Senior Unsecured Notes Offering

Transcription

1 0 Scorpio Tankers Inc. May 6, 2014 Scorpio Tankers Inc. Senior Unsecured Notes Offering

2 1 Disclaimer Scorpio Tankers Inc. ( Scorpio ) has filed a registration statement (including a prospectus) and a preliminary prospectus supplement with the Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents Scorpio has filed with the SEC for more complete information about Scorpio and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at Alternatively, Scorpio, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the preliminary prospectus supplement if you request it by calling Stifel, Nicolaus & Company, Incorporated at ; Deutsche Bank Securities Inc. at ; or Jefferies & Company, Inc. at

3 2 Offering Summary Issuer: Security: Denomination: Amount: Coupon: [ ]% Scorpio Tankers Inc. Senior Unsecured Notes $25.00 and multiples thereof $[ ] million Maturity: May 15, 2020 Optional Redemption: Listing: Use of Proceeds: Covenants: Bookrunners: Co-Managers Expected Pricing Date: Non-callable for 3 years; callable in whole or in part thereafter at par ($25.00) plus accrued and unpaid interest NYSE General corporate purposes, which may include funding vessel acquisitions The issuer is subject to certain covenants with respect to the Notes, including: Minimum Net Worth Covenant: $650 million Net Worth = Total Assets minus Total Borrowings Net Borrowings cannot equal or exceed 70% of Total Assets Stifel, Deutsche Bank Securities, Jefferies BB&T, Janney, Wunderlich Securities Week of May 5, 2014

4 3 Investment Highlights Modern, fuelefficient fleet Tremendous fleet growth and operating leverage Positive market fundamentals Outstanding access to capital Strategy targets a conservative financial profile World s largest fleet of ECO design product tankers ECO type vessels have substantially lower fuel costs than prior generation vessels Newbuilds contracted at favorable prices, relative to historical averages, and reputable yards Scorpio currently operates a fleet of 20 wholly owned tankers with an average age of 2.8 years and charters-in an additional 28 tankers The Company has contracts for 54 newbuild product tankers which are expected to deliver throughout 2014 (41 vessels) and 2015 (13 vessels) Scorpio manages the fleet in commercial pools that provide substantial leverage in the market and have historically outperformed the charter market Remaining orderbook and yard capacity ensures good supply visibility Increasing U.S. refined product exports combined with rising refinery capacity in Asia / Middle East supports demand Since its IPO in April 2010, Scorpio has raised over $1.3 billion of equity Has secured $1.6 billion in committed debt financing from leading shipping banks Newbuilding program fully funded at March 31, 2014 Commitment towards maintaining a low leverage profile and conservative capital structure Flexibility to manage successfully through shipping cycles and take advantage of strategic growth opportunities Current leverage of 8% with a targeted leverage of 40% - 50%

5 4 Company Overview By mid 2015, Scorpio Tankers Inc. ("Scorpio" or "STNG") will own a fleet of 74 modern eco-design product tankers with an average age of 1.5 (1) at delivery World s largest ECO-spec product tanker company Fleet expected to include 70 fuel efficient (ECO) product tankers with low breakeven rates Currently 28 tankers chartered-in on mainly short term charters which Scorpio intends to reduce in size as newbuilds deliver Owns ~26% of Dorian LPG (DORIAN: Norway OTC) The Company raised equity to fund its fleet growth and remains committed to maintaining low leverage Nine follow-on equity raises since its March 2010 IPO raising $1.3 billion including $1.1 billion since December 2012 Recent purchases in Q3 and Q (8 MR s) with historical investors, including Valero/Ceres and York Capital, included part-payment in STNG Stock Strong relationships with leading ship financing banks and proven track record of raising secured debt at attractive rates $1.4 billion in secured bank debt raised in 2013 newbuilding program is fully funded as of March 31, 2014 Vessels employed in strong Scorpio pools NYSE-listed company (NSYE: STNG) offering NYSE-compliant governance and transparency The Company is headquartered in Monaco, registered in the Marshall Islands and is not subject to US income tax (1) As of June (Includes newbuildings)

