##### Table of Contents





UNITED STATES
 SECURITIES AND EXCHANGE
    COMMISSION
 Washington, D.C. 20549
    FORM 10-Q
   (Mark One)x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30, 2008ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to     Commission File Number 00051366
  EAGLE BULK SHIPPING
    INC.
 (Exact name of Registrant as
    specified in its charter)
  Republic of the Marshall Islands

980453513(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)    477 Madison Avenue
 New York, New York 10022
   (212) 7852500
  x o
  Rule 12b-2
  Large
    accelerated
    Filer  x
    Accelerated
    Filer            o Non-accelerated
    Filer    o
    Smaller
    reporting
    company o  Rule 12b-2 o x
  Indicate the number of shares outstanding of each of the
    issuers classes of common stock, as of the latest
    practicable date.




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##### 





TABLE
    OF CONTENTS
   
 PagePART I


FINANCIAL INFORMATIONItem 1.


Financial StatementsConsolidated Balance Sheets as of June 30,
    2008 (unaudited) and December 31, 2007


1Consolidated Statements of Operations (unaudited)
    for the three and six months ended June 30, 2008 and
    2007


2Consolidated Statement of Stockholders
    Equity (unaudited) for the six months ended June 30,
    2008


3Consolidated Statements of Cash Flows (unaudited)
    for the six months ended June 30, 2008 and 2007


4Notes to Consolidated Financial Statements
    (unaudited)


5Item 2.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


12Item 3.


Quantitative and Qualitative Disclosures about
    Market Risks


24Item 4.


Controls and Procedures


25PART II


OTHER INFORMATIONItem 1.


Legal Proceedings


26Item 1A.


Risk Factors


26Item 2.


Unregistered Sales of Equity Securities and Use
    of Proceeds


26Item 3.


Defaults upon Senior Securities


26Item 4.


Submission of Matters to a Vote of Security
    Holders


26Item 5.


Other Information


26Item 6.


Exhibits


27Signatures


28EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION




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##### Table of Contents



Part 1 :
    FINANCIAL
    INFORMATION  ITEM 1 :
    FINANCIAL
    STATEMENTS  EAGLE
    BULK SHIPPING INC.CONSOLIDATED BALANCE SHEETS
  June 30, 2008


December 31, 2007(Unaudited)ASSETS:Current Assets:Cash

$
62,996,613


$
152,903,692Accounts Receivable


4,298,844



3,392,461Prepaid Expenses


2,119,223



1,158,113Total Current Assets


69,414,680



157,454,266Fixed Assets:Advances for Vessel Acquisition


7,650,000



Vessels and Vessel Improvements, at cost, net of Accumulated
    Depreciation of $66,211,384 and $52,733,604, respectively


717,738,187



605,244,861Advances for Vessel Construction


380,671,562



344,854,962Restricted Cash


10,276,056



9,124,616Deferred Drydock Costs, net of Accumulated Amortization of
    $3,702,494 and $2,453,253, respectively


4,168,529



3,918,006Deferred Financing Costs


14,138,345



14,479,024Other Assets


4,333,556



932,638Total Assets

$
1,208,390,915


$
1,136,008,373LIABILITIES & STOCKHOLDERS EQUITYCurrent Liabilities:Accounts Payable

$
1,774,373


$
3,621,559Accrued Interest


4,208,254



455,750Other Accrued Liabilities


2,846,977



1,863,272Unearned Charter Hire Revenue


5,941,253



4,322,024Total Current Liabilities


14,770,857



10,262,605Long-term Debt


665,694,643



597,242,890Deferred Revenue


8,793,903



Other Liabilities


12,223,412



13,531,883Total Liabilities


701,482,815



621,037,378Stockholders Equity:Preferred Stock, $.01 par value, 25,000,000 shares
    authorized, none issued






Common shares, $.01 par value, 100,000,000 shares
    authorized, 46,770,486 and 46,727,153 shares issued and
    outstanding, respectively


467,704



467,271Additional Paid-In Capital


607,738,367



602,929,530Retained Earnings (net of Dividends declared of $215,289,302 and
    $168,525,482 respectively)


(93,338,441
)


(75,826,561
)Accumulated Other Comprehensive Loss


(7,959,530
)


(12,599,245
)Total Stockholders Equity


506,908,100



514,970,995Total Liabilities and Stockholders Equity

$
1,208,390,915


$
1,136,008,373    1




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##### Table of Contents



EAGLE
    BULK SHIPPING INC.CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
  Three Months Ended


Six Months EndedJune 30, 2008


June 30, 2007


June 30, 2008


June 30, 2007Revenues, net of Commissions

$
37,223,200


$
28,338,047


$
73,909,216


$
55,246,579Vessel Expenses


7,596,479



6,856,581



15,587,740



13,102,479Depreciation and Amortization


7,390,982



6,046,953



14,727,021



11,837,584General and Administrative Expenses


4,762,933



1,697,530



9,812,092



6,600,573Gain on Sale of Vessel














(872,568
)Total Operating Expenses


19,750,394



14,601,064



40,126,853



30,668,068Operating Income


17,472,806



13,736,983



33,782,363



24,578,511Interest Expense


3,449,217



3,160,439



6,799,470



6,312,564Interest Income


(882,541
)


(1,348,151
)


(2,269,047
)


(2,146,536
)Net Interest Expense


2,566,676



1,812,288



4,530,423



4,166,028Net Income

$
14,906,130


$
11,924,695


$
29,251,940


$
20,412,483Weighted Average Shares Outstanding:Basic


46,763,160



41,713,820



46,757,849



39,593,975Diluted


47,123,585



41,811,854



47,047,552



39,658,525Per Share Amounts:Basic Net Income

$
0.32


$
0.29


$
0.63


$
0.52Diluted Net Income

$
0.32


$
0.29


$
0.62


$
0.51Cash Dividends Declared and Paid

$
0.50


$
0.50


$
1.00


$
1.01    2




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##### Table of Contents



EAGLE
    BULK SHIPPING INC.CONSOLIDATED STATEMENT OF STOCKHOLDERS
    EQUITY (UNAUDITED)
    FOR THE SIX MONTHS ENDED JUNE 30, 2008
  Common





Retained Earnings


Other


TotalCommon


Shares


Additional








Accumulated


Comprehensive


StockholdersShares


Amount


Paid-In Capital


Net Income


Cash Dividends


Deficit


(Loss)


EquityBalance at
    December 31, 2007


46,727,153


$
467,271


$
602,929,530










$
(75,826,561
)

$
(12,599,245
)

$
514,970,995Comprehensive Income:Net Income













$
29,251,940







29,251,940







29,251,940Net change in unrealized losses in derivatives


























4,639,715



4,639,715Comprehensive Income






























33,891,655Cash Dividends

















$
(46,763,820
)


(46,763,820
)






(46,763,820
)Exercise of Stock Options


13,333



133



237,194



















237,327Non-cash Compensation:Issuance of Stock Grants


30,000



300



608,100



















608,400Restricted Stock Grants and Options










3,963,543



















3,963,543Balance at
    June 30, 2008


46,770,486


$
467,704


$
607,738,367










$
(93,338,441
)

$
(7,959,530
)

$
506,908,100    3




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##### Table of Contents



EAGLE
    BULK SHIPPING INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
  Six Months EndedJune 30, 2008


June 30, 2007Cash Flows from Operating Activities:Net Income

$
29,251,940


$
20,412,483Adjustments to Reconcile Net Income to Net Cash provided by
    Operating Activities:Items included in net income not affecting cash flows:Depreciation


13,477,780



11,234,675Amortization of Deferred Drydocking Costs


1,249,241



602,909Amortization of Deferred Financing Costs


123,219



117,784Amortization of Prepaid and Deferred Charter Revenue






2,160,000Non-cash Compensation Expense


4,571,943



3,383,579Gain on Sale of Vessel






(872,568
)Changes in Operating Assets and Liabilities:Accounts Receivable


(906,383
)


(791,595
)Prepaid Expenses


(961,110
)


24,579Accounts Payable


(1,847,186
)


1,481,907Accrued Interest


3,752,504



94,759Accrued Expenses


983,705



(350,612
)Drydocking Expenditures


(1,499,764
)


(628,307
)Unearned Charter Hire Revenue


1,619,229



737,176Net Cash Provided by Operating Activities


49,815,118



37,606,769Cash Flows from Investing Activities:Advances for Vessel Acquisition


(7,650,000
)


Purchase of Vessels and Vessel Improvements


(70,103,682
)


(138,803,974
)Advances for Vessel Construction


(82,055,976
)


(39,522,428
)Proceeds from Sale of Vessel






12,011,482Advances for Leasehold Improvements


(69,674
)


Net Cash Used in Investing Activities


(159,879,332
)


(166,314,920
)Cash Flows from Financing Activities:Issuance of Common Stock


237,327



110,171,870Equity Issuance Costs






(3,186,989
)Bank Borrowings


68,451,753



74,841,779Repayment of Bank Debt






(12,440,000
)Changes in Restricted Cash


(1,151,440
)


