Scorpio Tankers keeps on building

AUGUST 6, 2013 — Emanuele Lauro’s Scorpio Tankers Inc. (NYSE: STNG) has reached agreements to construct four Very Large Gas Carriers at two shipyards in South Korea along with two MR and two Handymax ice class-1A fuel efficient product tankers at Hyundai Mipo Dockyard Co., Ltd. of South Korea. Additionally, it has taken delivery of the eleventh vessel under its newbuilding program at HMD, STI Fontvieille.

Scorpio Tankers Chairman and CEO Emanuele Lauro

With today’s orders, the company has contracted for 60 newbuilding vessels (25 MR, 12 LR2, and 14 Handymax ice class-1A product tankers, and 9 VLGC), one of which is expected to be delivered by September 2013, 40 within 2014 and the remaining 19 by the end of 2015.

VLGC Newbuildings
The latest VLGC agreements  are with Hyundai Samho Heavy Industries and Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME) for the construction of four VLGCs for approximately $75.0 million each. They are 84,000 cu. m tankers designed for the carriage of LPG and are scheduled to be delivered in the third and fourth quarters of 2015. As part of these agreements, the company has also negotiated fixed price options for additional vessels.

Product Tanker Newbuildings
The company reached an agreement with HMD to construct four product tankers consisting of two 52,000 dwt MR product tankers for approximately $35.0 million each and two Handymax ice class-1A (37,000 dwt) product tankers for approximately $32.0 million each. The MR tankers are scheduled to be delivered in the second quarter of 2015 and the Handymax ice class-1A tankers are scheduled to be delivered in the fourth quarter of 2014.

Delivery of STI Fontvieille
The company took delivery of the eleventh MR product tanker under its newbuilding program, STI Fontvieille. Upon delivery, the vessel began a time charter for up to 120 days at $19,000 per day.

Scorpio Tankers Inc.currently owns 18 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 11 MR tankers, and one post-Panamax tanker) with an average age of 3.9 years, time charters-in 27 product tankers (eight LR2, four LR1, eight MR and seven Handymax tankers), and