UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of July 2018

Commission File Number: 001-36231
 

SCORPIO BULKERS INC.
(Translation of registrant's name into English)
 

9, Boulevard Charles III, Monaco 98000
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x   Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o.

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o.

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

























Attached as Exhibit 99.1 is a copy of the press release of Scorpio Bulkers Inc., dated July 13, 2018, announcing the date of first quarter 2018 earnings release.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company's registration statement on Form F-3 (File No. 333-217445), the Company's registration statement on Form F-3 (File No. 333-221441), the Company's registration statement on Form F-3 (File No. 333-222013) and the Company's registration statement on Form F-3 (File No. 333-222448).








SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
                    
 
 
 SCORPIO BULKERS INC.
 
 
(registrant)
 
 
 
 
 
 
Dated:
July 24, 2018
By: /s/ Hugh Baker
 
 
Hugh Baker
 
 
Chief Financial Officer
 
 
 



Exhibit
Exhibit 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12366938&doc=3



Scorpio Bulkers Inc. Announces Financial Results for the Second Quarter of 2018 and Declares a Quarterly Dividend
MONACO - July 23, 2018 (GLOBE NEWSWIRE) - Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers”, or the “Company”), today reported its results for the three and six months ended June 30, 2018.
The Company also announced today that its Board of Directors has declared a quarterly cash dividend of $0.02 per share on the Company’s common stock.
Results for the Three and Six Months Ended June 30, 2018 and 2017
For the second quarter of 2018, the Company’s GAAP net income was $0.8 million, or $0.01 per diluted share. For the same period in 2017, the Company’s GAAP net loss was $13.4 million, or $0.19 loss per diluted share. Total vessel revenues for the second quarter of 2018 were $60.6 million, compared to $37.7 million for the same period in 2017. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the second quarter of 2018 and 2017 were $28.1 million and $10.8 million, respectively (see Non-GAAP Financial Measures below).
For the six months ended June 30, 2018, the Company’s GAAP net loss was $5.0 million or $0.07 loss per diluted share. For the same period in 2017, the Company’s GAAP net loss was $48.0 million, or $0.67 loss per diluted share. Total vessel revenues for the first half of 2018 were $114.9 million, compared to $72.5 million for the same period in 2017. EBITDA for the six months ended June 30, 2018 and 2017 were $48.4 million and a loss of less than $0.1 million, respectively (see Non-GAAP Financial Measures below).
While the first half of 2018 included no non-GAAP adjustments to net income, the Company’s first half of 2017 net income included a loss/write-off of vessels and assets held for sale of $17.7 million and the write-off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. Excluding these items, the Company’s first half of 2017 adjusted net loss was $29.8 million, or $0.41 adjusted loss per diluted share. Adjusted EBITDA for the first half of 2017 was $17.7 million (see Non-GAAP Financial Measures below).
TCE Revenue
TCE Revenue Earned during the Second Quarter of 2018

Our Kamsarmax fleet earned $12,823 per day
Our Ultramax fleet earned $11,569 per day





Voyages Fixed thus far for the Third Quarter of 2018
Kamsarmax fleet: approximately $13,974 per day for 47% of the days
Ultramax fleet: approximately $10,963 per day for 46% of the days
Cash and Cash Equivalents
As of July 20, 2018, the Company had approximately $80.5 million in cash and cash equivalents.
Recent Significant Events
Dividend
In the second quarter of 2018, the Company’s Board of Directors declared and the Company paid a quarterly cash dividend of $0.02 per share totaling approximately $1.5 million.
On July 23, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per share, payable on or about August 31, 2018, to all shareholders of record as of August 15, 2018. As of July 23, 2018, 75,960,341 shares were outstanding.
Newbuilding Vessel Delivery
On June 28, 2018, the Company took delivery of the SBI Lynx, a Kamsarmax vessel, from Jiangsu Yangzijiang Shipbuilding Co. Ltd.
Debt
$30.0 Million Credit Facility
In June 2018, the Company received a commitment for a loan facility of up to $30.0 million from ING Bank N.V. to refinance two of the Company’s Kamsarmax bulk carriers (SBI Zumba and SBI Parapara). The loan facility has a final maturity date of five years from drawdown date and bears interest at LIBOR plus a margin of 2.20% per annum. This loan facility increases the Company’s liquidity by approximately $8.0 million after repayment of the vessels’ existing debt. The terms and conditions are similar to those set forth in the Company's existing credit facilities and the loan facility is subject to customary conditions precedent and the execution of definitive documentation.

$19.0 Million Lease Financing - SBI Echo
On July 18, 2018, the Company closed a previously announced financing transaction with an unaffiliated third party involving the sale and leaseback of the SBI Echo, a 2015 Japanese built Ultramax vessel, for consideration of $19.0 million. As part of the transaction, the Company will make payments of $5,400 per day under a five-year bareboat charter agreement with the buyer. If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at the then prevailing swap rates would have been LIBOR + 1.97% per annum.






The transaction also provides the Company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement. This transaction, which is being treated as a financial lease for accounting purposes beginning in the third quarter of 2018, increased the Company’s liquidity by approximately $7.9 million after repayment of the vessel’s existing loan.

$19.0 Million Lease Financing - SBI Tango
On July 18, 2018, the Company closed a previously announced financing transaction with an unaffiliated third party involving the sale and leaseback of the SBI Tango, a 2015 Japanese built Ultramax vessel, for consideration of $19.0 million. As part of the transaction, the Company will make payments of $5,400 per day under a five-year bareboat charter agreement with the buyer. If converted to floating interest rates, based on the expected weighted average life of the transaction, the equivalent cost of financing at the then prevailing swap rates would have been LIBOR + 1.73% per annum.

