Financial Highlights
| (Expressed in thousands of U.S. dollars, except for daily rates and per share data) |
Fourth quarter 2016 | Fourth quarter 2015 | Twelve months ended December 31, 2016 |
Twelve months ended December 31, 2015 |
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| Total Revenues | $ | 63,241 | $ | 64,154 | $ | 222,106 | $ | 234,286 | ||||||||
| Net income/(loss) | $ | (32,742 | ) | $ | (311,007 | ) | $ | (153,845 | ) | $ | (458,177 | ) | ||||
| EBITDA (1) | $ | (2,913 | ) | $ | (281,907 | ) | $ | (26,899 | ) | $ | (333,776 | ) | ||||
| Adjusted EBITDA (1) | $ | 15,605 | $ | 6,623 | $ | 21,794 | $ | 13,375 | ||||||||
| Adjusted Net income / (loss) (2) | $ | (16,201 | ) | $ | (24,475 | ) | $ | (104,960 | ) | $ | (101,599 | ) | ||||
| Earnings / (loss) per share basic and diluted | $ | (0.58 | ) | $ | (7.10 | ) | $ | (3.23 | ) | $ | (11.71 | ) | ||||
| Adjusted earnings / (loss) per share basic and diluted (2) | $ | (0.29 | ) | $ | (0.56 | ) | $ | (2.21 | ) | $ | (2.60 | ) | ||||
| Average Number of Vessels | 67.8 | 70.1 | 69.8 | 69.1 | ||||||||||||
| Voyage revenues | $ | 63,241 | $ | 64,108 | $ | 221,987 | $ | 234,035 | ||||||||
| Daily Time Charter Equivalent Rate (“TCE”) (3) | $ | 8,202 | $ | 6,897 | $ | 6,260 | $ | 7,052 | ||||||||
| Fleet utilization (3) | 98.0 | % | 97.7 | % | 96.5 | % | 95.6 | % | ||||||||
| Average daily OPEX per vessel (excluding pre-delivery expenses) | $ | 4,043 | $ | 3,966 | $ | 3,801 | $ | 4,233 | ||||||||
| (1) | EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the table at the back of this release for a reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by / (Used in) Operating Activities, which is the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). To derive Adjusted EBITDA we exclude non-cash gains / (losses) other than depreciation and non-recurring items. | ||
| (2) | Adjusted Net income / (loss) is a non-GAAP measure. Please see the table at the back of this release for a reconciliation to Net income / (loss), which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. | ||
| (3) | Daily Time Charter Equivalent Rate (“TCE”) is a non-GAAP measure. Starting with the fourth quarter of 2016, we now calculate the TCE rate by dividing net voyage revenues by available days. We believe the revised method will better reflect the chartering mix of our larger fleet and is more comparable to the method used by our peers. Corresponding change also applied in the calculation of the fleet utilization. Both changes have been applied retrospectively for all periods presented herein.Please see the table at the back of this release for a reconciliation to Voyage Revenues, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. |
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk announced today its fourth quarter and year end 2016 financial results, reporting $50.9 million in Net TCE Revenues and $15.6 million in Adjusted EBITDA during the fourth quarter of 2016, implying a free cash flow of $6.1 million from our operating fleet.
The cash flow – positive performance of our fleet resulted from an improved freight market in the last quarter of 2016 relative to the previous quarter and zero bank debt principal repayments following the restructuring agreement with our lenders announced in September 2016.
For the fourth quarter of 2016, our average TCE per vessel was $8,202/day, increased by 18.9% y-o-y while our average utilization was 98.0%. For the fourth quarter our average OPEX and average net cash G&A expenses per vessel were $4,043/day and $1,005/day respectively. Our full year 2016 average OPEX per vessel was $3,801/day, while we rank among the top 3 dry bulk operators in Rightship vessel condition ratings. One of our main objectives for 2017 is to maintain such low break-even levels without compromising the level of maintenance on our vessels.
Amidst the weakest dry bulk market of the last 3 decades, we have taken all appropriate measures to ensure our company’s liquidity through this cycle. The proceeds from the recent $51.5 million private placement of common shares bring our total cash to approximately $250 million.”
Recent Developments
Private Placement of $51.5 million
On February 2, 2017, we sold, in a private placement, an aggregate of 6,310,272 of our common shares, at a purchase price of $8.154 per share to affiliates of Oaktree Capital Management, L.P. (“Oaktree”) and Senator Investment Group LP (“Senator”) for an aggregate of approximately $51.5 million in gross proceeds. Following the completion of this transaction and as of February 22, 2017, we had 63,071,629 common shares outstanding. We intend to use the proceeds of the private placement for general corporate purposes.
Employment update
During the fourth quarter of 2016 and January 2017, we concluded the following 16 medium to long term fixtures:
- Leviathan, a 182,511 dwt Capesize vessel at $12,000/day for a period of approximately 15 to 17 months
- Peloreus, a 182,496 dwt Capesize vessel at $12,000/day for a period of approximately 13 to 15 months
- Big Fish, a 177,662 dwt Capesize vessel at $9,125/day for a period of approximately 13 to 15 months
- Madredeus, a 98,681 dwt] Post-Panamax vessel at $8,250/day for a period of approximately 4 to 7 months
- Star Angelina, a 82,981 dwt Kamsarmax vessel at $7,500/day for a period of approximately 4 to 7 months
- Star Gwyneth, a 82,790 dwt Kamsarmax vessel at $8,750/day for a period of approximately 9 to 11 months
- Star Mariella, a 82,266 dwt Kamsarmax vessel at $9,150/day for a period of approximately 5 to 7 months
- Star Moira, a 82,257 dwt Kamsarmax vessel at $8,000/day for a period of approximately 9 to 11 months
- Star Laura, a 82,209 dwt Kamsarmax vessel at $7,450/day for a period of approximately 5 to 8 months
- Star Helena, a 82,187 dwt Kamsarmax vessel at $8,500/day for a period of approximately 4 to 6 months
- Mercurial Virgo, a 81,545 dwt Capesize vessel at $8,750/day for a period of approximately 9 to 11 months
- Laura, a 63,399 dwt Ultramax vessel at $8,250/day for a period of approximately 6 to 9 months
- Star Fighter, a 61,455 dwt Ultramax vessel at $11,650/day for a period of approximately 4 to 6 months
- Wolverine, a 61,292 dwt Ultramax vessel at $7,500/day for a period of approximately 5 to 7 months
- Star Pisces, a 60,916 dwt Ultramax vessel at $8,800/day for a period of approximately 6 to 8 months
- Strange Attractor, a 55,742 dwt Supramax vessel at $7,000/day for a period of approximately 4 to 6 months
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