Americas News
Eagle Bulk Shrinks Loss, Looks to "Redefine" Itself
In posting a net loss of $20.4 million and net revenues of $29.1 million for the third quarter of 2015, Marshall Islands-based Eagle Bulk Shipping Inc. (Eagle) says it is now in the early stages of a "fundamental effort to redefine the company," according to its recently appointed chief executive officer Gary Vogel.
Eagle Bulk's Q3 net loss is substantially less than the $45.9 million loss it suffered for the comparable quarter of 2014, and its Q3 revenues are slightly down from the $29.8 million it earned during the same time period last year.
Total operating expenses for the quarter ended September 30, 2015 were $46.1 million compared to $56-million in Q3 2014, due to a reduction in depreciation expense arising from lower vessel valuation.
Q3 2015 gross time and voyage charter revenues were down compared to the same time last year: $30.6 million versus $31.3 million, attributable to reduced available dry docking days of an increased number of vessels.
Vogel noted, "Eagle Bulk's third quarter financial results are reflective of the currently weak dry bulk market.
"As such, and given the muted near term outlook, we will remain focused on maintaining a healthy balance sheet in order to provide for stability in the short-term and flexibility in the future."
He added, "Notwithstanding the current freight environment, we are now well into the early stages of a fundamental effort to redefine the company."
The steps being taken include the hiring of Bo Westergaard Jensen as chief commercial officer; Per Moelris as head of technical management (who will oversee the company's owned 44-vessel fleet); and Jonathan Dowsett as senior fleet performance manager, who will oversee the creation of a new business unit, Performance Management and Optimization.
Eagle Bulk has also brought in-house the technical management of 11 vessels that were previously outsourced.
Vogel said Eagle Bulk is "Working to create a world-class commercial and technical operating platform with the objective to deliver premium value and results around our assets, [and] the new hires we announced today are central to this effort.
"More generally, we are excited by the positive changes underway, and are confident that these measures – undertaken with purpose and resolve - will help position Eagle Bulk to capitalize and grow from the opportunities ahead."
Earlier this year, Eagle Bulk had appointed board member Stanley H. Ryan as its new CEO to help "navigate ongoing challenges in the dry bulk market," before former Clipper Group CEO Vogel took on the role effective September 1.
