Star Bulk Carriers, a global shipping company focusing on the transportation of dry bulk cargoes, announced its unaudited financial and operating results for the first quarter ended March 31, 2017.
The shipping company reported ($0.21) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.25) by $0.04. The firm had revenue of $64.87 million for the quarter, compared to analyst estimates of $64.27 million. Star Bulk Carriers Corp. had a negative return on equity of 10.82% and a negative net margin of 193.75%.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk announced today its first quarter 2017 financial results, reporting $49.9 million in Net TCE Revenues, $18.1 million in Adjusted EBITDA, $6.1 million in operating cash flow and $3.7 million in free cash flow.
For the first quarter of 2017, our average TCE per vessel was $8,176/day, while our average utilization was 99.2%. We have also fixed approximately 81% of our available days in the 2nd quarter of 2017 at an average TCE of $10,150/day. Given our Q1 2017 average OPEX and net cash G&A expenses per vessel, adjusted for pre-delivery expenses and one-time restructuring costs of $3,949/day and $1,133/day respectively, we have an EBITDA of $18.1 million, compared to an EBITDA figure of -$7.3 million in Q1 2016. Furthermore, we remain committed to high quality and safety standards in operating our fleet, as evidenced by our continued presence among the top 3 dry bulk operators in Rightship vessel condition ratings.
We are also pleased to have successfully taken delivery of the 2 modern Kamsarmaxes acquired in early March of 2017 at competitive prices, especially against the backdrop of a continuous improvement in the dry bulk market this year. The commitment from a major lending institution to provide $16.0 million financing for those two vessels, demonstrates the continuous support of our lenders to the company.”
On March 23, 2017 and May 15, 2017, we took delivery of M/V Star Charis and M/V Star Suzanna, respectively, two Kamsarmax vessels with carrying capacity of 81,711 deadweight tons each, built with high specifications at Jiangsu New Yangzijiang in 2013. On May 23, 2017, we executed a binding term-sheet with ABN AMRO N.V., in order to partially finance the two Kamsarmax vessels Star Charis and Star Suzanna, up to an amount of $16.0 million in aggregate.
During the 1st quarter and until May 2017 we concluded the following medium to long term fixtures:
Star Ariadne, a 207,812 dwt Newcastlemax vessel which participates in a pool, at $19,550/day for a period of approximately 12 to 15 months, commencing from April 2017.
Star Virgo, a 207,810 dwt Newcastlemax vessel at an index linked time charter based on the Capesize 5 TC index plus 32%, for a period of approximately 12 to 15 months, commencing from January 2017.
Star Martha, a 180,274 dwt Capesize vessel at $15,750/day for a period of approximately 11 to 14 months, commencing from March 2017.
Star Fighter, a 61,455 dwt Ultramax vessel, at $10,750/day for a period of approximately 5 to 7 months, commencing from April 2017.
Star Antares, a 61,258 dwt Ultramax vessel, at $9,900/day for a period of approximately 4 to 6 months, commencing from March 2017.
Astakos, a 58,722 dwt Supramax vessel at $10,900/day for a period of approximately 5 to 7 months, commencing from March 2017.
Star Theta, a 52,425 dwt Supramax vessel, at $10,000/day for a period of approximately 4 to 6 months, commencing from March 2017.
Star Kappa, a 52,055 dwt Supramax vessel at $9,000/day for a period of approximately 10 to 12 months, commencing from March 2017.