The Scorpio Bulkers share has dropped by around 80 percent during 2014, the company's first year on the stock exchange. Most recently Deutsche Bank has downgraded its expectations for the US-based dry bulk carrier. "We are guilty of being hopeful," says the bank.
With three new credit facilities for a total USD 187 million the Danish dry bulk and tanker carrier has now secured partial financing for a massive newbuilding program worth a total of USD 1 billion. The first ships from a series of 37 will soon be delivered.
Following the EU's adoption of regulations stating that only approved shipbreaking yards and facilities will be featured on a new positive-list for carriers, the world's two biggest shipbreaking yards, both Chinese, applied for EU approval yesterday, Wednesday.
2015 will be the third consecutive year with growth in the global container traffic, says British Clarksons, upgrading its already positive expectations for the industry next year. "Strong trade growth lifts expectations for 2014 and 2015."
The collapse of the oil price makes Scorpio Tankers President Robert Bugbee draw comparisons to the 1980s. "This will not just improve the rate environment for product tankers, it will significantly extend a potential upside."
When Altor tried - in vain - to divest OW Bunker in March 2013, Singapore subsidiary Dynamic Oil Trading was presented as a booming growth enterprise. So why was the subsidiary completely absent from the IPO prospective on the basis of which 20,000 investors purchased shares a year later?
Scorpio Bulkers now cancels several Capesize newbuilding contracts in South Korea and Romania, and the carrier will thus book a total loss of USD 55 million. The contracts are converted into LR2 tanker vessels.
The status quo in German shipping is experiencing a crisis, says Carsten Wiebers, global head of maritime industries at German KfW IPEX-Bank. The poor climate will continue, and the crisis has thus become the new normal, he tells ShippingWatch.