IMO 2020 Drives Lower Fuel Costs And Creates Additional Demand For Scorpio Tankers, Inc.

At 1035 Capital, our investment strategy is to look for catalysts that positively improve the fundamentals of the companies we invest in. With IMO 2020, Scorpio Tankers (NYSE: STNG) has a significant regulatory catalyst ahead of it that should help increase demand for its services for the long term. Additionally, due to management’s foresight, STNG has the world’s largest, scrubber equipped product tanker fleet which positions the company well to take advantage of lower priced HSFO driven by IMO 2020 implementation. We believe these factors combined with historically low new ship builds places STNG as the best positioned public tanker company to benefit from IMO 2020. We discuss each of these topics and more below.

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