Earnings call transcript Q2 2023

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Operator

Good day, and welcome to Eagle Bulk’s Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there’ll be a question-and-answer session. Instructions will be given at that time.

As a reminder, this call is being recorded.

to call like Vogel, to now CEO. would turn over the Gary I

may You begin.

Gary Vogel

good would subject include call. morning. everyone and uncertainties. presentation encourage Eagleships.com. you, future Thank I statements These the are access Bulk’s guarantees remarks I slide quarter participants our to to of website is available like second XXXX that of statements. supplement earnings on To that today, would Eagle welcome at our and our forward-looking part and to are inherently performance note Please discussion risk today will to not

have undue You discussion direct should detailed Exchange operating our not statements. on performance, bearing place Securities for filings Commission reliance of our the refer our on with and a the financial our Please condition. may results, to risks more forward-looking and and a these that uncertainties

non-GAAP and includes non-GAAP EBITDA. and including today Exchange presentation the financial to certain turn most TCE discussion more a to refer comparable Please with filed measures Commission X. EBITDA, the Please financial to Our income, financial for GAAP adjusted reconciliation concerning adjusted Securities information the revenues, our measures. release measures, Slide and earnings in net appendix and also TCE, the

management of $X.XX Eagle's net equal this basic. backdrop declared or share, Russia-Ukraine offset a operations. able arising such income. board strategy, limited per of which with of on and undertaking geopolitical complete one challenges we result, cash the Based to share makeup, averages, This our directors pleased ships, in allocation successfully crew dividend our and I'm opportunities, and with of we a start relative we'll Today, $X.XX to capital to quarter we concluded a more support consistent crew on as were from of XX XX% to million a modest our War. nationality per that of stated resulting efforts which operations. of Against report was discussion with recovery improved the sourcing a first balanced rates ongoing income in significant generated $XX the events transfer to net to impact of

front, purchase and XXXX-built on On took the quarter. scrubber-fitted closed delivery two during Ultramaxes the vessel S&P of the we

the Supramaxes the of delivered closed new two owners. sale to and mid-age non-scrubber-fitted on our also We

to we Supramax. on delivered Additionally, and subsequent closed non-scrubber-fitted sale a and end, quarter the mid-age third

As reported generated of sale vessels roughly these XX a over past previously, purchase the the and subsequent levered IRR three XX% months. of

S&P totals As of scrubber-fitted. of which today, no ships, fleet XX pending activity, we XX% our have are and

upsize extension facility Lastly, from this more a an and Costa executed credit as to previously the our will balance provide later disclosed. sheet we perspective, on in call. detail

Slide turn to X. Please

For of or QX, XX% representing a the $X,XXX benchmark an of day. achieved $XX,XXX, TCE BSI per net roughly per versus ship outperformance we

primarily increased market which attributed China into continued vessel freight of quarter it out congestion, lackluster supply the falling BSI trading growth demand during in easing the weakness saw rates a during quarter, declined second roughly XX,XXX, the beginning end the in was $X,XXX April around to at of June. by has The we the to can and market. Although the effectively significantly be of

remain quarter, we to weak, spot third the X,XXX. BSI rates As around hovering the look presently with

XX% QX TCE today, at a for own $XX,XXX. of days of our fixed of we As available approximately net

Oaktree’s I a strategic announced in Costa, the turning position. and represented whereby XX% which million we Before briefly June, moment to take X.X mention transaction call shareholding repurchased the want to shares, a we

we the transaction medium-term NAV, a fundamentals, constructive conclude Given we believe view of based will to were and shareholders. able be highly on for deal this to our accretive at our the discount

quarter will financials. call our to second over like discuss who With would now that, the I to Costa? turn Costa,

Costa Tsoutsoplides

on X,XXX to guidance. Please turn to translates in a total XX% days $XX,XXX $XX.X previous the available on improved revenues the Thank quarter owned million. to based for This our Slide you, Gary. line TCE TCE period, X. with of

outlook. earlier, mentioned against in to X% demonstrate and BSI the commercial quarter-on-quarter benchmark It's number or crew transition, the by per outperformance startup $XX the continues on significant strength vessels, with improved to operating some million X,XXX to index, previously represents TCE that for OpEx the improvement platform. period, non-recurring total line our achieved day, As roughly Vessel of important items note impacted a costs expenses including our related of upgrades vessels. to our discretionary and the was management on acquired and costs a mentioned recently

