Scorpio Tankers Adds to Owned Fleet with More Purchase Options

Scorpio Tankers Inc. (NYSE: STNG), a global provider of petroleum product transportation, has exercised purchase options on five additional ships as the company continues to reduce its debt.

The company has simultaneously announced the repurchase of addition common shares in the open market.

Scorpio Tankers announced today its decision to exercise its purchase options on two MR product tankers built in 2020, namely STI Mighty and STI Maestro, as well as three MR product tankers built in 2019, named STI Modest, STI Maverick, and STI Millennia. These purchases are expected to be completed in July 2023 and will lead to a debt reduction of $119.4 million for the company.

The leases for these vessels bear interest at LIBOR plus a margin of 3.50% per annum.

Scorpio Tankers: Bulls, Bears, and ‘Shiptwits’

Year to date, the company has exercised purchase options on a total of 22 leased tankers, effectively reducing its debt by $522.1 million.

In addition, Scorpio Tankers has also announced the recent repurchase of 2,009,179 of its common shares in the open market, with an average price of $47.03 per share, as part of the company’s recently reset $250 million securities repurchase program. Year to date, the company has repurchased an aggregate of more than 5.6 million shares for more than $191 million.

Scorpio Tankers currently owns, finance leases, or bareboat charters-in 113 product tankers, comprising 39 LR2 tankers, 60 MR tankers, and 14 Handymax tankers. The average age of its fleet is 7.3 years.