Scorpio Bulkers to change its name to Eneti

Scorpio Bulkers announced on 3 August 2020 its intention to transition away from the business of dry bulk commodity transportation and towards marine-based renewable energy, including investing in the next generation of wind turbine installation vessels.

The company intends to sell or have commitments to sell its remaining wholly owned or leased dry bulk vessels during Q1 2021.

As a result of the transition and the sale of the bulkers, the company announced in December 2020 that it expects to record a write-down ranging from US$475M to US$500M on vessels sold and classified as held for sale.

This estimated write-down includes non-cash charges of US$425M to US$440M to reflect the current fair market value of the fleet and US$50M to US$60M of estimated cash charges, which include US$34M to US$36M for the termination of various vessel-related agreements, as well as other selling costs. The company will also write-off approximately US$10M of deferred financing costs as outstanding debt is repaid.

Pursuant to a master agreement previously filed with the SEC governing the commercial and technical management of its vessels, the company has submitted a notice of termination to its managers, effectively ending its relationship with Scorpio Commercial Management and Scorpio Ship Management.

The company has signed a letter of intent to enter into a shipbuilding contract with Daewoo Shipbuilding and Marine Engineering to build a wind turbine installation vessel to be delivered in 2023, with options to build three further similar vessels.