Excluding X,XXX previous guidance. adjusted these day, our in with OpEx equated to items, non-recurring line per which is

with the quarter $XXX,XXX charter-in adjustment in General primarily was our a weaker million, related costs We $XXX,XXX incurred expenses and coming at environment. which on $X.X ships. $XX.X assets, G&A to of right-of-use charge million. driven non-cash total administrative This to cash the freight increased by flat one in mark-to-market

Eagle QX, Montauk of the on on a During we gain closed Newport sales and these sales of the Eagle, million. total $XX.X realizing

realize we to expected gain sale sold Sankaty $X.X delivered end, in quarter the Eagle, to subsequent of earlier, and indicated a QX. million on As and

income unrealized and P&L net be underlying EBITDA Adjusted were was which to and the count. $XX.X June This $X QX perspective. interest line in Net $X.X derivatives prior from inclusive attributed asset, for came quarter non-cash and convertible deemed that for interest unrealized Adjusted net to our share share bond diluted The is guidance. note to or million of FFA P&L million. with income, per financing million. at income, share the and Please basic, our the shares interest security derivatives, fees, deferred adjustment XX. the amounted the cash the for and EPS per cash came such, included on outstanding of was $X.XX position mark-to-market expense, this in diluted at adjusted primarily And in the diluted. was positive expense, as $X.XX the quarter, million non-cash right-of-use in $XX.X the net as

as is operations, $XX.X $XX.X to in XX. Slide primarily quarter comprised investing $XX.X from on was down a to of $XX.X vessel with which used million proceeds in two We turn ended $XXX March the $XXX in on activities, million spent two million Please $XXX $XX.X financing, purchases, paid. repurchase, compared net We of and million million position million the received, million spent debt sales. used generated cash in by vessel million, inclusive offset XX. which comprised million share dividends total the $XX.X total fees, of $X.X received of We following, deal million from

Sankaty convertible of our totals million quarter Please of RCF. the loan, comprised on taking forma July, $XXX turn million to the outstanding consideration in face debt position of XX. inclusive was which place of into took Slide X on $XXX $XXX million term bond $XXX amount, in After June million Total the end liquidity on availability. pro undrawn as million, sale million and $XX the RCF following, the $XXX the Eagle,

reduction place, deposition average rate now based lowest on interest and have X.XX% certain previously, facility total our $XXX extension an upsize a we rate margin range borrowing reported capacity, of and total all-in is interest threshold weighted can the margin Inclusive of million between during sustainability for leverage of of X.XX% our X.XX%. margin, to As and the we The criteria. and is our increase of X.XX% extension of which an in in swaps QX, maturity on credit today. on our approximately executed facility, credit an in provided Presently, XXXX. September at

summary on For debt the debt facilities, appendix. the slide term please reference in our more information

XX. to turn Please Slide

providing into look scheduled to QX, off-hire. you into Owned we be activity, unscheduled S&P ahead following the days X,XXX both and available taking As with estimates is and outlook. we're informational after projected consideration for

Please losses, mark-to-market have on today, basis. approximately of Gary is realize fixed and fair at indicated that of pro note days estimate period inclusive available owned we our of earlier, $XX,XXX. as a TCE of gains As rata of figure our the this XX% for a

expenses between impact interest is On in in We forecasted and in $X,XXX. $X,XXX expense between $X,XXX. per-day expected per-vessel and to between compensation OpEx to from $X,XXX between is is to items, $X,XXX come is Non-Cash as and expenses $XXX. to to Net the a we and come further adjusted come non-recurring normalize And projecting operating anticipate side, in we're to the the improve $XXX items. non-recurring expense depreciation expected Non-cash $X,XXX. come range in and come between excluding to estimated $XX,XX. G&A Vessel and $X,XXX. amortization and $X,XXX OpEx basis. is expense estimate cash are $X,XXX on expected between following projected stock-based and less

equity of $X.X shares awards. shares June account unvested we diluted million convertible $XX.X As had XX, basic outstanding, million into shares outstanding, and underlying bond the taking and the after

the concludes discuss my turn Gary, industry fundamentals. remarks. will who I'll call back now This to

