Scorpio in $803 million swoop on 19 Trafigura items vessels

Emanuele A. Lauro, Chairman as well as CHIEF EXECUTIVE OFFICER,Scorpio Bulkers

Scorpio Tankers Inc (NYSE: STNG) reports that it has actually obtained subsidiaries ofTrafigura Maritime Logistics Pte Ltd., a wholly-owned subsidiary of Trafigura Group Pte Ltd, that have actually leasehold passions in 15 Medium Range (MR) item vessels as well as 4 LR2 item vessels. Scorpio Tankers will certainly think the here and now worth of the financing lease plan of around $668 million as well as concern around 4.7 million shares at $29.00 per share to Trafigura for an accumulated market price of around $135 million. These shares will certainly go through a normal lock-up via completion of 2019.

Scorpio Tankers additionally introduced today exclusive positionings with Trafigura for $35 million as well as Scorpio Services Holding Ltd., a relevant event, for $15 million for an accumulated overall of $50 million or 1,724,137 shares at $29.00 per share.

Following the closing of both purchases, anticipated previously September 27, 2019, Trafigura will certainly have around 10 percent of the common shares of Scorpio Tankers.

The new-build super-eco vessels built by Hyundai Vinashin as well as New Times shipyards, are all fitted with exhaust gas cleansing systems running with a prospective substantial affordable price benefit in the altering oil as well as products markets.

Emanuele A. Lauro, Chief Executive Officer ofScorpio Tankers Inc commented:

“This transaction represents a close alignment between Scorpio and Trafigura, a strategic customer and now a valued shareholder. We share common beliefs in quality assets, quality service, and most importantly, the favorable fundamentals currently unfolding in the product tanker market. This fleet of 19 ultra-modern product tankers is a singular opportunity in an otherwise diminished global order book. The average age of our fleet will be reducing (from 4.1 to 3.7 years) and our fuel efficiency increasing. At the same time, IMO 2020 and other demand drivers are set to increase ton-mile demand significantly over the coming months. In addition to Trafigura being a longstanding customer, its investment in Scorpio Tankers represents a new stage in our partnership which we believe will serve all our shareholders and stakeholders well.”

Rasmus Bach Nielsen, Global Head of Wet Freight at Trafigura commented:

“Trafigura appreciates a close working connection with Scorpio Tankers, a firm that we think about to be effectively run. Today’s choice finishes a tactical choice to crystalize monetary advantages currently as well as to relocate long-term leasing commitments right into leading delivery equities, a location where we see considerably extra worth as well as upside possible in the duration in advance.

“We are delighted that through these agreements Trafigura has become a significant shareholder in Scorpio Tankers. In our view, minimal supply growth and an expected demand spike through oil market disruption and bunkering inefficiencies, are making product tanker market fundamentals look healthier than we’ve seen for many years.”

Clarksons Platou Securities AS served as single monetary expert to Trafigura.

The Vessels

The procurement includes leasehold passions in 4 LR2s as well as 15 MRs for a total amount of 19 item vessels. Fifteen of the vessels are presently on the water with an ordinary age of 0.5 years, as well as the continuing to be 4 MR vessels will certainly be supplied in 2020. On shipment to Scorpio, all the vessels will certainly be fitted with exhaust gas cleansing systems, frequently referred to as scrubbers. The business as well as technological monitoring of the vessels will certainly be transitioned to Scorpio Tankers adhering to the closing of the deal.

The fleet checklist is as complies with: