MONACO — (Marketwired) — 04/30/14 — Scorpio Bulkers Inc. (NYSE: SALT) (OSLO-OTC: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months ended March 31, 2014. The Company had no operations from the period from March 20, 2013 (date of inception) to March 31, 2013.
Results for the three months ended March 31, 2014
For the three months ended March 31, 2014, the Company had a net loss of $10.7 million, or $0.08 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $5.1 million.
Emanuele Lauro, Chairman of the Board and Chief Executive Officer, commented, “Dry bulk rates softened through the first quarter, driven by customers reducing inventories, political disruptions among several exporting countries, and the traditional seasonal lull before accelerated grain exports from the southern hemisphere. Each of these factors are temporary, and our confidence in the longer-term fundamentals of dry bulk shipping remains intact: net supply growth of the world fleet will be muted for the next several years while demand for long haul shipments is improving given that the higher quality and cheaper commodities are far from the primary customers.
“Our time-chartered vessels are positioning themselves for the South American grain season, and our vessels under construction have increased in value. As a result, we feel well-positioned as we look ahead.”
Recent Significant Events
Underwriters Exercise Option to Purchase Additional Shares
In January 2014, the underwriters in the Company’s initial public offering, which closed on December 17, 2013, exercised in full their option to purchase an additional 4,695,000 common shares at the public offering price of $9.75 per share. The sale of these common shares resulted in net proceeds to the Company of approximately $42.6 million, after deducting underwriters’ discounts and commissions.
Newbuilding vessel orders
In January 2014, the Company announced that it had entered into agreements for the purchase of 20 Capesize dry bulk vessels and two Kamsarmax dry bulk vessels. The total purchase price for these 22 vessels is approximately $1,173 million and the deliveries of the vessels are expected to occur between the first quarter of 2015 and the third quarter of 2016.
In March 2014, the Company agreed to acquire five Capesize dry bulk vessels under construction at two South Korean shipyards. The aggregate purchase price for these five vessels is approximately $306 million and the deliveries are expected to occur between the second quarter of 2015 and the first quarter of 2016.
Time chartered-in vessels
In February and March 2014, the Company announced that that it has agreed to time charter-in 17 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:
Vessel Type Year DWT Where Built Daily Base Earliest Expiry
Built Rate
Post-Panamax 2010 93,000 China $13,250 28-Oct-14 (1)
Post-Panamax 2011 93,000 China $13,500 31-Oct-14 (2)
Kamsarmax 2009 82,500 Japan $14,500 28-Feb-15 (3)
Kamsarmax 2012 82,000 South Korea $15,500 31-Jul-17 (4)
Kamsarmax 2012 81,500 South Korea $14,500 31-Dec-14 (5)
Kamsarmax 2011 81,500 South Korea $15,000 31-Jan-16 (6)
Kamsarmax 2012 81,000 South Korea $15,000 28-Feb-15 (7)
Kamsarmax 2012 79,500 China $14,000 1-Jan-15 (8)
Panamax 2004 77,500 China $14,000 31-Jan-17 (9)
Panamax 2014 77,000 Japan $16,000 31-Mar-15 (10)
Panamax 2009 76,500 Japan See Note (11) 1-Dec-14 (11)
Panamax 2007 75,500 South Korea $13,750 28-Feb-15 (12)
Ultramax 2010 61,000 Japan $14,200 1-Apr-17 (13)
Supramax 2010 58,000 China $14,250 31-Dec-16 (14)
Supramax 2011 58,000 China $13,750 31-Jan-15 (15)
Supramax 2015 55,000 Japan $14,000 30-Jun-18 (16)
Handymax 2002 48,500 Japan $12,000 31-Jan-17 (17)
Total TC DWT 1,261,000
(1) This vessel has been time chartered-in for eight to 10 months at
Company's option at $13,250 per day. The vessel was delivered on
February 23, 2014.
(2) This vessel has been time chartered-in for seven to nine months at the
Company's option at $13,500 per day. The vessel was delivered on March
24, 2014.
(3) This vessel has been time chartered-in for 11 to 13 months at the
Company's option at $14,500 per day. The Company has the option to
extend this time charter for one year at $15,500 per day. The vessel
was delivered on March 8, 2014.
(4) This vessel has been time chartered-in for 39 to 44 months at the
Company's option at $15,500 per day. The Company has the option to
extend this time charter for one year at $16,300 per day. The vessel
was delivered on April 23, 2014.
