Scorpio Bulkers switches Cape newbuildings to LR1 tankers

Scorpio Bulkers switches Cape newbuildings to LR1 tankers

Monaco: Scorpio Bulkers is to change its contracts for three new Capesize vessels to three LR1 product tankers instead.

The Monaco-based company has agreed with its South Korean shipyard to change the existing contracts. Writing down the contracts to their estimated fair market value will incur a $22m loss for Scorpio, the company said in a statement.

The vessels will be held for sale, but will not be acquired by Scorpio Tankers.

“Should the contracts be sold for their current fair market value, the estimated future cash obligations of the Company will be reduced by approximately $60m,” Scorpio Bulkers said today. “The Company has no plans for any further contract conversions.”

Two of the LR1s are scheduled for delivery in the second quarter of 2017; the third vessel will arrive in the third quarter of 2017.

The three Capes were originally scheduled for delivery in early 2016.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

Related Posts