Scorpio Bulkers Inc. Announces Financial Results for the First Quarter of 2017

Monaco - April 20, 2017

Scorpio Bulkers Inc. (NYSE:SALT) (“Scorpio Bulkers,” or the “Company”) today reported its results for the three months ended March 31, 2017.

Results for the Three Months Ended March 31, 2017 and 2016

For the first quarter of 2017 the Company’s GAAP net loss was $34.6 million, or $0.48 loss per diluted share. For the same period in 2016 the Company’s GAAP net loss was $58.3 million, or $1.96 loss per diluted share.

For the first quarter of 2017, the Company’s adjusted net loss was $16.4 million or $0.23 adjusted loss per diluted share, which excludes a write down of assets held for sale of $17.7 million, and a write off of deferred financing costs on the credit facility related to those specific vessels of $0.5 million. For the first quarter of 2016, the Company’s adjusted net loss was $33.4 million or $1.12 adjusted loss per diluted share, which excludes a write down of assets held for sale of $12.4 million, the write off of deferred financing costs of $2.5 million and a charterhire contract termination fee of $10.0 million (see Non-GAAP Financial Measures below).

Cash and Cash Equivalents

As of April 19, 2017, the Company had approximately $135.3 million in cash and cash equivalents.

TCE Revenue

TCE Revenue Earned during the First Quarter of 2017

• Our Kamsarmax fleet earned $9,164 per day
• Our Ultramax fleet earned $8,230 per day

Voyages Fixed thus far in the Second Quarter of 2017

• Kamsarmax fleet: approximately $9,914 per day for 59% of the days
• Ultramax fleet: approximately $8,852 per day for 57% of the days

Recent Significant Events

Agreement for the Sale of Vessels

During the first quarter of 2017, we entered into agreements with an unaffiliated third party to sell the SBI Charleston and SBI Cakewalk, two 2014 built Kamsarmax vessels, for approximately $22.5 million each.

As such, as of March 31, 2017, we classified these vessels as held for sale, recorded a loss of $17.1 million and wrote off $0.5 million of deferred financing costs. We also classified the related debt of approximately $20.1 million as a current liability. Net cash proceeds after paying off the related debt, as well as the termination fees and commissions, is approximately $24.2 million.

The sales are expected to be completed in the second quarter of 2017.

Newbuilding Vessels Deliveries

During the first quarter of 2017, the Company took delivery of the following newbuilding vessels:

• SBI Samson, an Ultramax vessel, delivered from Chengxi Shipyard Co. Ltd.
• SBI Parapara, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.
• SBI Swing, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.
• SBI Phoenix, an Ultramax vessel, delivered from Chengxi Shipyard Co. Ltd.
• SBI Mazurka, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.

Since April 1, 2017, the Company took delivery of the final vessel in our newbuilding program:

• SBI Jive, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group) Co., Ltd.

All 48 vessels in our newbuilding program have successfully been delivered. As of March 31, 2017, all contracted amounts have been paid in full and we have no further obligations due to any shipyard.

Full report

Scorpio Bulkers Inc. press release