Scorpio Tankers Inc. has finalized the sale of its 2015‑built, scrubber‑fitted LR2 product tanker, the STI Kingsway, to a buyer for $57.5 million. The transaction, which closed in the first or second quarter of 2026, is the first of four planned divestitures of older LR2 vessels that the company has identified as approaching the end of their 10‑year special survey and dry‑dock cycles.
The sale is a key element of Scorpio Tankers’ fleet‑modernization strategy, which aims to replace aging assets with newer, more efficient, and environmentally compliant vessels. By divesting the STI Kingsway, the company reduces maintenance costs associated with older hulls and frees capital that can be deployed toward newbuilds, including two LR2, four MR, and two VLCC vessels scheduled for delivery between 2026 and 2028.
Scorpio Tankers’ liquidity position has strengthened as a result of the transaction. As of January 9, 2026, the company reported a pro‑forma net cash balance of $382.7 million, with $793.2 million in cash and $628.4 million in debt. The $57.5 million inflow brings the total cash balance closer to the company’s target range and enhances its ability to service debt and fund future capital expenditures.
The company’s fleet consists of 93 product tankers with an average age of 9.8 years, including 37 LR2, 42 MR, and 14 Handymax vessels. The newbuild program, which includes MR, VLCC, and LR2 vessels, is designed to improve operational efficiency and comply with the International Maritime Organization’s sulfur cap and other environmental regulations. The sale of the STI Kingsway, along with the planned divestitures of the STI Goal and STI Gallantry, aligns with this strategy by removing vessels that are less efficient and more costly to operate.
Management has emphasized that the fleet‑renewal program is a core component of its long‑term strategy to reduce operating costs, improve margins, and maintain a competitive edge in a market that increasingly rewards newer, cleaner vessels. The sale demonstrates the company’s commitment to executing on this plan while preserving liquidity for future growth opportunities.
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