Gary Vogel

turn XX. Thank Slide you, to Costa. Please

interest weak congestion equivalent Notwithstanding believe been approximately the of As supply, rates We a to congestion BSI rates effective the $X,XXX reduction freight or we five the effective increase with has indicated recovery in on earlier, To from believe continued translates the experiencing voyage the normalization and we at levels. the continued in drivers XX-day easing say with as has China weakness growth days in on impact in of remain par for the we've this with of moment, macro environment, surprising. concerns been weak rising rates the main averaging July, recession, have essentially of overhang and on freight been call in supply an an port what trade and of utilization. demand a routes evolve. to illustrate the has XX%, decrease February

XX% the reflecting of back have dynamics activity out a true continued QX $XX,XXX, as in pronounced in above for of third approach of on the decrease believe improvement year a pre-COVID about course, an levels, essentially congestion and end we We The up in spot curve. the the trading The trade and around rise the marginal belief representing quarter, a forward market's now a is, fully to back in the summer environment. and a for of contango and such, recover come and rates. forward can effect see As pushing rates in in opposite is utilization supply recovery to congestion we balance unwound, the will curve with with premium rates. demand

highly from were HSFO the for power generation, increased use as well second Slide weakened quarter, crude HSFO to Please by in supply prices Middle as by XX. which mixed the X.X%. Russian East turn rising during as oil, and on EU X% crude be OSFO, with The ban tighter Fuel to by demand the with correlated on impacted tends products. the refined was

averaged $XXX quarter. the OSFO, and HSFO between roughly spreads fuel per result, for ton a As

Given current indicating to of spreads forward dynamics year. curve supply-demand flat for HSFO, the fuel the balance specific is the

net incremental income out as basis, scrubbers as spreads, based an sale incremental XX and This on will ships ships the a our with illustrative an XXXX approximately and fitted Notwithstanding a market result of position scrubbers, fuel annualized midsized the our segment million per recent purchase earlier, on largest scrubber-fitted Eagle's the basis. a an on mentioned As our owner of to activity, bulk globally. TCE today's of year-to-date freight representing XX contribution within solidifying of dry estimate in of now net contraction we approximately generate meaningful in environment. translates $X,XXX curve, day, $XX in forward are

to more who Ship activity trader will traditional Please have inherently rates S&P XX. imply participants has Ultramax freight at approach elevated market an turn Slide freight and within the tend has levels have Even fairly primarily values European-based remain subdued, forward. higher year. the to has robust, going interest but tracking Supramax, investing. to that trend Buying similar to been been asset market though and of believe volatile been emerged last from segment shipowners

recently. well both the us we've We'll generating attempting XX to of total the for active fleet, volatility. I will indicated ability value executed believe our transactions, over do this buying our opportunity of and purchase optimize a market As demonstrated turning on sale been enterprise continue XXXX, to fleet, our shareholders. over fronts and further to an And XX% that selling provide and to the since seek we've also our while on capitalize with and earlier, opportunities incremental years. we've

supply were Please into compared XX. turn delivered fleet during bulk total vessels A as slowed the the XXX Slide period dry quarter. in QX. Net newbuild to growth prior with XXX of

which market vessels geared vessels, QX were and in XX deliveries midsize from scrapped. quarter. offset were XX during Notably Eagle, partially the removed were for the scrapped by Newbuilding

entirety still significant a While increase the just XXXX. nine of during low, represents compares and to midsize this scrapped vessels

level previously, the the in given As scrap that sentiment generally strength strong high the that underlying far is spot low in averaged shared and surprising, and demolition the mentioned during by will going $XXX XXXX vessel XXXX, rates per be forward. market thus prices we've despite XXXX, not ton of around owners apparent

of at low In around X.X% level on-the-water order terms dry of growth, historically of forward the the supply fleet. overall book bulk remains a

is low growth of continuation fleet net despite is rate bulk is dry XXXX. projected and dry at scrapping muted of low The XXXX, X.X%, driver growth level this For all same deliveries a in as bulk main at of across the segments. levels

