Eagle Bulk Shipping Q4 Financial Results – Revenues of $104.6M in Q4

Eagle Bulk Shipping Inc. has reported its financial results for the fourth quarter of 2023, showcasing both quarterly and annual highlights. In the fourth quarter, the company generated revenues, net of $104.6 million and achieved TCE (Time Charter Equivalent) of $16,169 per day based on TCE revenues of $74.8 million. The company realized a net income of $6.7 million, or $0.71 per basic share and declared a quarterly dividend of $0.60 per share for the fourth quarter of 2023.

For the full year of 2023, Eagle Bulk Shipping Inc. generated revenues, net of $393.8 million and achieved TCE of $13,738 per day based on TCE revenues of $253.0 million. Notably, the company reported net income of $22.7 million for the year, significantly down from the $248.0 million reported in the previous year.

The company also provided updates on its merger with Star Bulk, stating that a special meeting of Eagle shareholders will be held on April 5, 2024, to vote on the proposals necessary to complete the merger. Following the close of the transaction, Star Bulk and Eagle shareholders will own approximately 71% and 29% of the combined company on a fully diluted basis, respectively.

Eagle’s CEO, Gary Vogel, highlighted the company's performance, stating that they saw a meaningful improvement to their bottom line in Q4, reflecting both a strong recovery in freight rates and an increase in their relative performance against the market. Vogel added that despite the weaker landscape, they generated a net TCE of $13,738 for 2023, representing an outperformance of 28% against the BSI (Baltic Supramax Index).

Looking ahead, the company stated that although Q1 is historically the weakest period, the 2024 market is off to a strong start on the back of supply side disruptions. As of the reporting date, Eagle had fixed approximately 90% of its owned available days at a net TCE of $15,000.

The financial report also detailed various operating expenses, including voyage expenses, vessel operating expenses, charter hire expenses, depreciation and amortization, general and administrative expenses, and other operating expenses, comparing these figures to the previous year's performance. Notably, the company reported decreases in voyage expenses, vessel operating expenses, and charter hire expenses for both the three months ended December 31, 2023, and the full year of 2023, compared to the same periods in 2022. Additionally, the company reported changes in net income, adjusted net income, and adjusted EBITDA, showcasing the evolving financial performance over the two periods.

As a result of these announcements, the company's shares have moved 3.0% on the market, and are now trading at a price of $63.11. Check out the company's full 8-K submission here.

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