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

Oct 29, 2014

MONACO — (Marketwired) — 10/29/14 — Scorpio Bulkers Inc. (NYSE: SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three and nine months ended September 30, 2014. The Company had minimal operations from the period from March 20, 2013 (date of inception) to September 30, 2013.

Results for the three and nine months ended September 30, 2014

For the three months ended September 30, 2014, the Company had a net loss of $18.9 million, or $0.14 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $6.3 million.

For the nine months ended September 30, 2014, the Company had a net loss of $44.6 million, or $0.34 basic and diluted loss per share. This loss includes the noncash amortization of stock-based compensation of $17.6 million.

The Company had minimal operations during the period from March 20, 2013 (date of inception) to September 30, 2013 so the prior year periods are not comparable to results for the three months and nine months ended September 30, 2014.

Explanation of Components of Financial Results for the Third Quarter of 2014 and 2013

For the three months ended September 30, 2014, the Company recorded a net loss of $18.9 million. The Company recorded a net loss of $2.7 million for the three months ended September 30, 2013.

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 $12.4 million for the three months ended September 30, 2014, associated with 22 vessels time chartered-in and one vessel owned, for which TCE revenue per day was $6,941 (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-in vessels into our fleet which required significant time and fuel as they had to be repositioned for certain of their first voyages.

Vessel operating costs for the three months ended September 30, 2014 were $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.

Depreciation for the three months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.

Charterhire expense was $22.9 million for the three months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company’s Fleet List below for the terms of these agreements.

General and administrative expense was $8.0 million for the three months ended September 30, 2014. Such amount included $6.3 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance. General and administrative expense was $0.7 million for the three months ended September 30, 2013.

During the three months ended September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.

Explanation of Components of Financial Results for the Nine Months Ended September 30, 2014 and the Period From March 20, 2013 (Date of Inception) to September 30, 2013

For the nine months ended September 30, 2014, the Company recorded a net loss of $44.6 million and recorded a net loss of $2.7 million during the period from March 20, 2013 (date of inception) to September 30, 2013.

TCE revenue was $27.8 million for the nine months ended September 30, 2014, associated with 24 vessels time chartered-in and one vessel owned, for which the time charter equivalent revenue per day was $7,570 (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.

Vessel operating costs for the nine months ended September 30, 2014 was $0.4 million related to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.

Depreciation for the nine months ended September 30, 2014 was $0.1 million and relates to two Kamsarmax vessels delivered to the Company from the shipyards in August and September 2014.

Charterhire expense was $49.5 million for the nine months ended September 30, 2014 relating to the time chartered-in vessels described below. See the Company’s Fleet List below for the terms of these agreements.

General and administrative expense was $23.4 million for the nine months ended September 30, 2014. Such amount included $17.6 million of restricted stock amortization (noncash) and the balance primarily related to payroll, directors’ fees, professional fees and insurance. General and administrative expense was $0.7 million for the period from March 20, 2013 (date of inception) to September 30, 2013.

During the period from March 20, 2013 (date of inception) to September 30, 2013, the Company incurred a $2.1 million loss in connection with a shareholder receivable denominated in Norwegian kroner that was not settled in U.S. dollars until October 2013.

Recent Significant Events

$411 Million Credit Facility

On October 20, 2014 the Company announced that it has received commitments from a group of financial institutions for a loan facility of up to $411.264 million (the “Facility”).

The Facility was arranged by DNB Markets, Inc. and contains commitments from financial institutions including DNB Capital, LLC, the Export-Import Bank of Korea (“KEXIM”) and Korea Trade Insurance Corporation (“KSURE”) as well as Korean and international pension funds and financial institutions.

The Facility shall mature six years from the delivery of the final vessel securing the Facility, however not later than June 2022, and in certain circumstances the Facility shall mature 12 years after the delivery of each financed vessel. The Facility is available to finance up to 60% of the contract price of the Company’s 12 Capesize bulk carriers under construction at Sungdong Shipbuilding & Marine Engineering Co., Ltd, South Korea. The terms and conditions of the Facility, including covenants, are similar to those in the Company’s existing credit facilities and customary for financings of this type, and the commitments from KEXIM and KSURE are in accordance with OECD Guidelines. The Facility is subject to customary conditions precedent and the execution of definitive documentation.

$42 Million Credit Facility

On October 22, 2014, the Company announced that it has received a commitment from a leading European financial institution for a loan facility of up to $42.0 million (the “Loan Facility”).

The Facility will be used to finance up to 60% of the market value upon delivery of two Kamsarmax vessels currently under construction at Imabari Shipbuilding Co. Ltd., Japan. The Loan Facility has a final maturity of six 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 Loan Facility is subject to customary conditions precedent and the execution of definitive documentation.

