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Scorpio Tankers triples profit in 2014

Scorpio Tankers triples profit in 2014
Scorpio Tankers made a profit of $52m in 2014, more than three times its 2013 result as its bottom line was boosted by VLCC newbuild contract sales.

Revenues for the year 2014 totalled $342.8m, up from $207.5m in 2013 as the company's fleet expanded from an average of 17 vessels in Q4 2013 to an average of 50.8 in Q4 2014.

Adjusted for one-off items, including a $51.4m gain on the sale of VLCC construction contracts in March, Scorpio recorded a $7.7m profit for the year.

Of the company's four vessel sizes only MRs experienced a drop in TCE rates between 2013 and 2014, from $16,546 per day to $15,297 while LR2s were up to $18,621 per day from $12,718 per day, LR1s were up to $16,857 per day from $12,599 per day and handymaxes earned $14,528 per day, up from $12,862.

To date 65% of Scorpio Tankers' available days for the first quarter have been fixed at an average of $26,000 per day for LR2s $22,000 per day for LR1s $18,000 per day for MRs and $19,500 per day for handymaxes.

Scorpio Tankers' orderbook expanded at the end of last year with the purchase of four LR2 product tanker contracts and two options from Scorpio Bulkers. The company's fleet continues its rapid expansion, with eight vessels delivered in January and February 2014, and 15 vessels on order.