World News
Scorpio Turns Profit, Invests in LPG Company
Scorpio Tankers Inc. [NYSE:STNG] (Scorpio Tankers) today said it doubled its revenues for the third quarter of 2013 to $57.8 million from $28.7 million in the same period last year, while swinging from loss to profit.
The company had a net income of $667,000 for the quarter after losing $12.5 million in Q3 2012, while its results for the first nine months of the year hit $11.2 million, compared with a $21.7 million loss in 2012.
The company also said in a separate statement that it has reached an agreement with U.S.-based Dorian LPG Ltd. (Dorian) under which Scorpio will trade its entire fleet of 11 newbuilding very large gas carriers (VLGC) plus $1.9 million in cash for a stake in the company representing 30 percent of its pro-forma outstanding shares.
Scorpio said that, as of the date of the transaction, it will have paid $83.1 million in installment payments for the VLGCs.
"We are pleased with this investment in Dorian LPG on several fronts," said Scorpio Tankers Chairman and CEO Emanuele Lauro.
"We are participating in significant consolidation in the VLGC sector, creating - in Dorian - a preeminent owner/ operator of modern fuel efficient assets.
"As important, we expect our shareholders will ultimately benefit both from the expected growth of seaborne LPG demand and the success of Dorian LPG as a highly reputable, US listed security."
The deal is expected to close by the end of 2013.
Scorpio Tankers has invested heavily in both product tankers and gas carriers over the past year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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