Scorpio Tankers Inc. announced today that it has exercised options with Hyundai Mipo Dockyard Co., Ltd. of South Korea ("HMD") for the construction of four MR Product tankers for approximately $33.0 million each and two Handymax ice class-1A (37,000 DWT) product tankers for approximately $31.25 million each, the company reports. The MR Product tankers were previously reserved for another owner, and two of these vessels will deliver in the second quarter of 2014 with the third and fourth vessels to be delivered in the third and fourth quarter of 2014, respectively. The two Handymax vessels will be delivered early in the third quarter of 2014.
These are a continuation of the Scorpio's existing newbuilding program for fuel-efficient vessels. These newbuildings come with fixed-price options for the construction of four additional Handymax vessels as well as an extension on previously obtained fixed-price options.
The Scorpio has a total of 26 newbuilding product tanker orders with HMD and SPP Shipbuilding Co., Ltd. of South Korea which include 20 MR and six Handymax ice class-1A vessels. Two of the newbuildings are expected to be delivered to the Scorpio by April 2013 and the remaining 24 by the end of 2014. The Scorpio also has fixed-price options to construct a total of 12 additional newbuilding product tankers at these yards.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 13 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, six MR tankers, and one post-Panamax tanker) with an average age of 4.6 years, time charters-in 20 product tankers (three LR2, three LR1, nine MR and five Handymax tankers), and has contracted for 26 newbuilding product tankers (20 MR and six Handymax vessels), two of which are expected to be delivered to the Scorpio by April 2013 and the remaining 24 by the end of 2014.
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