GlobeNewswire Inc | Aug 3, 2020 04:10PM EDT

August 03, 2020

MONACO, Aug. 03, 2020 (GLOBE NEWSWIRE) -- Scorpio Bulkers Inc. (NYSE: SALT) (Scorpio Bulkers or the Company), today reported its results for the three months ended June30, 2020.

The Company also announced that on August 3, 2020, its Board of Directors declared a quarterly cash dividend of $0.05 per share on the Companys common shares.

Share and per share results included herein have been retroactively adjusted to reflect the one-for-ten reverse stock split of the Companys common shares, which took effect on April 7, 2020.

Results for the Three and Six Months Ended June30, 2020 and 2019

For the second quarter of 2020, the Companys GAAP net loss was $45.1 million, or $5.73 per diluted share, including:

-- a loss of approximately $13.9 million and cash dividend income of $0.2 million, or $1.74 per diluted share, from the Companys equity investment in Scorpio Tankers Inc.; and

-- a write-off of approximately $0.4 million, or $0.05 per diluted share, of deferred financing costs on the credit facilities related to the SBI Jaguar, SBI Taurus and SBI Bolero, all of which were sold in the second quarter of 2020.

For the same period in 2019, the Companys GAAP net income was $35.0 million, or $5.05 per diluted share. These results include a non-cash gain of approximately $52.6 million and cash dividend income of $0.5 million, or $7.67 per diluted share, from the Companys equity investment in Scorpio Tankers Inc. and a write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $5.2 million, or $0.74 per diluted share.

Total vessel revenues for the second quarter of 2020 were $26.2 million, compared to $50.7 million for the same period in 2019. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2020 was a loss of $20.6 million and EBITDA for the second quarter of 2019 was $65.2 million, respectively (see Non-GAAP Financial Measures below).

For the second quarter of 2020, the Companys adjusted net loss was $44.7 million, or $5.68 adjusted per diluted share, which excludes the impact of the write-off of deferred financing costs of approximately $0.4 million on the credit facilities related to the three vessels sold in the quarter. Adjusted EBITDA for the second quarter of 2020 was a loss of $20.6 million (see Non-GAAP Financial Measures below).

For the second quarter of 2019, the Companys adjusted net income was $40.1 million, or $5.79 adjusted per diluted share, which excludes the impact of a write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $5.2 million. Adjusted EBITDA for the second quarter of 2019 was $70.0 million (see Non-GAAP Financial Measures below).

For the first half of 2020, the Companys GAAP net loss was $169.8 million, or $23.01 per diluted share, including:

-- a loss of approximately $103.0 million and cash dividend income of $0.7 million, or $13.87 per diluted share, from the Companys equity investment in Scorpio Tankers Inc.;

-- a write-down of assets held for sale of approximately $17.0 million, or $2.31 per diluted share, related to the classification of the SBI Jaguar, SBI Taurus and SBI Bolero as held for sale in the first quarter of 2020 (the sales of all three vessels were completed in the second quarter of 2020); and

-- a write-off of approximately $0.4 million, or $0.05 per diluted share, of deferred financing costs on the credit facilities related to those three vessels.

For the first half of 2019, the Companys GAAP net income was $31.5 million, or $4.55 per diluted share. These results include a non-cash gain of approximately $67.6 million and cash dividend income of $1.0 million, or $9.92 per diluted share, from the Companys equity investment in Scorpio Tankers Inc., a write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $12.7 million, or $1.84 per diluted share, and the write-off of deferred financing costs of approximately $2.7 million, or $0.39 per diluted share.

Total vessel revenues for the first half of 2020 were $67.0 million, compared to $101.1 million for the same period in 2019. EBITDA for the first half of 2020 was a loss of $120.7 million and EBITDA for the first half of 2019 was $90.6 million (see Non-GAAP Financial Measures below).

For the first half of 2020, the Companys adjusted net loss was $152.4 million, or $20.65 adjusted per diluted share, which excludes the impact of the write-down of assets held for sale of $17.0 million and the write-off of deferred financing costs on the related credit facilities of $0.4 million. Adjusted EBITDA for the first half of 2020 was a loss of $103.7 million (see Non-GAAP Financial Measures below).

For the first half of 2019, the Companys adjusted net income was $44.2 million, or $6.39 adjusted per diluted share, which excludes the impact of the write-down of assets either sold or held for sale of $12.2 million and the write-off of deferred financing costs on the credit facilities relating to the SBI Electra and SBI Flamenco of $0.4 million. Adjusted EBITDA for the first half of 2019 was $102.8 million (see Non-GAAP Financial Measures below).

TCE Revenue

TCE Revenue Earned during the Second Quarter of 2020 (see Non-GAAP Financial Measures)

-- Our Kamsarmax fleet (which includes both scrubber fitted and non-scrubber fitted vessels) earned an average of $6,401 revenue per day. -- Our Ultramax fleet (which includes both scrubber fitted and non-scrubber fitted vessels) earned an average of $5,031 revenue per day.

Voyages Fixed thus far for the Third Quarter of 2020, as of the date hereof

-- Kamsarmax fleet (which includes both scrubber fitted and non-scrubber fitted vessels): approximately $8,655 revenue per day on average for 57% of the days. -- Ultramax fleet (which includes both scrubber fitted and non-scrubber fitted vessels): approximately $8,585 revenue per day on average for 61% of the days.

Liquidity

As of July31, 2020, the Company had total liquidity of approximately $132.4 million (comprised of approximately $41.6 million in cash and cash equivalents and approximately $90.8 million in available and undrawn capacity under its revolving credit facilities).

Recent Significant Events

COVID-19

The outbreak of the novel COVID-19 virus (coronavirus) that originated in China in December 2019 and that has spread to most developed nations of the world has resulted in the implementation of numerous restrictive actions taken by governments and governmental agencies in an attempt to control or mitigate the spread of the virus. These measures have resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets. A significant reduction in manufacturing and other economic activities has and is expected to continue to have a materially adverse impact on the global demand for raw materials, coal and other bulk cargoes that our customers transport on our vessels. This significant decline in the demand for dry bulk tonnage has negatively impacted, and may continue to adversely impact, our ability to profitably charter our vessels. When these measures and the resulting economic impact will end and what the long-term impact of such measures on the global economy will be are not known at this time. As a result, the extent to which COVID-19 will materially impact the Companys results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.

