Hafnia buys 12 Scorpio tankers, closes CTI takeover

Singapore-based tanker owner and operator Hafnia has entered into a framework agreement for the purchase of 12 vessels from Monaco-based counterpart Scorpio Tankers.

The LR1 vessels in question are STI Excel, STI Excelsior, STI Expedite, STI Exceed, STI Experience, STI Executive, STI Excellence, STI Express, STI Pride, STI Providence, STI Precision and STI Prestige.

The vessels were built in 2015 and 2016 in South Korea and will all be scrubber-fitted at delivery. They are expected to be delivered to Hafnia from the second half of February to mid-May 2022.

As informed, Hafnia will buy the tankers for a total consideration of $413.8 million.

The company also revealed it is in advanced discussions with ICBC Financial Leasing Co., Ltd. (ICBCL) on competitive terms to finance the transaction through a sale and leaseback structure with monthly purchase options and an obligation for Hafnia to purchase the vessels at the end of the 10 year charter period.

Hafnia closes acquisition of 32 CTI ships

In November 2021, Hafnia unveiled the decision to acquire 32 fuel-efficient IMO II product/chemical tankers by buying all outstanding shares in Chemical Tankers Inc (CTI) (formerly Navig8 Chemical Tankers).

On 27 January 2022, the company completed the transaction.

In exchange for all outstanding shares in CTI, CTI’s shareholders have received a total of 99,199,394 shares in Hafnia, representing 21.5% of the outstanding shares in the combined entity.

The newly acquired chemical fleet will enter a global trade alongside the company’s product tanker fleet.

The trading of the chemical fleet will be overseen from Hafnia’s newly established Dubai office.

“With the acquisition of Chemical Tankers Inc and Scorpio’s LR1 fleet …, we have today added 44 vessels to our fleet, which now stands at 152 vessels. The 44 vessels are all compliant with the EEXI requirements entering into force in 2023,” Mikael Skov, Hafnia’s CEO, said.

“The total commercially managed fleet is now 242 vessels.”

“Both fleets have been acquired at favourable prices compared to age, earnings potential and trading flexibility. The acquisition of the 12 LR1 vessels from Scorpio is part of our continued fleet renewal in our core LR1 segment, where we now have 73 LR1 vessels under commercial management,” Skov added.

“The acquisitions modernise our fleet, reducing our owned fleet’s average age by one year. The company AER (Annual Emission Ratio) will improve significantly from the IMO trajectory line and bring Hafnia considerably closer to compliance with the IMO Carbon Intensity Targets 2030.”