Scorpio Tankers continues newbuilding spree

MARCH 7, 2013 — Scorpio Tankers Inc. (NYSE: STNG), which last week announced it had exercised options at Hyundai Mipo Dockyard for the construction of four MR Product tankers and two Handymax ice class-1A product tankers (see earlier story) is continuing its newbuilding spree. Today, it reported that it has reached an agreement with Hyundai Samho Heavy Industries Co., Ltd. to construct two 114,000 dwt LR2 Product Tankers for $49.75 million for delivery in the third quarter of 2014. The company says this latest order is a continuation of its existing newbuilding program for fuel-efficient vessels. The Samho contracts include fixed-price options for the construction of additional LR2 vessels.

Scorpio Tankers now has a total of 28 newbuilding product tanker orders with Hyundai Mipo Dockyard Co., Ltd., SPP Shipbuilding Co., Ltd. and Hyundai Samho Heavy Industries Co., Ltd. of South Korea which include 20 MR, six Handymax ice class-1A and two LR2 vessels. Two of the newbuildings are expected to be delivered by April 2013 and the remaining 26 by the end of 2014. The company also has fixed-price options to construct additional newbuilding product tankers at these shipyards.