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

Jul 30, 2014

MONACO — (Marketwired) — 07/30/14 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three and six months ended June 30, 2014. The Company had minimal operations from the period from March 20, 2013 (date of inception) to June 30, 2013.

Results for the three and six months ended June 30, 2014

For the three months ended June 30, 2014, the Company had a net loss of $15.0 million, or $0.11 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $6.2 million.

For the six months ended June 30, 2014, the Company had a net loss of $25.7 million, or $0.19 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $11.3 million.

Recent Significant Events

$540 million Loan Facility

On July 21, 2014, the Company received a commitment from two leading European financial institutions for a Loan Facility of up to $540 million. The Facility will be used to finance up to 55% of the contract price of six Ultramax, nine Kamsarmax, and nine Capesize vessels currently under construction for delivery in 2015 and 2016. The Loan Facility has a final maturity of six years from the date of signing. The terms and conditions of this commitment are consistent with those of the Company’s existing credit commitments. The closing of the Loan Facility, which is expected to occur within 2014, remains subject to customary conditions precedent, including negotiation and execution of final documentation.

Update on Previously-Announced Credit Facilities

On June 27, 2014, the Company signed a $39.6 million loan agreement which will be used to finance a portion of the market value of two Kamsarmax vessels currently under construction that are expected to be delivered to the Company later in 2014.

On July 29, 2014, the Company signed a $330.0 million loan agreement which will be used to finance a portion of the contract price of 16 Ultramax and six Kamsarmax vessels currently under construction for delivery in 2015 and 2016.

On July 30, 2014, the Company signed a loan agreement for up to $67.5 million which will be used to finance a portion of the contract price of two Ultramax and two Kamsarmax vessels currently under construction for delivery in 2015 and 2016.

Update on Fleet Financing

Including the credit facilities described above, the Company has now either signed loan agreements or received commitments for 52 of the vessels in its fleet. In addition, the Company has received proposals from leading European and Asian financial institutions to finance a portion of the cost of its remaining 28 unfinanced vessels. If definitive agreements are entered into on these terms, the amounts provided by such facilities will vary between 55% of the contract price and 60% of the market value of the remaining unfinanced vessels currently under construction. The terms and conditions of these proposals, for which commitments are expected within 2014, are consistent with those of the Company’s existing credit commitments. The closing of any resultant Loan Facilities would remain subject to credit approval and customary conditions precedent, including negotiation and execution of final documentation.

Newbuilding vessel order

In June 2014, the Company entered into a contract with a Japanese shipyard for the construction of one Ultramax dry bulk vessel, the delivery of which is expected to occur during the first quarter of 2016. The purchase price of this vessel is approximately $31.4 million.

Time chartered-in vessels

During the second quarter of 2014, the Company entered into two time charter agreements.

  • A Kamsarmax vessel built in 2011 at a South Korean shipyard. 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.
     
  • A Post-Panamax vessel built in 2009 at a Chinese shipyard. This vessel has been time chartered-in for 10 to 14 months at the Company’s option at a rate of 90% of the Baltic Panamax 4TC Index. The Company has the option to extend this time charter for an additional 10 to 14 months at the same rate of hire. The vessel was delivered on July 9, 2014.
     

Delisting from Norwegian OTC List

The Company is scheduled to delist its common shares from the Norwegian OTC List on July 31, 2014. The Company’s common shares will continue to trade on the New York Stock Exchange under the symbol “SALT.”

Current Liquidity

As of July 28, 2014, the Company had $241.9 million in cash and cash equivalents.

