Media

Scorpio Bulkers Inc. Announces Financial Results for the First Quarter of 2014

Apr 30, 2014

MONACO — (Marketwired) — 04/30/14 — Scorpio Bulkers Inc. (NYSE: SALT) (OSLO-OTC: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months ended March 31, 2014. The Company had no operations from the period from March 20, 2013 (date of inception) to March 31, 2013.

Results for the three months ended March 31, 2014

For the three months ended March 31, 2014, the Company had a net loss of $10.7 million, or $0.08 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $5.1 million.

Emanuele Lauro, Chairman of the Board and Chief Executive Officer, commented, “Dry bulk rates softened through the first quarter, driven by customers reducing inventories, political disruptions among several exporting countries, and the traditional seasonal lull before accelerated grain exports from the southern hemisphere. Each of these factors are temporary, and our confidence in the longer-term fundamentals of dry bulk shipping remains intact: net supply growth of the world fleet will be muted for the next several years while demand for long haul shipments is improving given that the higher quality and cheaper commodities are far from the primary customers.

“Our time-chartered vessels are positioning themselves for the South American grain season, and our vessels under construction have increased in value. As a result, we feel well-positioned as we look ahead.”

Recent Significant Events

Underwriters Exercise Option to Purchase Additional Shares

In January 2014, the underwriters in the Company’s initial public offering, which closed on December 17, 2013, exercised in full their option to purchase an additional 4,695,000 common shares at the public offering price of $9.75 per share. The sale of these common shares resulted in net proceeds to the Company of approximately $42.6 million, after deducting underwriters’ discounts and commissions.

Newbuilding vessel orders

In January 2014, the Company announced that it had entered into agreements for the purchase of 20 Capesize dry bulk vessels and two Kamsarmax dry bulk vessels. The total purchase price for these 22 vessels is approximately $1,173 million and the deliveries of the vessels are expected to occur between the first quarter of 2015 and the third quarter of 2016.

In March 2014, the Company agreed to acquire five Capesize dry bulk vessels under construction at two South Korean shipyards. The aggregate purchase price for these five vessels is approximately $306 million and the deliveries are expected to occur between the second quarter of 2015 and the first quarter of 2016.

Time chartered-in vessels

In February and March 2014, the Company announced that that it has agreed to time charter-in 17 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:

 

Vessel Type    Year      DWT     Where Built    Daily Base   Earliest Expiry
               Built                               Rate
Post-Panamax   2010      93,000     China        $13,250      28-Oct-14 (1)
Post-Panamax   2011      93,000     China        $13,500      31-Oct-14 (2)
Kamsarmax      2009      82,500     Japan        $14,500      28-Feb-15 (3)
Kamsarmax      2012      82,000  South Korea     $15,500      31-Jul-17 (4)
Kamsarmax      2012      81,500  South Korea     $14,500      31-Dec-14 (5)
Kamsarmax      2011      81,500  South Korea     $15,000      31-Jan-16 (6)
Kamsarmax      2012      81,000  South Korea     $15,000      28-Feb-15 (7)
Kamsarmax      2012      79,500     China        $14,000       1-Jan-15 (8)
Panamax        2004      77,500     China        $14,000      31-Jan-17 (9)
Panamax        2014      77,000     Japan        $16,000      31-Mar-15 (10)
Panamax        2009      76,500     Japan     See Note (11)   1-Dec-14 (11)
Panamax        2007      75,500  South Korea     $13,750      28-Feb-15 (12)
Ultramax       2010      61,000     Japan        $14,200      1-Apr-17 (13)
Supramax       2010      58,000     China        $14,250      31-Dec-16 (14)
Supramax       2011      58,000     China        $13,750      31-Jan-15 (15)
Supramax       2015      55,000     Japan        $14,000      30-Jun-18 (16)
Handymax       2002      48,500     Japan        $12,000      31-Jan-17 (17)
Total TC DWT          1,261,000

