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Scorpio Tankers boosts methanol footprint with new investment

Monaco-based tanker operator Scorpio Tankers has taken a minority interest in a group of nine product tankers, including five dual-fuel Medium Range (MR) methanol tankers.

As informed, the MR tankers, built between 2016 and 2021, are designed to use methanol as fuel and carry it as cargo.

The dual-fuel MR Methanol tankers are currently on long-term time charter contracts longer than five years. The portfolio also includes four ice-class Long Range (LR) product tankers. 

The company has bought the 6% minority stake for $7.2 million.

Separately, Scorpio Tankers announced its financial results for the second quarter of 2021. The company had a net loss of $52.8 million, or $0.97 basic and diluted loss per share.

“The global demand for oil and refined petroleum products remained subdued as governments around the world continued to impose travel restrictions and other measures in an effort to curtail the spread of the virus. These market conditions had an adverse impact on the demand for the Company’s vessels beginning in the third quarter of 2020 and continuing through the second quarter of 2021,” the company’s officials noted.

“The scale and duration of these circumstances is unknowable but could continue to have a material impact on the Company’s earnings, cash flow and financial condition in 2021.”

In January this year, the operator decided to sell and lease back three MR product tankers and one LR2 product tanker to China’s AVIC International Leasing.

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Scorpio Tankers currently owns or finance leases 109 product tankers with an average age of 3.0 years and time or bareboat charters in 17 product tankers.