05-08-2022 Eagle Bulk books tenfold increase in second-quarter net profit, By Dale Wainwright, TradeWinds
Eagle Bulk has reported a tenfold increase in net profit compared to a year ago as the US-listed bulker operator posted its “best ever” results. Net income for the three months ended 30 June 2022 was $94.5m against the $9.2m seen 12 months earlier. Revenues for the second quarter came in at $198.7m compared to the $129.9m achieved in the comparable quarter in 2021.
Eagle attributed the increase in revenues to higher charter rates because of a market recovery with an increase in demand for dry bulk products and an increase in available days due to an increase in owned days and chartered-in days. Eagle’s fleet earned a daily time charter equivalent (TCE) rate of $30,207 per ship, up 39% on the TCE rate of $21,580 seen in the second quarter of 2021.
“I am really proud of our team’s collective efforts this quarter which enabled us to achieve our best-ever results,” said Eagle Bulk chief executive Gary Vogel. “Focused execution, including our ability to successfully trade our ships in a volatile commercial environment, contributed to this outperformance. We believe our differentiated business model, combined with our exclusive focus on the midsize dry bulk vessel segment and … fleet scrubber position, has enabled us to generate outsized returns, as compared to the broader dry bulk market.”
Vogel said the company had declared a dividend of $2.20, equal to 30% of net income, given the company’s “strong cash generation, solid balance sheet, and constructive outlook on the market”. Eagle said it spent some $400,000 during the quarter on vessel upgrades which it said are discretionary in nature and evaluated on a business case-by-case basis. The upgrades represent items such as high-spec low friction hull paint which improves fuel efficiency and reduces fuel costs, Neo Panama Canal chock fittings enabling vessels to carry additional cargo through the new Panama Canal locks, as well as other retrofitted fuel-saving devices.