6 5 Fleet List (as of May 5, 2014) Owned vessels Q3 & Q Delivery Schedule 2015 Delivery Schedule Name Year DWT Type Name Year DWT Type Name Year DWT Type STI Highlander ,145 Handymax STI Pimlico Jul-14 38,000 HM STI Queens Jan-15 52,000 MR STI Amber ,000 MR STI Benicia (1) Jul-14 52,000 MR STI Battery Jan-15 52,000 MR STI Topaz ,000 MR STI Mythos Jul-14 52,000 MR STI Gramercy Jan-15 52,000 MR STI Ruby ,000 MR STI Elysees Jul ,000 LR2 STI Bronx Feb-15 52,000 MR STI Garnet ,000 MR STI Dama Jul-14 52,000 MR STI Oxford Feb ,000 LR2 STI Onyx ,000 MR STI Hackney Jul-14 38,000 HM STI Pontiac Feb-15 52,000 MR STI Sapphire ,000 MR STI Olivia Aug-14 52,000 MR STI Brooklyn Mar-15 52,000 MR STI Emerald ,000 MR STI Regina Aug-14 52,000 MR STI Connaught Apr ,000 LR2 STI Beryl ,000 MR STI Fulham Aug-14 38,000 HM STI Osceola Apr-15 52,000 MR STI Le Rocher ,000 MR STI Madison Aug ,000 LR2 STI Notting Hill Apr-15 52,000 MR STI Larvotto ,000 MR STI Acton Aug-14 38,000 HM STI Winnie Apr ,000 LR2 STI Fontvieille ,000 MR STI Park Sep ,000 LR2 STI Westminster Jun-15 52,000 MR STI Ville ,000 MR STI Camden Sep-14 38,000 HM STI Seneca Jun-15 52,000 MR STI Duchessa ,000 MR STI Mayfair Sep-14 52,000 MR STI Lauren Jun ,000 LR2 STI Opera ,000 MR STI Battersea Sep-14 38,000 HM STI Texas City (1) ,000 MR STI Yorkville Sep-14 52,000 MR STI Meraux (1) ,000 MR STI Sloane Sep ,000 LR2 STI Harmony ,919 LR1 STI Wembley Oct-14 38,000 HM STI Heritage ,919 LR1 STI Condotti Oct ,000 LR2 Venice ,408 Post-Panamax STI Finchley Oct-14 38,000 HM STI Milwaukee Oct-14 52,000 MR Q1 & Q Delivery Schedule STI Clapham Nov-14 38,000 HM Name Year DWT Type STI Veneto Nov ,000 LR2 STI Chelsea May-14 52,000 MR STI Poplar Nov-14 38,000 HM STI Lexington May-14 52,000 MR STI Tribeca Nov-14 52,000 MR STI San Antonio (1) May-14 52,000 MR STI Soho Dec-14 52,000 MR STI Comandante May-14 38,000 HM STI Hammersmith Dec-14 38,000 HM STI Virtus Jun-14 52,000 MR STI Manhattan Dec-14 52,000 MR STI Aqua Jun-14 52,000 MR STI Rotherhithe Dec-14 38,000 HM STI Venere Jun-14 52,000 MR STI Orchard Dec ,000 LR2 STI Brixton Jun-14 38,000 HM STI Broadway Dec ,000 LR2 STI Venere Jun-14 52,000 MR 20 existing vessels, plus 54 Product Tanker Newbuilds 2014 Fleet (1) 4 MR s TC-OUT to Valero + profit share 1 year, $15.5K/ day & 2 years, $16K/ day)

