Scorpio Tankers (NYSE:STNG), a provider of sea transportation services priced its IPO yesterday at $13.
Business Overview (from prospectus)
We are Scorpio Tankers Inc., a company incorporated in the Republic of The Marshall Islands. We provide seaborne transportation of crude oil and other petroleum products worldwide. We believe that recent downward pressure on tanker values will present attractive opportunities for ship operators that have the necessary capital resources. We believe that Scorpio Group has established a reputation in the shipping industry as a leading independent provider of seaborne petroleum transportation services to major oil companies, national oil companies and oil traders in the Aframax, Panamax and Handymax tanker markets. Scorpio Group, headquartered in Monaco, was formed in 1971 and currently provides full technical management services through SSM to its own fleet as well as third party vessels and provides commercial management services through SCM to its own fleet as well as third party vessels.
Scorpio Group is wholly-owned and controlled by the Lolli-Ghetti family, which has been involved in the shipping business since the early 1950s through NAI. Emanuele A. Lauro has served in a senior management position at Scorpio Group since 2004.
Offering: 12.5 million shares at $13 per share (expected range was $14 - $16). Net proceeds of approximately $38.9 million will be used for debt retirement and $134.0 million for vessel acquisition and working capital purpose.
Lead Underwriters: Morgan Stanley (NYSE:MS), Dahlman Rose & Co.,
Revenue was $21.8 million for the nine months ended September 30, 2009 as compared to the revenue of $28.9 million for the nine months ended September 30, 2008...Vessel operating costs for the owned vessels of $6.4 million for the nine months ended September 30, 2009 as compared to $6.5 million for the nine months ended September 30, 2008...Charterhire expense of $3.2 million for the nine months ended September 30, 2009 as compared to $4.1 million for the nine months ended September 30, 2008...Net Income for the nine months ended September 30, 2009 was $1.7 million as compared to $11.1 million for the nine months ended September 30, 2008...
We operate in markets that are highly competitive and based primarily on supply and demand. We compete for charters on the basis of price, vessel location, size, age and condition of the vessel, as well as on our reputation and that of our commercial manager. We compete primarily with other independent tanker vessel-owners and with major oil companies that own and operate their own vessels. Our competitors may have more resources than us and may operate vessels that are newer, and therefore more attractive to charterers, than our vessels. Ownership of tanker vessels is highly fragmented and is divided among publicly listed companies, state-controlled owners and private shipowners.