MONACO — (Marketwired) — 07/30/14 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three and six months ended June 30, 2014. The Company had minimal operations from the period from March 20, 2013 (date of inception) to June 30, 2013.
Results for the three and six months ended June 30, 2014
For the three months ended June 30, 2014, the Company had a net loss of $15.0 million, or $0.11 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $6.2 million.
For the six months ended June 30, 2014, the Company had a net loss of $25.7 million, or $0.19 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $11.3 million.
Recent Significant Events
$540 million Loan Facility
On July 21, 2014, the Company received a commitment from two leading European financial institutions for a Loan Facility of up to $540 million. The Facility will be used to finance up to 55% of the contract price of six Ultramax, nine Kamsarmax, and nine Capesize vessels currently under construction for delivery in 2015 and 2016. The Loan Facility has a final maturity of six years from the date of signing. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Loan Facility, which is expected to occur within 2014, remains subject to customary conditions precedent, including negotiation and execution of final documentation.
Update on Previously-Announced Credit Facilities
On June 27, 2014, the Company signed a $39.6 million loan agreement which will be used to finance a portion of the market value of two Kamsarmax vessels currently under construction that are expected to be delivered to the Company later in 2014.
On July 29, 2014, the Company signed a $330.0 million loan agreement which will be used to finance a portion of the contract price of 16 Ultramax and six Kamsarmax vessels currently under construction for delivery in 2015 and 2016.
On July 30, 2014, the Company signed a loan agreement for up to $67.5 million which will be used to finance a portion of the contract price of two Ultramax and two Kamsarmax vessels currently under construction for delivery in 2015 and 2016.
Update on Fleet Financing
Including the credit facilities described above, the Company has now either signed loan agreements or received commitments for 52 of the vessels in its fleet. In addition, the Company has received proposals from leading European and Asian financial institutions to finance a portion of the cost of its remaining 28 unfinanced vessels. If definitive agreements are entered into on these terms, the amounts provided by such facilities will vary between 55% of the contract price and 60% of the market value of the remaining unfinanced vessels currently under construction. The terms and conditions of these proposals, for which commitments are expected within 2014, are consistent with those of the Company’s existing credit commitments. The closing of any resultant Loan Facilities would remain subject to credit approval and customary conditions precedent, including negotiation and execution of final documentation.
Newbuilding vessel order
In June 2014, the Company entered into a contract with a Japanese shipyard for the construction of one Ultramax dry bulk vessel, the delivery of which is expected to occur during the first quarter of 2016. The purchase price of this vessel is approximately $31.4 million.
Time chartered-in vessels
During the second quarter of 2014, the Company entered into two time charter agreements.
- A Kamsarmax vessel built in 2011 at a South Korean shipyard. 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.
- A Post-Panamax vessel built in 2009 at a Chinese shipyard. This vessel has been time chartered-in for 10 to 14 months at the Company’s option at a rate of 90% of the Baltic Panamax 4TC Index. The Company has the option to extend this time charter for an additional 10 to 14 months at the same rate of hire. The vessel was delivered on July 9, 2014.
Delisting from Norwegian OTC List
The Company is scheduled to delist its common shares from the Norwegian OTC List on July 31, 2014. The Company’s common shares will continue to trade on the New York Stock Exchange under the symbol “SALT.”
Current Liquidity
As of July 28, 2014, the Company had $241.9 million in cash and cash equivalents.
Newbuilding Program
The aggregate purchase price of our 80 vessels contracted to be constructed is approximately $3,102.8 million. As of July 28, 2014, we have paid a total of $851.3 million in installment payments due under our shipbuilding contracts for our Initial Fleet. The remaining $2,251.5 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 29 Ultramax newbuildings, 23 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:
Q3 2014 $ 54.0 million**
Q4 2014 84.1 million
Q1 2015 279.1 million
Q2 2015 280.5 million
Q3 2015 457.3 million
Q4 2015 294.9 million
Q1 2016 426.1 million
Q2 2016 251.2 million
Q3 2016 124.3 million
---------------
$ 2,251.5 million
===============
* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from July 28, 2014 to September 30, 2014.
