Marshall Islands-based marine transportation company Scorpio Bulkers has reached agreements with shipyards in South Korea and Romania to modify six new-building contracts for Capesize bulk carriers into contracts for LR2 product tankers.

The company has also agreed to sell four LR2 new-building contracts to Scorpio Tankers, with a sale price of $51.0m for each.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

This agreement includes an option for the purchase of the two remaining LR2 contracts, which will expire on 31 May next year.

"We have taken these actions to strengthen our liquidity position."

The fixed purchase price will be $52.5m, if the option is exercised.

Scorpio Bulkers will face a total loss on disposal of approximately $41m on the four modified new-building contracts, while the potential disposal of the two options will result in the loss of approximately $14m.

See Also:

Scorpio Bulkers chairman and CEO Emanuele Lauro said: "We have taken these actions to strengthen our liquidity position. We will continue to be proactive in further strengthening our balance sheet."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company has said that the agreements will be reclassified on the balance sheet as assets held for sale, with the sale of contracts expected to result in an estimated reduction of future cash obligations of $120m.

In March this year, Scorpio Bulkers signed multiple agreements for dry-bulk vessels, which included the purchase of four Capesize dry-bulk vessels for approximately $306m, the construction of one Capesize vessel and a time charter-in for an additional seven.