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 its 16-year history.
The New York-listed shipowner 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, a year earlier.
It is Eagle's first dividend payment since 2008.
The company 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 in the corresponding period last year.
"Dry bulk 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," chief executive Gary Vogel said in an earnings statement filed after the close of trading in New York on Thursday.
"Not only does this represent the highest quarterly net income Eagle has achieved, it also eclipses the company's best ever annual result."
As with neighbouring Genco Shipping & Trading, Eagle is following up an historic quarter with even higher time charter equivalent rates booked thus far in the fourth quarter.
The owner of 53 supramax and ultramax bulkers has booked 75% of operating days at $32,400 per day. This is up on the $29,088 figure in the third 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.
In October, Eagle Bulk 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 on Thursday works out to an annualised yield of some 20% based on Eagle's closing share price of nearly $40.
Vogel has presided over a revamp of the balance sheet and fleet profile since taking the helm in 2015, needing to overcome a sharp downturn in the dry market during his first months in the job.
Adjusted net income for the third quarter was $72.1m, which excludes the unrealised gain on derivative instruments and loss on debt extinguishment of $6.3m and $100,000, respectively. That equated to adjusted basic earnings per share of $5.63.