(800,000
)Deferred Financing Costs


(616,685
)


(108,675
)Cash Dividends


(46,763,820
)


(39,165,910
)Net Cash Provided by Financing Activities


20,157,135



129,312,075Net (Decrease)/Increase in Cash


(89,907,079
)


603,924Cash at Beginning of Period


152,903,692



22,275,491Cash at End of Period

$
62,996,613


$
22,879,415Supplemental Cash Flow Information:Cash paid during the period for Interest (including Capitalized
    interest of $7,729,831 and $1,165,560 respectively and
    Commitment Fees)

$
14,424,367


$
7,383,525    4




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##### Table of Contents



EAGLE
    BULK SHIPPING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)
  Note 1.
    Basis of
    Presentation and General Information        VesselNo. of Vessels

Dwt


Type

Delivery

EmploymentVessels in Operation20 Vessels


1,021,023


17 Supramax

2005  2008

Time Charter3 Handymax

2005

Time CharterVessels to be delivered1 Vessel


53,000


Supramax

September 2008

Charter Free4 Vessels


212,400


53,100 dwt series Supramax

2008  2009

3 Vessels on Time Charter and 1 Vessel Charter Free5 Vessels


280,000


56,000 dwt series Supramax

2008  2010

Charter Free25 Vessels


1,450,000


58,000 dwt series Supramax

2009  2012

17 Vessels on Time Charter and 8 Vessels Charter Free     % of Consolidated Time Charter RevenueThree Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,Charterer

2008


2007


2008


2007Charterer A






14.1
%






14.4
%Charterer B


26
%


25.0
%


26
%


24.5
%Charterer D






12.1
%






14.1
%Charterer H


18
%


12.6
%


17
%


11.8
%Charterer J


10
%


11.4
%


11
%


Charterer L


19
%






19
%


Charterer M


11
%






11
%


  5




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##### Table of Contents



Form 10-K.
    Note 2.
    Vessels  a.
    Vessel
    and Vessel Improvements    Vessel and vessel improvements consist of the following:Vessels and Vessel Improvements, at December 31, 2007

$
605,244,861Purchase of Vessel and vessel improvements


70,103,682Delivery of Newbuild Vessel


55,867,424Depreciation Expense


(13,477,780
)Vessels and Vessel Improvements, at June 30, 2008

$
717,738,187   b.
    Advances
    for Vessel Construction       6




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##### Table of Contents



Advances for Vessel Construction consist of the following:Advances for Vessel Construction, at December 31, 2007

$
344,854,962Progress Payments


69,173,063Capitalized Interest


12,337,530Legal and Technical Supervision Costs


1,379,528Delivery of Newbuild Vessel


(47,073,521
)Advances for Vessel Construction, at June 30, 2008

$
380,671,562   Note 3.
    Long-Term
    Debt        Three Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,2008


2007


2008


2007Loan Interest

$
3,377,560


$
2,957,413


$
6,650,973


$
5,906,167Commitment Fees


10,345



143,254



25,278



288,613Amortization of Deferred Financing Costs


61,312



59,772



123,219



117,784Total Interest Expense

$
3,449,217


$
3,160,439


$
6,799,470


$
6,312,564     Interest-Rate
    Swaps
   7




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##### Table of Contents



−
    Notional amount of $84,800,000 with a fixed interest rate of
    5.24% and maturity in September 2009.    −
    Notional amount of $25,776,443 with a fixed interest rate of
    4.90% and maturity in March 2010−
    Notional amount of $10,995,000 with a fixed interest rate of
    4.98% and maturity in August 2010−
    Notional amount of $202,340,000 with a fixed interest rate of
    5.04% and maturity in August 2010−
    Notional amount of $100,000,000 with a fixed interest rate of
    4.22% and maturity in September 2010−
    Notional amount of $30,000,000 with a fixed interest rate of
    4.54% and maturity in September 2010−
    Notional amount of $25,048,118 with a fixed interest rate of
    4.74% and maturity in December 2011−
    Notional amount of $36,752,038 with a fixed interest rate of
    5.22% and maturity in August 2012−
    Notional amount of $81,500,000 with a fixed interest rate of
    3.895% and maturity in January 2013    Foreign
    Currency Swaps
        Note 4.
    Commitments
    and Contingencies  Vessel
    Technical Management Contracts
    Operating
    Lease
   8




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##### Table of Contents



2008

$
324,2762009


648,5522010


648,5522011


788,5192012


835,1752013-18


4,523,865Total

$
7,768,939     Note 5.
    Earnings
    Per Common Share    Three Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,2008


