NO: DELENG / 2017 / 70663
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Scorpio Tankers to purchase six product tankers, expects $149.8m debt reduction
By Sea and Coast | 14/03/2023
Scorpio Tankers, a Monaco-based shipping company, has announced that it will exercise its purchase options for six product tankers. These include two 2016-built LR2 product tankers, one 2019-built LR2 product tanker, two 2019-built MR product tankers, and one 2020-built MR product tanker. The vessels in question are STI Grace, STI Jermyn, STI Lavender, STI Magnetic, STI Marshall, and STI Miracle.
The company expects that the purchase, scheduled to take place in May 2023, will lead to a debt reduction of $149.8 million. The leases bear interest at LIBOR plus a margin of 3.50% per annum. Scorpio Tankers currently owns and finances leases or bareboat charters in 113 product tankers, including 39 LR2 tankers, 60 MR tankers, and 14 Handymax tankers.
Last year, Singapore-based tanker owner and operator Hafnia entered into a framework agreement for the purchase of 12 vessels from Scorpio Tankers. The move reflects Scorpio Tankers' continued efforts to optimize its fleet and reduce debt in the face of challenging market conditions. The company's decision to exercise its purchase options on these six tankers is seen as a positive sign of confidence in the shipping industry's prospects for the future.