Eagle Bulk into the red
(Posted on 31/07/19)
Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the Supramax / Ultramax segment, has reported financial results for the three and six months ended June 30, 2019.
Gary Vogel, Eagle Bulk's CEO, commented, "Our results for the second quarter are reflective of the challenging freight environment in the first half of the year. Despite the headwinds, we continued to deliver strong TCE outperformance (relative to the adjusted benchmark Baltic Supramax Index) of nearly $2,000 in the second quarter, marking our tenth consecutive quarter of outperformance.
"Our recently announced bond issuance and pending acquisition of six modern Ultramax vessels, four of which will be delivered to us with scrubbers, is an important step for Eagle, as we continue to renew and grow our fleet with larger, more efficient vessels. Coupled with our existing scrubber initiative, we believe these acquisitions increase our leverage to the opportunities IMO 2020 will present."
Highlights for the Quarter:
Generated net revenues of $69.4 million, representing a decrease of $5.5 million or 7% compared to the same period in 2018.
- TCE Revenue (1) for the quarter equated to $38.9 million, a decrease of 18% year-on-year.
- Achieved a TCE (2) of $9,731 for the quarter, a decrease of 15% year-on-year.
Realized a net loss of $6.0 million or $0.08 per basic and diluted share, compared to a net income of $3.5 million or $0.05 per basic and diluted share in the second quarter 2018.
Adjusted EBITDA(3) of $10.4 million, representing a decrease of $10.8 million or 51% compared to the same period in 2018.
Looking ahead into the third quarter of 2019, the Company has attained a TCE of $10,285 with approximately 57% of the available days fixed for the period thus far.
Subsequent Events
Issued 5-year Senior Unsecured Convertible Bonds totaling $114.1 million in gross proceeds, including the greenshoe of $14.1 million
- Coupon of 5% and conversion premium of +25% to July 24th 2019 closing price or $5.61 per share
Entered into two agreements to acquire a total of six high-specification SDARI-64 Ultramax vessels (the "Acquisition Vessels") for an aggregate purchase price of approximately $122.0 million, subject to final documentation and customary closing conditions
- Average age of approximately 3.3 years
- Four vessels are fitted with Exhaust Gas Cleaning Systems ("scrubbers")
Reached an agreement to sell the Kestrel, a 15-year old Supramax, ahead of her statutory drydock for a gross price of $7.3 million
Latest News
InterManager urges Seafarer participation in Enclosed-Space Safety Survey
(Posted on 27/10/25)Following the International Maritime Organisation’s (IMO’s) newly tightened rules on enclosed... Read more
DNV: Nuclear propulsion is viable solution for maritime decarbonisation
(Posted on 27/10/25)According to a new paper by DNV, shifting environmental requirements are reigniting interest in nuclear... Read more
MoU on cooperation Between Zhejiang Seaport and Columbia
(Posted on 24/10/25)Zhejiang Seaport Group and Columbia Group Limited have signed a Strategic Cooperation Memorandum of... Read more
INTERCARGO statement on Extraordinary Meeting of MEPC
(Posted on 20/10/25)The International Association of Dry Cargo Shipowners (INTERCARGO) has released a statement on the Extraordinary... Read more
Investigation into impact of technology on seafarers
(Posted on 20/10/25)The future of shipping is already here. From autonomous systems to artificial intelligence, maritime... Read more
ESL Shipping’s science-based net-zero targets validated by SBTi
(Posted on 17/10/25)The Science Based Targets initiative (SBTi) has approved ESL Shipping’s near and long-term... Read more
Call for Wind to belong in IMO Net-Zero Framework
(Posted on 14/10/25)BAR Technologies has joined calls for the International Maritime Organization (IMO) to formally recognise... Read more
AXSMarine celebrates 25 Years of innovation and leadership
(Posted on 14/10/25)AXSMarine, a pioneer in maritime technology, celebrates its 25th anniversary this year, marking a quarter... Read more
Passport application breakthrough for Ukrainian seafarers overseas
(Posted on 08/10/25)In what’s been described as a major breakthrough for the careers of Ukrainian seafarers, a remote... Read more
Algoma celebrates 100th vessel milestone
(Posted on 07/10/25)Algoma Central Corporation has taken delivery of the Algoma Legacy, the first of three new methanol-... Read more
