Scorpio Tankers seeks growth through fuel efficient newbuilds
Scorpio Tankers Inc. (Scorpio) had a third-quarter net loss of $12.5 million, up from a loss of $6.9 million in the same quarter last year, while its vessel revenues grew to $28.1 million from $21.5 million in Q3 2011.
Despite the bigger loss, Emanuele Lauro, chief executive officer and chairman of the board, said the company is pleased with its activities, particularly the delivery of more fuel-efficient newbuildings.
"The previous few months have been very exciting for us with the deliveries of our first five newbuildings," he said.
"These vessels are performing as we expected on their voyages from the Far East to the Atlantic Basin."
Scorpio reported that the first newbuilding, STI Amber, uses significantly less fuel than a comparable MR product tanker that the company recently sold: 18 metric tonnes of fuel per day operating at 13.5 knots ballast, or 20.5 metric tonnes per day at 13.5 knots laden, compared with 25 tonnes or 29.5 tonnes for the older ship.
Lauro said the company is upbeat about the market.
"Presently we see the overall supply-demand balance in product tankers to be tightening, as evidenced by steadily increasing freight rates in certain regional markets like the Mediterranean and the Far East," he said.
"Our newbuildings, as well as our chartered-in tankers put us in a desirable position, as we enter what has historically been the strongest period of the year for seaborne freight."
Scorpio, which had its initial public offering in 2010, says it entered the market at the bottom of the industry cycle with plans to become a major operator of medium-sized tanker vessels and take advantage of a growing demand for downstream petroleum products like gasoline, heating oil, and fuel oil by end users, according to its website.
It has offices in New York and Monaco.