Scorpio Bulkers entered the red in the third quarter of 2019 as dry bulk rates have otherwise been moving upward.
On the other hand, the shipping company benefits once again from its proprietary share in sister carrier Scorpio Tankers, whose equity has flown vertically since New Year's.
In the third quarter, Scorpio Bulkers received USD 500,000 in dividends as well as USD 1 million in a so-called non-cash gain for its share in Scorpio Tankers, which is a part of the Scorpio group.
Thus far in 2019, Scorpio Bulkers was paid USD 1.6 million in dividends and a non-cash gain of USD 68 million for its equity in the product tanker shipping company.
Scorpio Bulkers' third quarter bottom line shows a deficit of USD 1.9 million against a loss of USD 900,000 from the same period last of 2018. Earnings before interest, taxes, depreciations and amortizations slid a bit to USD 26.3 million.
Management attributes the deficit to, among other things, costs for scrubbers and positioning of ships.
Despite this third quarter loss, the company has still made money at this point in 2019. The bottom line shows a profit of USD 29.6 million compared to a deficit of USD 5.3 million for the first nine months of 2018.
The fleet's quarterly revenue lands at USD 63.2 million – slightly more than the same post from the comparable period of 2018.
This entails an average day rate of USD 13,149 for kamsarmax ships and USD 11,824 for ultramax vessels.
Scorpio Bulkers pays out USD 0.02 per share. Stakeholders also get an extraordinary one million additional shares in Scorpio Tankers. These will be distributed so shareholders receive 0.0138 shares in Scorpio Tankers for each Scorpio Bulkers equity.
The bulk carrier also writes in a statement that it has spent USD 17.3 million to date on equipping scrubbers. The company plans to install these systems on the whole fleet, which is expected to cost slightly more than USD 100 million.
English Edit: Daniel Frank Christensen