New York-listed Scorpio Bulkers managed to slightly narrow its net loss to USD 3.5 million in the first quarter of 2019.
The dry bulk shipping company said the performance was influenced by a USD 15 million non-cash gain and cash dividend income of USD 0.5 million from its equity investment in sister company Scorpio Tankers, and a write-down of assets held for sale of USD 7.5 million related to the disposal of the SBI Electra and SBI Flamenco.
For the same period in 2018, the Scorpio Bulkers’ net loss was USD 5.8 million.
Total vessel revenues were USD 50.4 million, compared to USD 54.3 million reported in the first quarter a year earlier.
Scorpio Bulkers’ Kamsarmax fleet earned USD 11,176 per day and the Ultramax fleet earned USD 9,177 per day during the three-month period ended March 31, 2019.
In addition to the sale of two Kamsarmaxes, in March 2019 the company agreed to sell and leaseback three Ultramax vessels, namely the SBI Pegasus, SBI Subaru and SBI Ursa, as well as four Kamsarmax vessels, the SBI Lambada, SBI Macarena, SBI Carioca and SBI Capoeira, from CMB Financial Leasing.
Upon completion of the transactions, set to take place in the second quarter of 2019, the company’s liquidity is to increase by up to USD 57.2 million in aggregate, comprising of up to USD 45.4 million upon closing after the repayment of outstanding debt and an additional tranche of up to USD 11.8 million for installation of scrubbers on the seven vessels.
“This quarter, there have been some particularly unhelpful headwinds,” Emanuele Lauro, Co-Founder, Chairman & CEO Scorpio Bulkers, said.
“Against this backdrop, we continue to generate positive operating cash flow and have further enhanced our balance sheet flexibility. As the past few months have demonstrated, we should expect the unexpected. That said, the forward market and the recent acceleration in U.S. and Chinese GDP indicate that the worst may now be behind us.”