MONACO--(Marketwired - Oct 29, 2014) - Scorpio Bulkers Inc. (
Results for the three and nine months ended September 30, 2014
For the three months ended September 30, 2014, the Company had a net loss of $18.9 million, or $0.14 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $6.3 million.
For the nine months ended September 30, 2014, the Company had a net loss of $44.6 million, or $0.34 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $17.6 million.
The Company had minimal operations during the period from March 20, 2013 (date of inception) to September 30, 2013 so the prior year periods are not comparable to results for the three months and nine months ended September 30, 2014.
Explanation of Components of Financial Results for the Third Quarter of 2014 and 2013
For the three months ended September 30, 2014, the Company recorded a net loss of $18.9 million. The Company recorded a net loss of $2.7 million for the three months ended September 30, 2013.
Time charter equivalent, or TCE revenue, a non-GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.
TCE revenue was $12.4 million for the three months ended September 30, 2014, associated with 22 vessels time chartered-in and one vessel owned, for which TCE revenue per day was $6,941 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by a depressed rate environment for dry bulk carriers as well as the integration of the time chartered-in vessels into our fleet which required significant time and fuel as they had to be repositioned for certain of their first voyages.
Vessel operating costs for the three months ended September 30, 2014 were $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Depreciation for the three months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Charterhire expense was $22.9 million for the three months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company's Fleet List below for the terms of these agreements.
General and administrative expense was $8.0 million for the three months ended September 30, 2014. Such amount included $6.3 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors' fees, professional fees and insurance. General and administrative expense was $0.7 million for the three months ended September 30, 2013.
During the three months ended September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.
Explanation of Components of Financial Results for the Nine Months Ended September 30, 2014 and the Period From March 20, 2013 (Date of Inception) to September 30, 2013
For the nine months ended September 30, 2014, the Company recorded a net loss of $44.6 million and recorded a net loss of $2.7 million during the period from March 20, 2013 (date of inception) to September 30, 2013.
TCE revenue was $27.8 million for the nine months ended September 30, 2014, associated with 24 vessels time chartered-in and one vessel owned, for which the time charter equivalent revenue per day was $7,570 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by the integration of the time chartered vessels into our fleet which required significant time and fuel as they had to be repositioned for their first voyages as well as a depressed rate environment for dry bulk carriers.
Vessel operating costs for the nine months ended September 30, 2014 was $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Depreciation for the nine months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.
Charterhire expense was $49.5 million for the nine months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company's Fleet List below for the terms of these agreements.
General and administrative expense was $23.4 million for the nine months ended September 30, 2014. Such amount included $17.6 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors' fees, professional fees and insurance. General and administrative expense was $0.7 million for the period from March 20, 2013 (date of inception) to September 30, 2013.
During the period from March 20, 2013 (date of inception) to September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.
Recent Significant Events
$411 Million Credit Facility
On October 20, 2014 the Company announced that it has received commitments from a group of financial institutions for a loan facility of up to $411.264 million (the "Facility").
The Facility was arranged by DNB Markets, Inc. and contains commitments from financial institutions including DNB Capital, LLC, the Export-Import Bank of Korea ("KEXIM") and Korea Trade Insurance Corporation ("KSURE") as well as Korean and international pension funds and financial institutions.
The Facility shall mature six years from the delivery of the final vessel securing the Facility, however not later than June 2022, and in certain circumstances the Facility shall mature 12 years after the delivery of each financed vessel. The Facility is available to finance up to 60% of the contract price of the Company's 12 Capesize bulk carriers under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd, South Korea. The terms and conditions of the Facility, including covenants, are similar to those in the Company's existing credit facilities and customary for financings of this type, and the commitments from KEXIM and KSURE are in accordance with OECD Guidelines. The Facility is subject to customary conditions precedent and the execution of definitive documentation.
$42 Million Credit Facility
On October 22, 2014, the Company announced that it has received a commitment from a leading European financial institution for a loan facility of up to $42.0 million (the "Loan Facility").
The Facility will be used to finance up to 60% of the market value upon delivery of two Kamsarmax vessels currently under construction at Imabari Shipbuilding Co. Ltd., Japan. The Loan Facility has a final maturity of six years from the date of delivery of each vessel. The terms and conditions of this commitment are consistent with those of the Company's existing credit commitments. The Loan Facility is subject to customary conditions precedent and the execution of definitive documentation.
