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ATHENS, Greece, May 14, 2025 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the first quarter of 2025 and the amendment of its dividend policy to pay a minimum quarterly dividend of $0.05 per share. Unless otherwise indicated or unless the context requires otherwise, all references in this press release to "we," "us," "our," or similar references, mean Star Bulk Carriers Corp. and, where applicable, its consolidated subsidiaries.
Financial Highlights
| (Expressed in thousands of U.S. dollars, except for daily rates and per share data) | |||||
| First quarter 2025 | First quarter 2024 | ||||
| Voyage Revenues | $230,650 | $259,390 | |||
| Net income | $462 | $74,856 | |||
| Adjusted Net (loss) / income (1) | ($7,738 | ) | $73,239 | ||
| Net cash provided by operating activities | $48,508 | $114,262 | |||
| EBITDA (2) | $57,992 | $126,336 | |||
| Adjusted EBITDA (2) | $48,970 | $122,965 | |||
| Earnings per share basic and diluted | $0.00 | $0.89 | |||
| Adjusted (loss) / earnings per share basic and diluted (1) | ($0.07 | ) | $0.87 | ||
| Dividend per share for the relevant period | $0.05 | $0.75 | |||
| Average Number of Vessels | 150.7 | 113.3 | |||
| TCE Revenues (3) | $159,278 | $195,664 | |||
| Daily Time Charter Equivalent Rate ("TCE") (3) | $12,439 | $19,627 | |||
| Daily OPEX per vessel (4) | $5,008 | $4,962 | |||
| Daily OPEX per vessel (as adjusted) (4) | $4,898 | $4,962 | |||
| Daily Net Cash G&A expenses per vessel (5) | $1,319 | $1,223 | |||
| (1) | Adjusted Net (loss) / income, Adjusted (loss) / earnings per share basic and 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 basic and diluted, 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). |
| (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 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 (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:
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"Despite the seasonal market weakness during the first quarter 2025, Star Bulk remained in the black with Net Income of $0.5 million, EBITDA of $58.0 million and TCE per vessel per day of $12,439.
Our disciplined capital allocation strategy continues to prioritize shareholder value by combining dividends and share buybacks. The Board declared a $0.05 per share dividend, marking our 17th consecutive quarter of capital returns, totaling ~$1.35 billion to date. Using vessel sales proceeds at net asset value, we repurchased approximately 1.3 million shares, at prices significantly below net asset value, capitalizing on recent market dislocations to enhance shareholder returns. Going forward, we plan to remain committed to this strategy.
On the S&P front, we continue to selectively dispose of older and smaller tonnage that does not fit our commercial profile, having agreed to sell an additional five Supramax vessels. Operationally, we significantly surpassed our $50.0 million cost and revenue synergy target, delivering meaningful cost savings to our shareholders.
With over $500.0 million in liquidity, net debt below scrap value and 13 unencumbered vessels, we believe we are well-positioned to seize opportunities in the dry bulk market. Despite the global market volatility, and the uncertain effect of tariffs on global economic growth and trade, we are constructive about the medium/longer-term prospects of our industry, supported by a favorable order book and the IMO's recent decision to implement global market-based measures to reduce GHG emissions, a decision that will effectively reduce supply of tonnage.”
Recent Developments
Declaration of Dividend
On May 14, 2025, our Board of Directors decided to amend our previously approved Dividend Policy. Under the new Dividend Policy, Star Bulk will pay a minimum quarterly dividend of $0.05 per share going forward. The policy otherwise remains unchanged. On the same date, our Board of Directors declared a quarterly cash dividend of $0.05 per share, payable on or about June 20, 2025 to all shareholders of record as of June 6, 2025.
Share Repurchase Program & Shares Outstanding Update
During the first quarter of 2025, we repurchased 1,281,558 common shares, in open market transactions at an average price of $15.24 per share for an aggregate consideration, including commissions, of $19.6 million.
As of the date of this release, we have 116,781,423 shares outstanding and $74.4 million outstanding under our share repurchase program of up to an aggregate of $100.0 million.
Fleet Update
Vessels' S&P
The sale of the vessel Bittern, as previously announced, was completed on May 6, 2025 when the vessel was delivered to its new owners. In February 2025, we agreed to sell the vessels Star Omicron and Strange Attractor, which were delivered to their new owners in March 2025 and April 2025, respectively. In addition, in April 2025 and May 2025, we agreed to sell the vessels Puffin Bulker, Star Canary and Star Petrel, with the first two vessels expected to be delivered to their new owners within the second quarter of 2025 and the third vessel expected to be delivered in July 2025.
Financing
In February 2025, as previously announced, we prepaid the outstanding amount of $7.8 million under the SEB $39.0 million facility and we terminated the respective interest rate swap agreements with Skandinaviska Enskilda Banken AB.
In March 2025, we signed the Fubon $43.0 million facility, as previously announced, and an amount of $43.0 million was drawn on March 26, 2025.
In April 2025, we signed the loan agreement with E.SUN for a loan amount of up to $130.0 million (the "ESUN $130.0 million Facility”) for the post-delivery financing of the five Kamsarmax vessels currently under construction.