Purchase of Wind Turbine Installation Vessel

On August 3, 2020, the Company signed a non-binding letter of intent ("LOI") to purchase an NG-16000X Wind Turbine Installation Vessel (WTIV) and a 1500 LEC crane to be used on the WTIV from GustoMSC and Huisman Equipment B.V., respectively. The total cost of the project is expected to be between $265 million and$290 million, subject to change pending design modifications and further modifications due to customer requirements. The scheduled delivery date for both the WTIV and the crane is September 2023. The contract is expected to be signed in the fourth quarter of 2020 and will include options to construct up to an additional three units having similar specifications.

Emanuele A. Lauro, Chairman and Chief Executive Officer, commented, We embark on a new journey with this LOI and are pleased to be joining the legions who support renewable energy in concept, and more importantly, in practice. We appreciate the encouragement and assistance of our common partners in bulk transportation and offshore wind - including suppliers, customers, and shipbuilders - as we take a major step in transitioning the Company to a sustainable future.

This state of the art wind turbine installation vessel is scheduled to deliver before the end of 2023, entering a burgeoning market facing a critical shortage. This vessel will be able to install and maintain the largest turbines currently planned, in the depths of water, at the heights above sea level, and in the weather conditions that only purpose-built assets can access. Even with options to construct up to an additional three units which can deliver within the following 18 months, the offshore fields currently planned will face a deficit of installation, operation, and maintenance assets for years to come.

Our transition has begun.

Equity Raise

In June 2020, the Company raised net proceeds of approximately $82.3 million in an underwritten public offering of approximately 4.7 million shares of its common stock at $18.46 per share (which includes the exercise in full of the underwriters option to purchase additional shares). Scorpio Services Holding Limited, a related party to the Company, purchased 950,000 common shares in the offering at the public offering price, after which it beneficially owned 16.1% of the Companys outstanding common stock, thereby increasing Scorpio Holdings Limiteds beneficial ownership of the Companys outstanding common stock to 20.0% at that time.

Quarterly Cash Dividend

In the second quarter of 2020, the Companys Board of Directors declared and the Company paid a quarterly cash dividend of $0.05 per share totaling approximately $0.6 million.

On August 3, 2020, the Companys Board of Directors declared a quarterly cash dividend of $0.05 per share, payable on or about September 15, 2020, to all shareholders of record as of August 14, 2020. As of August 3, 2020, 11,992,380 shares were outstanding.

Investment in Scorpio Tankers Inc.

In May 2020, the Company sold 2.25 million common shares of Scorpio Tankers Inc. (NYSE: STNG) for aggregate net proceeds of approximately $42.7 million. Following the sales, the Company continues to own in aggregate approximately 2.16 million common shares of Scorpio Tankers Inc.

Vessel Sales

During the second quarter of 2020, the Company completed the sales of the SBI Jaguar and SBI Taurus, 2014 and 2015 built Ultramax vessels, respectively, and the SBI Bolero, a 2015 built Kamsarmax vessel, for approximately $53.5 million in aggregate.

During the second quarter of 2020, the Companys Board of Directors resolved to retain in the Companys fleet the four Ultramax vessels that were classified as held for sale since December 31, 2019. As such, the vessels were transferred from held for sale to held for use at current fair market value with no gain or loss recognized in the period.

Amendment of Minimum Liquidity Covenant

The Company has agreed with its lenders and a finance lessor to permanently reduce the level of the minimum liquidity covenant under the relevant debt financings from the greater of: (i) $25.0 million or (ii) $700,000 per owned vessel, to the greater of: (i) $25.0 million or (ii) $500,000 per owned vessel. As a result, on the basis of the current owned or finance leased fleet size of 49 vessels, the minimum liquidity requirement is $25.0 million (a reduction from $34.3 million).

In consideration for the above amendment, the Company has made an advance principal repayment of approximately $7.7 million in aggregate that would have fallen due in the third quarter of 2021.

Payment Holiday on Certain Future Principal Repayments

The Company has agreed with its lenders to reduce future principal repayments of approximately $29.8 million in aggregate due under six credit facilities in exchange for having made an advance principal repayment of 50% of these future principal repayments (approximately $14.9 million in aggregate). The remaining future principal repayments of $14.9 million will be added to the balloon amount for the respective credit facilities due at maturity. As a result of these agreements, the Company will not have to make certain installment payments on these facilities through the end of the second quarter of 2021 totaling $29.8 million.

In addition, the Company is currently in discussions with a specific finance lessor to add two quarterly installment payments to the balloon amount in exchange for an advance principal repayment of approximately $3.4 million. If successful, the Company would not have to make certain quarterly installment payments on this lease financing totaling $8.0 million that would have fallen due through the end of the second quarter of 2021.

Debt Overview

The Companys outstanding debt balances, gross of unamortized deferred financing costs as of June30, 2020 and July31, 2020, are as follows (dollars in thousands):

As of As of July As of July June 30, 31, 31, 2020 2020 2020 AmountDebt Financings Amount Outstanding Committed ^ (1)(2)$85.5 Million Credit Facility $ 35,971 $ 34,057 $ ? $30.0 Million Credit Facility 28,007 26,341 ? $60.0 Million Credit Facility 25,442 24,312 2,862 $184.0 Million Credit Facility 71,591 61,154 89,786 $34.0 Million Credit Facility 15,857 14,036 17,000 $90.0 Million Credit Facility 78,150 72,550 2,850 $19.6 Million Lease Financing - SBI 16,253 16,148 ? Rumba$19.0 Million Lease Financing - SBI 16,709 16,610 ? Tango$19.0 Million Lease Financing - SBI 16,833 16,739 ? Echo$20.5 Million Lease Financing - SBI 18,416 18,309 ? Hermes$21.4 Million Lease Financing - SBI 19,679 19,561 ? SambaCMBFL Lease Financing 107,644 107,644 11,842 $45.0 Million Lease Financing - SBI 41,383 41,043 ? Virgo & SBI LibraAVIC Lease Financing 106,703 105,558 8,200 $67.3 Million Lease Financing 62,615 62,137 $ 3,000 Total $ 661,253 $ 636,199 $ 135,540

^ Includes the maximum loan amount available for the installation of(1) scrubbers, following upsizes of certain credit facilities and lease financing arrangements that may not be drawn down in full.^ Includes $73.8 million and $17.0 million of available credit under(2) existing revolving credit facilities included in the $184.0 Million Credit Facility and the $34.0 Million Credit Facility, respectively.