7 6 Chartered-In Fleet (Short-term Leases) Name Year Type DWT Charter Expiration Option Expiry Rate ($/ day) 1 Jinan 2003 Handymax 37, Apr-15-12,600 2 Kraslava 2007 Handymax 37, May May-15 12,800 3 Krisjanis Valdemars (1) 2007 Handymax 37, Apr-15 13,650 4 Histria Azure 2007 Handymax 40, Apr-15 13,550 5 Histria Coral 2006 Handymax 40, Jul Jul-15 12,800 6 Histria Perla 2005 Handymax 40, Jul Jul-15 12,800 7 Iver Progress 2007 Handymax 37, Mar Mar-16 12,500 8 Iver Prosperity 2007 Handymax 37, Oct Oct-15 12,500 9 STX Ace MR 46, May May-15 14, Targale 2007 MR 49, May May-17 14, Nave Orion 2013 MR 49, Mar Mar-16 14, Gan-Trust 2013 MR 51, Jan Jan-18 16, Usma 2007 MR 52, Jan-15-14, Gan-Triumph 2010 MR 49, May-14-14, SN Federica (2) 2003 LR1 72, May May-16 11, Hellespont Promise 2007 LR1 73, Aug-14 14, FPMC P Eagle (1) 2009 LR1 73, Sep-15-14, King Douglas 2008 LR1 73, Aug Aug-15 14, SN Azzura 2003 LR1 72, Dec-14 13, Hellespont Progress 2006 LR1 73, Mar Mar-17 15, Khawr Aladid 2006 LR2 106, Jul-15-15, FPMC P Hero (1) 2011 LR2 99, Nov May-15 15, FPMC P Ideal (1) 2012 LR2 99, Jul Jan-15 15, Fair Seas 2008 LR2 115, Aug Feb-15 16, Four Sky 2009 LR2 115, Sep-14-16, Densa Alligator 2013 LR2 105, Sep Sep-15 16, Southport 2008 LR2 115, Dec-14-15, Swarna Jayanti 2010 LR2 104, Mar Sep-15 15,000 Total 1,991,091 (1) 50/50 Profit Loss agreement (2) 50/50 Profit Share agreement Provides greater market presence while building fleet

8 7 Investment In Dorian LPG In November 2013, Scorpio Tankers Inc. sold its entire interest (11 VLGC orders & options) in the LPG sector to Dorian LPG Ltd in exchange for newly issued shares. At the time, it represented 30% of Dorian LPG (~40M Shares). Scorpio Tankers also purchased additional shares of Dorian in a private placement At the time of the transaction, the Dorian shares were priced at 14 NOK ($1 USD ~ 6 NOK); today Dorian is currently trading above 21 NOK Dorian LPG has 19 fuel-efficient VLGC newbuildings on order at Hyundai Heavy Industries Co., Ltd. and Daewoo Shipping and Marine Engineering Ltd. to be delivered between Q and Q (1) When fully delivered, they will be one of the industry s largest VLGC fleets (22 VLGCs) and 86% of the VLGC fleet will be ECO vessels (19 VLGC s) (1) In April 2014, Dorian launched its initial public offering with an anticipated offering price for its shares of $ $20.00 after executing a 5-for-1 reverse stock split At the mid-point of the range, Scorpio s shares are valued at $243 million This compares to Scorpio s cost basis of $209.5 million (1) Source: SEC Filings.

9 8 Scorpio Pools and Commercially Managed Fleet Scorpio Commercial Management S.A.M., owned by the family of our CEO, Emanuele Lauro, commercially manages 147 (1) tanker and dry bulk vessels for over a dozen customers; mainly through four pools in the Handymax, MR, LR1 and LR2 segments Representative Customers Scorpio Group s Managed Fleet Class STNG vessels Non-STNG vessels Total Handy MR LR1/Panamax LR2/Aframax Total Oceanbulk (1) Includes vessels to be delivered by Q Lemos Scorpio pools and commercially managed fleet provide economies of scale

10 9 Summary of ECO Based Newbuilding Program Benefits to a new ECO product tanker: Revenue benefits (MRs: Greater than $3,000/ day) due to greater fuel efficiency PLUS Cost benefits (Lower operating expenses, estimated at $500-$750/ day) Intangible benefits (Charterer preferences for a greener vessel) Higher residual value (non-eco vessels expected drop faster in value during the next cycle downturn) Early-mover advantage as among first to order - and among first to stop ordering The Company s product tankers deliver in while new vessel orders available in Large newbuilding program provides scale to STNG in key pools No environmental restriction on where its vessels can trade The Company has the largest independent ECO newbuilding fleet STNG s Competitors cannot replicate its first mover advantage

