Scorpio Tankers to sell five older product tankers

Scorpio Tankers Inc. has announced the sale of five of its older MR product tankers for a total of $179.1 million. These sales are expected to be completed in the third quarter of 2024, leaving the company with a fleet consisting only of vessels built in 2014 or later. The company has entered into agreements with three different buyers to sell four vessels built in 2012, achieving a combined price of $142.5 million. Additionally, Scorpio Tankers will sell its 2013-built vessel, STI Beryl, for $36.6 million.

CEO Emanuele A. Lauro stated in the first-quarter earnings report that the company aims to increase cash flow by reducing debt and lowering the cash break-even rate. This strategy will allow Scorpio Tankers to act opportunistically to increase shareholder returns. These sales of older vessels will not result in any debt repayment for the company since the vessels are unencumbered.

This move by Scorpio Tankers is part of a strategic effort to improve financial performance and increase shareholder returns. By focusing on newer vessels and reducing debt, the company is positioning itself to take advantage of opportunities in the market. With a fleet consisting only of newer vessels, Scorpio Tankers aims to enhance its cash flow and create value for its shareholders.

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