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Scorpio Tankers celebrates strong Q2 with four more newbuild orders

Scorpio Tankers celebrates strong Q2 with four more newbuild orders
Scorpio Tankers has reported a $57.5m profit for the second quarter, and four new product tanker orders at Hyundai Mipo Dockyard (HMD).

The company's profit compares to an $11.2m loss in the same period last year, and brings its 2015 first half profit to $98.2m.

Average Time Charter Equivalent (TCE) earnings in the second quarter were $23,469 per day, up from $12,733 per day in the same period of 2014.

Scorpio Tankers' latest newbuilds, two MRs and two handymaxes, are due for delivery in the first half of 2017 at a total price of $67m: $34.5m for the MRs and $32.5m for the handymaxes. The contracts come with fixed price, fixed delivery date options for a further 12 ships, six of both sizes.

Eleven newbuild vessels were delivered to the company during the second quarter and July. The period also saw the signing of contracts to purchase a total of seven vessels under construction at SPP Shipbuilding, Sungdong Shipbuilding and Marine Engineering (SSME), HMD and Daehan Shipbuilding, as well as a 2014-built secondhand tanker.

Outside of the period in July, Scorpio Tankers' investment in Dorian was sold in two transactions to two parties. BW Group subsidiary BW Euroholdings bought 6m shares at $15.34 per share, and 3.3m shares were sold to Sino Energy Holdings at $16.16 per share. The latter deal is expect to close in late July.

The company's orderbook currently totals 12 vessels, with payments of $596m to be made through to the end of 2017.