Fuel-Efficient Ships, Economic Improvement Boost Scorpio's Q2 Results

CEO Emanuele Lauro said exports of U.S. refined products are up

Scorpio Tankers Inc. [NYSE:STNG] (Scorpio Tankers) says it realised a profit of $4.0 million in the second quarter of 2013, up from a loss of $4.0 million in the same quarter last year as new, fuel-efficient vessels joined its fleet.

The company's revenues grew to $51.5 million from $27.5 million year-over-year, and the fleet size averaged 14.69 vessels over the quarter, compared with 9.55 vessels in Q2 2012.

"Our year-over-year performance continues to improve both as a result of stronger market fundamentals and a stronger Company," said Emanuele Lauro, CEO and chairman of the board.

"The seasonal weakness which we typically experience in the second and third quarter has been particularly short-lived in the Atlantic basin this year.

"Burgeoning exports of refined products from the United States has contributed to a significant counter-seasonal swing in MR vessel freight rates since the end of June, reaching levels in excess of $20,000 per day."

The company's vessel operating costs increased to $8.5 million from $7.0 million year over year due to the expanded fleet.

Average daily time charter results for Scorpio Tankers' vessels rose to $15,444 from $12,258, while average daily vessel operating costs dropped to $6,262 from $7,942 as the mix of vessels in the fleet changed.

The company's fleet for Q2 2013 included the first eight vessels under its newbuilding program for all or part of the period, and the daily operating costs for those vessels were $5,945 per day, while the daily operating costs for four vessels sold over the previous year were $8,241 per day.

Scorpio put 54 new vessels on order over the six months ended this May, and it added new orders for liquefied petroleum gas (LPG) carriers earlier this month.