Scorpio Tankers has unveiled its first newbuilding order as a public company, understood to be at Hyundai Mipo Dockyard in South Korea, for five medium-range product tankers at a total price of $185m.
If three options attached to the order are confirmed, the total price tag would be $300m.
The Emanuele Lauro-led product and coated tanker specialist simultaneously launched its second follow-on share issue in New York in six months, with estimated proceeds pegged at $60m-$65m.
The company admitted its existing cash firepower and bank loans are insufficient to cover the whole purchase price of its Hyundai Mipo deal — even if the follow-on issue is successful — and the whole deal remains contingent on full financing.
Scorpio said the Hyundai Mipo price tag of $36.5m-$37.5m per 52,000 dwt ship “is 30% below what the same yard would have charged at historically high prices in 2008”.
The five Scorpio newbuildings are scheduled to be delivered in the second half of 2012. They bring the number of owned ships Scorpio has added to its fleet since its flotation to 14. All nine previous acquisitions were secondhands.
The three options would carry the same price tag. If ordered, they are to be delivered in mid-2013.