Scorpio Tankers Shrinks Loss as Vessel Revenues Rise

Illustration; Source: Pexels, Under CC0 License Licence

Monaco-based tanker owner and operator Scorpio Tankers managed to cut its net loss for the period ended September 30, 2019, as vessel revenues grew.

For the three-month period ended September 30, 2019, the company reported a net loss of USD 45.3 million, compared to a net loss of USD 71.7 million seen in the same quarter a year earlier.

Looking at the first nine months of 2019, Scorpio Tankers’ net loss stood at USD 60.5 million, significantly less compared to a net loss of USD 172.4 million reported in the same period in 2018.

Vessel revenue for the third quarter of 2019 increased to USD 136 million from USD 119.3 million reported a year earlier. Similarly, vessel revenue was up to USD 482.7 million in the first nine months of the year, compared to USD 417.5 million reported in the same period in 2018.

During the third quarter the company acquired subsidiaries of Trafigura Maritime Logistics, which have leasehold interests in 19 product tankers under bareboat charter agreements with an international financial institution for aggregate consideration of USD 803 million.

Of the 19 vessels, 15 (consisting of 11 MRs and four LR2s) were delivered during 2019 and four MRs are currently under construction.

As part of the agreement, the company closed on the private placements of its common stock at USD 29.00 per share with Trafigura for USD 35 million and with Scorpio Services Holding Limited, a related party, for USD 15 million, for an aggregate of USD 50 million and 1,724,137 common shares.

Scorpio Tankers also informed that it received commitments for nine different facilities to partially finance the purchase and installation of scrubbers on certain of the company’s vessels. These commitments are expected to increase liquidity by USD 120.2 million.

Additionally, the company is in discussions with a different group of financial institutions to finance the purchase of scrubbers which, if consummated, is expected to increase liquidity by an additional USD 57.5 million.

Subject to reaching agreement on satisfactory terms relating to the additional scrubber financing, all of these agreements are expected to be signed in the next few months, and the drawdowns are expected to occur as the scrubbers are installed throughout the remainder of 2019 and 2020.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

Salvage & Wreck

Salvage and Wreck Removal Conference will focus on Casualty management case studies, Dealing with hazardous cargo and container ship fires…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >