Eagle Bulk Transport Inc., one of many world’s largest owner-operators throughout the midsize drybulk vessel phase, reported monetary outcomes for the quarter ended March 31, 2022.
Quarter highlights:
Generated Revenues, internet of $184.4 million
Achieved TCE(1) of $27,407/day foundation TCE Income(1) of $121.6 million
Realized internet revenue of $53.1 million, or $4.09 per fundamental share
Adjusted internet revenue(1) of $64.5 million, or $4.97 per adjusted fundamental share(1)
Generated EBITDA(1) of $72.1 million
Adjusted EBITDA(1) of $85.0 million
Declared a quarterly dividend of $2.00 per share for the primary quarter of 2022. Payable on Might 25, 2022 to shareholders of document on the shut of enterprise on Might 16, 2022
Current Developments:
Wanting forward, as of Might 3, 2022, our protection place is as follows:
Q2 2022 – 83% of accessible days fastened at a median TCE of $29,300
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Eagle’s CEO Gary Vogel commented, “Over the previous few months, the tragic scenario in Ukraine has had a direct influence on our business and our Firm, with cargo buying and selling patterns being disrupted and altered. Moreover, a big variety of our seafarer colleagues are from Ukraine, and they’re all affected by what is going on to their nation and their family members. The protection and well-being of our crew is of paramount significance, and we’re centered on supporting them throughout this tough time by offering help with short-term housing, transportation, and serving to with different wants.
However a unstable charge surroundings, Eagle posted robust ends in the primary quarter, in what is usually the weakest interval of the yr. We achieved a TCE of $27,407 per day, producing an adjusted internet revenue of $65 million for the quarter. Based mostly on this end result and our expectations for continued robust efficiency, Eagle’s Board declared a primary quarter dividend of $2.00 per share, bringing whole distributions to over $6 per share since we initiated our dividend program simply seven months in the past.
Demand development for minor bulks stays wholesome and continues to outpace demand for the broader drybulk market, leading to Supramax/Ultramax vessels outperforming the bigger dry bulk segments. Voyage distances have additionally elevated, pushed primarily by dislocations attributable to the battle in Ukraine, which has in flip helped to strengthen spot charges. On the again of this and our energetic administration method to buying and selling, Eagle has to date procured roughly 83% of its accessible days for the second quarter at a internet TCE of $29,300 per day.”
Outcomes of Operations for the three months ended March 31, 2022 and 2021
For the three months ended March 31, 2022, the Firm reported internet revenue of $53.1 million, or fundamental and diluted revenue of $4.09 per share and $3.27 per share, respectively. Within the comparable quarter of 2021, the Firm reported internet revenue of $9.8 million, or fundamental and diluted revenue of $0.84 per share.
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For the three months ended March 31, 2022, the Firm reported an adjusted internet revenue of $64.5 million, which excludes unrealized losses on spinoff devices of $11.4 million, or fundamental and diluted adjusted internet revenue of $4.97 per share and $3.97 per share, respectively. Within the comparable quarter of 2021, the Firm reported adjusted internet revenue of $9.3 million, which excludes unrealized positive factors on spinoff devices of $0.5 million, or fundamental and diluted adjusted internet revenue of $0.80 per share.
Revenues, internet
Revenues, internet for the three months ended March 31, 2022 had been $184.4 million in comparison with $96.6 million within the comparable quarter in 2021. The rise in revenues was primarily attributable to increased constitution charges on account of the market restoration with enhance in demand for drybulk merchandise.
Voyage bills
Voyage bills for the three months ended March 31, 2022 had been $43.6 million in comparison with $26.6 million within the comparable quarter in 2021. The rise in voyage bills was primarily because of a rise in bunker consumption expense as bunker gas costs elevated within the first quarter, in addition to a rise in voyage constitution enterprise and a rise in dealer fee expense on account of the rise in revenues.
Vessel working bills
Vessel working bills for the three months ended March 31, 2022 had been $27.9 million in comparison with $21.5 million within the comparable quarter in 2021. The rise in vessel working bills was primarily attributable to increased owned days and a rise in vessel upgrades on account of a rise in repairs and upgrades carried out whereas vessels had been in drydock. The Firm continues to incur increased prices associated to the supply of shops and spares, in addition to crew adjustments on account of the continued COVID-19 pandemic. The possession days for the three months ended March 31, 2022 and 2021 had been 4,770 and 4,199, respectively.
Common each day vessel working bills excluding one-time, non-recurring bills associated to vessel acquisitions for the three months ended March 31, 2022 had been $5,821 as in comparison with $4,894 for the three months ended March 31, 2021.
