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Eagle Bulk Shipping (EGLE) – Quarterly Results In Line With Expectations

Transportation
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Monday, May 09, 2022

Eagle Bulk Shipping (EGLE)
Quarterly Results In Line With Expectations

Eagle Bulk Shipping Inc. (“Eagle”) is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Eagle Bulk Shipping reported 2022-1Q results generally in line with expectations. Revenues, net were $184.4 million versus $93.4 million for the same period last year and in line with our $182.4 million estimate. Adjusted EBITDA (excluding unrealized derivative value changes) was $85.0 million versus our $88.1 million estimate. Adjusted net income was $64.5 million ($3.97 per diluted share) versus $9.3 million ($0.80) last year and in line with our estimate of $64.3 million ($4.00). The consensus analyst estimate was $3.97.

Charter rates are high. The company achieved a TCE rate of $27,407/day in the quarter, benefitting from a sharp run up in shipping rates last fall. Eagle is well protected against any decline in rates having locked in 83% of available days fixed at an average TCE rate of $29,300. CEO Gary Vogel indicated that “the demand growth for minor bulks remains healthy and continues to outpace demand for the broader drybulk market.” Disruptions caused by the war in Ukraine have resulted in longer voyage distances and higher rates….

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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