Scorpio Tankers posts more losses

Product tankers owner and operator reports a net loss of $68.9m in the second quarter, slightly higher than the year-earlier period, mainly because of a loss on a convertible loan and a write-off on deferred financing fees

News ID: 80147

Date: 01 August 2018 - 11:44

SCORPIO Tankers declared a net loss of $68.9m in the second-quarter period, compared with a net loss of $68.3m in the same period a year earlier. For the first six months of the year, the US-listed company posted a net loss of $100.7m, up from $79.8m a year earlier.

After earlier this month agreeing to sell six medium-range tankers and one long range two tanker to an unnamed international financial institution in a leaseback deal to improve liquidity, Scorpio announced on Tuesday it had reached an agreement to sell and leaseback two handymax product tankers (STI Battersea and STI Wembley) and two MR product tankers (STI Texas City and STI Meraux), also to an unnamed international financial institution. Scorpio, which owns or finance leases 109 product tankers, and time or bareboat charters-in 17 product tankers, said it expects to raise an aggregate of $31.8m in new liquidity after the repayment of the existing debt upon completion of the deal.

Scorpio has so far secured average time charter equivalent revenue for its pooled LR2 tankers of about $12,000 per day for 45% of the days in the third quarter. In the second quarter, its daily revenue averaged $12,669 per day.