Monaco-headquartered Scorpio Tankers has revealed another series of vessel repurchases tied to debt or lease financing.
The Emanuele Lauro-led product tanker giant with a fleet of 111 ships will free 13 ships of debt or lease obligations, including three 2013-built MR units STI Beryl, STI Le Rocher, and STI Larvotto in a $29.1m deal expected in December.
The New York-listed firm will also purchase four 2012-built MRs STI Ruby, STI Topaz, STI Garnet, and STI Onyx for $29m that are currently financed as part of the BCFL Lease Financing (MRs).
Three 2014-built handymax product carriers STI Acton, STI Camden, and STI Clapham, currently financed as part of the Prudential credit facility should be released in January 2024 for $33.7m.
In addition, Scorpio plans to pay off TSFL Lease Financing for a 2015-built MR trio STI Pontiac, STI Notting Hill and STI Black Hawk in March 2024 in a deal worth $45.6m in aggregate.
Scorpio Tankers has taken several debt reduction actions in the form of vessel buybacks since last summer on the back of the fundamentally sound product tanker market.
Commenting on the latest developments, Emanuele Lauro, chairman and CEO, said: “The product tanker market remains strong, MR rates have led the way and we are seeing an improvement in LR2 rates as winter demand increases and Middle East refinery maintenance concludes. Our balance sheet continues to improve and the commitments to repay the debt or lease financing obligations on 13 vessels reflect our commitment to lowering leverage and borrowing costs.”
