New York-listed Eagle Bulk Shipping is kicking off its new dividend policy with a fat $2 per share payout on the strength of the most profitable quarter in the company’s 16-year history. Gary Vogel-led Eagle is paying a little more than the promised 30% minimum of net income after recording a profit of $78.3m, or $6.12 per share, for the third quarter. This reversed a net loss of $11.2m, or $1.09 per share, in the third quarter of 2020. It is Eagle’s first dividend payment since 2008.

Eagle easily bested the consensus expectations of Wall Street analysts of $5.25 per share. Revenues for the quarter were $183.4m, nearly trebling the $68.2m seen in the corresponding period of 2020. “Drybulk freight rates continued to strengthen in the third quarter, and Eagle’s strong leverage to the market produced $78m of net income for the quarter,” Vogel said in an earnings statement filed after the close of trading in New York. “Not only does this represent the highest quarterly net income Eagle has achieved, but it also eclipses the Company’s best ever annual result.”

As with neighboring Genco Shipping & Trading, Eagle is following up an historic quarter with even higher time charter equivalent (TCE) rates booked thus far in the fourth quarter. The owner of 53 supramax and ultamax bulkers has booked 75% of operating days at $32,400 per day. This is up on the $29,088 figure seen in the past quarter, which was the strongest since 2008. All eyes will now turn to how the owner is able to finish off the quarter as rates have come crashing down in recent weeks, first with capesize tonnage and then with the smaller vessel classes in which Eagle is a major operator.

Eagle Bulk in October revealed a $400m debt refinancing that cleared any remaining hurdles to its dividend plans. It followed days later with the new policy, which is aimed at returning at least 30% of net income each quarter. The payment announced Thursday works out to an annualized yield of some 20% based on Eagle’s closing share price of just under $40. Vogel has presided over a revamp of the company’s balance sheet and fleet profile since taking the Eagle helm in 2016, needing to overcome a sharp downturn in the dry market during his first months on the job. Eagle adjusted net income for the past quarter was $72.1m, which excludes the unrealized gain on derivative instruments and loss on debt extinguishment of $6.3m and $100,000, respectively. The equated to adjusted basic earnings per share of $5.63.