The BDI is down 9 this morning, basically unchanged thanks to strength in Supramax rates. By the way, Handysize rates haven’t budged during this small BDI pullback. The BDI is being dragged lower by Capesize rates, which are up 300% over the past two months. Any reasonable human being would surmise this pullback to be a healthy aspect of a bull market in its nascency.
Back to BALT.
Have a look at their profit and loss statement, over the past year.
Cost of revenue is pretty much mailed in every qt at $4.5 mill. SG&A is also extremely predictable at $1.8 mill and “others” has been no more than $3.72mill over the past 4 qts, bringing total expenditures to around $9.9 million per qt.
Now the problem with BALT, as well as many other Dry Bulkers, has been the top line. Their revenues have sucked, thanks to depressed rates. However, in recent weeks, rates have changed, rather dramatically.
Let’s have a sterile, scientific, look at BALT’s current revenue rates.
Total fleet: 11 (2 additional Handysize ships added since last qt)
Capesize: 2 @ $36,069 per day- $72,138
Supramax: 4 @ $11,369 per day- $45,476
Handysize: 5 @ $5,940 per day- $29,700
Total: $147,314
According to today’s rates, BALT is generating $147,314 per day. If you extrapolate that over 90 days, they should make $13,258,260–providing capacity remains at 99.9%.
In summary, total expenses amount to $110,000 per day. With revenues at $147,314 per day, BALT stands to make $37,314, every single day or $3.35 million dollars over the next quarter. Considering BALT’s position of returning earnings to shareholders, expect a special dividend to be announced over the next quarter or two.
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