Increased demand for tankers for offshore storage of oil products is driving up freight rates, provoking sky- rocketing profits for a number of companies active in the sector.
This is the case for Scorpio Tankers. In the first quarter of the year, the Monte Carlo-based shipping company listed on the New York Stock Exchange practically tripled its profits from $14.48 million in Q1 2019 to the current $46.63 million.
For the tanker owner, this is the best quarterly result ever since 2015. The company points out that part of the earnings can be attributed to the chartering of several LR2 (Long Range 2) vessels for the storage of crude oil.
Scorpio also reported that in the second quarter of the year the average freight rate for its LR2 ships was set at $53,000 per day, but last Wednesday the shipping company’s LR pools had managed to charter out an LR2 at $178,000 per day.
Translation by Giles Foster