Scorpio Bulkers to Pay Less for Kamsarmax Newbuilds

Monaco-headquartered dry bulk shipping company Scorpio Bulkers has reached agreements with Hudong-Zhonghua (Group) in China to reduce the price to be paid under the shipbuilding contracts for two Kamsarmax newbuilds.

The price of the two Kamsarmax vessels, which are to be delivered between Q1 2017 and Q2 2017, has been reduced by an aggregate of USD 4.9 million.

Scorpio Bulkers currently has four Kamsarmax vessels on order at Hudong-Zhonghua scheduled for delivery by the second quarter of 2017.

The company currently owns 42 vessels, consisting of 16 Kamsarmax vessels and 26 Ultramax vessels, and has also contracted for a total of six newbuilds, the four Kamsarmaxes and two Ultramax vessels on order at the Chengxi shipyard.

Upon final delivery of all of the vessels the company’s owned fleet is expected to have a total carrying capacity of approximately 3.4 million deadweight tonnes.

The company also announced that its board of directors has authorized the repurchase of up to USD 20 million of the company’s outstanding 7.5% senior notes due in 2019 in open market or privately negotiated transactions.

The specific timing and amounts of the repurchases, which will be funded by available cash, will be in the sole discretion of management and vary based on market conditions and other factors. This authorization has no expiration date.