MONACO — (Marketwired) — 10/29/14 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three and nine months ended September 30, 2014. The Company had minimal operations from the period from March 20, 2013 (date of inception) to September 30, 2013.
Results for the three and nine months ended September 30, 2014
For the three months ended September 30, 2014, the Company had a net loss of $18.9 million, or $0.14 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $6.3 million.
For the nine months ended September 30, 2014, the Company had a net loss of $44.6 million, or $0.34 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $17.6 million.
The Company had minimal operations during the period from March 20, 2013 (date of inception) to September 30, 2013 so the prior year periods are not comparable to results for the three months and nine months ended September 30, 2014.
Explanation of Components of Financial Results for the Third Quarter of 2014 and 2013
For the three months ended September 30, 2014, the Company recorded a net loss of $18.9 million. The Company recorded a net loss of $2.7 million for the three months ended September 30, 2013.
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 $12.4 million for the three months ended September 30, 2014, associated with 22 vessels time chartered-in and one vessel owned, for which TCE revenue per day was $6,941 (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-in vessels into our fleet which required significant time and fuel as they had to be repositioned for certain of their first voyages.
Vessel operating costs for the three months ended September 30, 2014 were $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Depreciation for the three months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Charterhire expense was $22.9 million for the three months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company’s Fleet List below for the terms of these agreements.
General and administrative expense was $8.0 million for the three months ended September 30, 2014. Such amount included $6.3 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance. General and administrative expense was $0.7 million for the three months ended September 30, 2013.
During the three months ended September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.
Explanation of Components of Financial Results for the Nine Months Ended September 30, 2014 and the Period From March 20, 2013 (Date of Inception) to September 30, 2013
For the nine months ended September 30, 2014, the Company recorded a net loss of $44.6 million and recorded a net loss of $2.7 million during the period from March 20, 2013 (date of inception) to September 30, 2013.
TCE revenue was $27.8 million for the nine months ended September 30, 2014, associated with 24 vessels time chartered-in and one vessel owned, for which the time charter equivalent revenue per day was $7,570 (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.
Vessel operating costs for the nine months ended September 30, 2014 was $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Depreciation for the nine months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Charterhire expense was $49.5 million for the nine months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company’s Fleet List below for the terms of these agreements.
General and administrative expense was $23.4 million for the nine months ended September 30, 2014. Such amount included $17.6 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance. General and administrative expense was $0.7 million for the period from March 20, 2013 (date of inception) to September 30, 2013.
During the period from March 20, 2013 (date of inception) to September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.
Recent Significant Events
$411 Million Credit Facility
On October 20, 2014 the Company announced that it has received commitments from a group of financial institutions for a loan facility of up to $411.264 million (the “Facility”).
The Facility was arranged by DNB Markets, Inc. and contains commitments from financial institutions including DNB Capital, LLC, the Export-Import Bank of Korea (“KEXIM”) and Korea Trade Insurance Corporation (“KSURE”) as well as Korean and international pension funds and financial institutions.
The Facility shall mature six years from the delivery of the final vessel securing the Facility, however not later than June 2022, and in certain circumstances the Facility shall mature 12 years after the delivery of each financed vessel. The Facility is available to finance up to 60% of the contract price of the Company’s 12 Capesize bulk carriers under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd, South Korea. The terms and conditions of the Facility, including covenants, are similar to those in the Company’s existing credit facilities and customary for financings of this type, and the commitments from KEXIM and KSURE are in accordance with OECD Guidelines. The Facility is subject to customary conditions precedent and the execution of definitive documentation.
$42 Million Credit Facility
On October 22, 2014, the Company announced that it has received a commitment from a leading European financial institution for a loan facility of up to $42.0 million (the “Loan Facility”).
The Facility will be used to finance up to 60% of the market value upon delivery of two Kamsarmax vessels currently under construction at Imabari Shipbuilding Co. Ltd., Japan. The Loan Facility has a final maturity of six 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 Loan Facility is subject to customary conditions precedent and the execution of definitive documentation.
Update on Fleet Financing
Including the two credit facilities described above, the Company has now either signed loan agreements or received commitments for 66 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 14 unfinanced vessels. 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 definitive documentation.
