VLGC sale buoys Scorpio

New York-listed Scorpio Tankers has posted a profit in the fourth quarter thanks to the sale of its 11 VLGC newbuilding contracts to Dorian.
Emanuele Lauro

Emanuele Lauro

The company said net earnings to 31 December were $5.77m, against a loss of $4.88m in the same period of 2012.

Revenue grew to $53.26m from $30.1m, while the Dorian deal gave it a gain of $41.37m.

CEO Emanuele Lauro said: "Although our fourth quarter 2013 results reflect the deleterious effects of prolonged turnarounds of existing refineries and delays of commissioning the new refining assets, we remain confident in the underlying demand and supply thesis.”

He pointed to higher returns from its ships so far in the first quarter of 2014.

He added: “We expect to be profitable this quarter.

"As for the remainder of 2014, both new emissions regulations and customer preferences will leave us very well-positioned.”

Ben Nolan of Stifel says the adjusted loss of $0.08 per share for the quarter was deeper than the $0.02 expected on Wall Street.

“Scorpio management did announce an increase in the quarterly dividend to $0.08, from a previous $0.07, marking another quarter that the company has increased its distributions,” he added.

The company has 63 newbuildings on order, with $2.18bn in payments still to come.

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