World News
Scorpio Bulkers Sells 5 More Vessels, Announces Reverse Stock Split
New York-listed Scorpio Bulkers Inc. (Scorpio Bulkers) [NYSE:SALT] Wednesday announced that it has signed an agreement with unaffiliated third parties for the sale of five of its vessels, and will implement a one-for-twelve reverse stock split of the company's common shares.
Scorpio bulkers says it has agreed to the sale of three Capesize dry bulk vessels and two newbuilding Capesize dry bulk vessels, which are currently under construction for a total of about $167 million.
With the sale of its final five Capesizes, along with the dire future outlook for the sector, Scorpio Bulker's hopes of assembling the world's largest fleet of fuel-efficient dry bulkers would appear to be all but over.
Stock Split
In terms of the reverse stock split, the company says the one-for-twelve merger will see a par value of $0.01 per share, and a total reduction in the number of authorized common shares to 56,250,000.
"The purpose for seeking shareholder approval to effect the reverse stock split was to increase the market price of the Company's common shares," stated the Scorpio Bulkers, explaining that the company had received a notice from the New York Stock Exchange (NYSE) on December 17, stating that it was no longer in compliance with the exchange's continued listing standards.
The NYSE requires that the average closing share price of a company's common shares be at least $1.00 per share.
Scorpio Bulkers says that over a consecutive 30 trading-day period, ending December 15, 2015, the company had fallen below the NYSE $1.00 per share requirement.
"The Company believes that the increased market price for its common shares that is expected as a result of implementing the reverse stock split will cure this deficiency," explained Scorpio Bulkers.
The company's reverse stock split is said to have reduced the number of outstanding common shares from about 344.2 million shares to approximately 28.7 million shares.
In November, Ship & Bunker reported that Scorpio Bulkers had entered into agreements with unaffiliated third parties for the sale of a total of six vessels.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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