LR1 Pool Limited [Member] | LR1 [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Pool revenue | $ 35,130,000 | 22,721,000 | |
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Commission on gross revenue per charter fixture when included in pools, rercent | 1.50% | ||
Commission on gross revenue per charter fixture when excluded in pools, rercent | 1.25% | ||
Reimbursement of expenses | $ 100,000 | ||
Commission on gross revenue, per charter fixture | 0.85% | ||
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | LR2 [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fees charged by pool manager, per vessel, per day when in pools | 250 | ||
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | Handymax [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fees charged by pool manager, per vessel, per day when in pools | 325 | ||
Other related parties [member] | Scorpio Commercial Management SAM (SCM) [Member] | LR1/Panamax [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Fees charged by pool manager, per vessel, per day when in pools | 300 | ||
Other related parties [member] | SSM [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Vessel operating costs | (175,000) | ||
Technical management fee | 15,000,000 | 14,800,000 | |
Reimbursement of expenses | 0 | ||
Other related parties [member] | Insurance Broker [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Insurance related expenses | 2,000,000 | ||
Other related parties [member] | Port Agent [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Voyage expenses | (25,747) | ||
Vessel operating costs | (900,000) | (300,000) | |
Other related parties [member] | Scorpio Services Holding Limited (SSH) [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Administrative Fees, Related Party Transactions | 5,500,000 | 5,500,000 | |
Reimbursement of expenses | 100,000 | 0 | |
Other related parties [member] | Scorpio Services Holding Limited (SSH) [Member] | Restricted Stock [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Restricted stock amortization | $ 600,000 | $ 800,000 | |
Issuance of restricted stock, net of forfeitures (in shares) | shares | 221,900 | 114,400 |
Related party transactions - _2
Related party transactions - Related Party Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 |
Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable and prepaid expenses | $ 53,420 | $ 68,689 | |
Scorpio Pools [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable and prepaid expenses | 52,200 | 66,178 | |
Working capital contributions to Scorpio Group Pools | 45,694 | 42,973 | |
Accounts payable and accrued expenses | 605 | 66 | |
Working capital contributions, related parties | 19,200 | 22,900 | |
SSM [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable and prepaid expenses | 2,712 | 2,461 | |
Accounts payable and accrued expenses | 3,956 | 832 | |
Scorpio Commercial Management SAM (SCM) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable and prepaid expenses | 1,220 | 2,511 | |
Accounts payable and accrued expenses | 83 | 389 | |
Commission on gross revenue, per charter fixture | 0.85% | ||
Port Agent [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts payable and accrued expenses | 351 | 459 | |
Scorpio Services Holding Limited (SSH) [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts payable and accrued expenses | $ 360 | 409 | |
Scorpio Handymax Tanker Pool Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Working capital repayment period upon vessel's exit from each pool | 6 months | ||
Scorpio Handymax Tanker Pool Limited [Member] | Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable and prepaid expenses | $ 3,785 | 4,559 | |
Working capital contributions to Scorpio Group Pools | $ 6,794 | $ 4,923 | |
Working capital repayment period upon vessel's exit from each pool | 6 months |
Related party transactions - Ke
Related party transactions - Key Management Renumeration (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)payment | Jun. 30, 2018USD ($) | |
Related Party [Abstract] | ||
Short-term employee benefits (salaries) | $ 5,191,000 | $ 2,748,000 |
Share-based compensation | 11,071,000 | 10,365,000 |
Total | $ 16,262,000 | $ 13,113,000 |
Post-employment benefits, number of payments | payment | 1 | |
Post-employment benefits, number of months of salary paid | 2 months | |
Key management personnel compensation, post-employment benefits | $ 0 |
Segment reporting - Information
