Scorpio Tankers Plunges into Loss

Monaco-based tanker owner Scorpio Tankers delivered a net loss of USD 68.3 million for the three months ended June 30, 2017, against a net income of USD 3.8 million seen a year earlier.

The company’stime charter equivalent (TCE) revenue dropped to USD 117.5 million from USD 136.7 million reported in the same three-month period in 2016.

This change was driven by a decrease in overall time charter equivalent revenue per day to USD 13,227 per day from USD 16,903 per day for the second quarter of 2016.

“TCE revenue per day decreased across all of our operating segments as unfavorable market conditions that developed during the second half of 2016, driven by the delivery of newbuildings, high product inventories, low refining margins and a lack of arbitrage opportunities, persisted into the first half of 2017,” Scorpio Tankers said.

For the first half of 2017, the company had a net loss of USD 79.8 million, compared to a net income of USD 31.9 million reported in the first six months of 2016.

TCE revenue for the first half was down to USD 241.2 million, compared to USD 302.3 million reported in the first half of 2016.

In May 2017, Scorpio Tankers entered into a definitive agreement to acquire Navig8 Product Tankers, including its fleet of 12 LR1 and 15 LR2 product tankers for 55 million common shares of the company and the assumption of NPTI’s debt.

In June the company acquired certain of NPTI’s subsidiaries that own four LR1 tankers for an aggregate acquisition price of USD 156 million.

The merger closed on September 1, 2017, and the company acquired the remaining eight LR1 and 15 LR2 tankers. All of the vessels acquired from NPTI are expected to enter the Scorpio Group pools before the end of October 2017.

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