Scorpio Tankers signs agreement with SPP for construction of MR product tankers

Scorpio Tankers Inc., a provider of marine transportation of petroleum products, has signed a contract with SPP Shipbuilding Co., Ltd. of South Korea, or SPP, for the construction of four MR product tankers for approximately $32.5 million each, two of which are the exercise of options from a previous contract.

These vessels will be delivered in the third and fourth quarters of 2014 and are a continuation of the Company's existing newbuilding program for fuel-efficient vessels.

In conjunction with these contracts, the Company received extensions on several previously agreed options and received four new fixed price options for similar vessels which would be delivered in 2015.

The Company currently has a total of 16 MR product tanker newbuilding orders with Hyundai Mipo Dockyard Co. Lt. of South Korea and SPP. Two are expected to be delivered to the Company by April 2013 and the remaining 14 within 2014. The Company also has fixed-price options to construct a total of 14 additional newbuilding product tankers at these yards.