Eneti Incorporation

New York-listed WTIV (Wind-Turbine Installation Vessels) shipowner and operator Eneti Incorporation (NETI) reported a net loss of $28.3 million for Q4 2021. Emanuele Lauro-led WTIV (Wind-Turbine Installation Vessels) shipowner and operator Eneti Incorporation (NETI) desires to pay dividends to shareholders. Despite the negative report, Eneti Incorporation (NETI) still declared a quarterly cash dividend of $0.01 per common share. Eneti Incorporation (NETI) is a Monaco-based renewable energy company. In August 2020, New York-listed shipowner and operator Scorpio Bulkers (SALT) announced that the company will shift out of the dry trade into WTIVs (Wind Turbine Installation Vessels). Q4 2021 results are predominantly affected by the acquisition of Seajacks International’s 58% stake. In August 2021, Emanuele Lauro-led WTIV (Wind-Turbine Installation Vessels) shipowner and operator Eneti Incorporation (NETI) took a 58% stake in Seajacks International for around $600 million. Furthermore, $12.3 million of Eneti Incorporation’s (NETI) Q4 loss was from Scorpio Bulkers’ $100 million investment in sister company Scorpio Tankers (STNG) in October 2018. Quarterly developments are less influential for the WTIV (Wind-Turbine Installation Vessels) shipowner and operator Eneti Incorporation (NETI) in the earlier stages of flourishing. New York-listed WTIV (Wind-Turbine Installation Vessels) shipowner and operator Eneti Incorporation (NETI) reported revenue of $16.5 million for Q4 2021. Eneti Incorporation (NETI) reported operating expenses of $38.4 million for Q4 2021. 22-February-2022

 

New York-listed shipowner and operator Scorpio Bulkers (SALT) received the required shareholder endorsement to change its name to Eneti Incorporation (NETI). Dry bulk shipowner and operator Scorpio Bulkers (SALT) was listed at Nasdaq in December 2013. Eneti Incorporation (NETI) plans to own and operate WTIVs (Wind Turbine Installation Vessels). Scorpio Bulkers (SALT) is leaving behind dry bulk business. Currently, most public companies are trading below NAV (Net Asset Values). Scorpio Bulkers (SALT) generate an important shareholder value after reinvesting in WTIVs (Wind Turbine Installation Vessels). Till the deployment of the company’s first WTIV (Wind Turbine Installation Vessel) in 2023, Eneti Incorporation (NETI) should build a strong cash balance to present certainty to lenders, shipyards, and clients. Emanuele Lauro-led Scorpio Bulkers (SALT) anticipates the remaining twelve (12) bulk carriers to be sold by the end of February 2021. Eneti Incorporation (NETI) will hold shares in Star Bulk and Eagle Bulk. Star Bulk and Eagle Bulk exercised their shares as money in recent bulk carrier purchases from Scorpio Bulkers (SALT). In August 2020, Scorpio Bulkers (SALT) announced the company was ordering four (4) WTIVs (Wind Turbine Installation Vessels) at DSME (Daewoo Shipbuilding & Marine Engineering) for around $290 million each. Scorpio Bulkers (SALT) is using the incomes from the sale of the bulker fleet to generate cash liquidity for WTIVs (Wind Turbine Installation Vessels). 4-February-2021

 

In August 2020, New York-listed shipowner and operator Scorpio Bulkers (SALT) announced that the company will shift out of the dry trade into WTIVs (Wind Turbine Installation Vessels). Many hedge funds and investors lost interest and bolted from the stock of Scorpio Bulkers (SALT). However, Evermore Global Advisors only became more interested. Evermore Global Advisors started to analyze the WTIVs (Wind Turbine Installation Vessels) market and especially observed IPO (Initial Public Offering) in Oslo Stock Exchange of an existing WTIV (Wind Turbine Installation Vessel) player called Cadeler. Evermore Global Advisors commenced to do a lot of work on the WTIV (Wind Turbine Installation Vessel) market. Evermore Global Advisors took approximately 2% of the IPO (Initial Public Offering). In 2020, Evermore Global Advisors sold off about two-thirds of its stake in New York-listed shipowner and operator Scorpio Bulkers (SALT). Afterward, Evermore Global Advisors decided not to exit and keep a position in Scorpio Bulkers (SALT). 23-January-2021

 

New York-listed shipowner and operator Scorpio Bulkers (SALT) sold 2017 built ultramax bulk carrier 64K DWT MV SBI Libra for around $18 million. Scorpio Bulkers (SALT) acquired MV SBI Libra under a sale-leaseback arrangement with Norwegian investor Ocean Yield. Ocean Yield would receive around $20 million from the sale and record a small book profit. In 2020, Emanuele Lauro-led Scorpio Bulkers sold 29 bulk carriers and commenced a rapid transition into the WTIV (Wind Turbine Installation Vessel) market. Currently, Scorpio Bulkers (SALT) has a fleet of 22 bulk carriers. Norwegian investor Ocean Yield owns five (5) bulk carriers leased back to Scorpio Bulkers (SALT) until at least 2029. Scorpio Bulkers (SALT) has an option to sell the bulk carriers to third parties with a slight premium. In August 2020, Scorpio Bulkers (SALT) announced the company was ordering up to four (4) WTIVs (Wind Turbine Installation Vessels) at Daewoo Shipbuilding & Marine Engineering. Eventually, Scorpio Bulkers (SALT) is expected to announce the three (3) optional WTIVs (Wind Turbine Installation Vessels). New York-listed shipowner and operator Scorpio Bulkers (SALT) has asked its shareholders to approve a change in the name of the company to Eneti. 10-January-2021

 

Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) is making significant strides in its strategy to exit the dry bulk sector and pivot towards the wind-power industry. The company’s ongoing fleet disposal efforts have been marked by strengthening prices, with the latest transaction involving the sale of the 63K DWT MV SBI Aries, built in 2015, for $16.5 million to an undisclosed buyer. This sale price is notably $500,000 higher than that of its sister vessel, the MV SBI Gemini, which was sold to Eagle Bulk Shipping of Connecticut on November 30. Both ships are outfitted with exhaust gas scrubbers, highlighting their enhanced environmental compliance features. This recent sale is the 28th ship CEO Emanuele Lauro-led shipowner and operator Scorpio Bulkers (SALT) has sold in 2020, reducing its fleet to 25 ships as the company advances its transformation towards becoming a player in the wind turbine installation vessel (WTIV) market. The firming prices Scorpio Bulkers has encountered in its recent sales underscore a positive market outlook, buoyed by growing confidence in a global economic recovery spurred by the forthcoming rollout of COVID-19 vaccines. In August, Scorpio Bulkers announced plans to commission up to four WTIVs from South Korea’s Daewoo Shipbuilding & Marine Engineering, with each vessel costing up to $290 million. The proceeds from its bulker fleet sales are being redirected to finance this strategic shift, providing the necessary liquidity for the venture. Importantly, Scorpio Bulkers has indicated that there are no “material” payments due to the shipyard in the near term, suggesting a well-structured financial plan to support its transition into the renewable energy sector. 14-December-2020

 

Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) is aiming to sell the remaining bulk carriers in its fleet by the end of March 2021. CEO Emanuele Lauro-led shipowner and operator Scorpio Bulkers (SALT) is moving into the wind energy sector much more rapidly than market players have expected. Currently, Scorpio Bulkers (SALT) owns and operates 43 bulk carriers. Last week, Scorpio Bulkers (SALT) sold 2016 built kamsarmax bulk carrier 61K DWT MV SBI Hyperio for around $18 million. Nasdaq-listed Scorpio Bulkers (SALT) have been selling at least two bulk carriers per week and have been moving out of the dry bulk business into WTIVs (Wind Turbine Installation Vessels). In August 2020, Scorpio Bulkers (SALT) ordered four (4) WTIVs (Wind Turbine Installation Vessels) at DSME (Daewoo Shipbuilding & Marine Engineering). 21-October-2020

 

Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) sold 2016 built ultramax bulk carrier 60K DWT MV SBI Hera for around $18.5 million. Scorpio Bulkers (SALT) has been selling all the bulk carriers to establish a wind-turbine installation vessel fleet. Emanuele Lauro-led Scorpio Bulkers (SALT) has been moving into the wind-turbine installation vessels business. Scorpio Bulkers (SALT) is selling off all dry bulk carriers to bankroll the high-priced wind-turbine installation vessels without raising equity. Furthermore, Scorpio Bulkers (SALT) is selling 2017 built ultramax bulk carrier 63K DWT MV SBI Phoenix and SBI Samson (both built 2017) for about $34 million en-block. Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) signed an LOI (Letter of Intent) worth for around $290 million with DSME (Daewoo Shipbuilding & Marine Engineering) for a wind-turbine installation vessels. 15-October-2020

 

Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) moving into the wind turbine market and playing big on wind turbine installation vessel (WTIV) order. Lately, CEO Emanuele Lauro-led shipowner and operator Scorpio Bulkers (SALT) sold 2016 built kamsarmax bulk carrier 82K DWT MV SBI Rock for around $18 shipowner and operator. Scorpio Bulkers (SALT) is likely going to quit the dry bulk carriers. Currently, Scorpio Bulkers (SALT) has a fleet of 48 bulk carriers. In August 2020, New York-listed shipowner and operated Scorpio Bulkers (SALT) announced offshore wind as a sustainable business opportunity for the company. In Q4 2020, Scorpio Bulkers is going to sign a new-building contract for wind turbine installation vessels (WTIV) with Daewoo Shipbuilding & Marine Engineering. Daewoo Shipbuilding & Marine Engineering is planning to deliver the first new-building wind turbine installation vessel (WTIV) in 2023. Scorpio Bulkers (SALT) is going to sell the entire fleet of bulk carriers. 27-September-2020

 

Private fund Scorpio Services Holding (SSH), owned by Scorpio Bulkers and Scorpio Tankers CEO Emanuele Lauro’s family and president Robert Bugbee, acquired millions of dollars of Scorpio Bulkers and Scorpio Tankers’ shares since early May 2020. Scorpio Bulkers and Scorpio Tankers’ shares are undervalued at the capital markets. Scorpio Bulkers and Scorpio Tankers’ management recognizes that the share price is unquestionably crushed, and the management wants to take advantage of this ridiculous sell-off and extremely inexpensive valuations. Currently, Nasdaq-listed shipowner and operator Scorpio Bulkers’ (SALT) net asset value stands at $25.04, Scorpio Tankers’ (STNG) net asset value stands at $23.60 which is almost double their share prices. Low liquidity levels and concentrate on deleveraging balance sheets are holding Scorpio Bulkers and Scorpio Tankers from reinvesting in the company through share buybacks. Currently, in New York Stock Exchange and NASDAQ, a lot of shipping stocks are trading at huge discounts to NAV (Net Asset Values). 25-September-2020

 

Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) reported a net loss of $45 million in Q2 2020 versus a net profit of $35 million in Q2 2019. Emanuele Lauro-led reported a net loss due to coronavirus recession which triggered unusual disturbance to dry bulk shipping and the global economy. A net loss of $45 million included a $14 million hit tied to Scorpio Bulkers’ $100 million equity investment in sister company Scorpio Tankers. In May 2020, Scorpio Bulkers sold 2.2 million shares of Scorpio Tankers for about $42 million. Currently, Scorpio Bulkers is holding about 2.1 million Scorpio Tankers shares. Scorpio Bulkers reported revenue of $26 million in Q2 2020 versus a net profit of $50 million in Q2 2019. Nevertheless, Scorpio Bulkers can set aside some cash for stakeholders, issuing a $0.05 dividend for the quarter. The coronavirus pandemic has been pressuring nations worldwide to shut down manufacturing to a degree that negatively affected the need to transport raw materials by sea. Therefore, Scorpio Bulkers’ operations and financial condition cannot be predicted. Last week, Scorpio Bulkers is going to order wind-turbine installation ships after signing LOI (Letter of Intent) with Daewoo Shipbuilding & Marine Engineering. 2-August-2020

 

New York-listed shipowner and operated Scorpio Bulkers has issued $60 million equity. Scorpio Services Holding is taking $15 million of the issuance, which is led by Bank of America Securities, BTIG, and Clarksons Platou Securities. The dry bulk market withstands difficult circumstances for at least the rest of 2020 due to the coronavirus recession. However, Scorpio Bulkers has already taken precautious steps including bulk carrier sales. Scorpio Bulkers and Scorpio Tankers have always believed in moving vigorously, including through dilutive shares sales. 9-June-2020