2007


2008


2007Net Income

$
14,906,130


$
11,924,695


$
29,251,940


$
20,412,483Weighted Average Shares  Basic


46,763,160



41,713,820



46,757,849



39,593,975Dilutive effect of stock options and restricted stock units


360,425



98,034



289,703



64,550Weighted Average Shares  Diluted


47,123,585



41,811,854



47,047,552



39,658,525Basic Earnings Per Share

$
0.32


$
0.29


$
0.63


$
0.52Diluted Earnings Per Share

$
0.32


$
0.29


$
0.62


$
0.51   Note 6.
    Capital
    Stock  Dividends
     9




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##### Table of Contents



Note 7.
    2005
    Stock Incentive Plan           10




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##### Table of Contents



Three Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,2008


2007


2008


2007Stock Option Plans

$
82,000


$
124,356


$
163,257


$
245,767Restricted Stock Grants


1,974,240







3,800,286



Stock Grants










608,400



Non-dilutive Profits Interests














3,137,812Total Non-cash compensation expense

$
2,056,240


$
124,356


$
4,571,943


$
3,383,579     Note 9.
    Subsequent
    Events  Dividend
    Long-Term
    Debt
  en bloc
 11




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##### Table of Contents



ITEM 2.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATION      Overview
   12




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##### Table of Contents



(212) 785-2500.
    (1)
    concentration in one vessel category: Supramax class of Handymax
    dry bulk vessels, which we believe offer size, operational and
    geographical advantages (over Panamax and Capesize vessels),(2)
    our strategy is to charter our vessels primarily pursuant to
    one- to three-year time charters to allow us to take advantage
    of the stable cash flow and high utilization rates that are
    associated with medium to long-term time charters. Reliance on
    the spot market contributes to fluctuations in revenue, cash
    flow, and net income. On the other hand, time charters provide a
    shipping company with a predictable level of revenues. We have
    entered into time charters for all of our vessels which range in
    length from one to three years and provide for fixed
    semi-monthly payments in advance. This strategy is effective in
    strong and weak dry bulk markets, giving us security and
    predictability of cashflows when we look at the volatility of
    the shipping markets,(3)
    maintain high quality vessels and improve standards of operation
    through improved environmental procedures, crew training and
    maintenance and repair procedures, and(4)
    maintain a balance between purchasing vessels as market
    conditions and opportunities arise and maintaining prudent
    financial ratios (e.g. leverage ratio). 13




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##### Table of Contents



Daily TimeCharterVessel

Year Built


Dwt


Time Charter
    Expiration(1)

Hire RateCardinal


2004



55,408


May 2008 to August 2008

$
28,000August 2008 to Jun/Sep 2009

$
62,000Condor(2)


2001



50,296


May 2009 to August 2009

$
20,500Falcon(3)


2001



50,296


April 2008 to July 2008

$
20,950August 2008 to Apr/Jun 2010

$
39,500Griffon


1995



46,635


March 2009 to June 2009

$
20,075Harrier(4)


2001



50,296


June 2009 to September 2009

$
24,000Hawk I


2001



50,296


April 2009 to June 2009

$
22,000Heron(5)


2001



52,827


January 2011 to March 2011

$
26,375Jaeger(6)


2004



52,248


July 2008 to September 2008

$
27,500Kestrel
    I(7)


2004



50,326


April 2008 to June 2008

$
18,750June 2008 to April 2009

$
20,000Kite


1997



47,195


September 2009 to January 2010

$
21,000Merlin(8)


2001



50,296


December 2010 to March 2011

$
25,000Osprey
    I(9)


2002



50,206


July 2008 to November 2008

$
21,000November 2008 to December 2009

$
25,000Peregrine


2001



50,913


December 2008 to February 2009

$
20,500Sparrow(10)


2000



48,225


February 2010 to April 2010

$
34,500Tern(11)


2003



50,200


February 2009 to April 2009

$
20,500Shrike(12)


2003



53,343


April 2009 to June 2009

$
24,600June 2009 to Aug 2010

$
25,600Skua(13)


2003



53,350


May 2009 to August 2009

$
24,200August 2009 to September 2010

$
25,200Kittiwake(14)


2002



53,146


May 2008 to August 2008

$
30,400August 2008 to July/Sep 2009

$
56,250Goldeneye


2002



52,421


May 2009 to August 2009

$
61,000Feb 2012

$
24,750Wren(15)


