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LR2 Newbuildings The Company executed agreements with Hyundai Samho Heavy Industries Co., Ltd. ("HSHI") to construct a total of four 114,000 dwt LR2 product tankers for approximately $50 million each. These agreements are in addition to the previously announced agreement for two similar vessels. The Company has six LR2 newbuilding contracts at HSHI, all of which are scheduled to be delivered within 2014. These newbuildings come with fixed-price options for the construction of additional LR2 vessels. In addition, the Company has reached an agreement with Daewoo Shipbuilding and Marine Engineering Co., Ltd. ("DSME") to construct two 114,000 dwt LR2 product tankers for approximately $50 million each. These vessels are scheduled to be delivered within 2014. This agreement includes fixed-price options for the construction of additional LR2 vessels. The Company has a total of 33 newbuilding product tanker agreements, which include 19 MR, eight LR2 and six Handymax ice class-1A vessels, at Hyundai Mipo Dockyard Co. Ltd., SPP Shipbuilding Co. Ltd., HSHI, and DSME. One of the newbuildings is expected to be delivered to the Company by April 2013 and the remaining 32 by the end of 2014. The Company also has fixed-price options to construct additional newbuilding product tankers at these yards. Delivery of STI Emerald Yesterday, March 25, 2013, the Company took delivery of the seventh MR product tanker under its newbuilding program, STI Emerald, and the vessel began a time charter for up to 120 days at $19,500 per day plus an adjustment based on the fuel consumption. The vessel was partially financed by the Company's 2011 Credit Facility. Time Charter-In Agreements The Company agreed to time charter-in three product tankers consisting of: • Two LR2 product tankers (a 115,756 dwt, 2011 built, and a 115,592 dwt, 2010 built) each for one year at approximately $16,000 per day with expected deliveries by the middle of April 2013. • A Handymax product tanker, ice-class 1B, (37,217 dwt, 2004 built) for one year at approximately $12,700 per day. The Company also has an option to extend the charter for an additional year at $14,000 per day. This vessel is expected to be delivered by the middle of April 2013. About Scorpio Tankers Inc. Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 14 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, seven MR tankers, and one post-Panamax tanker) with an average age of 4.4 years, time charters-in 21 product tankers (five LR2, three LR1, seven MR and six Handymax tankers), and has contracted for 33 newbuilding product tankers (19 MR, eight LR2 and six Handymax ice class-1A vessels), one of which is expected to be delivered to the Company by April 2013 and the remaining 32 by the end of 2014. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release. Scorpio Tankers Inc. press release |