The transaction also provides the Company with options to repurchase the vessel beginning on the third anniversary of the sale until the end of the bareboat charter agreement. This transaction, which is being treated as a financial lease for accounting purposes beginning in the third quarter of 2018, increased the Company’s liquidity by approximately $10.3 million after repayment of the vessel’s existing loan.

Debt Overview

During the second quarter of 2018, the Company drew down the entire $12.8 million available to it under the $12.8 Million Credit Facility, for which the SBI Lynx serves as collateral.

The Company’s outstanding debt balances, gross of unamortized deferred financing costs as of June 30, 2018 and July 20, 2018, are as follows (dollars in thousands):
 
 
As of June 30, 2018
 
As of July 20, 2018
Credit Facility
 
Amount Outstanding
 
Amount Outstanding
 
Amount Committed
Senior Notes
 
$
73,625
 
 
$
73,625
 
 
$
0
 
$409 Million Credit Facility (1)(2)
 
169,248
 
 
158,556
 
 
0
 
$330 Million Credit Facility
 
235,617
 
 
235,617
 
 
0
 
$42 Million Credit Facility (3)
 
22,354
 
 
14,106
 
 
0
 
$67.5 Million Credit Facility
 
38,456
 
 
38,244
 
 
0
 
$12.5 Million Credit Facility
 
9,792
 
 
9,792
 
 
0
 
$27.3 Million Credit Facility
 
17,825
 
 
17,825
 
 
0
 
$85.5 Million Credit Facility
 
82,236
 
 
82,236
 
 
0
 
$38.7 Million Credit Facility
 
36,900
 
 
36,900
 
 
 
$19.6 Million Lease Financing
 
18,687
 
 
18,687
 
 
0
 
$12.8 Million Credit Facility
 
12,750
 
 
12,750
 
 
0
 
$30.0 Million Credit Facility *
 
0
 
 
0
 
 
29,975
 
$19.0 Million Lease Financing - SBI Tango
 
0
 
 
18,910
 
 
0
 
$19.0 Million Lease Financing - SBI Echo
 
0
 
 
18,915
 
 
0
 
Total
 
$
717,490
 
 
$
736,163
 
 
$
29,975
 





(1) $10.7 million repaid upon the drawdown of the $19.0 Million Lease Financing - SBI Echo
(2) $22.0 million to be repaid upon the drawdown of the $30.0 Million Credit Facility
(3) $8.2 million repaid upon the drawdown of the $19.0 Million Lease Financing - SBI Tango
* Reflects the maximum loan amount available on undrawn facility.
The Company’s projected quarterly debt repayments on our bank loans and senior notes and bareboat charter payments on our finance leases through 2019 are as follows (dollars in thousands):
 
 
Principal on Bank Loans and Senior Notes
Finance Lease
 
Total
Q3 2018 (1)
 
33,077
 
1,150
34,227
 
 
Q4 2018
 
11,829
 
1,478
 
 
13,307

 
Q1 2019
 
11,119
 
1,478
 
12,597

 
Q2 2019
 
11,161
 
1,478
 
12,639

 
Q3 2019 (2)
 
84,794
 
1,478
 
86,272

 
Q4 2019
 
12,683
 
1,478
 
14,161

 
Total
 
$164,663
 
$8,540
 
$173,203
(1)
Relates to payments expected to be made from July 21, 2018 to September 30, 2018 including $22.0 million to be repaid upon the drawdown of the $30.0 Million Credit Facility.
(2)
Includes $73.6 million repayment of Senior Notes due at maturity.
Financial Results for the Three Months Ended June 30, 2018 Compared to the Three Months Ended June 30, 2017
For the second quarter of 2018, the Company’s GAAP net income was $0.8 million, or $0.01 per diluted share. For the same period in 2017, the Company’s GAAP net loss was $13.4 million, or $0.19 loss per diluted share. EBITDA for the second quarters of 2018 and 2017 were $28.1 million and $10.8 million, respectively (see Non-GAAP Financial Measures).
Total vessel revenues for the second quarter of 2018 were $60.6 million, an increase of $22.9 million from $37.7 million in the second quarter of 2017. Our TCE revenue (see Non-GAAP Financial Measures) for the second quarter of 2018 was $60.5 million, an increase of $22.9 million from the second quarter of 2017.
Total operating expenses for the second quarter of 2018 were $48.6 million compared to $42.5 million in the second quarter of 2017. The quarter over quarter increase relates to increases in vessel operating expenses and depreciation due to the increase in our fleet size.





