STI updates the market

Sep 04 2015


Scorpio Tankers (STI) has given updates on its securities repurchase programme, third quarter revenues, newbuilding programme, plus its current fleet.

Since STI’s previous announcement on 12th August, 2015, the company has purchased 1,850,000 of its common shares in the open market at an average price of $9.49 per share.

The company had $210 mill remaining under its $250 mill securities buyback programme as of last week. The acquired common shares are being held as treasury shares. STI said that it would repurchase any securities in the open market, at times and prices that are considered to be appropriate by the company, but is not obligated under the terms of the programme to repurchase any securities.

Regarding the third quarter revenues, STI said that about 66% of 3Q15 voyage days have been contracted at around:

·         $38,500 for LR2s.

·         $28,500 for LR1s.

·         $26,500 for MRs.

·         $21,500 for Handymaxes.

In another move, the company has amended its agreement with Hyundai Mipo Dockyard (HMD) for the construction of MRs and Handymaxes.

STI has now contracted for four MRs to be built at HMD for about $34.5 mill each and has options to construct up to 10 more MRs with fixed delivery dates and at fixed prices. The four vessels are scheduled for delivery in 1Q and 2Q of 2017.

These replaced orders for two MRs at around the same price and two Handymaxes for $32.5 mill each and had options to construct up to six more MRs and six Handymaxes.

STI also said that it had recently taken delivery of an MR built last year at SPP Shipbuilding - ‘STI Memphis’. Upon delivery, this vessel began operating in the Scorpio MR Pool.



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