Scorpio Tankers (STNG) to Purchase LR2 Newbuilding Contracts; Sell Three Older Vessels

Scorpio Tankers (NYSE: STNG) announced that it (i) has reached an agreement to purchase four LR2 newbuilding contracts and options to purchase two additional LR2 newbuilding contracts, (ii) has reached agreements to sell three of its older vessels, (iii) has taken delivery of six newbuilding vessels, and (iv) will have a conference call on Wednesday December 17, 2014 at 10:00 AM EST or 4:00 PM CET.

Newbuildings Contracts and Options

The Company reached an agreement with Scorpio Bulkers Inc., a related party, to purchase newbuilding contracts for four LR2 product tankers to be constructed at shipyards in Korea and options, which expire on May 31, 2015, to purchase two additional LR2 newbuilding contracts. The purchase price for each of the four LR2 newbuilding contracts is $51.0 million with scheduled vessel deliveries in the first three quarters of 2016. The purchase price for the two option contracts is fixed at $52.5 million for each contract with scheduled vessel deliveries in the fourth quarter of 2016.

The independent members of the Company's Board of Directors unanimously approved the transaction with Scorpio Bulkers Inc. described in the preceding paragraph.

Sale of Three Vessels

The Company reached agreements to sell Venice (2001 built Post-Panamax), STI Harmony (2007 built LR1), and STI Heritage (2008 built LR1) for approximately $74.0 million in aggregate. In connection with the Company's entry into these vessel sale agreements, the Company will record a write-down of approximately $2.6 million in the fourth quarter of 2014.

Newbuilding Vessel Deliveries

The Company recently took delivery of the following vessels:

• STI Condotti, an LR2 product tanker, was delivered from Hyundai Samho Heavy Industries. Upon delivery, this vessel began a voyage for 55 days at approximately $30,000 per day.
• STI Battery, an MR product tanker, was delivered from Hyundai Mipo Dockyard of South Korea ("HMD"). Upon delivery, this vessel began a time charter for up to 120 days at approximately $18,000 per day.
• STI Soho, an MR product tanker, was delivered from SPP Shipbuilding Co., Ltd. of South Korea. Upon delivery, this vessel began a time charter for up to 120 days at approximately $18,000 per day.
• STI Finchley, STI Clapham and STI Poplar, Handymax product tankers were delivered from HMD. Upon delivery, each vessel began a time charter for up to 120 days at approximately $14,000 per day.

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