Scorpio Bulkers in Talks to Secure Scrubber Financing
- Business & Finance
Monaco-based owner and operator of dry bulkers Scorpio Bulkers is in discussions with its existing lenders and leasing companies on securing financing for the company’s scrubber installation program worth USD 41.9 million.
In order to comply with the impending entrance into force of the 2020 sulphur cap, last year the shipowner entered into a deal to buy scrubbers for 18 of its vessels in 2019 and for 10 of its vessels in 2020.
The systems that are being fitted are of ‘hybrid ready’ design, which allows them to be upgraded to a ‘closed loop’ configuration at a future date. Scorpio also has an option to purchase scrubbers for up to 18 additional vessels in 2020.
” These discussions are ongoing, however the company expects to be able to make announcements within the first quarter of 2019,” Scorpio said announcing the company’s business performance results.
For the fourth quarter of 2018, Scorpio’s GAAP net loss was USD 7.4 million, much wider when compared to GAAP net loss USD 1.1 million booked in the corresponding quarter of 2017. Total vessel revenues for the fourth quarter of 2018 were USD 65.2 million, compared to USD 51.1 million a year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarters of 2018 and 2017 were USD 23.3 million and USD 22.9 million, respectively.
For the year ended December 31, 2018, the company’s GAAP net loss was USD 12.7 million, slashed when compared to the net loss USD 59.7 million reported for 2017. Total vessel revenues for 2018 were USD 242.5 million, compared to USD 162.2 million for 2017. EBITDA for the years ended December 31, 2018 and 2017 were USD 100.6 million and USD 35.3 million, respectively.