Scorpio Bulkers (SALT) Reports Sale of Two Kamsarmax Vessels for $48M

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  • Scorpio Bulkers Inc. entered into agreements to sell two Kamsarmax vessels for $48 million.
  • It also provided an update to Time Charter Equivalent (“TCE”) rates for the first quarter of 2019.
  • The Company entered into agreements with unaffiliated third parties to sell the SBI Electra and SBI Flamenco.
  • The Company’s liquidity will increase by approximately $18.6 million after the repayment of the Vessels’ outstanding debt.

On March 11, Scorpio Bulkers Inc. 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, reports the Street Insider

Agreement terms

The Company has entered into agreements with unaffiliated third parties to sell the SBI Electra and SBI Flamenco, two 2015 Chinese built Kamsarmax 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.

Fleet Details TCE % of Days
1 Kamsarmax fleet $11,000 90%
2 Ultramax fleet $9,100 90%

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.

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Source: streetinsider

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