(5) This vessel has been time chartered-in for 10 to 12 months at Company's
option at $14,500 per day. The vessel was delivered on February 7,
2014.
(6) This vessel has been time chartered-in for 23 to 28 months at the
Company's option at $15,000 per day. The Company has the option to
extend the charter for an additional 11 to 13 months at $16,000 per
day. This vessel was delivered on February 15, 2014.
(7) This vessel has been time chartered-in for 12 to 14 months at Company's
option at $15,000 per day. The vessel was delivered on February 10,
2014.
(8) This vessel has been time chartered-in for 11 to 14 months at the
Company's option at $14,000 per day. The Company has the option to
extend the charter for an additional 11 to 14 months at $14,750 per
day. This vessel was delivered on February 23, 2014.
(9) This vessel has been time chartered-in for 32 to 38 months at the
Company's option at $14,000 per day. The vessel is expected to be
delivered by June 2014.
(10) This vessel has been time chartered-in for 12 to 13 months at Company's
option at $16,000 per day. The vessel was delivered on March 4, 2014.
(11) This vessel has been time chartered-in until December 1, 2014 which may
be extended for an additional two months at the Company's option. The
charter hire rate is $15,900 per day until June 23, 2014 and $14,000
per day thereafter, including the option period. The vessel was
delivered on January 23, 2014.
(12) This vessel has been time chartered-in for 11 to 13 months at the
Company's option at $13,750 per day. The Company has the option to
extend the charter for an additional year at $14,750 per day. The
vessel was delivered on March 14, 2014.
(13) This vessel has been time chartered-in for three years at $14,200 per
day. The Company has options to extend the charter for up to three
consecutive one year periods at $15,200 per day, $16,200 per day and
$17,200 per day, respectively. This vessel was delivered on April 13,
2014.
(14) This vessel has been time chartered-in for 20 to 24 months at the
Company's option at $14,250 per day. The Company has the option to
extend the charter for an additional 10 to 12 months at $14,850 per
day. This vessel is expected to be delivered during the second quarter
of 2014.
(15) This vessel has been time chartered-in for 10 to 13 months at the
Company's option at $13,750 per day. This vessel was delivered on March
18, 2014.
(16) This vessel has been time chartered-in for three years at $14,000 per
day. The Company has options to extend the charter for up to two
consecutive one year periods at $15,000 per day and $16,000 per day,
respectively. This vessel is expected to be delivered during the first
half of 2015.
(17) This vessel has been time chartered-in for 34 to 37 months at the
Company's option at $12,000 per day. The Company has options to extend
the charter for up to three consecutive one year periods at $12,750 per
day, $13,600 per day and $14,800 per day, respectively. This vessel was
delivered on March 31, 2014.
Completion of Exchange Offer
On February 12, 2014, the Company completed its offer to exchange an aggregate of 96,065,411 unregistered common shares issued in equity private placements between July and October 2013 for an equivalent number of registered common shares. Pursuant to the exchange offer, holders of 95,766,779 unregistered common shares tendered such shares in exchange for registered common shares representing participation of 99.7%. The Company expects to terminate the Oslo OTC listing of its common shares during the second quarter of 2014.
$67.5 million Loan Facility
On February 25, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility (the Facility) of up to $67.5 million. The Facility will be used to finance up to 60% of the purchase price upon delivery of two Ultramax and two Kamsarmax vessels currently under construction. The Facility has a final maturity of seven years from the date of delivery of each vessel. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.
$39.6 million Loan Facility
On April 24, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility (the Facility) of up to $39.6 million. The Facility will be used to finance up to 55% of the fair market value upon delivery of two Kamsarmax vessels currently under construction. The Facility has a final maturity of five years from the signing of the facility documentation. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.
Conference Call
The Company will have a conference call on April 30, 2014 at 11:00 AM Eastern Daylight Time and 5:00 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888) 713-4485 (U.S.) or 1(913) 312-1503 (International). The conference participant passcode is 3339559. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.
Audio Webcast:
There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Webcast URL: http://www.visualwebcaster.com/event.asp?id=99107
Current Liquidity
As of April 28, 2014, the Company had $459.2 million in cash and cash equivalents.
