Scorpio Tankers is exercising purchase options for six ships Ship’s crew

Product tanker shipping company Scorpio Tankers (NYSE: STNG) announced Monday that it has exercised purchase options on six vessels.

The acquisition includes two 2016-built LR2 product tankers (STI Grace and STI Jermyn), one 2019-built LR2 product tanker (STI Lavender), two 2019-built MR product tankers (STI Magnetic and STI Marshall) and one 2020-built MR product tanker (STI Wonder).

Scorpio said the leases bear interest at LIBOR plus a margin of 3.50% per annum. Meanwhile, the purchase, upon closing in May 2023, will result in a $149.8 million debt reduction.

Scorpio Tankers Inc., led by CEO Emanuele A. Lauro and President and Director Robert Bugbee, currently owns 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers) with an average age of 113 product tankers (39 LR2 tankers , 60 MR tankers and 14 Handymax tankers), financed leasing contracts or bareboat charter 7.1 years.

In its Q4 2022 investor presentation, the Company said global demand for refined products continues to rise, leading to a significant increase in product tanker rates amid a record low order backlog and rising tonne-kilometres.

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