Segment reporting - Information About Reportable Segments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of operating segments [line items] | ||
Vessel revenue | $ 346,635 | $ 298,241 |
Vessel operating costs | (138,152) | (139,904) |
Voyage expenses | (1,622) | (4,372) |
Charterhire | (4,399) | (35,169) |
Depreciation - owned or finance leased vessels | (88,183) | (87,547) |
Depreciation, right-of-use assets | (8,030) | 0 |
Depreciation - right of use assets | (31,240) | (26,972) |
Merger transaction related costs | 0 | (271) |
Financial expenses | (96,083) | (88,367) |
Loss on exchange of Convertible Senior Notes | 0 | (16,968) |
Realized loss on derivative financial instruments | (16,968) | |
Financial income | 5,843 | 730 |
Other expenses, net | (13) | (96) |
Net loss | (15,244) | (100,695) |
Reportable segments [member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 346,635 | 298,241 |
Vessel operating costs | (138,152) | (139,904) |
Voyage expenses | (1,622) | (4,372) |
Charterhire | (4,399) | (35,169) |
Depreciation - owned or finance leased vessels | (88,183) | (87,547) |
Depreciation, right-of-use assets | (8,030) | |
Depreciation - right of use assets | (5,789) | (6,063) |
Merger transaction related costs | 0 | |
Financial expenses | 0 | 0 |
Realized loss on derivative financial instruments | 0 | |
Financial income | 404 | 312 |
Other expenses, net | 0 | (46) |
Net loss | 100,864 | 25,452 |
Reportable segments [member] | Handymax [Member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 55,176 | 48,237 |
Vessel operating costs | (23,717) | (24,163) |
Voyage expenses | (1,164) | (235) |
Charterhire | (4,256) | (10,308) |
Depreciation - owned or finance leased vessels | (9,044) | (9,020) |
Depreciation, right-of-use assets | (3,929) | |
Depreciation - right of use assets | (1,039) | (1,116) |
Merger transaction related costs | 0 | |
Financial expenses | 0 | 0 |
Realized loss on derivative financial instruments | 0 | |
Financial income | 11 | 8 |
Other expenses, net | 0 | (46) |
Net loss | 12,038 | 3,357 |
Reportable segments [member] | LR2 [Member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 132,856 | 100,066 |
Vessel operating costs | (46,411) | (45,736) |
Voyage expenses | (206) | (2,966) |
Charterhire | 271 | (4,652) |
Depreciation - owned or finance leased vessels | (36,270) | (36,010) |
Depreciation, right-of-use assets | 0 | |
Depreciation - right of use assets | (1,857) | (1,924) |
Merger transaction related costs | 0 | |
Financial expenses | 0 | 0 |
Realized loss on derivative financial instruments | 0 | |
Financial income | 22 | 10 |
Other expenses, net | 0 | 0 |
Net loss | 48,405 | 8,788 |
Reportable segments [member] | MR [Member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 123,426 | 126,327 |
Vessel operating costs | (54,173) | (55,224) |
Voyage expenses | (228) | (598) |
Charterhire | (414) | (20,209) |
Depreciation - owned or finance leased vessels | (33,271) | (32,952) |
Depreciation, right-of-use assets | (4,101) | |
Depreciation - right of use assets | (2,310) | (2,430) |
Merger transaction related costs | 0 | |
Financial expenses | 0 | 0 |
Realized loss on derivative financial instruments | 0 | |
Financial income | 264 | 255 |
Other expenses, net | 0 | 0 |
Net loss | 29,193 | 15,169 |
Reportable segments [member] | LR1 [Member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 35,177 | 23,611 |
Vessel operating costs | (13,851) | (14,781) |
Voyage expenses | (24) | (573) |
Charterhire | 0 | 0 |
Depreciation - owned or finance leased vessels | (9,598) | (9,565) |
Depreciation, right-of-use assets | 0 | |
Depreciation - right of use assets | (583) | (593) |
Merger transaction related costs | 0 | |
Financial expenses | 0 | 0 |
Realized loss on derivative financial instruments | 0 | |
Financial income | 107 | 39 |
Other expenses, net | 0 | 0 |
Net loss | 11,228 | (1,862) |
Corporate and eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Vessel revenue | 0 | 0 |
Vessel operating costs | 0 | 0 |
Voyage expenses | 0 | 0 |
Charterhire | 0 | 0 |
Depreciation - owned or finance leased vessels | 0 | 0 |
Depreciation, right-of-use assets | 0 | |
Depreciation - right of use assets | (25,451) | (20,909) |
Merger transaction related costs | (271) | |
Financial expenses | (96,083) | (88,367) |
Realized loss on derivative financial instruments | (16,968) | |
Financial income | 5,439 | 418 |
Other expenses, net | (13) | (50) |
Net loss | $ (116,108) | $ (126,147) |
Vessel revenue (Details)
Vessel revenue (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)vessel | Jun. 30, 2018USD ($)vessel | |