Ultramax Operations
 
Three Months Ended June 30,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
39,727

 
 
$
21,285

 
 
$
18,442
 
 
87
 
Voyage expenses
56
 
 
 
17
 
 
 
39
 
 
229
 
TCE Revenue
$
39,671
 
$
21,268
 
$
18,403
 
87
 
Operating expenses:
 
 
 
 
 
 
 
Vessel operating costs
18,016
 
 
 
12,311
 
 
 
5,705
 
 
46
 
Charterhire expense
921
 
 
 
 
 
 
921
 
 
NA
 
Vessel depreciation
9,297
 
 
 
7,437
 
 
 
1,860
 
 
25
 
General and administrative expense
1,073
 
 
 
826
 
 
 
247
 
 
30
 
Total operating expenses
$
29,307

 
 
$
20,574

 
 
$
8,733
 
 
42
 
Operating income
$
10,364

 
 
$
694

 
 
$
9,670
 
 
1,393
 
Vessel revenue for our Ultramax Operations increased to $39.7 million for the second quarter of 2018 from $21.3 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Ultramax Operations was $39.7 million for the second quarter of 2018 and was associated with a day-weighted average of 37 vessels owned and one time chartered-in vessel, compared to $21.3 million for the prior year period, which was associated with a day-weighted average of 28 vessels owned. TCE revenue per day was $11,569 and $8,360 for the second quarters of 2018 and 2017, respectively.
Dollars in thousands
Three Months Ended June 30,
 
 
 
 
Ultramax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
39,671
 
 
$
21,268
 
 
$
18,403
 
 
87
 
TCE Revenue / Day
$
11,569
 
 
$
8,360
 
 
$
3,209
 
 
38
 
Revenue Days
3,429
 
 
2,544
 
 
885
 
 
35
 
Our Ultramax Operations vessel operating costs were $18.0 million for the second quarter of 2018, including approximately $1.2 million of takeover costs and contingency expenses, and related to 37 vessels owned on average during the period. Vessel operating costs for the prior year period were $12.3 million and related to 28 vessels owned on average during the period. Daily operating costs excluding takeover costs and contingency expenses for the second quarters of 2018 and 2017 were $5,003 and $4,772, respectively. Sequentially, daily operating costs increased from $4,909 in the first quarter of 2018. The increase versus both periods is due primarily to the timing of store purchases as we make purchases in bulk to reduce overall cost.
Charterhire expense for our Ultramax Operations was approximately $0.9 million for the second quarter of 2018, and relates to the vessel we have time chartered-in at $10,125 per day. During the second quarter of 2017 we did not charter-in any Ultramax vessels.
Ultramax Operations depreciation increased to $9.3 million in the second quarter of 2018 from $7.4 million in the prior year period, reflecting the increase in our weighted average vessels owned to 37 from 28.





General and administrative expense for our Ultramax Operations was $1.1 million for the second quarter of 2018 and $0.8 million in the prior year period. General and administrative expenses consist primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions. The increase versus the prior year period reflects the growth of our fleet.
Kamsarmax Operations
 
Three Months Ended June 30,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
20,887

 
 
$
16,457

 
 
$
4,430

 
 
27

 
Voyage expenses
36
 
 
 
145
 
 
 
(109
)
 
 
(75
)
 
TCE Revenue
$
20,851

 
 
$
16,312

 
 
$
4,539

 
 
28

 
Operating expenses:
 
 
 
 
 
 
 
Vessel operating costs
8,055
 
 
 
8,755
 
 
 
(700
)
 
 
(8
)
 
Charterhire expense
121
 
 
 
1,675
 
 
 
(1,554
)
 
 
(93
)
 
Vessel depreciation
4,730
 
 
 
4,580
 
 
 
150
 
 
 
3

 
General and administrative expense
467
 
 
 
542
 
 
 
(75
)
 
 
(14
)
 
Total operating expenses
$
13,373

 
 
$
15,552

 
 
$
(2,179
)
 
 
(14
)
 
Operating income
$
7,478

 
 
$
760

 
 
$
6,718

 
 
884

 
Vessel revenue for our Kamsarmax Operations increased to $20.9 million in the second quarter of 2018 from $16.5 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Kamsarmax Operations was $20.9 million for the second quarter of 2018 and was associated with a day-weighted average of 18 vessels owned, compared to $16.3 million for the prior year period, which was associated with a day-weighted average of 19 vessels owned and one vessel time chartered-in. TCE revenue per day was $12,823 and $9,273 for the second quarters of 2018 and 2017, respectively.
Dollars in thousands
Three Months Ended June 30,
 
 
 
 
Kamsarmax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
20,851

 
 
$
16,312

 
 
$
4,539

 
 
28

 
TCE Revenue / Day
$
12,823

 
 
$
9,273

 
 
$
3,550

 
 
38

 
Revenue Days
1,626
 
 
 
1,759
 
 
 
(133
)
 
 
(8
)
 
Kamsarmax Operations vessel operating costs were $8.1 million for the second quarter of 2018, including approximately $0.2 million of takeover costs and contingency expenses, related to 18 vessels owned, on average during the period. Vessel operating costs for the prior year period were $8.8 million and related to 19 vessels owned, on average during the period. Daily operating costs excluding takeover costs and contingency expenses for the second quarters of 2018 and 2017 were $4,801 and $4,989, respectively. Sequentially, daily operating costs decreased from $5,172 in the first quarter of 2018, due in large part to the timing of spare and store purchases.
While we do not time charter-in any Kamsarmax vessels, we have a profit and loss sharing agreement with a third party and during the second quarter of 2018, our share of the loss on that vessel was $0.1 million. During the prior year period, a Kamsarmax vessel was time chartered-in at a cost of $1.7 million.





