Scorpio Tankers Inc. (NYSE: STNG) announced its results for the three and six months ended June 30, 2019 and commitments received to partially finance the purchase and installation of scrubbers, reports MarineLog.
Lesser net loss
Three months ended June 30
- For the three months ended June 30, 2019, the company’s net loss was $29.7 million, or $0.62 basic and diluted loss per share.
- For the three months ended June 30, 2018, the company had a net loss of $68.9 million, or $2.23 basic and diluted loss per share.
In the prior year’s equivalent quarter, the company had a net loss of $68.9 million, or $2.23 basic and diluted loss per share.
Six months ended June 30
- For the six months ended June 30, 2019, the company had a net loss of $15.2 million, or $0.32 basic and diluted loss per share.
- For equivalent 2018 period, the company had a net loss of $100.7 million, or $3.26 basic and diluted loss per share.
Financial commitments
According to Scorpio Tankers, they have received commitments for seven different facilities to partially finance the purchase and installation of exhaust gas cleaning systems, or “scrubbers” on some of its.
These commitments are expected to increase the company’s liquidity by approximately $87 million.
Scrubber finance
The company reported that discussions are on with a different group of financial institutions to finance the purchase of scrubbers. If consummated, expect to increase liquidity by an additional $35 million.
All of these agreements are expected to be signed in the next few months and the drawdowns will occur as scrubbers are installed throughout the remainder of 2019 and 2020.
Drydock, Scrubber and Ballast Water Treatment Update
- Three LR2 tankers completed their scrubber installations during the second quarter of 2019 for aggregate costs of $8.6 million and incurred an aggregate of 108 off hire days.
- Three MR tankers completed their class required special surveys and scrubber installations during the second quarter of 2019 for aggregate costs of $9.5 million and incurred an aggregate of 165 off-hire days.
- One ice-class 1A Handymax tanker completed its class required special survey and ballast water treatment system installation during the second quarter of 2019 for aggregate costs of $2.7 million and incurred an aggregate of 27 off hire days.
- One LR2 tanker entered drydock for its scrubber installation during the second quarter of 2019, and the installation is expected to be completed during the third quarter of 2019. The aggregate cost of the installation is expected to be $2.5 million, and this vessel was off hire for two days during the second quarter of 2019.
- Three MR tankers entered drydock for their class required special surveys, ballast water treatment system installations, and scrubber installations during the second quarter of 2019, all of which are expected to be completed during the third quarter of 2019. The aggregate costs are expected to be approximately $13.0 million, and these vessels were off hire for an aggregate of 37 days during the second quarter of 2019.
- Two ice-class 1A Handymax tankers entered drydock for their class required special surveys and ballast water treatment system installations during the second quarter of 2019, which were completed during the third quarter of 2019. The aggregate cost is expected to be $4.0 million, and these vessels were off hire for an aggregate of 46 days during the second quarter of 2019.
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Source: MarineLog
