Eagle Bulk Trims Loss in 2Q

  • Business & Finance

Owner and operator of dry bulk vessels Eagle Bulk Shipping ended the second quarter of 2017 with a narrowed net loss of USD 5.9 million, compared to a net loss of USD 22.5 million reported in the same quarter a year earlier. 

Adjusted EBITDA amounted to USD 9.3 million in 2Q 2017, compared to a negative adjusted EBITDA of (USD 6.7 million) for the comparable quarter in 2016.

The company’s net revenue for the period stood at USD 9.3 million, a 109% increase compared to the same period in 2016. Net time and voyage charter revenues in the quarter ended June 30, 2017, were USD 53.6 million compared with USD 25.6 million recorded in 2Q 2016.

As explained, the increase in revenue was attributable to a higher number of freight voyages and higher time charter hire rates in the second quarter of 2017 as well as an increase in available days due to a rise in the owned fleet and chartered in vessels. Eagle Bulk’s fleet utilization increased from 99.1% to 99.6% due to better vessel performance and lower off hire days.

“During the second quarter, we delivered results that affirm the inherent potential of our active management model, as well as tangible progress towards Eagle Bulk’s larger goal of becoming the premier owner-operator of Supramax / Ultramax vessels,” Gary Vogel, Eagle Bulk’s CEO, commented.

“This progress is reflected in quarterly performance well in excess of the Baltic Supramax Index and in our continued fleet growth and optimization. Importantly, these positive developments are occurring against the backdrop of continued improvement in the dry bulk market itself with respect to both trade demand and vessel supply fundamentals,” Vogel added.

So far, the company took delivery of eight Ultramax vessels acquired from Greenship Bulk, including the most recent deliveries of Rowayton Eagle and Madison Eagle.

Additionally, Eagle Bulk inked a memorandum of agreement (MOA) to sell the 53,000 dwt Woodstar for USD 7.8 million and delivered the ship to the buyers subsequent to the quarter end.

The company also signed MOA to sell the 53,000 dwt Wren for USD 7.6 million. The vessel is expected to be delivered to the buyers in the fourth quarter of 2017, Eagle Bulk said.

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