Explanation of Components of Second Quarter of 2014 Financial Results
For the three months ended June 30, 2014, the Company recorded a net loss of $15.0 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 $13.0 million for the three months ended June 30, 2014, associated with chartering in 19 vessels, for which the time charter equivalent revenue per day was $8,867 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by a depressed rate environment for dry bulk carriers as well as the integration of the time chartered vessels into our fleet which required significant time and fuel as they had to be repositioned for certain of their first voyages.
Charterhire expense was $19.9 million for the three months ended June 30, 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 $8.5 million for the three months ended June 30, 2014. Such amount included $6.2 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance.
For the six months ended June 30, 2014, the Company recorded a net loss of $25.7 million.
TCE revenue was $15.5 million for the six months ended June 30, 2014, associated with chartering in 19 vessels, for which the time charter equivalent revenue per day was $8,163 (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 as well as a depressed rate environment for dry bulk carriers.
Charterhire expense was $26.6 million for the six months ended June 30, 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 $15.4 million for the six months ended June 30, 2014. Such amount included $11.3 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance.
Scorpio Bulkers, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollars in Thousands, Except Per Share Data)
Period from
March 20,
Three Months Three Months Six Months 2013 (date of
Ended Ended Ended inception) to
June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013
------------- ------------- ------------- -------------
Revenue:
Vessel revenue $ 13,180 $ - $ 18,647 $ -
------------- ------------- ------------- -------------
Operating
expenses:
Voyage expenses 132 - 3,180 -
Charterhire
expense 19,883 - 26,562 -
General and
administrative
expenses 8,454 1 15,351 1
------------- ------------- ------------- -------------
Total operating
expenses 28,469 1 45,093 1
------------- ------------- ------------- -------------
Operating loss (15,289) (1) (26,446) (1)
------------- ------------- ------------- -------------
Other income
(expense):
Interest income 269 - 793 -
Foreign exchange
gain (loss) 18 - (5) -
Total other
income 287 - 788 -
------------- ------------- ------------- -------------
Net loss $ (15,002) $ (1) $ (25,658) $ (1)
============= ============= ============= =============
Loss per common
share- basic
and diluted (1) $ (0.11) $ - $ (0.19) $ -
Weighted-average
shares
outstanding-
basic and
diluted (1) 133,236,911 1,500 132,925,640 1,500
(1) Diluted weighted-average shares outstanding, which would include the
impact of restricted shares, for the three and six months ended June
30, 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. There were no potentially
dilutive shares outstanding during the period from March 20, 2013 (date
of inception) to June 30, 2013.
The loss per common share for the three months ended June 30, 2013 and
for the period from March 20, 2013 (date of inception) to June 30, 2013
was $(0.67). The size of this loss per common share relates to the low
weighted-average number of shares outstanding during those periods and
is not a meaningful representation of the results of operations for
those periods and is not comparable to the 2014 periods.
Scorpio Bulkers Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in Thousands, Except Per Share Data)
June 30, December 31,
2014 2013
-------------- --------------
Assets
Current assets
Cash and cash equivalents $ 345,956$ 733,896
Due from charterers 14,869 -
Prepaid expenses and other current assets 2,221 61
-------------- --------------
Total current assets 363,046 733,957
-------------- --------------
Non-current assets
Vessels under construction 842,845 371,692
Other assets 5,392 35
-------------- --------------
Total non-current assets 848,237 371,727
-------------- --------------
Total assets $ 1,211,283$ 1,105,684
============== ==============
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued expenses $ 79,091$ 1,472
-------------- --------------