(1)  This vessel has been time chartered-in for eight to 10 months at
     Company's option at $13,250 per day. The vessel was delivered on
     February 23, 2014.
(2)  This vessel has been time chartered-in for seven to nine months at the
     Company's option at $13,500 per day. The vessel was delivered on March
     24, 2014.
(3)  This vessel has been time chartered-in for 11 to 13 months at the
     Company's option at $14,500 per day. The Company has the option to
     extend this time charter for one year at $15,500 per day. The vessel
     was delivered on March 8, 2014.
(4)  This vessel has been time chartered-in for 39 to 44 months at the
     Company's option at $15,500 per day. The Company has the option to
     extend this time charter for one year at $16,300 per day. The vessel
     was delivered on April 23, 2014.
(5)  This vessel has been time chartered-in for 10 to 12 months at Company's
     option at $14,500 per day. The vessel was delivered on February 7,
     2014.
(6)  This vessel has been time chartered-in for 23 to 28 months at the
     Company's option at $15,000 per day. The Company has the option to
     extend the charter for an additional 11 to 13 months at $16,000 per
     day. This vessel was delivered on February 15, 2014.
(7)  This vessel has been time chartered-in for 12 to 14 months at Company's
     option at $15,000 per day. The vessel was delivered on February 10,
     2014.
(8)  This vessel has been time chartered-in for 11 to 14 months at the
     Company's option at $14,000 per day. The Company has the option to
     extend the charter for an additional 11 to 14 months at $14,750 per
     day. This vessel was delivered on February 23, 2014.
(9)  This vessel has been time chartered-in for 32 to 38 months at the
     Company's option at $14,000 per day. The vessel is expected to be
     delivered by June 2014.
(10) This vessel has been time chartered-in for 12 to 13 months at Company's
     option at $16,000 per day. The vessel was delivered on March 4, 2014.
(11) This vessel has been time chartered-in until December 1, 2014 which may
     be extended for an additional two months at the Company's option. The
     charter hire rate is $15,900 per day until June 23, 2014 and $14,000
     per day thereafter, including the option period. The vessel was
     delivered on January 23, 2014.
(12) This vessel has been time chartered-in for 11 to 13 months at the
     Company's option at $13,750 per day. The Company has the option to
     extend the charter for an additional year at $14,750 per day. The
     vessel was delivered on March 14, 2014.
(13) This vessel has been time chartered-in for three years at $14,200 per
     day. The Company has options to extend the charter for up to three
     consecutive one year periods at $15,200 per day, $16,200 per day and
     $17,200 per day, respectively. This vessel was delivered on April 13,
     2014.
(14) This vessel has been time chartered-in for 20 to 24 months at the
     Company's option at $14,250 per day. The Company has the option to
     extend the charter for an additional 10 to 12 months at $14,850 per
     day. This vessel is expected to be delivered during the second quarter
     of 2014.
(15) This vessel has been time chartered-in for 10 to 13 months at the
     Company's option at $13,750 per day. This vessel was delivered on March
     18, 2014.
(16) This vessel has been time chartered-in for three years at $14,000 per
     day. The Company has options to extend the charter for up to two
     consecutive one year periods at $15,000 per day and $16,000 per day,
     respectively. This vessel is expected to be delivered during the first
     half of 2015.
(17) This vessel has been time chartered-in for 34 to 37 months at the
     Company's option at $12,000 per day. The Company has options to extend
     the charter for up to three consecutive one year periods at $12,750 per
     day, $13,600 per day and $14,800 per day, respectively. This vessel was
     delivered on March 31, 2014.

 

Completion of Exchange Offer

On February 12, 2014, the Company completed its offer to exchange an aggregate of 96,065,411 unregistered common shares issued in equity private placements between July and October 2013 for an equivalent number of registered common shares. Pursuant to the exchange offer, holders of 95,766,779 unregistered common shares tendered such shares in exchange for registered common shares representing participation of 99.7%. The Company expects to terminate the Oslo OTC listing of its common shares during the second quarter of 2014.

$67.5 million Loan Facility

On February 25, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility (the Facility) of up to $67.5 million. The Facility will be used to finance up to 60% of the purchase price upon delivery of two Ultramax and two Kamsarmax vessels currently under construction. The Facility has a final maturity of seven years from the date of delivery of each vessel. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.