Update on Fleet Financing

Including the two credit facilities described above, the Company has now either signed loan agreements or received commitments for 66 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 14 unfinanced vessels. 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 definitive documentation.

Senior Notes Offering

On September 22, 2014 the Company issued $65 million in aggregate principal amount of senior unsecured notes (the “Notes”). The Notes will mature on September 15, 2019 and may be redeemed in whole or in part at any time or from time to time after September 15, 2016. The Notes will bear interest at a rate of 7.5% per year, payable quarterly on each March 15, June 15, September 15 and December 15, commencing on December 15, 2014. The Notes were issued in minimum denominations of $25.00 and integral multiples of $25 in excess thereof. The Company intends to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. The Company had granted the underwriters a 30-day option to purchase an additional $9.75 million in aggregate principal amount of Notes.

On October 16, 2014, underwriters exercised their option to purchase an additional $8,625,000 aggregate principal amount of the Notes (the “Additional Notes”) at $25.00 per note. The Company plans to use all or substantially all of the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital. Following the closing of the Additional Notes, the Company has $73,625,000 aggregate principal amount of the Notes outstanding.

Contemplated Bond Offering

The Company is currently evaluating raising additional capital in the institutional bond markets in an offering exempt from registration under the Securities Act of 1933, as amended. The Company believes this could provide an opportunity to diversify its sources of funding and further strengthen the Company’s balance sheet.

Time chartered-in vessels

During the third quarter of 2014, the Company entered into five time charter agreements.

  • A Post-Panamax vessel built in 2012 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company’s option at $13,000 per day. The Company has the option to extend this time charter for one year at $14,000 per day. This vessel is expected to be delivered December 2014.
     
  • A Post-Panamax vessel built in 2011 at a Chinese shipyard. This vessel has been time chartered-in for 11 to 13 months at the Company’s option at $9,500 per day. The Company has the option to extend this time charter for one year at $11,500 per day. The vessel was delivered on September 10, 2014.
     
  • A Kamsarmax vessel built in 2014 at a South Korean shipyard. This vessel has been time chartered-in for 11 to 14 months at the Company’s option at $12,000 per day. The Company has the option to extend this time charter for one year. The vessel was delivered on August 22, 2014.
     
  • A Panamax vessel built in 2014 at a Chinese shipyard. This vessel has been time chartered-in for 10 to 13 months at Company’s option at $5,000 per day for the first 40 days and $10,000 per day thereafter. The Company has the option to extend the charter for one year at $12,000 per day. The vessel was delivered on August 10, 2014.
     
  • A Supramax vessel built in 2008 at a Chinese shipyard. This vessel has been time chartered-in for 21 to 25 months at the Company’s option at $12,250 per day. The Company has the option to extend this time charter for one year at $13,000 per day. The vessel was delivered on September 13, 2014.
     

Current Liquidity

As of October 27, 2014, the Company had $208.9 million in cash and cash equivalents.

Newbuilding Program

The aggregate purchase price of the vessels in our initial fleet of 80 vessels was $3,102.8 million, of which two Kamsarmax vessels were delivered to us during the third quarter of 2014. As of October 27, 2014, we have paid a total of $936.0 million in installment payments due under our shipbuilding contracts for our Initial Fleet, including payments for the two vessels delivered to us. The remaining $2,166.8 million is scheduled to be paid in installments through the delivery dates of each vessel. The Company currently has 29 Ultramax newbuildings, 21 Kamsarmax newbuildings and 28 Capesize newbuildings. The estimated future payment dates and amounts are as follows*:

 


      Q4 2014 $        52.8 million**
      Q1 2015         260.3 million
      Q2 2015         288.7 million
      Q3 2015         513.1 million
      Q4 2015         327.6 million
      Q1 2016         372.9 million
      Q2 2016         280.0 million
      Q3 2016          71.3 million
              -------------
              $     2,166.8 million
              =============


 

* These are estimates only and are subject to change as construction progresses.
** Relates to payments expected to be made from October 27, 2014 to December 31, 2014.

