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Scorpio Tankers declines four-MR2 option despite bumper earnings

Scorpio Tankers declines four-MR2 option despite bumper earnings
In spite of soaring Q3 profits, Scorpio Tankers has chosen not to exercise options on four MR product tankers, and has received a commitment for a new loan facility.

The news leaves Scorpio Tankers, which enjoyed $88.1m profits in the last quarter, with four LR2s due for delivery in 2016 and eight MR product tanker newbuildings due to be delivered throughout 2017.

However, Scorpio Tankers this month exercised an option to extend the charter of an LR2 that is currently time chartered-in for one year at $22,600 effective February 2016. The company currently time charters-in two LR2s, two LR1s, four MRs, and three Handymax tankers, as well as having one LR2 on bareboat charter, which the company is scheduled to purchase in April 2016.

The Company has received a commitment from an undisclosed financial institution for a loan facility of up to $36.0m, which will be used to refinance existing debt on one 2015-built LR2.