Scorpio Bulkers Inks LOI for Scrubber Installs

Dry bulk shipping company Scorpio Bulkers Inc. announced that it has signed letters of intent with suppliers, engineering firms and ship repair facilities to cover the purchase and installation of exhaust gas cleaning systems, also known as scrubbers, on substantially all of its owned and finance leased Kamsarmax and Ultramax vessels.

Scorpio said the scrubbers and their installation will cost between $1.5 - $2.2 million per vessel, and the company anticipates that between 60-70 percent of these costs will be financed.

The installations are scheduled between the second quarter of 2019 and the third quarter of 2020.

Emanuele Lauro, Chairman & CEO, said, “We have long maintained that scrubbers could be the right choice for compliance with the IMO 2020 regulations. Having cautiously and patiently evaluated various risks associated with this disruptive change to our industry, we are now confident that substantial savings can be realized and that, with this investment in our vessels, our fleet will remain the most competitive in our marketplace."