The Companys projected quarterly debt repayments on its credit facilities and lease financing arrangements through 2021 are as follows (dollars in thousands):

Principal on Principal on Total^ (1) Credit Facilities^ Lease Financing Arrangements (3) (1)(3) ^(1)(3)Q3 2020 ^ 1,476 9,419 10,895 (2)Q4 2020 1,639 7,341 8,980 Q1 2021 1,639 7,329 8,968 Q2 2021 1,639 7,364 9,003 Q3 2021 1,226 9,803 11,029 Q4 2021 8,974 10,028 19,002 Total $ 16,593 $ 51,284 $ 67,877

Includes estimated repayments on the upsizings of credit facilities and^ certain lease financing arrangements for the installation of scrubbers,(1) for which the timing of the drawdowns and repayment schedules set forth are estimates only and may vary as the timing of the related installations finalizes.^ Relates to payments expected to be made from August 1, 2020 to September(2) 30, 2020.^ Includes the agreements and discussions in regards to the payment(3) holiday and amendment to the minimum liquidity covenant as described above.

IMO 2020

The Companys projected schedule and estimated payments for the installation of scrubbers are as follows (dollars in thousands). Through July 31, 2020, the Company has completed the installation of scrubbers on 27 (including 10 Kamsarmax vessels and 17 Ultramax vessels) of its vessels.

Expected Scrubber Installation Estimated Completion by Vessel Type Payments^ (1) Ultramax Kamsarmax Q3 2020^ (2) 1 ? 3,290 Q4 2020 ? ? 1,488 Q1 2021 ? ? ? Q2 2021 1 1 9,074 Q3 2021 1 1 8,613 Q4 2021 4 5 5,113 Q1 2022 ? ? 2,184 Total 7 7 $ 29,762

Includes estimated cash payments for scrubbers that are due in advance of the scheduled service and may be scheduled to occur in quarters prior^ to the actual installation. In addition to these installment payments,(1) these amounts also include estimates of the installation costs of such systems. The timing of the payments set forth are estimates only and may vary as the timing of the related installations finalizes.^ Relates to installations expected to be completed and payments expected(2) to be made from August 1, 2020 to September 30, 2020.

Financial Results for the Three Months Ended June30, 2020 Compared to the Three Months Ended June 30, 2019

For the second quarter of 2020, the Companys GAAP net loss was $45.1 million, or $5.73 per diluted share, compared to net income of $35.0 million, or $5.05 per diluted share, for the same period in 2019. Results for the second quarter of 2020 include: a non-cash loss of approximately $13.9 million and cash dividend income of $0.2 million, or $1.74 per diluted share, from the Companys equity investment in Scorpio Tankers Inc., and a write-off of approximately $0.4 million, or $0.05 per diluted share, of deferred financing costs on the credit facilities related to the SBI Jaguar, SBI Taurus and SBI Bolero, all of which were sold in the second quarter of 2020. Results for the second quarter of 2019 include non-cash gain of approximately $52.6 million and cash dividend income of $0.5 million, or $7.67 per diluted share, from the Companys equity investment in Scorpio Tankers Inc. and a write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $5.2 million, or $0.74 per diluted share.

EBITDA for the second quarters of 2020 and 2019 were a loss of $20.6 million and a gain of $65.2 million, respectively (see Non-GAAP Financial Measures below).

For the second quarter of 2020, the Companys adjusted net loss was $44.7 million, or $5.68 adjusted per diluted share, which excludes the impact of the write-off of deferred financing costs of approximately $0.4 million. Adjusted EBITDA for the second quarter of 2020 was a loss of $20.6 million (see Non-GAAP Financial Measures below).

For the second quarter of 2019, the Companys adjusted net income was $40.1 million, or $5.79 adjusted per diluted share, which excludes the impact of the write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $5.2 million. Adjusted EBITDA for the second quarter of 2019 was $70.0 million (see Non-GAAP Financial Measures below).

The Companys vessel revenues for the second quarter of 2020 were $26.2 million compared to $50.7 million in the second quarter of 2019. The Companys TCE revenue (see Non-GAAP Financial Measures below) for the second quarter of 2020 was $24.7 million, a decrease of $25.8 million from the prior year period.

Total operating expenses for the second quarter of 2020 were $47.6 million compared to $54.1 million in the second quarter of 2019, which included a charge related to the classification of vessels as held for sale of $4.7 million.

Ultramax Operations

Three Months Ended June 30,Dollars in thousands 2020 2019 Change % ChangeTCE Revenue: Vessel revenue $ 14,112 $ 30,696 $ (16,584 ) (54 )Voyage expenses 493 138 355 257 TCE Revenue $ 13,619 $ 30,558 $ (16,939 ) (55 )Operating expenses: Vessel operating costs 14,682 16,529 (1,847 ) (11 )Charterhire expense 830 925 (95 ) (10 )Vessel depreciation 8,190 8,911 (721 ) (8 )General and administrative 940 1,035 (95 ) (9 )expenseLoss / write-down on assets held ? 4,883 (4,883 ) NA for saleTotal operating expenses $ 24,642 $ 32,283 $ (7,641 ) (24 )Operating loss $ (11,023 ) $ (1,725 ) $ (9,298 ) (539 )

Vessel revenue for the Companys Ultramax Operations was $14.1 million for the second quarter of 2020 compared to $30.7 million in the prior year period.

TCE revenue (see Non-GAAP Financial Measures below) for the Companys Ultramax Operations was $13.6 million for the second quarter of 2020 compared to $30.6 million for the prior year period. The Companys Ultramax fleet consisted of a day-weighted average of 33 vessels owned or finance leased and one vessel time chartered-in during the second quarter of 2020 and 37 vessels owned or finance leased and one vessel time chartered-in during the second quarter of 2019. TCE revenue per day was $5,031 and $8,993 for the second quarters of 2020 and 2019, respectively.

Three Months Ended June 30,Ultramax Operations: 2020 2019 Change % ChangeTCE Revenue (in $ 13,619 $ 30,558 $ (16,939 ) (55 )thousands)TCE Revenue / Day $ 5,031 $ 8,993 $ (3,962 ) (44 )Revenue Days 2,707 3,398 (691 ) (20 )

The Companys Ultramax Operations vessel operating costs were $14.7 million for the second quarter of 2020, including approximately $0.9 million of takeover costs and contingency expenses, compared with vessel operating costs of $16.5 million in the prior year period, relating to the 33 and 37 vessels owned or finance leased on average, respectively, during the periods. The year over year decrease is due to the reduction in fleet size. Daily operating costs excluding takeover costs and contingency expenses for the second quarter of 2020 decreased to $4,698 from $4,822 in the prior year period due primarily to the timing of purchases of spares and stores as well as the timing of repairs.

Charterhire expense for the Companys Ultramax Operations was approximately $0.8 million and $0.9 million for the second quarters of 2020 and 2019, respectively and relates to the vessel the Company time chartered-in at $10,125 per day until September 2019, when the Company exercised its option to extend the time charter for one year at $10,885 per day.

