Scorpio Bulkers should sell its last remaining five capesize bulkers to extend its cash runway, a top analyst has advised.

“At the current rate of forecast cash burn we estimate Scorpio could breach its minimum liquidity covenant in the third quarter of 2018,” says UBS analyst Spiro Dounis.

“In order to extend the runway to the end of 2019 we believe the shipowner needs to sell the remaining five capesizes vessels.”

Dounis