 

New York-listed shipowner and operated Scorpio Bulkers has reported a $108 million adjusted net loss, equivalent to a $15.65 loss per share in Q1 2020. In Q1 2019, Scorpio Bulkers reported a $4 million profit. Desperate dry cargo markets in Q1 2020 have prompted Scorpio Bulkers to report. Q1 2020 loss has cleared the net profit in Q1 2019. Scorpio Bulkers’ report omits a $17 million write-down on vessels that are retained for sale. Scorpio Bulkers’ Q1 2020 loss ruins critical gain made by the company during 2019.  In 2019, Scorpio Bulkers reported a year-end profit of $82 million. Meanwhile, Scorpio Bulkers sells half of Scorpio Tankers stocks for $43 million. On 7 April 2020, Scorpio Bulkers accomplished a one-for-ten reverse stock split. Scorpio Bulkers reported an $89 million non-cash loss from the company’s equity investment in its subsidiary Scorpio Tankers in Q1 2020. Furthermore, Scorpio Bulkers reported half a million-dollar cash dividend income from the Scorpio Tankers investment in Q1 2020. In Q1 2020, Scorpio Bulkers reported $39 million Time Charter Equivalent (TCE) revenue in Q1 2020, against $50 Time Charter Equivalent (TCE) revenue in Q1 2019. After Q1 2020 report, Scorpio Bulkers has been trying to increase extra liquidity. Currently, Scorpio Bulkers has $101 million in cash. Therefore, Scorpio Bulkers has been trying to raise some cash by refinancing transactions and share sales. On 8 May 2020, Scorpio Bulkers accumulated about $42 million by selling Scorpio Tankers’ shares. Scorpio Bulkers sold half of its stake in Scorpio Tankers. Arguably, Scorpio Bulkers’ BOD (Board of Directors) sold the Scorpio Tankers shares in the first week of May at $19 each, compared to a price of $27 in late January 2020. CEO Emanuele Lauro advocates the liquidity option. Furthermore, Scorpio Bulkers has executed $62 million sale and lease-back deals with Norwegian shipping fund Ocean Yield for three (3) bulk carriers. Sale and lease-back deals provided $33 million liquidity for Scorpio Bulkers. Scorpio Bulkers has also postponed around $25 million investment for scrubber installation on 13 dry bulk carriers until 2021. 10-May-2020

 

New York-listed Scorpio Bulkers has executed a 10-for-1 reverse stock split of its common shares. Last year, in January 2019, Scorpio Bulkers’ Sister company Scorpio Tankers executed a reverse stock split in order to make its shares more attractive to investors. On 3 April 2020, at AGM (Annual General Meeting), Scorpio Bulkers’ BD (Board of Directors) approved a 10-for-1 reverse stock split of its common shares. Effective from 7 April 2020, the number of Scorpio Bulkers’ common shares decreased to 7.25 million. Emanuele Lauro led Scorpio Bulkers has executed a reverse stock split in order to increase the market price of the Scorpio Bulkers’ common shares. Furthermore, the reverse stock split will improve the marketability and liquidity of the Scorpio Bulkers’ common shares and will encourage interest and trading in the Scorpio Bulkers’ common shares. In October 2018, Scorpio Bulkers acquired $100 million of a $300 million equity sale by Scorpio Tankers. As of today, Scorpio Bulkers’ $100 million investment has lost half its value under the coronavirus recession. Lately, Scorpio Bulkers sold three (3) dry bulk carriers for $54 million en-block. 10-April-2020

 

Cleaves Securities warned investors about New York-listed Scorpio Bulkers may report disappointing results for Q1 2020. Furthermore, Cleaves Securities downgraded dry bulk stocks again as weak dry bulk has been on the horizon. According to Cleaves Securities, Scorpio Bulkers is expected to report results that are significantly below consensus estimates. Cleaves Securities’ analyst Joakim Hannisdahl forecast that Scorpio Bulkers will report TCE (Time Charter Equivalent) revenue of $56.7 million in Q4 2019 which is below consensus at $62.4 million. According to Joakim Hannisdahl, low fleet utilization of 89% due to scrubber installations and predict average gross realized TCE (Time Charter Equivalent) across the fleet at $10,617 per day. In October 2019, Scorpio Bulkers’ guidance was that 50% of Q4 2019 kamsarmax bulk carrier days had been fixed at $14,083 per day and 39% of ultramax bulk carrier days were fixed at $13,450 per day. After Scorpio Bulkers’ guidance, spot rates fell considerably at the end of the year and Cleaves Securities believe that the latest sharp fall in the chartering rates is not fully reflected in current consensus estimates. Besides, due to higher costs, Cleaves Securities predict earnings per share of negative $0.11 versus consensus at $0.02. Furthermore, Cleaves Securities is also noticeably below consensus in Q1 2020 earnings estimates. According to Joakim Hannisdahl, an offsetting factor could be another special dividend of shares in Scorpio Tankers. Scorpio Bulkers owns 4.4 million shares in Scorpio Tankers, which valued at $162 million constitutes 37% of Scorpio Bulker’s NAV (Net Asset Value). According to Joakim Hannisdahl, dry cargo bulk carrier earnings and ship prices will remain depressed in the coming months of 2020 due to the weak dry bulk demand and largest fleet growth in Q1 2020 since 2016. 12-March-2020

 