scrapping bulk was just as We total were year, dry majority quarter. up QX, worth ships $X or during the in not also last to now until of will vast forecasted as to It's forecast forecast being that XXXX XXXX. XXX but ships ordered continually the deadweight the ships million been that note has prior million is of high be XX of late ordered the second half A compared XXXX noting be deadweight. as delivered revised $XX downward, today

surpass increasing that record order will continuing look positive and supply slide increasing older of dynamics expected to to ships recycled be book midsize ever delivery to expected need from the Based the A an to years. number continue Future turn and coming XX. XXXX, trend levels, age in favorable. average of Please very of years there's scrapping current on this there. in the that is from significant XX fleets

only candidates. on to and meaningful the we previous worth for future of As to XX that average near-term over adds noted age as ships increasing years slide, to need downward, continually the which ever ships age noting scrapping increases potential over costs which dock forecast months, has pool It's the XX for every scrapping the age. been revised and of they translates dry the

technology, well we versus yard the decarbonization as ordering for of book relative will time. future believe some in propulsion result limited newbuildings, advantage order and and capacity, fuel secondhand Given remain low around uncertainty cost as ships

We fleet in development dynamics, record side years. order further near record the near to the terms expect in low a these combining age, book with supply coming fleet of improve

previous to due XXXX, as turn growth At currently standoff of financial for the and disruptions, points although notes as to and of and invasion IMF the improving, IMF chain compared continuing central continue modestly in markets. The The economic US US the year of year. XX has uncertainty, in being The inflation's first most area an be to X% basis this Ukraine Please countries, banks Switzerland ceiling global the to with their shocks of of seeing sector outlook an level, it GDP end focus. Russia's the projecting to their And debt we're supply resolution slide half remains be also in and I modestly recede. forecast. appears to notwithstanding for the tightening the to close global reach that is pandemic, containment in general outlook high at XX. the believe stage, turmoil or the the the of up will improvement continue of confidence easing in to improved

factoring X.X% XXXX ton to in is dry bulk, XXX of of trade expected once level demand core terms a by to X.X%, growth improve positive points In basis in total improve effect. further on positive and reach to basis a mile

to XX. Please turn Slide

both note XX on has basis earnings XXXX the upward X.X% bulk an most basis upward million in been in forecast basis ore by for revision bauxite. demand fertilizer, on demand details forest though last with X.X%, basis our Iron and been X.X% in revised generally dry of to for for has revision thermal estimated increases thermal China for steady, upward Coal from coal, demand Demand is increased points improved Chinese since somewhat XX and an demand for an primarily to growth minor growth we led on coal. $X.X of demand by products, by has offset bolts steel, for for commodities reduction XXXX to growth XXXX, tons. demand points and upward XXX by slide, absolute that holding into of this on Looking demand coke revised Indian call. points trade,

growth's demand trade X.X% revised grains, of in terms XXXX. In been to

an Ukraine While its to in part a call, our the deal in our withdrew after a last points Black last due UN Russia revision Sea forecast downward exports of grain decrease for compared significant improvement, is the basis year-over-year This to expiration the it's support. of XXXX on XX call. reflecting earnings since XX%

discussed, overall considerable reiterating been worth reasons the recent years, grown and to last challenged abate. on While bulk XX we've a to dry headwinds we quarters over due it's growth that has upside ton basis and mile current believe XX demand's in demand in various forecast macroeconomic where there's geopolitical

Please turn to Slide XX.

commodities record utilization with our position meaningful platform in Given an a the a midsize optimal and on an exclusive a focus rapidly maximize all dry we to bulk track and environment. to evolving to continue carry with of outperformance, capitalize commercial segment, on ability be

the about predominantly positive $XXX side fully positioned in the remain accretive strong scrubber-fitted fundamentals. all to fleet prospects deliver to With of take given bulk stakeholders. modern dry million we to supply particularly medium-term opportunities, and approximately of vessels, and of our forward, advantage Looking continue we’re for industry, to for a forward well is liquidity, total looking Eagle results continue superior XX

like over that, any may and would to With turn questions call the you operator I the to Operator? have. answer

