Dry bulk carrier Scorpio Bulkers books a deficit of almost USD 125 million for the first quarter, which is especially due to an investment in sister company Scorpio Tankers, of which Scorpio Bulkers most recently sold half its shares.
Scorpio Tankers will by 2021 at the earlierst buy and install scrubbers on 19 of its ships, according to the interim report. This comes at a time when developments in the oil price along with the coronavirus create higher rates for the tanker company, which also benefits from more ships in its fleet.
An investment in a sister company helped secure a double-digit million-dollar profit for Scorpio Bulkers in the fourth quarter 2019. Conversely, a major impairment on four vessels put up for sale pulled figures downward.
Scorpio Bulkers goes into the red in the third quarter but, on the other hand, benefits from its stake in sister shipping company Scorpio Tankers. The bottom line for the year so far still shows a fine profit.
As a shareholder in both Frontline and Scorpio Tankers, Trafigura might be able to make a quick profit in a market, in which the inauguration of major oil field Johan Sverdrup in a few weeks is boosting spirits among tanker shipping companies. But the role of shareholder also comes at a risk.
Tanker ship operator Scorpio Tankers acquires 19 product tanker vessels from commodity trader Trafigura. The fleet has an aggregate value of USD 803 milliion. The transaction will make Trafigura a new major shareholder in Scorpio Tankers.
After a miserable start to the year, the Baltic Dry Index soared to the highest level so far in 2019 this past month. But according to prominent dry bulk chiefs Robert Bugbee, Hamish Norton and Polys Hajioannou, the recovery has only just begun.
The first quarter of 2019 ended with another deficit for dry bulk company Scorpio Bulkers, although the deficit was slightly smaller than the deficit from the first three months of 2018, shows the company's interim report.
Although 2019 got off to a rocky start, in part due to January's dam catastrophe in Brazil, several prominent dry bulk shipping companies maintain their belief that the market will improve in the second half of 2019 and in 2020.
Scorpio-controlled offshore ship operator Nordic American Offshore exits 2018 with a deficit of nearly USD 200 million following a massive impairment. However, CEO Emanuele Lauro points to growing activity in the North Sea.