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 that 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 surge in revenues to higher charter rates as a result of a market recovery, with an increase in demand for dry bulk products and available days due to a rise in owned days and chartered-in days.
Eagle’s fleet earned a daily time charter equivalent 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 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.”
‘Cash generation’
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; NeoPanama Canal chock fittings, enabling vessels to carry additional cargoes through the new Panama Canal locks; as well as other retrofitted fuel-saving devices.