Newbuilding Program

The aggregate purchase price of our 80 vessels contracted to be constructed is approximately $3,102.8 million. As of July 28, 2014, we have paid a total of $851.3 million in installment payments due under our shipbuilding contracts for our Initial Fleet. The remaining $2,251.5 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 29 Ultramax newbuildings, 23 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:

 

         Q3 2014          $          54.0 million**
         Q4 2014                     84.1 million
         Q1 2015                    279.1 million
         Q2 2015                    280.5 million
         Q3 2015                    457.3 million
         Q4 2015                    294.9 million
         Q1 2016                    426.1 million
         Q2 2016                    251.2 million
         Q3 2016                    124.3 million
                          ---------------
                          $       2,251.5 million
                          ===============

 

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

Explanation of Components of Second Quarter of 2014 Financial Results

For the three months ended June 30, 2014, the Company recorded a net loss of $15.0 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 $13.0 million for the three months ended June 30, 2014, associated with chartering in 19 vessels, for which the time charter equivalent revenue per day was $8,867 (see the breakdown of daily TCE averages below). Time charter equivalent revenue per day was adversely affected by a depressed rate environment for dry bulk carriers as well as the integration of the time chartered vessels into our fleet which required significant time and fuel as they had to be repositioned for certain of their first voyages.

Charterhire expense was $19.9 million for the three months ended June 30, 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 $8.5 million for the three months ended June 30, 2014. Such amount included $6.2 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance.

For the six months ended June 30, 2014, the Company recorded a net loss of $25.7 million.

TCE revenue was $15.5 million for the six months ended June 30, 2014, associated with chartering in 19 vessels, for which the time charter equivalent revenue per day was $8,163 (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 as well as a depressed rate environment for dry bulk carriers.

Charterhire expense was $26.6 million for the six months ended June 30, 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 $15.4 million for the six months ended June 30, 2014. Such amount included $11.3 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance.

 

                   Scorpio Bulkers, Inc. and Subsidiaries
             Consolidated Statements of Operations (unaudited)
               (Dollars in Thousands, Except Per Share Data)

                                                               Period from
                                                                March 20,
                  Three Months   Three Months    Six Months   2013 (date of
                     Ended          Ended          Ended      inception) to
                 June 30, 2014  June 30, 2013  June 30, 2014  June 30, 2013
                 -------------  -------------  -------------  -------------
Revenue:
Vessel revenue   $      13,180  $           -  $      18,647  $           -
                 -------------  -------------  -------------  -------------

Operating
 expenses:
Voyage expenses            132              -          3,180              -
Charterhire
 expense                19,883              -         26,562              -
General and
 administrative
 expenses                8,454              1         15,351              1
                 -------------  -------------  -------------  -------------
Total operating
 expenses               28,469              1         45,093              1
                 -------------  -------------  -------------  -------------

Operating loss         (15,289)            (1)       (26,446)            (1)
                 -------------  -------------  -------------  -------------

Other income
 (expense):
Interest income            269              -            793              -
Foreign exchange
 gain (loss)                18              -             (5)             -
Total other
 income                    287              -            788              -
                 -------------  -------------  -------------  -------------

Net loss         $     (15,002) $          (1) $     (25,658) $          (1)
                 =============  =============  =============  =============

Loss per common
 share- basic
 and diluted (1) $       (0.11) $           -  $       (0.19) $           -

Weighted-average
 shares
 outstanding-
 basic and
 diluted (1)       133,236,911          1,500    132,925,640          1,500

(1)  Diluted weighted-average shares outstanding, which would include the
     impact of restricted shares, for the three and six months ended June
     30, 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. There were no potentially
     dilutive shares outstanding during the period from March 20, 2013 (date
     of inception) to June 30, 2013.

     The loss per common share for the three months ended June 30, 2013 and
     for the period from March 20, 2013 (date of inception) to June 30, 2013
     was $(0.67). The size of this loss per common share relates to the low
     weighted-average number of shares outstanding during those periods and
     is not a meaningful representation of the results of operations for
     those periods and is not comparable to the 2014 periods.



                   Scorpio Bulkers Inc. and Subsidiaries
                  Consolidated Balance Sheets (unaudited)
               (Dollars in Thousands, Except Per Share Data)

                                                June 30,      December 31,
                                                  2014            2013
                                             --------------  --------------
Assets

Current assets
  Cash and cash equivalents                  $      345,956$      733,896
  Due from charterers                                14,869               -
  Prepaid expenses and other current assets           2,221              61
                                             --------------  --------------
Total current assets                                363,046         733,957
                                             --------------  --------------

Non-current assets
  Vessels under construction                        842,845         371,692
  Other assets                                        5,392              35
                                             --------------  --------------
Total non-current assets                            848,237         371,727
                                             --------------  --------------

