World News
Scorpio in Talks to Finance Its 60th Newbuild Bulker
Scorpio Bulkers Inc. (Scorpio Bulkers) has announced that it has received a proposal from a European financial institution to secure partial financing on the sixtieth newbuild addition to its fleet.
While the financial institution involved has not yet been named, Scorpio Bulkers says that the proposed terms are consistent with the company's previously secured financing facilities on its other 59 vessels, noting that 2015's fourth quarter will see a final commitment.
"We have done the hard work on the financing, from both the debt and equity side, and now we can do whatever we need to do in measured steps," Robert Bugbee, Scorpio Bulkers' president, said during the company's third quarter earnings call.
"We can be proactive rather than reactive," he added, referring to the current difficult bulker market.
Bugbee notes that the company has escaped a great deal of pressure by securing the financing facilities for its newbuilds so far, and acknowledges that other similar companies who had been waiting for the market to improve are now feeling the strain.
"So we should be thankful for what we've received from the lenders and their support," concluded Bugbee.
Scorpio Bulkers is reported to have already taken delivery of 26 of the 60 vessels ordered under its newbuilding program, and it is noted that the remaining 34 vessels are being constructed at a collective price of $1.164 billion.
In June, Scorpio Bulkers announced that it was planning on selling 133 million shares priced at $1.50 each in a bid to raise $199.5 million.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 516.50 | 3.00 | 692.50 | 3.50 |
| Rotterdam | 506.00 | 1.50 | 713.50 | 14.00 |
| Houston | 501.50 | 0.00 | 732.50 | 10.00 |
| Fujairah | 511.00 | 3.00 | 750.00 | 2.50 |
| Global 20 Ports Average | 550.00 | 0.50 | 775.00 | 1.50 |
| Global 4 Ports Average | 508.50 | 2.00 | 722.00 | 1.50 |
| Global Average Bunker Price | 588.00 | 0.00 | 818.50 | 2.50 |
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