2008



53,100


Feb 2012 to Dec 2018/Apr 2019

$
18,000 (with
    profit share
)     (1)
    
    The date range provided represents the earliest and latest date
    on which the charterer may redeliver the vessel to the Company
    upon the termination of the charter. The time charter hire rates
    presented are gross daily charter rates before brokerage
    commissions, ranging from 2.25% to 6.25%, to third party ship
    brokers.(2)
    
    The charterer of the CONDOR has exercised its option to extend
    the charter period by 11 to 13 months at a time charter
    rate of $22,000 per day.(3)
    
    Upon the conclusion of the current charter in July 2008, the
    FALCON commenced a new time charter with a rate of $39,500 per
    day for 21 to 23 months. The charterer has an option to
    extend the charter period by 11 to 13 months at a daily
    time charter rate of $41,000.(4)
    
    The daily rate for the HARRIER is $27,000 for the first year and
    $21,000 for the second year. Revenue recognition is based on an
    average daily rate of $24,000. 14




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##### Table of Contents



(5)
    
    The previous time charter on the HERON at a daily rate of
    $24,000 ended in January 2008. The vessel commenced a new time
    charter with a rate of $26,375 per day for 36 to 39 months.
    The charterer has an option for a further 11 to 13 months
    at a time charter rate of $27,375 per day. The charterer has a
    second option for a further 11 to 13 months at a time
    charter rate of $28,375 per day.(6)
    
    The charter rate for the JAEGER may reset at the beginning of
    each month based on the average time charter rate for the Baltic
    Supramax Index, but in no case be greater than $27,500 per day
    or less than $22,500 per day.(7)
    
    The charterer of the KESTREL I has exercised its option to
    extend the charter period by 11 to 13 months at a daily
    time charter rate of $20,000 per day.(8)
    
    The daily rate for the MERLIN is $27,000 for the first year,
    $25,000 for the second year and $23,000 for the third year.
    Revenue recognition is based on an average daily rate of $25,000.(9)
    
    The charterer of the OSPREY I has exercised its option to extend
    the charter period by up to 11 to 13 months at a time
    charter rate of $25,000 per day. The charterer has an additional
    option to extend for a further 11 to 13 months at a time
    charter rate of $25,000 per day.(10)
    
    The SPARROW was previously on a time charter at a base rate of
    $24,000 per day for 11 to 13 months with a profit share of
    30% of up to the first $3,000 per day over the base rate. This
    charter ended in February 2008.(11)
    
    The TERN previously was on a time charter at a daily rate of
    $19,000. This charter ended in March 2008 and the charterer has
    exercised its option to extend the charter period by 11 to
    13 months at a time charter rate of $20,500 per day.(12)
    
    The charterer of the SHRIKE has exercised their option to extend
    the charter period by 12 to 14 months at a daily time
    charter rate of $25,600.(13)
    
    The charterer of the SKUA has exercised an option to extend the
    charter period by 11 to 13 months at a daily time charter
    rate of $25,200.(14)
    
    The KITTIWAKE is employed on a time charter for 11 to
    13 months. The charter rate may reset at the beginning of
    each month based on the average time charter rate for the Baltic
    Supramax Index, but in no case be greater than $30,400 per day
    or less than $24,400 per day. Upon conclusion of this charter in
    August 2008, the KITTIWAKE will commence a new time charter with
    a rate of $56,250 per day for 11 to 13 months.(15)
    
    The WREN has entered into a long-term charter. The charter rate
    until February 2012 is $24,750 per day. Subsequently, the
    charter until redelivery in December 2018 to April 2019 will be
    profit share based. The base charter rate will be $18,000 with a
    50% profit share for earned rates over $22,000 per day. Revenue
    recognition for the base rate from commencement of the charter
    is based on an average daily base rate of $20,306. 15




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##### Table of Contents



Year Built-




Daily TimeExpected


Time Charter

Charter HireVessel

Dwt


Delivery(1)


Expiration(2)

Rate(3)


Profit ShareWoodstar


53,100



Oct 2008


Jan 2014

$
18,300


Jan 2014 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Crowned Eagle


56,000



Nov 2008


Charter Free





Crested Eagle


56,000



Feb 2009


Charter Free





Stellar Eagle


56,000



Apr 2009


Charter Free





Thrush


53,100



Sep 2009


Charter Free





Bittern


58,000



Sep 2009


Dec 2014

$
18,850


Dec 2014 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Canary


58,000



Oct 2009


Jan 2015

$
18,850


Jan 2015 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Thrasher


53,100



Nov 2009


Feb 2016

$
18,400


Feb 2016 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Crane


58,000



Nov 2009


Feb 2015

$
18,850


Feb 2015 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Avocet


53,100



Dec 2009


Mar 2016

$
18,400


Mar 2016 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Egret(4)


