Scorpio Tankers Inc. Announces Agreement to Construct Two Fuel Efficient LR2 Newbuildings

Scorpio Tankers Inc. announced yesterday that it has reached an agreement with Hyundai Samho Heavy Industries Co., Ltd. to construct two 114,000 dwt LR2 Product Tankers for $49.75 million. These vessels are expected to be delivered to the Company in the third quarter of 2014. This order is a continuation of the Company's existing newbuilding program for fuel-efficient vessels. These newbuildings come with fixed-price options for the construction of additional LR2 vessels.
The Company has a total of 28 newbuilding product tanker orders with Hyundai Mipo Dockyard Co., Ltd., SPP Shipbuilding Co., Ltd. and Hyundai Samho Heavy Industries Co., Ltd. of South Korea which include 20 MR, six Handymax ice class-1A and two LR2 vessels. Two of the newbuildings are expected to be delivered to the Company by April 2013 and the remaining 26 by the end of 2014. The Company also has fixed-price options to construct 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 4.7 years, time charters-in 20 product tankers (three LR2, three LR1, nine MR and five Handymax tankers), and has contracted for 28 newbuilding product tankers (20 MR, six Handymax ice class-1A and two LR2 vessels), two of which are expected to be delivered to the Company by April 2013 and the remaining 26 by the end of 2014.
Source: Scorpio Tankers Inc.