Analysis of income and expense [abstract] | ||
Number Of Ships That Earned Revenue In Long Term Time Charter Contracts | vessel | 3 | 5 |
Revenue from rendering of services | $ 342,505 | $ 272,436 |
Revenue From Time Charter Agreements | 2,551 | 18,558 |
Revenue from contracts with customers | 1,579 | 7,247 |
Revenue | $ 346,635 | $ 298,241 |
Crewing costs (Details)
Crewing costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Crewing cost [Abstract] | ||
Short term crew benefits (i.e. wages, victualing, insurance) | $ 74,854 | $ 75,807 |
Other crew related cost | 9,145 | 9,770 |
Crewing cost | $ 83,999 | $ 85,577 |
Operating Leases - Time and bar
Operating Leases - Time and bareboat chartered-in vessels (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2017 | Mar. 31, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | $ 68,072,000 | $ 50,700,000 | |||
Daily Rate Bareboat Charter | $ 6,300 | ||||
Vessels [member] | STI Beryl, STI Le Rocher, STI Larvotto [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Sale leaseback transaction, deposit per vessel | 4,350,000 | $ 4,350,000 | |||
Vessels [member] | Handymax [Member] | Silent [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Vessels [member] | Handymax [Member] | Single [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Daily Rate Bareboat Charter | 6,300 | ||||
Vessels [member] | Handymax [Member] | Star I [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Daily Rate Bareboat Charter | $ 6,300 | ||||
Vessels [member] | Handymax [Member] | Steel [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Vessels [member] | Handymax [Member] | Sky [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Vessels [member] | Handymax [Member] | Stone I [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Vessels [member] | Handymax [Member] | Style [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 6,300 | ||||
Vessels [member] | MR [Member] | STI Beryl, STI Le Rocher, STI Larvotto [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Sale and leaseback, term of lease | 8 years | ||||
Leaseback, daily rate | $ 8,800 | ||||
Sale leaseback transaction, gross proceeds per vessel | 29,000,000 | ||||
Sale leaseback transaction, deposit per vessel | $ 4,350,000 | ||||
Vessels [member] | MR [Member] | Miss Benedetta [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, expired in current year, daily rate | 14,000 | ||||
Vessels [member] | MR [Member] | STI Beryl [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 8,800 | ||||
Vessels [member] | MR [Member] | STI Le Rocher [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | 8,800 | ||||
Vessels [member] | MR [Member] | STI Larvotto [Member] | |||||
Disclosure of finance lease and operating lease by lessee [line items] | |||||
Lease payments, daily rate | $ 8,800 |
Operating Leases - Future minim
Operating Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2017 | Jun. 30, 2019 | Jan. 01, 2019 | |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum finance lease payments payable | $ 77,661 | ||
Disclosure of maturity analysis of operating lease payments [abstract] | |||
Discounted unguaranteed residual value of assets subject to finance lease | 9,589 | $ 10,120 | |
Lease liabilities | 68,072 | $ 50,700 | |
Less than 1 year [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum finance lease payments payable | 24,066 | ||
1 - 5 years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum finance lease payments payable | 45,395 | ||
Later than five years [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Minimum finance lease payments payable | $ 8,200 | ||
MR [Member] | Vessels [member] | STI Beryl, STI Le Rocher, STI Larvotto [Member] | |||
Disclosure of maturity analysis of operating lease payments [abstract] | |||
Sale and leaseback, term of lease | 8 years |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Leases 1 [Abstract] | |||
Number of vessels bareboat charter agreements | 7 | ||
Number of bareboat chartered-in vessels one year | 3 | ||
Number of bareboat chartered-in vessels two years | 4 | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 6.00% | ||
Minimum lease payments | $ 77,661,000 | ||
Charterhire expense | $ 4,399,000 | $ 35,169,000 | |
Daily Rate Bareboat Charter | $ 6,300 | ||
Variability of lease revenue | 100.00% |
Operating Leases - Chartered-ou
Operating Leases - Chartered-out vessels summary (Details) - Vessels [member] | Jun. 30, 2019USD ($) |
STI Pimlico [Member] | Handymax [Member] | |
