Following a string of bulk carrier vessel sales and a plan to order an offshore wind installation vessel, dry bulk carrier operator Scorpio Bulkers on Sunday said its Board of Directors had authorized the company, as part of its transition to a sustainable future, to sell its remaining dry bulk vessels and exit the dry bulk sector during 2021.
"As a result of this decision, the company expects to record a write-down ranging from $475.0 million to $500.0 million on vessels sold and classified as held for sale," Scorpio Bulkers said.
Pursuant to the 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 s.a.m. and Scorpio Ship Management s.a.m, Scorpio said.
"To reflect its transition, the Board of Directors has also resolved to seek shareholders' approval to change the name of the Company. The proposed new name of the Company will be announced on or before January 8, 2021," Scorpio Bulkers said.
The company, so far know as a provider of marine transportation of dry bulk commodities has recently sold eight vessels and has contracted to sell sixteen additional vessels, all of which are expected to close in the first half of 2021.
Scorpio Bulkers said it intends to sell its 25 remaining wholly-owned or finance leased drybulk vessels (including 7 Kamsarmax vessels and 18 Ultramax vessels) during 2021.
As previously reported, Scorpio Bulkers has signed a letter of intent to enter into a shipbuilding contract with Daewoo Shipbuilding and Marine Engineering Inc. to build a wind turbine installation vessel to be delivered in 2023, with options to build three further similar vessels.