Eagle Bulk Shipping Inc. has announced its results for the fourth quarter and the year ended 31 December, 2016.
Q4 2016 highlights:
Net revenues, adjusted for voyage expenses and charter hire, of US$21.8 million, compared to US$15.0 million for the comparable quarter in 2015.
Net loss of US$19.5 million compared to a net loss of US$28.8 million for the same period a year ago. Net loss for both periods excludes non-cash vessel impairment charges.
During the fourth quarter, Eagle Bulk recorded a non-cash impairment charge of US$122.9 million related to the company’s fleet renewal strategy, which includes 16 vessels earmarked to be potentially sold over the next few years. Including this charge, the net reported loss for the quarter was US$142.4 million, compared to a net reported loss of US$79.7 million, which included impairment charges of US$50.9 million, for the comparable quarter in 2015.
Gary Vogel, Eagle Bulk’s CEO, commented, “The dry bulk market picked up momentum during fourth quarter, and we continue to see encouraging signs through the first quarter of 2017. Amid this promising trend, Eagle Bulk successfully raised an additional US$100 million of growth capital late in the fourth quarter through the private placement of common stock, which together with the US$88 million in aggregate gross proceeds raised in the third quarter of 2016, facilitated our acquisition of 11 modern high-quality ultramax vessels since October. 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 US$24.8 million to date.”
“We also continued to make notable progress during the fourth quarter in transforming Eagle Bulk’s commercial business model to ensure improved performance relative to the market. This includes a nearly three-fold increase of business done on voyage terms compared to the 2015 fourth quarter, which provides more effective fleet management and enhanced margins. We also continued to grow chartered-in days to more fully take advantage of market opportunities. On the technical front, we continue to deliver improved vessel operations, while our focus on processes significantly reduced operating costs during each quarter of 2016.”
“Looking ahead, we are confident that we have the team, the strategic approach and the resources that should, along with improving market conditions, – deliver improved top and bottom line performance.”