Scorpio, the global maritime tanker company, stated in their recent first quarter turnover report that they have yet to realise their full earning potential. In an attempt to reach the apex of their abilities, they have announced their new designs for some so-called “eco-ships”, claiming that they will be massive earners for the firm.
Despite the fact that they are seemingly not earning as much as they could and should be, Scorpio declared their first quarter to be a profitable one, netting a cool $6.6 million for their efforts.
Scorpio – Looking to the Future
Cameron Mackey, the current Chief Operating Officer (COO) of the company, has said that the reason for Scorpio’s earning potential having not yet “shown its true colours” is that a sizeable proportion of its overall equity is locked up in the shipyards. However, this is no reason for concern, he implored; the company is still turning a respectable profit.
This profit margin is seen as a good sign for the company, especially now that they have the even more profitable eco-ships in the pipeline. These new ships will be “younger, fitter, [and] with lower break even points”, stated Mackey.
Scorpio has already received orders for 38 of its newest models, and their deliveries are due to take place throughout the summer months. Though eco-ships have been criticised lately for being better on paper than they are in practice, Mackey declared that Scorpio’s latest vessels have very real, tangible benefits.
The New Fleet
Mackey also said that the firm already operates a smaller fleet of eco-ships; five of the medium range vessels, which were built last year, have beaten eleven of Scorpio’s other ships in earnings by nearly $4000 per day of service, purely through savings in fuel consumption.
The COO went on to assure that more than one third party have verified the fuel consumption data, and independent surveying has done so as well. The surveying went so far as to analyse the weather conditions and the quality of fuel, to make sure the findings were accurate.
The Future of the Shipping Industry
Most analysts predict that heavy fuel oil (HFO) will become harder to come by in the coming years; it is already an unappealing product, given that it is rather expensive and puts out a lot of pollutants, but its impending scarcity will affect all aspects of maritime industry, from navies to marine rope suppliers.
HFO is set to be phased out anyway: as sulphur emissions restrictions continue to be tightened, we should see less and less use of the polluting product.
Though this would spell good things for the industry as a whole, and also for the environment, it could be argued that Scorpio will be the real winners here – because their eco-ship production is already well underway, it is safe to assume that they have a reasonable head start over any competitors.
They can expect orders for their environmentally responsible vessels to keep increasing – as prices for HFO continue to rise, shipping companies are going to increase their efforts in searching for a cheaper method.