Ultramax Operations depreciation decreased from $8.9 million to $8.2 million due to the decrease in fleet size and the classification of four vessels as held for sale during the first six months of 2020 (vessels classified as held for sale are not depreciated).

General and administrative expense for the Companys Ultramax Operations, which consists primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions, was approximately $0.9 million for the second quarter of 2020 and $1.0 million in the prior year period.

During the second quarter of 2019, the Company recorded a write-down on assets held for sale of $4.9 million related to the classification of two Ultramax vessels, the SBI Puma and SBI Cougar, as held for sale. These vessels were subsequently sold in the third quarter of 2019.

Kamsarmax Operations

Three Months Ended June 30,Dollars in thousands 2020 2019 Change % ChangeTCE Revenue: Vessel revenue $ 12,054 $ 20,041 $ (7,987 ) (40 )Voyage expenses 967 98 869 887 TCE Revenue $ 11,087 $ 19,943 $ (8,856 ) (44 )Operating expenses: Vessel operating costs 7,569 8,697 (1,128 ) (13 )Charterhire expense 3,646 1,378 2,268 165 Vessel depreciation 4,490 4,440 50 1 General and administrative 462 823 (361 ) (44 )expenseLoss / write-down on assets held ? (157 ) 157 100 for saleTotal operating expenses $ 16,167 $ 15,181 $ 986 6 Operating loss $ (5,080 ) $ 4,762 $ (9,842 ) (207 )

Vessel revenue for the Companys Kamsarmax Operations decreased to $12.1 million in the second quarter of 2020 from $20.0 million in the prior year period.

TCE revenue (see Non-GAAP Financial Measures) for the Companys Kamsarmax Operations was $11.1 million for the second quarter of 2020 associated with a day-weighted average of 16 vessels owned or finance leased and five vessels time chartered-in, compared to $19.9 million for the prior year period associated with a day-weighted average of 19 vessels owned or finance leased and one vessel time chartered-in. TCE revenue per day was $6,401 and $11,801 for the second quarters of 2020 and 2019, respectively.

Three Months Ended June 30,Kamsarmax Operations: 2020 2019 Change % ChangeTCE Revenue (in $ 11,087 $ 19,943 $ (8,856 ) (44 )thousands)TCE Revenue / Day $ 6,401 $ 11,801 $ (5,400 ) (46 )Revenue Days 1,732 1,690 42 2

Kamsarmax Operations vessel operating costs were $7.6 million for the second quarter of 2020, including approximately $0.5 million of takeover costs and contingency expenses, compared with vessel operating costs of $8.7 million in the prior year period, relating to 16 and 19 vessels owned or finance leased on average, respectively, during the periods. The year over year decrease is due to the reduction in fleet size. Daily operating costs excluding takeover costs and contingency expenses for the second quarter of 2020 decreased to $4,695 from $4,891 in the prior year period due primarily to the timing of purchases of spares and stores as well as the timing of repairs.

Kamsarmax Operations charterhire expense was $3.6 million in the second quarter of 2020, relating to five vessels the Company has time chartered-in.

Kamsarmax Operations depreciation was $4.5 million and $4.4 million in the second quarters of 2020 and 2019, respectively. While the number of vessels owned or finance leased on average decreased to 16 in the second quarter of 2020 from 19 in the second quarter of 2019, the SBI Electra and SBI Flamenco were classified as held for sale and sold during the second quarter of 2019 and therefore were not depreciated during the period.

General and administrative expense for the Companys Kamsarmax Operations was $0.5 million for the second quarter of 2020 and $0.8 million in the second quarter of 2019. The expense consists primarily of administrative services fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions.

In the second quarter of 2019, the Company adjusted the loss recorded in the first quarter of 2019 related to the sale of the SBI Electra and SBI Flamenco by $0.2 million.

Corporate

Certain general and administrative expenses the Company incurs, as well as all of its financial expenses and investment income or losses, are not attributable to a specific segment. Accordingly, these costs are not allocated to the Companys segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were $5.4 million and $6.4 million in the second quarters of 2020 and 2019, respectively. The decrease from the prior year is due primarily to a reduction in compensation costs.

The Company recorded a loss of approximately $13.9 million for the second quarter of 2020 and received cash dividend income of $0.2 million from its equity investment in Scorpio Tankers Inc. During the second quarter of 2019, the Company recorded a non-cash gain of approximately $52.6 million as well as cash dividend income of $0.5 million also related to its equity investment in Scorpio Tankers Inc.

Financial expenses, net of interest income decreased to $9.8 million in the second quarter of 2020 from $14.8 million in the prior year period due to lower LIBOR rates and a reduction to the Companys outstanding debt through the redemption of its 7.50% Senior Unsecured Notes during the third quarter of 2019 and managing our revolving credit facility.

Financial Results for the Six Months Ended June30, 2020 Compared to the Six Months Ended June 30, 2019

For the first half of 2020, the Companys GAAP net loss was $169.8 million, or $23.01 per diluted share, compared to GAAP net income of $31.5 million, or $4.55 per diluted share, for the same period in 2019. Results for the first half of 2020 include: a loss of approximately $103.0 million and cash dividend income of $0.7 million, or $13.87 per diluted share, from the Companys equity investment in Scorpio Tankers Inc., a write-down of assets held for sale of approximately $17.0 million, or $2.31 per diluted share, related to the classification of the SBI Jaguar, SBI Taurus and SBI Bolero as held for sale (the sales of all three vessels were completed in the second quarter of 2020), and a write-off of approximately $0.4 million, or $0.05 per diluted share, of deferred financing costs on the credit facilities related to those three vessels. Results for the first half of 2019 include non-cash gain of approximately $67.6 million and cash dividend income of $1.0 million, or $9.92 per diluted share, from the Companys equity investment in Scorpio Tankers Inc., a write-down of assets held for sale and write-off of related deferred financing costs totaling approximately $12.7 million, or $1.84 per diluted share, and a write-off of deferred financing costs of approximately $2.7 million, or $0.39 per diluted share.

EBITDA for the first halves of 2020 and 2019 were a loss of $120.7 million and a gain of $90.6 million, respectively (see Non-GAAP Financial Measures below).

For the first half of 2020, the Companys adjusted net loss was $152.4 million, or $20.65 adjusted per diluted share, which excludes the impact of the write-down of assets held for sale of approximately $17.0 million and the write-off of deferred financing costs on the related credit facilities of $0.4 million. Adjusted EBITDA for the first half of 2020 was a loss of $103.7 million (see Non-GAAP Financial Measures below).

