Stock Markets April 20, 2026 04:14 PM

Scorpio Tankers Agrees to Sell Six 2014-Built Product Tankers for $300 Million

Transaction splits into $195 million for three LR2s and $105 million for three MRs, with closings slated for Q2 2026 and partial debt retirements already recorded

By Derek Hwang STNG
Scorpio Tankers Agrees to Sell Six 2014-Built Product Tankers for $300 Million
STNG

Scorpio Tankers Inc. has reached agreements to divest six vessels built in 2014 for a combined $300 million. The package includes three LR2 product tankers sold together for $195 million and three MR product tankers sold for $105 million. The transactions are expected to close within the second quarter of 2026. Several of the ships carried outstanding balances on the company’s 2023 $225.0 million revolving credit facility prior to repayment activity in April 2026.

Key Points

  • Scorpio Tankers agreed to sell six 2014-built product tankers for a total of $300 million, split between three LR2s ($195 million) and three MRs ($105 million) - impacts the shipping and maritime sectors and corporate fleet composition.
  • The sales are expected to close within the second quarter of 2026 - impacts transaction timing and near-term balance sheet planning for the company.
  • Debt positions varied by vessel: STI Park and STI Sloane had no outstanding debt, STI Madison carried $10.7 million, and the three MRs had $21.3 million outstanding on the 2023 $225.0 million Revolving Credit Facility prior to repayment - impacts credit and financing considerations.

Scorpio Tankers Inc. (NYSE:STNG) has entered into separate sale agreements covering six product tankers built in 2014, with the aggregate sale price set at $300 million. The disposal is divided by vessel class: three LR2 product tankers will change hands for a combined $195 million and three MR product tankers will be sold for a combined $105 million.

The three LR2s included in the transaction are named STI Park, STI Sloane and STI Madison. Together they account for the $195 million portion of the deal. Scorpio Tankers reported that STI Park and STI Sloane carry no outstanding debt.

The MR tranche comprises STI Aqua, STI Regina and STI Opera, which together form the $105 million component of the sale. Prior to repayment activity, STI Aqua, STI Regina and STI Opera had an aggregate outstanding balance of $21.3 million on the company’s 2023 $225.0 million Revolving Credit Facility. In addition, STI Madison had $10.7 million of debt outstanding on that same facility.

The company indicated the sales are expected to be completed within the second quarter of 2026. Scorpio Tankers also disclosed that the outstanding debt associated with STI Aqua, STI Regina and STI Opera was repaid in April 2026.

Financially, the transactions are structured so that proceeds from the LR2 group total $195 million and proceeds from the MR group total $105 million, combining to the announced $300 million aggregate consideration. The statement clarified which vessels carried debt prior to the repayment noted in April 2026 and which vessels were free of outstanding borrowings at the time of the announcement.

This set of sales reduces the company’s fleet by six 2014-built product tankers and alters the leverage profile associated with those specific ships, given the repayment and differing debt positions disclosed for individual vessels. The announced timetable places final closing within the second quarter of 2026.

Risks

  • Timing uncertainty - the closings are expected within Q2 2026, but the announcement does not guarantee the transactions will complete as planned, which could affect expected cash flows and fleet size; this affects the shipping and corporate finance sectors.
  • Outstanding debt exposure prior to repayment - several vessels carried balances on the 2023 revolving credit facility, introducing credit and funding risk until repayments were completed; this affects banking and credit markets tied to the company.
  • Concentration of proceeds - the majority of proceeds are tied to the three LR2 vessels ($195 million), which could influence liquidity availability if any portion of that tranche faces delays; this impacts corporate liquidity management and investor assessment.

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