Scorpio Bulkers Changes Name to Eneti in Transition to Offshore Energy

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Signaling that it is accelerating its exit from the dry bulk transport business, Scorpio Bulkers announced that the company intends to change its name to Eneti Inc. in February. Scorpio announced in August that it was transitioning away from the business of dry bulk commodity transportation and towards marine-based renewable energy.

Scorpio’s sale of vessels is also continuing with two agreements recently announced. The latest agreement is for the sale of the SBI Lynx, a Kamsarmax bulk carrier built in 2018, for approximately $22.25 million. Delivery of the vessel is expected to take place in the first quarter of 2021. This transaction comes approximately two weeks after the company announced an agreement to sell the SBI Phoebe, an Ultramax bulk carrier built in 2016, for approximately $17.65 million.

As of the end of December, the company had sold eight vessels and had contracted to sell seventeen additional vessels, all of which are expected to be completed in the first half of 2021. Scorpio Bulkers said it intends to sell its 24 remaining wholly-owned or finance leased drybulk vessels (including 7 Kamsarmax vessels and 17 Ultramax vessels) during 2021.

Scorpio has been steadily selling off its Kamsarmax and Ultramax bulkers at a steady clip of one to two (or more) per week since late September. At the end of December, the company’s board of directors approved its plan to exit the sector, including a write-down of up to $500 million on the value of its current and recently-sold vessels with approximately $50-70 million in transaction costs and financing charges.

Eneti will be focused on the emerging renewable energy industry. The company 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. In announcing the project, the company said the WTIV would be one of the most sophisticated dedicated turbine installation vessels in the world. It will have the capacity to install onto pre-prepared foundations the largest wind turbines currently designed, at a height of over 185 meters above sea level and in water depth in excess of 65 meters. The vessel incorporates green innovations that they said will improve its efficiency and accelerate “time to first power” for customers. The company has options to build three further similar vessels.

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