Total current liabilities 79,091 1,472
-------------- --------------
Non-current liabilities - -
-------------- --------------
Total liabilities 79,091 1,472
-------------- --------------
Shareholders' equity
Common stock, $0.01 par value per share;
authorized 450,000,00 shares; issued and
outstanding 140,247,301 and 133,403,931
shares as of June 30, 2014 and December
31, 2013, respectively 1,402 1,334
Paid-in capital 1,162,755 1,109,185
Accumulated deficit (31,965) (6,307)
-------------- --------------
Total shareholders' equity 1,132,192 1,104,212
-------------- --------------
Total liabilities and shareholders' equity $ 1,211,283$ 1,105,684
============== ==============
Scorpio Bulkers Inc., and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollars in Thousands)
Period from
March 20,
Six Months 2013 (date of
Ended inception) to
June 30, 2014 June 30, 2013
------------- -------------
Operating activities
Net loss $ (25,658) $ (1)
Restricted stock amortization 11,278 -
Increase in amounts due from charterers (19,004) -
Increase in prepaid expenses and other current
assets (2,160) -
Increase in accounts payable and accrued
expenses 3,341 1
------------- -------------
Net cash used in operating activities (32,203) -
------------- -------------
Investing activities -
Payments for vessels under construction (397,000) -
------------- -------------
Net cash used in investing activities (397,000) -
------------- -------------
Financing activities
Proceeds from issuance of common stock 42,485 -
Debt issue costs paid (1,222) -
------------- -------------
Net cash provided by financing activities 41,263 -
------------- -------------
Decrease in cash and cash equivalents (387,940) -
Cash at cash equivalents, beginning of period 733,896 -
------------- -------------
Cash and cash equivalents, end of period $ 345,956 $ -
============= =============
Scorpio Bulkers Inc. and Subsidiaries
Other Operating Data (unaudited)
(Dollars in Thousands, Except Per Day Data)
Period from
March 20,
2013 (date
Three Three of
Months Months Six Months inception)
Ended Ended Ended to
June 30, June 30, June 30, June 30,
2014 2013 2014 2013
----------- ----------- ----------- -----------
Time Charter Equivalent
Revenue (1):
Vessel revenue $ 13,180 $ - $ 18,647 $ -
Voyage expenses 132 - 3,180 -
----------- ----------- ----------- -----------
Time charter equivalent
revenue $ 13,048 $ - $ 15,467 $ -
=========== =========== =========== ===========
Time charter equivalent
revenue attributable to:
Kamsarmax $ 9,794 $ - $ 12,027 $ -
Ultramax 3,254 - 3,440 -
----------- ----------- ----------- -----------
$ 13,048 $ - $ 15,467 $ -
=========== =========== =========== ===========
Revenue days (1):
Kamsarmax 1,151 - 1,560 -
Ultramax 320 - 335 -
----------- ----------- ----------- -----------
Combined 1,471 - 1,895 -
=========== =========== =========== ===========
TCE per revenue day (1):
Kamsarmax $ 8,507 $ - $ 7,712 $ -
Ultramax $ 10,162 $ - $ 10,262 $ -
Combined $ 8,867 $ - $ 8,163 $ -
(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 July 30, 2014
Capesize Vessels
Expected
Delivery
Vessel Name (1) DWT Shipyard
1 Hull H1309 - TBN SBI Puro Q1-15 180,000 Shanghai Waigaoqiao
Shipbuilding Co., Ltd.
2 Hull H1310 - TBN SBI Q2-15 180,000 Shanghai Waigaoqiao
Valrico Shipbuilding Co., Ltd.
3 Hull H1311 - TBN SBI Q3-15 180,000 Shanghai Waigaoqiao
Maduro Shipbuilding Co., Ltd.
4 Hull H1364 - TBN SBI Q4-15 180,000 Shanghai Waigaoqiao
Belicoso Shipbuilding Co., Ltd.
5 Hull H1365 - TBN SBI Q1-16 180,000 Shanghai Waigaoqiao
Corona Shipbuilding Co., Ltd.
6 Hull H1366 - TBN SBI Q2-16 180,000 Shanghai Waigaoqiao
Diadema Shipbuilding Co., Ltd.
7 Hull H1367 - TBN SBI Q3-16 180,000 Shanghai Waigaoqiao
Estupendo Shipbuilding Co., Ltd.
8 Hull S1205 - TBN SBI Q1-15 180,000 Sungdong Shipbuilding &
Camacho Marine Engineering Co.,
Ltd.
9 Hull S1206 - TBN SBI Q2-15 180,000 Sungdong Shipbuilding &
Montesino Marine Engineering Co.,
Ltd.
10 Hull S1211 - TBN SBI Q2-15 180,000 Sungdong Shipbuilding &
Magnum Marine Engineering Co.,
Ltd.
11 Hull S1212 - TBN SBI Q3-15 180,000 Sungdong Shipbuilding &
Montecristo Marine Engineering Co.,
Ltd.
12 Hull S1213 - TBN SBI Q3-15 180,000 Sungdong Shipbuilding &
Aroma Marine Engineering Co.,
Ltd.
13 Hull S1214 - TBN SBI Q4-15 180,000 Sungdong Shipbuilding &
Cohiba Marine Engineering Co.,
Ltd.
