World News
Scorpio Says Write-Down Supports "Modern Fuel Efficient Fleet"
Scorpio Tankers Inc. [NYSE:STNG] (Scorpio Tankers) says it is writing down some of its older vessels after designating them as "held for sale."
"The reclassification of some of our older vessels further emphasizes our commitment to our modern fuel efficient fleet," said Chairman and CEO Emanuele Lauro.
The company also said it has closed on the acquisition of four MR product tankers now under construction in South Korea for a total price of $154.4 million.
The acquisition, announced in early December, will be paid partly through the issuing of 3.5 million new common shares, along with cash and bank debt.
The vessels will be delivered in the third quarter of 2014 and the first quarter of 2015.
The company said it will recognise a net gain of about $14 million in connection with the write-downs of the older vessels and the sale of very large gas carriers (VLGCs).
Scorpio Tankers completed the sale of its VLGC contracts to Dorian LPG Ltd. in November.
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| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
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| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
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| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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