Scorpio Tankers Reaps Fruit of Scrubber Project
- Business & Finance
Monaco-based tanker owner and operator Scorpio Tankers informed that vessels in its fleet equipped with scrubbers have been earning more money than those without exhaust gas cleaning systems (EGCS) since the IMO sulphur cap entered into force.
For the LR2 ships in the company’s pool, scrubber fitted tankers earned a premium of about USD 5,300 per day during January 2020 when compared to non-scrubber fitted units, Scorpio Tankers said in its latest financial report.
In addition, the LR1s with scrubbers achieved a premium of around USD 5,400 per day, while MR2 ships with EGCSs earned a premium of USD 2,800 per day last month.
In 2018, Scorpio Tankers unveiled a program to install scrubbers across its entire fleet. The systems are designed to be “hybrid ready” and can be upgraded to a “closed loop” configuration, giving the company the return-on-investment and flexibility.
In the fourth quarter of 2019, a total of fourteen Scorpio Tankers’ vessels completed scrubber installation. As of December 31, 2019, the installation was in progress on board twelve tankers.
Scorpio Tankers recorded a net income of USD 12 million in Q4 2019, against a net loss of USD 17.7 million reported in the corresponding period of 2018. Revenues increased to USD 221.6 million in Q4 2019 from USD 167.525 million in Q4 2018.
The increase was driven by higher time charter equivalent (TCE) revenues during the quarter, which rose to USD 219.1 million from USD 167.2 million in Q4 2018. According to the company, the quarter reflected significant TCE revenue improvements despite delays related to drydocks, ballast water treatment system and scrubber installations.
In 2019, Scorpio Tanker managed to narrow its net loss to USD 48.5 million from USD 190.1 million seen in 2018. Revenues increased to USD 704.3 million in 2019 from USD 585 million posted a year earlier.
Scorpio Tankers currently owns or finance leases 126 product tankers with an average age of 4.1 years and bareboat charters-in 10 product tankers. In addition, the company will bareboat charter-in two MR tankers that are currently under construction and are scheduled to be delivered in 2020.