$39.6 million Loan Facility

On April 24, 2014, the Company received a commitment from a leading European financial institution for a Loan Facility (the Facility) of up to $39.6 million. The Facility will be used to finance up to 55% of the fair market value upon delivery of two Kamsarmax vessels currently under construction. The Facility has a final maturity of five years from the signing of the facility documentation. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Facility remains subject to customary conditions precedent, including negotiation and execution of final documentation.

Conference Call

The Company will have a conference call on April 30, 2014 at 11:00 AM Eastern Daylight Time and 5:00 PM Central European Time.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888) 713-4485 (U.S.) or 1(913) 312-1503 (International). The conference participant passcode is 3339559. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

Audio Webcast:

There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: http://www.visualwebcaster.com/event.asp?id=99107

Current Liquidity

As of April 28, 2014, the Company had $459.2 million in cash and cash equivalents.

Newbuilding Program

The aggregate purchase price of our 79 vessels contracted to be constructed is approximately $3,071.5 million. As of April 28, 2014, we have paid a total of $660.4 million in installment payments due under our shipbuilding contracts for our Initial Fleet. The remaining $2,411.1 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 28 Ultramax newbuildings, 23 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:

 

     Q2 2014     $  175.5 million **
     Q3 2014         59.8 million
     Q4 2014         48.3 million
     Q1 2015        218.6 million
     Q2 2015        196.4 million
     Q3 2015        509.6 million
     Q4 2015        394.5 million
     Q1 2016        342.8 million
     Q2 2016        343.4 million
     Q3 2016        122.2 million

                $ 2,411.1 million

 

* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from April 28, 2014 to June 30, 2014.

Explanation of Components of First Quarter of 2014 Financial Results

For the three months ended March 31, 2014, the Company recorded a net loss of $10.7 million.

Time charter equivalent, or TCE revenue, a non-GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management.

TCE revenue was $2.4 million for the three months ended March 31, 2014, associated with chartering in 12 vessels, for which the time charter equivalent revenue per day was $5,715 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by the integration of the time chartered vessels into our fleet which required significant time and fuel as they had to be repositioned for their first voyages.

Charterhire expense was $6.7 million for the three months ended March 31, 2014 relating to the time chartered-in vessels described above. See the Company’s Fleet List below for the terms of these agreements.

General and administrative expense was $6.9 million for the three months ended March 31, 2014. Such amount included $5.1 million of restricted stock amortization (noncash) and the balance was for payroll, directors’ fees, professional fees and insurance.

 

                   Scorpio Bulkers Inc. and Subsidiaries
                       (a development stage company)
                    Consolidated Statement of Operations
               (Dollars in Thousands, Except Per Share Data)

                                                             Three Months
                                                            Ended March 31,
                                                                 2014
Revenue:
Vessel revenue                                             $          5,467
                                                           ----------------

Operating expenses:
Voyage expenses                                                       3,048
Charterhire expense                                                   6,679
General and administrative expenses                                   6,897
                                                           ----------------
Total operating expenses                                             16,624
                                                           ----------------

Operating loss                                                      (11,157)
                                                           ----------------

Other income (expense):
Interest income                                                         524
Foreign exchange loss                                                   (23)
Other expense, net                                                        -
                                                           ----------------
Total other income                                                      501
                                                           ----------------

Net loss                                                   $        (10,656)
                                                           ================

Loss per common share- basic and diluted (1)               $          (0.08)

Weighted-average shares outstanding- basic and diluted (1)      132,610,911

(1)  Diluted weighted-average shares outstanding, which would include the
     impact of restricted shares, for the three months ended March 31, 2014
     would be anti-dilutive since the Company is in a net loss position. As
     such, there is no difference between basic and diluted earnings per
     share for these periods.



