More scrubber options exercised

Malcolm Latarche
Malcolm Latarche
ShipInsight

21 November 2018


Two leading ship operators have increased their scrubber take-up by exercising options on retrofit installation.

During Golden Ocean’s Q3 results presentations, Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management commented on improved performance and said " We have further strengthened our fleet’s competitive advantage by declaring options for additional scrubbers. A large part of our Capesize fleet that have exposure to fuel cost will be retrofitted with scrubbers and is expected to significantly increase the company’s cash generation from 2020 and onwards.

Golden Ocean

In August 2018, the Company entered into an agreement to purchase 16 scrubbers with options to purchase nine more to be installed on certain of its Capesize vessels. In November 2018, the company has now declared four of the nine options and is still evaluating whether and when to declare the last five options. The scrubbers will be installed during routine dry dockings, the majority of which are scheduled for 2019 or early 2020.

During its presentation the company said the daily saving forecast for scrubber equipped Capesize vessels was around $5,700 for a modern vessel and over $7000 for a ten-year old ship.

The second announcement has come from US-based Eagle Bulk Shipping. It has exercised its options to purchase 15 additional scrubbers which are to be retrofitted on vessels within its fleet. This follows the Company’s prior announcement that it had entered into a series of agreements for the purchase of up to 37 scrubbers, comprised of firm orders for 19 scrubbers and up to 18 additional units, at the company’s option.

Eagle Bulk intends to complete the 34 scrubber installations by January 1, 2020, to meet the IMO deadline. The company has previously said that a large amount of the work involved in the retrofits will be carried out with the vessels at sea and trading thus reducing lost time in drydock. Following the announcement, Eagle Bulk maintains options to purchase up to three additional scrubbers.