New York-listed shipowner and operator Scorpio Bulkers (SALT), under the leadership of Chief Executive Emanuele Lauro, is taking strategic steps to enhance its financial flexibility through a sale and leaseback arrangement with Ocean Yield. The company has entered into an agreement to sell three of its vessels – the ultramax bulk carriers MV SBI Cronos (built in 2015) and MV SBI Achilles (built in 2016), along with the kamsarmax bulk carrier MV SBI Lynx (built in 2018) – to Ocean Yield for a total of $62.8 million. Subsequently, Scorpio Bulkers will lease these ships back under long-term bareboat charters spanning nine, ten, and twelve years, respectively. This transaction, anticipated to close in the first quarter, is poised to significantly bolster New York-listed shipowner and operator Scorpio Bulkers’ (SALT) liquidity by approximately $33.6 million, following the repayment of outstanding debt on these vessels. Furthermore, Scorpio Bulkers will gain access to an additional funding tranche of up to $4.5 million, earmarked for the installation of exhaust gas scrubbers on the three vessels, demonstrating the company’s commitment to environmental compliance and sustainability. In addition to securing immediate liquidity, Scorpio Bulkers has negotiated several purchase options throughout the duration of each charter agreement, as well as a definitive purchase option at the end of each lease term. This strategic move offers Scorpio Bulkers both operational flexibility and the potential for asset reacquisition, aligning with its broader financial and operational strategies. Since October 2019, New York-listed shipowner and operator Scorpio Bulkers (SALT) has executed the sale of nine bulk carriers, including those involved in the latest transaction with Ocean Yield, as part of its ongoing fleet management and financial optimization efforts. In a related development, Robert Bugbee, a key figure in the company, exercised options on 730,000 shares of Scorpio Bulkers at a strike price of $3, with an expiration in December, representing a total investment of $900,000. This action underscores the confidence of Scorpio Bulkers’ leadership in the company’s strategic direction and future prospects. 11-February-2020

 

Scorpio Bulkers, under the leadership of Chief Executive Emanuele Lauro, is engaging the market with a sense of mystery regarding its future strategy, particularly in relation to Scorpio Tankers. During its Q3 earnings call, the company hinted at a bullish outlook for Scorpio Tankers’ (STNG) stock but left analysts guessing about detailed plans. Robert Bugbee, the president of Scorpio Bulkers, emphasized the strategic ambiguity by stating, “We have to keep everyone guessing.” The decision to declare a special dividend of shares in Scorpio Tankers took many by surprise, reflecting Scorpio Bulkers’ confidence in the stock’s potential. Bugbee highlighted a substantial overlap in the investor bases of Scorpio Bulkers (SALT) and Scorpio Tankers (STNG), estimating that 65-70% of Scorpio Bulkers’ investors, including insiders and major shareholders, also invest in Scorpio Tankers. Analysts are curious about the possibility of Scorpio Bulkers declaring additional special dividends of STNG stock, especially given the stock’s approximately 20% increase over the past three months. While Bugbee anticipates “significant gains” in STNG’s stock and mentions the potential to further monetize Scorpio Bulkers’ stake for shareholder benefit, specific plans remain undisclosed. Robert Bugbee’s comments suggest a strong preference among Scorpio Bulkers shareholders for receiving STNG stock as dividends, potentially more valued than cash. This strategy aligns with Scorpio Bulkers’ commitment to creating value and flexibility for its shareholders, as evidenced by its sale-and-leaseback transactions and efforts to reduce expensive debt. Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT) has recently sold two ultramax bulk carriers and paid down significant debt, positioning itself advantageously regardless of the ongoing US-China trade tensions. Scorpio Bulkers (SALT) operates with a strategy that assumes the trade war’s continuation, ensuring resilience and performance even amid global economic uncertainties. The potential for a trade truce between the US and China is acknowledged as beneficial, yet Scorpio Bulkers’ current operations and strategies are designed to succeed regardless of geopolitical outcomes, emphasizing a prudent and adaptable approach to navigating the complexities of international trade and shipping markets. 23-October-2019

 

Nasdaq-listed shipowner and operator Scorpio Bulkers’ (SALT) President, Robert Bugbee, has highlighted the advantageous position of shipowners who have proactively installed scrubbers on their vessels in anticipation of the International Maritime Organization’s (IMO) 2020 sulfur cap regulations. The IMO 2020 regulation, which reduces the sulfur content limit in ship exhaust from 3.5% to 0.5%, comes into effect at the start of the new year, compelling shipowners to either install exhaust gas cleaning systems, known as scrubbers, or switch to IMO 2020-compliant fuel. Nasdaq-listed shipowner and operator Scorpio Bulkers’ (SALT) President, Robert Bugbee compares shipowners equipped with scrubber-fitted ships before the International Maritime Organization (IMO) 2020 deadline to early birds at a congested airport, having the benefit of moving through the chaos more efficiently. In contrast, those without scrubbers are likened to being stuck in a stationary queue, facing delays and potential operational challenges as the industry adjusts to the new regulations. The backlog for installing scrubbers is expected to grow, extending the advantage for ships already equipped with this technology. These ships are poised to capitalize on the disparity in operational costs between using lower-cost high-sulfur fuel oil with scrubbers and the more expensive IMO-compliant low-sulfur fuel. This scenario sets the stage for scrubber-fitted ships to “grab their luggage and leave the airport” first, metaphorically speaking, allowing them to seize market opportunities more readily than their counterparts still waiting to comply with the new sulfur emission standards. Chief Executive Emanuele Lauro-led Scorpio Bulkers has taken significant steps to ensure its fleet is prepared for International Maritime Organization (IMO) 2020 by fitting scrubbers on all of its kamsarmax and ultramax bulk carriers. This strategic decision positions the Nasdaq-listed shipowner and operator to benefit from the regulatory changes, emphasizing the foresight and adaptability of Scorpio Bulkers in navigating the evolving maritime regulatory landscape. 14-October-2019

 

New York-listed bulk owner stocks rise due to China’s openness to a small trade deal with the United States. Bulker stocks climbed upwards amid news that China may be open to a trade deal if the United States stops implementing more tariffs. China would accept a partial deal if the United States ceases the taxes on Chinese imports. Since the US-China trade war started in early 2018, United States has imposed tariffs on $550 billion in Chinese imports, on the other hand, China has imposed tariffs on $180 billion on imports from the United States. 20 New York-listed bulk shipowners’ stocks have seen gains. Golden Ocean Group’s stocks increased by 7% to $6.06 per share. In shipping markets, there is a significant correlation in trade deal optimism and dry bulk equities. Freight rates have started to improve, so bulk carrier shipowners’ stocks have also started to climb. New York-listed dry bulk shipowners Scorpio Bulkers’ stocks have climbed to $7.28 per share on Friday. 10-October-2019

 

