New York-listed Scorpio Tankers has announced the sale of two of its LR2 product tankers, STI Lobelia and STI Lavender, for $61.2m each. The deal, set to close in the fourth quarter of 2025, highlights the company’s strategy to take advantage of strong secondhand vessel values while reducing debt.
This move reflects broader trends in the shipping market, where limited shipyard capacity and rising secondary market activity are shaping pricing dynamics.
Rising Demand in the Secondary Market
Valuations in the secondhand tanker market have seen significant growth, supported by the shortage of shipyard slots, as yards are largely occupied with containership orders. This has pushed tanker operators to look for vessels in the resale market, driving up prices. For comparison, the Baltic Exchange assessed a newbuild LR2 product carrier at $68m in September 2025, which is still higher than the $61.2m price achieved by Scorpio for its five-year-old ships. These figures align with Fearnleys’ assessment that a five-year-old LR2 is worth around $62.5m.
Strengthening Balance Sheet and Debt Reduction
Scorpio Tankers’ CEO Emanuele Lauro emphasized that the sale of the vessels is part of the company’s broader deleveraging strategy. With recent asset sales, including the STI Maestro and the reduction of its stake in DHT Holdings, the company has managed to cut its net debt significantly from $479m in June 2025 to $131m on a pro-forma basis by September 2025. The upcoming exercise of purchase options for additional vessels further indicates Scorpio’s ongoing restructuring and focus on financial stability.
The sale of STI Lobelia and STI Lavender underlines Scorpio Tankers’ dual strategy of capitalizing on strong secondhand market valuations and pursuing aggressive debt reduction. With newbuilding prices still higher than resale values, the secondary market remains an attractive option for buyers. For Scorpio, this move not only improves its financial flexibility but also positions the company strongly for future market shifts.
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Source: Lloyd’s List