58,000



Dec 2009


Sep 2012 to Jan 2013

$
17,650


50% over $20,000Golden Eagle


56,000



Jan 2010


Charter Free





Gannet(4)


58,000



Jan 2010


Oct 2012 to Feb 2013

$
17,650


50% over $20,000Imperial Eagle


56,000



Feb 2010


Charter Free





Grebe(4)


58,000



Feb 2010


Nov 2012 to Mar 2013

$
17,650


50% over $20,000Ibis(4)


58,000



Mar 2010


Dec 2012 to Apr 2013

$
17,650


50% over $20,000Jay


58,000



Apr 2010


Sep 2015

$
18,500


50% over $21,500Sep 2015 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Kingfisher


58,000



May 2010


Oct 2015

$
18,500


50% over $21,500Oct 2015 to Dec 2018/Apr 2019

$
18,000


50% over $22,000Martin


58,000



Jun 2010


Dec 2016 to Dec 2017

$
18,400


Besra(5)


58,000



Oct 2010


Charter Free





Cernicalo(5)


58,000



Jan 2011


Charter Free





Nighthawk


58,000



Mar 2011


Sep 2017 to Sep 2018

$
18,400


Oriole


58,000



Jul 2011


Jan 2018 to Jan 2019

$
18,400


Fulmar(5)


58,000



Jul 2011


Charter Free





Owl


58,000



Aug 2011


Feb 2018 to Feb 2019

$
18,400


Petrel(4)


58,000



Sep 2011


Jun 2014 to Oct 2014

$
17,650


50% over $20,000Goshawk(5)


58,000



Sep 2011


Charter Free





Puffin
    (4)


58,000



Oct 2011


Jul 2014 to Nov 2014

$
17,650


50% over $20,000Roadrunner
    (4)


58,000



Nov 2011


Aug 2014 to Dec 2014

$
17,650


50% over $20,000Sandpiper
    (4)


58,000



Dec 2011


Sep 2014 to Jan 2015

$
17,650


50% over $20,000Snipe(5)


58,000



Jan 2012


Charter Free





Swift
    (5)


58,000



Feb 2012


Charter Free





Raptor
    (5)


58,000



Mar 2012


Charter Free





Saker
    (5)


58,000



Apr 2012


Charter Free





  16




---



##### Table of Contents



(1)
    
    Vessel build and delivery dates are estimates based on guidance
    received from shipyard.(2)
    
    The date range represents the earliest and latest date on which
    the charterer may redeliver the vessel to the Company upon the
    termination of the charter.(3)
    
    The time charter hire rates presented are gross daily charter
    rates before brokerage commissions, ranging from 2.25% to 6.25%,
    to third party ship brokers. Revenue recognition for the long
    term charters with base rates will be based on an average daily
    base rate over the life of the charter from commencement of the
    charter.(4)
    
    The charterer has an option to extend the charter by two periods
    of 11 to 13 months each.(5)
    
    Options for construction exercised on December 27, 2007.  Fleet Management
    
    Strategic management.  We locate, obtain
    financing and insurance for, purchase and sell vessels.
    Commercial management.  We obtain employment
    for our vessels and manage our relationships with charterers.
    Technical management.  The technical manager
    performs day-to-day operations and maintenance of our vessels.  Commercial and Strategic Management
    
    commercial operations and technical supervision;
    safety monitoring;
    vessel acquisition; and
    financial, accounting and information technology services.  Technical Management
      Value
    of Assets and Cash Requirements
   17




---



##### Table of Contents



Critical
    Accounting Policies
    Form 10-K. Form 10-K
  Results
    of Operations for the three month periods ended June 30,
    2008 and 2007:
  Fleet
    Data
    Three Months Ended