11 10 Environmental Regulations: A Great Reason to Have an ECO Ship North America Coasts ECA-SOx August 2012, MAX 1.0% US Caribbean ECA-SOx from Jan 2014 North America & US Caribbean ECA s will also be ECA-NOx from 2016 Europe In 2015, W. Coast Norway, might be 0.1% MAX SOx MGO Required at Berth MGO or MDO Required 24 miles from California coastal baseline and at Berth MAX 0.1% SOx ECA Sulfur Limits MAX S0x Global Sulfur Cap MAX S0x As of July % As of January 1, % As of January 1, % As of January 1, % Source: IMO, DNV STNG s newbuildings meet future heightened environmental regulations today

12 ($ Millions) 11 $90 $80 Scorpio s Newbuildings Ordered at Historical Lows Vessel Costs ($ Millions) LR2 LR1 MR Handy High $85 $68 $54 $52 Low $36 $30 $26 $28 Average $57 $47 $38 $35 Today $55 $43 $35 $36 Newbuilding Orders $70 $60 $50 $40 $30 $20 LR2 LR1 MR Handy Source: Clarksons Research Services, May-14

13 12 Scorpio Well Positioned When Rates Recover LR2, LR1, MR, & Handy Daily Time Charter Rates Since 2004 Vessel Class Current Average Max Min Median LR2 $15,392 $28,992 $87,863 $5,584 $26,197 LR1 $21,143 $24,833 $74,498 $2,311 $21,143 Clean MR $10,832 $18,767 $44,505 $4,773 $16,339 Clean Handy $14,743 $21,920 $60,732 $1,971 $17,986 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Feb-04 Jan-05 Dec-05 Nov-06 Oct-07 Sep-08 Aug-09 Jul-10 Jun-11 May-12 Apr-13 Mar-14 LR2 LR1 MR Handy Source: Clarksons Research Services, May-14

14 m. bpd m. bpd m. bpd m. bpd m. bpd 13 Refinery Capacity Expansion According to International Energy Agency ( IEA ), refinery capacity is expected to increase by 7 million barrels a day between ; ~90% will be added in the broader Asian and Middle East regions New low-cost capacity in Asia and Middle East is increasingly forcing rationalization of old high-cost capacity in the West, structurally favoring more long-haul products trade Due to refinery closures (USAC, Caribs, Europe), refined oil products ton mile growth is expected to outpace the demand for refined oil products, increasing the demand for product tankers North America 0.5 Western Europe (0.2) (0.4) (0.6) (0.8) Global Total 0.0 (0.5) (1.0) Middle East Asia (1.0) Refinery capacity is being added further away from consuming regions Source: Clarksons Research Services, IEA

15 Jan-2004 Oct-2004 Jul-2005 Apr-2006 Jan-2007 Oct-2007 Jul-2008 Apr-2009 Jan-2010 Oct-2010 Jul-2011 Apr-2012 Jan-2013 Oct-2013 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 MBPD MBPD 14 The U.S. is Becoming the Major Refined Products Exporter Average U.S. domestic crude oil production has increased from 4.7 MBPD since end 2008 to 7.8 MBPD end 2013 Rising U.S. oil production is spurring calls to lift the congressional restriction on oil exports U.S. Crude production increases along with refinery expansions in U.S. Gulf have lead to product exports from the U.S. rising by 316% since beginning Majority of exports went to Latin America/Caribs U.S. Gulf product exports rising from 460 mbpd in Q4-12 to 2,348 mbpd in Q4-13 (410% increase) The U.S. has become a net exporter of Petroleum Products Exports surpassed Imports by 373M barrels in end 2012 and by 2,260M barrels in end 2013 U.S. Crude Production increased by 3.1 MBPD U.S. Imports / Exports of Petroleum Products US Crude Production Source: EIA Total Exports Total Imports Source: EIA

