Scorpio Tankers Inc. Announces an Agreement to Sell Two MR Product Tankers
May 08 2017 - 6:25AM
Scorpio Tankers Inc. (NYSE:STNG) (the "Company") announced
today that it has reached an agreement with an unrelated third
party to sell two of its 2013 built MR product tankers (STI
Sapphire and STI Emerald) for approximately $56.4
million in aggregate. The sales are expected to close
in June 2017 at which time the Company will repay the
outstanding secured debt for these vessels of $27.6 million in
aggregate. The Company will record a write-down of
approximately $9.3 million during the second quarter of
2017 in connection with the entry into this agreement.
About Scorpio Tankers Inc.Scorpio Tankers Inc.
is a provider of marine transportation of petroleum products
worldwide. Scorpio Tankers Inc. currently owns 78 product tankers
(23 LR2, 14 Handymax, and 41 MR tankers) with an average age of 2.3
years and time or bareboat charters-in 22 product tankers (one LR2,
one LR1, 11 MR and nine Handymax tankers). The Company also has
contracted for six newbuilding MR product tankers which are
expected to be delivered throughout the remainder of 2017 and the
first quarter of 2018. Additional information about the Company is
available at the Company's website www.scorpiotankers.com,
which is not a part of this press release.
Forward-Looking StatementsMatters discussed in
this press release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about their
business. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The
words "believe," "expect," "anticipate," "estimate," "intend,"
"plan," "target," "project," "likely," "may," "will," "would,"
"could" and similar expressions identify forward-looking
statements.
The forward-looking statements in this press release are based
upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, our management's
examination of historical operating trends, data contained in our
records and other data available from third parties. Although we
believe that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, we cannot assure you that we
will achieve or accomplish these expectations, beliefs or
projections. We undertake no obligation, and specifically decline
any obligation, except as required by law, to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
In addition to these important factors, other important factors
that, in our view, could cause actual results to differ materially
from those discussed in the forward-looking statements include the
failure of counterparties to fully perform their contracts with us,
the strength of world economies and currencies, general market
conditions, including fluctuations in charter rates and vessel
values, changes in demand for tanker vessel capacity, changes in
our operating expenses, including bunker prices, drydocking and
insurance costs, the market for our vessels, availability of
financing and refinancing, charter counterparty performance,
ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, general domestic and
international political conditions, potential disruption of
shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other factors. Please see
our filings with the SEC for a more complete discussion of these
and other risks and uncertainties.
Scorpio Tankers Inc. 212-542-1616
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