Scorpio Buying Six More Ships
For the third time this month, Scorpio Tankersannounced plans to expand its oil tanker fleet Thursday, as the Monaco-based oil shipper continues to deploy cash raised from a recent sale of 30.7 million shares of common stock.
Prior to today, Scorpio had placed orders this month for a grand total of $250 million in new oil tankers to be built for it in Korea -- eight new ships in all. Today, that number increased by six, as Scorpio announced it has exercised options to have Hyundai Mipo Dockyard Co., Ltd., build it two "Handymax ice class-1A" tankers for approximately $31.25 million each, and a further four MR Product tankers for $33 million apiece. In each case, Scorpio is paying slightly more than in contracts placed earlier this month. Total orders placed this month now amount to $444.5 million in value -- far more than the company raised in its recent stock offering.
Timeline-wise, Scorpio will take delivery of two of the MR tankers in Q2 2014. Q3 2014 will see the arrival of a third MR, and also both Handymaxes; Q4, the final MR.
As of today, Scorpio says it has orders for 26 new tankers outstanding, with options on 12 more.
The article Scorpio Buying Six More Ships originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.