Scorpio Bulkers Narrows Loss
- Business & Finance
NYSE-listed dry bulk owner and operator Scorpio Bulkers has managed to cut its net loss to USD 20.6 million in the fourth quarter of 2016 ended December 31, compared with a net loss of USD 302 million seen in the same period a year earlier.
The company’s operating loss for the period also shrunk to USD 14 million from USD 291.1 million reported in the three months ended December 31, 2015.
Time Charter Equivalent (TCE) revenue was at USD 26.8 million for the fourth quarter, up from USD 21.7 million seen during the prior year quarter, mostly driven by a higher number of vessels operated in 2016. TCE revenue per day was USD 7,303 and USD 7,390 for the fourth quarter of 2016 and 2015, respectively.
For the full year, Scorpio Bulkers’ net loss was narrowed to USD 124.8 million from USD 510.7 million seen in the previous year, while its operating loss stood at USD 100.7 million, compared to USD 491.6 million in the respective periods.
Additionally, the company said that it reached agreements with shipyards to reduce the price to be paid under the shipbuilding contracts of one Kamsarmax vessel that was delivered in the first quarter of 2017 and another Kamsarmax, scheduled for delivery in the second quarter of the year, by around USD 2.5 million each.
During the fourth quarter of 2016 the company took delivery of a number of newbuildings, including the Ultramax SBI Apollo from Mitsui Engineering & Shipbuilding, and two Kamsarmax ships SBI Zumba and SBI Macarena from Hudong-Zhonghua.
Furthermore, five newbuildings joined the company’s fleet since the start of 2017, including two Ultramaxes SBI Samson and SBI Phoenix, and three Kamsarmaxes SBI Parapara, SBI Swing and SBI Mazurka.
The final vessel under the company’s newbuilding program is expected to be delivered in the second quarter of 2017.