Senior Notes Offering
On September 22, 2014 the Company issued $65 million in aggregate principal amount of senior unsecured notes (the “Notes”). The Notes will mature on September 15, 2019 and may be redeemed in whole or in part at any time or from time to time after September 15, 2016. The Notes will bear interest at a rate of 7.5% per year, payable quarterly on each March 15, June 15, September 15 and December 15, commencing on December 15, 2014. The Notes were issued in minimum denominations of $25.00 and integral multiples of $25 in excess thereof. The Company intends to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. The Company had granted the underwriters a 30-day option to purchase an additional $9.75 million in aggregate principal amount of Notes.
On October 16, 2014, underwriters exercised their option to purchase an additional $8,625,000 aggregate principal amount of the Notes (the “Additional Notes”) at $25.00 per note. The Company plans to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. Following the closing of the Additional Notes, the Company has $73,625,000 aggregate principal amount of the Notes outstanding.
Contemplated Bond Offering
The Company is currently evaluating raising additional capital in the institutional bond markets in an offering exempt from registration under the Securities Act of 1933, as amended. The Company believes this could provide an opportunity to diversify its sources of funding and further strengthen the Company’s balance sheet.
Time chartered-in vessels
During the third quarter of 2014, the Company entered into five time charter agreements.
- A Post-Panamax vessel built in 2012 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company’s option at $13,000 per day. The Company has the option to extend this time charter for one year at $14,000 per day. This vessel is expected to be delivered December 2014.
- A Post-Panamax vessel built in 2011 at a Chinese shipyard. This vessel has been time chartered-in for 11 to 13 months at the Company’s option at $9,500 per day. The Company has the option to extend this time charter for one year at $11,500 per day. The vessel was delivered on September 10, 2014.
- A Kamsarmax vessel built in 2014 at a South Korean shipyard. This vessel has been time chartered-in for 11 to 14 months at the Company’s option at $12,000 per day. The Company has the option to extend this time charter for one year. The vessel was delivered on August 22, 2014.
- A Panamax vessel built in 2014 at a Chinese shipyard. This vessel has been time chartered-in for 10 to 13 months at Company’s option at $5,000 per day for the first 40 days and $10,000 per day thereafter. The Company has the option to extend the charter for one year at $12,000 per day. The vessel was delivered on August 10, 2014.
- A Supramax vessel built in 2008 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company’s option at $12,250 per day. The Company has the option to extend this time charter for one year at $13,000 per day. The vessel was delivered on September 13, 2014.
Current Liquidity
As of October 27, 2014, the Company had $208.9 million in cash and cash equivalents.
Newbuilding Program
The aggregate purchase price of the vessels in our initial fleet of 80 vessels was $3,102.8 million, of which two Kamsarmax vessels were delivered to us during the third quarter of 2014. As of October 27, 2014, we have paid a total of $936.0 million in installment payments due under our shipbuilding contracts for our Initial Fleet, including payments for the two vessels delivered to us. The remaining $2,166.8 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 29 Ultramax newbuildings, 21 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:
Q4 2014 $ 52.8 million**
Q1 2015 260.3 million
Q2 2015 288.7 million
Q3 2015 513.1 million
Q4 2015 327.6 million
Q1 2016 372.9 million
Q2 2016 280.0 million
Q3 2016 71.3 million
-------------
$ 2,166.8 million
=============
* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from October 27, 2014 to December 31, 2014.
Conference Call Details:
Wednesday, October 29, 2014 at 11:00 AM Eastern Daylight Time and 4:00 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888)-797-2980 (U.S.) or 1(913)-981-5596 (International). The conference participant passcode is 7812625. 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=100862
Scorpio Bulkers, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(Dollars in Thousands, Except Per Share Data)
Period from
March 20,
2013 (date
of
Three Months Three Months Nine Months inception)
Ended Ended Ended to
September September September September
30, 2014 30, 2013 30, 2014 30, 2013
------------ ------------ ------------ ------------
Revenue:
Vessel revenue $ 12,608 $ - $ 31,255 $ -
------------ ------------ ------------ ------------
Operating expenses:
Voyage expenses 238 - 3,418 -
Vessel operating
cost 382 - 382 -
Charterhire expense 22,906 - 49,468 -
Depreciation 117 - 117 -
General and
administrative
expenses 8,034 675 23,385 676
------------ ------------ ------------ ------------
Total operating
expenses 31,677 675 76,770 676
------------ ------------ ------------ ------------
Operating loss (19,069) (675) (45,515) (676)
------------ ------------ ------------ ------------
Other income
(expense):
Interest income 129 19 922 19
Foreign exchange
gain (loss) 5 (2,081) - (2,081)
Other expense, net 26 - 26 -
------------ ------------ ------------ ------------
Total other income 160 (2,062) 948 (2,062)
------------ ------------ ------------ ------------
Net loss $ (18,909)$ (2,737)$ (44,567)$ (2,738)
============ ============ ============ ============
Loss per common
share- basic and
diluted (1) $ (0.14)$ (0.08)$ (0.34)$ (0.17)
Weighted-average
shares outstanding-
basic and diluted
(1) 133,248,016 33,453,698 133,034,280 15,692,995
(1) Diluted weighted-average shares outstanding, which would include the
impact of restricted shares, for the three and nine months ended
September 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 September 30, 2013.
