Scorpio Tankers STNG today announced that it
will recognize a net gain from sales and write downs of approximately
$14.0 million due to the gain on the previously announced VLGC
transaction and the write down of some of the older vessels in the
fleet as the Company has designated these vessels as "Held for sale."
The Company also announced that it has closed on the previously
announced acquisition of four MR product tankers currently under
construction in South Korea.
The purchase price of the four MR product tankers, in aggregate, was
approximately $154.4 million. In connection with the sale, the
Company issued 3,523,271 common shares (or approximately 26% of the
purchase price) and $4.4 million in cash in exchange for the four
vessels. The remaining purchase price will be paid to the shipyard
from cash-on-hand and bank debt. One vessel is expected to be
delivered in the third quarter of 2014, and the remaining three are
expected to be delivered in the first quarter of 2015. These vessels
are similar to the Company's newbuildings that are also under
construction at the same shipyard.
Emanuele Lauro, Chairman and CEO of Scorpio Tankers, commented: "The
reclassification of some of our older vessels further emphasizes our
commitment to our modern fuel efficient fleet."
Mr. Lauro concluded, "While the fourth quarter of 2013 started out
weak in all tanker sectors, we have started to see improving rates in
the product tanker market in the last few weeks. Unfortunately, the
majority of the benefits from the improving market will not be
realized until January 2014."
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of
petroleum products worldwide. Scorpio Tankers Inc. currently owns 19
tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 12 MR
tankers, and one post-Panamax tanker) with an average age of 4.3
years, time charters-in 29 product tankers (eight LR2, four LR1,
eight MR and nine Handymax tankers), and has contracted for 65
newbuilding vessels (32 MR, 12 LR2, and 14 Handymax ice class-1A
product tankers and seven VLCCs), 45 are expected to be delivered to
the C
ompany in 2014, 16 in 2015 and four in 2016. The Company also
owns 30% of Dorian LPG Ltd. 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, 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.
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 Securities and Exchange
Commission for a more complete discussion of these and other risks
and uncertainties.
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