Eagle Bulk Shipping reported a wider loss in the fourth quarter due to one-time, non-cash charges related to the company's ongoing fleet renewal strategy.
The New York-listed bulker owner says it has earmarked some 16 vessels for potential sale over the next few years as part of that strategy.
Stamford-based Eagle Bulk reported a $142.4m loss in the fourth quarter, compared to a $79.7m loss in the same quarter of last year. The latest reporting period included a $122.9m charge as the ships earmarked for potential sale get marked closer to market value.
Without the charge, Eagle would have reported a net loss of $19.5m, which was better than the $28.8m loss reported from a year earlier. The loss per share was $0.41, which was below an estimate of a $0.34 per share loss from Seaport Global Securities.
Revenue net of voyage expenses and charter hire increased 45% to $21.8m, with fleet utilisation above 98%.
Gary Vogel, Eagle Bulk's chief executive, said: "The dry bulk market picked up momentum during fourth quarter, and we continue to see encouraging signs through the first quarter of 2017."
Eagle Bulk, which raised $100m through a private placement of stock in the fourth quarter, said it plans to continue with a fleet renewal strategy after acquiring 11 ultramax vessels since October, including nine vessels from Greenship Bulk Trust.
"We expect to continue to complement this fleet growth with a renewal strategy that includes selling six of our oldest vessels for total proceeds of $24.8m to date," Vogel said.