Scorpio Bulkers Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(Dollars in Thousands, Except Per Share Data)
September 30, December 31,
2014 2013
-------------- --------------
Current assets
Cash and cash equivalents $ 218,585$ 733,896
Due from charterers 17,419 -
Prepaid expenses and other current assets 2,817 61
-------------- --------------
Total current assets 238,821 733,957
-------------- --------------
Non-current assets
Vessels, net 66,653 -
Vessels under construction 870,265 371,692
Deferred financing costs, net 2,240 -
Other assets 13,794 35
--------------
Total non-current assets 952,952 371,727
-------------- --------------
Total assets $ 1,191,773$ 1,105,684
============== ==============
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued expenses $ 6,704$ 1,472
Total current liabilities 6,704 1,472
-------------- --------------
Non-current liabilities
Senior Notes 65,000 -
-------------- --------------
Total non-current liabilities 65,000 -
-------------- --------------
Total liabilities 71,704 1,472
-------------- --------------
Shareholders' equity
Common stock, $0.01 par value per share;
authorized 450,000,000 shares;issued and
outstanding 140,299,695 and 133,403,931
shares as of September 30, 2014 and
December 31, 2013, respectively 1,403 1,334
Paid-in capital 1,169,540 1,109,185
Accumulated deficit (50,874) (6,307)
-------------- --------------
Total shareholders' equity 1,120,069 1,104,212
-------------- --------------
Total liabilities and shareholders' equity $ 1,191,773$ 1,105,684
============== ==============
Scorpio Bulkers Inc., and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(Dollars in Thousands)
Period from
March 20, 2013
Nine Months (date of
Ended inception) to
September 30, September 30,
2014 2013
-------------- --------------
Operating activities
Net loss $ (44,567)$ (2,738)
Adjustment to reconcile net loss to net cash
used byoperating activities:
Restricted stock amortization 17,579 -
Unrealized loss on foreign currency
transactions - 2,080
Depreciation 117 -
Amortization of deferred financing costs 10 -
Changes in operating assets and liabilities:
Increase in amounts due from charterers (22,081) -
Increase in prepaid expenses and other
current assets (2,756) (4)
Increase in accounts payable and accrued
expenses 2,642 635
-------------- --------------
Net cash used in operating activities (49,056) (27)
-------------- --------------
Investing activities
Payments for vessels and vessels under
construction (562,781) (70,053)
-------------- --------------
Net cash used in investing activities (562,781) (70,053)
-------------- --------------
Financing activities
Proceeds from issuance of common stock 42,345 243,123
Proceeds from Senior Notes offering 65,000 -
Debt issue costs paid (10,819) -
-------------- --------------
Net cash provided by financing activities 96,526 243,123
-------------- --------------
(Decrease) increase in cash and cash
equivalents (515,311) 173,043
Cash at cash equivalents, beginning of
period 733,896 -
-------------- --------------
Cash and cash equivalents, end of period $ 218,585$ 173,043
============== ==============
Scorpio Bulkers Inc. and Subsidiaries
Other Operating Data (unaudited)
(Dollars in Thousands, Except Per Day Data)
Period from
March 20,
