Just two months after declaring that it had "no plans for further new building contracts," Scorpio Tankers (NYSE: STNG) has decided to do just that -- build more tankers.
On Tuesday, the Monaco-based petro-shipper announced that it has contracted with Hyundai Samho Heavy Industries and Daewoo Shipbuilding and Marine Engineering Co. to build it four Very Large Gas Carriers, two medium-range tankers, and two Handymax ice class-1A tankers.
Both Handymaxes are scheduled to be delivered in the fourth quarter of 2014, both MRs in the second-quarter 2015, and the four liquid propane vessels in the third and fourth quarters of 2015. Scorpio advised that it expects the cost of the eight vessels to amount to $434 million, combined.
In related news, Scorpio announced last week plans to float 20 million new shares of common stock at $9.50 per share -- raising $190 million in all, or less than half the cost of the new vessels it has ordered.
