Eagle Bulk Opts to Sell Another Bulker, Stays in Red

Time: 2016-08-10 13:39
After it earlier reached deals to sell three of its bulkers, the owner and operator of Supramax dry bulk vessels Eagle Bulk Shipping has decided to dispose of another ship for net proceeds of USD 4.2 million.The vessel in question is the 2002-built MV Kittiwake, which features 53,146 dwt.

During the second quarter of the year, the company concluded the earlier announced salesof MV Peregrine and MV Falcon, raising a total of USD 5.8 million, and subsequently finalized the sale of MV Harrier for net proceeds of USD 3.2 million.

The company opted for the additional sale as it reported a net loss of USD 22.5 million for the second quarter of 2016, compared to a net loss of USD 27.5 million seen in the same quarter a year earlier.

Net revenues for the quarter increased to USD 25.6 million from USD 22.6 million recorded in the second quarter of 2015, mainly due to an increased number of freight voyages as well as increased available days due to chartered in vessels.

In July, the company entered into an agreement to raise USD 88 million in gross proceeds through a sale of its common stock, which is scheduled to close on August 10, 2016, with proceeds targeted for the acquisition of dry bulk vessels and general corporate purposes.

“In the midst of a historically weak drybulk market, Eagle Bulk’s second quarter was bookended by two milestone achievements as we seek to re-position the company for future success. First, we entered the quarter having completed a comprehensive balance sheet recapitalization that significantly improved our long-term financial flexibility. Then, subsequent to the quarter’s close, we raised nearly USD 90 million in growth capital through a common stock private placement,” Gary Vogel, Eagle Bulk’s CEO, said.

He added that these moves are expected to enable the company to commence a fleet growth and renewal program while developing its commercial operating platform.
Contact:  Aster Chen
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