During the first quarter of 2025, in connection with the sale of the vessels Bittern and Star Omicron, we prepaid an aggregate amount of $8.6 million under their respective loan facilities. In addition, in April 2025 and in May 2025, in connection with the sale of the vessels Strange Attractor and Puffin Bulker, we prepaid an aggregate amount of $8.6 million under the vessels' loan facilities. During the second quarter of 2025, we expect to make a debt prepayment of approximately $9.7 million under the vessels Star Canary and Star Petrel loan facilities.
Following the completion of all vessel sales described above, we will have 13 unencumbered vessels. We expect to collect total net proceeds of approximately $44.4 million and $12.5 million during the second and third quarter of 2025, respectively.
Interest Rate Swaps
Following a number of interest rate swaps we have entered into, we currently have an outstanding total notional amount of $36.8 million under our financing agreements with an average fixed rate of 56 bps and an average remaining maturity of 1.0 year. As of March 31, 2025, the Mark-to-Market value of our outstanding interest rate swaps stood at $1.2 million, and our cumulative net realized gain amounted to $39.6 million.
Vessel Employment Overview
Time Charter Equivalent Rate ("TCE rate”) is a non-GAAP measure. 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.
For the first quarter of 2025 our TCE rate per main vessel category was as follows:
| Capesize / Newcastlemax Vessels: | $ | 20,245 | ||
| Post Panamax / Kamsarmax / Panamax Vessels: | $ | 10,193 | ||
| Ultramax / Supramax Vessels: | $ | 10,596 | ||
Amounts shown throughout the press release and variations in period-over-period comparisons are derived from the actual unaudited numbers in our books and records. Reference to per share figures below are based on 117,431,435 and 84,177,253 weighted average diluted shares for the first quarter of 2025 and 2024, respectively.
First Quarter 2025 and 2024 Results
For the first quarter of 2025, we had net income of $0.5 million, or $0.00 earnings per share, compared to net income for the first quarter of 2024 of $74.9 million, or $0.89 earnings per share. Adjusted net loss, which excludes certain non-cash items, was $7.7 million, or $0.07 adjusted loss per share, for the first quarter of 2025, compared to an adjusted net income of $73.2 million for the first quarter of 2024, or $0.87 adjusted earnings per share.
Net cash provided by operating activities for the first quarter of 2025 was $48.5 million, compared to $114.3 million for the first quarter of 2024. Adjusted EBITDA, which excludes certain non-cash items, was $49.0 million for the first quarter of 2025, compared to $123.0 million for the first quarter of 2024.
Voyage revenues for the first quarter of 2025 decreased to $230.7 million from $259.4 million in the first quarter of 2024 and Time charter equivalent revenues ("TCE Revenues”)1 decreased to $159.3 million for the first quarter of 2025, compared to $195.7 million for the first quarter of 2024. The decrease in both Voyage revenues and TCE Revenues, despite the increase in the average number of vessels in our fleet to 150.7 from 113.3 during the relevant periods, is attributable to the significant decrease in charter rates. TCE rate for the first quarter of 2025 was $12,439 per day compared to $19,627 per day for the first quarter of 2024 which is indicative of the weaker market conditions prevailing during the recent quarter.
Charter-in hire expenses for the first quarter of 2025 increased to $15.9 million compared to $3.9 million in the first quarter of 2024. The increase is mainly attributable to the increase in charter-in days to 1,072 in the first quarter of 2025 from 271 in the corresponding period in 2024, following the delivery of all six newbuilding vessels under long-term charter-in agreements during 2024.
Vessel operating expenses for the first quarter of 2025 increased to $67.9 million from $51.2 million in the first quarter of 2024, primarily due to the increase in the average number of vessels in our fleet to 150.7 from 113.3, as a result of the Eagle Merger. Daily operating expenses per vessel, excluding pre-delivery expenses due to change of management of $1.5 million amounted to $4,898 for the first quarter of 2025 compared to $4,962 for the corresponding period of 2024 (where no pre-delivery expenses occurred). The almost same levels of daily operating expenses per vessel excluding pre-delivery expenses for the first quarters of 2025 and 2024, reflects our successful efforts to normalize the operating expenses of the legacy Eagle fleet to near pre-merger levels, approximately four quarters after the completion of the Eagle Merger.
Dry docking expenses for the first quarters of 2025 and 2024 were $24.7 million and $10.0 million, respectively. During the first quarter of 2025, 14 vessels completed their periodic dry docking surveys, while during the corresponding period in 2024, five vessels completed their periodic dry docking surveys. In addition, six vessels commenced their dry docking surveys in the first quarter of 2025 compared to one vessel which commenced its dry docking survey during the corresponding period in 2024, resulting in an overall increase in dry docking expenses.