                   Scorpio Bulkers Inc. and Subsidiaries
                       (a development stage company)
                         Consolidated Balance Sheet
               (Dollars in Thousands, Except Per Share Data)


                                                 March 31,     December 31,
Assets                                              2014           2013
                                               -------------  -------------

Current assets
  Cash and cash equivalents                    $     528,013$     733,896
  Due from charterers                                 10,546              -
  Prepaid expenses and other current assets            2,087             61
                                               -------------  -------------
Total current assets                                 540,646        733,957
                                               -------------  -------------

Non-current assets
  Vessels under construction                         661,266        371,692
  Other assets                                         2,376             35
                                               -------------  -------------
Total non-current assets                             663,642        371,727
                                               -------------  -------------

Total assets                                   $   1,204,288$   1,105,684
                                               =============  =============

Liabilities and shareholders' equity

Current liabilities
  Accounts payable and accrued expenses        $      63,140$       1,472
                                               -------------  -------------
Total current liabilities                             63,140          1,472
                                               -------------  -------------

Non-current liabilites                                     -              -
                                               -------------  -------------

Total liabilities                                     63,140          1,472
                                               -------------  -------------

Shareholders' equity
  Common stock, $0.01 par value per share;
   authorized 450,000,00 shares; issued and
   outstanding 140,179,301 and 133,403,931
   shares as of March 31, 2014 and December
   31, 2013, respectively                              1,402          1,334
  Paid-in capital                                  1,156,709      1,109,185
  Deficit accumulated during the development
   stage                                             (16,963)        (6,307)
                                               -------------  -------------
Total shareholders' equity                         1,141,148      1,104,212
                                               -------------  -------------

Total liabilities and shareholders' equity     $   1,204,288$   1,105,684
                                               =============  =============



                   Scorpio Bulkers Inc. and Subsidiaries
                       (a development stage company)
                    Consolidated Statement of Cash Flows
                           (Dollars in Thousands)

                                                             Three Months
                                                            Ended March 31,
                                                                 2014
Operating activities
Net loss                                                   $        (10,656)
Restricted stock amortization                                         5,079
Increase in amounts due from charterers                             (11,874)
Increase in prepaid expenses and other current assets                (2,026)
Increase in accounts payable and accrued expenses                     3,608
                                                           ----------------
Net cash used in operating activities                               (15,869)
                                                           ----------------

Investing activities
Payments for vessels under construction                            (231,514)
                                                           ----------------
Net cash used in investing activities                              (231,514)
                                                           ----------------

Financing activities
Proceeds from issuance of common stock                               42,513
Debt issue costs paid                                                (1,013)
                                                           ----------------
Net cash provided by financing activities                            41,500
                                                           ----------------

Decrease in cash and cash equivalents                              (205,883)
Cash at cash equivalents, beginning of period                       733,896
                                                           ----------------
Cash and cash equivalents, end of period                   $        528,013
                                                           ================



                    Scorpio Bulkers Inc. and Subsidiaries
                        (a development stage company)
                            Other Operating Data
                 (Dollars in Thousands, Except Per Day Data)

                                                              Three Months
                                                             Ended March 31,
                                                                  2014
Time Charter Equivalent Revenue (1):
Vessel revenue                                              $          5,467
Voyage expenses                                                        3,048
                                                            ----------------
  Time charter equivalent revenue                           $          2,419
                                                            ================

Time charter equivalent revenue attributable to:
  Kamsarmax                                                 $          2,233
  Ultramax                                                               186
                                                            ----------------
                                                            $          2,419
                                                            ================

Revenue days (1):
  Kamsarmax                                                            408.3
  Ultramax                                                              15.0
                                                            ----------------
  Combined                                                             423.3
                                                            ================

TCE per revenue day (1):
  Kamsarmax                                                 $          5,469
  Ultramax                                                  $         12,400
  Combined                                                  $          5,715

(1)  We define Time Charter Equivalent (TCE) revenue as voyage revenues less
     voyage expenses. Such TCE revenue, divided by the number of our
     available days during the period, or revenue days, is TCE per revenue
     day, which is consistent with industry standards. TCE per revenue day
     is a common shipping industry performance measure used primarily to
     compare daily earnings generated by vessels on time charters with daily
     earnings generated by vessels on voyage charters, because charter hire
     rates for vessels on voyage charters are generally not expressed in
     per-day amounts while charter hire rates for vessels on time charters
     generally are expressed in such amounts.



                       Fleet List as of April 30, 2014

   Capesize          Expected
   Vessel Name     Delivery (1)    DWT    Shipyard
 1 SBI Puro            Q1-15     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 2 SBI Valrico         Q2-15     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 3 SBI Maduro          Q3-15     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 4 SBI Belicoso        Q4-15     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 5 SBI Corona          Q1-16     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 6 SBI Diadema         Q2-16     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 7 SBI Estupendo       Q3-16     180,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 8 SBI Montesino       Q2-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
 9 SBI Magnum          Q3-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
10 SBI Montecristo     Q3-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
11 SBI Aroma           Q3-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
12 SBI Cohiba          Q4-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
13 SBI Habano          Q4-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
14 SBI Lonsdale        Q1-16     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
15 SBI Partagas        Q1-16     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
16 SBI Parejo          Q2-16     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
17 SBI Toro            Q2-16     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
18 SBI Tuscamina       Q2-16     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
19 SBI Camacho         Q2-15     180,000  Sungdong Shipbuilding & Marine
                                           Engineering Co., Ltd.
20 SBI Churchill       Q4-15     180,000  Daewoo Mangalia Heavy Industries
                                           S.A.
21 SBI Perfecto        Q1-16     180,000  Daewoo Mangalia Heavy Industries
                                           S.A.
22 SBI Presidente      Q4-15     180,000  Daewoo Mangalia Heavy Industries
                                           S.A.
23 SBI Panatela        Q1-16     180,000  Daewoo Mangalia Heavy Industries
                                           S.A.
24 SBI Robusto         Q2-16     180,000  Daewoo Mangalia Heavy Industries
                                           S.A.
25 SBI Behike          Q3-15     180,000  Daehan Shipbuilding Co., Ltd.
26 SBI Monterray       Q4-15     180,000  Daehan Shipbuilding Co., Ltd.
27 SBI Macanudo        Q4-15     180,000  Daehan Shipbuilding Co., Ltd.
28 SBI Cuaba           Q1-16     180,000  Daehan Shipbuilding Co., Ltd.

   Capesize NB DWT              5,040,000



   Kamsarmax
                     Expected
   Vessel Name     Delivery (1)    DWT    Shipyard
 1 SBI Cakewalk        Q2-14      82,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 2 SBI Charleston      Q3-14      82,000  Shanghai Waigaoqiao Shipbuilding
                                           Co., Ltd.
 3 SBI Samba           Q1-15      84,000  Imabari Shipbuilding Co., Ltd.
 4 SBI Rumba           Q3-15      84,000  Imabari Shipbuilding Co., Ltd.
 5 SBI Electra         Q3-15      82,000  Jiangsu Yangzijiang Shipbuilding
                                           Co., Ltd.
 6 SBI Flamenco        Q3-15      82,000  Jiangsu Yangzijiang Shipbuilding
                                           Co., Ltd.
 7 SBI Rock            Q4-15      82,000  Jiangsu Yangzijiang Shipbuilding
                                           Co., Ltd.
 8 SBI Twist           Q1-16      82,000  Jiangsu Yangzijiang Shipbuilding
                                           Co., Ltd.
 9 SBI Salsa           Q3-15      81,600  Tsuneishi Group (Zhoushan)
                                           Shipbuilding Inc.
10 SBI Merengue        Q1-16      81,600  Tsuneishi Group (Zhoushan)
                                           Shipbuilding Inc.
11 SBI Capoeira        Q3-15      82,000  Hudong-Zhonghua (Group) Co., Ltd.
12 SBI Conga           Q3-15      82,000  Hudong-Zhonghua (Group) Co., Ltd.
13 SBI Bolero          Q3-15      82,000  Hudong-Zhonghua (Group) Co., Ltd.
14 SBI Carioca         Q4-15      82,000  Hudong-Zhonghua (Group) Co., Ltd.
15 SBI Sousta          Q4-15      82,000  Hudong-Zhonghua (Group) Co., Ltd.
16 SBI Reggae          Q1-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
17 SBI Lambada         Q1-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
18 SBI Zumba           Q1-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
19 SBI Macerena        Q2-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
20 SBI Swing           Q3-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
21 SBI Jive            Q3-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
22 SBI Parapara        Q2-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.
23 SBI Mazurka         Q2-16      82,000  Hudong-Zhonghua (Group) Co., Ltd.