Constitution rent bills
Constitution rent bills for the three months ended March 31, 2022 had been $22.7 million in comparison with $8.5 million within the comparable quarter in 2021. The rise in constitution rent bills was principally because of a rise in chartered-in days and a rise in constitution rent charges because of enchancment within the constitution rent market. The entire chartered-in days for the three months ended March 31, 2022 had been 960 in comparison with 658 for the comparable quarter within the prior yr. The Firm presently charters in 4 Ultramax vessels on a long-term foundation as of the charter-in graduation date with choices to increase the constitution interval.
Depreciation and amortization
Depreciation and amortization expense for the three months ended March 31, 2022 and 2021 was $14.6 million and $12.5 million, respectively. Whole depreciation and amortization expense for the three months ended March 31, 2022 consists of $11.7 million of vessel and different fastened asset depreciation and $2.9 million referring to the amortization of deferred drydocking prices. Comparable quantities for the three months ended March 31, 2021 had been $10.5 million of vessel and different fastened asset depreciation and $2.0 million of amortization of deferred drydocking prices. The rise in depreciation expense is as a result of acquisition of 9 Ultramax vessels in 2021, offset by the sale of 1 vessel within the third quarter of 2021. The rise in amortization of deferred drydock prices is said to finishing eleven drydocks because the first quarter of 2021.
Common and administrative bills
Common and administrative bills for the three months ended March 31, 2022 and 2021 had been $10.1 million and $7.7 million, respectively. Common and administrative bills embody stock-based compensation of $1.5 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively. The rise on the whole and administrative bills was primarily attributable to a rise in authorized and consulting bills, compensation and advantages, and stock-based compensation expense.
Different working expense
Different working expense for the three months ended March 31, 2022 and 2021 was $0.1 million and $1.0 million, respectively. In March 2021, the U.S. authorities started investigating an allegation that one in every of our vessels might have improperly disposed of ballast water that entered the engine room bilges throughout a restore. The Firm posted a surety bond as safety for any fines, penalties or related prices that could be issued. Different working expense consists of bills referring to the incident, which embody authorized charges, surety bond bills, vessel off-hire, crew adjustments and journey prices.
Curiosity expense
Curiosity expense for the three months ended March 31, 2022 and 2021 was $4.4 million and $8.3 million, respectively. The lower in curiosity expense is primarily because of a lower in excellent debt and decrease rates of interest as a result of refinancing of the Firm’s debt within the fourth quarter of 2021.
Realized and unrealized loss on spinoff devices, internet
Realized and unrealized loss on spinoff devices, internet for the three months ended March 31, 2022 and 2021 was $7.9 million and $0.7 million, respectively. The rise in realized and unrealized losses is primarily associated to losses incurred on our freight ahead agreements on account of the rise in constitution rent charges. The non-cash unrealized losses on ahead freight agreements (“FFA”) for the remaining 9 months of 2022 amounted to $14.3 million based mostly on 2,520 days hedged at a weighted common FFA contract worth of $20,942 per day.
As of March 31, 2022, our money and money equivalents together with restricted money was $83.7 million in comparison with $86.2 million as of December 31, 2021.
As of March 31, 2022, the Firm’s excellent debt of $389.2 million which excludes debt low cost and debt issuance prices consisted of $275.1 million underneath the International Ultraco Debt Facility and $114.1 million underneath the Convertible Bond Debt.
As well as, as of March 31, 2022, we had $100.0 million in an undrawn revolver facility accessible underneath the International Ultraco Debt Facility.
We repeatedly consider potential transactions that we consider will probably be accretive to earnings, improve shareholder worth or are in one of the best pursuits of the Firm, together with with out limitation, enterprise mixtures, the acquisition of vessels or associated companies, compensation or refinancing of current debt, the issuance of recent securities, share repurchases or different transactions.
Capital Expenditures and Drydocking
Our capital expenditures relate to the acquisition of vessels and capital enhancements to our vessels, that are anticipated to boost the income incomes capabilities and security of the vessels.
Along with acquisitions that we might undertake in future durations, the Firm’s different main capital expenditures embody funding the Firm’s program of frequently scheduled drydocking essential to adjust to worldwide transport requirements and environmental legal guidelines and laws. Though the Firm has some flexibility concerning the timing of its drydocking, the prices are comparatively predictable. Administration anticipates that vessels are to be drydocked each two and a half years for vessels older than 15 years and 5 years for vessels youthful than 15 years. Funding of those necessities is anticipated to be met with money from operations. We anticipate that this strategy of recertification would require us to reposition these vessels from a discharge port to shipyard services, which can scale back our accessible days and working days throughout that interval.
Drydocking prices incurred are deferred and amortized to expense on a straight-line foundation over the interval via the date of the following scheduled drydocking for these vessels. Within the three months ended March 31, 2022, 4 of our vessels accomplished drydock and one vessel was in drydock as of March 31, 2022, and we incurred drydocking expenditures of $10.8 million. Within the three months ended March 31, 2021, 4 of our vessels accomplished drydock and we incurred drydocking expenditures of $4.8 million.
Supply: Eagle Bulk Transport