Disclosure of finance lease and operating lease by lessor [line items] | |
Operating leases daily rate receivable | $ 18,000 |
STI Poplar [Member] | Handymax [Member] | |
Disclosure of finance lease and operating lease by lessor [line items] | |
Operating leases daily rate receivable | 18,000 |
STI Rose [Member] | LR2 [Member] | |
Disclosure of finance lease and operating lease by lessor [line items] | |
Operating leases daily rate receivable | $ 28,000 |
Operating Leases - Future min_2
Operating Leases - Future minimum lease payments due to Company (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of finance lease and operating lease by lessor [line items] | ||
Minimum lease payments receivable | $ 0 | $ 2,581 |
Less than 1 year [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Minimum lease payments receivable | 0 | 2,581 |
1 - 5 years [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Minimum lease payments receivable | 0 | 0 |
Later than five years [member] | ||
Disclosure of finance lease and operating lease by lessor [line items] | ||
Minimum lease payments receivable | $ 0 | $ 0 |
Operating Leases Activity right
Operating Leases Activity right of us asset (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Interest expense on lease liabilities | $ 1,776,000 | |||
Additions to right-of-use assets | 24,195,000 | |||
Depreciation, right-of-use assets | (8,030,000) | $ 0 | ||
Right-of-use assets | 67,266,000 | $ 51,101,000 | $ 0 | |
Payments of finance lease liabilities, classified as financing activities | 7,129,000 | $ 0 | ||
Vessels [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions to right-of-use assets | 24,195,000 | |||
Depreciation, right-of-use assets | 7,736,000 | |||
Right-of-use assets | 64,925,000 | 48,466,000 | ||
Drydock [Member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions to right-of-use assets | 0 | |||
Depreciation, right-of-use assets | 294,000 | |||
Right-of-use assets | $ 2,341,000 | $ 2,635,000 |
Operating Leases Lease and non
Operating Leases Lease and non lease components (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of leases [Abstract] | ||
Lease component of revenue from time charter-out and pool revenue | $ 191,523 | $ 140,183 |
Non-lease component of revenue from time charter-out and pool revenue | 153,533 | 150,810 |
Total lease and non - lease components of revenue | $ 345,056 | $ 290,993 |
Operating Leases Operating leas
Operating Leases Operating lease commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of leases [Abstract] | |||
Operating leases commitments disclosed at December 31, 2018 | $ 65,439 | ||
Discounting effect relating to the lease liability recorded upon transition to IFRS 16 | $ (9,589) | $ (10,120) | |
Less: leases with terms of less than 12 months at the date of transition to IFRS 16, which were recognized as charterhire expense during the six months ended June 30, 2019. | (4,605) | ||
IFRS 16 - lease liabilities recognized at January 1, 2019 | 68,072 | 50,700 | |
IFRS 16 - current lease liabilities | 20,708 | 6,523 | 0 |
IFRS 16 - non-current lease liabilities | $ 47,364 | $ 44,191 | $ 0 |
Financial expenses - Schedule o
Financial expenses - Schedule of Financial Expenses (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Interest expense on lease liabilities | $ 1,776,000 | |
Interest expense on debt | 82,898,000 | $ 66,797,000 |
Amortization of deferred financing fees | 4,088,000 | 6,191,000 |
Write-offs of deferred financing fees | 275,000 | 7,035,000 |
Accretion of Convertible Notes | 6,995,000 | 6,435,000 |
Accretion of premiums and discounts on assumed debt | 1,827,000 | 1,909,000 |
Total financial expenses | 96,083,000 | 88,367,000 |
Average borrowings | 2,900,000,000 | 2,800,000,000 |
Interest Capitalized | 1,300,000 | |
Convertible Notes due 2019 [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Interest expense on debt | 1,700,000 | |
Write-offs of deferred financing fees | 1,100,000 | |
Accretion of Convertible Notes | 2,800,000 | |
K-Sure Credit Facility [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Write-offs of deferred financing fees | 3,300,000 | |
Ships | 5 | |
Vessels [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Interest Capitalized | $ 1,252,000 | 200,000 |
Acceleration of unamortized fees [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Write-offs of deferred financing fees | $ 2,600,000 |
(Loss) _ earnings per share - S
(Loss) / earnings per share - Schedule of Basic and Diluted (Loss) / Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per share [abstract] | ||