   Kamsarmax NB DWT             1,889,200



   Ultramax
                     Expected
   Vessel Name     Delivery (1)    DWT    Shipyard
 1 SBI Echo            Q3-15      61,000  Imabari Shipbuilding Co., Ltd.
 2 SBI Cronos          Q1-16      61,000  Imabari Shipbuilding Co., Ltd.
 3 SBI Tango           Q3-15      61,000  Imabari Shipbuilding Co., Ltd.
 4 SBI Hermes          Q1-16      61,000  Imabari Shipbuilding Co., Ltd.
 5 SBI Hera            Q2-16      60,200  Mitsui Engineering & Shipbuilding
                                           Co., Ltd.
 6 SBI Zeus            Q2-16      60,200  Mitsui Engineering & Shipbuilding
                                           Co., Ltd.
 7 SBI Poseidon        Q3-16      60,200  Mitsui Engineering & Shipbuilding
                                           Co., Ltd.
 8 SBI Apollo          Q3-16      60,200  Mitsui Engineering & Shipbuilding
                                           Co., Ltd.
 9 SBI Bravo           Q1-15      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
10 SBI Antares         Q1-15      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
11 SBI Maia            Q3-15      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
12 SBI Hydra           Q3-15      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
13 SBI Hyperion        Q2-16      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
14 SBI Tethys          Q2-16      61,000  Nantong COSCO KHI Ship Engineering
                                           Co. Ltd.
15 SBI Leo             Q2-15      61,000  Dalian COSCO KHI Ship Engineering
                                           Co. Ltd.
16 SBI Lyra            Q3-15      61,000  Dalian COSCO KHI Ship Engineering
                                           Co. Ltd.
17 SBI Subaru          Q3-15      61,000  Dalian COSCO KHI Ship Engineering
                                           Co. Ltd.
18 SBI Ursa            Q4-15      61,000  Dalian COSCO KHI Ship Engineering
                                           Co. Ltd.
19 SBI Athena          Q1-15      64,000  Chengxi Shipyard Co. Ltd.
20 SBI Pegasus         Q3-15      64,000  Chengxi Shipyard Co. Ltd.
21 SBI Orion           Q4-15      64,000  Chengxi Shipyard Co. Ltd.
22 SBI Thalia          Q4-15      64,000  Chengxi Shipyard Co. Ltd.
23 SBI Hercules        Q1-16      64,000  Chengxi Shipyard Co. Ltd.
24 SBI Kratos          Q2-16      64,000  Chengxi Shipyard Co. Ltd.
25 SBI Perseus         Q2-16      64,000  Chengxi Shipyard Co. Ltd.
26 SBI Samson          Q2-16      64,000  Chengxi Shipyard Co. Ltd.
27 SBI Phoebe          Q2-16      64,000  Chengxi Shipyard Co. Ltd.
28 SBI Phoenix         Q3-16      64,000  Chengxi Shipyard Co. Ltd.

   Ultramax NB DWT              1,734,800

79 Total Newbuild DWT           8,664,000

(1)  Expected delivery date relates to quarter during which each vessel is
     currently expected to be delivered from the shipyard.

 

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. has currently 17 time chartered-in dry bulk vessels (one Handymax, one Ultramax, three Supramax, four Panamax, six Kamsarmax and two Post-Panamax vessels) and has contracted and agreed to purchase 79 dry bulk vessels consisting of 28 Ultramax, 23 Kamsarmax and 28 Capesize vessels to be delivered starting from the second quarter of 2014 from shipyards in Japan, Korea, China and Romania. Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

Contact:

Scorpio Bulkers Inc.
+377-9798-5715 (Monaco)
+1-646-432-1675 (New York)

Source: Scorpio Bulkers Inc.