In a recent press release, Scorpio Bulkers Inc (NYSE:SALT) noted that it has signed an agreement with a set of third parties for the sale of its two Capesize dry bulk vessels along with four newbuilding Capesize dry bulk vessels. The company further informed that the mentioned four newbuilding Capesize dry bulk vessels are currently under construction. The total value of the deal is seen at roughly $227 million.
Receipt of orders
The company went on to state that the two Capesize dry bulk vessels were built in China and delivered to it in 2015. One of the four newbuilding Capesize vessels is under construction in China and is likely to be delivered within the fourth quarter of 2015. The remaining three vessels are being built in Korea, the delivery of which is likely to be made in the first quarter of 2016.
Earlier last month, Scorpio Bulkers Inc (NYSE:SALT) reported its third quarter results, where it posted earnings per share of ($0.05) above the analysts estimates of ($0.06). The company’s revenue surged by 20.5% year-over-year to $15.2 million but missed the Street’s consensus view of $26.80 million.
The report
Meanwhile, Drewry Shipping Consultants, a marine advisory firm, has warned that the dry bulk shipping industry may face another dull year and is likely to return to profitability only in 2017. In its report, Drewry noted that the dry bulk freight rate declined 14.5% in September as against August while there is an additional fall of 13.8% in between September and November.
The advisory firm said that the demand for dry bulk shipping has already dried up as a result of sluggish iron ore and coal imports in China coupled with a weak coal import growth in India. The firm is of the opinion that the iron ore demand will rise by 3% to 4% in the coming years, maintaining that an early rebound of coal demand in China is unlikely.
Following the report, the stock price of Scorpio Bulkers Inc (NYSE:SALT) fell by 1.41% to $0.840 yesterday.