For the first half of 2019, the Companys adjusted net income was $44.2 million, or $6.39 adjusted per diluted share, which excludes the impact of the write-down of assets either sold or held for sale of $12.2 million and the write-off of deferred financing costs on the related credit facilities of $0.4 million. Adjusted EBITDA for the first half of 2019 was $102.8 million (see Non-GAAP Financial Measures below).

The Companys revenues for the first half of 2020 were $67.0 million compared to $101.1 million in the first half of 2019. The Companys TCE revenue (see Non-GAAP Financial Measures below) for the first half of 2020 was $64.2 million, a decrease of $36.6 million from the prior year period.

Total operating expenses for the first half of 2020 were $114.3 million, including the charge related to the classification of vessels as held for sale of approximately $17.0 million, compared to $110.7 million in the first half of 2019, which also included a charge related to the classification of vessels as sold or held for sale of $12.2 million.

Ultramax Operations

Six Months Ended June 30,Dollars in thousands 2020 2019 Change % ChangeTCE Revenue: Vessel revenue $ 39,044 $ 61,977 $ (22,933 ) (37 )Voyage expenses 1,367 199 1,168 587 TCE Revenue $ 37,677 $ 61,778 $ (24,101 ) (39 )Operating expenses: Vessel operating costs 31,306 34,165 (2,859 ) (8 )Charterhire expense 1,967 1,795 172 10 Vessel depreciation 16,130 18,107 (1,977 ) (11 )General and administrative 2,056 2,062 (6 ) ? expenseLoss / write-down on assets held 7,615 4,883 2,732 56 for saleTotal operating expenses $ 59,074 $ 61,012 $ (1,938 ) (3 )Operating (loss) income $ (21,397 ) $ 766 $ (22,163 ) NA

Vessel revenue for the Companys Ultramax Operations decreased to $39.0 million for the first half of 2020 from $62.0 million in the prior year period.

TCE revenue (see Non-GAAP Financial Measures below) for the Companys Ultramax Operations was $37.7 million for the first half of 2020 compared to $61.8 million for the prior year period. The Companys Ultramax fleet consisted of a day-weighted average of 34 vessels owned or finance leased and one vessel time chartered-in during the first half of 2020 and 37 vessels owned or finance leased and one vessel time chartered-in during the first half of 2019. TCE revenue per day was $6,890 and $9,086 for the first half of 2020 and 2019, respectively.

Six Months Ended June 30, Ultramax Operations: 2020 2019 Change % ChangeTCE Revenue (in $ 37,677 $ 61,778 $ (24,101 ) (39 )thousands)TCE Revenue / Day $ 6,890 $ 9,086 $ (2,196 ) (24 )Revenue Days 5,468 6,799 (1,331 ) (20 )

The Companys Ultramax Operations vessel operating costs were $31.3 million for the first half of 2020, including approximately $1.7 million of takeover costs and contingency expenses, compared with vessel operating costs of $34.2 million in the prior year period, relating to the 34 and 37 vessels owned or finance leased on average, respectively, during the periods. The year over year decrease is due to the reduction in fleet size. Daily operating costs excluding takeover costs and contingency expenses for the first half of 2020 decreased to $4,832 from $4,913 in the prior year period due primarily to the timing of purchases of spares and stores as well as the timing of repairs.

Charterhire expense for the Companys Ultramax Operations was approximately $2.0 million and $1.8 million for the first halves of 2020 and 2019, respectively and relates to the vessel the Company time chartered-in at $10,125 per day until September 2019, when the Company exercised its option to extend the time charter for one year at $10,885 per day.

Ultramax Operations depreciation decreased from $18.1 million for the first half of 2019 to $16.1 million for the first half of 2020 due to the decrease in fleet size and the classification of four vessels as held for sale during the first six months of 2020 (vessels classified as held for sale are not depreciated).

General and administrative expense for the Companys Ultramax Operations, which consists primarily of administrative service fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions, was approximately $2.1 million for the first halves of both 2020 and 2019.

During the first half of 2020, the Company recorded a write-down on assets held for sale of $7.6 million related to the classification of two Ultramax vessels, the SBI Jaguar and SBI Taurus, as held for sale. The sales were completed in April 2020. During the first half of 2019, the Company recorded a similar write-down on the SBI Puma and SBI Cougar which were sold in the fourth quarter of 2019.

Kamsarmax Operations

Six Months Ended June 30, Dollars in thousands 2020 2019 Change % ChangeTCE Revenue: Vessel revenue $ 27,946 $ 39,111 $ (11,165 ) (29 )Voyage expenses 1,453 146 1,307 895 TCE Revenue $ 26,493 $ 38,965 $ (12,472 ) (32 )Operating expenses: Vessel operating costs 15,629 17,331 (1,702 ) (10 )Charterhire expense 7,207 1,487 5,720 385 Vessel depreciation 8,893 9,163 (270 ) (3 )General and 1,011 1,112 (101 ) (9 )administrative expenseLoss / write-down on 9,394 7,352 2,042 28 assets held for saleTotal operating expenses $ 42,134 $ 36,445 $ 5,689 16 Operating (loss) income $ (15,641 ) $ 2,520 $ (18,161 ) (721 )

Vessel revenue for the Companys Kamsarmax Operations decreased to $27.9 million in the first half of 2020 from $39.1 million in the prior year period.

TCE revenue (see Non-GAAP Financial Measures) for the Companys Kamsarmax Operations was $26.5 million for the first half of 2020 associated with a day-weighted average of 17 vessels owned or finance leased and five vessels time chartered-in, compared to $39.0 million for the prior year period associated with a day-weighted average of 19 vessels owned or finance leased and one vessel time chartered-in. TCE revenue per day was $7,822 and $11,484 for the first halves of 2020 and 2019, respectively.

Six Months Ended June 30, Kamsarmax Operations: 2020 2019 Change % ChangeTCE Revenue (in thousands) $ 26,493 $ 38,965 $ (12,472 ) (32 )TCE Revenue / Day $ 7,822 $ 11,484 $ (3,662 ) (32 )Revenue Days 3,387 3,393 (6 ) ?

Kamsarmax Operations vessel operating costs were $15.6 million for the first half of 2020, including approximately $0.8 million of takeover costs and contingency expenses, compared with vessel operating costs of $17.3 million in the prior year period, relating to 17 and 19 vessels owned or finance leased on average, respectively, during the periods. The year over year decrease is due to the reduction in fleet size. Daily operating costs excluding takeover costs and contingency expenses for the first half of 2020 decreased to $4,874 from $5,001 in the prior year period due primarily to the timing of purchases of spares and stores as well as the timing of repairs.

Kamsarmax Operations charterhire expense was $7.2 million in the first half of 2020, relating to five vessels the Company has time chartered-in, the first of which was time chartered-in during 2019.