Update on Fleet Financing
Including the two credit facilities described above, the Company has now either signed loan agreements or received commitments for 66 of the vessels in its fleet. In addition, the Company has received proposals from leading European and Asian financial institutions to finance a portion of the cost of its remaining 14 unfinanced vessels. The terms and conditions of these proposals, for which commitments are expected within 2014, are consistent with those of the Company's existing credit commitments. The closing of any resultant loan facilities would remain subject to credit approval and customary conditions precedent, including negotiation and execution of definitive documentation.
Senior Notes Offering
On September 22, 2014 the Company issued $65 million in aggregate principal amount of senior unsecured notes (the "Notes"). The Notes will mature on September 15, 2019 and may be redeemed in whole or in part at any time or from time to time after September 15, 2016. The Notes will bear interest at a rate of 7.5% per year, payable quarterly on each March 15, June 15, September 15 and December 15, commencing on December 15, 2014. The Notes were issued in minimum denominations of $25.00 and integral multiples of $25 in excess thereof. The Company intends to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. The Company had granted the underwriters a 30-day option to purchase an additional $9.75 million in aggregate principal amount of Notes.
On October 16, 2014, underwriters exercised their option to purchase an additional $8,625,000 aggregate principal amount of the Notes (the "Additional Notes") at $25.00 per note. The Company plans to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. Following the closing of the Additional Notes, the Company has $73,625,000 aggregate principal amount of the Notes outstanding.
Contemplated Bond Offering
The Company is currently evaluating raising additional capital in the institutional bond markets in an offering exempt from registration under the Securities Act of 1933, as amended. The Company believes this could provide an opportunity to diversify its sources of funding and further strengthen the Company's balance sheet.
Time chartered-in vessels
During the third quarter of 2014, the Company entered into five time charter agreements.
- A Post-Panamax vessel built in 2012 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company's option at $13,000 per day. The Company has the option to extend this time charter for one year at $14,000 per day. This vessel is expected to be delivered December 2014.
- A Post-Panamax vessel built in 2011 at a Chinese shipyard. This vessel has been time chartered-in for 11 to 13 months at the Company's option at $9,500 per day. The Company has the option to extend this time charter for one year at $11,500 per day. The vessel was delivered on September 10, 2014.
- A Kamsarmax vessel built in 2014 at a South Korean shipyard. This vessel has been time chartered-in for 11 to 14 months at the Company's option at $12,000 per day. The Company has the option to extend this time charter for one year. The vessel was delivered on August 22, 2014.
- A Panamax vessel built in 2014 at a Chinese shipyard. This vessel has been time chartered-in for 10 to 13 months at Company's option at $5,000 per day for the first 40 days and $10,000 per day thereafter. The Company has the option to extend the charter for one year at $12,000 per day. The vessel was delivered on August 10, 2014.
- A Supramax vessel built in 2008 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company's option at $12,250 per day. The Company has the option to extend this time charter for one year at $13,000 per day. The vessel was delivered on September 13, 2014.
Current Liquidity
As of October 27, 2014, the Company had $208.9 million in cash and cash equivalents.
Newbuilding Program
The aggregate purchase price of the vessels in our initial fleet of 80 vessels was $3,102.8 million, of which two Kamsarmax vessels were delivered to us during the third quarter of 2014. As of October 27, 2014, we have paid a total of $936.0 million in installment payments due under our shipbuilding contracts for our Initial Fleet, including payments for the two vessels delivered to us. The remaining $2,166.8 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 29 Ultramax newbuildings, 21 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:
| Q4 2014 | $ | 52.8 | million** | ||
| Q1 2015 | 260.3 | million | |||
| Q2 2015 | 288.7 | million | |||
| Q3 2015 | 513.1 | million | |||
| Q4 2015 | 327.6 | million | |||
| Q1 2016 | 372.9 | million | |||
| Q2 2016 | 280.0 | million | |||
| Q3 2016 | 71.3 | million | |||
| $ | 2,166.8 | million | |||
* These are estimates only and are subject to change as construction progresses. ** Relates to payments expected to be made from October 27, 2014 to December 31, 2014.
Conference Call Details:
Wednesday, October 29, 2014 at 11:00 AM Eastern Daylight Time and 4:00 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888)-797-2980 (U.S.) or 1(913)-981-5596 (International). The conference participant passcode is 7812625. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.
