Bulk Freight Carrier Reports Upturn

US – Eagle Bulk Shipping Incorporated, the largest US based shipping company of Handymax size vessels, reported last quarter figures this week showing a mixture of fortunes. Shares in the company had fallen 20% during the quarter as the Baltic Dry Index continued its slump downward but the index has bounced a little lately, recovering from a low of just 1043 on the 4th February to 1281 today, a number last seen in late January.

Higher utilisation in the quarter, which ended 31st December pushed profits higher than anticipated by most analysts and net income for the period was up 25% for the previous year’s comparable period to over $3 million with revenue up over 70% ($72.4 million against $42 million). Shares in the company rose slightly on the news, net revenues for the year overall rose 38% to $265 million.

Eagle sold their oldest and smallest ship during the year but took delivery of several newbuilds, all of which immediately entered their respective time charters. What hurt the company was the news in January that one of its main customers, Korea Line, had filed for protective receivership, full details of which are in a previous article.

Eagle report they have entered into vessel newbuilding contracts with shipyards in Japan and China. Since the inception of the program and up to 31st December 2010, the Company had taken delivery of 19 newbuild vessels, bringing the fleet total to 38, and has 8 vessels to be constructed and delivered during 2011. As of December 31, 2010, the Company has recorded advances of $191,477,225 towards the construction cost of these 8 vessels.

Full details of the quarterly and annual reports can be viewed on the Eagle website.

Photo: Eagle Bulk Carrier Merlin at sea.