Kamsarmax Operations depreciation remained relatively flat at $4.7 million in the second quarter 2018 compared to $4.6 million in the prior year period. Our weighted average vessels owned were 18 and 19, in the second quarter of 2018 and 2017, respectively.
General and administrative expense for our Kamsarmax Operations was $0.5 million for both the second quarters of 2018 and 2017. The expense consists primarily of administrative services fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions.
Corporate
Certain general and administrative expenses we incur and all of our financial expenses are not attributable to a specific segment. Accordingly, these costs are not allocated to any of our segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were $5.8 million and $6.2 million in the second quarters of 2018 and 2017, respectively. The quarter over quarter decline is due to reductions in restricted stock amortization and legal fees.
Financial expenses, net increased to $11.2 million in the second quarter of 2018 from $8.7 million in the prior year period due to an increase in the LIBOR rate and higher levels of debt related to the increase in overall fleet size.
Financial Results for the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017
For the first half of 2018, the Company’s GAAP net loss was $5.0 million or $0.07 loss per diluted share. For the same period in 2017, the Company’s GAAP net loss was $48.0 million, or $0.67 loss per diluted share. EBITDA for the first half of 2018 and 2017 were $48.4 million and a loss of less than $0.1 million, respectively (see Non-GAAP Financial Measures). Excluding the loss/write-off of vessels and assets held for sale of $17.7 million and the write-off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million, the Company’s adjusted net loss for the first half of 2017 was $29.8 million, or $0.41 adjusted loss per diluted share (see Non-GAAP Financial Measures below). There were no such non-GAAP adjustments to the Company’s first half of 2018 net income. Adjusted EBITDA for the first half of 2017 was $17.7 million (see Non-GAAP Financial Measures below).
Total vessel revenues for the first half of 2018 were $114.9 million, an increase of $42.4 million from $72.5 million in the first half of 2017. Our TCE revenue (see Non-GAAP Financial Measures) for the first half of 2018 was $114.6 million, an increase of $42.4 million from the first half of 2017.
Total operating expenses for the first half of 2018 were $98.3 million compared to $103.4 million in the first half of 2017. The year over year decrease relates in part to the loss/write-off of vessels and assets held for sale of $17.7 million recorded in the first half of 2017, partially offset by increases in compensation as well as vessel operating costs and depreciation resulting from the increase in the size of our fleet.





Ultramax Operations
 
Six Months Ended June 30,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
73,056
 
$
41,045
 
$
32,011
 
 
78

 
Voyage expenses
184
 
66
 
118
 
 
179

 
TCE Revenue
$
72,872
 
$
40,979
 
$
31,893
 
 
78

 
Operating expenses:
 
 
 
 
 
 
 
Vessel operating costs
35,252
 
24,590
 
10,662
 
 
43

 
Charterhire expense
1,837
 
10
 
1,827
 
 
NA

 
Vessel depreciation
18,487
 
14,460
 
4,027
 
 
28

 
General and administrative expense
2,147
 
1,665
 
482
 
 
29

 
Total operating expenses
$
57,723
 
$
40,725
 
$
16,998
 
 
42

 
Operating income
$
15,149
 
$
254
 
$
14,895
 
 
NA

 
Vessel revenue for our Ultramax Operations increased to $73.1 million for the first half of 2018 from $41.0 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Ultramax Operations was $72.9 million for the first half of 2018 and was associated with a day-weighted average of 37 vessels owned and one time chartered-in vessel, compared to $41.0 million for the prior year period, which was associated with a day-weighted average of 28 vessels owned. TCE revenue per day was $10,666 and $8,297 for the six months ended June 30, 2018 and 2017, respectively.
Dollars in thousands
Six Months Ended June 30,
 
 
 
 
Ultramax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
72,872
 
 
$
40,979
 
 
$
31,893
 
 
78
 
TCE Revenue / Day
$
10,666
 
 
$
8,297
 
 
$
2,369
 
 
29
 
Revenue Days
6,832
 
 
4,939
 
 
1,893
 
 
38
 
Our Ultramax Operations vessel operating costs were $35.3 million for the first half of 2018, including approximately $2.0 million of takeover costs and contingency expenses, and related to 37 vessels owned on average during the period. Vessel operating costs for the prior year period were $24.6 million and related to 28 vessels owned on average during the period. Daily operating costs excluding takeover costs, contingency expenses and other non-operating expenses for the first half of 2018 and 2017 were $4,956 and $4,848, respectively. The increase is due to the timing of store purchases as we make bulk purchases in an effort to reduce the overall cost, as well as freight and forwarding expense.
Charterhire expense for our Ultramax Operations was approximately $1.8 million for the first half of 2018, and relates to the vessel we have time chartered-in at $10,125 per day. We did not charter-in any Ultramax vessels during the first half of 2017.
Ultramax Operations depreciation increased to $18.5 million in the first half of 2018 from $14.5 million in the prior year period reflecting the increase in our weighted average vessels owned to 37 from 28.





General and administrative expense for our Ultramax Operations was $2.1 million for the first half of 2018 and $1.7 million in the prior year period. General and administrative expenses consist primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions. The increase versus the prior year period reflects the growth of our fleet.
Kamsarmax Operations
 
Six Months Ended June 30,
 
 
 
 
Dollars in thousands
2018
 
2017
 
Change
 
% Change
TCE Revenue:
 
 
 
 
 
 
 
Vessel revenue
$
41,810

 
 
$
31,425

 
 
$
10,385

 
 
33

 
Voyage expenses
104
 
 
 
213
 
 
 
(109
)
 
 
(51
)
 
TCE Revenue
$
41,706

 
 
$
31,212

 
 
$
10,494

 
 
34

 
Operating expenses:
 
 
 
 
 
 
 
Vessel operating costs
16,625
 
 
 
18,394
 
 
 
(1,769
)
 
 
(10
)
 
Charterhire expense
210
 
 
 
