Scorpio Tankers has secured loans to partially finance the purchase and installation of scrubbers on certain of its vessels. This comes after the company announced that they will have retrofitted 62 of its vessels with scrubbers by the end of 2019. These loans are expected to increase the company’s liquidity by approximately $87 million.
Additionally, the Company is in discussions with a different group of financial institutions to finance the purchase of scrubbers which, if consummated, expect to increase the Company’s liquidity by an additional $35 million,
…Scorpio Tankers said presenting its financial results for the fourth quarter of 2019.
All of these agreements are expected to be signed in the next few months and the drawdowns will occur as the scrubbers are installed throughout the remainder of 2019 and 2020.
In the second quarter, the company retrofitted scrubbers to three LR2 tankers for aggregate costs of $8.6 million, three MR tankers for aggregate costs of $9.5 million, and one ice-class 1A Handymax tanker for aggregate costs of $2.7 million.
Another one LR2 tanker entered drydock for its scrubber installation during the second quarter of 2019, and the installation is expected to be completed during the third quarter of 2019.
Meanwhile, three MR tankers entered drydock for their class required special surveys, BWTS, and scrubber installations, all of which are expected to be completed during the third quarter of 2019. The aggregate costs are expected to be approximately $13.0 million.
Finally, two ice-class 1A Handymax tankers entered drydock for their class required special surveys and BWTS installations during the second quarter, which were completed during the third quarter of 2019. The aggregate cost is expected to be $4.0 million.
Earlier in July, Scorpio Group announced it added a further 23 scrubber units for $33.3m from Pacific Green Technologies, including 14 systems for Scorpio Tankers and 9 systems for Scorpio Bulkers, on top of 52 systems and 28 systems already ordered by the two Scorpio subsidiaries respectively.
