Drybulk shipper Paragon Shipping Inc. said Wednesday its fourth-quarter profit rose 29 percent as its larger fleet earned a higher per-day rate, but the results just missed Wall Street expectations. The company also slashed its dividend to a nickel from about 44 cents, sending shares tumbling in aftermarket trading.
The Athens, Greece-based company said it earned almost $10 million, or 37 cents per share, during the quarter that ended Dec. 31, up from $7.7 million, or 29 cents per share, during the same period in 2007. Excluding one-time items, the company would have earned 52 cents per share in the latest period.
Time charter revenue for the quarter rose 47 percent to $44.7 million from $30.4 million during the same period in 2007.
Analysts surveyed by Thomson Reuters were expecting a higher profit of 53 cents per share on revenue of $38.95 million.
The company said that so far the companies who rent its ships are living up to their contractual obligations, despite difficulties linked to the global economic downturn. It said it was also helped by the fact that it has no outstanding orders for new ships.
Its spending to acquire new vessels and other capital investments dropped from $418.5 million in the fourth quarter of 2007 to $80.1 million in the most recent quarter.
The company also said it lowered its quarterly dividend to 5 cents per share to preserve cash, as it predicts 2009 will be a challenging year for the drybulk market. Previously, the company had paid a quarterly dividend of 43.75 cents.
The Athens, Greece-based company said it earned almost $10 million, or 37 cents per share, during the quarter that ended Dec. 31, up from $7.7 million, or 29 cents per share, during the same period in 2007. Excluding one-time items, the company would have earned 52 cents per share in the latest period.
Time charter revenue for the quarter rose 47 percent to $44.7 million from $30.4 million during the same period in 2007.
Analysts surveyed by Thomson Reuters were expecting a higher profit of 53 cents per share on revenue of $38.95 million.
The company said that so far the companies who rent its ships are living up to their contractual obligations, despite difficulties linked to the global economic downturn. It said it was also helped by the fact that it has no outstanding orders for new ships.
Its spending to acquire new vessels and other capital investments dropped from $418.5 million in the fourth quarter of 2007 to $80.1 million in the most recent quarter.
The company also said it lowered its quarterly dividend to 5 cents per share to preserve cash, as it predicts 2009 will be a challenging year for the drybulk market. Previously, the company had paid a quarterly dividend of 43.75 cents.