3,636
 
 
 
(3,426
)
 
 
(94
)
 
Vessel depreciation
9,408
 
 
 
9,139
 
 
 
269
 
 
 
3

 
General and administrative expense
973
 
 
 
1,078
 
 
 
(105
)
 
 
(10
)
 
Loss / write down on assets held for sale
 
 
 
17,702
 
 
 
(17,702
)
 
 
(100
)
 
Total operating expenses
$
27,216

 
 
$
49,949

 
 
$
(22,733
)
 
 
(46
)
 
Operating income (loss)
$
14,490

 
 
$
(18,737
)
 
 
$
33,227

 
 
177

 
Vessel revenue for our Kamsarmax Operations increased to $41.8 million in the first half of 2018 from $31.4 million in the prior year period.
TCE revenue (see Non-GAAP Financial Measures) for our Kamsarmax Operations was $41.7 million for the first half of 2018 and was associated with a day-weighted average of 18 vessels owned, compared to $31.2 million for prior year period, which was associated with a day-weighted average of 19 vessels owned and one vessel time chartered-in. TCE revenue per day was $12,173 and $9,221 for the first half of 2018 and 2017, respectively.
Dollars in thousands
Six Months Ended June 30,
 
 
 
 
Kamsarmax Operations:
2018
 
2017
 
Change
 
% Change
TCE Revenue
$
41,706
 
 
$
31,212
 
 
$
10,494
 
 
34
 
TCE Revenue / Day
$
12,173
 
 
$
9,221
 
 
$
2,952
 
 
32
 
Revenue Days
3,426
 
 
3,385
 
 
41
 
 
1
 
Kamsarmax Operations vessel operating costs were $16.6 million for the first half of 2018, including approximately $0.4 million of takeover costs and contingency expenses, and related to 18 vessels owned on average during the period. Vessel operating costs for the prior year period were $18.4 million, and related to 19 vessels owned on average during the period. Daily operating costs excluding takeover costs, contingency expenses and other non-operating expenses for the first half of 2018 and 2017 were $4,985 and $5,092, respectively.
While we do not time charter-in any Kamsarmax vessels, we have a profit and loss sharing agreement with a third party and during the first half of 2018, our share of the loss on that vessel was $0.2 million. During the prior year period, a Kamsarmax vessel was time chartered-in at a cost of $3.6 million.





Kamsarmax Operations depreciation remained relatively flat at $9.4 million in the first half of 2018 compared to $9.1 million in the prior year period. Our weighted average vessels owned was 18 and 19, in the first half of 2018 and 2017, respectively.
General and administrative expense for our Kamsarmax Operations was $1.0 million and $1.1 million for the first halves of 2018 and 2017, respectively. The expense consists primarily of administrative services fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions.
During the first half of 2017, we recorded a write-down on assets held for sale of $17.7 million related to the sale of two Kamsarmax vessels to an unaffiliated third party.
Corporate
Certain general and administrative expenses we incur and all of our financial expenses are not attributable to a specific segment. Accordingly, these costs are not allocated to any of our segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were $13.1 million and $12.5 million in the first half of 2018 and 2017, respectively. The year over year increase is due to increases in compensation expense.
Financial expenses, net increased to $21.5 million in the first half of 2018 from $17.1 million in the prior year period due to an increase in the LIBOR rate and higher levels of debt related to the increase in overall fleet size.





Scorpio Bulkers Inc. and Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)


 
 
Unaudited
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
 
Vessel revenue
 
$
60,614

 
 
$
37,742

 
 
$
114,866

 
 
$
72,470

 
Operating expenses:
 
 
 
 
 
 
 
 
Voyage expenses
 
92
 
 
 
162
 
 
 
288
 
 
 
279
 
 
Vessel operating costs
 
26,071
 
 
 
21,066
 
 
 
51,877
 
 
 
42,867
 
 
Charterhire expense
 
1,042
 
 
 
1,675
 
 
 
2,047
 
 
 
3,646
 
 
Vessel depreciation
 
14,027
 
 
 
12,017
 
 
 
27,895
 
 
 
23,599
 
 
General and administrative expenses
 
7,333
 
 
 
7,556
 
 
 
16,240
 
 
 
15,284
 
 
Loss / write down on assets held for sale
 
 
 
 
 
 
 
 
 
 
17,702
 
 
Total operating expenses
 
48,565
 
 
 
42,476
 
 
 
98,347
 
 
 
103,377
 
 
Operating income (loss)
 
12,049
 
 
 
(4,734
)
 
 
16,519
 
 
 
(30,907
)
 
Other income (expense):
 
 
 
 
 
 
 
 
Interest income
 
215
 
 
 
353
 
 
 
429
 
 
 
615
 
 
Foreign exchange income (loss)
 
45
 
 
 
(92
)
 
 
(42
)
 
 
(186
)
 
Financial expense, net
 
(11,509
)
 
 
(8,945
)
 
 
(21,877
)
 
 
(17,504
)
 
Total other expense
 
(11,249
)
 
 
(8,684
)
 
 
(21,490
)
 
 
(17,075
)
 
Net income (loss)
 
$
800

 
 
$
(13,418
)
 
 
$
(4,971
)
 
 
$
(47,982
)
 
 
 
 
 
 
 
 
 
 
Income (loss) per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.01

 
 
$
(0.19
)
 
 
$
(0.07
)
 
 
$
(0.67
)
 
Diluted
 
$
0.01

 
 
$
(0.19
)
 