Audio Webcast:
There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com . Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Webcast URL: http://www.visualwebcaster.com/event.asp?id=100862
| Scorpio Bulkers, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| (Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
| Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2014 | Period from March 20, 2013 (date of inception) to September 30, 2013 | |||||||||||||
| Revenue: | ||||||||||||||||
| Vessel revenue | $ | 12,608 | $ | - | $ | 31,255 | $ | - | ||||||||
| Operating expenses: | ||||||||||||||||
| Voyage expenses | 238 | - | 3,418 | - | ||||||||||||
| Vessel operating cost | 382 | - | 382 | - | ||||||||||||
| Charterhire expense | 22,906 | - | 49,468 | - | ||||||||||||
| Depreciation | 117 | - | 117 | - | ||||||||||||
| General and administrative expenses | 8,034 | 675 | 23,385 | 676 | ||||||||||||
| Total operating expenses | 31,677 | 675 | 76,770 | 676 | ||||||||||||
| Operating loss | (19,069 | ) | (675 | ) | (45,515 | ) | (676 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 129 | 19 | 922 | 19 | ||||||||||||
| Foreign exchange gain (loss) | 5 | (2,081 | ) | - | (2,081 | ) | ||||||||||
| Other expense, net | 26 | - | 26 | - | ||||||||||||
| Total other income | 160 | (2,062 | ) | 948 | (2,062 | ) | ||||||||||
| Net loss | $ | (18,909 | ) | $ | (2,737 | ) | $ | (44,567 | ) | $ | (2,738 | ) | ||||
| Loss per common share- basic and diluted (1) | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.34 | ) | $ | (0.17 | ) | ||||
| Weighted-average shares outstanding- basic and diluted (1) | 133,248,016 | 33,453,698 | 133,034,280 | 15,692,995 | ||||||||||||
| (1) | Diluted weighted-average shares outstanding, which would include the impact of restricted shares, for the three and nine months ended September 30, 2014 would be anti-dilutive since the Company is in a net loss position. As such, there is no difference between basic and diluted earnings per share for these periods. There were no potentially dilutive shares outstanding during the period from March 20, 2013 (date of inception) to September 30, 2013. |
| Scorpio Bulkers Inc. and Subsidiaries | |||||||||
| Consolidated Balance Sheets (unaudited) | |||||||||
| (Dollars in Thousands, Except Per Share Data) | |||||||||
| September 30, 2014 | December 31, 2013 | ||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 218,585 | $ | 733,896 | |||||
| Due from charterers | 17,419 | - | |||||||
| Prepaid expenses and other current assets | 2,817 | 61 | |||||||
| Total current assets | 238,821 | 733,957 | |||||||
| Non-current assets | |||||||||
| Vessels, net | 66,653 | - | |||||||
| Vessels under construction | 870,265 | 371,692 | |||||||
| Deferred financing costs, net | 2,240 | - | |||||||
| Other assets | 13,794 | 35 | |||||||
| Total non-current assets | 952,952 | 371,727 | |||||||
| Total assets | $ | 1,191,773 | $ | 1,105,684 | |||||
| Liabilities and shareholders' equity | |||||||||
| Current liabilities | |||||||||
| Accounts payable and accrued expenses | $ | 6,704 | $ | 1,472 | |||||
| Total current liabilities | 6,704 | 1,472 | |||||||
| Non-current liabilities | |||||||||
| Senior Notes | 65,000 | - | |||||||
| Total non-current liabilities | 65,000 | - | |||||||
| Total liabilities | 71,704 | 1,472 | |||||||
| Shareholders' equity | |||||||||
| Common stock, $0.01 par value per share; authorized 450,000,000 shares;issued and outstanding 140,299,695 and 133,403,931 shares as of September 30, 2014 and December 31, 2013, respectively | 1,403 | 1,334 | |||||||
| Paid-in capital | 1,169,540 | 1,109,185 | |||||||
| Accumulated deficit | (50,874 | ) | (6,307 | ) | |||||
| Total shareholders' equity | 1,120,069 | 1,104,212 | |||||||
