Scorpio Tankers Continues Newbuilding Spree

Scorpio Tankers Inc. announced yesterday that it has reached agreements with two yards in Korea to construct a minimum of 5 and up to 10 newbuilding vessels designed for the carriage of liquefied petroleum gas (“LPG”). Also, the Company announced that it has taken delivery of its ninth Newbuilding MR product tanker, STI Le Rocher, agreed to time charter-in a 2013 built LR2 product tanker and declared options on two existing time chartered-in vessels.

Emanuele Lauro, chief executive officer and chairman of the board, commented, “We are excited about our entry into LPG which we have long considered an extension of the product market. With common customers, shipbuilders, and trade lanes, and offsetting seasonal swings, the product tanker and LPG markets are highly complementary. Most importantly, LPG, as with refined products, is competitively priced in the global marketplace and winning new, distant customers, and this is reflected by accelerating export volumes out of the US Gulf.

We are pleased with our agreements with two of the most reputable builders of VLGC vessels. These orders replace a previously announced order for 4 LR2 vessels, and the structure of the LPG market presents an array of opportunities for us to build value with our shareholders.”

VLGC Newbuildings

The Company has reached agreements with Hyundai Samho Heavy Industries (“HSHI”) and Daewoo Shipbuilding and Marine Engineering Co., Ltd. (“DSME”) for the construction of a minimum of five and up to 10 Very Large Gas Carriers (“VLGC”) for approximately $74 million each. The vessels are 84,000 cubic meter tankers designed for the carriage of LPG. Of the first five vessels, two will deliver in the second quarter, one in the third quarter, and two in the fourth quarter of 2015. These agreements replace the previously announced agreement to construct four LR2 vessels at Samsung Heavy Industries.

Delivery of STI Le Rocher

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

Time Charter-In Agreements

The Company agreed to time charter-in a 2013 built, fuel efficient LR2 product tanker (105,708 dwt) for one year at $16,500 per day. The Company has an option to extend the charter for an additional year at $17,550 per day. This vessel is expected to be delivered in September 2013.

The Company also declared options extending the time charters on two LR2 vessels that are currently time chartered-in. The first option is for a 2012 built LR2 product tanker (99,993 dwt) for six months at $15,000 per day and the other is for a 2008 built LR2 product tanker (115,406 dwt) for six months at $16,250 per day. Both extensions begin in July 2013.

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Scorpio Tankers, July 3, 2013