 
$
(0.07
)
 
 
$
(0.67
)
 
 
 
 
 
 
 
 
 
 
Basic weighted average number of common shares outstanding
 
72,494
 
 
 
71,804
 
 
 
72,598
 
 
 
71,770
 
 
Diluted weighted average number of common shares outstanding
 
74,718
 
 
 
71,804
 
 
 
72,598
 
 
 
71,770
 
 






Scorpio Bulkers Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)

 
 
Unaudited
 
 
 
 
June 30, 2018
 
December 31, 2017
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
54,776

 
 
$
68,535

 
Accounts receivable
 
6,980
 
 
 
7,933
 
 
Prepaid expenses and other current assets
 
6,890
 
 
 
6,087
 
 
Total current assets
 
68,646
 
 
 
82,555
 
 
Non-current assets
 
 
 
 
Vessels, net
 
1,507,485
 
 
 
1,534,782
 
 
Vessels under construction
 
26,770
 
 
 
6,710
 
 
Deferred financing costs, net
 
2,554
 
 
 
3,068
 
 
Other assets
 
15,395
 
 
 
16,295
 
 
Total non-current assets
 
1,552,204
 
 
 
1,560,855
 
 
Total assets
 
$
1,620,850

 
 
$
1,643,410

 
 
 
 
 
 
Liabilities and shareholders’ equity
 
 
 
 
Current liabilities
 
 
 
 
Bank loans, net
 
$
63,015

 
 
$
46,993

 
Capital lease obligation
 
1,169
 
 
 
1,144
 
 
Accounts payable and accrued expenses
 
11,664
 
 
 
10,453
 
 
Total current liabilities
 
75,848
 
 
 
58,590
 
 
Non-current liabilities
 
 
 
 
Bank loans, net
 
550,092
 
 
 
576,967
 
 
Capital lease obligation
 
17,158
 
 
 
17,747
 
 
Senior Notes, net
 
72,987
 
 
 
72,726
 
 
Total non-current liabilities
 
640,237
 
 
 
667,440
 
 
Total liabilities
 
716,085
 
 
 
726,030
 
 
Shareholders’ equity
 
 
 
 
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued or outstanding
 
-
 
 
 
-
 
 
Common stock, $0.01 par value per share; authorized 212,500,000 shares; issued and outstanding 75,960,341 and 74,902,364 shares as of June 30, 2018 and December 31, 2017, respectively
 
785
 
 
 
762
 
 
Paid-in capital
 
1,746,822
 
 
 
1,745,844
 
 
Common stock held in treasury, at cost; 2,635,413 and 1,465,448 shares at June 30, 2018 and December 31, 2017, respectively
 
(19,649
)
 
 
(11,004
)
 
Accumulated deficit
 
(823,193
)
 
 
(818,222
)
 
Total shareholders’ equity
 
904,765
 
 
 
917,380
 
 
Total liabilities and shareholders’ equity
 
$
1,620,850

 
 
$
1,643,410

 






Scorpio Bulkers Inc. and Subsidiaries
Statements of Cash Flows (unaudited)
(Amounts in thousands)

 
 
For the Six Months Ended June 30,
 
 
2018
 
2017
Operating activities
 
 
 
 
Net loss
 
$
(4,971
)
 
 
$
(47,982
)
 
Adjustment to reconcile net loss to net cash used by
 
 
 
 
operating activities:
 
 
 
 
Restricted stock amortization
 
4,064
 
 
 
7,473
 
 
Vessel depreciation
 
27,895
 
 
 
23,599
 
 
Amortization of deferred financing costs
 
2,965
 
 
 
2,767
 
 
Write-off of deferred financing costs
 
 
 
 
470
 
 
Loss / write-down on assets held for sale
 
 
 
 
16,471
 
 
Changes in operating assets and liabilities:
 
 
 
 
Increase (decrease) in accounts receivable
 
951
 
 
 
(1,038
)
 
Increase (decrease) in prepaid expenses and other assets
 
97
 
 
 
(272
)
 
Increase (decrease) in accounts payable and accrued expenses
 
1,212
 
 
 
(702
)
 
Net cash provided by operating activities
 
32,213
 
 
 
786
 
 
Investing activities
 
 
 
 
Proceeds from sale of assets held for sale
 
 
 
 
44,340
 
 
Payments for vessels and vessels under construction
 
(20,658
)
 
 
(23,428
)
 
Net cash (used in) provided by investing activities
 
(20,658
)
 
 
20,912
 
 
Financing activities
 
 
 
 
Proceeds from issuance of long-term debt
 
12,750
 
 
 
51,600
 
 
Repayments of long-term debt
 
(25,883
)
 
 
(25,710
)
 
Common stock repurchased
 
(8,645
)
 
 
 
 
Dividend paid
 
(3,062
)
 
 
 
 
Debt issue costs paid
 
(474
)
 
 
 
 
Net cash (used in) provided by financing activities
 
(25,314
)
 
 
25,890
 
 
(Decrease) increase in cash and cash equivalents
 
(13,759
)
 
 
47,588
 
 
Cash at cash equivalents, beginning of period
 
68,535
 
 
 
101,734
 
 
Cash and cash equivalents, end of period
 
$
54,776

 
 
$
149,322

 






Scorpio Bulkers Inc. and Subsidiaries
Other Operating Data (unaudited)


 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Time charter equivalent revenue ($000’s) (1):
 
 
 
 
 
 
 
 
Vessel revenue
 
$
60,614

 
 