Three Months Three Months Nine Months 2013 (date of
Ended Ended Ended inception) to
September 30, September 30, September 30, September 30,
2014 2013 2014 2013
------------- ------------- ------------- -------------
Time Charter
Equivalent Revenue
(1):
Vessel revenue $ 12,608 $ - $ 31,255 $ -
Voyage expenses 238 - 3,418 -
------------- ------------- ------------- -------------
Time charter
equivalent revenue $ 12,370 $ - $ 27,837 $ -
============= ============= ============= =============
Time charter
equivalent revenue
attributable to:
Kamsarmax $ 9,459 $ - $ 21,486 $ -
Ultramax 2,911 - 6,351 -
------------- ------------- ------------- -------------
$ 12,370 $ - $ 27,837 $ -
============= ============= ============= =============
Revenue days (1):
Kamsarmax 1,397 - 2,957 -
Ultramax 385 - 720 -
------------- ------------- ------------- -------------
Combined 1,782 - 3,677 -
============= ============= ============= =============
TCE per revenue day
(1):
Kamsarmax $ 6,771 $ - $ 7,266 $ -
Ultramax $ 7,561 $ - $ 8,816 $ -
Combined $ 6,941 $ - $ 7,570 $ -
(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 October 28, 2014
Capesize Vessels
Expected
Vessel Name Delivery DWT Shipyard
(1)
----------------------------------- ---------- ---------- ---------------
1 Hull H1309 - TBN SBI Puro Q1-15 180,000 Waigaoqiao
2 Hull H1310 - TBN SBI Valrico Q2-15 180,000 Waigaoqiao
3 Hull H1311 - TBN SBI Maduro Q3-15 180,000 Waigaoqiao
4 Hull H1364 - TBN SBI Belicoso Q3-15 180,000 Waigaoqiao
5 Hull H1365 - TBN SBI Corona Q1-16 180,000 Waigaoqiao
6 Hull H1366 - TBN SBI Diadema Q1-16 180,000 Waigaoqiao
7 Hull H1367 - TBN SBI Estupendo Q2-16 180,000 Waigaoqiao
8 Hull S1205 - TBN SBI Camacho Q2-15 180,000 Sungdong
9 Hull S1206 - TBN SBI Montesino Q2-15 180,000 Sungdong
10 Hull S1211 - TBN SBI Magnum Q3-15 180,000 Sungdong
11 Hull S1212 - TBN SBI Montecristo Q3-15 180,000 Sungdong
12 Hull S1213 - TBN SBI Aroma Q3-15 180,000 Sungdong
13 Hull S1214 - TBN SBI Cohiba Q4-15 180,000 Sungdong
14 Hull S1215 - TBN SBI Habano Q4-15 180,000 Sungdong
15 Hull S1216 - TBN SBI Lonsdale Q1-16 180,000 Sungdong
16 Hull S1217 - TBN SBI Partagas Q1-16 180,000 Sungdong
17 Hull S1218 - TBN SBI Parejo Q2-16 180,000 Sungdong
18 Hull S1219 - TBN SBI Toro Q2-16 180,000 Sungdong
19 Hull S1220 - TBN SBI Tuscamina Q2-16 180,000 Sungdong
20 Hull H1059 - TBN SBI Churchill Q4-15 180,000 Daewoo
21 Hull H1060 - TBN SBI Perfecto Q4-15 180,000 Daewoo
22 Hull H1061 - TBN SBI Presidente Q1-16 180,000 Daewoo
23 Hull H1062 - TBN SBI Panatela Q1-16 180,000 Daewoo
24 Hull H1063 - TBN SBI Robusto Q2-16 180,000 Daewoo
25 Hull HN1058 - TBN SBI Behike Q3-15 180,000 Daehan
26 Hull HN1059 - TBN SBI Monterrey Q4-15 180,000 Daehan
27 Hull HN1060 - TBN SBI Macanudo Q4-15 180,000 Daehan
28 Hull HN1061 - TBN SBI Cuaba Q1-16 180,000 Daehan
----------
Capesize NB DWT 5,040,000
Kamsarmax Vessels
Expected
Vessel Name Delivery DWT Shipyard
(1)
----------------------------------- ---------- ---------- ---------------
1 Hull S1680 - TBN SBI Samba Q1-15 84,000 Imabari
2 Hull S1681 - TBN SBI Rumba Q3-15 84,000 Imabari
3 Hull 1090 - TBN SBI Electra Q3-15 82,000 Yangzijiang
4 Hull 1091 - TBN SBI Flamenco Q3-15 82,000 Yangzijiang
5 Hull 1092 - TBN SBI Rock Q4-15 82,000 Yangzijiang
6 Hull 1093 - TBN SBI Twist Q1-16 82,000 Yangzijiang
