Scorpio Tankers Inc. Announces Agreement to Construct Four Handymax Ice Class-1A Newbuildings

Scorpio Tankers Inc. announced yesterday that it has exercised options with Hyundai Mipo Dockyard Co., Ltd. of South Korea ("HMD") for the construction of four Handymax ice class-1A (37,000 DWT) product tankers for approximately $30 million each. These vessels will be delivered in the third quarter of 2014 and are a continuation of the Company's existing newbuilding program for fuel-efficient vessels. These newbuildings come with fixed price options for the construction of four additional Handymax vessels.
The Company has a total of 20 newbuilding product tanker orders with HMD and SPP Shipbuilding Co., Ltd. of South Korea which include 16 MR and four Handymax ice class-1A vessels. Two of the newbuildings are expected to be delivered to the Company by April 2013 and the remaining 18 by the end of 2014. The Company also has fixed-price options to construct a total of 14 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 20 newbuilding product tankers (16 MR and four Handymax vessels), two of which are expected to be delivered to the Company by April 2013 and the remaining 18 by the end of 2014.
Source: Scorpio Tankers Inc.