Total assets                                 $    1,211,283$    1,105,684
                                             ==============  ==============

Liabilities and shareholders' equity

Current liabilities
  Accounts payable and accrued expenses      $       79,091$        1,472
                                             --------------  --------------
Total current liabilities                            79,091           1,472
                                             --------------  --------------

Non-current liabilities                                   -               -
                                             --------------  --------------

Total liabilities                                    79,091           1,472
                                             --------------  --------------

Shareholders' equity
  Common stock, $0.01 par value per share;
   authorized 450,000,00 shares; issued and
   outstanding 140,247,301 and 133,403,931
   shares as of June 30, 2014 and December
   31, 2013, respectively                             1,402           1,334
  Paid-in capital                                 1,162,755       1,109,185
  Accumulated deficit                               (31,965)         (6,307)
                                             --------------  --------------
Total shareholders' equity                        1,132,192       1,104,212
                                             --------------  --------------

Total liabilities and shareholders' equity   $    1,211,283$    1,105,684
                                             ==============  ==============



                   Scorpio Bulkers Inc., and Subsidiaries
             Consolidated Statements of Cash Flows (unaudited)
                           (Dollars in Thousands)

                                                               Period from
                                                                March 20,
                                                 Six Months   2013 (date of
                                                   Ended      inception) to
                                               June 30, 2014  June 30, 2013
                                               -------------  -------------
Operating activities
Net loss                                       $     (25,658) $          (1)
Restricted stock amortization                         11,278              -
Increase in amounts due from charterers              (19,004)             -
Increase in prepaid expenses and other current
 assets                                               (2,160)             -
Increase in accounts payable and accrued
 expenses                                              3,341              1
                                               -------------  -------------
Net cash used in operating activities                (32,203)             -
                                               -------------  -------------

Investing activities                                                      -
Payments for vessels under construction             (397,000)             -
                                               -------------  -------------
Net cash used in investing activities               (397,000)             -
                                               -------------  -------------

Financing activities
Proceeds from issuance of common stock                42,485              -
Debt issue costs paid                                 (1,222)             -
                                               -------------  -------------
Net cash provided by financing activities             41,263              -
                                               -------------  -------------

Decrease in cash and cash equivalents               (387,940)             -
Cash at cash equivalents, beginning of period        733,896              -
                                               -------------  -------------
Cash and cash equivalents, end of period       $     345,956  $           -
                                               =============  =============



                    Scorpio Bulkers Inc. and Subsidiaries
                      Other Operating Data (unaudited)
                 (Dollars in Thousands, Except Per Day Data)

                                                                 Period from
                                                                  March 20,
                                                                  2013 (date
                                Three       Three                     of
                                Months      Months    Six Months  inception)
                                Ended       Ended       Ended         to
                               June 30,    June 30,    June 30,    June 30,
                                 2014        2013        2014        2013
                             ----------- ----------- ----------- -----------
Time Charter Equivalent
 Revenue (1):
Vessel revenue               $    13,180 $         - $    18,647 $         -
Voyage expenses                      132           -       3,180           -
                             ----------- ----------- ----------- -----------
  Time charter equivalent
   revenue                   $    13,048 $         - $    15,467 $         -
                             =========== =========== =========== ===========

Time charter equivalent
 revenue attributable to:
  Kamsarmax                  $     9,794 $         - $    12,027 $         -
  Ultramax                         3,254           -       3,440           -
                             ----------- ----------- ----------- -----------
                             $    13,048 $         - $    15,467 $         -
                             =========== =========== =========== ===========

Revenue days (1):
  Kamsarmax                        1,151           -       1,560           -
  Ultramax                           320           -         335           -
                             ----------- ----------- ----------- -----------
  Combined                         1,471           -       1,895           -
                             =========== =========== =========== ===========

TCE per revenue day (1):
  Kamsarmax                  $     8,507 $         - $     7,712 $         -
  Ultramax                   $    10,162 $         - $    10,262 $         -
  Combined                   $     8,867 $         - $     8,163 $         -

