Scorpio Bulkers Inc. (NYSE:SALT), a leading provider of marine transportation of dry bulk commodities, has reported its results for the three and six months ended 30 June, 2017.
Results for the three and six months ended 30 June, 2017 and 2016
For the second quarter of 2017 the company’s GAAP net loss was US$13.4 million, or US$0.19 loss per diluted share. For the same period in 2016 the company’s GAAP net loss was US$24.7 million, or US$0.48 loss per diluted share.
For the six months ended 30 June, 2017, the company’s GAAP net loss was US$48.0 million, or US$0.67 loss per diluted share compared to a GAAP net loss of US$83.0 million, or US$2.05 loss per diluted share for the prior year period.
For the six months ended 30 June, 2017, the company’s adjusted net loss was US$29.8 million, or US$0.41 adjusted loss per diluted share, which excludes the impact of a write down of assets held for sale of US$17.7 million and a write off of deferred financing costs on the credit facility related to those specific vessels of US$0.5 million. For the six months ended 30 June, 2016, the company’s adjusted net loss was US$58.1 million, or US$1.43 adjusted loss per diluted share, which 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 (see Non-GAAP Financial Measures below).
Cash and cash equivalents
As of 21 July, 2017, the company had approximately US$148.3 million in cash and cash equivalents.
TCE revenue earned during 2Q17.
- The company’s kamsarmax fleet earned US$9273 per day.
- The company’s ultramax fleet earned US$8360 per day.
- Kamsarmax fleet: approximately US$8749 per day for 50% of the days.
- Ultramax fleet: approximately US$9005 per day for 56% of the days.
- SBI Jive, a kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.
Voyages fixed for 3Q17
Recent significant events
Reinstatement of debt amortisation and restoration of the ability to pay dividends.
During 2016, Scorpio Bulkers entered into agreements with certain of its lenders to, among other things; defer future principal repayments under certain of its loan agreements. In July 2017, the company reached agreements in principal with such lenders whereby principal repayments on the company’s debt totalling US$45.4 million that were previously deferred would be reinstated to their original form. Under these agreements in principal, the company will be required to make principal payments of approximately US$7.3 million in the third quarter of 2017 and quarterly principal payments ranging from US$1.0 million to US$4.5 million per quarter from the fourth quarter of 2017 through the fourth quarter of 2020.
All restrictions on the payment of dividends that were put in place as part of prior loan amendments have been removed from the company’s credit facilities.
Completion of the sale of vessels
During the second quarter of 2017, the company completed the sale of SBI Cakewalk and SBI Charleston for US$22.5 million each. Net cash proceeds is approximately US$24.2 million after repaying the outstanding loan balance of US$20.1 million under the US$39.6 million credit facility.
Newbuilding vessel delivery
During the second quarter of 2017, the company took delivery of the following newbuilding vessel:
All 46 vessels in Scorpio Bulkers newbuilding programme have been successfully delivered, all contracted amounts have been paid in full and we have no further obligations due to any shipyard.
Agreement to time charter-in one ultramax vessel
During the second quarter of 2017, the company entered into a time charter-in agreement with an unrelated third party for one ultramax vessel. The agreement is for two years at approximately US$10 125 per day. Scorpio Bulkers have the option to extend the agreement for one year at approximately US$10 885 per day. The time charter is expected to commence prior to the end of October 2017.
Debt and liquidity overview
The company’s outstanding debt balance, gross of unamortised deferred financing costs as of 30 June, 2017 and 21 July, 2017 are as follows (dollars in thousands).
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