Newbuilding Program
The aggregate purchase price of our 79 vessels contracted to be constructed is approximately $3,071.5 million. As of April 28, 2014, we have paid a total of $660.4 million in installment payments due under our shipbuilding contracts for our Initial Fleet. The remaining $2,411.1 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 28 Ultramax newbuildings, 23 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:
Q2 2014 $ 175.5 million **
Q3 2014 59.8 million
Q4 2014 48.3 million
Q1 2015 218.6 million
Q2 2015 196.4 million
Q3 2015 509.6 million
Q4 2015 394.5 million
Q1 2016 342.8 million
Q2 2016 343.4 million
Q3 2016 122.2 million
$ 2,411.1 million
* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from April 28, 2014 to June 30, 2014.
Explanation of Components of First Quarter of 2014 Financial Results
For the three months ended March 31, 2014, the Company recorded a net loss of $10.7 million.
Time charter equivalent, or TCE revenue, a non-GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.
TCE revenue was $2.4 million for the three months ended March 31, 2014, associated with chartering in 12 vessels, for which the time charter equivalent revenue per day was $5,715 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by the integration of the time chartered vessels into our fleet which required significant time and fuel as they had to be repositioned for their first voyages.
Charterhire expense was $6.7 million for the three months ended March 31, 2014 relating to the time chartered-in vessels described above. See the Company’s Fleet List below for the terms of these agreements.
General and administrative expense was $6.9 million for the three months ended March 31, 2014. Such amount included $5.1 million of restricted stock amortization (noncash) and the balance was for payroll, directors’ fees, professional fees and insurance.
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Consolidated Statement of Operations
(Dollars in Thousands, Except Per Share Data)
Three Months
Ended March 31,
2014
Revenue:
Vessel revenue $ 5,467
----------------
Operating expenses:
Voyage expenses 3,048
Charterhire expense 6,679
General and administrative expenses 6,897
----------------
Total operating expenses 16,624
----------------
Operating loss (11,157)
----------------
Other income (expense):
Interest income 524
Foreign exchange loss (23)
Other expense, net -
----------------
Total other income 501
----------------
Net loss $ (10,656)
================
Loss per common share- basic and diluted (1) $ (0.08)
Weighted-average shares outstanding- basic and diluted (1) 132,610,911
(1) Diluted weighted-average shares outstanding, which would include the
impact of restricted shares, for the three months ended March 31, 2014
would be anti-dilutive since the Company is in a net loss position. As
such, there is no difference between basic and diluted earnings per
share for these periods.
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Consolidated Balance Sheet
(Dollars in Thousands, Except Per Share Data)
March 31, December 31,
Assets 2014 2013
------------- -------------
Current assets
Cash and cash equivalents $ 528,013$ 733,896
Due from charterers 10,546 -
Prepaid expenses and other current assets 2,087 61
------------- -------------
Total current assets 540,646 733,957
------------- -------------
Non-current assets
Vessels under construction 661,266 371,692
Other assets 2,376 35
------------- -------------
Total non-current assets 663,642 371,727
------------- -------------
Total assets $ 1,204,288$ 1,105,684
============= =============
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued expenses $ 63,140$ 1,472
------------- -------------
Total current liabilities 63,140 1,472
------------- -------------
Non-current liabilites - -
------------- -------------
Total liabilities 63,140 1,472
------------- -------------
Shareholders' equity
Common stock, $0.01 par value per share;
authorized 450,000,00 shares; issued and
outstanding 140,179,301 and 133,403,931
shares as of March 31, 2014 and December
31, 2013, respectively 1,402 1,334
Paid-in capital 1,156,709 1,109,185
Deficit accumulated during the development
stage (16,963) (6,307)
------------- -------------
Total shareholders' equity 1,141,148 1,104,212
------------- -------------
Total liabilities and shareholders' equity $ 1,204,288$ 1,105,684
============= =============
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Consolidated Statement of Cash Flows
(Dollars in Thousands)
Three Months
Ended March 31,
2014
Operating activities
Net loss $ (10,656)
Restricted stock amortization 5,079
Increase in amounts due from charterers (11,874)
