Scorpio Bulkers Continues Newbuild Sell-off

File photo: Scorpio Bulkers

New York-list Scorpio Bulkers has continued its sell-off of newbuild bulk carriers amid the worst dry bulk shipping market in decades.

Scorpio Bulkers Inc. (NYSE: SALT) announced Monday that it has entered into agreements to sell two Capesize newbuilding dry bulk vessels and an Ultramax newbuilding dry bulk vessel for approximately $111 million in aggregate.

The Capesize vessels are currently being constructed in China and South Korea, and have expected delivery dates between the third quarter of 2015 and the second quarter of 2016. The Ultramax vessel is currently being constructed in China and has an expected delivery date in the first quarter of 2016.

The sale of the newbuilds follows last week’s announced sale of seven newbuilding vessels – including three Capesize vessels, one Kamsarmax vessel and three LR1 product tankers – for approximately $290 million.

With the sale of the three vessels announce Monday, Scorpio’s newbuild orderbook now totals 56 dry bulk vessels, consisting of 24 Ultramax, 19 Kamsarmax (including one vessel held for sale), and 13 Capesize vessels, from shipyards in Japan, South Korea, and China. The company has also contracted for six LR2 product tankers that are currently classified as held for sale, from shipyards in South Korea and Romania.

Since the drybulk market began its crash in Q4 2014, Scorpio has sold shipbuilding contracts for a total of nine (modified) capesize vessels, a Karsarmax newbuilding, and the ten newbuildings mentioned above.