Eagle Bulk Shipping reports 4th quarter income down, additions to fleet

Eagle Bulk Shipping reports 4th quarter income down, additions to fleet

Eagle Bulk Shipping Inc., a New York based dry bulk global marine transporter, said its fourth quarter net income fell to $4.5 million from $12.1 million from the year earlier period.

   The decrease in net income could be due to the purchases of three Supramax vessels for a total price of $138.7 million during 2006 while only selling one vessel for $12.5 million.

   Net revenues for the fourth quarter of 2006 were $28.4 million, a 16.8 percent increase from $24.3 million in the fourth quarter of 2005. The increase is primarily due to the operation of a larger fleet. Fourth quarter revenue increased 18 percent to $30.1 million from $26.2 million in the year-earlier quarter.

   'Our fourth quarter results highlight our continued strong performance at Eagle Bulk. We continue to be pleased with our fleet's performance,” said Sophocles Zoullas, chairman and chief executive officer.

   For the full year 2006, net income increased to $33.8 million from $6.7 million in 2005. Net revenues for the year improved 87 percent to $104.6 million from $56.1 million. The significant increase in net revenue was due to the larger fleet size and a shorter operating period in 2005 as vessel operations commenced in April of that year. Total revenue for 2006 increased 90 percent to $113.9 million from $60 million.

   Eagle Bulk also announced entering into contracts with IHI Marine United of Japan for the construction of two next-generation 56,000 deadweight Supramax Vessels.

   On March 1, the day after Eagle Bulk's finance report was released, the company announced the pricing of an underwritten public offering of 5.4 million common shares at $18.95 per share, or $102.3 million. The company has also granted the underwriter an option to purchase up to 810,000 of common shares at the offering price to cover overallotments.