Scorpio Building Yet More Tankers

Scorpio Building Yet More Tankers

Just two months after declaring that it had "no plans for further new building contracts," Scorpio Tankers has decided to do just that -- build more tankers.

On Tuesday, the Monaco-based petro-shipper announced that it has contracted with Hyundai Samho Heavy Industries and Daewoo Shipbuilding and Marine Engineering Co. to build it four Very Large Gas Carriers, two medium-range tankers, and two Handymax ice class-1A tankers.

Both Handymaxes are scheduled to be delivered in the fourth quarter of 2014, both MRs in the second-quarter 2015, and the four liquid propane vessels in the third and fourth quarters of 2015. Scorpio advised that it expects the cost of the eight vessels to amount to $434 million, combined.

In related news, Scorpio announced last week plans to float 20 million new shares of common stock at $9.50 per share -- raising $190 million in all, or less than half the cost of the new vessels it has ordered.

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