Boston, MA 03/03/2014 (wallstreetpr) – Baltic Trading Ltd (NYSE:BALT), the more than $299 million market capped drybulk vessels operator was last seen setting new 52-week top level records. As most everyone already knows, drybulk stocks have had very challenging trading period in the past year, mostly due to low shipping rates coming as a result of reduced shipping contracts.
The trouble that has gripped the iron ore and aluminum industries has also impacted negatively on the businesses of drybulk shipping companies and Baltic Trading Ltd (NYSE:BALT) has been no exception. However, there seems to be rays of hope that the situation is improving and drybulk stock could once again be just what investors want them to be – profit stocks.
Perhaps looking at Baltic Trading Ltd (NYSE:BALT) alone may not be enough to justify the improving business condition for drybulk shippers. But looking at other bulk vessels operators like DryShips Inc. (NASDAQ:DRYS) that also ended up with gains in the previous session, albeit small, goes a long way to confirm that the worst might finally be over for drybulk stocks.
Encouraging performance
Baltic Trading Ltd (NYSE:BALT) was blowing in NYSE because the company posted earnings data that was nothing but revealing of its fast improving condition. The management also followed the encouraging results with several announcements about what they are doing to root the company into solid business grounds.
Baltic Trading Ltd (NYSE:BALT) announced that its fourth quarter ended with net income of $0.6 million, reflecting 1 cent per share diluted. That was better than the 1 cent loss per share that analysts predicted. Further, the EPS was better than the loss per share of 19 cents that the stock suffered in the comparable quarter in 2012. The better than expected earnings were helped by revenue growth of more than 104 percent, that eventually trickled down to improve the bottom line.
Assets acquisition
Besides the encouraging results, Baltic Trading Ltd (NYSE:BALT) announced that it acquired two more vessels at an aggregate price of $56 million. And there is the option to acquire another two vessels and the company announced that it had executed a credit agreement with DVB for $44 million to partially fund the additional vessels acquisition.