| Total liabilities and shareholders' equity | $ | 1,191,773 | $ | 1,105,684 | |||||
| Scorpio Bulkers Inc., and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows (unaudited) | ||||||||
| (Dollars in Thousands) | ||||||||
| Nine Months Ended September 30, 2014 | Period from March 20, 2013 (date of inception) to September 30, 2013 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (44,567 | ) | $ | (2,738 | ) | ||
| Adjustment to reconcile net loss to net cash used by operating activities: | ||||||||
| Restricted stock amortization | 17,579 | - | ||||||
| Unrealized loss on foreign currency transactions | - | 2,080 | ||||||
| Depreciation | 117 | - | ||||||
| Amortization of deferred financing costs | 10 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in amounts due from charterers | (22,081 | ) | - | |||||
| Increase in prepaid expenses and other current assets | (2,756 | ) | (4 | ) | ||||
| Increase in accounts payable and accrued expenses | 2,642 | 635 | ||||||
| Net cash used in operating activities | (49,056 | ) | (27 | ) | ||||
| Investing activities | ||||||||
| Payments for vessels and vessels under construction | (562,781 | ) | (70,053 | ) | ||||
| Net cash used in investing activities | (562,781 | ) | (70,053 | ) | ||||
| Financing activities | ||||||||
| Proceeds from issuance of common stock | 42,345 | 243,123 | ||||||
| Proceeds from Senior Notes offering | 65,000 | - | ||||||
| Debt issue costs paid | (10,819 | ) | - | |||||
| Net cash provided by financing activities | 96,526 | 243,123 | ||||||
| (Decrease) increase in cash and cash equivalents | (515,311 | ) | 173,043 | |||||
| Cash at cash equivalents, beginning of period | 733,896 | - | ||||||
| Cash and cash equivalents, end of period | $ | 218,585 | $ | 173,043 | ||||
| Scorpio Bulkers Inc. and Subsidiaries | |||||||||||||
| Other Operating Data (unaudited) | |||||||||||||
| (Dollars in Thousands, Except Per Day Data) | |||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Period from March 20, 2013 (date of inception) to | ||||||||||
| September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||
| Time Charter Equivalent Revenue (1) : | |||||||||||||
| Vessel revenue | $ | 12,608 | $ | - | $ | 31,255 | $ | - | |||||
| Voyage expenses | 238 | - | 3,418 | - | |||||||||
| Time charter equivalent revenue | $ | 12,370 | $ | - | $ | 27,837 | $ | - | |||||
| Time charter equivalent revenue attributable to: | |||||||||||||
| Kamsarmax | $ | 9,459 | $ | - | $ | 21,486 | $ | - | |||||
| Ultramax | 2,911 | - | 6,351 | - | |||||||||
| $ | 12,370 | $ | - | $ | 27,837 | $ | - | ||||||
| Revenue days (1) : | |||||||||||||
| Kamsarmax | 1,397 | - | 2,957 | - | |||||||||
| Ultramax | 385 | - | 720 | - | |||||||||
| Combined | 1,782 | - | 3,677 | - | |||||||||
| TCE per revenue day (1) : | |||||||||||||
| Kamsarmax | $ | 6,771 | $ | - | $ | 7,266 | $ | - | |||||
| Ultramax | $ | 7,561 | $ | - | $ | 8,816 | $ | - | |||||
| Combined | $ | 6,941 | $ | - | $ | 7,570 | $ | - | |||||
| (1) | We define Time Charter Equivalent (TCE) revenue as voyage revenues less voyage expenses. Such TCE revenue, divided by the number of our available days during the period, or revenue days, is TCE per revenue day, which is consistent with industry standards. TCE per revenue day is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts. |
| Fleet List as of October 28, 2014 | ||||||||
| Capesize Vessels | ||||||||
| Vessel Name | Expected Delivery (1) | DWT | Shipyard | |||||
| 1 | Hull H1309 - TBN SBI Puro | Q1-15 | 180,000 | Waigaoqiao | ||||
| 2 | Hull H1310 - TBN SBI Valrico | Q2-15 | 180,000 | Waigaoqiao | ||||
| 3 | Hull H1311 - TBN SBI Maduro | Q3-15 | 180,000 | Waigaoqiao | ||||
| 4 | Hull H1364 - TBN SBI Belicoso | Q3-15 | 180,000 | Waigaoqiao | ||||