7 Hull SS164 - TBN SBI Salsa Q3-15 81,600 Tsuneishi
8 Hull SS179 - TBN SBI Merengue Q1-16 81,600 Tsuneishi
9 Hull S1228 - TBN SBI Capoeira Q1-15 82,000 Hudong
10 Hull S1722A - TBN SBI Conga Q2-15 82,000 Hudong
11 Hull S1723A - TBN SBI Bolero Q3-15 82,000 Hudong
12 Hull S1229 - TBN SBI Carioca Q2-15 82,000 Hudong
13 Hull S1724A - TBN SBI Sousta Q3-15 82,000 Hudong
14 Hull S1725A - TBN SBI Reggae Q4-16 82,000 Hudong
15 Hull S1726A - TBN SBI Zumba Q1-16 82,000 Hudong
16 Hull S1231 - TBN SBI Macarena Q1-16 82,000 Hudong
17 Hull S1735A - TBN SBI Parapara Q1-16 82,000 Hudong
18 Hull S1736A - TBN SBI Mazurka Q2-16 82,000 Hudong
19 Hull S1230 - TBN SBI Lambada Q3-15 82,000 Hudong
20 Hull S1232 - TBN SBI Swing Q2-16 82,000 Hudong
21 Hull S1233 - TBN SBI Jive Q2-16 82,000 Hudong
----------
Kamsarmax NB DWT 1,725,200
Ultramax Vessels
Expected
Vessel Name Delivery
(1) DWT Shipyard
----------------------------------- ---------- ---------- ---------------
1 Hull 1907 - TBN SBI Hera Q2-16 60,200 Mitsui
2 Hull 1906 - TBN SBI Zeus Q2-16 60,200 Mitsui
3 Hull 1911 - TBN SBI Poseidon Q3-16 60,200 Mitsui
4 Hull 1912 - TBN SBI Apollo Q3-16 60,200 Mitsui
5 Hull S870 - TBN SBI Echo Q3-15 61,000 Imabari
6 Hull S871 - TBN SBI Tango Q3-15 61,000 Imabari
7 Hull S-A098 - TBN SBI Achilles Q2-16 61,000 Imabari
8 Hull S-A089 - TBN SBI Cronos Q4-15 61,000 Imabari
9 Hull S-A090 - TBN SBI Hermes Q1-16 61,000 Imabari
10 Hull NE180 - TBN SBI Bravo Q1-15 61,000 Nacks
11 Hull NE181 - TBN SBI Antares Q1-15 61,000 Nacks
12 Hull NE182 - TBN SBI Maia Q3-15 61,000 Nacks
13 Hull NE183 - TBN SBI Hydra Q3-15 61,000 Nacks
14 Hull NE194 - TBN SBI Hyperion Q2-16 61,000 Nacks
15 Hull NE195 - TBN SBI Tethys Q2-16 61,000 Nacks
16 Hull DE018 - TBN SBI Leo Q1-15 61,000 Dacks
17 Hull DE019 - TBN SBI Lyra Q2-15 61,000 Dacks
18 Hull DE020 - TBN SBI Subaru Q2-15 61,000 Dacks
19 Hull DE021 - TBN SBI Ursa Q3-15 61,000 Dacks
20 Hull CX0610 - TBN SBI Athena Q1-15 64,000 Chengxi
21 Hull CX0651 - TBN SBI Pegasus Q3-15 64,000 Chengxi
22 Hull CX0652 - TBN SBI Orion Q4-15 64,000 Chengxi
23 Hull CX0612 - TBN SBI Thalia Q4-15 64,000 Chengxi
24 Hull CX0653 - TBN SBI Hercules Q4-15 64,000 Chengxi
25 Hull CX0627 - TBN SBI Perseus Q1-16 64,000 Chengxi
26 Hull CX0654 - TBN SBI Kratos Q1-16 64,000 Chengxi
27 Hull CX0655 - TBN SBI Samson Q2-16 64,000 Chengxi
28 Hull CX0613 - TBN SBI Phoebe Q3-16 64,000 Chengxi
29 Hull CX0656 - TBN SBI Phoenix Q3-16 64,000 Chengxi
----------
Ultramax NB DWT 1,795,800
----------
Total Newbuild DWT 8,561,000
==========
As used in this earnings release "Dacks" refers to Dalian COSCO KHI Ship
Engineering Co. Ltd., "Daehan" refers to Daehan Shipbuilding Co., Ltd.,
"Daewoo" refers to Daewoo Mangalia Heavy Industries S.A.,"Chengxi" refers to
Chengxi Shipyard Co., Ltd., "Hudong" refers to Hudong-Zhonghua Shipbuilding
(Group) Co., Inc., "Imabari" refers to Imabari Shipbuilding Co. Ltd.,
"Mitsui" refers to Mitsui Engineering & Shipbuilding Co. Ltd., "Nacks"
refers to Nantong COSCO KHI Ship Engineering Co., Ltd., "Sungdong" refers to
Sungdong Shipbuilding & Marine Engineering Co., Ltd., "Tsuneishi" refers to
Tsuneishi Group (Zhoushan) Shipbuilding Inc., "Waigaoqiao" refers to
Shanghai Waigaoqiao Shipbuilding Co., Ltd., and "Yangzijiang" refers to
Jiangsu Yangzijiang Shipbuilding Co. Ltd.