$
37,742

 
 
$
114,866

 
 
$
72,470

 
Voyage expenses
 
(92
)
 
 
(162
)
 
 
(288
)
 
 
(279
)
 
Time charter equivalent revenue
 
$
60,522

 
 
$
37,580

 
 
$
114,578

 
 
$
72,191

 
Time charter equivalent revenue attributable to:
 
 
 
 
 
 
 
 
Kamsarmax
 
$
20,851

 
 
$
16,312

 
 
$
41,706

 
 
$
31,212

 
Ultramax
 
39,671
 
 
 
21,268
 
 
 
72,872
 
 
 
40,979
 
 
 
 
$
60,522

 
 
$
37,580

 
 
$
114,578

 
 
$
72,191

 
Revenue days:
 
 
 
 
 
 
 
 
Kamsarmax
 
1,626
 
 
 
1,759
 
 
 
3,426
 
 
 
3,385
 
 
Ultramax
 
3,429
 
 
 
2,544
 
 
 
6,832
 
 
 
4,939
 
 
Combined
 
5,055
 
 
 
4,303
 
 
 
10,258
 
 
 
8,324
 
 
TCE per revenue day (1):
 
 
 
 
 
 
 
 
Kamsarmax
 
$
12,823

 
 
$
9,273

 
 
$
12,173

 
 
$
9,221

 
Ultramax
 
$
11,569

 
 
$
8,360

 
 
$
10,666

 
 
$
8,297

 
Combined
 
$
11,973

 
 
$
8,733

 
 
$
11,170

 
 
$
8,673

 
(1)
We define Time Charter Equivalent (TCE) revenue as vessel 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.
We report TCE revenue, a non-GAAP financial measure, because (i) we believe it provides additional meaningful information in conjunction with vessel revenues and voyage expenses, the most directly comparable U.S.-GAAP measure, (ii) it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance, (iii) 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 bareboat charters) under which the vessels may be employed between the periods, and (iv) we believe that it presents useful information to investors. See Non-GAAP Financial Measures.




Fleet List as of July 20, 2018
Vessel Name
 
Year Built
 
 DWT
 
 Vessel Type
SBI Samba
 
2015
 
84,000
 
 
Kamsarmax
SBI Rumba
 
2015
 
84,000
 
 
Kamsarmax
SBI Capoeira
 
2015
 
82,000
 
 
Kamsarmax
SBI Electra
 
2015
 
82,000
 
 
Kamsarmax
SBI Carioca
 
2015
 
82,000
 
 
Kamsarmax
SBI Conga
 
2015
 
82,000
 
 
Kamsarmax
SBI Flamenco
 
2015
 
82,000
 
 
Kamsarmax





SBI Bolero
 
2015
 
82,000
 
 
Kamsarmax
SBI Sousta
 
2016
 
82,000
 
 
Kamsarmax
SBI Rock
 
2016
 
82,000
 
 
Kamsarmax
SBI Lambada
 
2016
 
82,000
 
 
Kamsarmax
SBI Reggae
 
2016
 
82,000
 
 
Kamsarmax
SBI Zumba
 
2016
 
82,000
 
 
Kamsarmax
SBI Macarena
 
2016
 
82,000
 
 
Kamsarmax
SBI Parapara
 
2017
 
82,000
 
 
Kamsarmax
SBI Mazurka
 
2017
 
82,000
 
 
Kamsarmax
SBI Swing
 
2017
 
82,000
 
 
Kamsarmax
SBI Jive
 
2017
 
82,000
 
 
Kamsarmax
SBI Lynx (1)
 
2018
 
82,000
 
 
Kamsarmax
Total Kamsarmax
 
 
 
1,562,000
 
 
 
 
 
 
 
 
 
