Scorpio Tankers Adds Two to Its Newbuilding Fleet

Tanker owner and operator Scorpio Tankers Inc. has entered into two separate agreements to purchase an MR product tanker and an LR2 product tanker that are currently under construction for a total of $95.5 million.

The MR product tanker is being built by Hyundai Mipo Dockyard Co. Ltd. of South Korea (HMD) and has cost Scorpio approximately $37 million. The vessel is scheduled to be delivered in September 2015.

The LR2 product tanker that is currently under construction at Daehan Shipbuilding Co., Ltd. has been purchased for approximately $58.5 million. This vessel is scheduled to be delivered in August 2015, whereupon the company will bareboat charter-in the vessel at $10,000 per day for up to nine months. Scorpio plans to take ownership of the vessel at the conclusion of the bareboat charter.

The company has recently taken delivery of five newbuilding vessels, three MR product tankers and two LR2 product tankers, those being:

• STI Brooklyn, an MR product tanker, delivered from SPP Shipbuilding Co. Ltd. in July 2015. This vessel began a voyage in the spot market upon delivery.
• STI Savile Row, an LR2 product tanker, delivered from Sungdong Shipbuilding and Marine Engineering Co., Ltd in June 2015. Upon delivery, this vessel began a voyage for 45 days at approximately $28,000 per day.
• STI Spiga, an LR2 product tanker, delivered from Daehan Shipbuilding Co., Ltd. in June 2015. Upon delivery, this vessel began a voyage for 43 days at approximately $27,500 per day.
• STI Westminster, an MR product tanker, was delivered from HMD in June 2015. This vessel began a voyage in the spot market upon delivery.
• STI Seneca, an MR product tanker, was delivered from HMD in June 2015. This vessel began a voyage in the spot market upon delivery