Scorpio Continues Eco Spree

Image: Scorpio Tankers

NYSE-listed Scorpio Tankers (STNG) on Thursday announced that it has reached an agreement with Hyundai Samho Heavy Industries Co., Ltd. to construct two larger LR2 Product Tankers for $49.75 million.

The 114,000 dwt vessels are expected to be delivered to Scorpio in the third quarter of 2014. This order is a continuation of the company’s existing newbuilding program calling for fuel-efficient vessels.

Scorpio Tankers currently has a total of 28 newbuild product tanker orders with Hyundai Mipo Dockyard Co., Ltd., SPP Shipbuilding Co., Ltd. and Hyundai Samho Heavy Industries Co., Ltd. of South Korea which include 20 MR product tankers, six Handymax ice class-1A and the two LR2 vessels.

Two of the newbuildings are expected to be delivered to the Scorpio by April 2013 and the remaining 26 by the end of 2014. The Company also has fixed-price options to construct additional newbuilding product tankers at these yards.

These newbuildings announced today also come with fixed-price options for the construction of additional LR2 vessels.

Scorpio Tankers fleet currently consists of 13 owned tankers (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, time charters-in 20 product tankers (three LR2, three LR1, nine MR and five Handymax tankers), and has contracted for 28 newbuilding product tankers (20 MR, six Handymax ice class-1A and two LR2 vessels).