August 7, 2007
Eagle Bulk could add more newbuilds
New York City based Eagle Bulk Shipping's $1.1 billion, 26 ship fleet expansion announced last month could get even bigger.
Today it revealed that on August 1 it had extended its relationship with the Sinopacific Shipbuilding Group, the parent of the Yangzhou Dayang Shipbuilding Co. (China),which is building the 26 ships. It has secured an agreement giving it options to build nine additional Supramax vessels to be delivered between 2010 and 2012.
The news came in conjunction with the announcement of results for the second quarter of 2007 that included a net income increase of $2.5 million, or 27%, to $11.9 million compared to $9.4 million for the second quarter of 2006.
Gross time charter revenues increased by $4.8 million, or 18%, to $31 million for the second quarter of 2007, from $26.2 million for the second quarter of 2006.
Chairman and CEO Sophocles Zoullas, said the results reflect "solid growth in revenue quarter over quarter and year over year.:
"The overall strength of the market," he noted, "is highlighted by our recent charter of the Sparrow, our third oldest and smallest ship, for two years at a rate of $34,500 per day, which represents a 40% increase over its current one-year charter rate.''
"After the quarter closed," he continued, "Eagle Bulk entered into an agreement to acquire 26 Supramax vessels, underscoring our commitment to grow the company into a world-wide leadership position in the Supramax market. With minimum contracted revenue on the Eagle Bulk fleet of approximately $1.2 billion, and up to 15 vessels to charter through 2008 to further increase contracted revenue, our shareholders will continue to participate in our growth with a target $0.50 dividend, which we will aspire to grow over time. This cash flow will also facilitate our ability to repay debt, strengthen our balance sheet, and permit us to continue to act opportunistically to extend our leadership position."