Scorpio Bulkers Announces Fourth Quarter Results

0
(Image Courtesy: Scorpio Bulkers)

Scorpio Bulkers Inc. reported its results for the three months and year ended December 31, 2017. The Company also announced that its Board of Directors has declared a quarterly cash dividend of USD 0.02 per share on the Company’s common stock.

For the three months ended December 31, 2017, the Company’s GAAP net loss was USD 1.1 million, or USD 0.01 loss per diluted share. For the same period in 2016, the Company’s GAAP net loss was USD 20.6 million, or USD 0.29 loss per diluted share.

Total vessel revenues for the three months ended December 31, 2017 were of USD 51.1 million, compared to USD 26.8 million for the three months ended December 31, 2016. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fourth quarter of 2017 and 2016 were USD 22.9 million and USD 1.0 million, respectively.

For the year ended December 31, 2017, the Company’s GAAP net loss was USD 59.7 million, or USD 0.83 loss per diluted share compared to a GAAP net loss of USD 124.8 million, or USD 2.22 loss per diluted share for the prior year. EBITDA for the years ended December 31, 2017 and 2016 were USD 35.3 million and a loss of USD 45.7 million, respectively.

For the year ended December 31, 2017, the Company’s adjusted net loss was USD 41.6 million, or USD 0.57 adjusted loss per diluted share, which excludes the impact of a write down of assets held for sale of USD 17.7 million and a write off of deferred financing costs on the credit facility related to those specific vessels of USD 0.5 million.

For the year ended December 31, 2016, the Company’s adjusted net loss was USD 99.9 million, or USD 1.78 adjusted loss per diluted share, which excludes a loss/write off of vessels and assets held for sale of USD 12.4 million, the write off of deferred financing costs on credit facilities that will no longer be used of USD 2.5 million and a charterhire contract termination fee of USD 10.0 million. Adjusted EBITDA for the years ended December 31, 2017 and 2016 were USD 53.5 million and a loss of USD 20.8 million, respectively.

Vessel Acquisitions

The Company acquired nine Chinese built Ultramax dry bulk vessels in two separate transactions for a total consideration of USD 207.0 million, of which USD 186.7 million was paid in cash and USD 20.3 million was in the form of the Company’s common stock. Two of the vessels were built in 2014, four were built in 2015, one was built in 2016, and two were built in 2017. All nine vessels were delivered to the Company as of December 31, 2017.

The Company also entered into an agreement to purchase one Kamsarmax dry bulk vessel for USD 25.5 million, of which USD 18.8 million remains unpaid at December 31, 2017. The Kamsarmax vessel is a resale unit which is expected to be delivered from Jiangsu New Yangzijiang Shipbuilding Co Ltd in China in the second quarter of 2018.

Total operating expenses for 2017 were USD 187.8 million compared to USD 179.1 million in 2016, which included USD 17.7 million and USD 12.4 million, respectively, related to asset disposals. The year over year increase is primarily due to an USD 18.6 million increase in vessel operating costs resulting from the increase in the size of Scorpio Bulkers’ fleet.

Sea News, February 6