Conference Call Details:

Wednesday, October 29, 2014 at 11:00 AM Eastern Daylight Time and 4:00 PM Central European Time.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(888)-797-2980 (U.S.) or 1(913)-981-5596 (International). The conference participant passcode is 7812625. 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=100862

 


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

                                                                Period from
                                                                 March 20,
                                                                2013 (date
                                                                    of
                     Three Months  Three Months   Nine Months   inception)
                         Ended         Ended         Ended          to
                       September     September     September     September
                       30, 2014      30, 2013      30, 2014      30, 2013
                     ------------  ------------  ------------  ------------
Revenue:
Vessel revenue       $     12,608  $          -  $     31,255  $          -
                     ------------  ------------  ------------  ------------
Operating expenses:
Voyage expenses               238             -         3,418             -
Vessel operating
 cost                         382             -           382             -
Charterhire expense        22,906             -        49,468             -
Depreciation                  117             -           117             -
General and
 administrative
 expenses                   8,034           675        23,385           676
                     ------------  ------------  ------------  ------------
Total operating
 expenses                  31,677           675        76,770           676
                     ------------  ------------  ------------  ------------

Operating loss            (19,069)         (675)      (45,515)         (676)
                     ------------  ------------  ------------  ------------
Other income
 (expense):
Interest income               129            19           922            19
Foreign exchange
 gain (loss)                    5        (2,081)            -        (2,081)
Other expense, net             26             -            26             -
                     ------------  ------------  ------------  ------------
Total other income            160        (2,062)          948        (2,062)
                     ------------  ------------  ------------  ------------
Net loss             $    (18,909)$     (2,737)$    (44,567)$     (2,738)
                     ============  ============  ============  ============
Loss per common
 share- basic and
 diluted (1)         $      (0.14)$      (0.08)$      (0.34)$      (0.17)
Weighted-average
 shares outstanding-
 basic and diluted
 (1)                  133,248,016    33,453,698   133,034,280    15,692,995

(1) Diluted weighted-average shares outstanding, which would include the
    impact of restricted shares, for the three and nine months ended
    September 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 September 30, 2013.




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


                                              September 30,   December 31,
                                                  2014            2013
                                             --------------  --------------

Current assets

  Cash and cash equivalents                  $      218,585$      733,896
  Due from charterers                                17,419               -
  Prepaid expenses and other current assets           2,817              61
                                             --------------  --------------
Total current assets                                238,821         733,957
                                             --------------  --------------

Non-current assets
  Vessels, net                                       66,653               -
  Vessels under construction                        870,265         371,692
  Deferred financing costs, net                       2,240               -
  Other assets                                       13,794              35
                                             --------------
Total non-current assets                            952,952         371,727
                                             --------------  --------------

Total assets                                 $    1,191,773$    1,105,684
                                             ==============  ==============

Liabilities and shareholders' equity

Current liabilities
  Accounts payable and accrued expenses      $        6,704$        1,472
Total current liabilities                             6,704           1,472
                                             --------------  --------------

Non-current liabilities
  Senior Notes                                       65,000               -
                                             --------------  --------------
Total non-current liabilities                        65,000               -
                                             --------------  --------------

Total liabilities                                    71,704           1,472
                                             --------------  --------------

Shareholders' equity
  Common stock, $0.01 par value per share;
   authorized 450,000,000 shares;issued and
   outstanding 140,299,695 and 133,403,931
   shares as of September 30, 2014 and
   December 31, 2013, respectively                    1,403           1,334
  Paid-in capital                                 1,169,540       1,109,185
  Accumulated deficit                               (50,874)         (6,307)
                                             --------------  --------------
Total shareholders' equity                        1,120,069       1,104,212
                                             --------------  --------------

Total liabilities and shareholders' equity   $    1,191,773$    1,105,684
                                             ==============  ==============




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

                                                               Period from
                                                             March 20, 2013
                                               Nine Months      (date of
                                                  Ended       inception) to
                                              September 30,   September 30,
                                                  2014            2013
                                             --------------  --------------
Operating activities
Net loss                                     $      (44,567)$       (2,738)
Adjustment to reconcile net loss to net cash
 used byoperating activities:
Restricted stock amortization                        17,579               -
Unrealized loss on foreign currency
 transactions                                             -           2,080
Depreciation                                            117               -
Amortization of deferred financing costs                 10               -

Changes in operating assets and liabilities:
Increase in amounts due from charterers             (22,081)              -
Increase in prepaid expenses and other
 current assets                                      (2,756)             (4)
Increase in accounts payable and accrued
 expenses                                             2,642             635
                                             --------------  --------------
Net cash used in operating activities               (49,056)            (27)
                                             --------------  --------------

Investing activities
Payments for vessels and vessels under
 construction                                      (562,781)        (70,053)
                                             --------------  --------------
Net cash used in investing activities              (562,781)        (70,053)
                                             --------------  --------------

Financing activities
Proceeds from issuance of common stock               42,345         243,123
Proceeds from Senior Notes offering                  65,000               -
Debt issue costs paid                               (10,819)              -
                                             --------------  --------------
Net cash provided by financing activities            96,526         243,123
                                             --------------  --------------

