Monaco-based tanker owner Scorpio Tankers has reported a widened net loss for the fourth quarter of 2017, reaching USD 41.5 million, when compared to the same quarter from 2016 when its net loss was USD 29.7 million.
For the full year, the company’s net loss stood at USD 158.2 million, considerably higher when compared to the USD 24.9 million loss booked for the previous year.
“During the fourth quarter of 2017, we incurred some additional costs and reductions in revenue from the integration of the NPTI fleet. We believe that these steps were important in order to better capitalize on the improving product tanker market fundamentals. This improvement is being reflected in higher asset values and higher spot and forward time charter rates,” Emanuele Lauro, Chief Executive Officer and chairman of the board, said.
The integration of NPTI fleet incurred Scorpio USD 3.1 million of additional costs as a result of technical management transitions and resulted in delays as the cargo tanks were cleaned.
In addition, for a portion of the quarter, certain of these vessels operated outside of the Scorpio pools in the spot market at below market rates before regaining their vettings, the company said.
The tanker owner added that it has raised USD 99.5 million in an underwritten public offering of 34.5 million shares of common stock, including 4.5 million of additional shares, at an offering price of USD 3.00 per share. The offering closed in December 2017.
In addition, the company said that it has closed on the previously announced finance lease arrangements for STI Onyx and STI Amber in October and November 2017, respectively, which raised USD 15.2 million in additional liquidity after the repayment of debt.
During the quarter, Scorpio took delivery of three MR product tankers that were under construction at Hyundai Mipo Dockyard: STI Donald C Trauscht, STI Esles II and STI Jardins.
Since the beginning of this year, the company has entered into two time-charter agreements.
In January, the company inked a one-year charter for a 2012-built MR product tanker at USD 14,000 per day. Scorpio has an option to extend the charter for an additional year at USD 14,400 per day.
In February, the shipowner inked a six-month charter on a 2013-built, LR2 product tanker at USD 14,300 per day, with an option to extend the charter for an additional six months at USD 15,310 per day.
Both vessels are expected to be delivered before the end of March 2018.