Increase in prepaid expenses and other current assets (2,026)
Increase in accounts payable and accrued expenses 3,608
----------------
Net cash used in operating activities (15,869)
----------------
Investing activities
Payments for vessels under construction (231,514)
----------------
Net cash used in investing activities (231,514)
----------------
Financing activities
Proceeds from issuance of common stock 42,513
Debt issue costs paid (1,013)
----------------
Net cash provided by financing activities 41,500
----------------
Decrease in cash and cash equivalents (205,883)
Cash at cash equivalents, beginning of period 733,896
----------------
Cash and cash equivalents, end of period $ 528,013
================
Scorpio Bulkers Inc. and Subsidiaries
(a development stage company)
Other Operating Data
(Dollars in Thousands, Except Per Day Data)
Three Months
Ended March 31,
2014
Time Charter Equivalent Revenue (1):
Vessel revenue $ 5,467
Voyage expenses 3,048
----------------
Time charter equivalent revenue $ 2,419
================
Time charter equivalent revenue attributable to:
Kamsarmax $ 2,233
Ultramax 186
----------------
$ 2,419
================
Revenue days (1):
Kamsarmax 408.3
Ultramax 15.0
----------------
Combined 423.3
================
TCE per revenue day (1):
Kamsarmax $ 5,469
Ultramax $ 12,400
Combined $ 5,715
(1) We define Time Charter Equivalent (TCE) revenue as voyage revenues less
voyage expenses. Such TCE revenue, divided by the number of our
available days during the period, or revenue days, is TCE per revenue
day, which is consistent with industry standards. TCE per revenue day
is a common shipping industry performance measure used primarily to
compare daily earnings generated by vessels on time charters with daily
earnings generated by vessels on voyage charters, because charter hire
rates for vessels on voyage charters are generally not expressed in
per-day amounts while charter hire rates for vessels on time charters
generally are expressed in such amounts.
Fleet List as of April 30, 2014
Capesize Expected
Vessel Name Delivery (1) DWT Shipyard
1 SBI Puro Q1-15 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
2 SBI Valrico Q2-15 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
3 SBI Maduro Q3-15 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
4 SBI Belicoso Q4-15 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
5 SBI Corona Q1-16 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
6 SBI Diadema Q2-16 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
7 SBI Estupendo Q3-16 180,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
8 SBI Montesino Q2-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
9 SBI Magnum Q3-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
10 SBI Montecristo Q3-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
11 SBI Aroma Q3-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
12 SBI Cohiba Q4-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
13 SBI Habano Q4-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
14 SBI Lonsdale Q1-16 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
15 SBI Partagas Q1-16 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
16 SBI Parejo Q2-16 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
17 SBI Toro Q2-16 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
18 SBI Tuscamina Q2-16 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
19 SBI Camacho Q2-15 180,000 Sungdong Shipbuilding & Marine
Engineering Co., Ltd.
20 SBI Churchill Q4-15 180,000 Daewoo Mangalia Heavy Industries
S.A.
21 SBI Perfecto Q1-16 180,000 Daewoo Mangalia Heavy Industries
S.A.
22 SBI Presidente Q4-15 180,000 Daewoo Mangalia Heavy Industries
S.A.
23 SBI Panatela Q1-16 180,000 Daewoo Mangalia Heavy Industries
S.A.
24 SBI Robusto Q2-16 180,000 Daewoo Mangalia Heavy Industries
S.A.
25 SBI Behike Q3-15 180,000 Daehan Shipbuilding Co., Ltd.
26 SBI Monterray Q4-15 180,000 Daehan Shipbuilding Co., Ltd.
27 SBI Macanudo Q4-15 180,000 Daehan Shipbuilding Co., Ltd.
28 SBI Cuaba Q1-16 180,000 Daehan Shipbuilding Co., Ltd.
Capesize NB DWT 5,040,000
Kamsarmax
Expected
Vessel Name Delivery (1) DWT Shipyard
1 SBI Cakewalk Q2-14 82,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
2 SBI Charleston Q3-14 82,000 Shanghai Waigaoqiao Shipbuilding
Co., Ltd.
3 SBI Samba Q1-15 84,000 Imabari Shipbuilding Co., Ltd.
4 SBI Rumba Q3-15 84,000 Imabari Shipbuilding Co., Ltd.
5 SBI Electra Q3-15 82,000 Jiangsu Yangzijiang Shipbuilding
Co., Ltd.
6 SBI Flamenco Q3-15 82,000 Jiangsu Yangzijiang Shipbuilding
Co., Ltd.
7 SBI Rock Q4-15 82,000 Jiangsu Yangzijiang Shipbuilding
Co., Ltd.
8 SBI Twist Q1-16 82,000 Jiangsu Yangzijiang Shipbuilding
Co., Ltd.
