Scorpio Bulkers Slashes Full-Year Loss
- Business & Finance
2017 has been a year of recovery for Monaco-based bulker owner Scorpio Bulkers which has managed to cut its loss for the fourth quarter and full year when compared to corresponding figures from 2016.
The company said that its net loss for the fourth quarter of 2017 stood at USD 1.1 million, much lower from USD 20.6 million reported in the same quarter in 2016.
Total vessel revenues for the fourth quarter of 2017 reached USD 51.1 million, an increase of USD 24.3 million from USD 26.8 million in the fourth quarter of 2016.
For 2017, the company’s GAAP net loss was USD 59.7 million, significantly reduced when compared to the loss of USD 124.8 million posted for the prior year.
Full-year vessel revenues for 2017 came at USD 162.2 million, an increase of USD 83.8 million year-on-year.
During the quarter, Scorpio Bulkers acquired nine Chinese built Ultramaxes in two separate transactions spending USD 207 million. All nine vessels were delivered to the company as of December 31, 2017.
The company also bought a Kamsarmax dry bulk vessel for USD 25.5 million, of which USD 18.8 million remains unpaid. The Kamsarmax vessel is a resale unit which is expected to be delivered from Jiangsu New Yangzijiang Shipbuilding in the second quarter of 2018.
On the financing side, in December, the company finalized the senior secured credit facility for up to USD 85.5 million. The loan was used to finance a portion of the USD 142.5 million purchase price of six Ultramax vessels acquired from Golden Ocean Group Limited (GOGL).
Scorpio received a commitment for the loan from Nordea Bank AB (publ), New York Branch, and Skandinaviska Enskilda Banken AB in October 2017.
The facility has a maturity date of February 15, 2023 and bears interest at LIBOR plus a margin of 2.85% per annum.
In December, Scorpio also secured a loan of USD 38.7 million.