Eagle Bulk Shipping Inc. (NYSE:EGLE) Q2 2022 Earnings Conference Call August 5, 2022 8:00 AM ET

Company Participants

Gary Vogel - Chief Executive Officer

Frank De Costanzo - Chief Financial Officer

Conference Call Participants

Omar Nokta - Jefferies

Poe Fratt - Alliance Global Partners

Operator

Good day, and thank you for standing by. Welcome to the Eagle Bulk Shipping Second Quarter Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Gary Vogel, CEO of Eagle Bulk Shipping.

Gary Vogel

Thank you, and good morning, and our apologies for the technical difficulties. I'd like to welcome everyone to Eagle Bulk's second quarter 2022 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 adjusted net income, 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.

Please turn to Slide 6. Before we get into discussing the quarter, I'd like to take this opportunity to mention that our thoughts and prayers remain with all those affected by the war in Ukraine, including our Ukrainian seafarers, who maintain their steadfast dedication and commitment to Eagle while being so far from their homeland and their loved ones.

As we indicated on our last call, we've taken steps to provide extra support and assistance to them and to their families during this difficult time. From a market perspective, the war has disrupted typical trade patterns and altered demand as cargoes are being sourced from and sent to alternative regions, something we'll address later in the call.

For Q2, we were able to capitalize on the market volatility, and due to the efforts of our team, we're able to achieve our best-ever quarterly results, with net income coming in at $94.5 million, or $7.27 per share basic. Adjusting for non-cash mark-to-market gains on derivative hedges, net income came in at $81.6 million, or $6.28 per share.