(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 July 30, 2014


Capesize Vessels
                                Expected
                                Delivery
            Vessel Name           (1)       DWT             Shipyard
1    Hull H1309 - TBN SBI Puro   Q1-15    180,000  Shanghai Waigaoqiao
                                                   Shipbuilding Co., Ltd.
2    Hull H1310 - TBN SBI        Q2-15    180,000  Shanghai Waigaoqiao
     Valrico                                       Shipbuilding Co., Ltd.
3    Hull H1311 - TBN SBI        Q3-15    180,000  Shanghai Waigaoqiao
     Maduro                                        Shipbuilding Co., Ltd.
4    Hull H1364 - TBN SBI        Q4-15    180,000  Shanghai Waigaoqiao
     Belicoso                                      Shipbuilding Co., Ltd.
5    Hull H1365 - TBN SBI        Q1-16    180,000  Shanghai Waigaoqiao
     Corona                                        Shipbuilding Co., Ltd.
6    Hull H1366 - TBN SBI        Q2-16    180,000  Shanghai Waigaoqiao
     Diadema                                       Shipbuilding Co., Ltd.
7    Hull H1367 - TBN SBI        Q3-16    180,000  Shanghai Waigaoqiao
     Estupendo                                     Shipbuilding Co., Ltd.
8    Hull S1205 - TBN SBI        Q1-15    180,000  Sungdong Shipbuilding &
     Camacho                                       Marine Engineering Co.,
                                                   Ltd.
9    Hull S1206 - TBN SBI        Q2-15    180,000  Sungdong Shipbuilding &
     Montesino                                     Marine Engineering Co.,
                                                   Ltd.
10   Hull S1211 - TBN SBI        Q2-15    180,000  Sungdong Shipbuilding &
     Magnum                                        Marine Engineering Co.,
                                                   Ltd.
11   Hull S1212 - TBN SBI        Q3-15    180,000  Sungdong Shipbuilding &
     Montecristo                                   Marine Engineering Co.,
                                                   Ltd.
12   Hull S1213 - TBN SBI        Q3-15    180,000  Sungdong Shipbuilding &
     Aroma                                         Marine Engineering Co.,
                                                   Ltd.
13   Hull S1214 - TBN SBI        Q4-15    180,000  Sungdong Shipbuilding &
     Cohiba                                        Marine Engineering Co.,
                                                   Ltd.
14   Hull S1215 - TBN SBI        Q4-15    180,000  Sungdong Shipbuilding &
     Habano                                        Marine Engineering Co.,
                                                   Ltd.
15   Hull S1216 - TBN SBI        Q1-16    180,000  Sungdong Shipbuilding &
     Lonsdale                                      Marine Engineering Co.,
                                                   Ltd.
16   Hull S1217 - TBN SBI        Q1-16    180,000  Sungdong Shipbuilding &
     Partagas                                      Marine Engineering Co.,
                                                   Ltd.
17   Hull S1218 - TBN SBI        Q2-16    180,000  Sungdong Shipbuilding &
     Parejo                                        Marine Engineering Co.,
                                                   Ltd.
18   Hull S1219 - TBN SBI Toro   Q2-16    180,000  Sungdong Shipbuilding &
                                                   Marine Engineering Co.,
                                                   Ltd.
19   Hull S1220 - TBN SBI        Q2-16    180,000  Sungdong Shipbuilding &
     Tuscamina                                     Marine Engineering Co.,
                                                   Ltd.
20   Hull H1059 - TBN SBI        Q4-15    180,000  Daewoo Mangalia Heavy
     Churchill                                     Industries S.A.
21   Hull H1060 - TBN SBI        Q4-15    180,000  Daewoo Mangalia Heavy
     Perfecto                                      Industries S.A.
22   Hull H1061 - TBN SBI        Q1-16    180,000  Daewoo Mangalia Heavy
     Presidente                                    Industries S.A.
23   Hull H1062 - TBN SBI        Q1-16    180,000  Daewoo Mangalia Heavy
     Panatela                                      Industries S.A.
24   Hull H1063 - TBN SBI        Q2-16    180,000  Daewoo Mangalia Heavy
     Robusto                                       Industries S.A.
25   Hull HN1058 - TBN SBI       Q3-15    180,000  Daehan Shipbuilding Co.,
     Behike                                        Ltd.
26   Hull HN1059 - TBN SBI       Q4-15    180,000  Daehan Shipbuilding Co.,
     Monterrey                                     Ltd.
27   Hull HN1060 - TBN SBI       Q4-15    180,000  Daehan Shipbuilding Co.,
     Macanudo                                      Ltd.
28   Hull HN1061 - TBN SBI       Q1-16    180,000  Daehan Shipbuilding Co.,
     Cuaba                                         Ltd.
     Capesize NB DWT                     5,040,000