Operator

Thank first with Nokta Omar you. Jefferies. Our Instructions] question from comes [Operator

open. Your line is

Omar Nokta

you. just Gary. just point, I Hi, your Gary, detailed Costa. you to Hi, your usual. Good maybe very Oaktree for on liquidity conclusion about did post as touching update, were morning. Thank as the Thanks last the obviously about want ask buyback. the

of about quarter? here spent you on feeling Just to XXX big where as stands, the have moves Eagle through it rates today following it the picture, where comfortable kind how third Do liquidity repurchase? where feel gone are you stands you especially the

Gary Vogel

$XXX almost thing quite in the is, constructive million our end short the this we’re on And the I and We we're month out, Costa also which executed XXs, ago, and very leverage is modest. important the half a comfortable. think low yes, Yes. at liquidity, answer quarter, our is market. just is of and is Well, a pointed the as the

out the dead of voyages, lockdown, in the the much we board of we're little We’re we dry highlight and the congestion, COVID China not to talked in has getting other dock about speak level there. it. gate it about in thing also middle across slow out and but of this improvements are is, really detail Obviously, the been a wanted ships but after the here. summer bit And of the quicker. because impacts just seeing

China, in in COVID testing That's dry docks. difficult you get of zero things delayed dry about during for out now. and majority it technicians ships Ships think If were that. to the was it, the docked are really and like and policy, all for gone

you words, of so, more into ships much have of normal That's we In and supply back back the to other because we a about. further dry kind now coming in terms And talked don't like see that in things days dock we're that market, levels of effective back. that.

very positive. we're So,

out And view good. with that fact market quarter, the the of so, summer of of you million our come almost as overlay the in constructive positive, we of third on feel quite we liquidity, the top $XXX

Omar Nokta

Gary. in good And just summer. and Got back revolver, helpful that dead to the it. we of $XX the Yes, reminder maybe yes, that's million undrawn. Thanks, are you've got

the million to quickly have have get $XXX that repaid? Just what how or is does payback required, to

Costa Tsoutsoplides

that. take I'll Omar, So,

in quarterly has a September, capacity So, but capacity assuming the reduction which RCF $X.X basically roughly a that's drawn. quarter, million fully of it's starts reduction,

we're drawn. So, not fully

a is a until that million, half, a or what year to $XXX actually. so and So, any which based have repay need now, right wouldn't about we we of drawn - on year

Omar Nokta

Oh, I see.

interesting. Okay,

So, you actually have down. don't to pay

principle, Just, you pay ratio. that of to don't until any that get you down right,

Costa Tsoutsoplides

where down. RCF it amount. until RCF the we the it's point the paying when Correct. Up reaches up drawn until That's capacity the point - start

Omar Nokta

Understood.

spot, pick the Gary Okay. just I typically to in we're clearly a out as know, pointed market, things tough and will the fall. up get listen, seasonally, as we And and

dribbled get trying just Just itself. liquidity, in south, think Do highlighted also you scenario, don't held you canceled? go wondering buyback liquidity. those I'm that about share worse gets officially and worst a out picture, Worst needed shares of are additional things million and you was could big to the the start to be those If and are recovery own shares? to those or $XXX or are just wondering. asking, those Are canceled if those just treasury? case we

Costa Tsoutsoplides

we But yes. that Those officially shares were to issue have course, that. of shares we capacity always can plenty do canceled, now

Omar Nokta

thanks. Yes,

curiosity, Thank out good. Just to of wanted on that. you. Well, pass over. check I'll it

Operator

you. Thank

comes from Lewis question Greg BTIG. next with Our

Your line is open.

Greg Lewis

with pending morning, advantage I But Hey, the for recent Should to much prepared was take that the your want over thanks transactions the I you we have remarks deliveries, probably good everybody, to shareholders, new one questions. to opportunities for that. that taking you next quarters, can't say present ships about quarter, realizing buying did is, you your to that's or I few guess thank no either and selling. market, that the and expect following selling or continue of about high-level ask mentioned looking that conversations in you whether thoughts, my Gary, opportunities around for buying next Yes. realizing be themselves? some thing the recent we able those in over as ongoing

Gary Vogel

do short would demonstrated to our yes, again, really the those and impact because buy both of I answer was focus S&P. opportunities active been think continuing deliveries so side on just our The the sell and the find OpEx. we've comment we've on So, be

take a of lot when we we're ships, about, talked to we've As those not capitalize able costs.

