Scorpio adds a pair

Scorpio Tankers has returned to Hyundai Mipo Dockyard to order another two 50,000-dwt MR tankers

The South Korean shipbuilder is due to deliver the two ships, which are costing $32.5m each, in May and June 2014, Scorpio said in a statement.

These vessels are a continuation of Scorpio’s existing newbuilding program for “fuel-efficient vessels.”

As part of the deal Scorpio has received fixed price options with the yard to build up to four 37,000-dwt handysize fuel-efficient product tankers to be delivered within 2014.

“Our markets have witnessed significant tightening since the middle of November, beyond what seasonal expectations alone would typically augur,” said Scorpio chief executive Emanuele Lauro.

“As we look back at 2012, the fundamental changes in trade volumes and flows that we predicted were slow to materialize, but the manifestation of these fourth quarter improvements are becoming evident so far in the current quarter.”

“Between the increases in exports of refined products from the US, demand from developing markets, and trading activity across volatile commodity markets, we are confident in our newbuilding program and our charter-in strategy."

Scorpio currently owns one LR2 tanker, four LR1 tankers, one handymax tanker, five MR tankers and a post-panamax tanker.

The company has also time chartered-in twenty vessels and has another thirteen MR newbuildings on order for delivery by September 2014.

It also has fixed-price options to construct a total of 12 additional newbuilding product tankers at yards in South Korea.