Kamsarmax Operations depreciation was $8.9 million and $9.2 million in the first halves of 2020 and 2019, respectively, as the number of vessels owned or finance leased on average decreased to 17 in the first half of 2020 from 19 in the first half of 2019.

General and administrative expense for the Companys Kamsarmax Operations was $1.0 million for the first half of 2020 and $1.1 million in the first half of 2019. The expense consists primarily of administrative services fees, which are incurred on a per vessel per day basis, and bank charges, which are incurred based on the number of transactions.

During the first half of 2020, the Company recorded a write down on assets held for sale of$9.4 million related to the classification of the SBI Bolero as held for sale. In the first half of 2019, $7.4 million was written downrelated to the sale of the SBI Electra and SBI Flamenco.

Corporate

Certain general and administrative expenses the Company incurs, as well as all of its financial expenses and investment income or losses, are not attributable to a specific segment. Accordingly, these costs are not allocated to the Companys segments. These general and administrative expenses, including compensation, audit, legal and other professional fees, as well as the costs of being a public company, such as director fees, were $10.2 million and $12.9 million in the first halves of 2020 and 2019, respectively. The decrease from the prior year is due primarily to a reduction in compensation costs.

The Company recorded a loss of approximately $103.0 million for the first half of 2020 and received cash dividend income of $0.7 million from its equity investment in Scorpio Tankers Inc. During the first half of 2019, the Company recorded a non-cash gain of approximately $67.6 million as well as cash dividend income of $1.0 million also related to its equity investment in Scorpio Tankers Inc.

Financial expenses, net of interest income decreased to $20.0 million in the first half of 2020 from $27.5 million in the prior year period due to lower LIBOR rates and a reduction in the Companys outstanding debt through the redemption of its 7.50% Senior Unsecured Notes during the third quarter of 2019 and managing our revolving credit facility.

Scorpio Bulkers Inc. and SubsidiariesConsolidated Statements of Operations(Amounts in thousands, except per share data)

Unaudited Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019Revenue: Vessel revenue $ 26,166 $ 50,737 $ 66,990 $ 101,088 Operating expenses: Voyage expenses 1,460 236 2,820 345 Vessel operating costs 22,251 25,226 46,935 51,496 Charterhire expense 4,476 2,303 9,174 3,282 Vessel depreciation 12,680 13,351 25,023 27,270 General and 6,777 8,232 13,305 16,060 administrative expensesLoss / write-down onassets sold or held for ? 4,726 17,009 12,235 saleTotal operating 47,644 54,074 114,266 110,688 expensesOperating loss (21,478 ) (3,337 ) (47,276 ) (9,600 )Other income (expense): Interest income 49 330 172 674 Income from equity (13,693 ) 53,143 (102,324 ) 68,646 investmentsForeign exchange loss (76 ) (47 ) (130 ) (51 )Financial expense, net (9,853 ) (15,120 ) (20,196 ) (28,170 )Total other (expense) (23,573 ) 38,306 (122,478 ) 41,099 incomeNet loss $ (45,051 ) $ 34,969 $ (169,754 ) $ 31,499 Loss per share: Basic $ (5.73 ) $ 5.16 $ (23.01 ) $ 4.66 Diluted $ (5.73 ) $ 5.05 $ (23.01 ) $ 4.55 Basic weighted averagenumber of common shares 7,868 6,773 7,379 6,760 outstandingDiluted weightedaverage number of 7,868 6,930 7,379 6,917 common sharesoutstanding

Scorpio Bulkers Inc. and SubsidiariesConsolidated Balance Sheets(Dollars in thousands)

Unaudited June 30, 2020 December 31, 2019Assets Current assets Cash and cash equivalents $ 68,307 $ 42,530 Accounts receivable 14,478 13,209 Prepaid expenses and other current assets 6,847 9,547 Total current assets 89,632 65,286 Non-current assets Vessels, net 1,319,518 1,271,993 Assets held for sale ? 77,536 Equity investments 27,607 173,298 Deferred financing costs, net 2,541 2,982 Other assets 48,415 74,464 Total non-current assets 1,398,081 1,600,273 Total assets $ 1,487,713 $ 1,665,559 Liabilities and shareholders? equity Current liabilities Bank loans, net $ 34,090 $ 44,956 Capital lease obligations 69,096 29,159 Accounts payable and accrued expenses 44,712 49,718 Total current liabilities 147,898 123,833 Non-current liabilities Bank loans, net 216,706 332,613 Capital lease obligations 332,312 321,646 Other liabilities 1,323 12,500 Total non-current liabilities 550,341 666,759 Total liabilities 698,239 790,592 Shareholders? equity Preferred shares, $0.01 par value per share;50,000,000 shares authorized; no shares issued ? ? or outstandingCommon shares, $0.01 par value per share;authorized 31,875,000 and 21,250,000 shares asof June 30, 2020 and December 31, 2019; 854 809 outstanding 11,992,580 shares as of June 30,2020 and 7,248,180 as of December 31, 2019Paid-in capital 1,801,360 1,717,144 Common shares held in treasury, at cost;856,785 shares at June 30, 2020 and December (56,720 ) (56,720 )31, 2019Accumulated deficit (956,020 ) (786,266 )Total shareholders? equity 789,474 874,967 Total liabilities and shareholders? equity $ 1,487,713 $ 1,665,559

Scorpio Bulkers Inc. and SubsidiariesConsolidated Statements of Cash Flows (unaudited)(Amounts in thousands)

Six Months Ended June 30, 2020 2019Operating activities Net loss $ (169,754 ) $ 31,499 Adjustment to reconcile net income (loss) to net cash provided byoperating activities: Restricted share amortization 4,019 4,297 Vessel depreciation 25,023 27,270 Amortization of deferred financing costs 2,022 4,429 Write-off of deferred financing costs 366 446 Loss / write-down on assets held for sale 15,420 10,385 Net unrealized (gains) losses on investments 102,980 (67,565 )Dividend income on equity investment (656 ) (1,082 )Drydocking expenditure (10,775 ) (1,362 )Changes in operating assets and liabilities: (Decrease) increase in accounts receivable (1,269 ) 353 Decrease in prepaid expenses and other assets 12,774 (6,167 )Decrease in accounts payable and accrued expenses (15,251 ) 1,315 Net cash (used in) provided by operating activities (35,101 ) 3,818 Investing activities Equity investment (1,500 )Sale of equity investment 42,711 ? Dividend income on equity investment 656 1,082 Proceeds from sale of assets held for sale 52,518 47,302 Scrubber payments (37,805 ) (5,746 )Net cash provided by investing activities 58,080 41,138 Financing activities Proceeds from issuance of common stock 82,254 ? Proceeds from issuance of long-term debt 110,179 242,260 Repayments of long-term debt (187,624 ) (212,560 )Dividends paid (2,011 ) (2,849 )Net cash provided by financing activities 2,798 26,851 Increase in cash and cash equivalents 25,777 71,807 Cash and cash equivalents, beginning of period 42,530 67,495 Cash and cash equivalents, end of period $ 68,307 $ 139,302

