Eagle Bulk Shipping Inc (NASDAQ:EGLE) has acquired a resale 2017-built SDARI-64 ‘Ultramax’ dry bulk vessel made at Chengxi Shipyard Co., Ltd. It is planned to be delivered to the firm in January 2017, and it will be labeled as the ‘M/V Singapore Eagle.’ Adding the M/V Stamford Eagle acquisition, which was reported last week, the company fleet will comprise of 42 owned vessels.
The financial performance
Speaking on 3Q2016 results, the CEO Gary Vogel said that the dry bulk segment continues to normalize following better than projected demand with rates recording a notable jump during 3Q2016 to an average BSI of just more than 7,000 for the period, a jump of 22% QoQ. The improvement in the spot segment can be attributed to numerous demand factors, the most noteworthy of stands is coal imports into China. The imports are up almost 8% year-to-date as the output within the country was curtailed following regulations implemented in the year. These regulations impacted coal prices and pushed them up more than 60% to record a three-year high.
It is remarkable to witness that coastal bulk coal freight prices in China have improved on the back of this rising 86% year-to-date. Due to the increased coal imports to China, prices in the Pacific as shown by the BSI has 2 rate recorded a considerable jump QoQ of nearly 34% to average 6,500 for mentioned period.
Nevertheless, the line of Supramax industry continue to excel Pacific boosted by pet coke out of the United States Gulf which has been recording strong exports and record volumes of grain out of the Black Sea. Talking on the supply side, the new building deliveries came at nearly 11 million deadweight tons in the third quarter or nearly 130 vessels, mainly unchanged from previous period and down nearly 17% YoY. The recently appointed CFO Frank De Costanzo was also a part of the earnings call.