Scorpio Tankers Inc. (NYSE: STNG) recently announced that it has signed letters of intent to build two Very Large Crude Carriers (VLCCs) at Hanwha Ocean in South Korea. This marks a significant change for the company, showing its confidence in the crude tanker market.

The investment of $256 million—$128 million per ship—represents Scorpio's entry into the VLCC sector, moving away from its usual focus on product tankers. The ships are expected to be delivered in the second half of 2028.

This decision comes as the company is also reducing its stake in DHT Holdings Inc., a well-known crude tanker operator.

Since late October, Scorpio Tankers has sold nearly 2.4 million shares of DHT at an average price of $13.25 per share, lowering its ownership to just over 1.1 million shares. This follows previous sales of more than 5.2 million shares during the third quarter and October, with prices between $12.50 and $12.71 per share.

“We have a strong, long-term outlook on the crude tanker market, and our investment in DHT reflects that perspective,” said Emanuele Lauro, Chairman and CEO. “These newbuilding agreements for VLCCs, with most capital spending pushed to late 2027 and beyond, are a logical extension of our beliefs, allowing the company to directly benefit from a positive crude tanker market.”

The timing of these orders is important. With deliveries set for 2028, Scorpio Tankers aims to take advantage of what management sees as positive long-term trends in the crude market, while keeping short-term capital commitments low.

Currently, the company operates or leases 99 product tankers, including 38 LR2 tankers, 47 MR tankers, and 14 Handymax tankers, with an average fleet age of 9.6 years. It has also made agreements to sell six product tankers and plans to take delivery of four new MR tankers in 2026 and 2027.

Shifting from investing in DHT to directly owning crude tankers is a strategic move, as Lauro believes it will yield better returns in a market that is expected to remain strong for years.