Scorpio Bulkers To Sell Two Kamsarmax Vessels For $48 Million

Scorpio Bulkers Inc. (“Scorpio Bulkers,” or the “Company”) announced that the Company has entered into agreements to sell two Kamsarmax vessels for $48 million and provided an update to Time Charter Equivalent (“TCE”) rates for the first quarter of 2019.

scorpio tankers
Representation Image – Credits: scorpiotankers.com

Vessel Sales

The Company has entered into agreements with unaffiliated third parties to sell the SBI Electra and SBI Flamenco, two 2015 Chinese built Kamsarmax vessels (the “Vessels”), for approximately $48 million in aggregate. Delivery of the Vessels is estimated to take place in the second quarter of 2019. It is estimated that the Company’s liquidity will increase by approximately $18.6 million after the repayment of the Vessels’ outstanding debt.

Emanuele Lauro, the Company’s Chairman and Chief Executive Officer, commented, “We believe the sale of these two vessels will allow the Company more financial flexibility.”

TCE Rates

Below is a summary of the approximate average daily TCE rates for voyages fixed thus far for the first quarter of 2019. The TCE rates include vessels on previously announced time charter-out agreements.

SCORPIO BULKERS INC. ANNOUNCES THE SALE OF TWO KAMSARMAX VESSELS FOR $48 MILLION AND UPDATES TO THE FIRST QUARTER OF 2019 TCE RATES
Image Credit: scorpiobulkers.com

“After a down-trending month of January and a very weak February, time charter rates have consistently improved for the last few weeks as demonstrated by the BPI and BSI indexes,” said Emanuele Lauro.

Reference: scorpiobulkers.com

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