Monaco-based Scorpio Tankers exercises the purchase options on six ships which will result in a debt reduction of $149.8 million for the company.
The New-York listed owner of product tankers said it has given notice to exercise its purchase options on two 2016 built LR2 product tankers, the STI Grace and STI Jermyn, one 2019 built LR2 product tanker, the STI Lavender, two 2019 built MR product tankers, the STI Magnetic and STI Marshall. and one 2020 built MR product tanker, the STI Miracle.
The company said the leases bear interest at LIBOR plus a margin of 3.50% per annum, and that the purchase, which is expected to occur in May 2023, will result in a debt reduction of $149.8 million for Scorpio Tankers.
The company currently owns, finance leases or bareboat charters-in 113 product tankers (39 LR2 tankers, 60 MR tankers and 14 Handymax tankers), with an average age of 7.1 years.
In accordance with the company´s financial report, Scorpio Tankers has sealed during the fourth quarter of 2022, time charter-out agreements on three vessels (two LR2s and one MR). The terms of each of the agreements are for three years averaging between $35,000 and $37,500 per day for the LR2s, and for three years for $25,000 per day for the MR.
Also in the previous year and until 16th of February, 2023 the company has entered into a total of 14 time-charter out agreements (nine LR2s and five MRs).
The top management also reveals that in October 2022 the company repaid the outstanding debt which had financed one LR2 product tanker, the STI Madison, of $17.5 million.
The owner has taken several debt reduction actions since last year. At the beginning of 2023, the US-listed shipowner also exercised its purchase options on two MR product tankers, the STI Brooklyn and STI Ville, and two LR2 product tankers, the STI Rose and STI Rambla, which were previously financed under the AVIC Lease Financing. These purchases resulted in a debt reduction of $77.8 million, as Scorpio Tankers said.