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UPDATE 2-New ships flooded market in January: Eagle Bulk
March 14, 2012 / 10:08 PM / 6 years ago

UPDATE 2-New ships flooded market in January: Eagle Bulk

* Q4 net loss $0.03/shr vs est loss $0.09/shr

* Q4 net rev down 3 pct at $70 mln

* Says demand insufficient to meet ship oversupply

March 14 (Reuters) - Drybulk ship owner Eagle Bulk Shipping said new vessels flooded the market in January, but steadily growing demand is still insufficient to offset an oversupply.

Most shipping companies have been posting losses over the last one year, as vessels that were ordered in the pre-recession years of 2007 and 2008 are being delivered now, creating a glut and leading to depressed rates.

“Newbuilding deliveries flooded the market in January, and while demand is steady, it is insufficient at this point to meet unfavorable supply dynamics,” Chief Executive Sophocles Zoullas, said in a statement.

Over the next 12 to 18 months, the dry bulk shipping sector faces the heaviest oversupply pressures compared with the oil tanker and container markets, Standard & Poor’s said on Tuesday.

Eagle Bulk on Wednesday posted its fourth straight quarterly loss.

For the fourth quarter, the company posted a net loss of $1.7 million, or a loss of 3 cents per share, compared with a net income of $3.03 million, or 5 cents per share, a year ago.

Net revenue fell about 3 percent to $70 million.

Analysts polled by Thomson Reuters I/B/E/S had expected a loss of 9 cents per share, on revenue of $66.73 million.

The New York-based company’s shares, which have lost more than half of their value in the last year, closed at $1.80 on Wednesday on the Nasdaq.

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