Scorpio Tankers has entered into agreements to sell four 2014‑built, scrubber‑fitted MR product tankers—STI Battery, STI Venere, STI Milwaukee and STI Yorkville—for $32 million each, while simultaneously agreeing to purchase four new scrubber‑fitted MR vessels from Jingjiang Nanyang Shipbuilding Co., Ltd. for $45 million apiece. The sales are expected to close in the first quarter of 2026 and the newbuilds will be delivered in the second and third quarters of 2026 and the first and second quarters of 2027. The transaction is financed through the company’s 2023 $225 million revolving credit facility, with $7.3 million of debt outstanding on each sold vessel, ensuring that the proceeds from the sales offset the purchase costs and require no additional capital outlay.
Scorpio’s strategy of maintaining a young, efficient fleet is reinforced by this deal. The older vessels, built in 2014, are being replaced with newer, scrubber‑equipped ships that can run on cheaper high‑sulfur fuel while meeting stricter environmental regulations. The move improves fuel efficiency, reduces maintenance expenses, and positions the company to capture higher charter rates in a tightening market where newer, cleaner vessels command premium rates.
Financially, the transaction preserves liquidity and supports the company’s deleveraging agenda. The sale proceeds cover the purchase costs, leaving the company’s current ratio at 4.81 and its debt‑to‑capital ratio at 0.23. By using existing credit lines rather than taking on new debt, Scorpio maintains a disciplined capital‑allocation approach and avoids additional interest burden.
The tanker market remains cyclical, with demand for newer, environmentally compliant vessels rising as regulatory pressure mounts. Scrubber technology allows operators to use lower‑cost fuel without violating sulfur limits, giving Scorpio a competitive edge in charter negotiations. The timing of the deal aligns with a broader industry trend toward fleet renewal and environmental compliance.
Chairman and CEO Emanuele Lauro emphasized that the transaction “enhances the fleet’s age profile and overall quality while requiring minimal incremental capital expenditure.” The statement underscores the company’s confidence that the deal will strengthen its operational profile without compromising financial flexibility.
Scorpio has pursued a similar renewal path in 2024, selling five MR and two LR2 vessels and acquiring newbuilds to keep its fleet age below nine years. The current transaction continues that trajectory, reinforcing the company’s long‑term strategy of operating a modern, efficient, and environmentally compliant fleet while maintaining a robust balance sheet.
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