16 15 Increase In New Routes Leading To Greater Ship Demand M. East-Europe Gas Oil Jet Fuel S. Korea-Japan Gas Oil Gasoline U.S. W.C-S. America Diesel Caribbean-N. America Gasoline Naptha Jet Fuel M. East-F. East Naptha M. East & India- U.S. West Coast Asia-Australia Intra-Asia Gas Oil Naptha Jet Fuel Gas Oil Diesel Map Key: New ROUTES Traditional ROUTES Source: IEA

17 16 Financial Highlights Time Charter Equivalent Revenue (1) Adjusted EBITDA (1) $250,000 $200,000 $150,000 $100,000 $50,000 $0 $202,734 $93,637 $75,229 $72,760 $43, Q Q $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 $34,852 $15,896 $12,715 $11,883 $13, Q Q Fleet Size Dividends per Share $0.100 $0.080 $0.060 $0.040 $0.020 $0.025 $0.035 $0.070 $0.080 $ Q Q $0.000 Q Q Q Q Q Owned Vessels Chartered-in Vessels (1) See appendix (pg. 26) for calculation and reconciliation of non-gaap numbers. Note: Dollars in thousands except for per share data.

18 # of Vessels 17 Scorpio Tankers Fleet Delivery Schedule Q Q Q Q Q Q Q Q Q Q Q MR Handymax LR1 LR2

19 18 Credit Capacity and Newbuilding Program In millions of U.S. dollars Credit Capacity (1) As of April 28, 2014 Amount Outstanding Amount Available 2010 Revolving Credit Facility $47.8 $0.0 STI Credit Facility (2) Credit Facility Newbuilding Credit Facility Credit Facility K-Sure Credit Facility KEXIM Credit Facility Total $329.7 $1,328.2 Cash & Cash Equivalents $151.7 $151.7 Newbuilding Program ($ in millions) As of March 31, 2014 Amount Outstanding Q $347.9 Q Q Q Q Total $1,417.8 Total Credit Capacity and Cash and Cash Equivalents $1, Investment in Dorian is ~$243 million (3) (1) These are estimates only and are subject to change as construction progresses. (2) In April 2014, the Company repaid the outstanding balance under its STI Spirit Credit Facility of $21.4 million as a result of the sale of STI Spirit. (3) Calculated at the mid-point of the $18-$20 IPO range.

20 19 Debt Amortization Profile USDm $1,800 $1,600 Notes from this offering $35 $35 $78 $1,400 $137 $112 $1,200 $197 $1,000 $1,273 $104 $800 $600 $1,603 $422 Notes from this offering $35 $400 $298 $200 $330 $254 $0 Balance 1 Total 2future Total 2Debt 2014 d 2015 e 2016 f 2017 g 2018 h 2019 i 2020 j 2021 k as of April drawdowns 28, 2014 Well-balanced debt amortization schedule at attractive terms

21 20 Investment Highlights Modern, fuelefficient fleet Tremendous fleet growth and operating leverage Positive market fundamentals Outstanding access to capital Strategy targets a conservative financial profile World s largest fleet of ECO design product tankers ECO type vessels have substantially lower fuel costs than prior generation vessels Newbuilds contracted at favorable prices, relative to historical averages, and reputable yards Scorpio currently operates a fleet of 20 wholly owned tankers with an average age of 2.8 years and charters in an additional 28 tankers The Company has contracts for 54 newbuild product tankers which are expected to deliver throughout 2014 (41 vessels) and 2015 (13 vessels) Scorpio manages the fleet in commercial pools that provide substantial leverage in the market and have historically outperformed the charter market Remaining orderbook and yard capacity ensures good supply visibility Increasing U.S. refined product exports combined with rising refinery capacity in Asia / Middle East supports demand Since its IPO in April 2010, Scorpio has raised over $1.3 billion of equity Has secured $1.6 billion in committed debt financing from leading shipping banks Newbuilding program fully funded at March 31, 2014 Commitment towards maintaining a low leverage profile and conservative capital structure Flexibility to manage successfully through shipping cycles and take advantage of strategic growth opportunities Current leverage of 8% with a targeted leverage of 40% - 50%

