This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Eagle Bulk Shipping's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Please note on slide three the agenda for today’s call will be as follows: I will review our second quarter 2012 results and highlights. We’ll then proceed with an update of our commercial operations and finally present our current views on the market. Our CFO Adir will then give an overview of our financials before we open the call to questions.

Please turn to slide five for a review of our financial results and highlights. The dry bulk market remained in a depressed state during the second quarter with peak order book deliveries continuing unabated; weaker than expected demand in the period added further to the existing negative sentiment, as did the recently enacted export ban on minerals from Indonesia.

Newbuilding deliveries during the second quarter totaled a record 32 million deadweight tons or almost 390 vessels. This represents an increase of approximately 7% over the first quarter and almost 34% year-over-year.

On the demand side, lower global appetite for steel and in turn iron ore put a damper on the major bulks and overall short-term trade outlook. In May, Indonesia imposed a ban on mineral exports which effectively halted nickel ore and bauxite cargos.

Turning to Eagle Bulk, the company reported a net loss of $23.1 million or $1.46 per share for the second quarter of 2012. Earnings for the period were primarily impacted by the depressed spot market. Net revenue for the quarter was $48.5 million and EBITDA for the quarter amounted to $10 million and fleet utilization remained at an impressive level of close to 99.5%. Overall, the second quarter of 2012 remained extremely challenging for the dry bulk market as peak supply growth continued to heavily outweigh demand.

Finally, as we previously announced on June 20th, we reached a comprehensive agreement with our lenders which effectively amended the terms of our debt and has provided us with a greatly improved ability to navigate through the trough of the shipping cycle without compromising our ability to benefit when the market does emerge from the cyclical downturn.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs