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Scorpio Bulkers lands full year loss of USD 12.7 million

Scorpio Bulkers has presented the first and much anticipated result of the major carriers of the global bulk sector. A net loss of USD 12.7 million for the full year 2018.

Photo: Scorpio Bulkers

Scorpio Bulkers has presented a full year loss of USD 12.7 million according to a press release from the company.

For the year ended December 31, 2017, the net loss was USD 59.7 million.

Total vessel revenues for 2018 were USD 242.5 million, compared to USD 162.2 million for 2017. Operating profit (EBITDA) for the years ended December 31, 2018 and 2017 were USD 100.6 million and USD 35.3 million, respectively.

The key figure, TCE revenue, for the Kamsarmax and Ultramax fleets in the fourth quarter 2018 landed at:

  • Kamsarmax USD 13,148 per day
  • Ultramax USD 12,213 per day

And voyages fixed so far for the first quarter of this year are at:

  • Kamsarmax: approximately USD 12,913 per day for 60 per cent of the days
  • Ultramax: approximately USD 11,072 per day for 56 per cent of the days

In a comment Clarksons Platou states the the result of the fourth quarter is weak and continues:

"Scorpio Bulkers reported 4Q18 EBITDA of USD 28m vs. consensus USD 36m (Bloomberg), mainly due to lower revenues."

In a comment following the publications of the third quarter result in 2018 the company started to see improvements in the sector.

Declining fourth quarter

"The supply dynamic in dry bulk continues to improve. In our view, the industry remains disciplined, partly driven by an ongoing shortage of capital. This is allowing us some visibillity into 2019 and we expect the steady recovery in rates to be sustained. In our karmsarmax and ultramax segments, this is particulary the case," said CEO Emanuele Lauro via a teleconference.

In general, however, the last quarter has been difficult with a very volatile and declining Baltic Dry Index. This has continued into 2019. At Scorpio Bulkers, the share price dropped almost 25 percent in the last three months of the year, while a competitor as Pacific Basin dropped nearly 20 percent in the same period.

Scorpio Bulker's fourth quarter loss landed at USD 7.4 million compared to a los of USD 1.1 million in the same period of 2017.

All major bulk carriers ended the year with a significant drop in share prices. Although improved, the dry bulk shipping companies' weak end of the year should be seen in connection with the fact that the expectation of exuberant growth dwindled as the trade dispute between Washington and Beijing intensified throughout 2018. In October, both the IMF and WTO lowered their expectations for continued growth.

Dry bulk shares plunged in turbulent 2018

Scorpio makes massive investment in scrubbers for both dry bulk and tanker

Significant improvement in Scorpio Bulkers' results

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