France: Scorpio Tankers Hires Two Product Tankers

Scorpio Tankers Inc.  announced Thursday that it has agreed to time charter-in two product tankers. The terms of the contracts are summarized as follows:

A 2003 built LR1 product tanker will be time chartered-in for two years at $11,250 per day with a 50% profit sharing provision whereby the company splits any of the vessel’s profits above $11,250/day with the vessel owner. The vessel is expected to be delivered by the end of January 2013. The agreement includes an option for the company to extend the charter for an additional year at $12,500 per day with a 50% profit sharing provision.

On the other hand, a 2007 built LR1 product tanker will be time chartered-in for one year at $12,500 per day and is expected to be delivered by the end of January 2013. The agreement includes an option for the company to extend the charter for an additional six months at $14,250 per day.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns one LR2 tanker, four LR1 tankers, one Handymax tanker, five MR tankers, and one post-Panamax tanker with an average age of 4.7 years, time charters-in 17 vessels (two LR2, three LR1, seven MR and five Handymax tankers), and has contracted for five newbuilding MR’s (three are expected to be delivered to the company in the first half of 2013 and two in January 2014).

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Scorpio Tankers, November 30, 2012