(1) Expected delivery date relates to quarter during which each vessel is
currently expected to be delivered from the shipyard.
Owned vessels
Vessel Name Year Built DWT Vessel Type
------------------- ------------------ ------------------ ------------------
SBI Cakewalk 2014 82,000 Kamsarmax
SBI Charleston 2014 82,000 Kamsarmax
------------------
Total DWT 164,000
Time chartered-in vessels
The Company has time chartered-in 24 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 2012 98,700 China $13,000 15-Sep-16 (1)
Post-Panamax 2010 93,000 China $13,250 23-Oct-14 (2)
Post-Panamax 2011 93,000 China $13,500 24-Oct-14 (3)
Post-Panamax 2009 93,000 China See Note (4) 9-May-15 (4)
Post-Panamax 2011 93,000 China $9,500 11-Aug-15 (5)
Kamsarmax 2014 82,500 South Korea $12,000 23-Jul-15 (6)
Kamsarmax 2009 82,500 Japan $14,500 8-Feb-15 (7)
Kamsarmax 2012 82,000 South Korea $15,500 23-Jul-17 (8)
Kamsarmax 2011 81,900 South Korea $12,750 3-Apr-15 (9)
Kamsarmax 2012 81,500 South Korea $14,500 7-Dec-14 (10)
Kamsarmax 2011 81,500 South Korea $15,000 15-Jan-16 (11)
Kamsarmax 2012 81,000 South Korea $15,000 10-Feb-15 (12)
Kamsarmax 2012 79,500 China $14,000 23-Jan-15 (13)
Panamax 2004 77,500 China $14,000 3-Jan-17 (14)
Panamax 2014 77,000 Japan $16,000 4-Mar-15 (15)
Panamax 2014 76,000 China See Note (16) 19-Jun-15 (16)
Panamax 2009 76,500 Japan $14,000 1-Dec-14 (17)
Panamax 2007 75,500 South Korea $13,750 14-Feb-15 (18)
Ultramax 2010 61,000 Japan $14,200 1-Apr-17 (19)
Supramax 2010 58,000 China $14,250 12-Dec-16 (20)
Supramax 2011 58,000 China $13,750 18-Jan-15 (21)
Supramax 2008 58,000 China $12,250 13-Jun-16 (22)
Supramax 2015 55,000 Japan $14,000 30-Jun-18 (23)
Handymax 2002 48,500 Japan $12,000 31-Jan-17 (24)
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Total TC DWT 1,844,100
(1) This vessel has been time chartered-in for 21 to 25 months at the
Company's option at $13,000 per day. The Company has the option to
extend this time charter for one year at $14,000 per day. This vessel is
expected to be delivered December 2014.
(2) 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.
(3) 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.
(4) 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.
(5) This vessel has been time chartered-in for 11 to 13 months at the
Company's option at $9,500 per day. The Company has the option to extend
this time charter for one year at $11,500 per day. The vessel was
delivered on September 11, 2014.
(6) This vessel has been time chartered-in for 11 to 14 months at the
Company's option at $12,000 per day. The Company has the option to
extend this time charter for one year. The vessel was delivered on
August 22, 2014.
(7) 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.
(8) 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.
(9) 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.
(10)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.
(11)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.
(12)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.
(13)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.
(14)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.
(15)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.
(16)This vessel has been time chartered-in for 10 to 13 months at Company's
option at $5,000 per day for the first 40 days and $10,000 thereafter.
The Company has the option to extend the charter for one year at $12,000
per day. The vessel was delivered on August 10, 2014.
(17)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.
(18)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.
(19)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.
(20)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.
(21)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.
(22)This vessel has been time chartered-in for 21 to 25 months at the
Company's option at $12,250 per day. The Company has the option to
extend this time charter for one year at $13,000 per day. The vessel was
delivered on September 13, 2014.
(23)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.
(24)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. currently owns two Kamsarmax vessels, time charters-in 24 dry bulk vessels (one Handymax, one Ultramax, four Supramax, five Panamax, eight Kamsarmax and five Post-Panamax vessels) and has contracted for 78 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels, 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,” “intend,” “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.
