Skip to main content

Scorpio Bulkers Inc. announces 4Q16 results

Published by
Dry Bulk,


Results for the three months ended 31 December 31, 2016 and 2015

For the three months ended December 31, 2016, the company's GAAP net loss was US$20.6 million, or US$0.29 loss per diluted share. For the same period in 2015 the company's GAAP net loss was US$302.0 million, or US$11.02 loss per diluted share.

There were no non-GAAP adjustments to earnings in the three months ended 31 December, 2016.

For the three months ended 31 December, 2015, the company's adjusted net loss was US$22.0 million or US$0.80 adjusted loss per diluted share, which excludes a write down of assets held for sale of US$271.3 million and the write off of deferred financing costs on credit facilities that will no longer be used of US$8.7 million, or US$10.22 loss per diluted share (see Non-GAAP Financial Measures below).

Results for the years ended 31 December, 2016 and 2015

For the year ended 31 December, 2016, the company had a GAAP net loss of US$124.8 million, or US$2.22 loss per diluted share. For the year ended 31 December, 2016, the company's adjusted net loss was US$99.9 million, or US$1.78 adjusted loss per diluted share. This excludes a loss/write off of vessels and assets held for sale of US$12.4 million, the write off of deferred financing costs on credit facilities that will no longer be used of US$2.5 million and a charterhire contract termination fee of US$10.0 million. These adjustments total a US$0.44 loss per diluted share (see Non-GAAP Financial Measures below).

For comparison, in the year ended 31 December, 2015, the company had a GAAP net loss of US$510.8 million, or US$23.86 loss per diluted share. The Company's adjusted net loss was US$71.8 million or US$3.36 adjusted loss per diluted share. This excludes a write down on assets held for sale of US$422.9 million and the write off of deferred financing costs on credit facilities that will no longer be used of US$16.1 million, or US$20.50 loss per share (see Non-GAAP Financial Measures below).

Cash and cash equivalents

As of 3 February, 2017, the Company had approximately US$141.9 million in cash and cash equivalents.

TCE Revenue Earned during the Fourth Quarter of 2016

  • Kamsarmax fleet earned US$7401 per day.
  • Ultramax fleet earned US$7238 per day.
  • Voyages Fixed thus far in the First Quarter of 2017

  • Kamsarmax fleet: approximately US$8414 per day for 75% of the days.
  • Ultramax fleet: approximately US$8479 per day for 73% of the days.
  • Newbuilding programme

    The company’s newbuilding programme consists of contracts for the construction of 48 dry bulk vessels, comprised of 28 ultramax newbuildings, and 20 kamsarmax newbuildings. As of February 3, 2017, we have taken delivery of all of the ultramax vessels and 19 kamsarmax vessels. The construction price for the remaining kamsarmax vessel is US$25.7 million, of which US$18.6 million remains unpaid. Installment payments of US$1.4 million and US$17.2 million are scheduled for the first and second quarters of 2017, respectively, the latter of which will occur upon the delivery of the vessel and coincide with the expected drawdown of up to US$13.2 million of available debt.

     

    Financial results for the three months ended December 31, 2016 compared to the three months ended 31 December, 2015

    The company had a GAAP net loss of US$20.6 million, or US$0.29 loss per diluted share for the fourth quarter of 2016 compared with a GAAP net loss of US$302.0 million, or US$11.02 loss per diluted share for the fourth quarter of 2015. Excluding a write down of assets held for sale of US$271.3 million and the write off of deferred financing costs on credit facilities that will no longer be used of US$8.7 million, adjusted net loss for the fourth quarter of 2015 was US$22.0 million or US$0.80 adjusted loss per diluted share. There were no non-GAAP adjustments to earnings in the fourth quarter of 2016.

    Time charter equivalent (TCE) revenue, a Non-GAAP financial measure, is vessel revenues less voyage expenses (including bunkers, port charges, broker fees and other miscellaneous expenses that we are unable to recoup under time charter and pool arrangements). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.

    TCE revenue was US$26.8 million for the fourth quarter of 2016 and is associated with a day weighted average of 41 vessels owned and two vessels time chartered-in compared to US$21.7 million during the previous year quarter, which was associated with a day weighted average of 27 vessels owned and 10 vessels time chartered-in. TCE revenue per day was US$7303 and US$7390 for the fourth quarter of 2016 and 2015, respectively. While daily TCE rates are down compared to the prior year period, rates have recovered from the all-time lows experienced in the beginning of 2016. Overall TCE revenue increased versus the prior year period despite the lower rates due to the increase in revenue days associated with the growth of our fleet.

    Vessel operating costs were US$19.0 million and included approximately US$0.6 million of takeover costs associated with new deliveries, and US$0.4 million of non-recurring expenses and related to 41 vessels owned, on average, during the period. Takeover costs will be eliminated upon the delivery of the final vessel in the second quarter of 2017. Vessel operating costs for the prior year quarter were US$14.6 million and related to 27 vessels owned, on average, during the period. Sequentially, vessel operating costs remained relatively flat from the third to fourth quarter of 2016 despite an increase in average vessels owned as certain annual maintenance and class certifications were performed during the third quarter of 2016. Daily operating costs, excluding take over and other non-recurring costs, decreased from US$5330 in the third quarter of 2016 to US$5037 in the fourth quarter.

    Charterhire expense decreased to US$2.6 million in the fourth quarter of 2016 from US$10.8 million in the prior year period, reflecting the reduction in the number of vessels time chartered-in from 10 vessels to two vessels, on a day weighted average, respectively. One of the remaining time chartered-in vessels was redelivered in February 2017 and the other is expected to be redelivered in July 2017.

    Depreciation increased to US$10.6 million in the fourth quarter of 2016 from US$6.6 million in the previous year period, reflecting the increase in our weighted average vessels owned to 41 from 27.

    General and administrative expense decreased to US$8.7 million from US$9.6 million in the prior year period as decreases in restricted stock amortisation, due to the run off of awards granted at a higher fair value, and legal expenses were offset by an increase in commercial management fees, reflecting the growth of the company’s fleet. During the fourth quarter of 2015, a loss of US$271.3 million was recorded associated with the sale of 11 capesize vessels and newbuilding capesize dry bulk vessels under construction and wrote off US$8.7 million of deferred financing costs accumulated on two credit facilities for which the commitments were reduced pursuant to the removal from the facilities of certain vessels that have been sold.

    Read the article online at: https://www.drybulkmagazine.com/dry-bulk/07022017/scorpio-bulkers-inc-announces-4q16-results/


     

    Embed article link: (copy the HTML code below):