Star Bulk Carriers Corp. Announces Change in Policy of Accounting for Vessel Drydocking Costs
ATHENS, GREECE--(Marketwire - May 13, 2008) - Star Bulk Carriers Corp. (the "Company")
(NASDAQ: SBLK) announced today that starting with its fiscal first quarter
ended March 31, 2008, it has elected to change its policy for accounting
for vessel drydocking costs from the deferral method, under which the
Company deferred and amortized its drydocking costs over the estimated
period of benefit between drydockings, to the direct expense method, under
which the Company expenses all drydocking costs as incurred.
There have been no drydocking costs that the Company has incurred prior to
the first quarter of 2008, therefore, there will be no impact on the
Company's prior financial statements as a result of the adoption of this
change in policy. The Company believes that the new direct expensing method
eliminates the significant amount of subjectivity that is needed to
determine which costs and activities related to drydocking should be
deferred. The first effect of this change in accounting policy will appear
in the Company's results for the quarter ended March 31, 2008. This change
in accounting policy will not impact the Company's dividend distributions
per share, given that the Company has a fixed dividend policy.
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne
transportation solutions in the dry bulk sector. Star Bulk's vessels
transport major bulks, which include iron ore, coal and grain and minor
bulks such as bauxite, fertilizers and steel products. Star Bulk was
incorporated in the Marshall Islands on December 13, 2006 and is
headquartered in Athens, Greece. Its common stock and warrants trade on the
NASDAQ Global Market under the symbols "SBLK" and "SBLKW" respectively.
Currently, Star Bulk has an operating fleet of eleven dry bulk carriers,
plus definitive agreement to sell its Panamax dry bulk carrier. The total
fleet consists of three Capesize, one Panamax and seven Supramax dry bulk
vessels with an average age of approximately 10 years and a combined cargo
carrying capacity of 981,648 deadweight tons.
The information in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include, but are not limited to,
statements regarding: (1) the delivery and operation of assets of Star
Bulk; (2) Star Bulk's future operating or financial results; (3) future,
pending or recent acquisitions, business strategy, areas of possible
expansion, and expected capital spending or operating expenses; (4) drybulk
market trends, including charter rates and factors affecting vessel supply
and demand; and (5) other statements identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend," "will,"
"should," "may," or words of similar meaning.
Such forward-looking statements are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including without
limitation, Star Bulk's examination of historical operating trends, data
contained in their records and other data available from third parties.
Although Star Bulk believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to
predict and are beyond their control, Star Bulk cannot assure you that Star
Bulk will achieve or accomplish these expectations, beliefs or projections.
Important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements include the failure of a
seller to deliver one or more vessels, the strength of world economies and
currencies, general market conditions, including changes in charterhire
rates and vessel values, changes in demand that may affect attitudes of
time charterers to scheduled and unscheduled drydocking, changes in Star
Bulk's operating expenses, including bunker prices, drydocking and
insurance costs, or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and international
political conditions, potential disruption of shipping routes due to
accidents and political events or acts by terrorists. Additional factors
that could cause Star Bulk's results to differ materially from those
described in the forward-looking statements can be found in Star Bulk's
Registration Statement on Form F-1/F-4 and reports on Form 6-K filed with
the Securities and Exchange Commission (the "SEC") and available at the
SEC's Internet site (http://www.sec.gov). The information set forth herein
speaks only as of the date hereof, and Star Bulk disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Contact Information: Contacts:
Chief Financial Officer
Star Bulk Carriers Corp.
Aethrion Center, Suite B-34
40 Ag. Konstantinou
Investor Relations / Financial Media:
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566