Kamsarmax Vessels
                                Expected
                                Delivery
            Vessel Name           (1)       DWT             Shipyard
1    Hull H1284 - TBN SBI        Q3-14     82,000  Shanghai Waigaoqiao
     Cakewalk                                      Shipbuilding Co., Ltd.
2    Hull H1285 - TBN SBI        Q4-14     82,000  Shanghai Waigaoqiao
     Charleston                                    Shipbuilding Co., Ltd.
3    Hull S1680 - TBN SBI        Q1-15     84,000  Imabari Shipbuilding Co.,
     Samba                                         Ltd.
4    Hull S1681 - TBN SBI        Q3-15     84,000  Imabari Shipbuilding Co.,
     Rumba                                         Ltd.
5    Hull 1090 - TBN SBI         Q3-15     82,000  Jiangsu Yangzijiang
     Electra                                       Shipbuilding Co., Ltd.
6    Hull 1091 - TBN SBI         Q3-15     82,000  Jiangsu Yangzijiang
     Flamenco                                      Shipbuilding Co., Ltd.
7    Hull 1092 - TBN SBI Rock    Q4-15     82,000  Jiangsu Yangzijiang
                                                   Shipbuilding Co., Ltd.
8    Hull 1093 - TBN SBI Twist   Q1-16     82,000  Jiangsu Yangzijiang
                                                   Shipbuilding Co., Ltd.
9    Hull SS164 - TBN SBI        Q3-15     81,600  Tsuneishi Group
     Salsa                                         (Zhoushan) Shipbuilding
                                                   Inc.
10   Hull SS179 - TBN SBI        Q1-16     81,600  Tsuneishi Group
     Merengue                                      (Zhoushan) Shipbuilding
                                                   Inc.
11   Hull S1228 - TBN SBI        Q1-15     82,000  Hudong-Zhonghua (Group)
     Capoeira                                      Co., Ltd.
12   Hull S1722A - TBN SBI       Q2-15     82,000  Hudong-Zhonghua (Group)
     Conga                                         Co., Ltd.
13   Hull S1723A - TBN SBI       Q2-15     82,000  Hudong-Zhonghua (Group)
     Bolero                                        Co., Ltd.
14   Hull S1229 - TBN SBI        Q2-15     82,000  Hudong-Zhonghua (Group)
     Carioca                                       Co., Ltd.
15   Hull S1724A - TBN SBI       Q3-15     82,000  Hudong-Zhonghua (Group)
     Sousta                                        Co., Ltd.
16   Hull S1725A - TBN SBI       Q1-16     82,000  Hudong-Zhonghua (Group)
     Reggae                                        Co., Ltd.
17   Hull S1726A - TBN SBI       Q1-16     82,000  Hudong-Zhonghua (Group)
     Zumba                                         Co., Ltd.
18   Hull S1231 - TBN SBI        Q1-16     82,000  Hudong-Zhonghua (Group)
     Macarena                                      Co., Ltd.
19   Hull S1735A - TBN SBI       Q2-16     82,000  Hudong-Zhonghua (Group)
     Parapara                                      Co., Ltd.
20   Hull S1736A - TBN SBI       Q2-16     82,000  Hudong-Zhonghua (Group)
     Mazurka                                       Co., Ltd.
21   Hull S1230 - TBN SBI        Q3-16     82,000  Hudong-Zhonghua (Group)
     Lambada                                       Co., Ltd.
22   Hull S1232 - TBN SBI        Q3-16     82,000  Hudong-Zhonghua (Group)
     Swing                                         Co., Ltd.
23   Hull S1233 - TBN SBI Jive   Q3-16     82,000  Hudong-Zhonghua (Group)
                                                   Co., Ltd.
     Kamsarmax NB DWT                    1,889,200


