London: NYSE-listed Scorpio Bulkers has agreed to sell seven of its newbuildings to an unnamed buyer for $290m in total, but analysts say the company is selling the vessels at a loss of around $62.5m.
The newbuildings comprise three capesizes and a kamsarmax bulk carriers, and three LR1 product tankers.
“SALT management should be commended for taking the difficult measures to help the company survive in an unprecedented market trough as opposed to hoping for a market recovery, though we also note that ill-timed purchases put the company in this predicament to begin with, as we estimate losses from the seven vessels to be sold to total $62.5m,” Jonathan Chappell, senior managing director of marine transportation equities at Evercore ISI, wrote in a note to investors today.
Nevertheless, Evercore said the vessel sales would improve the company’s liquidity and protect it from “potentially damaging capital commitments”.
Meanwhile, the Monaco-based company has also secured financing of up to $17m on an ultramax bulk carrier newbuilding, which is being built in Japan for delivery in Q3 2015.
The sale of the three capesize vessels has enabled Scorpio Bulkers to substitute the financing for one of these vessels and instead put the funds towards the ultramax newbuilding. The financing is part of an existing $409m credit facility.
The three capes are under construction in Romania, and should hit the water between the fourth quarter of 2015 and the second quarter of 2016.
The kamsarmax vessel is currently being constructed in China and delivery is expected in early 2016.
The LR1 product tankers are currently being built in South Korea; two should arrive during the second quarter of 2017 and the third during Q3 2017.