Emanuele Lauro-led Scorpio Bulkers is aiming to sell two ultramax bulk carriers for about $37.9 million in total. New York-listed Scorpio Bulkers has entered into negotiations to sell 2014 built 64K DWT MV SBI Puma and 2015 built 64K DWT MV SBI Cougar. The sale of MV SBI Puma and MV SBI Cougar will generate $16 million of additional liquidity. As of 30 June 2019, MV SBI Puma and MV SBI Cougar were classified as held for sale, with delivery set for October 2019. New York-listed Scorpio Bulkers reported a loss of approximately $4.9 million in Q2 2019 and expects to write off deferred financing costs of $0.2 million upon closing the sale of MV SBI Puma and MV SBI Cougar and repaying $21.9 million in debt. After selling MV SBI Puma and MV SBI Cougar, Scorpio Bulkers will have an operating fleet of 57 bulk carriers, including 17 kamsarmax, 35 ultramax, and 5-time chartered-in bulk carriers. 23-September-2019

 

Monaco-based Scorpio Bulkers has reported a positive performance for the second quarter, surpassing analysts’ expectations and achieving a significant paper profit from its investment in Scorpio Tankers. The New York-listed shipowner has been actively managing its fleet, adding operated vessels while continuing to divest owned tonnage. In its latest financial statement, Emanuele Lauro-led Scorpio Bulkers announced the time charter of an additional four kamsarmax bulkers, although specifics of the deal were not disclosed. Concurrently, the company has classified two of its ultramax bulk carriers as “held for sale,” though the identities of these ships remain unspecified. During Q2 2019, New York-listed shipowner and operator Scorpio Bulkers completed the sale and leaseback of 16 ships, a move expected to generate $144.5 million in additional liquidity, inclusive of scrubber financing. This strategic decision has bolstered the company’s financial standing, particularly its investment in Scorpio Tankers, which, despite some analysts’ skepticism, has yielded a $53.1 million non-cash gain and cash dividends for Scorpio Bulkers. This contributed to a net profit of $35 million or $0.50 per share for the quarter, a marked improvement from the $0.8 million reported in the same period the previous year. The quarterly net result also includes a $7.7 million write-down related to the two ultramax bulk carriers designated as “held for sale” and write-offs of deferred financing costs connected to the sale of two kamsarmax bulk carriers and the refinancing of Scorpio Bulkers’ existing debt. Excluding these one-off expenses, Scorpio Bulkers, led by Chief Executive Emanuele Lauro, posted an adjusted net income of $40.1 million or $0.58 per share for the quarter. Despite a weaker-than-anticipated guidance for the third quarter, New York-listed Scorpio Bulkers remains optimistic about achieving higher bookings for the remaining days, given recent market developments. The Board of Directors has declared a dividend of $0.02 per share, aligning with analysts’ projections and reflecting the company’s confidence in its operational and financial strategy. 20-July-2019

 

Wall Street analysts are suggesting that Monaco-based New York-listed dry bulk shipowner and operator Scorpio Bulkers (SALT) could stand to benefit significantly by selling its $100 million stake in its sister company, Scorpio Tankers. This move is seen as a way to unlock value from what has been described as the company’s “best investment ever,” particularly after the investment faced criticism last fall. Noble Capital Markets analyst Poe Fratt recommended that Scorpio Bulkers could either sell the interest or spin it off to transfer the success of the Scorpio Tankers investment to its shareholders. Since the announcement of the deal, Scorpio Tankers shares have surged by 37%, while Scorpio Bulkers shares have seen a decline of 20.1%. The disparity between the performance of the two stocks highlights a potential opportunity for Scorpio Bulkers to capitalize on its investment, as Deutsche Bank analyst Amit Mehrotra pointed out that Scorpio Bulkers’ equity trades at less than half of net asset value when excluding its stake in Scorpio Tankers. Selling the stake could crystallize an unrealized gain for Scorpio Bulkers, potentially the most significant since the company’s inception in 2010. Such a sale would also increase the availability of Scorpio Tankers shares in the market, which is particularly appealing given the IMO 2020 regulations that are expected to benefit tanker operators. However, the decision to sell is not straightforward. Jefferies analyst Randy Giveans mentioned that selling the Scorpio Tankers position could be seen as a lack of confidence in the further upside of Scorpio Tankers. Robert Bugbee, president of both companies, has emphasized that the investment in Scorpio Tankers is seen as a long-term strategy rather than a short-term trade. A conservative approach to unwinding the position, as suggested by Mehrotra, involves selling a portion of shares over several quarters, using the proceeds for share repurchases and debt repayment by Scorpio Bulkers. This strategy could allow for a methodical divestment without forcing a choice between Scorpio Bulkers or Scorpio Tankers. The debate over the sale of the stake in Scorpio Tankers continues, with mixed opinions nine months after the deal’s announcement. Despite initial criticism, the investment has yielded a 55% return, potentially boosting Scorpio Bulkers’ earnings in the upcoming quarter. This performance reinforces views that the investment was a strategic success, despite ongoing governance and pureplay status concerns from some analysts. 16-July-2019

 

Robert Bugbee, President of Monaco-based Nasdaq-listed shipowner and operator Scorpio Bulkers (SALT), has demonstrated his confidence in the dry bulk shipping sector’s resurgence by purchasing 125,000 shares of the company at an average price of $4.58, amounting to an investment of $572,500. This acquisition was disclosed in an SEC filing, and as of March 15, Bugbee held 1.4 million shares, making him a 10% owner of Scorpio Holdings. This strategic investment by Robert Bugbee has coincided with an uptick in Scorpio Bulkers’ share price, which closed at $5.23, up by 3% on the day, valuing his total stake at approximately $7.96 million. Bugbee’s decision to increase his stake in Scorpio Bulkers (SALT), a company he co-founded, comes at a pivotal moment as the dry bulk sector begins to recover from a challenging first half of 2019, marked by low performance and negative market sentiment following the Vale dam disaster on January 25, which significantly impacted iron ore shipments. The Baltic Dry Index, a key indicator of dry bulk shipping rates, has shown significant improvement, climbing to 1446 from a low of 595 in mid-February. This rebound is largely attributable to the reopening of Vale’s Brucutu mine, which has restored 30 million tonnes of iron ore to the market, and eased trade tensions between the US and China. The recent agreement between US President Donald Trump and Chinese President Xi Jinping to halt the escalation of tariffs has been particularly encouraging for the sector, signaling a positive outlook for shipments of soybeans and other grains. Additionally, the reopening of the Brucutu mine has propelled capesize bulk carrier spot rates to $21,760 per day from $3,460 on April 2, further evidencing the sector’s recovery. Bugbee’s investment reflects both a personal commitment to Scorpio Bulkers and a broader optimism for the future of dry bulk shipping, suggesting a belief in the sector’s capacity for resilience and growth amidst fluctuating market conditions. 1-July-2019