14 Hull S1215 - TBN SBI Q4-15 180,000 Sungdong Shipbuilding &
Habano Marine Engineering Co.,
Ltd.
15 Hull S1216 - TBN SBI Q1-16 180,000 Sungdong Shipbuilding &
Lonsdale Marine Engineering Co.,
Ltd.
16 Hull S1217 - TBN SBI Q1-16 180,000 Sungdong Shipbuilding &
Partagas Marine Engineering Co.,
Ltd.
17 Hull S1218 - TBN SBI Q2-16 180,000 Sungdong Shipbuilding &
Parejo Marine Engineering Co.,
Ltd.
18 Hull S1219 - TBN SBI Toro Q2-16 180,000 Sungdong Shipbuilding &
Marine Engineering Co.,
Ltd.
19 Hull S1220 - TBN SBI Q2-16 180,000 Sungdong Shipbuilding &
Tuscamina Marine Engineering Co.,
Ltd.
20 Hull H1059 - TBN SBI Q4-15 180,000 Daewoo Mangalia Heavy
Churchill Industries S.A.
21 Hull H1060 - TBN SBI Q4-15 180,000 Daewoo Mangalia Heavy
Perfecto Industries S.A.
22 Hull H1061 - TBN SBI Q1-16 180,000 Daewoo Mangalia Heavy
Presidente Industries S.A.
23 Hull H1062 - TBN SBI Q1-16 180,000 Daewoo Mangalia Heavy
Panatela Industries S.A.
24 Hull H1063 - TBN SBI Q2-16 180,000 Daewoo Mangalia Heavy
Robusto Industries S.A.
25 Hull HN1058 - TBN SBI Q3-15 180,000 Daehan Shipbuilding Co.,
Behike Ltd.
26 Hull HN1059 - TBN SBI Q4-15 180,000 Daehan Shipbuilding Co.,
Monterrey Ltd.
27 Hull HN1060 - TBN SBI Q4-15 180,000 Daehan Shipbuilding Co.,
Macanudo Ltd.
28 Hull HN1061 - TBN SBI Q1-16 180,000 Daehan Shipbuilding Co.,
Cuaba Ltd.
Capesize NB DWT 5,040,000
Kamsarmax Vessels
Expected
Delivery
Vessel Name (1) DWT Shipyard
1 Hull H1284 - TBN SBI Q3-14 82,000 Shanghai Waigaoqiao
Cakewalk Shipbuilding Co., Ltd.
2 Hull H1285 - TBN SBI Q4-14 82,000 Shanghai Waigaoqiao
Charleston Shipbuilding Co., Ltd.
3 Hull S1680 - TBN SBI Q1-15 84,000 Imabari Shipbuilding Co.,
Samba Ltd.
4 Hull S1681 - TBN SBI Q3-15 84,000 Imabari Shipbuilding Co.,
Rumba Ltd.
5 Hull 1090 - TBN SBI Q3-15 82,000 Jiangsu Yangzijiang
Electra Shipbuilding Co., Ltd.
6 Hull 1091 - TBN SBI Q3-15 82,000 Jiangsu Yangzijiang
Flamenco Shipbuilding Co., Ltd.
7 Hull 1092 - TBN SBI Rock Q4-15 82,000 Jiangsu Yangzijiang
Shipbuilding Co., Ltd.
8 Hull 1093 - TBN SBI Twist Q1-16 82,000 Jiangsu Yangzijiang
Shipbuilding Co., Ltd.
9 Hull SS164 - TBN SBI Q3-15 81,600 Tsuneishi Group
Salsa (Zhoushan) Shipbuilding
Inc.
10 Hull SS179 - TBN SBI Q1-16 81,600 Tsuneishi Group
Merengue (Zhoushan) Shipbuilding
Inc.
11 Hull S1228 - TBN SBI Q1-15 82,000 Hudong-Zhonghua (Group)
Capoeira Co., Ltd.
12 Hull S1722A - TBN SBI Q2-15 82,000 Hudong-Zhonghua (Group)
Conga Co., Ltd.
13 Hull S1723A - TBN SBI Q2-15 82,000 Hudong-Zhonghua (Group)
Bolero Co., Ltd.
14 Hull S1229 - TBN SBI Q2-15 82,000 Hudong-Zhonghua (Group)
Carioca Co., Ltd.
