Scorpio Bulkers Orders 11+ Ships to Start Operations

by Ship & Bunker News Team
Friday July 26, 2013

Scorpio Bulkers Inc., a newly formed sister company of Scorpio Tankers, says it has made orders for between 11 and 14 fuel-efficient newbuilding bulkers, at a price of about $27 million each, from three Chinese shipyards.

The company has reached deals with ChengXi Shipyard CO. Ltd. ("ChengXi"), Dalian COSCO KHI Ship Engineering Co. Ltd. ("DACKS"), and Nantong COSCO KHI Ship Engineering Co. Ltd. ("NACKS") for the 61,000 to 64,000 dead weight tonne (dwt) Ultramax vessels.

Two vessels are scheduled for delivery in the first quarter of 2015, another one in the second quarter of that year, five in the third quarter, and two in the fourth quarter, with one more to be delivered in the first quarter of 2016.

If the additional three vessel orders are confirmed, they would be delivered in the second and third quarter of 2016.

The company raised $250 million in gross proceeds through a private placement completed on June 27, saying it would use the money to finance ship purchases and chartering operations and for general corporate purposes.

The company also said it hopes to be listed on the New York Stock Exchange within six to 12 months.

"We see the opportunity as here and now," Robert Bugbee, president of Scorpio, told industry news site TradeWinds.

"Speed and momentum is extremely important in shipping as markets start to recover."