Tag Archives: Scorpio Tankers

Business, Finance, Occupation & Industry

Scorpio's Fleet Grows Again

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By Rich Smith, The Motley Fool

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Scorpio Tankers‘ hunger for new ships just cannot be assuaged.

Barely a week after placing an order for six new tankers late last month, the company’s back in the market for more tankers — again. On Thursday, the Monaco-based oil shipper announced it is taking over the contracts for construction of four MR-class tankers that are currently being built by Hyundai Mipo Dockyard Co. Ltd. (HMD) for a third party. Scorpio will sign novation contracts with said customer, essentially “stepping into its shoes,” and becoming the contracting customer. Each of the STI Amber-class vessels will cost it $36.5 million when delivered — sometime between June and September 2013.

Scorpio’s also hiring two more shipbuilding contracts with HMD of its own, exercising options to buy two Handymax ice class-1A vessels. These will cost Scorpio $31.5 million apiece, inclusive of the cost of taking out fixed-price options on even more ships.

Finally, Scorpio has chartered-in three existing vessels for its fleet, a Handymax and two LR2 product tankers, for which it will pay day rates of between $12,600 and $16,250.

At present, Scorpio has a total of 39 tankers under contract to be built — 23 MRs, eight LR2s, and eight Handymaxes. Scorpio expects to have five of these ships in hand by September 2013, with the rest arriving before the end of 2014. When all’s said and done, the company expects to pay $1.3 billion for these ships now under contract.

The article Scorpio’s Fleet Grows Again originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Scorpio Buying Another 6 Ships

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By Rich Smith, The Motley Fool

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Flush with cash from its second follow-on stock offering in as many months, Scorpio Tankers is back in the market for more tankers.

Share floatations in February and March have raised a combined $465 million in gross proceeds for Scorpio. Today, the company announced that it’s deploying some of that cash to order another four LR2 tankers from Korea’s Hyundai Samho Heavy Industries Co. Ltd. for approximately $50 million each, and taking out fixed-price options to build an unspecified number of additional LR2 vessels. Scorpio’s also ordering two more LR2 product tankers from Daewoo Shipbuilding and Marine Engineering Co. Ltd. — also at $50 million apiece, and also with options to buy an unspecified number of additional LR2 vessels.

In related news, Scorpio announced today that it’s taken delivery of its seventh MR product tanker, the STI Emerald, and has already chartered it out to a customer for up to 120 days at the rate of $19,500 per day. Additionally, Scorpio says it has chartered-in two LR2 tankers and one Handymax tanker. Each of the three tankers is chartered for one year, with Scorpio paying $16,000 a day for the LR2’s, and $12,700 a day for the Handymax.

As for its building plan, the company says it now has 33 newbuild tankers under construction for it — 19 MRs, eight LR2s, and six HandyMaxes. All of these ships should be in its possession before the end of next year.

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The article Scorpio Buying Another 6 Ships originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Scorpio Selling More Stock, Raising More Cash

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By Rich Smith, The Motley Fool

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“What? You mean this isn’t free?” This realization that purchases come with price tags seems to have struck Scorpio Tankers this morning, after the company completed a two-month, 28-ships-long shopping spree for new oil tankers to upgrade its fleet. Solution: It’s time to sell more shares.

After placing orders for more than $494 million worth of new vessels, Scorpio’s bank account is looking mighty thin. Even with the $230 million in gross proceeds from its February follow-on offering, the company’s bank account today can’t possibly have more than $317 million or so in it. So to raise the extra cash to pay for its buying binge, Scorpio’s heading back to the public markets and floating even more shares.

Twenty-nine million more shares, to be precise, and Scorpio’s pricing them at $8.10 apiece, or a bit below the shares’ 50-day moving average, but 8% higher than the price it charged last time around. Together, the proceeds of $235 million, plus the money from last month’s floatation, plus the money left in Scorpio’s bank account, should be enough to cover its shipbuilding tab to date, and even leave a bit left over to buy more ships.

As of today, though, Scorpio shares are dropping, down 3.8% at $8.20.

The article Scorpio Selling More Stock, Raising More Cash originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance