Scorpio Tankers exercises newbuild options at HMD

scorpio tankersFEBRUARY 28, 2013 — Scorpio Tankers Inc. ( NYSE : STNG ) has exercised options with shipbuilder Hyundai Mipo Dockyard Co., Ltd. of South Korea for the construction of four MR Product tankers for approximately $33.0 million each and two Handymax ice class-1A (37,000 dwt) product tankers for approximately $31.25 million each. The MR Product tankers were previously reserved for another owner, and two of these vessels will deliver from the shipyard in the second quarter of 2014 with the third and fourth vessels to be delivered in the third and fourth quarter of 2014. The two Handymax vessels will be delivered early in the third quarter of 2014.

Scorpio says the vessels are a continuation of its existing newbuilding program for fuel-efficient vessels. The newbuildings come with fixed-price options for the construction of four additional Handymax vessels as well as an extension on previously obtained fixed-price options.

Scorpio has a total of 26 newbuilding product tanker orders with HMD and SPP Shipbuilding Co., Ltd. of South Korea which include 20 MR and six Handymax ice class-1A vessels. Two of the newbuildings are expected to be delivered to the company by April 2013 and the remaining 24 by the end of 2014. The company also has fixed-price options to construct a total of 12 additional newbuilding product tankers at these yards.

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