Five newbuild tankers join Scorpio

Tanker owner and operator Scorpio Tankers has taken delivery of five newbuilding vessels. An LR2 product tanker STI Rose was delivered from Daehan Shipbuilding Co. Ltd, which, upon delivery, began a voyage for 14 days at approximately USD 30,000 per day. The newbuild deliveries include
two MR product tankers, STI Tribeca and STI Gramercy, delivered from SPP Shipbuilding Co., Ltd. of South Korea. Upon delivery, each vessel has been chartered out to up to 120 days at approximately USD 18,000 per day. Finally, South Korea’s Hyundai Mipo Dockyard delivered two Handymax product tankers, STI Hammersmith and STI Rotherhithe. The Handymaxes began a time charter for up to 120 days at approximately USD 14,000 per day. Scorpio Tankers said it expects fourth quarter 2014 earnings per share to be within a range of USD 0.10 to 0.14 per share.

 This not including an aggregate write-down of USD 17.6 million, relating to the discontinuation of equity method accounting for its investment in Dorian LPG Ltd. as of October 29, 2014 and the designation of STI Harmony and STI Heritage as held for sale at December 31, 2014. Scorpio Tankers currently owns 62 tankers with an average age of 1.3 years, time charters-in 24 product tankers. The company has contracted for 19 newbuilding product tankers (nine MR and 10 LR2), five of which are expected to be delivered in the first quarter of 2015, ten in the second quarter of 2015 and the remaining four vessels throughout 2016.