The document presents Eagle Bulk Shipping's financial results for the third quarter of 2012, including a net loss of $29.8 million and revenues of $46.9 million, down from the previous year due to a weak drybulk market. It provides an overview of the company's chartering strategy and cargo mix as well as industry trends, noting ongoing supply growth and weak demand have led to depressed freight rates during the quarter. The presentation also includes details on Eagle Bulk's balance sheet and estimated cash breakeven rates.
2. Forward Looking Statements
This presentation contains certain statements that may be deemed to be “forward-looking statements”
within the meaning of the Securities Acts. Forward-looking statements reflect management’s current
views with respect to future events and financial performance and may include statements concerning
plans, objectives, goals, strategies, future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts. The forward-looking statements
in this presentation are based upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third parties. Although Eagle Bulk
Shipping Inc. believes that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it
will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view,
could cause actual results to differ materially from those discussed in the forward-looking statements
include the strength of world economies and currencies, general market conditions, including changes
in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers
to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-
docking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to
perform their obligations under sales agreements, charter contracts, and other agreements on a timely
basis, potential liability from future litigation, domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities
and Exchange Commission.
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3. Agenda
Results and Highlights
Commercial
Industry
Financials
Q&A
Appendix
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5. 3Q 2012 Results and Highlights
Net reported loss of $29.8 million or $1.77 per share (based on a weighted average of
16,821,024 diluted shares outstanding for the quarter), compared to net loss of $5.9
million, or $0.37 per share, for the comparable quarter in 2011
Net revenues of $46.9 million, compared to $80.3 million for the comparable quarter in
2011. Gross time charter and freight revenues of $48.9 million, compared to $84.0
million for the comparable quarter in 2011
EBITDA, as adjusted for exceptional items under the terms of the Company's credit
agreement, was $12.5 million for the third quarter of 2012, compared with $25.9 million
for the third quarter of 2011
Fleet utilization rate of 99.4%
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7. Dynamic Approach to Chartering
Fleet Statistics
Vessel Count 45 DWT 2,451,259 Average Age* 5.4 yrs
4Q 2012 Chartering Position
(as of September 30, 2012)
Timecharter Index
(fixed)
Commercial 41% 11% 48%
Management
COA /
Spot
(open) Voyage
(fixed)
0% 20% 40% 60% 80% 100%
Fixed Index Open
Chartering strategy remains staying “short” in duration until market normalizes
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* Average age calculated on a DWT-basis
8. Cargoes Carried During the Third Quarter 2012
Cargo Mix by Type Cargo Type MT as a % of Total
100% 1 Coal Major 1,785,024 34.4%
90% 2 Grains / Agricultural Major 599,359 11.6%
3 Cement Minor 420,659 8.1%
80%
4 Iron Ore Major 396,212 7.6%
70%
53.6% 5 Steels / Pig Iron / Scrap Minor 324,740 6.3%
6 Potash / Fertilizer Minor 278,405 5.4%
60%
7 Limestone Minor 239,036 4.6%
50%
8 Sand Minor 199,971 3.9%
40% 9 Miscellaneous Minor 188,829 3.6%
10 Other Ores Minor 180,090 3.5%
30%
11 Coke Minor 145,295 2.8%
20%
46.4%
12 Sugar Minor 139,259 2.7%
10% 13 Forest Products Minor 119,876 2.3%
14 Alumina/Bauxite Minor 89,662 1.7%
0%
15 Copper Minor 79,314 1.5%
Minor Major
Total Cargoes Carried 5,185,731 100.0%
Diversified Cargo Mix
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10. Freight Market Weakness Intensifies in 3Q 2012
3Q 2012 Steel Consumption
(quarter-on-quarter % change)