| 5 | Hull H1365 - TBN SBI Corona | Q1-16 | 180,000 | Waigaoqiao | ||||
| 6 | Hull H1366 - TBN SBI Diadema | Q1-16 | 180,000 | Waigaoqiao | ||||
| 7 | Hull H1367 - TBN SBI Estupendo | Q2-16 | 180,000 | Waigaoqiao | ||||
| 8 | Hull S1205 - TBN SBI Camacho | Q2-15 | 180,000 | Sungdong | ||||
| 9 | Hull S1206 - TBN SBI Montesino | Q2-15 | 180,000 | Sungdong | ||||
| 10 | Hull S1211 - TBN SBI Magnum | Q3-15 | 180,000 | Sungdong | ||||
| 11 | Hull S1212 - TBN SBI Montecristo | Q3-15 | 180,000 | Sungdong | ||||
| 12 | Hull S1213 - TBN SBI Aroma | Q3-15 | 180,000 | Sungdong | ||||
| 13 | Hull S1214 - TBN SBI Cohiba | Q4-15 | 180,000 | Sungdong | ||||
| 14 | Hull S1215 - TBN SBI Habano | Q4-15 | 180,000 | Sungdong | ||||
| 15 | Hull S1216 - TBN SBI Lonsdale | Q1-16 | 180,000 | Sungdong | ||||
| 16 | Hull S1217 - TBN SBI Partagas | Q1-16 | 180,000 | Sungdong | ||||
| 17 | Hull S1218 - TBN SBI Parejo | Q2-16 | 180,000 | Sungdong | ||||
| 18 | Hull S1219 - TBN SBI Toro | Q2-16 | 180,000 | Sungdong | ||||
| 19 | Hull S1220 - TBN SBI Tuscamina | Q2-16 | 180,000 | Sungdong | ||||
| 20 | Hull H1059 - TBN SBI Churchill | Q4-15 | 180,000 | Daewoo | ||||
| 21 | Hull H1060 - TBN SBI Perfecto | Q4-15 | 180,000 | Daewoo | ||||
| 22 | Hull H1061 - TBN SBI Presidente | Q1-16 | 180,000 | Daewoo | ||||
| 23 | Hull H1062 - TBN SBI Panatela | Q1-16 | 180,000 | Daewoo | ||||
| 24 | Hull H1063 - TBN SBI Robusto | Q2-16 | 180,000 | Daewoo | ||||
| 25 | Hull HN1058 - TBN SBI Behike | Q3-15 | 180,000 | Daehan | ||||
| 26 | Hull HN1059 - TBN SBI Monterrey | Q4-15 | 180,000 | Daehan | ||||
| 27 | Hull HN1060 - TBN SBI Macanudo | Q4-15 | 180,000 | Daehan | ||||
| 28 | Hull HN1061 - TBN SBI Cuaba | Q1-16 | 180,000 | Daehan | ||||
| Capesize NB DWT | 5,040,000 | |||||||
| Kamsarmax Vessels | ||||||||
| Vessel Name | Expected Delivery (1) | DWT | Shipyard | |||||
| 1 | Hull S1680 - TBN SBI Samba | Q1-15 | 84,000 | Imabari | ||||
| 2 | Hull S1681 - TBN SBI Rumba | Q3-15 | 84,000 | Imabari | ||||
| 3 | Hull 1090 - TBN SBI Electra | Q3-15 | 82,000 | Yangzijiang | ||||
| 4 | Hull 1091 - TBN SBI Flamenco | Q3-15 | 82,000 | Yangzijiang | ||||
| 5 | Hull 1092 - TBN SBI Rock | Q4-15 | 82,000 | Yangzijiang | ||||
| 6 | Hull 1093 - TBN SBI Twist | Q1-16 | 82,000 | Yangzijiang | ||||
| 7 | Hull SS164 - TBN SBI Salsa | Q3-15 | 81,600 | Tsuneishi | ||||
| 8 | Hull SS179 - TBN SBI Merengue | Q1-16 | 81,600 | Tsuneishi | ||||
| 9 | Hull S1228 - TBN SBI Capoeira | Q1-15 | 82,000 | Hudong | ||||
| 10 | Hull S1722A - TBN SBI Conga | Q2-15 | 82,000 | Hudong | ||||
| 11 | Hull S1723A - TBN SBI Bolero | Q3-15 | 82,000 | Hudong | ||||
| 12 | Hull S1229 - TBN SBI Carioca | Q2-15 | 82,000 | Hudong | ||||
| 13 | Hull S1724A - TBN SBI Sousta | Q3-15 | 82,000 | Hudong | ||||
| 14 | Hull S1725A - TBN SBI Reggae | Q4-16 | 82,000 | Hudong | ||||
| 15 | Hull S1726A - TBN SBI Zumba | Q1-16 | 82,000 | Hudong | ||||
| 16 | Hull S1231 - TBN SBI Macarena | Q1-16 | 82,000 | Hudong | ||||
| 17 | Hull S1735A - TBN SBI Parapara | Q1-16 | 82,000 | Hudong | ||||
| 18 | Hull S1736A - TBN SBI Mazurka | Q2-16 | 82,000 | Hudong | ||||
| 19 | Hull S1230 - TBN SBI Lambada | Q3-15 | 82,000 | Hudong | ||||
| 20 | Hull S1232 - TBN SBI Swing | Q2-16 | 82,000 | Hudong | ||||
| 21 | Hull S1233 - TBN SBI Jive | Q2-16 | 82,000 | Hudong | ||||
| Kamsarmax NB DWT | 1,725,200 | |||||||
| Ultramax Vessels | ||||||||
| Vessel Name | Expected Delivery (1) | DWT | Shipyard | |||||
| 1 | Hull 1907 - TBN SBI Hera | Q2-16 | 60,200 | Mitsui | ||||
| 2 | Hull 1906 - TBN SBI Zeus | Q2-16 | 60,200 | Mitsui | ||||
| 3 | Hull 1911 - TBN SBI Poseidon | Q3-16 | 60,200 | Mitsui | ||||
| 4 | Hull 1912 - TBN SBI Apollo | Q3-16 | 60,200 | Mitsui | ||||
| 5 | Hull S870 - TBN SBI Echo | Q3-15 | 61,000 | Imabari | ||||