Ultramax Vessels
                                Expected
                                Delivery
            Vessel Name           (1)       DWT             Shipyard
1    Hull 1907 - TBN SBI Hera    Q2-16     60,200  Mitsui Engineering &
                                                   Shipbuilding Co., Ltd.
2    Hull 1906 - TBN SBI Zeus    Q2-16     60,200  Mitsui Engineering &
                                                   Shipbuilding Co., Ltd.
3    Hull 1911 - TBN SBI         Q3-16     60,200  Mitsui Engineering &
     Poseidon                                      Shipbuilding Co., Ltd.
4    Hull 1912 - TBN SBI         Q3-16     60,200  Mitsui Engineering &
     Apollo                                        Shipbuilding Co., Ltd.
5    Hull S870 - TBN SBI Echo    Q3-15     61,000  Imabari Shipbuilding Co.,
                                                   Ltd.
6    Hull S871 - TBN SBI Tango   Q3-15     61,000  Imabari Shipbuilding Co.,
                                                   Ltd.
7    Hull S-A098 - TBN SBI       Q1-16     61,000  Imabari Shipbuilding Co.,
     Achilles                                      Ltd.
8    Hull S-A089 - TBN SBI       Q1-16     61,000  Imabari Shipbuilding Co.,
     Cronos                                        Ltd.
9    Hull S-A090 - TBN SBI       Q1-16     61,000  Imabari Shipbuilding Co.,
     Hermes                                        Ltd.
10   Hull NE180 - TBN SBI        Q1-15     61,000  Nantong COSCO KHI Ship
     Bravo                                         Engineering Co. Ltd.
11   Hull NE181 - TBN SBI        Q1-15     61,000  Nantong COSCO KHI Ship
     Antares                                       Engineering Co. Ltd.
12   Hull NE182 - TBN SBI Maia   Q3-15     61,000  Nantong COSCO KHI Ship
                                                   Engineering Co. Ltd.
13   Hull NE183 - TBN SBI        Q3-15     61,000  Nantong COSCO KHI Ship
     Hydra                                         Engineering Co. Ltd.
14   Hull NE194 - TBN SBI        Q2-16     61,000  Nantong COSCO KHI Ship
     Hyperion                                      Engineering Co. Ltd.
15   Hull NE195 - TBN SBI        Q2-16     61,000  Nantong COSCO KHI Ship
     Tethys                                        Engineering Co. Ltd.
16   Hull DE018 - TBN SBI Leo    Q1-15     61,000  Dalian COSCO KHI Ship
                                                   Engineering Co. Ltd.
17   Hull DE019 - TBN SBI Lyra   Q3-15     61,000  Dalian COSCO KHI Ship
                                                   Engineering Co. Ltd.
18   Hull DE020 - TBN SBI        Q3-15     61,000  Dalian COSCO KHI Ship
     Subaru                                        Engineering Co. Ltd.
19   Hull DE021 - TBN SBI Ursa   Q3-15     61,000  Dalian COSCO KHI Ship
                                                   Engineering Co. Ltd.
20   Hull CX0610 - TBN SBI       Q1-15     64,000  Chengxi Shipyard Co. Ltd.
     Athena
21   Hull CX0651 - TBN SBI       Q3-15     64,000  Chengxi Shipyard Co. Ltd.
     Pegasus
22   Hull CX0652 - TBN SBI       Q4-15     64,000  Chengxi Shipyard Co. Ltd.
     Orion
23   Hull CX0612 - TBN SBI       Q4-15     64,000  Chengxi Shipyard Co. Ltd.
     Thalia
24   Hull CX0653 - TBN SBI       Q1-16     64,000  Chengxi Shipyard Co. Ltd.
     Hercules
25   Hull CX0627 - TBN SBI       Q1-16     64,000  Chengxi Shipyard Co. Ltd.
     Perseus
26   Hull CX0654 - TBN SBI       Q2-16     64,000  Chengxi Shipyard Co. Ltd.
     Kratos
27   Hull CX0655 - TBN SBI       Q2-16     64,000  Chengxi Shipyard Co. Ltd.
     Samson
28   Hull CX0613 - TBN SBI       Q2-16     64,000  Chengxi Shipyard Co. Ltd.
     Phoebe
29   Hull CX0656 - TBN SBI       Q3-16     64,000  Chengxi Shipyard Co. Ltd.
     Phoenix
     Ultramax NB DWT                     1,795,800

