Scorpio Tankers Orders Two Product Tankers from HMD (South Korea)

Scorpio Tankers Inc. announced yesterday that it has reached an agreement with Hyundai Mipo Dockyard Ltd. of South Korea for the construction of two 50,000 deadweight ton product tankers to be delivered in May and June 2014. In addition, the Company has taken delivery of four previously announced time chartered-in vessels.

Newbuilding vessel orders

The Company recently reached an agreement with Hyundai Mipo Dockyard Co. Ltd. of South Korea (“HMD”) for the construction of two MR product tankers for approximately $32.5 million each. These vessels will be delivered in May and June 2014 and are a continuation of the Company’s existing newbuilding program for fuel-efficient vessels. In conjunction with these contracts, the Company received fixed price options with HMD to construct up to four 37,000 deadweight ton ‘Handysize’ fuel-efficient product tankers to be delivered within 2014.

The Company currently has a total of 13 MR product tanker newbuilding orders with HMD and SPP Shipbuilding Co., Ltd. of South Korea. Three are expected to be delivered to the Company by April 2013 and the remaining 10 by September 2014. The Company also has fixed-price options to construct a total of 12 additional newbuilding product tankers at these yards.

Delivery of time chartered-in vessels

The Company recently took delivery of four previously announced time chartered-in vessels, two LR2′s, and two MR’s.

Emanuele Lauro, chief executive officer and chairman of the board commented, “Our markets have witnessed significant tightening since the middle of November, beyond what seasonal expectations alone would typically augur. As we look back at 2012, the fundamental changes in trade volumes and flows that we predicted were slow to materialize, but the manifestation of these fourth quarter improvements are becoming evident so far in the current quarter. Between the increases in exports of refined products from the United States, demand from developing markets, and trading activity across volatile commodity markets, we are confident in our newbuilding program and our charter-in strategy.”