| 6 | Hull S871 - TBN SBI Tango | Q3-15 | 61,000 | Imabari | ||||
| 7 | Hull S-A098 - TBN SBI Achilles | Q2-16 | 61,000 | Imabari | ||||
| 8 | Hull S-A089 - TBN SBI Cronos | Q4-15 | 61,000 | Imabari | ||||
| 9 | Hull S-A090 - TBN SBI Hermes | Q1-16 | 61,000 | Imabari | ||||
| 10 | Hull NE180 - TBN SBI Bravo | Q1-15 | 61,000 | Nacks | ||||
| 11 | Hull NE181 - TBN SBI Antares | Q1-15 | 61,000 | Nacks | ||||
| 12 | Hull NE182 - TBN SBI Maia | Q3-15 | 61,000 | Nacks | ||||
| 13 | Hull NE183 - TBN SBI Hydra | Q3-15 | 61,000 | Nacks | ||||
| 14 | Hull NE194 - TBN SBI Hyperion | Q2-16 | 61,000 | Nacks | ||||
| 15 | Hull NE195 - TBN SBI Tethys | Q2-16 | 61,000 | Nacks | ||||
| 16 | Hull DE018 - TBN SBI Leo | Q1-15 | 61,000 | Dacks | ||||
| 17 | Hull DE019 - TBN SBI Lyra | Q2-15 | 61,000 | Dacks | ||||
| 18 | Hull DE020 - TBN SBI Subaru | Q2-15 | 61,000 | Dacks | ||||
| 19 | Hull DE021 - TBN SBI Ursa | Q3-15 | 61,000 | Dacks | ||||
| 20 | Hull CX0610 - TBN SBI Athena | Q1-15 | 64,000 | Chengxi | ||||
| 21 | Hull CX0651 - TBN SBI Pegasus | Q3-15 | 64,000 | Chengxi | ||||
| 22 | Hull CX0652 - TBN SBI Orion | Q4-15 | 64,000 | Chengxi | ||||
| 23 | Hull CX0612 - TBN SBI Thalia | Q4-15 | 64,000 | Chengxi | ||||
| 24 | Hull CX0653 - TBN SBI Hercules | Q4-15 | 64,000 | Chengxi | ||||
| 25 | Hull CX0627 - TBN SBI Perseus | Q1-16 | 64,000 | Chengxi | ||||
| 26 | Hull CX0654 - TBN SBI Kratos | Q1-16 | 64,000 | Chengxi | ||||
| 27 | Hull CX0655 - TBN SBI Samson | Q2-16 | 64,000 | Chengxi | ||||
| 28 | Hull CX0613 - TBN SBI Phoebe | Q3-16 | 64,000 | Chengxi | ||||
| 29 | Hull CX0656 - TBN SBI Phoenix | Q3-16 | 64,000 | Chengxi | ||||
| Ultramax NB DWT | 1,795,800 | |||||||
| Total Newbuild DWT | 8,561,000 | |||||||
| As used in this earnings release "Dacks" refers to Dalian COSCO KHI Ship Engineering Co. Ltd., "Daehan" refers to Daehan Shipbuilding Co., Ltd., "Daewoo" refers to Daewoo Mangalia Heavy Industries S.A.,"Chengxi" refers to Chengxi Shipyard Co., Ltd., "Hudong" refers to Hudong-Zhonghua Shipbuilding (Group) Co., Inc., "Imabari" refers to Imabari Shipbuilding Co. Ltd., "Mitsui" refers to Mitsui Engineering & Shipbuilding Co. Ltd., "Nacks" refers to Nantong COSCO KHI Ship Engineering Co., Ltd., "Sungdong" refers to Sungdong Shipbuilding & Marine Engineering Co., Ltd., "Tsuneishi" refers to Tsuneishi Group (Zhoushan) Shipbuilding Inc., "Waigaoqiao" refers to Shanghai Waigaoqiao Shipbuilding Co., Ltd., and "Yangzijiang" refers to Jiangsu Yangzijiang Shipbuilding Co. Ltd. |
| (1) | Expected delivery date relates to quarter during which each vessel is currently expected to be delivered from the shipyard. |
Owned vessels
| Vessel Name | Year Built | DWT | Vessel Type | |||
| SBI Cakewalk | 2014 | 82,000 | Kamsarmax | |||
| SBI Charleston | 2014 | 82,000 | Kamsarmax | |||
| Total DWT | 164,000 | |||||
Time chartered-in vessels
The Company has time chartered-in 24 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:
| Vessel Type | Year Built | DWT | Where Built | Daily Base Rate | Earliest Expiry | |||||||
| Post-Panamax | 2012 | 98,700 | China | $13,000 | 15-Sep-16 | (1) | ||||||
| Post-Panamax | 2010 | 93,000 | China | $13,250 | 23-Oct-14 | (2) | ||||||
| Post-Panamax | 2011 | 93,000 | China | $13,500 | 24-Oct-14 | (3) | ||||||
| Post-Panamax | 2009 | 93,000 | China | See Note (4) | 9-May-15 | (4) | ||||||
| Post-Panamax | 2011 | 93,000 | China | $9,500 | 11-Aug-15 | (5) | ||||||
| Kamsarmax | 2014 | 82,500 | South Korea | $12,000 | 23-Jul-15 | (6) | ||||||
| Kamsarmax | 2009 | 82,500 | Japan | $14,500 | 8-Feb-15 | (7) | ||||||
| Kamsarmax | 2012 | 82,000 | South Korea | $15,500 | 23-Jul-17 | (8) | ||||||
| Kamsarmax | 2011 | 81,900 | South Korea | $12,750 | 3-Apr-15 | (9) | ||||||
