Dry Bulk Shipping Group Posts Results

GREECE – Paragon Shipping, who currently operate eleven Panamax, Handymax and Supramax dry bulk carriers, posted full year figures today showing 2009 net income of $55 million down just 2.2% against 2008, which, considering the drop in charter rates and the condition of the shipping market overall, the company seem more than happy with. Paragon are pursuing a policy of considering only lower cost vessels for future acquisitions citing the glut of new builds as the cause for the depressed prices.

The figures quoted in the final quarter and annual results show adjustments for non cash items and Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, said the current fleet has significant protection against volatility in the charter market as the company have 100% of their revenue days fixed at levels that will generate free cash flow over and above capital obligations. Pursuant to its time chartering strategy, Paragon Shipping Inc. mainly employs vessels under fixed rate charters for periods ranging from one to five years. Assuming all options are exercised, the Company has secured under such contracts 100%, 90% and 45% of its fleet capacity in the remainder of 2010, in 2011 and in 2012, respectively.

Paragon had an average fleet through 2008 of 11.4 vessels which increased to 12 ships for 2009. Fleet utilisation rose from 98 to 99% but time charter equivalent earnings dropped by around $4000 per day for 2009. A full breakdown of the figures is available on the Paragon website.