IN PROFILE
The public - private debate Eagle Bulk’s Gary Vogel on the merits of being listed
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t’s been one of shipping’s most contentious debates for decades - the merits of being a public or a private shipping company., At Marine Money’s recent London Ship Finance Forum two well-known names in shipowning were on the same panel, one preaching the bonuses of being listed, the other (carried overleaf) on why private is best. Gary Vogel, CEO of New Yorklisted Eagle Bulk, made a strong case for being a public company. His background, which included 15 years at privately held Clipper before taking the reins at Eagle Bulk in 2015, makes for a compelling case too. The trick to being a successful public shipowning entity, according to Vogel, is to nurture supportive shareholders. “It’s about you saying what you’re going to do and then doing what you said you were going to do and I think doing that through the cycle garners a trust from investors,”
Spot on
Eagle Bulk New York-based dry bulk player focused on supramaxes and ultramaxes with a fleet of 53 ships with an average age of nine years.
ISSUE TWO 2022
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You get the shareholders you deserve
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Vogel told delegates attending the event. Having a clear investment focus, being transparent with strong governance, these are vital characteristics for a successful listed shipping company, according to Vogel, who quipped, “You get the shareholders you deserve.” Of course there are many public companies who are making money on the side, something Vogel hit out about during the panel discussion, saying: “There are public companies that have related party transactions with fees going out to related parties in terms of commercial management and and technical management.” Since Vogel took over nearly seven years ago, Eagle Bulk has been recapitalised through two private placements worth $200m and then
has carried out 49 S&P transactions. The company is now cash rich, and as Vogel said, if it wanted to it could issue $30m of equity in just a few days to buy some ships very efficiently at the market levels. When quizzed as to why ultimately public companies tend to still trade at a discount, Vogel argued that it was not all about NAV. “It’s about where you’re buying assets, it’s about using leverage when you issue equity and put on leverage and buy assets,” Vogel argued, going on to highlight how his company had bought nine ships in the latter part of 2020 and early 2021 that have gone up by almost 100%. “Issuing equity at that time and using leverage to buy them has been incredible very accretive to our shareholders,” Vogel maintained. Looking at market fundamentals for the dry bulk sector, especially the extremely low orderbook, Vogel said he was very positive for share prices for public dry bulk companies going forward. ●
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