15 Hull S1724A - TBN SBI Q3-15 82,000 Hudong-Zhonghua (Group)
Sousta Co., Ltd.
16 Hull S1725A - TBN SBI Q1-16 82,000 Hudong-Zhonghua (Group)
Reggae Co., Ltd.
17 Hull S1726A - TBN SBI Q1-16 82,000 Hudong-Zhonghua (Group)
Zumba Co., Ltd.
18 Hull S1231 - TBN SBI Q1-16 82,000 Hudong-Zhonghua (Group)
Macarena Co., Ltd.
19 Hull S1735A - TBN SBI Q2-16 82,000 Hudong-Zhonghua (Group)
Parapara Co., Ltd.
20 Hull S1736A - TBN SBI Q2-16 82,000 Hudong-Zhonghua (Group)
Mazurka Co., Ltd.
21 Hull S1230 - TBN SBI Q3-16 82,000 Hudong-Zhonghua (Group)
Lambada Co., Ltd.
22 Hull S1232 - TBN SBI Q3-16 82,000 Hudong-Zhonghua (Group)
Swing Co., Ltd.
23 Hull S1233 - TBN SBI Jive Q3-16 82,000 Hudong-Zhonghua (Group)
Co., Ltd.
Kamsarmax NB DWT 1,889,200
Ultramax Vessels
Expected
Delivery
Vessel Name (1) DWT Shipyard
1 Hull 1907 - TBN SBI Hera Q2-16 60,200 Mitsui Engineering &
Shipbuilding Co., Ltd.
2 Hull 1906 - TBN SBI Zeus Q2-16 60,200 Mitsui Engineering &
Shipbuilding Co., Ltd.
3 Hull 1911 - TBN SBI Q3-16 60,200 Mitsui Engineering &
Poseidon Shipbuilding Co., Ltd.
4 Hull 1912 - TBN SBI Q3-16 60,200 Mitsui Engineering &
Apollo Shipbuilding Co., Ltd.
5 Hull S870 - TBN SBI Echo Q3-15 61,000 Imabari Shipbuilding Co.,
Ltd.
6 Hull S871 - TBN SBI Tango Q3-15 61,000 Imabari Shipbuilding Co.,
Ltd.
7 Hull S-A098 - TBN SBI Q1-16 61,000 Imabari Shipbuilding Co.,
Achilles Ltd.
8 Hull S-A089 - TBN SBI Q1-16 61,000 Imabari Shipbuilding Co.,
Cronos Ltd.
9 Hull S-A090 - TBN SBI Q1-16 61,000 Imabari Shipbuilding Co.,
Hermes Ltd.
10 Hull NE180 - TBN SBI Q1-15 61,000 Nantong COSCO KHI Ship
Bravo Engineering Co. Ltd.
11 Hull NE181 - TBN SBI Q1-15 61,000 Nantong COSCO KHI Ship
Antares Engineering Co. Ltd.
12 Hull NE182 - TBN SBI Maia Q3-15 61,000 Nantong COSCO KHI Ship
Engineering Co. Ltd.
13 Hull NE183 - TBN SBI Q3-15 61,000 Nantong COSCO KHI Ship
Hydra Engineering Co. Ltd.
14 Hull NE194 - TBN SBI Q2-16 61,000 Nantong COSCO KHI Ship
Hyperion Engineering Co. Ltd.
15 Hull NE195 - TBN SBI Q2-16 61,000 Nantong COSCO KHI Ship
Tethys Engineering Co. Ltd.
16 Hull DE018 - TBN SBI Leo Q1-15 61,000 Dalian COSCO KHI Ship
Engineering Co. Ltd.
17 Hull DE019 - TBN SBI Lyra Q3-15 61,000 Dalian COSCO KHI Ship
Engineering Co. Ltd.
18 Hull DE020 - TBN SBI Q3-15 61,000 Dalian COSCO KHI Ship
Subaru Engineering Co. Ltd.
19 Hull DE021 - TBN SBI Ursa Q3-15 61,000 Dalian COSCO KHI Ship
Engineering Co. Ltd.
