World News
Scorpio Bulkers Announces New Share Float Plans
Monaco-based Scorpio Bulkers Inc. [NYSE: SALT] Wednesday announced that it intends to offer, issue, and sell 21 million shares of common stock.
The release noted that Scorpio Services Holding Limited and a certain number of the company's directors have expressed interest in purchasing shares at the public offering price worth at least $15 million.
Net proceeds from the underwritten public offering will be used for "general corporate purposes."
Difficulties in the dry bulk markets have been well documented in the media, and last November Scoprio Bulkers President Robert Bugbee likened it to a "50 to 200 car pile-up."
That was when the Baltic Dry Index (BDI) stood at 560.
On its subsequent decline all the way to 290 the dry bulk owner's chief executive Emanuele Lauro said the crisis was at an "Armageddon level" and the company would simply "go under if this market persists."
Nevertheless, Lauro also stated then that if the company was one of the dry bulkers to survive the current downturn his company could enjoy a huge upside during a recovery.
With the BDI having staged a recovery of sorts, up to 393 as of Wednesday, today's news is presumably a positive sign that his firm feels it could be poised to do just that.
In January Ship & Bunker reported that Scorpio Bulkers had sold all of its 28 capesize vessels at a loss of $400 million, while shares of Scorpio Bulkers had lost 85 percent of their value over the past year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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