 
SBI Antares
 
2015
 
61,000
 
 
Ultramax
SBI Athena
 
2015
 
64,000
 
 
Ultramax
SBI Bravo
 
2015
 
61,000
 
 
Ultramax
SBI Leo
 
2015
 
61,000
 
 
Ultramax
SBI Echo
 
2015
 
61,000
 
 
Ultramax
SBI Lyra
 
2015
 
61,000
 
 
Ultramax
SBI Tango
 
2015
 
61,000
 
 
Ultramax
SBI Maia
 
2015
 
61,000
 
 
Ultramax
SBI Hydra
 
2015
 
61,000
 
 
Ultramax
SBI Subaru
 
2015
 
61,000
 
 
Ultramax
SBI Pegasus
 
2015
 
64,000
 
 
Ultramax
SBI Ursa
 
2015
 
61,000
 
 
Ultramax
SBI Thalia
 
2015
 
64,000
 
 
Ultramax
SBI Cronos
 
2015
 
61,000
 
 
Ultramax
SBI Orion
 
2015
 
64,000
 
 
Ultramax
SBI Achilles
 
2016
 
61,000
 
 
Ultramax
SBI Hercules
 
2016
 
64,000
 
 
Ultramax
SBI Perseus
 
2016
 
64,000
 
 
Ultramax
SBI Hermes
 
2016
 
61,000
 
 
Ultramax
SBI Zeus
 
2016
 
60,200
 
 
Ultramax
SBI Hera
 
2016
 
60,200
 
 
Ultramax
SBI Hyperion
 
2016
 
61,000
 
 
Ultramax
SBI Tethys
 
2016
 
61,000
 
 
Ultramax
SBI Phoebe
 
2016
 
64,000
 
 
Ultramax
SBI Poseidon
 
2016
 
60,200
 
 
Ultramax
SBI Apollo
 
2016
 
60,200
 
 
Ultramax
SBI Samson
 
2017
 
64,000
 
 
Ultramax
SBI Phoenix
 
2017
 
64,000
 
 
Ultramax
SBI Gemini
 
2015
 
64,000
 
 
Ultramax
SBI Libra
 
2017
 
64,000
 
 
Ultramax
SBI Puma
 
2014
 
64,000
 
 
Ultramax
SBI Jaguar
 
2014
 
64,000
 
 
Ultramax
SBI Cougar
 
2015
 
64,000
 
 
Ultramax
SBI Aries
 
2015
 
64,000
 
 
Ultramax
SBI Taurus
 
2015
 
64,000
 
 
Ultramax
SBI Pisces
 
2016
 
64,000
 
 
Ultramax
SBI Virgo
 
2017
 
64,000
 
 
Ultramax





Total Ultramax
 
 
 
2,307,800
 
 
 
Total Owned or Finance Leased Vessels DWT
 
3,869,800
 
 
 

(1)
For accounting purposes, a vessel is considered a vessel under construction until it reaches the first port of load.
Time chartered-in vessels
The Company currently time charters-in one Ultramax vessel. The terms of the contract are summarized as follows:
Vessel Type
 
Year Built
 
DWT
 
Country of Build
 
Daily Base Rate
 
Earliest Expiry
Ultramax
 
2017
 
62,100
 
 
Japan
 
$
10,125
 
 
30-Sep-19
 
(1) 
Total TC DWT
 
 
 
62,100
 
 
 
 
 
 
 
 
 
(1)
This vessel is time chartered-in for 22 to 24 months at the Company’s option at $10,125 per day. The Company has the option to extend this time charter for one year at $10,885 per day. The vessel was delivered to the Company in September 2017.




Conference Call on Results:
A conference call to discuss the Company’s results will be held today, July 23, 2018, at 10:00 AM Eastern Daylight Time / 4:00 PM Central European Summer Time. Those wishing to listen to the call should dial 1 (866) 219-5268 (U.S.) or 1 (703) 736-7424 (International) at least 10 minutes prior to the start of the call to ensure connection. The conference participant passcode is 6755439.

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: https://edge.media-server.com/m6/p/who7avvy

About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities.  Scorpio Bulkers Inc. has an operating fleet of 57 vessels consisting of 56 wholly-owned or finance leased dry bulk vessels (including 19 Kamsarmax vessels and 37 Ultramax vessels), and one time chartered-in Ultramax vessel. The Company’s owned and finance leased fleet has a total carrying capacity of approximately 3.9 million dwt and all of the Company’s owned vessels have carrying capacities of greater than 60,000 dwt. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.











Non-GAAP Financial Measures
To supplement our financial information presented in accordance with accounting principles generally accepted in the U.S., (“GAAP”), management uses certain “non-GAAP financial measures” as such term is defined in Regulation G promulgated by the SEC. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in, or excluded from, the most directly comparable measure calculated and presented in accordance with GAAP. Management believes the presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations, and therefore a more complete understanding of factors affecting our business than GAAP measures alone. In addition, management believes the presentation of these matters is useful to investors for period-to-period comparison of results as the items may reflect certain unique and/or non-operating items such as asset sales, write-offs, contract termination costs or items outside of management’s control.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net loss and related per share amounts, as well as adjusted EBITDA and TCE Revenue are non-GAAP performance measures that we believe provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliations of EBITDA, adjusted net loss and related per share amounts, and adjusted EBITDA. Please see “Other Operating Data” for a reconciliation of TCE revenue.
EBITDA (unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
In thousands
2018
 
2017
 
2018
 
2017
Net income (loss)
$
800

 
 
$
(13,418
)
 
 
$
(4,971
)
 
 
$
(47,982
)
 
Add Back:
 
 
 
 
 
 
 
Net interest expense
9,811
 
 
 
7,185

 
 
18,483
 
 
 
13,652
 
 
Depreciation and amortization (1)
17,449
 
 
 
17,034

 
 
34,924
 
 
 
34,309
 
 
EBITDA
$
28,060

 
 
$
10,801

 
 
$
48,436

 
 
$
(21
)
 
(1) Includes depreciation, amortization of deferred financing costs and restricted stock amortization.
Adjusted net loss (unaudited)
 
 
Six Months Ended June 30,
In thousands, except per share data
 
2017
 
 
Amount
 
Per share
Net loss
 
$
(47,982
)
 
 
$
(0.67
)
 
Adjustments:
 
 
 
 
Loss / write down on assets held for sale
 
17,702
 
 
 
0.25
 
 
Write down of deferred financing cost
 
470
 
 
 
0.01
 
 
Total adjustments
 
$
18,172

 
 
$
0.26

 
Adjusted net loss
 
$
(29,810
)
 
 
$
(0.41
)
 






Adjusted EBITDA (unaudited)
 
 
Six Months Ended June 30,
In thousands
 
2017
Net loss
 
$
(47,982
)
 
Impact of adjustments
 
18,172
 
 
Adjusted net loss
 
(29,810
)
 
Add Back:
 
 
Net interest expense
 
13,652
 
 
Depreciation and amortization (1)
 
33,839
 
 
Adjusted EBITDA
 
$
17,681

 
(1) Includes depreciation, amortization of deferred financing costs and restricted stock amortization.

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)