Scorpio sells two more bulkers amid switch to offshore wind

Bulker owner and operator Scorpio Bulkers is pushing forward with the disposal of vessels as part of its strategy to secure a foothold in the offshore wind market.

In its latest move, Scorpio inked agreements with an unaffiliated third party to sell SBI Phoenix and SBI Samson, two Ultramax bulk carriers built in 2017 for approximately $34 million. 

Delivery of the vessels is expected to take place in the fourth quarter of 2020.

Upon the completion of the announced vessel sales, the shipowner will have an operating fleet of 47 vessels consisting of 44 wholly-owned or finance leased drybulk vessels, and five time-chartered-in Kamsarmax vessels. 

The company has been on a selling spree since it announced an investment into a next-generation wind turbine installation vessel back in August.

Since the end of September, the shipowner has sold three Kamsarmax ships for a total of around $52 million, and two Ultramaxes, with the latest sale.

The company signed a Letter of Intent with South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering Inc (DSME) to construct a wind turbine installation vessel, costing approximately $265-$290 million. 

The final construction contract is expected to be signed in early Q4 2020, once the final design details are agreed upon, and will include options to construct up to an additional three units having similar specifications.

The ship is expected to be deployed globally, however, there is reach demand slated in Asia, Europe ad North America.

The vessel is scheduled for delivery in 2023.

The entrance into a completely new sector for the company was enticed by the ongoing transition from the company’s clients from fossil fuels to low carbon technologies and less-polluting energy sources.

Offshore wind emerged as a tempting market as it has a strong and predictable outlook, when compared to dry bulk.