put to now it's wanted point kind just finer of that we or on behind fact point So, us. the a a

a looking accretive an buyback, be opportunities number as a was NAV but physical as much therefore of because our so, on on OpEx but that. based of minds the should at NAV basis. accretive And it does way market adjusted we But no that, point, think highly in basis you to discount not view in from to earnings on well. opportunities. our market, to our us well, we in of we'll to preclude overall And looking to cash and in Having that at the that we're Omar's be OpEx way be that said did considerable read on the a going no amount going use share closer is

Greg Lewis

buying new stock sometimes No, absolutely, think I and back is better than ships. your buying

yes. So,

about I it's been whether taking over buying creating also that scrubbers, create over, synthetic has I charters, The you've time of last Just to and do wanted I the just me for nuance mention the think years since we selling And I'm trying i.e., or call is, continued from taken I your charters? of of benchmark. outperform to other business. to where are by you've clearly should curious, this, couple the somebody sitting, thing like options. some advantage to was really the maybe know using take advantage you it synthetic but freight already more to understand performance that

Gary Vogel

Yes, by derivatives, we market that. don't the market, long so the go the if on FFA we talk FFA buying about

We charter with will vessels. put In and do expanding we hard them put said we But line. our market and hedges then a on. words, back. exposure on to then back other in Having them them derivatives. the unwind lead that, And never buy dynamically that's using

on want shipment when we and a our option to or is fleet with S&P, regular one that or two And a one basis, do we we year through so, for do chartering but expand derivatives. don't a not that something -

Greg Lewis

And I'll just more. one Okay. ask then

to opportunities a looking be is company what is are but arguably finish take depressed. that to the see in think I ahead to rates about as of stronger an the that should how of ships market to in seeing opportunities advantage seeing the think you obviously as now, charter - the year? of portfolio, do right other short that, you about the and opportunities freight Sorry kind expand chartered-in or opportunity we about Are

Gary Vogel

of one the it specification we of year. ships. we But profitability a the Yes, hours, share again, in absolutely, XX And just for fact we and did not extended with that long-term high complicated, a a slightly, extended but in standpoint our optional just within the literally us, It’s a further just within of that's last day. terms has year, for a it market. Ultramax, and last

we constructive. to be question, no continue So,

quarter also that of words fourth release again, if almost in gain the on market, back gain it our monetize we the you We that look this points the significant then it, so the you which on market with, saw right? in will, the to that we that. put and opportunity in lock on just And quarter, crystallize, those ships if and see, fact think also a Q on if on constructive might the to FFAs the hedges on. the we all the bought third hedge press weakness for to we that had position I and crystallized You not the based it's go those overlay in and were hedges - were reverse an back up, and

Greg Lewis

Thank great. Okay, you a great my day. for Have questions. taking

Operator

you. Thank

comes Burke Liam with Our next question from Riley Financial. B.

open. is line Your

Liam Burke

to and at Thank morning, older NAV? consider Costa. discount looking trading you. Good high a your values you Gary, selling the at vessels morning, Gary. Good do your stock and them into market asset with

Gary Vogel

constructive we're fleet. and renewal on at basis rightsizing market, right? of So, if right-aging, you the looking think the this on We we're fleet will,

And than down point the the at oldest ship - XX made so, a of focusing getting years old. less we’ve on is moment

with six, market's and doesn't idea price couple we're because of But seven in We're the if there. and trading replace is a over years. enough, at the volatile. now, because keep us, good at right process. ships ongoing that's the monetize the an of a factor age lot years really ships We share for have selling coming last again XX the discount the ships. those them a been likely will up fleet younger to able market, Based relatively on stable we of We've

assets cycle. and with on are their where And and so, they them we're can of generate on looking we age what enterprise the and what we more at can based for the the benefit in replace the

Liam Burke

Okay, you, Gary. thank

last disruption, Looking be had at so mean, lot the year lower are anyway. we year-over-year macro numbers front, going to a I of

supply we're at abnormally relief, at tight there rates that's else fairly highlighted well demand, Is steady but and low? I in here. still You if looking there we're China, anything at pretty congestion as keeping looking as a look the chart

