Third Quarter 2013 Results Reported By Eagle Bulk Shipping Inc. (NASDAQ:EGLE)


Dallas, Texas 12/09/2013 (Financialstrend) – Recently the Eagle Bulk Shipping Inc. (NASDAQ:EGLE) announced its third quarter 2013 results. It reported a net loss of $37.6 million compared with net loss of $29.8 million for the same quarter in the year 2012. Company’s net revenues stood at $39.0 million as compared to $46.9 million for the same quarter of the 2012. The company also reported $40.7 million of Gross time charter and freight revenues as compared to $48.9 million for the same quarter of 2012.

Eagle Bulk Shipping Inc. (NASDAQ:EGLE)’s EBITDA was $ 3.0 million as compared to $12.5 million for the third quarter of 2012. The fleet utilization rate happened to be around 99.7%. The Chairman and CEO Mr. Sophocles N. Zoullas also commented that for the third quarter the bilk drug market remained in a cyclical through and it lead to the steady demand offset by excess tonnage capacity.

The road map ahead

Eagle Bulk Shipping Inc. (NASDAQ:EGLE) anticipates that with their current financial resources and the future earnings will help them to fund the operations of their fleet. They will have sufficient working capital throughout the 2013 and the general decline in the dry bulk carrier charter market has also lead to lower charter rates for the different vessels in the dry bulk market. However the company might not be in compliance with the maximum leverage ratio if the current charter hire rates do not improve significantly. Also they won’t be able to comply with the minimum interest coverage ratio covenants under the fourth Amended and Restated credit facility.

Apart from all the above mentioned factors there are some more factors that might can cause harm to them but they are evaluating asset sales, debt and equity financing alternatives and different cost cutting measures to raise more and more incremental cash.