US-based dry bulk operator Eagle Bulk Shipping Inc. (Eagle Bulk), one of the world’s largest owner-operators in the supramax / ultramax segment, has reported its financial results for the three months ended 31 March 2018.
Eagle Bulk's CEO, Gary Vogel, commented: "We continued to execute on our active owner-operator strategy during the first quarter, achieving a TCE of US$11 052 and outperforming the benchmark Baltic Supramax Index by over US$1100/d. This represents the fifth consecutive quarter we have meaningfully outperformed the market, which I believe underscores the value of our unique business model and our team’s ability to execute.”
“With attractive supply/demand fundamentals in place, we expect the underlying dry bulk market to continue to improve. Against this backdrop, we believe the company is well positioned to continue to generate strong cash flow with a proven business model, significant operational leverage and a healthy balance sheet."
Results of Operations for the three months ended 31 March 2018 and 2017
For the three months ended 31 March 2018, the company reported a net income of US$0.1 million, or basic and diluted earnings of US$0.00 per share. In the comparable quarter of 2017, the company reported a net loss ofUS11.1 million, or basic and diluted earnings of US$0.17 per share.
Net time and voyage charter revenues
Net time and voyage charter revenues for the three months ended 31 March 2018 were US$79.4 million compared with US$45.9 million recorded in the comparable quarter in 2017. According to the company, this increase in revenue was primarily attributable to the improving dry bulk market resulting in higher charter rates as well as an increase in available days due to an increase in owned fleet and chartered in vessels.
Voyage expenses for the three months ended 31 March 2018 were US$22.5 million compared to US$13.4 million in the comparable quarter in 2017. The increase was mainly attributable to an increase in the number of freight voyages in the current quarter compared to the comparable quarter in the prior year as well as increased bunker prices year over year.
Vessel expenses for the three months ended 31 March 2018 were US$21.1 million compared to US$18.0 million in the comparable quarter in 2017. The increase in vessel expenses is attributable to the increase in the owned fleet after the acquisition of 11 ultramax vessels during 2017 and first quarter of 2018 which was partially offset by vessel sales in 2017. The company sold the vessel Redwing in the first quarter of 2017, the Sparrow in the second quarter of 2017, the Woodstar in the third quarter of 2017 and the Wren in the fourth quarter of 2017. The ownership days for the three months ended 31 March 2018 and 31 March 2017 were 4312 and 3686, respectively.
Average daily vessel operating expenses for the Eagle Bulk fleet for the three months ended 31 March 2018 and 31 March 2017 were US$4888 and US$4871, respectively.
Read the article online at: https://www.drybulkmagazine.com/shipping/11052018/eagle-bulk-shipping-inc-reports-1q18-results/