in case there are any doubt, TNK has more than enough liquidity to purchase the 4 LR2s for 188mn at the end of '15. Most of the purchase price comes at delivery, so lets assume they pay 25 a year until deliv. They have a VLCC mortgage coming due that will bring in 118mn plus they have the 9mn from the Afra sale recently made. Combine that with likely 3 more afra sales (2 in '14) and retained earnings (with the fixed div), they will have plenty of room on their credit line (even with reduction). At the end of '15 I compute they will have 300mn out on the then 500 line so 60%- pretty much where it is now. They will be adding in 4 new ships so, in all likelihood, credit line will increase a bit and TCEs will improve. They have options to purchase another 12 for similar price over the next 18 months so if market conditions show the signs of improvement, they will likely fund those with more debt (according to statement). needless to say, Im pretty bulled up
i like scorpio (stng) as well. fro2012 and tnk are gonna go products stng is already there and has inside track for at least next year or two and is pure play. tnk is good all around fleet, fro2012 i feel by time ipo comes money will already be made. have a listen to scorpios conferance call if interested they are very detailed.