Tanker owner’s US Securities and Exchange Commission (SEC) filing shows a series of sale and leaseback arrangements agreed during Q3
In July 2023, Scorpio Tankers exercised purchase options on six MR product tankers: STI Miracle, STI Maestro, STI Mighty, STI Modest, STI Maverick, and STI Millennia.
In August, the company exercised several purchase options including one on LR2 product tanker STI Supreme that had been financed with Ocean Yield Lease. Scorpio also gave notice to exercise purchase options on MR product tanker STI Maximus and the two LR2 product tankers STI Lily and STI Lotus, MR product tankers STI Galata and STI La Boca, three LR2 product tankers STI Stability, STI Solace and STI Solidarity, five LR2 product tankers STI Gauntlet, STI Gladiator, STI Goal, STI Gratitude and STI Guide. The company said the purchases are expected to happen in Q4 2023.
In September 2023, Scorpio exercised purchase options on two MR product tankers (STI Leblon and STI Bosphorus), four MR product tankers (STI Esles II, STI Donald C Trauscht, STI Jardins and STI San Telmo). The purchases of STI Esles II and STI Donald C Trauscht are expected to occur in Q4 2023. The purchases of STI Jardins and STI San Telmo are expected to occur in Q1 2024.
Also in September, Scorpio exercised the purchase option on MR product tanker STI Amber. The purchase is expected to occur in Q4 2023, and the outstanding lease liability is expected to be US$8.2M at the date of purchase.
Loans of more than US$1Bn were initiated in the quarter to fund Scorpio’s vessel moves. The credit facility was over-subscribed and capped at US$1Bn. It also features a US$200M accordion feature that can be declared within the next two years. The Monaco-based shipowner has been looking to reduce its debt burden, wiping out debt worth US$1.2Bn off the balance sheet using lease buyouts and debt repayments over the course of 2022, including exercising purchase options on eight ships last October.
Over Q3, the company also initiated a share buy-back programme that saw it repurchase more than 1.6M of its shares. Scorpio Tankers has a fleet of 112 vessels with an average age of 7.7 years.
Riviera Maritime Media’s Tanker Shipping & Trade Conference, Awards & Exhibition will be held 7-8 November 2023 in Athens, Greece. Use this link for further information and to register your interest
© 2023 Riviera Maritime Media Ltd.