Scorpio Tankers Orders 16 Fuel Efficient Vessels

Scorpio Tankers Inc. announced today that it has reached agreements with five shipyards in Korea to construct 16 newbuilding vessels consisting of eight LR2, four MR, and four Handymax ice class-1A product tankers.

In addition, the company announced that syndication of the company’s previously announced $267 million Credit Facility has been heavily over-subscribed resulting in an increase of the overall commitments received from new and existing financial institutions to $525 million.

Emanuele Lauro, chief executive officer and chairman of the board, commented, “These 16 orders for fuel efficient vessels, and, as significantly, the over-subscription of our 2013 credit facility, have solidified our unique position in front of an improving cycle in product tankers. We are pleased that our shareholders and lenders alike are showing their support of our strategy. Furthermore, we are observing attenuated capacity at quality shipyards, meaning that prices have moved up 8-12% and expected deliveries for new orders are moving beyond 2015. Under these circumstances, we have no plans for further newbuilding contracts.”

LR2 Newbuildings

The Company reached agreements to construct eight, 114,000 dwt, LR2 product tankers for approximately $52.0 million each, consisting of four at Samsung Heavy Industries Co., Ltd. (SHI), two at Hyundai Samho Heavy Industries Co., Ltd. (HSHI), and two at Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME). These vessels are scheduled to be delivered in the first and second quarters of 2015.

MR Newbuildings

The Company reached an agreement with SPP Shipbuilding Co., Ltd. of South Korea (SPP) to construct four 52,000 dwt MR product tankers for approximately $32.5 million each. These vessels are scheduled to be delivered in the first and second quarters of 2015.

Handymax Ice Class-1A Newbuildings

The Company reached an agreement with Hyundai Mipo Dockyard Co., Ltd. of South Korea (HMD) to construct four Handymax ice class-1A (37,000 dwt) product tankers for approximately $31.6 million each. These vessels are scheduled to be delivered in the third quarter of 2014.

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Press Release, May 30, 2013