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Scorpio closes out ordering spree with 16 newbuilds

Scorpio closes out ordering spree with 16 newbuilds
Scorpio Tankers' ordering spree has come to an end with a final flurry of 16 newbuilding orders at Korean yards.

The eight LR2, four MR and four ice class handymax product tanker orders bring Scorpio's orderbook to 54 units including 26 MR, 16 LR2 and 12 Ice class handymaxes.

The company also announced that syndication of its $267m credit facility was heavily oversubscribed, leading to $525m of commitments to the facility.

Emanuele Lauro, ceo and chairman of the board at Scorpio, said, "these 16 orders for fuel efficient vessels, and, as significantly, the over-subscription of our 2013 credit facility, have solidified our unique position in front of an improving cycle in product tankers. We are pleased that our shareholders and lenders alike are showing their support of our strategy."

Of the eight 114,000 dwt, $52m LR2s, four will be built at Samsung Heavy Industries (SHI) two at Hyundai Samho Heavy Industries (HSHI) and two at Daewoo Shipbuilding and Marine Engineering (DSME). All of the ships are scheduled for delivery in the first half of 2015.

SPP shipbuilding (SPP) are also due to deliver four 52,000 dwt MR tankers in the first half of 2015 at $32.5m each.

The four ice class handymaxes will be built by Hyundai Mipo Dockyard (HMD) for $31.6m each and are expected to be delivered in the third quarter of 2014.

The final round of orders leaves Scorpio with four ships expected before September 2013, 38 to be delivered in 2014 and 12 in the first half of 2015.

"We have no plans for further newbuilding contracts," closed Lauro.