9 SBI Salsa Q3-15 81,600 Tsuneishi Group (Zhoushan)
Shipbuilding Inc.
10 SBI Merengue Q1-16 81,600 Tsuneishi Group (Zhoushan)
Shipbuilding Inc.
11 SBI Capoeira Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
12 SBI Conga Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
13 SBI Bolero Q3-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
14 SBI Carioca Q4-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
15 SBI Sousta Q4-15 82,000 Hudong-Zhonghua (Group) Co., Ltd.
16 SBI Reggae Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
17 SBI Lambada Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
18 SBI Zumba Q1-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
19 SBI Macerena Q2-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
20 SBI Swing Q3-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
21 SBI Jive Q3-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
22 SBI Parapara Q2-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
23 SBI Mazurka Q2-16 82,000 Hudong-Zhonghua (Group) Co., Ltd.
Kamsarmax NB DWT 1,889,200
Ultramax
Expected
Vessel Name Delivery (1) DWT Shipyard
1 SBI Echo Q3-15 61,000 Imabari Shipbuilding Co., Ltd.
2 SBI Cronos Q1-16 61,000 Imabari Shipbuilding Co., Ltd.
3 SBI Tango Q3-15 61,000 Imabari Shipbuilding Co., Ltd.
4 SBI Hermes Q1-16 61,000 Imabari Shipbuilding Co., Ltd.
5 SBI Hera Q2-16 60,200 Mitsui Engineering & Shipbuilding
Co., Ltd.
6 SBI Zeus Q2-16 60,200 Mitsui Engineering & Shipbuilding
Co., Ltd.
7 SBI Poseidon Q3-16 60,200 Mitsui Engineering & Shipbuilding
Co., Ltd.
8 SBI Apollo Q3-16 60,200 Mitsui Engineering & Shipbuilding
Co., Ltd.
9 SBI Bravo Q1-15 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
10 SBI Antares Q1-15 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
11 SBI Maia Q3-15 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
12 SBI Hydra Q3-15 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
13 SBI Hyperion Q2-16 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
14 SBI Tethys Q2-16 61,000 Nantong COSCO KHI Ship Engineering
Co. Ltd.
15 SBI Leo Q2-15 61,000 Dalian COSCO KHI Ship Engineering
Co. Ltd.
16 SBI Lyra Q3-15 61,000 Dalian COSCO KHI Ship Engineering
Co. Ltd.
17 SBI Subaru Q3-15 61,000 Dalian COSCO KHI Ship Engineering
Co. Ltd.
18 SBI Ursa Q4-15 61,000 Dalian COSCO KHI Ship Engineering
Co. Ltd.
19 SBI Athena Q1-15 64,000 Chengxi Shipyard Co. Ltd.
20 SBI Pegasus Q3-15 64,000 Chengxi Shipyard Co. Ltd.
21 SBI Orion Q4-15 64,000 Chengxi Shipyard Co. Ltd.
22 SBI Thalia Q4-15 64,000 Chengxi Shipyard Co. Ltd.
23 SBI Hercules Q1-16 64,000 Chengxi Shipyard Co. Ltd.
24 SBI Kratos Q2-16 64,000 Chengxi Shipyard Co. Ltd.
25 SBI Perseus Q2-16 64,000 Chengxi Shipyard Co. Ltd.
26 SBI Samson Q2-16 64,000 Chengxi Shipyard Co. Ltd.
27 SBI Phoebe Q2-16 64,000 Chengxi Shipyard Co. Ltd.
28 SBI Phoenix Q3-16 64,000 Chengxi Shipyard Co. Ltd.
Ultramax NB DWT 1,734,800
79 Total Newbuild DWT 8,664,000
(1) Expected delivery date relates to quarter during which each vessel is
currently expected to be delivered from the shipyard.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. has currently 17 time chartered-in dry bulk vessels (one Handymax, one Ultramax, three Supramax, four Panamax, six Kamsarmax and two Post-Panamax vessels) and has contracted and agreed to purchase 79 dry bulk vessels consisting of 28 Ultramax, 23 Kamsarmax and 28 Capesize vessels to be delivered starting from the second quarter of 2014 from shipyards in Japan, Korea, China and Romania. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Contact: Scorpio Bulkers Inc. +377-9798-5715 (Monaco) +1-646-432-1675 (New York)
Source: Scorpio Bulkers Inc.
