Scorpio Bulkers Reports $116.6M Loss for 2014

by Ship & Bunker News Team
Thursday March 5, 2015

Scorpio Bulkers Inc. (Scorpio Bulkers) Wednesday announced a full year net loss of $116.6 million for 2014.

Voyage expenses, understood to include bunkers and port fees, were $3.6 million for the year.

Vessel revenue for 2014 was $49.0 million while the cost of chartering in vessels alone reached $73.2 million.

The loss includes a $55.5 million loss on the sale of certain contracts for 7 newbuild bulk carriers, six of which were converted to contracts for LR2 product tankers and sold or put under option to Scorpio Bulkers' sister company, Scorpio Tankers Inc. (Scorpio Tankers).

Scorpio Bulkers said it had also agreed to convert contracts for three more Capesize bulkers currently under construction into LR1 tankers, but Scorpio Tankers does not intend to purchase these.

In addition the company booked a non-cash amortisation charge of $23.9 million in relation to fair value adjustments to restricted stock.

Scorpio Bulkers began operations in March 2013 and has no comparable prior year figures for comparison.

The company did not offer any market commentary along with its results but others have pointed to a very tough dry bulk market at present, with Copenship recently filing for bankruptcy and the Baltic Dry Index hitting all time lows.

Last month, Scorpio Tankers sounded a note of optimism for its side of the group, saying "we think the product market will not just be stronger but it will be so for longer."

Ship & Bunker News Team
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