Eagle Bulk Shipping reports Q4 adjusted EPS $1.13, consensus 71c

Reports Q4 revenue $104.6M, consensus $92.51M. Eagle’s CEO Gary Vogel commented, “We saw a meaningful improvement to our bottom line in Q4, reflecting both a strong recovery in freight rates and an increase in our relative performance against the market. We outperformed the benchmark BSI by 20% during the period, achieving a net TCE of $16,169. Following two extraordinary years for the drybulk market during which Eagle generated record profits, freight rates came off significantly in 2023 against a backdrop of unwinding congestion. Notwithstanding the weaker landscape, we generated a net TCE of $13,738 for 2023, representing an outperformance of 28% against the BSI. The strength of our commercial platform coupled with our well-timed vessel sale and purchase activities, helped us secure Eagle’s third straight year of positive earnings with total net income exceeding $450 million for the 2021-2023 period. On the strategic front, 2023 turned out to be a pivotal year for our company. In May, we increased our financial flexibility by executing a $175 million upsize and extension to our credit facility. In June, we opportunistically repurchased $220 million worth of our common stock, or 3.8 million shares, at a meaningful discount to our Net Asset Value. And, in December, we entered into a definitive agreement to merge with Star Bulk. This transformative transaction, which awaits shareholder approval, has been well received by the market, unlocking immediate value for our investors. We see further benefits to the equity resulting from the proforma company’s scale and the expectation that it will achieve meaningful revenue and cost synergies of more than $50 million per annum. This merger will create a global leader in drybulk shipping, boasting a fleet of nearly 170 vessels and a pro-forma market cap of over $2.7 billion. Looking ahead, although Q1 is historically the weakest period, the 2024 market is off to a strong start on the back of supply side disruptions. As of today, we have fixed approximately 90% of our owned available days, at a net TCE of $15,000.”