• Follow Us On Our Preferred Social Media Platform:

Scorpio Bulkers to exit dry bulk sector in favour of offshore renewables business in 2021

22 Dec 2020

New York-listed dry bulk commodity transportation firm Scorpio Bulkers Inc. on Sunday (20 December) said following the recent sales of the company’s vessels, its Board of Directors has authorised the company, as part of its transition to a sustainable future, to sell its remaining dry bulk vessels and exit the dry bulk sector during 2021.

As a result of this decision, Scorpio Bulkers said it expects to record a write-down ranging from USD 475.0 million to USD 500.0 million on vessels sold and classified as held for sale.

This estimated write-down includes non-cash charges of USD 425 million to USD 440 million to reflect the current fair market value of the fleet and USD 50 million to USD 60 million of estimated cash charges, which include USD 34 million to USD 36 million for the termination of various vessel-related agreements, as well as other selling costs.

The company noted it will also write-off approximately USD 10 million of deferred financing costs as outstanding debt is repaid.

Pursuant to the Master Agreement previously filed with the SEC governing the commercial and technical management of its vessels, Scorpio Bulkers has submitted a notice of termination to its managers, effectively ending its relationship with Scorpio Commercial Management s.a.m. and Scorpio Ship Management s.a.m.

To reflect its transition, the Board of Directors has also resolved to seek shareholders’ approval to change the name of the company. The proposed new name of the company will be announced on or before January 8, 2021.

Scorpio Bulkers added it is investing in the next generation of wind turbine installation vessels. The company has recently sold eight vessels and has contracted to sell sixteen additional vessels, all of which are expected to close in the first half of 2021.

The company also intends to sell its 25 remaining wholly-owned or finance leased drybulk vessels (including 7 Kamsarmax vessels and 18 Ultramax vessels) throughout 2021.

Scorpio Bulkers has signed a letter of intent to enter into a shipbuilding contract with Daewoo Shipbuilding and Marine Engineering Inc to build a wind turbine installation vessel to be delivered in 2023, with options to build three further similar vessels.

Related: Scorpio Bulkers postpones thirteen scrubber orders until at least 2021
Related: Scorpio Bulkers, Scorpio Tankers in 23 ‘hybrid-ready’ scrubber order
Related: Scorpio Bulkers rises scrubber installation credit by $41 million
Related: Scorpio Bulkers question scrubber solution

Photo credit: Gerd Altmann
Published: 22 December, 2020


Related News

Featured News

Our Industry Partners

  • argus

PR Newswire