Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 08:00 am ET


Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Q2 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Eagle Bulk Shipping second-quarter 2020 results conference call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to turn the call over to Gary Vogel, Chief Executive Officer; and Frank De Costanzo, Chief Financial Officer of Eagle Bulk Shipping. Mr. Vogel, you may begin.

Gary Vogel

Thank you and good morning. I'd like to welcome everyone to Eagle Bulk's second quarter 2020 earnings call. To supplement our remarks today, I would encourage participants to access the slide presentation that is available on our website at eagleships.com.

Please note that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance and are inherently subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Please refer to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties that may have a direct bearing on our operating results, our performance, and our financial condition. Our discussion today also includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and TCE. Please refer to the appendix in the presentation and our earnings release filed with the Securities and Exchange Commission for more information concerning non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measures.

Before we begin with our presentation, I would like to take a moment to extend our sincere gratitude once again to our vessel crews, who've been severely affected by the logistical restrictions and disruptions caused by the outbreak of COVID-19. Although crew changes have commenced again, and we've been able to successfully repatriate about 250 of our seafarers during the past two months, a number of our colleagues at sea are still working beyond their contractual employment periods and remain away from their families during this unprecedented time. With regard to our onshore staff, I'm pleased to report that the majority of our colleagues based in Stamford, Singapore, and Copenhagen have now returned to working from the offices, albeit in modified schedules and with safety protocols. Although I was very pleased with how well we functioned as a Company on a remote basis, I believe we're much more effective when working under one roof and collaborating as a team.

Please turn to Slide 5. As we discussed on our last earnings call, our markets have been significantly impacted by the outbreak of COVID-19. And for the second quarter, the Baltic Supramax Index, or BSI, averaged just $5,484 per day, making it the second lowest period for Supramax's on record after only Q1 of '16. Rates were $6,250 at the beginning of the second quarter and have traded down to a low of $4,208 by April 23rd on the back of short-term shocks to both cargo demand and cargo supply. With the market under such distress, our results were, of course, negatively impacted.

Eagle generated a net TCE for the second quarter of $8,038 per day, down 20% quarter-on-quarter,