Scorpio Bulkers: One Cannot Run Indefinitely in a Market that is this Bad

Scorpio Bulkers' president, Robert Bugbee, asserts "it is still pretty uncertain when the market will recover."

Scorpio Bulkers Inc. (Scorpio Bulkers) Monday posted its 2015 third quarter results, showing a widened nine month net loss of $208.8 million in the period ending September 30th, compared to a net loss of $44.6 million during the same period of 2014.

The company reported a net loss of $18.9 million for the three months to September 30.

The result comes on the back of a dire 2015 for the dry bulk sector, with Scorpio Bulkers having already warned earlier this year it would "have to face the music" after admitting it had read the market wrong.

"We can watch the market, but one cannot run indefinitely in a market that is this bad," Scorpio Bulkers' president, Robert Bugbee, said during the company's earnings call.

"It is still pretty uncertain when the market will recover, and we will do what we have to do as management to ensure as best one can that we fulfill our commitments and get the company through to the end of the tunnel, however long that tunnel is."

Bugbee also said that the current business environment, with limited cash flow, low asset values, and a weak charter market, is such that the company does not see it as an appropriate time to fix charter contracts.

"We are always evaluating opportunities and we are not adverse to fixing longer term charters, but the market is weak and we do not feel that this is the time to fix contracts," explained Bugbee.

The company adds that it has secured some relief by way of financing 59 of 60 vessels so far, allowing it manage its current situation "without panicking."

In March, the company announced announced a full year net loss of $116.6 million for 2014.