Six Months EndedJune 30, 2008


June 30, 2007


June 30, 2008


June 30, 2007Ownership Days


1,656



1,447



3,294



2,854Available Days


1,617



1,438



3,255



2,833Operating Days


1,616



1,435



3,249



2,822Fleet Utilization


99.9
%


99.8
%


99.8
%


99.6
%   
    Ownership days:   We define ownership
    days as the aggregate number of days in a period during which
    each vessel in our fleet has been owned by us. Ownership days
    are an indicator of the size of our fleet over a period and
    affect both the amount of revenues and the amount of expenses
    that we record during a period. Ownership days for the three
    month period ended June 30, 2008 increased 14.4% from the
    corresponding period in 2007 as we operated 20 vessels in
    the second quarter of 2008 compared to 18 vessels in the
    corresponding period in 2007. Ownership days for the six month
    period ended June 30, 2008 increased 15.4% from the
    corresponding period in 2007 as we operated 20 vessels in
    the second quarter of 2008 compared to 18 vessels in the
    corresponding period in 2007, net of the sale of a vessel in the
    first quarter of 2007.
    Available days:   We define available
    days as the number of our ownership days less the aggregate
    number of days that our vessels are off-hire due to vessel
    familiarization upon acquisition, scheduled repairs or repairs
    under guarantee, vessel upgrades or special surveys and the
    aggregate amount of time that we spend positioning our vessels.
    The shipping industry uses available days to measure the number
    of days in a period during which vessels should be capable of
    generating revenues. During the three-month period ended
    June 30, 2008, the Company incurred a total of 39 days
    for drydocking 18




---



##### Table of Contents



two vessels and vessel familiarization upon delivery of Wren and
    Goldeneye which joined the fleet in June 2008. The Company did
    not incur any drydock or vessel familiarization days in the
    first quarter of 2008. During the same periods in 2007, the
    Company incurred a total of 21 days in drydocking one
    vessel and positioning a vessel for sale.  
    Operating days:   We define operating
    days as the number of our available days in a period less the
    aggregate number of days that our vessels are off-hire due to
    any reason, including unforeseen circumstances. The shipping
    industry uses operating days to measure the aggregate number of
    days in a period during which vessels actually generate revenues.
    Fleet utilization:   We calculate fleet
    utilization by dividing the number of our operating days during
    a period by the number of our available days during the period.
    The shipping industry uses fleet utilization to measure a
    companys efficiency in finding suitable employment for its
    vessels and minimizing the amount of days that its vessels are
    off-hire for reasons other than scheduled repairs or repairs
    under guarantee, vessel upgrades, special surveys or vessel
    positioning. Our fleet continues to perform at high utilization
    rates.  Revenues
        Vessel
    Expenses
       19




---



##### Table of Contents



Depreciation
    and Amortization
          General
    and Administrative Expenses
       20




---



##### Table of Contents



Capitalized
    Interest
    -
    EBITDA
      Three Months Ended


Six Months EndedJune 30, 2008


June 30, 2007


June 30, 2008


June 30, 2007Net Income

$
14,906,130


$
11,924,695


$
29,251,940


$
20,412,483Interest Expense


3,449,217



3,160,439



6,799,470



6,312,564Depreciation and Amortization


7,390,982



6,046,953



14,727,021



11,837,584Amortization of Prepaid and Deferred Revenue






1,080,000







2,160,000EBITDA


25,746,329



22,212,087



50,778,431



40,722,631Adjustments for Exceptional Items:Non-cash Compensation
    Expense(1)


2,056,240



124,356



4,571,943



3,383,579Credit Agreement EBITDA

$
27,802,569


$
22,336,443


$
55,350,374


$
44,106,210     (1)
    
    Stock based compensation related to stock options, restricted
    stock units, and managements participation in profits
    interests in Eagle Ventures LLC (see Notes to our financial
    statements).  Effects
    of Inflation
   21




---



##### Table of Contents



Liquidity
    and Capital Resources
            Revolving
    Credit Facility
  en bloc
 22




---



##### Table of Contents



Dividends
          Contractual
    Obligations
    Within


One to


Three to


More than(in thousands of U.S. dollars)

One Year


Three Years


Five Years


Five years


TotalVessels(1)

$
315,035


$
553,545


$
231,185






$
1,099,765Bank Loans













$
665,695



665,695Interest and borrowing
    fees(2)


39,977



79,954



80,064



160,019



360,014Office
    lease(3)


649



1,344



1,670



4,106



7,769Total

$
355,661


$
634,843


$
312,919


$
829,820


$
2,133,243     (1)
    
    The balance of the contract price in US dollars for the 34
    newbuilding vessels which are to be constructed and delivered
    between October 2008 and April 2012 and the balance of the
    contract price on the REDWING, which is to be delivered in
    September 2008.(2)
    
    The Company is a party to floating-to-fixed interest rate swaps
    covering an aggregate notional amount of $597,211,599 as of
    June 30, 2008 that effectively convert the Companys
    interest rate exposure from floating rates based on LIBOR to a
    fixed rates ranging from 3.895% to 5.24%, plus applicable
    margins. Interest and borrowing fees includes capitalized
    interest for the newbuilding vessels.(3)
    
