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On April 6, 2010, the Company closed on the sale of 12,500,000 shares of common stock at $13.00 per share in its initial public offering and received net proceeds of $149.6 million after deducting underwriters' discounts and offering expenses. On May 4, 2010, the Company issued 450,000 shares of common stock at $13.00 and received $5.4 million, after deducting underwriters' discounts, when the underwriters in the Company's initial public offering partially exercised their over-allotment option. Vessel Acquisitions On June 9, 2010, Scorpio Tankers announced that it took delivery of three products tanker vessels that the Company previously agreed to acquire. Two of the tankers are LR1 ice class 1A sister ships, STI Harmony and STI Heritage, and were acquired for an aggregate price of $92.0 million, which includes an estimated $2.5 million related to the value of the existing time charter contracts. The third vessel delivered was STI Conqueror, which is a Handymax ice class 1B ship, and was acquired for $26.0 million. The Company has agreed to acquire three additional Handymax tankers that are scheduled to be delivered by the end of July 2010 for an aggregate price of $76.0 million. Credit Facilities On April 9, 2010, the Company repaid in full the outstanding balance of $38.9 million of the 2005 credit facility from the proceeds of the initial public offering. On June 2, 2010, the Company executed the $150 million credit facility, which will be used to partially finance vessel acquisitions. The Company currently has drawn down $19.0 million. Explanation of Variances on the First Quarter Results Net Income for the three months ended March 31, 2010 decreased $1.6 million to $1.2 million from the three months ended March 31, 2009. The following were the significant changes between the two periods: • Vessel revenue decreased $3.4 million because the revenue for the period ended March 31, 2009 included a vessel chartered-in, and the daily time charter equivalent rate from the pool decreased from $28,012 to $18,928. • Charter hire expense decreased $2.4 million because a vessel was chartered-in during the period ended March 31, 2009. • The net change in the realized and unrealized derivative financial instruments (i.e. interest rate swap) and other expenses was a reduction in income of $0.7 million Detailed report at: www.scorpiotankers.com About Scorpio Tankers Inc. Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns four LR1 product tankers, one Handymax tanker, and one post-Panamax tanker with an average age of 5.2 years and has signed agreements to purchase three Handymax tankers. Additional information about the Company is available at the Company's website www.scorpiotankers.com. Scorpio Tankers Inc. press release |
