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Scorpio Bulkers Inc. Announces Purchase of Common Shares by Scorpio Services Holding Limited

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Rhea-AI Summary

Scorpio Bulkers (NYSE: SALT) disclosed that Scorpio Services Holding Limited has acquired 50,000 common shares at an average price of $17.15. The total outstanding shares of the Company are 7,247,580, with the Scorpio Group owning 19.98% of shares. The Company's fleet consists of 51 vessels, including 45 owned dry bulk vessels and six time chartered vessels. Scorpio Bulkers aims to enhance its market position while facing challenges such as fluctuations in charter rates and operational costs.

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Positive

  • SSH's purchase of 50,000 shares indicates confidence in the company's stock value.
  • Scorpio Bulkers maintains a significant fleet with a total carrying capacity of approximately 3.1 million dwt.

Negative

  • The company faces market uncertainties, including fluctuations in charter rates and vessel values.
  • Operational expenses may increase due to bunker prices and drydocking costs.

News Market Reaction – SALT

-5.65%
-5.65% Session move

In the trading session that priced this news, SALT declined 5.65%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONACO, May 11, 2020 (GLOBE NEWSWIRE) -- Scorpio Bulkers, Inc. (NYSE: SALT) (the “Company”) announced today that Scorpio Services Holding Limited (“SSH”), a related party, has purchased 50,000 common shares of the Company at an average price of $17.15 per share in the open market. The Company currently has 7,247,580 common shares outstanding, of which the Scorpio Group of companies, including SSH owns 1,447,751 or 19.98%.

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. The Company currently has five vessels held for sale. Upon the completion of the sale of the five vessels, Scorpio Bulkers Inc. will have an operating fleet of 51 vessels consisting of 45 wholly-owned or finance leased drybulk vessels (including 16 Kamsarmax vessels and 29 Ultramax vessels), and six time chartered-in vessels (including five Kamsarmax vessels and one Ultramax vessel). The Company’s owned and finance leased fleet will have a total carrying capacity of approximately 3.1 million dwt and all of the Company’s owned vessels will have carrying capacities of greater than 60,000 dwt. Additional information about the Company is available on the Company’s website www.scorpiobulkers.com, which is not a part of this press release.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

FAQ

What recent share purchase was announced by Scorpio Bulkers?

On May 11, 2020, Scorpio Services Holding Limited purchased 50,000 common shares of Scorpio Bulkers at an average price of $17.15.

How many shares does Scorpio Group own in Scorpio Bulkers?

Scorpio Group owns 1,447,751 shares, representing 19.98% of the total outstanding shares.

What is the carrying capacity of Scorpio Bulkers' fleet?

Scorpio Bulkers' fleet has a total carrying capacity of approximately 3.1 million dwt.

What challenges does Scorpio Bulkers face according to the announcement?

The company faces challenges including fluctuations in charter rates, vessel values, and increasing operational expenses.