22 21 Appendix

23 22 Financial Statements Balance Sheet As of As of In thousands of U.S. dollars March 31, 2014 December 31, 2013 March 31, 2014 December 31, 2013 Assets Current liabilities Current assets Bank loans $27,744 $10,453 Cash and cash equivalents $194,987 $78,845 Accounts payable 21,977 20,696 Accounts receivable 84,448 72,542 Accrued expenses 7,940 7,251 Prepaid expenses and other current assets 3,855 2,277 Derivative financial instruments Inventories 4,553 2,857 Bank loan related to vessels held for sale 27,617 21,397 Vessels held for sale 61,410 82,649 Total current liabilities $85,760 $60,486 Total current assets $349,253 $239,170 Non-current liabilities Non-current assets Bank loans $289,273 $135,279 Vessels and drydock $631,385 $530,270 Derivative financial instruments Vessels under construction 649, ,526 Total non-current liabilities $289,324 $135,467 Other assets 30,213 17,907 Investment in associate 209, ,803 Total liabilities $375,084 $195,953 Total non-current assets $1,520,795 $1,407,506 Shareholders equity Total assets $1,870,048 $1,646,676 Issued, authorized and fully paid in share capital: Share capital $2,021 $1,999 Additional paid in capital 1,527,802 1,536,945 Treasury shares (7,938) (7,938) Hedging reserve (188) (212) Accumulated deficit (26,733) (80,071) Total shareholders equity $1,494,964 $1,450,723 Total liabilities and shareholders equity $1,870,048 $1,646,676

24 23 Financial Statements Income Statement For the year ended December 31, For the quarter ended March 31, In thousands of U.S. dollars except per share and share data Revenue Vessel revenue $207,580 $115,381 $82,110 $76,734 $44,924 Operating expenses Vessel operating costs ($40,204) ($30,353) ($31,370) ($13,070) ($7,971) Voyage expenses (4,846) (21,744) (6,881) (3,974) (1,200) Charterhire (115,543) (43,701) (22,750) (40,173) (20,496) Impairment (66,611) Depreciation (23,595) (14,818) (18,460) (5,953) (4,767) General and administrative expenses (25,788) (11,536) (11,637) (10,966) (2,759) Write down of vessels held for sale and loss from sales of vessels (21,187) (10,404) Gain on sale of VLGCs 41,375 51,419 Total operating expenses ($189,788) ($132,556) ($157,709) ($22,717) ($37,193) Operating income / (loss) $17,792 ($17,175) ($75,599) $54,017 $7,731 Other (expense) and income, net Financial expenses ($2,705) ($8,512) ($7,060) ($399) ($1,399) Realized gain/(loss) on derivative financial instruments Unrealized gain/(loss) on derivative financial instruments 567 (1,231) Financial income 1, Share of profit from associate 369 (324) Other expenses, net (158) (97) (119) (47) (15) Total other income/(expense), net (777) (9,362) (7,128) (679) (1,121) Net income / (loss) $17,015 ($26,537) ($82,727) $53,338 $6,610 Earnings / (loss) per share Basic $0.12 ($0.64) ($2.88) $0.28 $0.08 Diluted $0.11 ($0.64) ($2.88) $0.28 $0.08 Basic weighted average shares outstanding 146,504,055 41,413,339 28,704, ,718, ,511,846 Diluted weighted average shares outstanding 148,339,378 41,413,339 28,704, ,718, ,511,846

