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Writedowns take Scorpio Bulkers to a Q1 $52.1m loss, on revenues of just $12.2m

Writedowns take Scorpio Bulkers to a Q1 $52.1m loss, on revenues of just $12.2m
Scorpio Bulkers, having taken a huge punt on the dry bulk shipping market in 2013 - 14, reported a net loss of $52.1m in the first three months of 2015, from a $10.7m loss in the same period in the previous year, hit by write downs.

Revenues while up to $12.2m from $5.4m in 2014 were a fraction of operating losses of $48.3m, which were impacted by $31.7m of write-downs on the vessels held for sale.

Scorpio Bulkers has a total of eight vessels currently in operation, including a capesize, three kamsarmaxes and four ultramaxes, all of them built since 2014.

Yesterday, the firm announced the sales of three more of its newbuildings, including two capesizes and an ultramax under construction in China and Korea, for $111m, adding to an existing seven to make a total of $570.8m in sales.

Scorpio Bulkers reports that it also agreed a total of $1.9bn in loan facilities from various banks between December 2014 and March 2015.

On 4 March, Scorpio agreed to modify existing newbuild contracts for three capesize vessels, to instead construct more profitable LR1 product tankers, slated for delivery between Q2 and Q3 2017 from a South Korean shipyard, which the company has since sold at a loss as part of deals to sell seven newbuildings sold for $290m announced last week.