Scorpio Tankers Inc. yesterday that it has taken delivery of STI Garnet, the fourth vessel under its previously announced Newbuilding program, the delivery of STI Coral, and agreements to time charter-in additional vessels.
Delivery of STI Garnet
The Company took delivery of STI Garnet, the fourth of ten vessels scheduled for delivery under the Company’s Newbuilding program. Upon delivery, the vessel began a time charter for up to 120 days at $16,250 per day plus an adjustment based on fuel consumption. The vessel was partially financed by drawing down $23.0 million on its Newbuilding Credit Facility with Credit Agricole Corporate and Investment Bank and Skandinaviska Enskilda Banken AB.
Delivery of STI Coral
The Company completed the previously announced sale of STI Coral for $25.25 million.
Time Chartered-in Vessels and Other Agreements
The Company took delivery of a 2007 built MR product tanker (50,633 DWT) on a six month time charter-in agreement at $12,000 per day. The agreement includes an option for the Company to extend the charter for an additional six months at $13,000 per day.
The Company agreed to charter-in a newbuilding MR product tanker (51,561 DWT). This vessel is currently under construction at Hyundai Mipo Dockyard Co. Ltd. of South Korea and, upon delivery from the yard, will be chartered-in for three years at $15,750 per day in year one, $16,250 per day in year two and $16,750 per day in year three. Delivery is expected in January of 2013. The agreement includes two consecutive options for the Company to extend the charter for up to two consecutive one year periods at $17,500 per day and $18,000 per day.
The Company took delivery of a 2009 built LR1 (73,800 DWT) on a one year time charter-in agreement at $12,800 per day. The agreement includes two consecutive options for the Company to extend the charter for up to two consecutive one year periods at $13,400 per day and $14,400 per day. Additionally, we have entered into a profit and loss sharing arrangement whereby 50% of the profits and losses above or below the charterhire rate will be shared with a third party.
The Company has also entered into a profit or loss sharing arrangement on the earnings of an LR1 vessel that is not owned or operated by the Company. The agreement stipulates that 50% of all profits and losses (the difference between the vessel’s earnings and the charterhire expense, which is $12,750) will be shared with the counterparty. The counterparty to this agreement is currently time chartering-in this vessel for a period of six months, with an option for the counterparty to extend the agreement for an additional six months, both at $12,750 per day.
The Company agreed to charter-in two LR2 tankers (2011 built and 2012 built, each approximately 100,000 DWT). The vessels will be chartered-in for six months at $14,750 per day and are expected to be delivered in the first half of 2013. The agreements include three consecutive options for the Company to extend the charters for up to three consecutive six month periods at $15,000 per day, $15,250 per day and $15,500 per day. Additionally, we have entered into a profit and loss sharing arrangement whereby 50% of the profits and losses above or below the charterhire rate will be shared with a third party.
Source: Scorpio Tankers, September 21, 2012