Image courtesy Scorpio Tankers

Image courtesy Scorpio Tankers

Scorpio Tankers (NYSE: STNG) announced Wednesday yet another equity offering, giving a strong indication that the company will continue its buying spree of ‘eco’ product tankers.

Scorpio priced the offering of 29,012,000 shares of its common stock at a price of $8.10 per share, which could raise more than $230 million to be used for vessel acquisitions, working capital, and other general corporate purposes, the company said in a statement. The offering, which is expected to close on March 18, 2013, is the largest yet seen by the company.

If history is any indication, Scorpio will use the proceeds to fund its continued appetite for fuel-efficient product tankers.  The company has a total of 28 newbuilding product tankers on order with Hyundai Mipo Dockyard Co., Ltd., SPP Shipbuilding Co., Ltd. and Hyundai Samho Heavy Industries Co., Ltd. of South Korea. The newbuilds include include 20 MRs, six Handymax ice class-1As, and two LR2 vessels. Two of the newbuildings are expected to be delivered to the company by April 2013 and the remaining 26 by the end of 2014. Scorpio also has fixed-price options to construct additional newbuilding product tankers at these yards.

Scorpio Tankers currently owns 13 tankers, including one LR2 tanker, four LR1 tankers, one Handymax tanker, six MR tankers, and one post-Panamax tanker, with an average age of 4.7 years. The company also has time charters-in 20 product tankers, including three LR2s, three LR1s, nine MRs and five Handymax tankers.

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