Scorpio Tankers Announces Sale and Leaseback Agreements for Five 2012 Built MR Product Tankers
September 28 2017 - 4:15PM
Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers” or the
“Company”) announced today that it has agreed to sell and leaseback
five 2012 built MR product tankers (STI Amber, STI Topaz, STI Ruby,
STI Garnet, and STI Onyx) to Bank of Communications Financial
Leasing Co., Ltd. As of today, three of the five transactions
have been completed, which has increased the Company’s liquidity by
approximately $21 million in aggregate after the repayment of the
outstanding debt.
The sales price for each vessel is $27.5 million,
and the Company will bareboat charter-in the vessels for a period
of seven years at $9,025 per day per vessel. The Company also has
three one-year options to extend the bareboat charter agreements
beyond the initial term. In addition, Scorpio Tankers has purchase
options beginning at the end of the fifth year and until the end of
the agreements.
About Scorpio Tankers Inc.Scorpio
Tankers Inc. is a provider of marine transportation of petroleum
products worldwide. Scorpio Tankers Inc. currently owns or finance
leases 106 product tankers (38 LR2 tankers, 12 LR1 tankers, 42 MR
tankers, 14 Handymax tankers) with an average age of 2.2 years and
time or bareboat charters-in 19 product tankers (one LR2 tanker,
nine MR tankers and nine Handymax tankers). The Company has
contracted for three 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 Statements Matters 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," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "may," "should," "expect,"
"pending" 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, management's examination of historical operating
trends, data contained in the Company’s records and other data
available from third parties. Although Scorpio Tankers believes
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 management’s control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections. Scorpio Tankers undertakes 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 the Company’s view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include, unforeseen liabilities, future
capital expenditures, revenues, expenses, earnings, synergies,
economic performance, indebtedness, financial condition, losses,
future prospects, business and management strategies for the
management, expansion and growth of the Company’s operations, risks
relating to the merger with Navig8 Product Tankers Inc (“NPTI”)
including the integration of NPTI’s operations and the possibility
that the anticipated synergies and other benefits of the
acquisition will not be realized or will not be realized within the
expected timeframe, the outcome of any legal proceedings related to
the merger and the related transactions, the failure of
counterparties to fully perform their contracts with the Company,
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
the operating expenses, including bunker prices, drydocking and
insurance costs, the market for the Company’s 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 Scorpio Tankers' filings with the U.S. Securities and
Exchange Commission for a more complete discussion of certain of
these and other risks and uncertainties.
Scorpio Tankers Inc.
212-542-1616
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