In its first quarter results Scorpio Bulkers said that in April it had agreed counterparties to delay 13 scrubber installations until at least 2021 at no further cost to the company.
“This is expected to delay the payment of between $20m and $25m of expenditures until 2021 at the earliest,” the company said.
Scorpio Bulkers now has five scrubbers being installed in Q2 and one in Q3 2020 with the remaining 13 now scheduled for between Q2 and Q4 2021.
The sharp drop in the oil price, and as result IMO 2020 compliant fuel prices, means that the economics of using scrubbers have been largely wiped out in the current market. Measures to stem the spread of COVID-19 in many countries have also placed limits on some production facilities and shipyards where retrofits are carried out.
Copyright © 2020. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.