PRGN 4q08 earnings.pdf (application/pdf Object).
Paragon Shipping PRGN operates a fleet of 12 Panamax and Supramax dry bulk vessels. Linked above is the PDF of the earnings release.
Although the company had a nice 4th quarter and and excellent year has they grew their fleet, a couple of items caught my eye. First they slashed the dividend by 90% from 50¢ per share to a nickle. For the 4th quarter the average time charter equivalent (TCE) rate was $39,439 compared to $40,250 in the 3rd quarter. The report states that the company has 98% of their fleet days under contract for 2009, but that drops to 55% for 2010.
Current Panamax and Supramax spot rates are less than half the rate that Paragon has been earning. I would keep an eye on the TCE for this company going forward and see what they are doing with the cash they save from slashing the dividend.

2 Comments
As PRGN has a fairly strong balance sheet, I was shocked by a 90% cut in the dividend. I’m assuming that they are concerned with their 2010 TCE and thus need to conserve cash. Whatever they’re strategy for success is, I hope it’s a good one.
I think all of us holding shipping stocks feel that way.