Scorpio Tankers Inc. yesterday announced its financial results.For the three months ended December 31, 2012, the Company had an
adjusted net loss of $3.6 million (see Non-GAAP Measure section below),
or $0.08 basic and diluted loss per share, excluding a $1.3 million, or
$0.03 per share, unrealized loss on derivative financial instruments.For the three months ended December 31, 2011, the Company had an
adjusted net loss of $5.1 million (see Non-GAAP Measure section below),
or $0.16 basic and diluted loss per share, excluding a $66.6 million, or $2.05 per share impairment charge.For the three months ended December 31, 2012, the Company recorded a
net loss of $4.9 million, or $0.11 basic and diluted loss per share.
This is compared to a net loss of $71.7 million or $2.21 basic and
diluted loss per share for the three months ended December 31, 2011.Results for the year ended December 31, 2012 and 2011For the year ended December 31, 2012, the Company had an adjusted net loss of $11.9 million (see Non-GAAP Measure section below), or $0.29
basic and diluted loss per share, excluding a $10.4 million, or $0.25
per share, loss from sales of five vessels, a $3.0 million, or $0.07 per share, write-off of deferred financing fees attributable to the
extension of the 2011 Credit Facility, and a $1.2 million, or $0.03 per
share, unrealized loss on derivative financial instruments.For the year ended December 31, 2011, the Company had an adjusted net loss of $16.1 million (see Non-GAAP Measure section below), or $0.56
basic and diluted loss per share, excluding a $66.6 million, or $2.32
per share impairment charge.For the year ended December 31, 2012, the Company recorded a net loss of $26.5 million or $0.64 basic and diluted loss per share. This is
compared to a net loss of $82.7 million or $2.88 basic and diluted loss
per share for the year ended December 31, 2011.Emanuele Lauro, chief executive officer and chairman of the board, commented, “The first quarter has been marked by seasonal refinery turnarounds in the
East and lower export volumes, yet we have experienced firm markets so
far, particularly in the Atlantic basin as a result of increasing US
Gulf exports. Going forward, we expect improvement in volumes and rates
as several major refineries resume production.“We continue to see confirmation of our longer-term thesis, that
there will be significant increases in product tanker demand days as
refining capacity inexorably shifts to more competitive locations. This
shift is lengthening steaming distances, expanding the opportunity set
for commodity traders, and solidifying the role of the product tanker as inexpensive and flexible storage as port infrastructure — both in the
developed and developing world — is constrained.”Mr. Lauro concluded, “Our new vessels are performing well,
realizing the fuel savings we previously announced, and we are confident that our newbuilding program is well-timed. We see a very attractive
competitive landscape to match our profile for growth.”Newbuilding vessel ordersIn February 2013, the company exercised an options with Hyundai Mipo
Dockyard Co. Ltd. of South Korea (HMD) for the construction of four
Handymax, ice class 1A product tankers (38,000 DWT) for approximately
$31.3 million each.These fuel efficient vessels will be delivered in the third quarter
of 2014. In conjunction with these contracts, the Company received four
new fixed price options for similar vessels which would be delivered in
the first half of 2015.In February 2013, the Company also reached an agreement with SPP
Shipbuilding Co., Ltd. of South Korea (SPP) for the construction of four MR product tankers for approximately $32.5 million each, two of which
are the exercise of options from a previous contract. These vessels will be delivered in the third and fourth quarters of 2014. In conjunction
with these contracts, the Company received extensions on several
previously agreed options and received four new fixed price options for
similar vessels which would be delivered in 2015.In January 2013, the Company reached an agreement with HMD for the
construction of two MR product tankers for approximately $32.5 million
each. These vessels will be delivered in May and June 2014.The Company currently has a total of 20 product tanker newbuilding
orders with HMD and SPP (16 MR and four Handymax). Two of the
newbuildings are expected to be delivered to the Company by April 2013
and the remaining 18 by the end of 2014. The Company also has
fixed-price options to construct a total of 14 additional newbuilding
product tankers at these yards.2013 Credit FacilityIn February 2013, the Company signed a commitment letter for a $267.0 million credit facility (“2013 Credit Facility”) with Nordea Bank
Finland plc, acting through its New York branch, ABN AMRO Bank N.V and
Skandinaviska Enskilda Banken AB.The 2013 Credit Facility, which will be split into a term loan and a
revolving loan, will be used to finance up to 60% of the purchase price
of vessels, including newbuildings upon delivery. The credit facility
matures six years after the loan is signed. The covenants and other
conditions are similar to the Company’s existing credit facilities.Delivery of STI SapphireThe Company took delivery of the sixth vessel under its Newbuilding
program, STI Sapphire, in January 2013. Upon delivery, the vessel began a time charter for up to 80 days at $20,750 per day. The vessel was
partially financed by the Company’s 2011 Credit Facility.Time chartered-in vesselsIn January 2013, the Company agreed to time charter-in and took
delivery of a 2007 built MR ice-class 1B product tanker (49,999 DWT) on a one year time charter-in agreement at $14,000 per day. The agreement
also contains an option for the Company to extend the charter by one
year at $15,000 per day.In January 2013, the Company took delivery of a previously announced
2013 built MR product tanker (51,561 DWT). This vessel is a sister ship
of our newbuilding vessels from HMD. The vessel will be chartered-in for three years at $15,750 per day in year one, $16,250 per day in year two and $16,750 per day in year three. The agreement includes two
consecutive options for the Company to extend the charter for up to two
consecutive one year periods at $17,500 per day and $18,000 per day.In January 2013, the Company took delivery of a previously announced
2007 built MR ice-class 1B product tanker (52,684 DWT) on a one year
time charter-in agreement at $13,500 per day. The agreement includes an
option for the Company to extend the charter for an additional year at
$14,500 per day.In January 2013, the Company took delivery of a previously announced
2003 built LR1 product tanker (72,344 DWT) on a two year time charter-in agreement at $11,250 per day with a 50% profit sharing provision
whereby the Company splits any of the vessel’s profits above $11,250 per day with the vessel owner. The agreement includes an option for the
Company to extend the charter for an additional year at $12,500 per day
with a 50% profit sharing provision.In January 2013, the Company took delivery of a previously announced
2012 built LR2 product tanker (99,993 DWT) on a six month time
charter-in agreement at $14,750 per day. The Company has options to
extend the charter for three consecutive six month periods at $15,000
per day, $15,250 per day, and $15,500 per day respectively.In January 2013, the Company took delivery of a previously announced
2008 built LR2 product tanker (115,406 DWT) on a six month time
charter-in agreement at $16,000 per day. The Company has options to
extend the charter for three consecutive six month periods at $16,250
per day, $16,500 per day, and $16,750 per day respectively.
TANKERS
26 February 2013 - 20:12
Scorpio Tankers Ends Year in Red
For the three months ended December 31, 2012, the Company had an adjusted net loss of $3.6 million
TANKERS
26 February 2013 - 20:12
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