Tanker company Scorpio has said it has still not realised its complete earning potential, and, in their first quarter turnover report, has put forward its new eco ship designs as its “ace in the hole”, claiming that they will be the biggest earners for the company.
This all comes on the back of a profitable quarter for the tanker producers, bringing in a profit of $6.6 million.
The Future of the Company
The Chief Operating Officer of Scorpio, Cameron Mackey, claimed that the company’s earning potential has not yet “shown its true colours”, as a large proportion of its total equity is still locked up in the shipyards, though the company is still turning a more than reasonable profit.
He said that this was an encouraging sign for Scorpio, especially with the new eco ships on the horizon – they will be both “younger” and “fitter”, and will be much easier to break even on.
38 of Scorpio’s new designs are already on order, with deliveries due to be fulfilled over the summer, and they have a number of different options for extra vessels. Though eco ships have come under fire lately for being unable to reach their promised benefits, Mackey has asserted that the advantages of these eco ships can be seen already, in real life rather than on paper.
The Current Ships of Scorpio
Mackey went on to say that the company already owns and operates a number of eco ships, and that five of them, built just last year, have already been earning more than the other ships – they beat eleven of Scorpio’s other medium range vessels by almost $4000 a day.
The Chief Operating Officer made sure to assert that all of the fuel consumption data were verified by more than one third party as well as independent surveying; this included the weather conditions the vessels were subjected to and the quality of the fuel used.
What Does the Future Hold for the Shipping Industry?
Scorpio, like a number of other marine suppliers, has predicted that the bunker market will undergo a fairly drastic transformation in the coming months and years, especially as heavy fuel oil (HFO) is set to become scarcer.
HFO is already being seen as a somewhat unattractive product by oil refiners, as any profit margins are relatively low, and as limits on sulphur emissions continue to get lower, we will only see the continuing decrease in HFO usage.
For Scorpio, this can only be seen as a good thing – as they are already well into the eco ship trade, they seem to have a fairly sizeable leg up on the competition. Their environmentally friendly ships will only become more and more popular as HFO rises in prices and falls in availability.
And with the “green deal initiative” in full swing, ecologically responsible options have become the popular choice, and not just for monetary reasons. The future of the marine industry would seem to lie in eco ships.