| Kamsarmax | 2012 | 81,500 | South Korea | $14,500 | 7-Dec-14 | (10) | ||||||
| Kamsarmax | 2011 | 81,500 | South Korea | $15,000 | 15-Jan-16 | (11) | ||||||
| Kamsarmax | 2012 | 81,000 | South Korea | $15,000 | 10-Feb-15 | (12) | ||||||
| Kamsarmax | 2012 | 79,500 | China | $14,000 | 23-Jan-15 | (13) | ||||||
| Panamax | 2004 | 77,500 | China | $14,000 | 3-Jan-17 | (14) | ||||||
| Panamax | 2014 | 77,000 | Japan | $16,000 | 4-Mar-15 | (15) | ||||||
| Panamax | 2014 | 76,000 | China | See Note (16) | 19-Jun-15 | (16) | ||||||
| Panamax | 2009 | 76,500 | Japan | $14,000 | 1-Dec-14 | (17) | ||||||
| Panamax | 2007 | 75,500 | South Korea | $13,750 | 14-Feb-15 | (18) | ||||||
| Ultramax | 2010 | 61,000 | Japan | $14,200 | 1-Apr-17 | (19) | ||||||
| Supramax | 2010 | 58,000 | China | $14,250 | 12-Dec-16 | (20) | ||||||
| Supramax | 2011 | 58,000 | China | $13,750 | 18-Jan-15 | (21) | ||||||
| Supramax | 2008 | 58,000 | China | $12,250 | 13-Jun-16 | (22) | ||||||
| Supramax | 2015 | 55,000 | Japan | $14,000 | 30-Jun-18 | (23) | ||||||
| Handymax | 2002 | 48,500 | Japan | $12,000 | 31-Jan-17 | (24) | ||||||
| Total TC DWT | 1,844,100 | |||||||||||
| (1) | This vessel has been time chartered-in for 21 to 25 months at the Company's option at $13,000 per day. The Company has the option to extend this time charter for one year at $14,000 per day. This vessel is expected to be delivered December 2014. |
| (2) | This vessel has been time chartered-in for eight to 10 months at Company's option at $13,250 per day. The vessel was delivered on February 23, 2014. |
| (3) | This vessel has been time chartered-in for seven to nine months at the Company's option at $13,500 per day. The vessel was delivered on March 24, 2014. |
| (4) | This vessel has been time chartered-in for 10 to 14 months at the Company's option at a rate of 90% of the Baltic Panamax 4TC Index. The Company has the option to extend this time charter for an additional 10 to 14 months at the same rate of hire. The vessel was delivered on July 9, 2014. |
| (5) | This vessel has been time chartered-in for 11 to 13 months at the Company's option at $9,500 per day. The Company has the option to extend this time charter for one year at $11,500 per day. The vessel was delivered on September 11, 2014. |
| (6) | This vessel has been time chartered-in for 11 to 14 months at the Company's option at $12,000 per day. The Company has the option to extend this time charter for one year. The vessel was delivered on August 22, 2014. |
| (7) | This vessel has been time chartered-in for 11 to 13 months at the Company's option at $14,500 per day. The Company has the option to extend this time charter for one year at $15,500 per day. The vessel was delivered on March 8, 2014. |
| (8) | This vessel has been time chartered-in for 39 to 44 months at the Company's option at $15,500 per day. The Company has the option to extend this time charter for one year at $16,300 per day. The vessel was delivered on April 23, 2014. |
| (9) | This vessel has been time chartered-in for 11 to 13 months at the Company's option at $12,750 per day. The Company has the option to extend this time charter for one year at $13,750 per day. The vessel was delivered on May 3, 2014. |
| (10) | This vessel has been time chartered-in for 10 to 12 months at Company's option at $14,500 per day. The vessel was delivered on February 7, 2014. |
| (11) | This vessel has been time chartered-in for 23 to 28 months at the Company's option at $15,000 per day. The Company has the option to extend the charter for an additional 11 to 13 months at $16,000 per day. This vessel was delivered on February 15, 2014. |
| (12) | This vessel has been time chartered-in for 12 to 14 months at Company's option at $15,000 per day. The vessel was delivered on February 10, 2014. |
