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Scorpio Tankers Inc. (NYSE: STNG) announced on Tuesday that it has exercised its purchase options on six ships and has also repurchased additional common shares in the open market.
In regards to the purchase options, the company exercised its options on one 2019-built LR2 product tanker (STI Lobelia) and five 2019-built MR product tankers (STI Magic, STI Mystery, STI Marvel, STI Mythic, and STI Magister). The company said the purchases are expected to occur in June 2023 and will result in a debt reduction of $147.3 million for the company. The leases bear interest at LIBOR plus a margin of 3.50% per annum.
The latest vessel acquisitions follow Scorpio Tankers’ exercising of purchase options for six additional ships in March. That acquisition included two 2016-built LR2 product tankers, one 2019-built LR2 product tanker, two 2019-built MR product tankers, and one 2020-built MR product tanker.
Scorpio Tankers has also announced purchasing 396,706 additional shares its common shares in the open market for $21.5 million (average $54.41 per share), bringing year-to-date total to 3,557,873 common shares repurchased in the open market for approximately $185 million.
The share repurchases are part of a $250 million Securities Repurchase Program which was authorized by the company’s Board of Directors on Feb. 15 and replaced the previous program authorized on October 31, 2022.
The company has actually been busy repurchasing its shares since last July, with a total of 7,467,746 common shares repurchased in the open market, including 2,241,881 common shares repurchased in Q3 2022 and 1,667,992 common shares in Q4 2022.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. The company currently owns, finance leases, or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers, and 14 Handymax tankers) with an average age of 7.2 years.
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