New York-listed Scorpio thisweek added a $267m loan to its existing credit lines and a cash pile deepenedby two equity issues.
EmanueleLauro, CEO of the company, says it now has a $300m expansion war chest and allof the financing fixed for 18 of its 20 firm orders.
Analysts at RS PlatouMarkets, Scorpio’s chief ally in its last two equity issues, say the $300m isenough to add 10 more handysize vessels or six to seven LR2s.
“Based on recentpurchase values, we believe STNG could expand its fleet by an additional nine or ten eco product tankers with this level of liquidity and that new orders are likelyimminent given [President Robert] Bugbee's statement that returns onnewbuilding eco vessels at this point in the product tanker cycle are currentlymore attractive than at any other point of his career,” said Jonathan Chappellof Evercore Partners.
Doug Mavrinac ofJefferies was a little more conservative in his estimates.
“We believe Scorpio islikely to remain active in the newbuilding market in the months ahead withoptions for an additional 14 newbuildings in hand,” he said.
“We believe the companycould acquire three to five additional newbuilds without the need to issue anyadditional equity which would increase the company's already significantoperating leverage.”
As TradeWinds reported whenbreaking news of the latest loan, Scorpio is expected to place its fourthnewbuilding order of a frantic 2013 during the next couple of weeks.
It is thought the deal willmark its debut in the longrange 2 (LR2) sector.