Scorpio Bulkers Inc. and SubsidiariesOther Operating Data (unaudited)

Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019Time charter equivalent revenue ($000?s) ^(1):Vessel revenue $ 26,166 $ 50,737 $ 66,990 $ 101,088 Voyage expenses (1,460 ) (236 ) (2,820 ) (345 )Time charter equivalent $ 24,706 $ 50,501 $ 64,170 $ 100,743 revenueTime charter equivalent revenue attributable to:Kamsarmax $ 11,087 $ 19,943 $ 26,493 $ 38,965 Ultramax 13,619 30,558 37,677 61,778 $ 24,706 $ 50,501 $ 64,170 $ 100,743 Revenue days: Kamsarmax 1,732 1,690 3,387 3,393 Ultramax 2,707 3,398 5,468 6,799 Combined 4,439 5,088 8,855 10,192 TCE per revenue day ^(1): Kamsarmax $ 6,401 $ 11,801 $ 7,822 $ 11,484 Ultramax $ 5,031 $ 8,993 $ 6,890 $ 9,086 Combined $ 5,566 $ 9,926 $ 7,247 $ 9,885

The Company defines Time Charter Equivalent (TCE) revenue as vessel revenues less voyage expenses. Such TCE revenue, divided by the number of the Company?s available days during the period, or revenue days, is TCE per revenue day, which is consistent with industry standards. TCE^ per revenue day is a common shipping industry performance measure used(1) primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire rates for vessels on time charters generally are expressed in such amounts.

The Company reports TCE revenue, a non-GAAP financial measure, because (i)the Company believes it provides additional meaningful information in conjunction with vessel revenues and voyage expenses, the most directly comparable U.S. GAAP measures, (ii)it assists the Companys management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance, (iii)it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping companys performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods, and (iv)the Company believes that it presents useful information to investors. See Non-GAAP Financial Measures below.

Fleet List as of July31, 2020

Vessel Name Year Built DWT Vessel Scrubber Type Installed ?SBI Samba 2015 84,000 Kamsarmax YesSBI Rumba 2015 84,000 Kamsarmax YesSBI Capoeira 2015 82,000 Kamsarmax NoSBI Carioca 2015 82,000 Kamsarmax YesSBI Conga 2015 82,000 Kamsarmax NoSBI Sousta 2016 82,000 Kamsarmax NoSBI Rock 2016 82,000 Kamsarmax NoSBI Lambada 2016 82,000 Kamsarmax NoSBI Reggae 2016 82,000 Kamsarmax NoSBI Zumba 2016 82,000 Kamsarmax YesSBI Macarena 2016 82,000 Kamsarmax YesSBI Parapara 2017 82,000 Kamsarmax YesSBI Mazurka 2017 82,000 Kamsarmax YesSBI Swing 2017 82,000 Kamsarmax YesSBI Jive 2017 82,000 Kamsarmax YesSBI Lynx 2018 82,000 Kamsarmax YesTotal Kamsarmax 1,316,000 SBI Antares 2015 61,000 Ultramax YesSBI Athena 2015 64,000 Ultramax YesSBI Bravo 2015 61,000 Ultramax YesSBI Leo 2015 61,000 Ultramax YesSBI Echo 2015 61,000 Ultramax YesSBI Lyra 2015 61,000 Ultramax YesSBI Tango 2015 61,000 Ultramax NoSBI Maia 2015 61,000 Ultramax YesSBI Hydra 2015 61,000 Ultramax YesSBI Subaru 2015 61,000 Ultramax YesSBI Pegasus 2015 64,000 Ultramax NoSBI Ursa 2015 61,000 Ultramax NoSBI Thalia 2015 64,000 Ultramax NoSBI Cronos 2015 61,000 Ultramax NoSBI Orion 2015 64,000 Ultramax NoSBI Achilles 2016 61,000 Ultramax NoSBI Hercules 2016 64,000 Ultramax NoSBI Perseus 2016 64,000 Ultramax NoSBI Hermes 2016 61,000 Ultramax NoSBI Zeus 2016 60,200 Ultramax NoSBI Hera 2016 60,200 Ultramax NoSBI Hyperion 2016 61,000 Ultramax NoSBI Tethys 2016 61,000 Ultramax YesSBI Phoebe 2016 64,000 Ultramax YesSBI Poseidon 2016 60,200 Ultramax YesSBI Apollo 2016 60,200 Ultramax YesSBI Samson 2017 64,000 Ultramax NoSBI Phoenix 2017 64,000 Ultramax NoSBI Gemini 2015 64,000 Ultramax YesSBI Libra 2017 64,000 Ultramax YesSBI Aries 2015 64,000 Ultramax YesSBI Pisces 2016 64,000 Ultramax NoSBI Virgo 2017 64,000 Ultramax YesTotal Ultramax 2,051,800 Total Owned or Finance Leased 3,367,800 Vessels DWT

Time chartered-in vessels

The Company currently time charters-inoneUltramax vessel and five Kamsarmax vessels. The terms of the contracts are summarized as follows:

Vessel Year Country DailyType Built DWT of Build Base Earliest Expiry RateUltramax 2017 62,100 Japan $ 10,885 30-Sep-20 ^ (1)Kamsarmax 2019 81,100 China Variable 10-Mar-21 ^ (2)Kamsarmax 2019 81,100 China Variable 7-Apr-21 ^ (3)Kamsarmax 2018 82,000 China $ 12,500 25-June-21 ^ (4)Kamsarmax 2018 81,100 China Variable 13-Jul-21 ^ (5)Kamsarmax 2015 81,100 China Variable 22-Jul-21 ^ (6)Total TC 468,500 DWT

This vessel was originally time chartered-in for 22 to 24 months at the^ Company?s option at $10,125 per day. In September 2019, the Company(1) exercised its option to extend the time charter for one year at $10,885 per day. The vessel was delivered to the Company in September 2017.^ This vessel has been time chartered-in for 24 to 27 months at the(2) Company?s option at 118% of the Baltic Exchange?s 74,000 DWT Panamax Index, or the BPI. The vessel was delivered to the Company in March 2019.^ This vessel has been time chartered-in for 24 to 27 months at the(3) Company?s option at 118% of the BPI. The vessel was delivered to the Company in May 2019. This vessel has been time chartered-in for 24 months at $12,000 per day^ for the first 12 months and at $12,500 per day for the second 12 months.(4) The Company has the option to extend this time charter for 12 months at $13,000 per day and an additional 12 months at $14,500 per day. The vessel was delivered to the Company in July 2019.^ This vessel has been time chartered-in for 24 to 27 months at the(5) Company?s option at 118% of the BPI. The vessel was delivered to the Company in July 2019.^ This vessel has been time chartered-in for 24 to 27 months at the(6) Company?s option at 118% of the BPI. The vessel was delivered to the Company in August 2019.