    Remainder of the
    63-month
    lease on the office space which we occupy. 23




---



##### Table of Contents



Capital
    Expenditures
          Quarter Ending

Off-hire
    Days(1)


Projected
    Costs(2)September 30, 2008


88


$
2.00 millionDecember 31, 2008


22


$
0.50 millionMarch 31, 2009


22


$
0.50 millionJune 30, 2009


22


$
0.50 million     (1)
    
    While we estimate 22 days per vessel, actual duration of
    drydocking a vessel will vary based on the condition of the
    vessel, yard schedules and other factors.(2)
    
    Actual costs will vary based on various factors, including
    where the drydockings are actually performed.  Off-balance
    Sheet Arrangements
    ITEM 3.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Interest
    Rate Risk
  Form 10-K
    -
    Notional amount of $81,500,000 with a fixed interest rate of
    3.895% and maturity in January 2013-
    A forward interest rate swap contract for a notional amount of
    $84,800,000 of its outstanding debt which will commence upon the
    maturity in September 2009 of the existing swap for the notional
    amount of $84,800,000 of its outstanding debt. Under the forward
    swap, the Company will pay fixed 24




---



##### Table of Contents



rate interest of 3.90% and receive floating rate interest
    amounts based on three-month Libor settings, exclusive of
    applicable margin. The forward swap matures in September 2013.    Currency
    and Exchange Rates
  Form 10-K
  ITEM 4.
    CONTROLS
    AND PROCEDURES  Disclosure
    Controls and Procedures
  Rules 13a-15(e) 15d-15(e)
  Internal
    Control Over Financial Reporting
   25




---



##### Table of Contents



PART II:
    OTHER INFORMATION  ITEM 1 
    LEGAL
    PROCEEDINGS    ITEM 1A 
    RISK
    FACTORS  Form 10-K
  ITEM 2 
    UNREGISTERED
    SALES OF EQUITY SECURITIES AND USE OF PROCEEDS    ITEM 3 
    DEFAULTS
    UPON SENIOR SECURITIES    ITEM 4 
    SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS      Votes For


Votes AgainstDouglas P. Haensel


39,331,665



1,955,799Alexis P. Zoullas


39,326,725



1,960,739       BrokerVotes For


Votes Against


Abstentions


Non-VotesRatification of Ernst & Young LLP


41,053,842



186,430



47,192



     ITEM 5 
    OTHER
    INFORMATION   26




---



##### Table of Contents



ITEM 6 
    EXHIBITS  EXHIBIT INDEX
  3
.1

Amended and Restated Articles of Incorporation of the Company
    13
.2

Amended and Restated Bylaws of the Company
    13
.3

Certificate of Designation, Preferences and Rights of
    Series A Junior Participating Preferred Stock
    24
.1

Form of Share Certificate of the Company
    14
.2

Form of Senior Indenture
    34
.3

Form of Subordinated Indenture
    34
.4

Rights Agreement
    210
.1

Amended and Restated Employment Agreement of Mr. Sophocles
    N. Zoullas, dated as of June 19, 2008
    4,610
.2

Amendatory Agreement, dated as of July 3, 2008, among the
    Company and certain of its subsidiaries and the banks and
    financial institutions party thereto and the Royal Bank of
    Scotland plc, as mandated lead arranger
    531
.1

Rule 13a-14(d)
    / 15d-14(a) Certification of CEO31
.2

Rule 13a-14(d)
    / 15d-14(a) Certification of CFO32
.1

Section 1350 Certification of CEO32
.2

Section 1350 Certification of CFO     1
    
    Incorporated by reference to Amendment No. 4 to the
    Companys Registration Statement on
    Form S-1,
    Registration
    No. 333-123817,
    filed on June 22, 2005.2
    
    Incorporated by reference to the Companys Registration
    Statement on
    Form 8-A
    filed on November 13, 2007.3
    
    Incorporated by reference to the Companys Registration
    Statement on
    Form S-3,
    Registration
    No. 333-139745,
    filed on December 29, 2007.4
    
    Incorporated by reference to the Companys Current Report
    on
    Form 8-K
    filed on June 20, 2008.5
    
    Incorporated by reference to the Companys Current Report
    on
    Form 8-K
    filed on July 7, 2008.6
    
    Management contract or compensating plan. 27




---



##### Table of Contents



SIGNATURES    EAGLE BULK SHIPPING INC.
  By:
    /s/  Sophocles
    N. Zoullas        By:
    /s/  Alan
    S. Ginsberg       28