Scorpio buys four more product tankers, secures charters

Around 30% of the vessels' value will be paid for in newly issued common shares, which will bebe bought by Ceres, Valero and other investors, with the remaining 70% being met by cash on hand and bank debt.

Charter agreement for the quartet have also been signed with Valero, including a profit share scheme where earnings over an agreed level will be split between Scorpio and Valero. The first vessel to be delivered will be chartered for two years, with the subsequent three receiving one-year charters.

The deal remains subject to final documentation.

Scorpio now owns 18 tankers, time charters-in 29 product tankers, and has an overbook of 64 vessels, one due to be delivered by by October 2013, 44 due in 2014 and the remaining 19 due by the end of 2015.