Eagle Bulk Upbeat on Market Recovery as It Slashes Loss
- Business & Finance
Marshall Islands owner of dry bulkers Eagle Bulk has managed to cut its loss in the first quarter of 2017 having reported USD 11.1 million loss, bouncing back from a loss of USD 39.2 million posted in the same period last year.
Adjusted EBITDA, which Eagle believes is one of the key metrics to measure operating performance, was USD 4.6 million for the first quarter of 2017, against USD -14.4 million a year ago.
Net time and voyage charter revenues were USD 45.9 million also up when compared with last year’s USD 21.3 million. The increase in revenue was assigned to higher time charter rates in Q1 2017 as well as an increase in available days due to chartered in vessels.
The company said that its fleet utilization increased from 98.4% to 99.3% due to better vessel performance and lower off hire days.
“During the first quarter, Eagle finalized the acquisition of 9 Crown-63 Ultramax dry bulk sister vessels – a transaction that will significantly increase our operating scale and provide meaningful exposure to the Ultramax segment. In total over the past year, we have acquired 11 modern Ultramax vessels as part of our fleet renewal and growth strategy which, in conjunction with the continued build-out of our active operator business model and charter-in fleet, is beginning to drive increased revenue. Importantly, these 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,” Gary Vogel, Eagle Bulk’s CEO, commented.
“Looking ahead, we are increasingly optimistic concerning Eagle’s enviable positioning within the dry bulk market, as well as our ability to generate value for all stakeholders.”
Since the beginning of the year the company took delivery of three vessels, the MV Singapore Eagle along with MV Mystic Eagle and the MV Southport Eagle, the first two of the nine vessels acquired from Greenship Bulk.
At the end of the quarter, the company’s cash totaled USD 145.8 million, with total liquidity standing at USD 170.8 million.