Gary Vogel

now spend we a average me really it's to midsize is XX. the trying are just scrapping The has these that I of for the that's reasons one is of age we're reading negative right, around. fleet, people have the coming think to scrapping therefore not we and - that ship ships the And the just tighten. XX are look it. low, stable had years, tea around been think are scrapping. the that at going - that But leaves, pretty many are time the age on that just same I a of we hang if right, The is ships and reason order important, Again, and congestion career the that is whole to is my people highlight at book regulations of over this and lack market

see we ships. to another think that every they over had you saying the graph growth XX look if the of and you'll it's is part go need last ships fleet to and in way before, Not ships than six I the it. all last And of think plus about like that, dock ships years, in fact segment, ships scrapped quarter, last a real to And why so, you're under-recycling to but just, on I in enough, also XXXX. of of that It’s we continue I've every we the meaningful of especially of And trend the now. big quarter months. midsize low, recycled. in dry deck, right decision, to positive, year. when weaker this that and now, is fleet, XX% given And going that's XXXX part fleet more the Or we needs year. see the although talked been dry those market we're get have said XX scrapping are that dock part highlighted of Having any it, weakness haven't at - we more of just a years of that's the the real since especially more a

Liam Burke

Gary. you, Great. Thank

Operator

Thank you.

Our with question Poe comes from Partners. Alliance next Global Fratt

Your line is open.

Poe Fratt

of major the you a at the your taker costs, Arguably, and over next What about else. that's Costa. topic to I and all price the you morning, appreciate day. anything on and it's whether you you're control Costa is you China Good end XX still costs? what's everything to there don't think know do can Gary. do? your morning, that on with, efficiency can can your Good you you operating normalizing that, control months costs, on detail the lower discussion macro the front so I of XX talked new been a shareholder. that but anything think Is that by the going

Gary Vogel

yes, answer So yes. is the

focused are addressing we've and this. We been

think calls, Xth. it. meaningful. look a last earnings transition finalized And of crew on talked ship ships these we the really you XX manager last on If on few the July is we The we've about

ships were new hard by over things think the share now that, behind don't a basically on I because far and with buy So, freight was things by we quarter We freight to when has that Having by that's get and when purchase lion’s - also, hit cost like affected in what that. but it about us. bring OpEx. on for ways still said there activity, you. was and to also second talking ships, And OpEx, like And and that done been stores pretty on frame that that. costs right, it's we're minimal capitalized, spares disruption, agreements important, the I it focusing have inventory the other focused lubes down keep COVID, S&P OpEx we that, that hits

can number is on we So, bring that QX. to range that the part Obviously, we'll pleased with short yes. even XX in not overall our of guidance on for the be if adjusted, the answer lower I'm, XX. OpEx pleased

is trend be more but positive And work and the we've to acknowledged there's so, done that. really there,

opportunities there we're it’s that see we're and it. from the seeing to putting and I resources So, on an results think continue we area

Poe Fratt

of Great. specific Is digitization fleet where was Gary, area, feedback real whether it's in, loop on? an One not. you you're focused the the area or info, that the get time that

Gary Vogel

Absolutely.

San got machine focused it companies called routing across John consumption. one a company digitization first uses things a led fuel and called a to the highly mean, vessel to when function, join I and establish was across Francisco-based it's models optimization first on We And by Ocean. was and are partnered Poe, company, a who the me actually, optimization. particularly performance I Eagle people and Wayfinder, it's Dowsett, on department, a I now a platform one of voyage regular models training of They enhancing with did of now here. I came on when learning, number partnered we we're to and Sofar our basis. Today, in these with improve have technology the

in to do technology. of good for because we'll peers, standpoint, plenty efficiency the line, of I something think the So, in our the many it's where good continue it's I most It's area to that making are the more and bottom for we, we're so from an a It's environment. this. there's engaged absolutely and from come leading think

Poe Fratt

very Thank you. That's Great. helpful.

Operator

call are to Gary closing There further back like to remarks. no you. over the I'd any for turn Thank questions.

Gary Vogel

very thanks much. Operator,

We and so everyone wish taking a today I'd good weekend. further, thank us for everyone join nothing to good have time like to a day the and

Operator

disconnect. you day. you does This and your may have the participation. Everyone, now Thank great for include program a

Eagle Bulk Shipping (EGLE) 4 Aug 232023 Q2 Earnings call transcript