Conference Call on Results:

A conference call to discuss the Companys results will be held Tuesday, August 4, 2020, at 9:00 AM Eastern Daylight Time / 3:00 PM Central European Summer Time. Those wishing to listen to the call should dial 1 (866) 219-5268 (U.S.) or 1 (703) 736-7424 (International) at least 10 minutes prior to the start of the call to ensure connection. The conference participant passcode is 7794355. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.

There will also be a simultaneous live webcast over the internet, through the Scorpio Bulkers Inc. website www.scorpiobulkers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Webcast URL: https://edge.media-server.com/mmc/p/tg4ckw6t

About Scorpio Bulkers Inc.

Scorpio Bulkers Inc. is a provider of marine transportation of dry bulk commodities, and is investing in the next generation of wind turbine installation vessels. Scorpio Bulkers Inc. has an operating fleet of 55 vessels consisting of 49 wholly-owned or finance leased drybulk vessels (including 16 Kamsarmax vessels and 33 Ultramax vessels), and six time chartered-invessels (including five Kamsarmax vessels and one Ultramax vessel). In addition to its dry bulk fleet, the Company has signed a letter of intent to enter into a shipbuilding contract with Daewoo Shipbuilding and Marine Engineering Inc. to build a wind turbine installation vessel to be delivered in 2023, with options to build three further similar vessels. The Companys owned and finance leased fleet has a total carrying capacity of approximately 3.4million dwt and all of the Companys owned and finance leased vessels will have carrying capacities of greater than 60,000 dwt. Additional information about the Company is available on the Companys websitewww.scorpiobulkers.com, which is not a part of this press release.

Non-GAAP Financial Measures

To supplement the Companys financial information presented in accordance with accounting principles generally accepted in the U.S. (GAAP) management uses certain non-GAAP financial measures as such term is defined in Regulation G promulgated by the U.S. Securities and Exchange Commission (the SEC). Generally, a non-GAAP financial measure is a numerical measure of a companys operating performance, financial position or cash flows that excludes or includes amounts that are included in, or excluded from, the most directly comparable measure calculated and presented in accordance with GAAP. Management believes the presentation of these measures provides investors with greater transparency and supplemental data relating to the Companys financial condition and results of operations, and therefore a more complete understanding of factors affecting its business than GAAP measures alone.In addition, management believes the presentation of these matters is useful to investors for period-to-period comparison of results as the items may reflect certain unique and/or non-operating items such as asset sales, write-offs, contract termination costs or items outside of managements control.

Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted net income (loss) and related per share amounts, as well as adjusted EBITDA and TCE Revenue are non-GAAP financial measures that the Company believes provide investors with a means of evaluating and understanding how the Companys management evaluates the Companys operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliations of EBITDA, adjusted net income (loss) and related per share amounts, and adjusted EBITDA. Please see Other Operating Data for a reconciliation of TCE revenue.

EBITDA (unaudited)

Three Months Ended Six Months Ended June 30, June 30,In thousands 2020 2019 2020 2019Net (loss) income $ (45,051 ) 34,969 $ (169,754 ) $ 31,499 Add Back: Net interest expense 8,430 11,185 17,637 22,620 Depreciation and 15,992 19,079 31,430 36,443 amortization ^(1)EBITDA $ (20,629 ) 65,233 $ (120,687 ) $ 90,562

(1) Includes depreciation, amortization of deferred financing costs and restricted share amortization.

Adjusted net (loss) income (unaudited)

Three Months Ended June 30,In thousands, except per 2020 2019share data Amount Per share Amount Per shareNet (loss) income $ (45,051 ) $ (5.73 ) $ 34,969 $ 5.05 Adjustments: Loss / write-down on assets ? ? 4,726 0.68 sold or held for saleWrite-off of deferred 366 0.05 446 0.06 financing costTotal adjustments $ 366 $ 0.05 $ 5,172 $ 0.74 Adjusted net loss (income) $ (44,685 ) $ (5.68 ) $ 40,141 $ 5.79

Six Months Ended June 30, Six Months Ended June 30,In thousands,except per share 2020 2019data Amount Per share Amount Per shareNet (loss) income $ (169,754 ) $ (23.01 ) $ 31,499 $ 4.55 Adjustments: Loss / write-downon assets sold or 17,009 2.31 12,235 1.77 held for saleWrite-off ofdeferred financing 366 0.05 446 0.07 costTotal adjustments $ 17,375 $ 2.36 $ 12,681 $ 1.84 Adjusted net (loss) $ (152,379 ) $ (20.65 ) $ 44,180 $ 6.39 income

Adjusted EBITDA (unaudited)

Three Months Ended June 30, Six Months Ended June 30,In thousands 2020 2019 2020 2019Net (loss) income $ (45,051 ) $ 34,969 $ (169,754 ) $ 31,499 Impact of 366 5,172 17,375 12,681 adjustmentsAdjusted net (44,685 ) 40,141 (152,379 ) 44,180 (loss) incomeAdd Back: Net interest 8,430 11,185 17,637 22,620 expenseDepreciation and 15,626 18,633 31,064 35,997 amortization ^(1)Adjusted EBITDA $ (20,629 ) $ 69,959 $ (103,678 ) $ 102,797

(1) Includes depreciation, amortization of deferred financing costs and restricted share amortization.

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words believe, anticipate, intend, estimate, forecast, project, plan, potential, may, should, expect, pending and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our managements examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, the length and severity of the recent novel coronavirus (COVID-19) outbreak, including its effect on demand for dry bulk products and the transportation thereof, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, counterparty performance, ability to obtain financing and the availability of capital resources (including for capital expenditures) and comply with covenants in such financing arrangements, planned capital expenditures, our ability to successfully identify, consummate, integrate amd realize the expected benefits from acquisitions and changes to our business strategy, fluctuations in the value of our investments, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the SEC for a more complete discussion of these and other risks and uncertainties.

Contact:

Scorpio Bulkers Inc.+377-9798-5715 (Monaco)+1-646-432-1675 (New York)