Scorpio Bulkers foresees possible delays to its scrubber retrofit programme as a result of the coronavirus pandemic, and that may lead to losses that are yet to be determined.
The Emanuele Lauro-led owner and operator of 57 bulkers has installed exhaust gas cleaning systems on 11 ships as of 20 March, with plans to have 34 more vessels fitted by 2021.
Covid-19 might delay that goal for an unknown period, however, by causing disruptions in several areas of the world, particularly China, the New York-listed company said in its 2019 annual report.
"The recent outbreak of Covid-19 that began in China and subsequently spread to other parts of the world has, among other things, caused delays and uncertainties relating to newbuildings, drydockings and scrubber installations at shipyards," Scorpio Bulkers said.
"Prolonged delays, or the perception that prolonged delays may occur or continue, could have a negative result on our business, results of operations and financial conditions."
The pandemic has caused "severe global disruptions" such as travel bans, quarantines and lockdowns in China and Europe that might damage the world economy and lead to market turmoil, Scorpio Bulkers said.
"These restrictions, and future prevention and mitigation measures, are likely to have an adverse impact on global economic conditions, which could materially and adversely affect our future operations," the company said.
"Uncertainties regarding the economic impact of the Covid-19 outbreak is likely to result in sustained market turmoil, which could also negatively impact our business, financial condition and cash flows."
Covid-19 has yet to affect the company's earnings, but the disease still poses an immeasurable threat to its fiscal and operational outlook.
"We cannot predict the impact it may have on our future operations, which impact could be material and adverse, particularly if the pandemic continues to evolve into a severe worldwide health crisis," Scorpio Bulkers said.
Sister company Scorpio Tankers has thus far retrofitted 46 out of 98 vessels with scrubbers.
But in its latest annual report, the company said it expects the pandemic might affect earnings, not its goal to install the remaining scrubbers by 2021.
