Eagle Bulk Shipping has reported its fourth straight quarterly loss as excessive newbuildings overwhelmed demand.
The US-listed dry bulk operator said net revenue fell by about 3% compared to twelve months ago to $70 million.
However, the result was better than expected analysts had forecast a loss of 9 US cents per share on revenue of $66.7m.
Operating expenses for the quarter were up almost 6% to $60.8m as the size of Eagle’s fleet increased from 38 to 45 ships.
The increase was primarily due to increase in operating a larger fleet size which includes increases in vessels crew cost and vessel depreciation expense.
During the fourth quarter Eagle took delivery of the Sandpiper Bulker, the last vessel in its new building program.
“Newbuilding deliveries flooded the market in January, and while demand is steady, it is insufficient at this point to meet unfavorable supply dynamics,” said chief executive Sophocles Zoullas.
On Tuesday Standard & Poor’s said the dry bulk shipping sector faces the heaviest oversupply pressures over the next 12 to 18 months compared with the tanker and container markets.
Eagle made a full year loss of $14.8m, or 24 US cents per share, compared to a profit of $26.8m, or 43 US cents per share in 2010.
Net revenues were $313.4m, an increase of 18% compared to the $265m for the comparable year in 2010.
