Scorpio Tankers Inc. Announces Agreements to Construct Six LR2 Newbuildings,
Delivery of Its Seventh MR Newbuilding, and Agreements
to Time Charter-in Three Product Tankers
MONACO -- (Marketwire) -- 03/26/13 -- Scorpio Tankers Inc. (NYSE:
STNG) (the "Company") announced today that it has (i) agreed to
construct six additional LR2 Newbuildings, (ii) taken delivery of its
seventh Newbuilding MR product tanker, STI Emerald and (iii) time
chartered-in one handymax and two LR2 product tankers.
The Company executed agreements with Hyundai Samho Heavy Industries
Co., Ltd. ("HSHI") to construct a total of four 114,000 dwt LR2
product tankers for approximately $50 million each. These agreements
are in addition to the previously announced agreement for two similar
vessels. The Company has six LR2 newbuilding contracts at HSHI, all
of which are scheduled to be delivered within 2014. These
newbuildings come with fixed-price options for the construction of
additional LR2 vessels.
In addition, the Company has reached an agreement with Daewoo
Shipbuilding and Marine Engineering Co., Ltd. ("DSME") to construct
two 114,000 dwt LR2 product tankers for approximately $50 million
each. These vessels are scheduled to be delivered within 2014. This
agreement includes fixed-price options for the construction of
additional LR2 vessels.
The Company has a total of 33 newbuilding product tanker agreements,
which include 19 MR, eight LR2 and six Handymax ice class-1A vessels,
at Hyundai Mipo Dockyard Co. Ltd., SPP Shipbuilding Co. Ltd., HSHI,
and DSME. One of the newbuildings is expected to be delivered to the
Company by April 2013 and the remaining 32 by the end of 2014. The
Company also has fixed-price options to construct additional
newbuilding product tankers at these yards.
Delivery of STI Emerald
Yesterday, March 25, 2013, the Company took delivery of the seventh
MR product tanker under its newbuilding program, STI Emerald, and the
vessel began a time charter for up to 120 days at $19,500 per day
plus an adjustment based on the fuel consumption. The vessel was
partially financed by the Company's 2011 Credit Facility.
Time Charter-In Agreements
The Company agreed to time charter-in three product tankers
-- Two LR2 product tankers (a 115,756 dwt, 2011 built, and a 115,592 dwt,
2010 built) each for one year at approximately $16,000 per day with
expected deliveries by the middle of April 2013.
-- A Handymax product tanker, ice-class 1B, (37,217 dwt, 2004 built) for
one year at approximately $12,700 per day. The Company also has an
option to extend the charter for an additional year at $14,000 per
day. This vessel is expected to be delivered by the middle of April
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of
petroleum products worldwide. Scorpio Tankers Inc. currently owns 14
tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, seven
MR tankers, and one post-Panamax tanker) with an average age of 4.4
years, time charters-in 21 product tankers (five LR2, three LR1,
seven MR and six Handymax tankers), and has contracted for 33
newbuilding product tankers (19 MR, eight LR2 and six Handymax ice
class-1A vessels), one of which is expected to be delivered to the
Company by April 2013 and the remaining 32 by the end of 2014.
Additional information about the Company is available at the
Company's website www.scorpiotankers.com, which is not a part of this
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation Reform
Act of 1995 provides safe harbor protections for forward-looking
statements in order to encourage companies to provide prospective
information about their business. Forward-looking statements include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts. The
Company desires to take advantage of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and is including
this cautionary statement in connection with this safe harbor
legislation. The words "believe," "anticipate," "intends,"
"estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant uncertainties
and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that,
in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure
of counterparties to fully perform their contracts with us, the
strength of world economies and currencies, general market
conditions, including fluctuations in charter rates and vessel
values, changes in demand for tanker vessel capacity, changes in our
operating expenses, including bunker prices, drydocking and insurance
costs, the market for our vessels, availability of financing and
refinancing, charter counterparty performance, ability to obtain
financing and comply with covenants in such financing arrangements,
changes in governmental rules and regulations or actions taken by
regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political
events, vessels breakdowns and instances of off-hires and other
factors. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks
Scorpio Tankers Inc.
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