Press Releases

<< back

26/05/2011: Paragon Shipping Inc. reports first quarter 2011 results

ATHENS, Greece, May 26, 2011 - Paragon Shipping Inc. (NYSE: PRGN), or the Company, a global shipping transportation company specializing in drybulk cargoes and containers, announced today its results for the three months ended March 31, 2011.

ATHENS, Greece, May 26, 2011 - Paragon Shipping Inc. (NYSE: PRGN), or the Company, a global shipping transportation company specializing in drybulk cargoes and containers, announced today its results for the three months ended March 31, 2011.

Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, “We are pleased to announce our 15th consecutive profitable quarter. Our EBITDA for the first quarter of 2011 was $16.5 million, while our net income was $5.4 million, or $0.09 per share, which represents a $0.05 increase compared to the previous quarter. We continue to be resilient to the highly volatile market conditions by having contractually fixed 95% of our revenue days in 2011. Based on the earliest redelivery dates, we have currently contractually fixed time charter revenues of $41.9 million for the remainder of 2011 and $26.1 million for 2012. Our solid operating performance is reflected in our utilization rate, which, after excluding our scheduled drydockings, equaled to 99.5%.”

Mr. Bodouroglou continued, “Since the beginning of the year, we are facing many challenges that made us review our dividend strategy. The Korea Line’s default earlier this year has a negative impact on the M/V Pearl Seas, which we drydocked during the quarter and then re-chartered at a lower rate to Cargill. Since then, the drybulk market has continued to decline and it appears that the oversupply of vessels has finally made an impact on charter rates, which has caused asset values to decline to more attractive levels. Taking into consideration these factors, the Board of Directors decided to suspend our quarterly dividend in order to retain cash, so that we are in a better position to explore investment opportunities during these weakened market conditions.”

Mr. Bodouroglou concluded, “This quarter was transformational for Paragon. We believe the increased liquidity from suspending the dividend is a crucial element for us to take advantage of the low asset value environment in the drybulk sector to grow our fleet. We remain confident that our strategy will have a positive impact in our financial results, which will be reflected in our stock price.”

Paragon Shipping Inc. All rights reserved - Designed & managed by imarketing.gr