 

Scorpio Bulkers (SALT), a Monaco-based, New York-listed dry bulk shipowner and operator, saw its stock price surge following the release of its first-quarter earnings report, which surpassed analysts’ expectations despite lower revenue. The company reported a $3.5 million net loss for the quarter, an improvement from the $5.8 million loss recorded during the same period last year. On an adjusted basis, Scorpio Bulkers (SALT) achieved a $4 million profit for the three months. JP Morgan analyst Noah Parquette noted that Scorpio Bulkers’ (SALT) operating loss per share of $0.17 was two cents better than both the bank’s and consensus projections. The core operating profit of $15 million also exceeded JP Morgan’s forecast of $13 million, thanks to higher-than-anticipated revenue. Following the earnings release, Scorpio Bulkers’ shares experienced an 11% increase to $5.26 in early-morning trading. Analysts highlighted the company’s conservative approach, focusing solely on capital expenditures for emission scrubbers, in anticipation of commentary reflecting a cautious strategy amidst challenging market conditions. Stifel analyst Ben Nolan commended Scorpio Bulkers (SALT) for its positioning to navigate the current dry bulk market challenges, citing the potential upside from its scrubber-fitted fleet in light of IMO 2020 regulations. A significant factor in this year’s first quarter was a $15 million non-cash gain related to the company’s equity investment in Scorpio Tankers made in October 2018, which gave it a 10.9% shareholding. However, this gain was partially offset by a $7.5 million write-down on two vessels designated for sale, the MV SBI Electra and the MV SBI Flamenco. Vessel revenue for the quarter amounted to $50.4 million, a decline from $54.3 million in the previous year, attributed to decreased activity in both the Atlantic and Pacific regions. The downturn was influenced by a combination of lower industrial activity, a shift towards higher natural gas consumption due to mild temperatures, and ongoing Chinese coal import restrictions from Australia. Furthermore, the ultramax and kamsarmax bulk carriers’ revenue was negatively impacted by the “extreme disruptions” in iron ore export capacity from Brazil and Australia, dampening market sentiment. 29-April-2019

 

Scorpio Bulkers (SALT), a New York-listed shipowner and operator, has decided to retain its multimillion-dollar investment in Scorpio Tankers, citing optimism about the company’s future and the broader product tanker sector. This decision comes amidst questions from analysts regarding the rationale and implications of this inter-company investment, made during an equity issue last year that also attracted investment from billionaire shipowner Idan Ofer. In October 2018, Scorpio Bulkers invested $100 million for a 10.9% stake in its sister company, Scorpio Tankers, with a positive outlook on the product tanker market leading up to the IMO 2020 sulfur regulations. Scorpio Bulkers’ President, Robert Bugbee, expressed confidence in the investment, suggesting that the product tanker market is performing well and potentially exceeding expectations. Scorpio Tankers’ stock has seen significant growth, trading at $26.26 in late afternoon, up from $18.70 at the start of the year. Scorpio Bulkers estimates Scorpio Tankers’ net asset value at around $40, based on recent improvements in the refinery market, with Robert Bugbee mentioning that Scorpio Bulkers (SALT) may consider selling its shares in Scorpio Tankers when the price reaches $60, $70, or $80, but it is too early to decide. While the investment has appreciated to a value of $136 million, according to Ben Nolan of Stifel, Scorpio Bulkers is reluctant to realize this gain just yet. The management expects the product tanker market to reach an inflection point due to IMO 2020, potentially leading to a significant increase in valuation. However, Deutsche Bank analyst Amit Mehrotra has raised concerns about this investment strategy, suggesting that it detracts from Scorpio Bulkers’ identity as a dry bulk company. Mehrotra questioned the focus on the product tanker market during Scorpio Bulkers’ earnings calls and suggested that the company might be compromising its financial performance due to an optimistic outlook on Scorpio Tankers. Robert Bugbee defended the strategy by highlighting that many successful shipping investors hold diversified portfolios with the primary goal of profitability. Robert Bugbee emphasized that Monaco-based Scorpio Bulkers’ investment in Scorpio Tankers aligns with this approach, focusing on generating returns for shareholders. This ongoing debate reflects differing views on the best strategy for Scorpio Bulkers amid changing market dynamics and regulatory landscapes in the shipping industry. 23-April-2019

 

Scorpio Bulkers (SALT), under the leadership of Emanuele Lauro, has entered into a sale and leaseback agreement with AVIC International Leasing, a branch of the Chinese aerospace and defense giant, Aviation Industry Corp of China. This deal involves the sale of six bulk carriers, all built in 2015 with a deadweight tonnage (DWT) of 77K. The vessels involved in this transaction are the MV Antares, MV Bravo, MV Hydra, MV Leo, MV Lyra, and MV Maia, which will be transferred to AVIC International’s balance sheet for the next eight years. This strategic move is set to bolster Scorpio Bulkers’ liquidity by a total of $62.4 million, inclusive of $9.8 million allocated for the installation of a scrubber on each ship, after settling some existing debts. The transaction is anticipated to be completed within this quarter. Following the sale, Scorpio Bulkers will continue to operate these vessels under an eight-year bareboat charter agreement, with an option to purchase the ships after two years and a mandatory buyback at the lease’s conclusion. Scorpio Bulkers, based in Monaco, will maintain a diversified fleet comprising 55 ships, including 17 kamsarmax and 37 ultramax bulk carriers, plus an additional chartered-in ultramax bulk carrier, after the sale of two kamsarmax bulk carriers. This transaction follows a similar strategy as Scorpio Bulkers’ sister company, Scorpio Tankers, which executed a sale and leaseback deal for 21 ships last year, underscoring the Scorpio group’s proactive financial management and strategic fleet operations amidst the dynamic maritime industry landscape. 13-April-2019

