Star Bulk announces seven-vessel transaction with Scorpio Bulkers

Star Bulk has entered into an agreement with Scorpio Bulkers to acquire seven bulk carriers – three of which are equipped with scrubbers.

Star Bulk will assume the outstanding lease obligations of the vessels which are currently at $102.3 million. As consideration, the bulk shipping company will issue three million newly issued SBLK shares to Scorpio.

As previously reported, Scorpio Bulkers, which had previously announced plans to equip 90 vessels in its fleet with scrubbers, confirmed in December 2020 that it was to exit the dry bulk sector and would look to sell its remaining dry bulk vessels this year.

Last month, the company announced it intends to change its name to Eneti Inc. as the company seeks to move towards marine-based renewable energy.

Star Bulk is a well-known proponent of exhaust gas cleaning systems, having opted to equip its entire fleet with the emission abatement technology in 2018. Last month, President, Hamish Norton, revealed the company had covered half the cost of installing its exhaust gas cleaning systems and that it expects to cover the remaining cost this year.

The vessels included in the transaction with Scorpio Bulkers include the scrubber-equipped SBI Subaru, SBI Carioca and SBI Macarena. The four non-scrubber equipped vessels are the SBI Pegasus, SBI Ursa, SBI Capoeira and SBI Lambada. The vessels range between 61,000 DWT-82,000 DWT.

The vessels are expected to be delivered to Star Bulk within the first and early second quarter of this year.

Rhys Berry

Rhys Berry