Friday, January 3, 2020

Scorpio Bulkers (SALT)

Tanker Investment Helps Offset Weaker Dry Bulk Market

Scorpio Bulkers Inc is a shipping company based in Monaco. It owns and operates a fleet of modern mid to large-size dry bulk carriers which provide marine transportation for major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products internationally. In terms of its dead weight tonnage, its vessels are classified as Capesize, Kamsarmax and Ultramax, by the order of highest to lowest capacity, with Kamsarmax accounting for the highest revenue.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Special dividend paid, but Scorpio Tankers (STNG) investment value still increased in 4Q2019.  While the 4Q2019 special dividend of 0.0138 STNG shares lowered the number of STNG shares owned by SALT from 5.41 million to 4.41 million, STNG investment at year end was still $12 million higher than 3Q2019. Similar to previous quarters, the change in the STNG investment value will have a non-cash impact on operating results.

Adjusting estimates to reflect weaker dry bulk market in 4Q2019. The Baltic Panamax Index (BPI) average of 1,201 was down 26% sequentially and the...

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.