(Decrease) increase in cash and cash
 equivalents                                       (515,311)        173,043
Cash at cash equivalents, beginning of
 period                                             733,896               -
                                             --------------  --------------
Cash and cash equivalents, end of period     $      218,585$      173,043
                                             ==============  ==============




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

                                                                Period from
                                                                 March 20,
                      Three Months  Three Months  Nine Months  2013 (date of
                         Ended         Ended         Ended     inception) to
                     September 30, September 30, September 30, September 30,
                          2014          2013          2014          2013
                     ------------- ------------- ------------- -------------
Time Charter
 Equivalent Revenue
 (1):
 Vessel revenue      $      12,608 $           - $      31,255 $           -
 Voyage expenses               238             -         3,418             -
                     ------------- ------------- ------------- -------------
 Time charter
  equivalent revenue $      12,370 $           - $      27,837 $           -
                     ============= ============= ============= =============

Time charter
 equivalent revenue
 attributable to:
 Kamsarmax           $       9,459 $           - $      21,486 $           -
 Ultramax                    2,911             -         6,351             -
                     ------------- ------------- ------------- -------------
                     $      12,370 $           - $      27,837 $           -
                     ============= ============= ============= =============

Revenue days (1):
 Kamsarmax                   1,397             -         2,957             -
 Ultramax                      385             -           720             -
                     ------------- ------------- ------------- -------------
 Combined                    1,782             -         3,677             -
                     ============= ============= ============= =============

TCE per revenue day
 (1):
      Kamsarmax      $       6,771 $           - $       7,266 $           -
       Ultramax      $       7,561 $           - $       8,816 $           -
       Combined      $       6,941 $           - $       7,570 $           -

(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 October 28, 2014

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




Kamsarmax Vessels
                                        Expected
               Vessel Name              Delivery      DWT        Shipyard
                                           (1)
   ----------------------------------- ---------- ---------- ---------------
1  Hull S1680 - TBN SBI Samba             Q1-15       84,000     Imabari
2  Hull S1681 - TBN SBI Rumba             Q3-15       84,000     Imabari
3  Hull 1090 - TBN SBI Electra            Q3-15       82,000   Yangzijiang
4  Hull 1091 - TBN SBI Flamenco           Q3-15       82,000   Yangzijiang
5  Hull 1092 - TBN SBI Rock               Q4-15       82,000   Yangzijiang
6  Hull 1093 - TBN SBI Twist              Q1-16       82,000   Yangzijiang
7  Hull SS164 - TBN SBI Salsa             Q3-15       81,600    Tsuneishi
8  Hull SS179 - TBN SBI Merengue          Q1-16       81,600    Tsuneishi
9  Hull S1228 - TBN SBI Capoeira          Q1-15       82,000      Hudong
10 Hull S1722A - TBN SBI Conga            Q2-15       82,000      Hudong
11 Hull S1723A - TBN SBI Bolero           Q3-15       82,000      Hudong
12 Hull S1229 - TBN SBI Carioca           Q2-15       82,000      Hudong
13 Hull S1724A - TBN SBI Sousta           Q3-15       82,000      Hudong
14 Hull S1725A - TBN SBI Reggae           Q4-16       82,000      Hudong
15 Hull S1726A - TBN SBI Zumba            Q1-16       82,000      Hudong
16 Hull S1231 - TBN SBI Macarena          Q1-16       82,000      Hudong
17 Hull S1735A - TBN SBI Parapara         Q1-16       82,000      Hudong
18 Hull S1736A - TBN SBI Mazurka          Q2-16       82,000      Hudong
19 Hull S1230 - TBN SBI Lambada           Q3-15       82,000      Hudong
20 Hull S1232 - TBN SBI Swing             Q2-16       82,000      Hudong
21 Hull S1233 - TBN SBI Jive              Q2-16       82,000      Hudong
                                                  ----------
   Kamsarmax NB DWT                                1,725,200




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

                                                  ----------
   Total Newbuild DWT                              8,561,000
                                                  ==========

As used in this earnings release "Dacks" refers to Dalian COSCO KHI Ship
Engineering Co. Ltd., "Daehan" refers to Daehan Shipbuilding Co., Ltd.,
"Daewoo" refers to Daewoo Mangalia Heavy Industries S.A.,"Chengxi" refers to
Chengxi Shipyard Co., Ltd., "Hudong" refers to Hudong-Zhonghua Shipbuilding
(Group) Co., Inc., "Imabari" refers to Imabari Shipbuilding Co. Ltd.,
"Mitsui" refers to Mitsui Engineering & Shipbuilding Co. Ltd., "Nacks"
refers to Nantong COSCO KHI Ship Engineering Co., Ltd., "Sungdong" refers to
Sungdong Shipbuilding & Marine Engineering Co., Ltd., "Tsuneishi" refers to
Tsuneishi Group (Zhoushan) Shipbuilding Inc., "Waigaoqiao" refers to
Shanghai Waigaoqiao Shipbuilding Co., Ltd., and "Yangzijiang" refers to
Jiangsu Yangzijiang Shipbuilding Co. Ltd.

