Eagle profits slide

Eagle Bulk Shipping posted a 43.9% drop in fourth-quarter profits Monday depsite a revenue surge, but it still hit analyst forecasts.

The Nasdaq-listed supramax specialist reported $9.16m, or $0.20 per share, in quarterly net income, down from the $16.3m garnered a year earlier.

Eagle's 47,200-dwt Kite (built 1997)

And the company managed to stand out from bulker owners to report recently by actually turning a profit.

"We are very pleased we maintained profitability in the fourth quarter and generated steady cash flow in challenging global markets," chief executive Sophocles Zoullas said.

Revenues grew by 68.4% to $60m, thanks to higher time-charter rates and a larger fleet. (Read the full earnings release here.)

Operating expenses leapt by 139% to $43.5m, as a result of higher vessel operating costs, as well as the impact of a larger fleet on depreciation and amortisation costs, and on general and administrative costs.

New York-based Eagle Bulk achieved a 99.5% utilisation rate.

"This performance underscores the relative stability of the supramax asset class amid unprecedented market conditions, as well as management's conservative chartering strategy," Zoullas said of the results.

Zoullas said the company took steps during the fourth quarter to cut capital expenditures and increase liquidity.

But the company's added $5.97m in one-time charges from write-offs of deferred financing and other costs after it made changes to its newbuilding program and its debt.

In December, Eagle Bulk cancelled eight newbuildings and delayed delivery of the 53,100-dwt Thrush. (Read about the deal here.)

"We believe Eagle Bulk's demonstrated ability to adapt to changing market conditions while maintaining operational excellence positions the company to generate long-term value for shareholders," Zoullas said Monday.

Eagle Bulk Shipping results

Despite the drop in quarterly profits, figures for the year revealed an 18% improvement in full-year net income, grew from $52.2m in 2007 to $61.6m in 2008.

Eagle Bulk owns 23 handymax and supramax bulkers, and it has 24 remaining newbuilding contracts.

The company finished the year with $9.21m in cash out of $1.36bn in assets. It had $790m in long-term debt.

Following the earnings report, Eagle Bulk shares had jumped by 13% to $3.56 in after-hours trading, after reaching the market close at $3.15, a 16.2% drop for the session.

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