Scorpio Bulkers

Nasdaq-listed shipowner and operated 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 a 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. 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 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 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 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 an 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 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. 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’ 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 Scorpio Bulkers is negotiating to acquire 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 a 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, total 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 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 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