Investment in Dorian
Scorpio Tankers Inc. (STNG) has exercised its right under a shareholders’ agreement with Dorian LPG Ltd. (LPG) dated November 26, 2013. According to the agreement, Dorian will be registering for resale, under the Securities Act of 1933 as amended, all the Dorian shares that Scorpio Tankers (STNG) owns. Scorpio Tankers currently owns approximately 9.4 million shares, or 16.3%, of Dorian.
Dividend payment and declaration is subject to the discretion of the Scorpio Tankers’ board of directors. The timing and amount of dividends are connected to the company’s earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends, and other factors.
On November 10, 2014, the Scorpio Tankers’ board of directors declared a quarterly cash dividend of $0.12 per share, reflecting an increase of 20% over the previous quarterly dividend, payable on December 12, 2014, to all shareholders as of November 25, 2014, the record date. As of November 10, 2014, there are 163.6 million shares outstanding. Scorpio Tankers’ dividend yield stands at 5.82 based on the November 28, 2014, closing price.
Divided for other industry peers such as Navios Maritime Acquisition Corporation (NNA), Capital Product Partners L.P.(CPLP), Teekay Corporation (TK), and Tsakos Energy Navigation Ltd. (TNP) recorded 6.85%, 11.5%, 2.54%, and 2.77%, respectively. The Guggenheim Shipping exchange-traded fund (or ETF) (SEA) posted a dividend yield of 3.05%.