Star Bulk Carriers Q1 adjusted loss per share $0.21

Star Bulk

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.”

Recent Developments

Vessel deliveries

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.

Employment update

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.

 

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