Net loss attributable to equity holders of the parent - basic | $ (15,244) | $ (100,695) |
Convertible Senior Notes interest expense | 0 | 0 |
Convertible Senior Notes deferred financing amortization | 0 | 0 |
Net loss attributable to equity holders of the parent - diluted | $ (15,244) | $ (100,695) |
Basic weighted average number of shares (in shares) | 48,109,924 | 30,891,470 |
Effect of dilutive potential basic shares: | ||
Restricted stock (in shares) | 0 | 0 |
Convertible notes (in shares) | 0 | 0 |
Dilutive shares (in shares) | 0 | 0 |
Diluted weighted average number of shares (in shares) | 48,109,924 | 30,891,470 |
Loss Per Share: | ||
Basic (in USD per share) | $ (0.32) | $ (3.26) |
Diluted (in USD per share) | $ (0.32) | $ (3.26) |
(Loss) _ earnings per share - N
(Loss) / earnings per share - Narrative (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Convertible Debt Securities [Member] | ||
Earnings per share [line items] | ||
Antidilutive securities (in shares) | 6,653,256 | 6,320,243 |
Restricted Stock [Member] | ||
Earnings per share [line items] | ||
Antidilutive securities (in shares) | 3,377,849 | 2,167,474 |
Financial instruments - finan_3
Financial instruments - financial and other risks - Categories of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Additional paid-in capital | $ 2,657,375 | $ 2,648,599 |
Deferred financing fees [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt outstanding | (19,283) | (23,539) |
Secured bank loans [member] | Deferred financing fees [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt outstanding | 10,300 | 12,600 |
Finance Lease [Member] | Deferred financing fees [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt outstanding | 8,700 | 9,500 |
Unsecured Senior Notes due 2020 [Member] | Deferred financing fees [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Debt outstanding | 300 | 500 |
Accounts payable [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 15,354 | 11,865 |
Accrued expenses [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 29,175 | 22,972 |
Secured bank loans [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 1,018,638 | 1,066,452 |
Finance Lease [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 1,363,932 | 1,420,381 |
Unsecured Senior Notes due 2020 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 53,750 | 53,750 |
Unsecured Senior Notes Due 2019 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 0 | 57,500 |
Convertible Notes due 2019 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 142,708 | 145,000 |
Convertible Notes due 2022 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, carrying value | 203,500 | 204 |
Cash and cash equivalents [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 467,219 | 593,652 |
Restricted cash [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 12,294 | 12,285 |
Loans and receivables, category [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 56,469 | 69,718 |
Investment in Associates | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 1,751 | 1,751 |
Sale Leaseback Transaction, Deposits [Member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 9,352 | 9,087 |
Reserve of equity component of convertible instruments [member] | Convertible Notes due 2019 [Member] | Deferred financing fees [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Additional paid-in capital | 1,900 | |
Level 1 of fair value hierarchy [member] | Accounts payable [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 15,354 | 11,865 |
Level 1 of fair value hierarchy [member] | Accrued expenses [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 29,175 | 22,972 |
Level 1 of fair value hierarchy [member] | Finance Lease [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 1,363,932 | 1,420,381 |
Level 1 of fair value hierarchy [member] | Unsecured Senior Notes due 2020 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 54,524 | 52,584 |
Level 1 of fair value hierarchy [member] | Unsecured Senior Notes Due 2019 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 0 | 58,029 |
Level 1 of fair value hierarchy [member] | Cash and cash equivalents [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 467,219 | 593,652 |
Level 1 of fair value hierarchy [member] | Restricted cash [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 12,294 | 12,285 |
Level 1 of fair value hierarchy [member] | Loans and receivables, category [member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 56,469 | 69,718 |
