GoodBulk has posted its eighth consecutive profitable quarter and has declared its fifth dividend in a row.
The John Radziwill-led company recorded net income of $2.6m for the first three months of 2019 or $0.09 per share.
The result is a decrease compared to the $9m posted during the first three months of 2018, although this figure included a $5.4m gain from the disposal of assets.
The company also declared its fifth consecutive quarterly cash dividend, which was $0.34 per share.
Fleet earnings
Revenue sharing agreements have allowed GoodBulk to insulate itself from the dramatic downturn in the capesize market seen during the past quarter.
GoodBulk said it earned an average gross TCE rate of $13,858 per day on its capesizes, much more than the Baltic Capesize Index's average of $8,740 per day for the first three months.
The majority of GoodBulk's fleet is employed with CTH revenue sharing agreements, apart from five capes and one panamax, which were fixed on period charters during the first quarter.
Ship ownership days increased to 2,430 during the first quarter, compared to 1,737 in the same period last year.
Twenty-five of GoodBulk's 27-vessel fleet are capesizes, plus one panamax and one supramax.
Year ahead
GoodBulk said fiscal stimulus in China and the run up to IMO 2020 would support dry cargo markets over the rest of this year.
The company said it expects its ownership days to increase to an estimated 9,855 for 2019, up from from 8,701 in 2018, once it completes its vessel acquisitions and disposition deals.
"China’s support to its economy through cuts in banks’ reserve requirement ratios and tax cuts are already having a supportive impact and we expect this will continue in 2019," the company said in its first-quarter report.
Fleet growth would be a fine balance with demand, the company said, but will be aided by vessels exiting the global trading fleet to undergo tank cleaning, scrubber installations and other operations in order to comply with the global sulphur cap on 1 January, 2020.
Board reshuffle
GoodBulk's first-quarter results also revealed that two of its directors have stood down, after having been on the company's board since its inception.
Richard J Bradburn and Stephen G Kasnet stood down from the board on Monday.
"The directors together have laid down solid foundations of good governance during the last eighteen months, and I am confident that these will be maintained," Bradburn commented.
Both said they would continue to be engaged with the company.
