Scorpio Bulkers cannot predict the effects of a prolonged US-China trade war but the company is ready for just about any risk, says president Robert Bugbee.
The New York-listed owner has spent the past half year raising liquidity through various means, including several sale-and-leaseback deals.
"We don't know exactly how that [trade war] will happen," he told TradeWinds Wednesday during the 32nd annual Marine Money Conference in New York.
"Clearly there are macroeconomic risks out there, whether or not it's potentially trade wars, whether or not we already have a slowing economy, whether or not it's economic turmoil.
"These are risks, so what we've done is spent the last fix, six months raising the liquidity in the company. ... We've done the preparations."
The latest such transaction involved six 2015-built panamaxes headed over to AVIC's balance sheet for the next eight years called Antares, Bravo, Hydra, Leo, Lyra and Maia.
That deal alone lifted Scorpio Bulkers' liquidity by $62.4m after repayment of some debt.
The company has further insulated itself from risk with the previously announced $100m investment in 10.9% of Scorpio Tankers, Bugbee noted.
"We really believe that the Scorpio Tankers investment is just beginning to unfold, so we want to maintain that position for quite some time," he said.
