Investors in Castor Maritime (CTRM -3.11%) haven't had a pleasant past three months, as the stock has dropped almost 50% in that time. But today shares are soaring after the shipping company reported its second-quarter 2021 earnings. As of 12:30 p.m. EDT, shares are up 23% after having risen more than 30% earlier in the day.
For the three months ended June 30, Castor Maritime earned $6.5 million, building on the $1.1 million profit it made in 2021's first quarter. The company took delivery of 12 new vessels in the second quarter, making progress toward accepting the 20 new ships it has agreed to acquire since the start of the year. Once all the vessels are delivered, the company will have a fleet of 26 ships, 18 of which will be dry bulk carriers. A strong dry bulk shipping market has driven a sharp increase in vessel revenue to $21.8 million in the quarter, compared to just $2.6 million in the prior-year period.
The Baltic Dry Index drives the prices the company charges to move cargo. That index jumped 36% in June, and remains near five-year highs. Castor CEO Petros Panagiotidis said in a statement, "Strong demand for dry bulk transportation services has resulted in robust freight rates, with the upward momentum expected to be sustained by the tight vessel supply and historically low newbuilding order book."
Investors today are taking advantage of the previous drop in the stock price and looking forward to an extended stretch of profitability thanks to the strong current market.