| (13) | This vessel has been time chartered-in for 11 to 14 months at the Company's option at $14,000 per day. The Company has the option to extend the charter for an additional 11 to 14 months at $14,750 per day. This vessel was delivered on February 23, 2014. |
| (14) | This vessel has been time chartered-in for 32 to 38 months at the Company's option at $14,000 per day. The vessel was delivered on May 3, 2014. |
| (15) | This vessel has been time chartered-in for 12 to 13 months at Company's option at $16,000 per day. The vessel was delivered on March 4, 2014. |
| (16) | This vessel has been time chartered-in for 10 to 13 months at Company's option at $5,000 per day for the first 40 days and $10,000 thereafter. The Company has the option to extend the charter for one year at $12,000 per day. The vessel was delivered on August 10, 2014. |
| (17) | This vessel has been time chartered-in until December 1, 2014 which may be extended for an additional two months at the Company's option. The charter hire rate is $15,900 per day until June 23, 2014 and $14,000 per day thereafter, including the option period. The vessel was delivered on January 23, 2014. |
| (18) | This vessel has been time chartered-in for 11 to 13 months at the Company's option at $13,750 per day. The Company has the option to extend the charter for an additional year at $14,750 per day. The vessel was delivered on March 14, 2014. |
| (19) | This vessel has been time chartered-in for three years at $14,200 per day. The Company has options to extend the charter for up to three consecutive one year periods at $15,200 per day, $16,200 per day and $17,200 per day, respectively. This vessel was delivered on April 13, 2014. |
| (20) | This vessel has been time chartered-in for 20 to 24 months at the Company's option at $14,250 per day. The Company has the option to extend the charter for an additional 10 to 12 months at $14,850 per day. This vessel was delivered on April 12, 2014. |
| (21) | This vessel has been time chartered-in for 10 to 13 months at the Company's option at $13,750 per day. This vessel was delivered on March 18, 2014. |
| (22) | This vessel has been time chartered-in for 21 to 25 months at the Company's option at $12,250 per day. The Company has the option to extend this time charter for one year at $13,000 per day. The vessel was delivered on September 13, 2014. |
| (23) | This vessel has been time chartered-in for three years at $14,000 per day. The Company has options to extend the charter for up to two consecutive one year periods at $15,000 per day and $16,000 per day, respectively. This vessel is expected to be delivered during the first half of 2015. |
| (24) | This vessel has been time chartered-in for 34 to 37 months at the Company's option at $12,000 per day. The Company has options to extend the charter for up to three consecutive one year periods at $12,750 per day, $13,600 per day and $14,800 per day, respectively. This vessel was delivered on March 31, 2014. |
About Scorpio Bulkers Inc.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. currently owns two Kamsarmax vessels, time charters-in 24 dry bulk vessels (one Handymax, one Ultramax, four Supramax, five Panamax, eight Kamsarmax and five Post-Panamax vessels) and has contracted for 78 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels, from shipyards in Japan, South Korea, China and Romania. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes. Additional information about the Company is available on the Company's website www.scorpiobulkers.com , which is not a part of this press release.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Contact: Scorpio Bulkers Inc. +377-9798-5715 (Monaco) +1-646-432-1675 (New York)