 

The sale of two modern kamsarmax bulk carriers by Scorpio Bulkers, a shipowner and operator based in Monaco and listed in New York, this week should not be seen as a defensive response to the downturn in the Baltic Dry Index (BDI) in 2019. Instead, it is a proactive move tied to asset valuations, according to Scorpio Bulkers’ (SALT) President, Robert Bugbee. Bugbee dismisses the notion that Scorpio’s decision to increase liquidity by approximately $18.6 million is a reaction to the BDI’s nearly 50% decline this year. He points out that Scorpio Bulkers divested its capesize units long ago, shielding it from the market’s worst reversals, including factors like Vale’s mining disaster in Brazil. Robert Bugbee highlighted one of Scorpio Bulkers’ advantages as having smaller to medium-sized dry bulk vessels where rates are on the rise, and not owning capesize vessels, while also owning shares in Scorpio Tankers due to a $100 million investment made in its sister public company last year. Bugbee explains that the recent sales are primarily driven by the disparity between the actual value of the vessels and the stock prices of both Scorpio Bulkers and Scorpio Tankers. Robert Bugbee did not elaborate further on this point, but it suggests two potential scenarios. Firstly, Scorpio Bulkers might use the proceeds from the sale of MV SBI Electra and MV SBI Flamenco (both built in 2015) to repurchase more of its own stock, which is currently trading at an estimated 40% of its net asset value (NAV). Alternatively, it could invest in more shares of Scorpio Tankers, a surprising move considering some equity analysts previously suggested selling part or all of the $100 million stake to generate liquidity for various capital needs, including the installation of exhaust gas scrubbers on most of the fleet. Monaco-based Scorpio Bulkers executives previously indicated their intention to announce a package of liquidity measures in the current quarter, including sales and leasebacks and expanded lending under their senior secured credit facilities. In the fourth quarter of the previous year, Scorpio Bulkers repurchased approximately $27 million worth of its own shares, equivalent to about 6% of the company. They also have the authorization to repurchase an additional $50 million in shares. Such programs are typically most effective when companies sell assets at NAV and buy back shares at a significant discount to NAV, benefiting from the difference. Scorpio Bulkers, led by Emanuele Lauro, estimates that it will cost around $127 million to install scrubbers on its fleet. The company’s efforts to enhance liquidity are expected to mirror the actions taken by Scorpio Tankers in 2018, which raised over $500 million through a combination of sale and leasebacks and expanded bank loans. 11-March-2019

 

New York-listed shipowner and operator Scorpio Bulkers (SALT) has finalized a significant transaction involving the sale and leaseback of seven ships, building on its previous kamsarmax bulk carrier deal. In this latest agreement, Scorpio Bulkers (SALT), led by Emanuele Lauro, has partnered with a leasing house backed by China Merchants Bank. The deal includes the sale and leaseback of seven China-built bulk carriers. CMB Financial Leasing will acquire four kamsarmax and three ultramax bulk carriers, valued at approximately $150.3 million. Under the terms of the deal, Scorpio Bulkers (SALT), a shipowner and operator listed in New York, will engage in bareboat charter agreements for these bulk carriers over a seven-year period. Additionally, the company holds purchase options for these vessels. Emanuele Lauro emphasized the importance of this transaction in enhancing liquidity, and he stated that Scorpio Bulkers (SALT) remains committed to strengthening its balance sheet and addressing the valuation of its stock. The ultramax bulk carriers included in the deal are MV SBI Pegasus, MV SBI Subaru, and MV SBI Ursa, all built in 2015 and with a capacity of 64K DWT. The kamsarmax bulk carriers consist of MV SBI Lambada, MV SBI Macarena (both built in 2016), MV SBI Carioca, and MV SBI Capoeira (both constructed in 2015). While specific financial details, including the sales value and leasing rates, were not disclosed by Scorpio Bulkers, the transaction is expected to contribute a total of $57.2 million to the company’s liquidity. Of this sum, $45.4 million will be received upon the closing of the transaction in the second quarter, following the repayment of the outstanding debt on the ships. An additional amount of up to $11.8 million will be allocated for the installation of scrubbers on the seven bulk carriers. Scorpio Bulkers (SALT) has purchase options for the ships that become exercisable after the third year of each vessel’s charter or upon the expiration of their respective contracts. This move aligns with Scorpio Bulkers’ (SALT) strategic goal of improving its cash position, as previously indicated during its last quarterly earnings call. The company plans to implement various liquidity measures, including sale and leaseback arrangements and expanded lending through senior secured credit facilities. Previously, Scorpio Bulkers (SALT) secured $6.9 million in cash through a sale and leaseback deal in February, involving the Japan-built kamsarmax vessel SBI Samba (built in 2015). Additionally, Scorpio Tankers, a sister company, has pursued similar agreements with Chinese leasing houses to enhance its liquidity. 10-March-2019

 

Monaco-based shipowner and operator Scorpio Bulkers, listed on the New York Stock Exchange under the ticker symbol SALT, has entered into another sale-and-leaseback agreement as part of its ongoing efforts to refinance one of its bulk carriers. The 84,000 deadweight tons (DWT) MV SBI Samba, built in 2015, has been sold and subsequently chartered back, resulting in the infusion of $6.9 million in liquidity for Scorpio Bulkers. According to a statement released to investors, Scorpio Bulkers disclosed that the vessel was sold for $21.4 million, while the bareboat charter back arrangement was priced at $6,850 per day. Although Scorpio Bulkers did not reveal the identity of the other party involved in the transaction, it’s worth noting that the company has previously engaged in similar leaseback deals, with Japanese counterparties believed to be involved in some of them. In contrast, Scorpio Tankers, a sister company, has primarily conducted its own transactions with Chinese leasing houses. At present, Scorpio Bulkers, led by Emanuele Lauro, operates a fleet consisting of 56 vessels, both owned and leased, that are actively operating in the maritime industry. 19-February-2019

 

