EMEA News
Scorpio's Fuel-Efficient Tankers Earn a "Significant Premium"
Scorpio Tankers Inc. [NYSE:STNG] (Scorpio) reports its fuel-efficient tankers earned a "significant premium" as it increased its revenues by 54 percent year-over-year to $44.9 million in the first quarter of 2013, and swung from a loss of $5.1 million to a profit of $6.6 million for the period.
The Monaco-based company has been focused on purchasing fuel-efficient newbuilding product tankers in recent months, and CEO Emanuele Lauro said the strategy is already demonstrating results even though only a small number of the newbuilding orders have been delivered so far.
"We are delighted to report a profitable quarter and the continued significant premium that our fuel-efficient vessels earn against their peers in the spot market," Lauro said.
"However, with the bulk of our orderbook yet to deliver, we don't believe these results begin to reflect the earnings potential of our Company in an improving environment for product tankers."
Scorpio took delivery of the sixth and seventh MR tankers under its newbuilding program in January and March 2013, and since the end of the third quarter an eighth tanker has been delivered in April.
The company also initiated a quarterly cash dividend of $0.025 per share starting in June 2013.
"With Newbuilding prices firming and the global fleet of modern product tankers continuing to consolidate into fewer, stronger hands, we have great conviction about our current position and our ability to execute on further opportunities when they arise," Lauro said.
