Scorpio Bulkers Narrows Loss in Nine-Month Period

Image Courtesy: Scorpio Bulkers

NYSE-listed dry bulk owner and operator Scorpio Bulkers has managed to narrow its net loss for the first nine months of 2016 to USD 104.2 million, compared with a net loss of USD 208.7 million seen in the corresponding period a year earlier.

This excludes a loss/write off of vessels and assets held for sale of USD 12.4 million, the write off of deferred financing costs on credit facilities that will no longer be used of USD 2.5 million and a charter-hire contract termination fee of USD 10 million.

The company’s operating loss for the nine-month period stood at USD 86.6 million, against an operating loss of USD 200.4 million seen in the same period in 2015.

During the third quarter of the year, Scorpio Bulkers reached agreements with shipyards to reduce the price to be paid under the shipbuilding contracts of four Kamsarmax vessels and two Ultramax vessels that were to be delivered between the third quarter and the fourth quarter of 2016 by an aggregate of USD 13 million.

The company also reached agreements to delay the delivery of the same six vessels by one to three months each. These vessels, previously expected to be delivered between September 2016 and November 2016 will now be, or were, delivered between October 2016 and January 2017.

Pursuant to these delays, USD 59.1 million that was previously expected to be paid to shipyards during the fourth quarter of 2016 is now expected to be paid in the first three months of 2017.

Additionally, Scorpio Bulkers expanded its fleet with three Ultramaxes, namely, SBI Tethys, SBI Phoebe, and SBI Poseidon, during the third quarter of 2016.

Between October 1 and October 28, 2016, two more newbuildings, SBI Apollo and SBI Zumba, joined the company’s fleet.

Scorpio Bulkers has seven dry bulk vessels newbuildings under construction with an aggregate construction price of USD 192.4 million.

Of this amount, USD 101.4 million remains unpaid as of October 28, 2016 and is scheduled to be paid in installments through the delivery dates of each vessel, the company said.

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