Higher Bunker Costs Lift Eagle Bulk's Q2 Voyage Expenses by 78%

Eagle Bulk notes higher voyage expense in Q2 amid higher bunker prices. Image Credit: Eagle Bulk

Eagle Bulk Shipping Inc. (Eagle Bulk) [NASDAQ:EGLE], in its report of financial results for the 2017 Q2 period, said the company's voyage expenses grew to $13.4 million during 2017 Q2 - a 78.6 percent increase when compared to $7.5 million during the same quarter of 2016, which Eagle Bulk explains is largely attributable to higher bunker prices.

"The increase was mainly attributable to an increase in the number of freight voyages in the current quarter compared to the comparable quarter in the prior year as well as increased bunker prices year over year," explained Eagle Bulk.

Overall, the company sustained a net loss of $5.9 million during the quarter, compared to a net loss of $22.5 million during the same period of 2016.

Meanwhile, net revenue during the period totalled $53.6 million, a 109 percent year on year increase.

"During the second quarter, we delivered results that affirm the inherent potential of our active management model, as well as tangible progress towards Eagle Bulk's larger goal of becoming the premier owner-operator of Supramax/Ultramax vessels," said Gary Vogel, Eagle Bulk's CEO.

"This progress is reflected in quarterly performance well in excess of the Baltic Supramax Index and in our continued fleet growth and optimization.  Importantly, these positive developments are occurring against the backdrop of continued improvement in the dry bulk market itself with respect to both trade demand and vessel supply fundamentals."

As Ship & Bunker has reported, Eagle Bulk's financial report for 2016 Q4 told a similar story, attributing an increase in the company's voyage expenses during the period to a rise in bunker prices.