Level 1 of fair value hierarchy [member] | Sale Leaseback Transaction, Deposits [Member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 9,352 | 9,087 |
Level 2 of fair value hierarchy [member] | Secured bank loans [member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 1,018,638 | 1,066,452 |
Level 2 of fair value hierarchy [member] | Convertible Notes due 2019 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 142,708 | 140,267 |
Level 2 of fair value hierarchy [member] | Convertible Notes due 2022 [Member] | Financial liabilities at amortised cost, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 210,865 | 163,842 |
Level 2 of fair value hierarchy [member] | Lease liabilities [member] | Lease liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, at fair value | 68 | 0 |
Financial liabilities, carrying value | 68 | 0 |
Level 3 of fair value hierarchy [member] | Investment in Associates | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 1,751 | 1,751 |
Ballast Water Treatment Systems [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Aggregate difference in investment fair value between put and call option exercise prices | 600 | |
STI Beryl, STI Le Rocher, STI Larvotto [Member] | Vessels [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Sale leaseback transaction, deposit per vessel | 4,350 | 4,350 |
Sale leaseback transaction, aggregate amount | 13,100 | 13,100 |
Scorpio Pools [Member] | Receivables Due From Related Party [Member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, carrying value | 45,694 | 42,973 |
Scorpio Pools [Member] | Level 1 of fair value hierarchy [member] | Receivables Due From Related Party [Member] | Loans and receivables, category [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | $ 45,694 | $ 42,973 |
Financial instruments - finan_4
Financial instruments - financial and other risks - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Increase (Decrease) Through Net Proceeds From Follow On Offerings, Equity | $ (100,695) | $ 319,600 |
General and administrative ex_2
General and administrative expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Analysis of income and expense [abstract] | ||
Increase general and administrative expense | $ 4,300 | |
General and administrative expense | $ 31,240 | $ 26,972 |
Subsequent events (Details)
Subsequent events (Details) | Sep. 10, 2019 | Jul. 30, 2019USD ($) | Jun. 05, 2019 | Mar. 13, 2019 | Jul. 31, 2019USD ($)shares$ / shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($)shares$ / shares | Jun. 30, 2018USD ($) | Feb. 01, 2019$ / sharesshares | Dec. 31, 2018$ / shares |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Repayments | $ 166,755,000 | $ 167,491,000 | ||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 0.10 | |||||||||
Common stock [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
2013 Equity Incentive Plan [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Shares reserved for issuance (in shares) | shares | 86,977 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||
2013 Equity Incentive Plan [Member] | Common stock [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Shares reserved for issuance (in shares) | shares | 134,893 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Convertible Notes due 2019 [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Repayments | $ 142,700,000 | |||||||||
Convertible conversion rate | 0.01014940 | 0.01011100 | ||||||||
Convertible Senior Notes Due 2022 [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Convertible conversion rate | 0.02566370 | 0.02557670 | 0.02547990 | |||||||
Borrowings, Increase in conversion rate | 0.00008700 | |||||||||
Restricted Stock [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of shares issued | shares | 220,250 | |||||||||
Weighted average grant date fair value, granted (in USD per share) | $ 24.93 | |||||||||
Employees [Member] | Restricted Stock [Member] | 2013 Equity Incentive Plan [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of shares issued | shares | 230,170 | 112,750 | ||||||||
Weighted average grant date fair value, granted (in USD per share) | $ 26 | |||||||||
Exhaust Gas cleaning System [Member] | ||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||
Number of facilities to partially finance scrubbers | 7 | |||||||||
Commitments increase to liquidity | $ 87,000,000 | |||||||||
Additional Commitments increase to liquidity | $ 35,000,000 |