     Total Newbuild DWT                  8,725,000

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


 

Time chartered-in vessels

The Company has time chartered-in 19 dry bulk vessels. The terms of the time charter-in contracts are summarized as follows:

 

                      Year                        Daily Base     Earliest
     Vessel Type     Built    DWT    Where Built     Rate         Expiry
  Post-Panamax        2010   93,000     China       $13,250    23-Oct-14 (1)
  Post-Panamax        2011   93,000     China       $13,500    24-Oct-14 (2)
  Post-Panamax        2009   93,000     China    See Note (3)  9-May-15 (3)
  Kamsarmax           2009   82,500     Japan       $14,500    8-Feb-15 (4)
  Kamsarmax           2012   82,000  South Korea    $15,500    23-Jul-17 (5)
  Kamsarmax           2011   81,900  South Korea    $12,750    3-Apr-15 (6)
  Kamsarmax           2012   81,500  South Korea    $14,500    7-Dec-14 (7)
  Kamsarmax           2011   81,500  South Korea    $15,000    15-Jan-16 (8)
  Kamsarmax           2012   81,000  South Korea    $15,000    10-Feb-15 (9)
  Kamsarmax           2012   79,500     China       $14,000   23-Jan-15 (10)
  Panamax             2004   77,500     China       $14,000    3-Jan-17 (11)
  Panamax             2014   77,000     Japan       $16,000    4-Mar-15 (12)
  Panamax             2009   76,500     Japan       $14,000    1-Dec-14 (13)
  Panamax             2007   75,500  South Korea    $13,750   14-Feb-15 (14)
  Ultramax            2010   61,000     Japan       $14,200    1-Apr-17 (15)
  Supramax            2010   58,000     China       $14,250   12-Dec-16 (16)
  Supramax            2011   58,000     China       $13,750   18-Jan-15 (17)
  Supramax            2015   55,000     Japan       $14,000   30-Jun-18 (18)
  Handymax            2002   48,500     Japan       $12,000   31-Jan-17 (19)
Total TC DWT               1,435,900

(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 10 to 14 months at the
     Company's option at a rate of 90% of the Baltic Panamax 4TC Index. The
     Company has the option to extend this time charter for an additional 10
     to 14 months at the same rate of hire. The vessel was delivered on July
     9, 2014.
(4)  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.
(5)  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.
(6)  This vessel has been time chartered-in for 11 to 13 months at the
     Company's option at $12,750 per day. The Company has the option to
     extend this time charter for one year at $13,750 per day. The vessel
     was delivered on May 3, 2014.
(7)  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.
(8)  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.
(9)  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.
(10) 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.
(11) This vessel has been time chartered-in for 32 to 38 months at the
     Company's option at $14,000 per day. The vessel was delivered on May 3,
     2014.
(12) 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.
(13) 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.
(14) 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.
(15) 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.
(16) 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 was delivered on April 12, 2014.
(17) This vessel has been time chartered-in for ten to 13 months at the
     Company's option at $13,750 per day. This vessel was delivered on March
     18, 2014.
(18) 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.
(19) 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.

 

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. has currently 19 time chartered-in dry bulk vessels (one Handymax, one Ultramax, three Supramax, four Panamax, seven Kamsarmax and three Post-Panamax vessels) and has contracted and agreed to purchase 80 dry bulk vessels consisting of 29 Ultramax, 23 Kamsarmax and 28 Capesize vessels to be delivered starting from the third quarter of 2014 from shipyards in Japan, South 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.