25 24 Financial Statements Statement of Cash Flows For the year ended December 31, For the quarter ended March 31, In thousands of U.S. dollars Operating activities Net income / (loss) $17,015 ($26,537) ($82,727) $53,338 $6,610 Gain on sale of VLGCs (41,375) (51,419) Write down of vessels held for sale and loss from sales of vessels 21,187 10,404 Depreciation 23,595 14,818 18,460 5,953 4,767 Impairment 66,611 Amortization of restricted stock 13,142 3,490 3,362 6, Amortization of deferred financing fees 332 4, Write off of vessel purchase options 126 Straight-line adjustment for charterhire expense (31) Share of profit from associate (369) 324 Unrealized (gain) / loss on derivative financial instruments (567) 1,231 (47) (44) $33,013 $7,540 $6,902 $15,262 $12,057 Changes in assets and liabilities: Drydock payments ($1,469) ($1,702) ($2,516) ($1,202) (Increase)/decrease in inventories (687) 526 (1,410) (1,700) (719) Increase in accounts receivable (36,104) (16,052) (13,031) (11,906) (11,211) (Increase)/decrease in prepaid expenses and other current assets (823) 547 (1,075) (935) (1,006) (Increase)/decrease in other assets (1,849) 2,443 (1,374) (47) (Decrease)/increase in accounts payable (2,021) 3,966 (954) 3, Increase in accrued expenses 4, ,006 1,759 (88) Interest rate swap termination payment (274) ($38,668) ($9,468) ($19,354) ($9,978) ($13,633) Net cash outflow from operating activities ($5,655) ($1,928) ($12,452) $5,284 ($1,576) Investing activities Acquisition of vessels and payments for vessels under construction ($767,448) ($191,490) ($122,573) ($199,055) ($155,180) Proceeds from disposal of vessels 101, ,950 VLGC installment payments (83,070) Investment in associate (84,583) Net cash outflow from investing activities ($935,101) ($90,155) ($122,573) ($36,105) ($155,180) Financing activities Bank loan repayment ($28,410) ($129,076) ($109,638) ($27,674) ($1,838) Bank loan drawdown 52, , , ,100 34,375 Debt issuance costs (14,693) (3,293) (4,134) (18,345) (343) Gross proceeds from issuance of common stock 983, , , ,037 Equity issuance costs (35,695) (5,950) (5,964) (42) (15,774) Purchase of treasury shares (2,440) (2,851) Dividends paid (24,353) (16,076) Net cash inflow from financing activities $932,436 $142,415 $103,671 $146,963 $481,457 (Decrease)/increase in cash and cash equivalents ($8,320) $50,332 ($31,354) $116,142 $324,701 Cash and cash equivalents at January 1, 87,165 36,833 68,187 78,845 87,165 Cash and cash equivalents at December 31, $78,845 $87,165 $36,833 $194,987 $411,866 Supplemental information: Interest paid $6,497 $6,618 $5,349 $2,669 $1,264

26 25 Capitalization Current Capitalization and Pro-forma for the Notes As of March 31, 2014 ($ in millions) Actual As Adjusted Cash $194,987 $170,367 Current debt: Bank loans $55,361 34,005 Non-current debt: Bank loans 289, ,273 Total debt $344,634 $323,278 Shareholders' equity: Additional paid-in capital 1,527,802 1,527,802 Accumulated deficit (26,733) (26,733) Other equity (6,105) (17,018) Total shareholders' equity $1,494,964 $1,484,051 Total capitalization $1,839,598 $1,807,329 (1) Does not account for fees or other transaction expenses.

27 26 Reconciliation of Non-US GAAP Items Time-Charter Equivalent Revenue ($ in thousands) Q Q Vessel revenue $82,110 $115,381 $207,580 $44,925 $76,734 Voyage expenses (6,881) (21,744) (4,846) (1,200) (3,974) TCE Revenue $75,229 $93,637 $202,734 $43,724 $72,760 Adjusted EBITDA ($ in thousands) Q Q Net income ($82,727) ($26,537) $17,015 $6,610 $53,338 Financial expenses 7,060 8,512 2,705 1, Unrealized gain on derivative financial instruments 1,231 (567) (44) (47) Financial income (51) (35) (1,147) (181) (27) Depreciation 18,460 14,818 23,595 4,767 5,953 Depreciation component of out net loss from associate Amortization of restricted stock 3,362 3,490 13, ,955 Write down of vessels held for sale 0 10,404 21, Impairment 66, Gain on sale of VLCCs (51,419) Gain on sale of VLGCs 0 0 (41,375) 0 0 Adjusted EBITDA $12,715 $11,883 $34,852 $13,051 $15,896