Star Bulk Carriers, a global shipping company focusing on the transportation of dry bulk cargoes, announced its unaudited financial and operating results for the fourth quarter of 2024 and the year ended December 31, 2024.
Financial Highlights
| (Expressed in thousands of U.S. dollars, except for daily rates and per share data) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||
| Voyage Revenues | $308,916 | $263,461 | $1,265,458 | $949,269 | |||||
| Net income | $42,446 | $39,707 | $304,654 | $173,556 | |||||
| Adjusted Net income (1) | $40,590 | $63,538 | $285,589 | $182,247 | |||||
| Net cash provided by operating activities | $76,298 | $88,604 | $471,154 | $335,777 | |||||
| EBITDA (2) | $106,218 | $93,163 | $547,045 | $376,948 | |||||
| Adjusted EBITDA (2) | $103,839 | $114,036 | $524,623 | $379,211 | |||||
| Earnings per share basic | $0.36 | $0.46 | $2.85 | $1.76 | |||||
| Earnings per share diluted | $0.36 | $0.45 | $2.80 | $1.75 | |||||
| Adjusted earnings per share basic (1) | $0.35 | $0.73 | $2.67 | $1.85 | |||||
| Adjusted earnings per share diluted (1) | $0.34 | $0.73 | $2.63 | $1.84 | |||||
| Dividend per share for the relevant period | $0.09 | $0.45 | $2.14 | $1.42 | |||||
| Average Number of Vessels | 153.1 | 117.8 | 144.3 | 123.3 | |||||
| TCE Revenues (3) | $216,753 | $191,928 | $931,526 | $686,096 | |||||
| Daily Time Charter Equivalent Rate (“TCE”) (3) | $16,129 | $18,296 | $18,392 | $15,824 | |||||
| Daily OPEX per vessel (4) | $5,164 | $4,991 | $5,209 | $4,919 | |||||
| Daily OPEX per vessel (as adjusted) (4) | $5,056 | $4,977 | $5,123 | $4,822 | |||||
| Daily Net Cash G&A expenses per vessel (excluding one-time expenses) (5) | $1,264 | $1,104 | $1,284 | $1,059 | |||||
(1) Adjusted Net income, Adjusted earnings per share basic and Adjusted earnings per share diluted are non-GAAP measures. Please see EXHIBIT I at the end of this release for a reconciliation to Net income and earnings per share, which are the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as for the definition of each measure.
(2) EBITDA and Adjusted EBITDA are non-GAAP liquidity measures. Please see EXHIBIT I at the end 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 U.S. GAAP, as well as for the definition of each measure. To derive Adjusted EBITDA from EBITDA, we exclude certain non-cash gains / (losses) and one-time expenses.
(3) Daily Time Charter Equivalent Rate (“TCE”) and TCE Revenues are non-GAAP measures. Please see EXHIBIT I at the end 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. The definition of each measure is provided in footnote (7) to the Summary of Selected Data table below.
(4) Daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days (defined below). Daily OPEX per vessel (as adjusted) is calculated by dividing vessel operating expenses excluding increased costs due to the COVID-19 pandemic or pre-delivery expenses for each vessel on acquisition or change of management, if any, by Ownership days. In the future we may incur expenses that are the same as or similar to certain expenses (as described above) that were previously excluded.
(5) Daily Net Cash G&A expenses per vessel is calculated by (1) adding the Management fee expense to the General and Administrative expenses, net of share-based compensation expense and other non-cash charges and one-time expenses and (2) then dividing the result by the sum of Ownership days and Charter-in days (defined below). Please see EXHIBIT I at the end of this release for a reconciliation to General and administrative expenses, 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 reported for the fourth quarter of 2024 Net Income of $42.4 million, TCE Revenues of $216.8 million and EBITDA of $106.2 million.
Recently, we announced an amended dividend policy alongside a new $100.0 million share repurchase authorization. Under this policy, the Company may allocate up to 60% of excess cash flow towards dividends, with the remainder reserved for opportunistic share buybacks, growth initiatives and fleet renewal. For this quarter, excess cash flow amounted to $17.6 million. Our Board of Directors has approved a dividend distribution of $0.09 per share, and we spent over $7.4 million to repurchase 500,000 shares in January. Overall, we have repurchased approximately 900,000 shares since the renewal of our share repurchase program.
On the operational front, we have made significant progress in integrating systems and processes, creating a best-in-class ship-owning and management platform that combines the strengths of both Star Bulk and ex-Eagle Bulk. Delivering on our commitment to synergies, we have cumulatively reduced costs by $21.8 million since April 2024. Notably, this quarter alone, we achieved $12.6 million in cost reductions—equivalent to an annualized run rate of over $50.0 million—an important milestone reached ahead of schedule.
From a financing perspective, we continue to benefit from strong interest by major financial institutions in lending to Star Bulk. We have successfully raised new debt and refinanced existing facilities on highly attractive terms, reducing costs while extending maturities.
As environmental regulations become increasingly stringent, Star Bulk continues to invest in technology, expertise and personnel both to comply with new EU environmental regulations and prepare for upcoming global mandates.
Looking ahead, while the first quarter is traditionally weaker and geopolitical uncertainties persist, we remain cautiously optimistic about the medium-term outlook for the dry bulk market. The orderbook remains low, with limited incentive for new vessel orders given current pricing and market conditions, despite an aging global fleet. With our strong balance sheet, scale, and deep industry expertise, Star Bulk is well positioned to capitalize on future opportunities and continue delivering value to our shareholders.”