Scorpio Tankers buys more ships and shares Ship’s crew

Scorpio Tankers Inc. (NYSE: STNG) announced Tuesday that it has exercised its call options on six vessels and also repurchased additional common stock on the open market.

With respect to purchase options, the Company exercised its options on one 2019-built LR2 product tanker (STI Lobelia) and five 2019-built MR product tankers (STI Magic, STI Mystery, STI Marvel, STI Mythic and STI Magister). The company said the purchases are expected to occur in June 2023 and will result in a $147.3 million debt reduction for the company. The leases bear interest at LIBOR plus a margin of 3.50% per annum.

The latest vessel acquisitions follow Scorpio Tankers’ exercise of purchase options for six additional vessels in March. This acquisition included two LR2 product tankers built in 2016, one LR2 product tanker built in 2019, two MR product tankers built in 2019 and one MR product tanker built in 2020.

Scorpio Tankers also announced the purchase of 396,706 additional shares of common stock on the open market for $21.5 million ($54.41 per share average), bringing the total number of common shares on the open market year-to-date to 3,557,873 market for approximately $185 million.

The share repurchases are part of a $250 million stock repurchase program approved by the Company’s Board of Directors on February 15, replacing the previous program, which was approved on October 31, 2022.

The Company has been in the process of repurchasing its shares since last July, with a total of 7,467,746 common shares repurchased in the open market, including 2,241,881 common shares repurchased in Q3 2022 and 1,667,992 common shares repurchased in Q4 2022 .

Scorpio Tankers Inc. is a global provider of marine transportation of petroleum products. The Company currently owns 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 7.2 years, financed on lease or bareboat charter.

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