Supply growth totaled 20.3 million DWT,
or 242 vessels, +3.1% Q/Q E.U. U.S.A. Global China
0%
-2% -1.30%
Global steel production down 3.3% Q/Q -4% -3.30%
Third quarter 2012 Chinese industrial -6% -4.80%
production decreased to 9.2%, -11% Q/Q
-8%
-10%
U.S. grain exports severely impacted by drought -12%
-11.90%
YTD grain inspections down 11% Y/Y -14%
Average Baltic Spot Rates
($/day)
Supramax Panamax Capesize
Supramaxes outperform in depressed market
1Q 2012 $8,679 $7,983 $6,970
Spot earnings down 7.8% Q/Q versus BDI
2Q 2012 $11,170 $9,529 $6,030
which posted a decrease of 17.4%
3Q 2012 $10,301 $6,640 $4,827
Supramax asset class resilient
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Source(s): Arcelor Mittal, Clarksons, USDA
11. Newbuilding Deliveries Beginning to Recede
Newbuilding Deliveries Projected Newbuilding Orderbook
(in million DWT) (a % of the fleet)
16 25%
14
20%
12
10 15%
8
10%
6
4
5%
2
0 0%
Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-12 Dec-12 Dec-13 Dec-14 Jul-15
Actual 3m Moving Average Drybulk newbuilding orderbook as a % of the fleet
Newbuilding supply growth at peak levels New orders placed in 2012 down 66% Y/Y
LTM delivery growth trend by asset class: Depressed earnings environment
Supramax -10% Relative attractiveness of second-
Panamax +29% hand market
Capesize +2% Lack of financing
Orderbook depleting rapidly
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Source(s): Clarksons
12. Ship Demolition Continues to Offset Supply Growth
Scrapping Fleet Over 20 years of Age
(in million DWT) (
35 1,320 vessels
45 20%
40 18%
30
35 16%
25 14%
30 265 vessels
20 12%
25 121 vessels
10%
15 20
8%
15
10 6%
10 4%
5
5 2%
0 0 0%
1972 1977 1982 1987 1992 1997 2002 2007 2012e Capesize Panamax Sub-Panamax
Annual Demolition Vessels in million DWT as a % of Fleet (DWT)
Full year 2012 demolition on pace to reach Over 1,700 vessels are over 20 years of
34 million DWT, +47% Y/Y age, amounting to 83.4 million DWT
Scrap prices remain at elevated levels Equates to 12.4% of the current fleet
Scrapping at historical highs
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Source(s): Clarksons
13. Short and medium-term Demand Outlooks Mixed
China Power Plant Coal Inventory Days
Short-term factors capping recovery
35
Global macro weakness
China leadership transition 30
European sovereign debt crisis 25
U.S. fiscal cliff 20
15
High Chinese coal inventories 10
Sep-09 Sep-10 Sep-11 Sep-12
U.S. drought
Ukrainian grain export ban Euroland Real GDP Growth
(annualized quarterly % change)
3.0%
2.0%
Medium-term catalysts leading to a recovery 1.0%
Chinese stimulus 0.0%
-1.0%
Resolution in Euro-area
-2.0%
Stronger U.S. growth
-3.0%
Global liquidity accommodation -4.0%
Low commodity prices / restocking
Euroland Periphery
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Source(s): Clarksons, IMF, JPM
14. Long-term Drybulk Fundamentals Remain Strong
Urbanization Rates
Minor bulk and agricultural trades projected
to grow at a 3 to 5% long-term average 80%
60%
40%
Global annual steel production to increase 20%
40% by 2020 to reach 2 billion MT
0%
Driving strong demand growth for 1990 2010 2030e 2050e
iron ore and metallurgical coal India China Rest of World
Indian and Chinese Coal Imports
(in million MT)
Over 370 GW of new coal-fueled power 600
capacity coming online by 2016 500
Equates to 1.2 billion MT in 400
incremental thermal coal demand 300
Indonesia and Australia expected 200
to source majority of this growth 100
African exports to gain momentum 0
2000 2002 2004 2006 2008 2010 2012e 2014e 2016e
India China
Coal to dominate drybulk trade growth
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Source(s): Clarksons, Macquarie, Peabody
18. 2012 Estimated Cash Breakeven
ASSUMPTIONS:
Vessel expenses are comprised of the following: crew wages and related, insurance, repair and maintenance, stores,
spares and related inventory, and tonnage taxes.
Interest expense takes into consideration Eagle Bulk’s view and projection of LIBOR rates.
Drydocking expense is based on estimated costs for anticipated vessel drydockings over the next four quarters.
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