Scorpio Bulkers Sinks Further into Red, Tankers’ Profit Rises
Due to a sluggish dry bulk shipping market, the owner and operator of bulk carriers Scorpio Bulkers has seen its profits tumble during the fourth quarter of 2015, reaching a net loss of USD 302 million, compared to a net loss of USD 72 million seen in the same period a year earlier.
For the full year of 2015, Scorpio Bulkers recorded a net loss of USD 510.8 million, going further in the red from 2014-recorded net loss of USD 116.6 million.
During February 2016, the company reached agreements in principle with its lenders not to make future principal repayments of USD 67.9 million in exchange for making advance principal repayments of USD 41.2 million in aggregate under its credit facilities.
Furthermore, the company reached agreements with all its lenders to permanently reduce the level of the minimum liquidity covenant in all its credit facilities.
However, in light of a flourishing tanker market, Scorpio Group’s other business unit, Scorpio Tankers, has seen its net income skyrocket from USD 0.5 million recorded in the fourth quarter of 2014, to USD 34.2 million in the same quarter of 2015.
For the year ended December 31, 2015, Scorpio Tankers’ net income was at USD 217.7 million, compared to USD 52.1 million seen a year earlier.
The company recently sold five of its 2014-built Medium Range tankers to the National Shipping Company of Saudi Arabia (Bahri) for a price tag of USD 166.5 million. The vessels in question are STI Powai, STI Lexington, STI Chelsea, STI Olivia and STI Mythos.