Scorpio Bulkers announced that between January 31 and February 10 the president of the company, Robert Bugbee, purchased call options on 730,000 common shares of SALT stock with a strike price of $3.00 and an expiration of December 2020 for approximately $900,000.
Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities. Scorpio Bulkers Inc. has an operating fleet of 58 vessels consisting of 52 wholly-owned or finance leased drybulk vessels (including 17 Kamsarmax vessels and 35 Ultramax vessels), and six time chartered-in vessels (including five Kamsarmax vessels and one Ultramax vessel). The Company’s owned and finance leased fleet has a total carrying capacity of approximately 3.6 million dwt and all of the Company’s owned vessels have carrying capacities of greater than 60,000 dwt.
On February 4, 2020, Pareto analyst Eirik Haavaldsen upgraded Scorpio Bulkers to Buy from Hold with a price target of $5, down from $5.60. With the shares down 40%, the near-term outlook for drybulk markets is now priced in, Haavaldsen tells investors in a research note.
On January 28, 2020, B. Riley FBR analyst Liam Burke lowered his price target for Scorpio Bulkers to $6.50 from $9.50 to reflect four fewer vessels in the fleet and a weaker Q2 related to the short-term effect the coronavirus could have on the Chinese economy. However, the analyst maintains a Buy rating on the shares. Over the long term, the sector is seeing an improving demand profile with tightening capacity, Burke tells investors in a research note.
On January 27, 2020, Scorpio Bulkers reported Q4 adjusted EPS of 57c versus the consensus estimate of 0c. The company reported Q4 revenue of $60.3M versus the consensus estimate of $63.8M.
For the fourth quarter of 2019, the Company’s GAAP net income was $15.1M, or 21c per diluted share, including: a non-cash gain of approximately $46.1M and cash dividend income of $0.5M, or 66c per diluted share, primarily from the Company’s equity investment in Scorpio Tankers Inc.; a write-down of assets held for sale of approximately $25.2M, or 36c per diluted share, related to the classification of four Ultramax vessels as held for sale; and a write-off of approximately $0.2M of deferred financing costs on the credit facility related to the SBI Puma and the SBI Cougar. Total vessel revenues for the fourth quarter of 2019 were $60.3M, compared to $65.2M for the same period in 2018. Earnings before interest, taxes, depreciation and amortization for the fourth quarters of 2019 and 2018 were $41.5M and $23.3M, respectively. For the fourth quarter of 2019, the Company’s adjusted net income was $40.6M, or 57c adjusted per diluted share, which excludes the impact of the write-down of assets held for sale of approximately $25.2M relating to the classification of four Ultramax vessels as held for sale and the write-off of approximately $0.2M of deferred financing costs on the credit facility related to the SBI Puma and the SBI Cougar. Adjusted EBITDA for the fourth quarter of 2019 was $66.7M.