Eagle Bulk Shipping shares leap after 1Q report, new charter
NEW YORK—Shares of Eagle Bulk Shipping Inc. leapt more than 12 percent Wednesday, after the drybulk shipper reported soaring first-quarter earnings on higher charter rates and signed a vessel to a more lucrative contract.
The company said its first-quarter earnings jumped 69 percent as it grew its fleet size and took advantage of strong demand for drybulk vessels, which haul cargo such as iron ore, coal, grain and fertilizer.
The results narrowly missed Wall Street's expectations. Analysts forecast earnings per share of 33 cents, while Eagle reported a per-share profit of 31 cents.
Also, the company said Wednesday it signed a one-year charter for one of its vessels at a daily rate 85 percent higher than its current contract. The new charter, for a 2002-built Supramax carrier, will begin in August. Supramaxes typically weigh about 52,000 deadweight tons and are some of the largest drybulk ships on the seas.
A key shipping index also accelerated Wednesday. The Baltic Dry Index, which measures drybulk shipping rates on 40 routes across the world, surged 249 points to close at 10,104 -- marking the first time the index has breached the 10,000 mark since Oct. 10 of last year. The index, which is managed by the Baltic Exchange in London, set an all-time high of 11,039 in mid-November.
Eagle Bulk shares rose $3.77, or $12.3 percent, to $34.42, after hitting as high as $35.38 earlier in the session. The stock's all-time high is $35.54.
