Eagle Bulk CEO Gary Vogel: “As we enter 2023, we remain positive on market fundamentals.”
“Despite a weaker rate environment, our Q4 results cemented a record annual profit of roughly $250 million for 2022,” mentioned Gary Vogel, CEO of Stamford, Conn., headquartered Eagle Bulk Shipping Inc. (NYSE: EGLE) as the corporate reported its monetary outcomes for the three months and 12 months ended December 31, 2022. “These results are reflective of the many actions we have taken over the past years, including our comprehensive vessel sale and purchase strategy encompassing 55 transactions, our segment-leading focus on scrubbers, our differentiated active management approach to trading ships, and our efforts to optimize the balance sheet.”
“As we enter 2023, we remain positive on market fundamentals given a historically low orderbook with a rapidly aging fleet, as well as a number of demand catalysts including China’s reopening post COVID restrictions,” continued Vogel. “While uncertainty in the macro-economic environment has brought volatility, both rates and forward curves have moved up substantially in recent days. Further, with our modern fleet of 55, predominately scrubber-fitted vessels, and a robust balance sheet with investment capacity, the company remains uniquely positioned to deliver value to our stakeholders.”
OPERATING COSTS
You can learn Eagle Bulk’s full earning release HERE, however its notes on voyage and vessel working bills give a helpful snapshot of among the traits confronting shipowners.
For the 12 months, Eagle says that voyage bills had been $163.4 million, in comparison with $104.6 million for the 12 months ended December 31, 2021. Voyage bills elevated primarily as a result of a rise in bunker consumption expense of $43.9 million pushed by a rise in bunker gasoline costs, a rise in port bills of $11.8 million pushed by a rise in gasoline surcharges associated to tugs together with price inflation and a rise in prices for contingent liabilities of $3.4 million pushed by provisions for sure routine business claims.
Vessel working bills for the 12 months, which embrace non-recurring bills associated to vessel acquisitions and gross sales, had been $123.9 million, in comparison with $103.9 million for the 12 months ended December 31, 2021, with the rise pushed, partially, by a rise in possession days (19,261 for the 12 months ended December 31, 2022 in comparison with 18,258 for the 12 months ended December 31, 2021).
The enhance in vessel working bills was as a result of a rise in crew-related prices of $8.9 million pushed by greater crew wages, elevated crew adjustments and elevated bills associated to COVID-19 and the battle between Russia and Ukraine, a rise in restore prices of $5.6 million pushed by sure discretionary repairs and upgrades in addition to unscheduled crucial repairs and a rise in the price of lubes, shops and spares of $5.0 million pushed by elevated volumes and price inflation.
Average day by day vessel working bills excluding one-time, non-recurring bills associated to vessel acquisitions and gross sales and termination expenses referring to a change in crewing supervisor on among the firm’s vessels for the 12 months ended December 31, 2022 was $6,244, in comparison with $5,357 for the 12 months ended December 31, 2021.
There’s rather more within the full Eagle Bulk report and it is going to be attention-grabbing to see what monetary analysts make of all of it in a conference call set for 8.00 a.m, March 3.
