Scorpio Tankers in Further Fleet Expansion

by Ship & Bunker News Team
Tuesday May 19, 2015

Scorpio Tankers Inc (Scorpio Tankers) last week announced it purchased four LR2 product tankers currently under construction at a cost of approximately $60.0 million each.

The company did not identify the third parties involved in the deal, but it is understood that three of the vessels come as part of a $178.5 million deal announced by Navig8 Product Tankers Inc. (Navig8).

Navig8 CEO Nicolas Busch commented: "We are very pleased to have successfully closed this transaction at a firm price that generates a substantial profit for the company.

"Combined with the invested equity released, this transaction further strengthens the balance sheet and is consistent with our strategy of fully funding the company in the near-term."

The three vessels are scheduled to be delivered between June 2015 and August 2015.

Scorpio Tankers' fourth newbuild is under construction at South Korea's Daehan Shipbuilding Co., Ltd and is understood to have been bought from a joint-venture between U.S. investor Perella Weinberg Partners and Prime Tanker Management of Greece.

Industry analysts said the acquisitions were somewhat expected given the firm's recent share offering.

In February Drewry Maritime Research (Drewry) warned that over-ordering of new ships could spell disaster for a recovering but currently buoyant tanker market.