Monaco-based Scorpio Bulkers’ CEO Emanuele Lauro sees positives in dry bulk shipping and macro outlook. Emanuele Lauro is positive about the recovering dry bulk market. Emanuele Lauro said Scorpio Bulkers normalized its business in 2017 as the industry ground upwards quarter by quarter in 2018. Scorpio Bulkers’ CEO Emanuele Lauro noted on the company’s annual report that the demand for commodities and shipping ton-mile has been increased. According to Emanuele Lauro, China tries to decrease pollution while maintaining economic growth hence domestic coal production will decline and long-haul imports will increase. This will trigger larger vessels shuttling coal from Australia to China. CEO Emanuele Lauro also welcomed the arrival of new legislation about sulfur emissions laws for 2020. Monaco-based Scorpio Bulkers has a fleet of 55 ships. 20-March-2018

 

New York-listed shipowner and operator Scorpio Bulkers is negotiating to acquire a new building 81K DWT kamsarmax dry bulk carrier which is under construction at Yangzijiang Shipyard China for around $25 million. New York-listed Scorpio Bulkers has a fleet of 50 dry bulk carriers on oceans. Scorpio Bulkers is interested in adding tonnage in a recovering market. 31-October-2017

 

Emanuele Lauro-led Scorpio Bulkers will start to pay a quarterly cash dividend of $0.02 per share. New York-listed Scorpio Bulkers reported a slight loss for Q3 2017. Scorpio Bulkers reported a Q3 2017 net deficit of $10.7 million in other words $0.15 per share. Scorpio Bulkers have been happy with quarter-on-quarter improvements in charter rates which creates positive cash flow. Emanuele Lauro believes that freight rates will improve through 2018. Emanuele Lauro is confident about Scorpio Bulkers’ financial strength. Fearnley Securities upgraded Scorpio Bulkers’ stock to buy. 23-October-2017

 

Shipowners splashed out more than $2 billion on dry bulk carriers during Q3 2017. Almost half of $2 billion is spent on second-hand dry bulk carriers. JP Morgan and Scorpio Bulkers are among the top shipowners that spent and dry cargo shipowners spent more than double what was put down by tanker shipowners. Between July and September, a total of $2 billion was spent on 142 dry bulk carriers. JP Morgan spent $198 million for 6 dry bulk carriers and Scorpio Bulkers spent $142 million for 6 dry bulk carriers which were acquired from Golden Ocean. In 2017 dry bulk carrier investments have increased but on the other hand, totally spent on tankers has plunged compared to 2016. 6-October-2017

 

New York-listed dry bulk shipowner and operator Scorpio Bulkers plans $50 million share buyback from cash pile. Scorpio Bulkers’ BOD (board of directors) authorized the repurchase of up to $50 million of the common stock in the open market. Scorpio Bulkers has 75 million shares in the market. Currently, Scorpio Bulkers’ stock price increased to $7. 14-September-2017

 

Monaco based and New York-listed Scorpio Bulkers reported a loss of $34.6 million for Q1 2017. Scorpio Bulkers reported an adjusted loss of $0.23 per share was below what Wall Street analysts had anticipated a $0.25 loss per share. Scorpio Bulkers is selling panamax dry bulk carrier 2014 built sister ships 81K DWT M/V SBI Cakewalk and M/V SBI Charleston for $45 million. Monaco based and New York-listed Scorpio Bulkers has 46 dry bulk carriers in the fleet. 20-April-2017

 

New York-based analyst Seaport Global Securities lifts target for Scorpio Bulkers stock 23.7% premium placed a $12 price target per share. Currently, New York-listed Scorpio Bulkers stock closing price $9.70 because of strength in secondhand values and rising dry bulk market last month. Seaport Global Securities has a buy rating on Scorpio Bulkers SALT. Also, JP Morgan lifted the price target to $13 on Scorpio Bulkers’ shares. 12-April-2017

 

Clarksons Platou Securities which operates as the investment banking arm of shipbroking giant Clarksons Platou lifted its expectations for New York-listed dry bulk shipowner and operator Scorpio Bulkers. Clarksons Platou Securities said Scorpio Bulkers in a position of strength to ride an upswing in the dry bulk market and has long-term potential. Scorpio Bulkers has modest leverage, plenty of liquidity, and a nearly fully-delivered order-book. Clarksons Platou Securities estimates that Scorpio Bulkers’ shares will be $10 soon. 23-February-2017

 

New York-listed Scorpio Bulkers president Robert Bugbee explains why Scorpio Bulkers is now turning away both private investors who want to buy company shares and investment bankers who tell him there is ample demand for further raises. New York-listed Scorpio Bulkers president Robert Bugbee explains that Scorpio Bulkers have $142 million in cash on the balance sheets and will be helpful during the rising dry bulk market. Robert Bugbee commented that Scorpio Bulkers raises money but cannot execute quickly essentially runs the risk of diluting shareholders. In Q4 2016, New York-listed Scorpio Bulkers posted a loss of $20 million. 19-February-2017

 

CEO Emanuele Lauro led bulker and tanker owner Scorpio Bulkers shares rocketed 15.8% to close at $5.85. Most analysts believe in 2017 will be more optimistic for the dry bulk market. Scorpio Bulkers shares upgraded to “buy” from “hold” by Deutsche Bank analyst Mehrotra who believes the bulker market bottomed in 2016. Deutsche Bank analyst Mehrotra sees these dry bulk stocks are undervalued. Other US-listed shipowners stocks rocketed like Star Bulk Carriers from rising 11.2% to $5.68 and Diana Shipping gained 9.3% to close at $3.30. 26-January-2017

 

New York-based Scorpio Bulkers chartered out 2016 built kamsarmax dry bulk carrier  81K M/V SBI Zumba for $10,500 per day for 5 to 7 seven months. Panamax dry bulk carriers’ average spot market rates were at $10,600 per day on Wednesday. 16-December-2016

 

New York-listed bulker owner Scorpio Bulkers chartered out three (3) dry bulk carriers on period. Scorpio Bulkers chartered out ultramax dry bulk carrier 2016 built 61K DWT M/V SBI Achilles for $11,000 per day. Scorpio Bulkers chartered out ultramax dry bulk carrier 2015 built 61K DWT M/V SBI Leo for $9,000 per day. Scorpio Bulkers chartered out kamsarmax dry bulk carrier 2014 built 81K M/V Cakewalk DWT for $9,000 per day. M/V SBI Achilles, M/V SBI Leo, and M/V Cakewalk were chartered out for 5 to 7 months. 21-November-2016