Eagle Bulk Shipping reports revenue of $101.4 million for Q2 2023
Eagle Bulk Shipping Inc. (“Eagle” or the “Company”), one of the world’s largest owner-operators within the midsize drybulk vessel segment, on Aug 3 reported financial results for the quarter ended June 30, 2023.
For the three months ended June 30, 2023, the Company reported net income of $18.0 million, or basic and diluted net income per share of $1.42 and $1.21, respectively. In the comparable quarter of 2022, the Company reported net income of $94.5 million, or basic and diluted net income per share of $7.27 and $5.77, respectively.
For the three months ended June 30, 2023, the Company reported adjusted net income of $16.7 million, which excludes net unrealized gains on FFAs and bunker swaps of $2.0 million and impairment of operating lease right-of-use assets of $0.7 million, or basic and diluted adjusted net income per share of $1.31 and $1.13, respectively. In the comparable quarter of 2022, the Company reported adjusted net income of $81.6 million, which excludes net unrealized gains on FFAs and bunker swaps of $12.8 million, or basic and diluted adjusted net income per share of $6.28 and $4.98, respectively.
For the six months ended June 30, 2023, the Company reported net income of $21.2 million, or basic and diluted net income per share of $1.65 and $1.48, respectively. For the six months ended June 30, 2022, the Company reported net income of $147.5 million, or basic and diluted net income per share of $11.36 and $9.01, respectively.
For the six months ended June 30, 2023, the Company reported adjusted net income of $20.2 million, which excludes net unrealized gains on FFAs and bunker swaps of $1.8 million and impairment of operating lease right-of-use assets of $0.7 million, or basic and diluted adjusted net income per share of $1.56 and $1.42, respectively. For the six months ended June 30, 2022, the Company reported adjusted net income of $146.1 million, which excludes net unrealized gains on FFAs and bunker swaps of $1.4 million, or basic and diluted adjusted net income per share of $11.26 and $8.93, respectively.
Revenues, net for the three months ended June 30, 2023 were $101.4 million compared to $198.7 million for the comparable quarter of 2022. Revenues, net decreased $97.3 million primarily due to lower rates on both time and voyage charters, driven by a decline in the drybulk market.
Revenues, net for the six months ended June 30, 2023 were $206.6 million compared to $383.1 million for the six months ended June 30, 2022. Revenues, net decreased $176.5 million primarily due to lower rates on both time and voyage charters, driven by a decline in the drybulk market.
Voyage expenses
Voyage expenses for the three months ended June 30, 2023 were $25.5 million compared to $36.3 million for the comparable quarter of 2022. Voyage expenses decreased $10.8 million primarily due to a $7.4 million reduction in bunker consumption expenses due to a decrease in bunker prices, a $2.3 million reduction in port expenses due to a decrease in voyage charters and a $1.1 million decrease in broker commissions due to lower revenues.
Voyage expenses for the six months ended June 30, 2023 were $58.9 million compared to $79.9 million for the six months ended June 30, 2022. Voyage expenses decreased $21.0 million primarily due to a $10.5 million reduction in bunker consumption expenses due to a decrease in bunker prices, a $8.3 million reduction in port expenses due to a decrease in voyage charters and a $2.2 million decrease in broker commissions due to lower revenues.
Vessel operating expenses
Vessel operating expenses for the three months ended June 30, 2023 were $31.0 million compared to $27.2 million for the comparable quarter of 2022. Vessel operating expenses increased $3.8 million due to a $3.8 million increase in costs primarily driven by certain repairs and discretionary spending on upgrades to six vessels, including newly acquired ships and a $0.9 million increase in crewing costs driven by higher compensation and increased crew changes as a result of crewing manager transitions, partially offset by a $0.5 million decrease in lube costs driven by lower purchase volume.
Vessel operating expenses for the six months ended June 30, 2023 were $62.3 million compared to $55.1 million for the six months ended June 30, 2022. Vessel operating expenses increased $7.1 million as a result of higher ownership days and due to a $4.5 million increase in costs driven by certain repairs and discretionary spending on upgrades to six vessels, including newly acquired ships and a $3.3 million increase in crewing costs driven by higher compensation and increased crew changes as a result of crewing manager transitions, partially offset by a $0.5 million decrease in lube costs driven by lower purchase volume.
Adjusted vessel operating expenses(2), which excludes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of the Company’s vessels and discretionary hull and hold upgrades for the three months ended June 30, 2023 were $28.3 million compared to $26.9 million for the comparable quarter in 2022. Adjusted vessel operating expenses increased $1.3 million primarily due to a $2.7 million increase in costs driven by certain repairs on six vessels, partially offset by a $0.7 million decrease in stores and spares due to the timing of purchases and a $0.7 million decrease in lube costs driven by lower purchase volume. Average daily adjusted vessel operating expenses(2) (“Adjusted DVOE”) for the three months ended June 30, 2023 were $5,882 compared to $5,584 for the comparable quarter in 2022.
Adjusted vessel operating expenses(2), which excludes one-time, non-recurring expenses related to vessel acquisitions, charges relating to a change in the crewing manager on some of the Company’s vessels and discretionary hull and hold upgrades for the six months ended June 30, 2023 were $59.1 million compared to $54.7 million for the six months ended June 30, 2022. Adjusted vessel operating expenses increased $4.4 million primarily due to a $3.4 million increase in costs driven by certain repairs to six vessels and a $2.6 million increase in crewing costs driven by higher compensation, partially offset by a $0.8 million decrease in lube costs driven by lower purchase volume. Adjusted DVOE for the six months ended June 30, 2023 were $6,141 compared to $5,702 for the six months ended June 30, 2022.
Charter hire expenses
Charter hire expenses for the three months ended June 30, 2023 were $11.7 million compared to $21.3 million for the comparable quarter of 2022. Charter hire expenses decreased $9.6 million primarily due to decreases in both charter hire rates and chartered-in days related to a decline in the drybulk market.
Charter hire expenses for the six months ended June 30, 2023 were $24.1 million compared to $44.0 million for the six months ended June 30, 2022. Charter hire expenses decreased $19.9 million primarily due to decreases in both charter hire rates and chartered-in days related to a decline in the drybulk market.
Chartered-in days, which is the aggregate number of days in a period during which the Company chartered-in vessels, for the three months ended June 30, 2023 and 2022 were 782 and 1,142 days, respectively. Chartered-in days for the six months ended June 30, 2023 and 2022 were 1,726 and 2,102, respectively.
Depreciation and amortization
Depreciation and amortization for the three months ended June 30, 2023 was $14.8 million compared to $15.3 million for the comparable quarter of 2022. Depreciation and amortization decreased $0.4 million primarily due to a $1.0 million decrease in depreciation due to a change in our estimated vessel scrap value from $300 per lwt to $400 per lwt, effective January 1, 2023, partially offset by a $0.4 million increase in depreciation from the net impact of vessels acquired and sold during the respective periods.
Depreciation and amortization for the six months ended June 30, 2023 was $29.6 million compared to $29.8 million for the six months ended June 30, 2022. Depreciation and amortization decreased $0.3 million primarily due to a $2.0 million decrease in depreciation due to a change in our estimated vessel scrap value from $300 per lwt to $400 per lwt, effective January 1, 2023, partially offset by a $0.7 million increase in depreciation from the net impact of vessels acquired and sold during the respective periods and a $0.7 million increase in deferred drydocking cost amortization due to higher drydocking expenditures and a $0.2 million increase in depreciation driven by an increase in installed vessel improvements.
