Scorpio Tankers Sinks Deeper into Red
- Business & Finance
Monaco-based tanker shipping company Scorpio Tankers posted a net loss of USD 36.9 million for the third quarter of this year, further widened when compared to the net loss of USD 27.1 million for the three months ended September 30, 2016.
For the nine months ended September 30, 2017, the net loss surged to USD 116.7 million, switching from a net income of USD 4.8 million reported for the same period last year.
The company plunged deeper into the red as it finalizes the integration of tankers acquired from Navig8 Product Tankers (NPTI).
Through the merger, Scorpio has acquired an operating fleet of 27 eco-design product tankers, comprised of 15 LR2s and 12 LR1s with a weighted average of 1.2 years and an aggregate carrying capacity of 2.6 million dwt.
Based on the latest update, all of NPTI’s vessels acquired by Scorpio Tankers have exited the Navig8 pools in which they were operating.
The ships have started operating in Scorpio’s pools and all of them will complete the transfer by the end of December this year, the company added.
Scorpio has assumed NPTI’s aggregate outstanding indebtedness of USD 806.4 million as of the date of closing the acquisition.
In October, Scorpio Tankers took the final of four MR product tankers that were under construction at Hyundai Mipo Dockyard, STI Donald C Trauscht, which joined its sister ships STI Leblon, STI La Boca and STI San Telmo that were delivered to the company in the third quarter.
As part of these deliveries, the tanker owner and operator drew down a total of USD 83.3 million from its 2017 credit facility to partially finance the purchase of these vessels.
In addition, in November 2017, Scorpio Tankers extended the time charter-in agreement for an MR that is currently time chartered-in for an additional six months at USD 13,250 per day effective December 2017. Scorpio also has an option to extend the charter for an additional year at USD 14,500 per day.
Scorpio Tankers owns or finance leases 107 product tankers with an average age of 2.3 years and time or bareboat charters-in 19 product tankers. The company has contracted for two newbuilding MR product tankers, one of which is expected to be delivered before the end of 2017 and the other in the first quarter of 2018.