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Scorpio Ship-Buying Spree Continues

Another month, another shipbuilding contract for Scorpio Tankers (NYSE: STNG  ) . In February, the Monaco-based oil shipper placed a whopping $444.5 million worth of orders for new oil tankers to be built for it at South Korean shipyards. Now we're in March and, while the month isn't yet one-week old, Scorpio is already back in the market for more ships.

On Thursday, Scorpio announced that it has hired Hyundai Samho Heavy Industries Co. to build it two 114,000 dryweight LR2 Product Tankers for a total price of $49.75 million. The contract also secures for Scorpio the option of buying an unspecified number of additional "LR2" vessels. The designation LR2 refers to the vessels long range, and the LR2 is the largest class of such long-range oil tankers.

As of today's contract, Scorpio now has 28 new ships under order, including:

  • 20 MRs
  • six Handymax ice class-1As
  • the two LR2 vessels ordered today

Scorpio says it expects to take possession of the vessels periodically over time, and to have all 28 of the ships in hand by the end of 2014.

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