Scorpio Tankers Buys LR2 Product Tanker

Shipowner Scorpio Tankers announced this week that it has exercised a purchase option for an LR2 product tanker that is currently leased.

The 2016-built, 109,999 dwt STI Sanctity was acquired as part of the acquisition of Navig8 Product Tankers in 2017. The lease bears interest at LIBOR plus a margin of 5.4% per annum.

The purchase, which is expected to occur in the first quarter of 2023, is expected to result in a debt reduction of $27.8 million for the company, Scorpio said.

Scorpio Tankers currently owns, lease finances or bareboat charters-in 113 product tankers, including 39 LR2 tankers, 60 MR tankers and 14 Handymax tankers, with an average age of 6.7 years.