Scorpio Tankers is planning to upgrade its product tanker fleet. The company has announced that it will sell four LR2 tankers, while also preparing to buy two new MR tankers and pay off all its secured debt due in 2028....
Scorpio Tankers is planning to upgrade its product tanker fleet. The company has announced that it will sell four LR2 tankers, while also preparing to buy two new MR tankers and pay off all its secured debt due in 2028.
Based in Monaco, Scorpio Tankers stated on Wednesday that it has made deals to sell four LR2 tankers for a total of $285.8 million. The ships being sold include the 2014-built STI Broadway and STI Condotti, as well as the 2015-built STI Winnie and STI Lauren. The sales are expected to close in the second or third quarter of 2026.
In addition, Scorpio has signed a letter of intent to buy two new MR tankers with scrubbers for $46.25 million each. These vessels will be constructed at Jiangsu Yangzi-Mitsui Shipbuilding in China, with an expected delivery in the first quarter of 2030. The company mentioned that only a 10% deposit is required initially, and the rest of the payments can be made in 2028 or later.
The letter of intent is still pending final documentation.
Scorpio also plans to make $367.8 million in unexpected debt prepayments, including a previously stated $10.7 million prepayment. This will involve several secured credit facilities that will mature in 2028. Furthermore, the company intends to permanently cancel any unused revolving credit under two facilities, which is expected to terminate those credit lines by the second quarter of 2026.
These transactions indicate a significant reset for both the fleet and financial position of one of the largest product tanker owners in the world. Currently, Scorpio owns 83 product tankers, which include 32 LR2s, 37 MRs, and 14 Handymax tankers, with an average age of 10.2 years.
With previously announced deals, the company has now agreed to sell two MR product tankers and seven LR2 product tankers, with expected closings in the second or third quarter of 2026.
Scorpio has also initiated a large newbuilding program, which includes six MR newbuildings, four LR2 newbuildings, and two VLCC newbuildings, with deliveries slated between 2026 and 2030.