Scorpio Tankers to Sell Seven VLCCs

Scorpio Tankers has announced that it has entered into an agreement to sell its seven Very Large Crude Carriers (VLCCs) under construction for a gain of approximately $50 million.

This transaction is subject to the execution of definitive agreements and satisfaction of customary closing conditions and is expected to close by the end March 2014.

Subsequent to this transaction, the Company has 56 newbuilding product tanker orders with HMD, SPP, HSHI and DSME (30 MRs, 14 Handymaxes and 12 LR2s). The estimated future payment dates and amounts are as follows:

Q1 2014                       223.4    million
Q2 2014                       334.7    million
Q3 2014                       422.0    million
Q4 2014                       292.1    million
Q1 2015                       167.5    million
Q2 2015                       168.2    million
Total                          1,607.9    million

Scorpio Tankers is a provider of marine transportation of petroleum products worldwide. The company currently owns 21 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 14 MR tankers, and one post-Panamax tanker) with an average age of 4.0 years, time charters in 31 product tankers (ten LR2, five LR1, seven MR and nine Handymax tankers), and has contracted for 56 newbuilding product tankers (30 MR, 12 LR2, and 14 Handymax ice class-1A product tankers), 43 are expected to be delivered to the company throughout 2014 and 13 in 2015. The company also owns approximately 26 per cent of Dorian LPG.