EMEA News
Scorpio Tankers Announces Big Jump in Net Income
Scorpio Tankers Inc. Tuesday announced a big jump in net income for its financial results for 2015, as well as agreements on new time charter-in contracts for three ice class 1A Handymax product tankers.
The company reported net income of $217.7 million for 2015, a significant improvement from the year previous when net income was $52.1 million.
"2015 numbers were solid. Year-over-year performance is improving and we're pleased about how things are shaping out," CEO Emanuele Lauro said during the firm's conference call.
"The vast majority of our fleet is now delivered and operating. This combined with the current market conditions allow us to deliver consistent earnings; allows us to plan for a consistent dividend distribution in an environment where supply and demand from the mentors are looking consistently in our favour."
The company also reported an agreement to sell five MR product tankers (STI Powai, STI Lexington, STI Chelsea, STI Olivia and STI Mythos) for approximately $33 million each.
The sales of two of the vessels are expected to close in March 2016, and sales of the remaining three in the second quarter of 2016.
In December 2015 the company also entered into time charter-out agreements with an unrelated third party on two ice class 1A Handymax product tankers, STI Poplar and STI Pimlico.
The term of each agreement is for three years at $18,000 per day. These charters commenced in January and February 2016, respectively.
In February 2016, the Company extended the time charter on an LR1 tanker that is currently time chartered-in for an additional year at $17,250 per day effective March 2016.
In February of 2015 Ship & Bunker reported that executives of Scorpio Tankers had expected a rebound as a result of low oil prices to pick up and "last years" beginning in 2015 and 2016.
