US-based operator of dry bulkers Eagle Bulk Shipping returned to profit during the quarter ended June 30, 2018, amid an improvement witnessed in the drybulk market.
The company realized a net income of USD 3.5 million, compared to a net loss of USD 5.9 million reported in the same period in 2017. Net revenues surged by 40% to USD 74.9 million from USD 53.6 million seen a year earlier.
Additionally, the company informed that its time charter equivalent (TCE) revenue for the quarter reached USD 47.6 million, jumping by 41% from USD 34.4 million year-on-year, while TCE stood at USD 11,453 for the quarter, representing an increase of 25%. The increase in revenue was primarily driven by the improving dry bulk market resulting in higher charter rates as well as an increase in available days due to a rise in owned fleet and chartered-in vessels.
Looking ahead into the third quarter of 2018, the company attained a TCE of USD 10,808 with approximately 68% of the days fixed for the period so far, Eagle Bulk informed.
“We are pleased that our active owner-operator strategy continues to drive improving results across all key performance metrics, including a USD 1,026 outperformance of the benchmark Baltic Supramax Index during the second quarter,” Gary Vogel, Eagle Bulk’s CEO, said.
Vogel explained that the results are a reflection not only of an improvement in the underlying drybulk market, “but also of the proactive measures we have taken to enhance the balance sheet and optimize the fleet make-up.”
For the six months ended June 30, 2018, the company’s net income was at USD 3.5 million, compared to a net loss of USD 17 million seen in the first half of 2017. Net time and voyage charter revenues were USD 154.3 million, rising from USD 99.5 million reported a year earlier. The change in revenue was primarily due to an increase in the owned fleet with the purchase of 11 Ultramax vessels partially offset by the sale of five vessels since second quarter of 2017, along with an increase in chartered-in vessels as well as higher charter rates due to an improving dry bulk market.