20 Hull CX0610 - TBN SBI Q1-15 64,000 Chengxi Shipyard Co. Ltd.
Athena
21 Hull CX0651 - TBN SBI Q3-15 64,000 Chengxi Shipyard Co. Ltd.
Pegasus
22 Hull CX0652 - TBN SBI Q4-15 64,000 Chengxi Shipyard Co. Ltd.
Orion
23 Hull CX0612 - TBN SBI Q4-15 64,000 Chengxi Shipyard Co. Ltd.
Thalia
24 Hull CX0653 - TBN SBI Q1-16 64,000 Chengxi Shipyard Co. Ltd.
Hercules
25 Hull CX0627 - TBN SBI Q1-16 64,000 Chengxi Shipyard Co. Ltd.
Perseus
26 Hull CX0654 - TBN SBI Q2-16 64,000 Chengxi Shipyard Co. Ltd.
Kratos
27 Hull CX0655 - TBN SBI Q2-16 64,000 Chengxi Shipyard Co. Ltd.
Samson
28 Hull CX0613 - TBN SBI Q2-16 64,000 Chengxi Shipyard Co. Ltd.
Phoebe
29 Hull CX0656 - TBN SBI Q3-16 64,000 Chengxi Shipyard Co. Ltd.
Phoenix
Ultramax NB DWT 1,795,800
Total Newbuild DWT 8,725,000
(1) Expected delivery date relates to quarter during which each vessel is
currently expected to be delivered from the shipyard.
Time chartered-in vessels
The Company has time chartered-in 19 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:
Year Daily Base Earliest
Vessel Type Built DWT Where Built Rate Expiry
Post-Panamax 2010 93,000 China $13,250 23-Oct-14 (1)
Post-Panamax 2011 93,000 China $13,500 24-Oct-14 (2)
Post-Panamax 2009 93,000 China See Note (3) 9-May-15 (3)
Kamsarmax 2009 82,500 Japan $14,500 8-Feb-15 (4)
Kamsarmax 2012 82,000 South Korea $15,500 23-Jul-17 (5)
Kamsarmax 2011 81,900 South Korea $12,750 3-Apr-15 (6)
Kamsarmax 2012 81,500 South Korea $14,500 7-Dec-14 (7)
Kamsarmax 2011 81,500 South Korea $15,000 15-Jan-16 (8)
Kamsarmax 2012 81,000 South Korea $15,000 10-Feb-15 (9)
Kamsarmax 2012 79,500 China $14,000 23-Jan-15 (10)
Panamax 2004 77,500 China $14,000 3-Jan-17 (11)
Panamax 2014 77,000 Japan $16,000 4-Mar-15 (12)
Panamax 2009 76,500 Japan $14,000 1-Dec-14 (13)
Panamax 2007 75,500 South Korea $13,750 14-Feb-15 (14)
Ultramax 2010 61,000 Japan $14,200 1-Apr-17 (15)
Supramax 2010 58,000 China $14,250 12-Dec-16 (16)
Supramax 2011 58,000 China $13,750 18-Jan-15 (17)
Supramax 2015 55,000 Japan $14,000 30-Jun-18 (18)
Handymax 2002 48,500 Japan $12,000 31-Jan-17 (19)
Total TC DWT 1,435,900
(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 10 to 14 months at the
Company's option at a rate of 90% of the Baltic Panamax 4TC Index. The
Company has the option to extend this time charter for an additional 10
to 14 months at the same rate of hire. The vessel was delivered on July
9, 2014.
(4) 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.
(5) 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.
(6) This vessel has been time chartered-in for 11 to 13 months at the
Company's option at $12,750 per day. The Company has the option to
extend this time charter for one year at $13,750 per day. The vessel
was delivered on May 3, 2014.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) This vessel has been time chartered-in for 32 to 38 months at the
Company's option at $14,000 per day. The vessel was delivered on May 3,
2014.
(12) 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.
(13) 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.
(14) 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.
(15) 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.
(16) 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 was delivered on April 12, 2014.
(17) This vessel has been time chartered-in for ten to 13 months at the
Company's option at $13,750 per day. This vessel was delivered on March
18, 2014.
(18) 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.
(19) 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.
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. has currently 19 time chartered-in dry bulk vessels (one Handymax, one Ultramax, three Supramax, four Panamax, seven Kamsarmax and three Post-Panamax vessels) and has contracted and agreed to purchase 80 dry bulk vessels consisting of 29 Ultramax, 23 Kamsarmax and 28 Capesize vessels to be delivered starting from the third quarter of 2014 from shipyards in Japan, South 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.
