GRM Investments takes a first pinch of SALT

Investor is a new name on the shareholder roster of Scorpio Bulkers.

GRM Investments has emerged as a major shareholder in New York-listed Scorpio Bulkers.

It has snapped up an 8.65% slice of the company, an SEC filing said.

Based on the last trade of the Scorpio Bulkers' stock GMR’s 2,482,583 shares are worth $9.31m.

GMR has not previously disclosed any interest in either Scorpio Bulkers or sibling, Scorpio Tankers.

Scorpio Bulkers has been actively selling ships from its vast orderbook, with Robert Perri of Axia Capital suggesting the company now has the the ability to weather at least another two years of a down market.

“While the moves made have given the company a nice runway for when the market does recover, we believe its fleet composition will give it less earnings potential when that does occur,” he said in a report today.

He believes the market will remain under pressure for at least the next two years and sees little reason for optimism.

“2015 was one of the worst markets for drybulk vessels in its history as the BDI hit a record low level in December, as demand for drybulk goods appears to be roughly flat year over year,” he said.

“Going forward, we believe that we may eventually enter a market where demand will outpace supply in the drybulk shipping industry towards the second half of 2016. 

“However, given the current oversupply of vessels in the marketplace that has been built over the past five years, we expect rates to remain at depressed levels for at least two more years as the market struggles to find a new equilibrium.”

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