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


 

Owned vessels

 


    Vessel Name         Year Built             DWT            Vessel Type
------------------- ------------------ ------------------ ------------------
SBI Cakewalk               2014              82,000            Kamsarmax
SBI Charleston             2014              82,000            Kamsarmax
                                       ------------------
Total DWT                                    164,000


 

Time chartered-in vessels

The Company has time chartered-in 24 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       2012     98,700    China       $13,000     15-Sep-16  (1)
Post-Panamax       2010     93,000    China       $13,250     23-Oct-14  (2)
Post-Panamax       2011     93,000    China       $13,500     24-Oct-14  (3)
Post-Panamax       2009     93,000    China     See Note (4)  9-May-15   (4)
Post-Panamax       2011     93,000    China        $9,500     11-Aug-15  (5)
Kamsarmax          2014     82,500 South Korea    $12,000     23-Jul-15  (6)
Kamsarmax          2009     82,500    Japan       $14,500     8-Feb-15   (7)
Kamsarmax          2012     82,000 South Korea    $15,500     23-Jul-17  (8)
Kamsarmax          2011     81,900 South Korea    $12,750     3-Apr-15   (9)
Kamsarmax          2012     81,500 South Korea    $14,500     7-Dec-14  (10)
Kamsarmax          2011     81,500 South Korea    $15,000     15-Jan-16 (11)
Kamsarmax          2012     81,000 South Korea    $15,000     10-Feb-15 (12)
Kamsarmax          2012     79,500    China       $14,000     23-Jan-15 (13)
Panamax            2004     77,500    China       $14,000     3-Jan-17  (14)
Panamax            2014     77,000    Japan       $16,000     4-Mar-15  (15)
Panamax            2014     76,000    China    See Note (16)  19-Jun-15 (16)
Panamax            2009     76,500    Japan       $14,000     1-Dec-14  (17)
Panamax            2007     75,500 South Korea    $13,750     14-Feb-15 (18)
Ultramax           2010     61,000    Japan       $14,200     1-Apr-17  (19)
Supramax           2010     58,000    China       $14,250     12-Dec-16 (20)
Supramax           2011     58,000    China       $13,750     18-Jan-15 (21)
Supramax           2008     58,000    China       $12,250     13-Jun-16 (22)
Supramax           2015     55,000    Japan       $14,000     30-Jun-18 (23)
Handymax           2002     48,500    Japan       $12,000     31-Jan-17 (24)
                        ----------
Total TC DWT             1,844,100


(1) This vessel has been time chartered-in for 21 to 25 months at the
    Company's option at $13,000 per day. The Company has the option to
    extend this time charter for one year at $14,000 per day. This vessel is
    expected to be delivered December 2014.
(2) 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.
(3) 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.
(4) 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.
(5) This vessel has been time chartered-in for 11 to 13 months at the
    Company's option at $9,500 per day. The Company has the option to extend
    this time charter for one year at $11,500 per day. The vessel was
    delivered on September 11, 2014.
(6) This vessel has been time chartered-in for 11 to 14 months at the
    Company's option at $12,000 per day. The Company has the option to
    extend this time charter for one year. The vessel was delivered on
    August 22, 2014.
(7) 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.
(8) 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.
(9) 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.
(10)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.
(11)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.
(12)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.
(13)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.
(14)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.
(15)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.
(16)This vessel has been time chartered-in for 10 to 13 months at Company's
    option at $5,000 per day for the first 40 days and $10,000 thereafter.
    The Company has the option to extend the charter for one year at $12,000
    per day. The vessel was delivered on August 10, 2014.
(17)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.
(18)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.
(19)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.
(20)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.
(21)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.
(22)This vessel has been time chartered-in for 21 to 25 months at the
    Company's option at $12,250 per day. The Company has the option to
    extend this time charter for one year at $13,000 per day. The vessel was
    delivered on September 13, 2014.
(23)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.
(24)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. currently owns two Kamsarmax vessels, time charters-in 24 dry bulk vessels (one Handymax, one Ultramax, four Supramax, five Panamax, eight Kamsarmax and five Post-Panamax vessels) and has contracted for 78 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels, 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,” “intend,” “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.