| Scorpio continues buying spree |
| NYSE-listed Scorpio Tankers has finalised more newbuildings orders as it reports second-quarter results that exceeded analysts' forecasts. From Hyundai Mipo, the Emmanuele Lauro-led company has ordered two MR product tankers, each priced at USD34.5 million, and two Handymax product tankers, each priced at USD32.5 million. The ships are due for delivery in the first half of 2017 under a contract including fixed-price options for another six MRs and six Handymaxes. In May-July, Scorpio signed to purchase seven newbuilding resales (five LR2s and two MRs) for deliveries in August-September. Scorpio's fleet now comprises 76 owned product tankers on the water plus 12 undelivered newbuildings and 17 chartered-in vessels. The company's recent activity suggests its management is "leaning more towards growth at this point", although Scorpio has balanced its spending between dividends, share buybacks, and vessel acquisitions, said JP Morgan analyst Noah Parquette. Scorpio Tankers posted net income of USD57.6 million for the second quarter, reversing a net loss of USD574,000 in the quarter last year. Adjusted earnings of USD0.35/share came in above the analyst consensus forecast for earnings of USD0.30/share. Timecharter equivalent rates for the Scorpio Tankers fleet averaged USD23,469/day in the second quarter of this year, up 84% from the same period in 2014. |