General and administrative expenses for the first quarters of 2025 and 2024 were $15.3 million and $10.7 million, respectively, which included share-based compensation of $1.6 million and $2.2 million, respectively. Vessel management fees in the first quarter of 2025 increased to $5.6 million compared to $4.4 million for the corresponding period in 2024. Our daily net cash general and administrative expenses per vessel (including management fees and excluding share-based compensation and other non-cash charges) for the first quarter of 2025 amounted to $1,319 compared to $1,223 in the first quarter of 2024. We expect that our daily net cash G&A expenses will improve further during the following quarters as a result of synergies from the Eagle Merger.
Depreciation expense increased to $43.0 million for the first quarter of 2025 compared to $32.0 million for the corresponding period in 2024. The increase is primarily driven by the increase in the average number of vessels in our fleet, as discussed above.
Our results for the first quarter of 2025 include a loss from sale of vessels of $0.7 million, mainly in connection with the completion of the vessel Star Omicron sale, as described above under the section "Fleet Update”. During the first quarter of 2024, we recognized an aggregate net gain of $8.8 million which resulted from the completion of four vessel sales.
During the first quarter of 2025, we recognized a gain on forward freight agreements ("FFAs”) and bunker swaps of $2.9 million, consisting of an unrealized gain of $2.1 million and a realized gain of $0.8 million. During the first quarter of 2024, we incurred a loss on FFAs and bunker swaps of $5.9 million, consisting of an unrealized loss of $3.2 million and a realized loss of $2.7 million.
Other operational gain for the first quarter of 2025 amounted to $12.0 million, mainly consisting of $2.3 million insurance proceeds pursuant to war risk insurance policy in connection with the prolonged detainment of one of our vessels in Ukraine in 2022 and $9.3 million related to the write-off of previously recorded accruals and liabilities that are no longer expected to require settlement. Other operational gain for the first quarter of 2024 amounted to $1.6 million and primarily derived from various insurance claims.
Interest income and other income/(loss) for the first quarters of 2025 and 2024 amounted to $4.7 million and $2.5 million, respectively. The increase is primarily attributable to a realized foreign exchange gain of $0.9 million resulting from the weakening of the Euro/USD exchange rate during the first quarter of 2025, compared to a foreign exchange loss of $0.7 million in the corresponding period of 2024 and to the higher interest earned in the first quarter of 2025, due to higher cash balances maintained, compared to the corresponding period in 2024.
Unaudited Consolidated Income Statements
| (Expressed in thousands of U.S. dollars except for share and per share data) | First quarter 2025 | First quarter 2024 | ||||||
| Revenues: | ||||||||
| Voyage revenues | $ | 230,650 | $ | 259,390 | ||||
| Total revenues | 230,650 | 259,390 | ||||||
| Expenses: | ||||||||
| Voyage expenses | (56,318 | ) | (57,094 | ) | ||||
| Charter-in hire expenses | (15,900 | ) | (3,926 | ) | ||||
| Vessel operating expenses | (67,942 | ) | (51,172 | ) | ||||
| Dry docking expenses | (24,677 | ) | (10,021 | ) | ||||
| Depreciation | (42,954 | ) | (31,990 | ) | ||||
| Management fees | (5,600 | ) | (4,404 | ) | ||||
| General and administrative expenses | (15,261 | ) | (10,695 | ) | ||||
| Gain/(Loss) on forward freight agreements and bunker swaps, net | 2,930 | (5,921 | ) | |||||
| Other operational loss | (1,156 | ) | (181 | ) | ||||
| Other operational gain | 12,037 | 1,617 | ||||||
| Gain/(Loss) on sale of vessels | (740 | ) | 8,769 | |||||
| Operating income | 15,069 | 94,372 | ||||||
| Interest and finance costs | (19,275 | ) | (20,499 | ) | ||||
| Interest income and other income/(loss) | 4,712 | 2,526 | ||||||
| Gain/(Loss) on derivative financial instruments, net | 52 | (810 | ) | |||||
| Gain/(Loss) on debt extinguishment, net | (65 | ) | (813 | ) | ||||
| Total other expenses, net | (14,576 | ) | (19,596 | ) | ||||
| Income before taxes and equity in income/(loss) of investee | $ | 493 | $ | 74,776 | ||||
| Income tax (expense)/refund | - | 106 | ||||||
| Income before equity in income/(loss) of investee | 493 | 74,882 | ||||||
| Equity in income/(loss) of investee | (31 | ) | (26 | ) | ||||
| Net income | $ | 462 | $ | 74,856 | ||||
| Earnings per share, basic and diluted | $ | 0.00 | $ | 0.89 | ||||
| Weighted average number of shares outstanding, basic | 117,210,036 | 83,835,611 | ||||||
| Weighted average number of shares outstanding, diluted | 117,431,435 | 84,177,253 | ||||||
Unaudited Consolidated Condensed Balance Sheet Data
| (Expressed in thousands of U.S. dollars) | |||||||
| ASSETS | March 31, 2025 | December 31, 2024 | |||||
| Cash and cash equivalents and resticted cash, current | $ | 432,237 | 436,284 | ||||
| Other current assets | 208,157 | 222,689 | |||||
| TOTAL CURRENT ASSETS | 640,394 | 658,973 | |||||
| Advances for vessels under construction | 28,491 | 27,526 | |||||
| Vessels
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