ATHENS, Greece, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq and Oslo: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the fourth quarter and year ended December 31, 2018.
Financial Highlights
(Expressed in thousands of U.S. dollars, except for daily rates and per share data) | |||||||||||||
Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | ||||||||||
Voyage Revenues | $209,433 | $107,707 | $651,561 | $331,976 | |||||||||
Net income/(loss) | $12,315 | $23,884 | $58,997 | ($9,771 | ) | ||||||||
Net cash provided by operating activities | $59,836 | $44,329 | $169,009 | $82,804 | |||||||||
EBITDA (1) | $63,575 | $58,378 | $233,015 | $121,508 | |||||||||
Adjusted EBITDA (1) | $82,379 | $55,690 | $260,887 | $128,048 | |||||||||
Adjusted Net income / (loss) (2) | $30,316 | $21,535 | $86,098 | ($4,301 | ) | ||||||||
Earnings / (loss) per share basic | $0.13 | $0.37 | $0.77 | ($0.16 | ) | ||||||||
Adjusted earnings / (loss) per share basic (2) | $0.33 | $0.34 | $1.12 | ($0.07 | ) | ||||||||
TCE Revenues (3) | $137,800 | $90,019 | $437,069 | $262,661 | |||||||||
Daily Time Charter Equivalent Rate ("TCE") (3) | $14,140 | $13,860 | $13,768 | $10,393 | |||||||||
Fleet utilization | 98.6 | % | 100.0 | % | 99.0 | % | 99.6 | % | |||||
Average daily OPEX per vessel (4) | $3,938 | $3,911 | $4,027 | $3,995 | |||||||||
Average daily OPEX per vessel (excl. pre-delivery expenses) (4) | $3,938 | $3,850 | $3,994 | $3,906 | |||||||||
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (5) | $969 | $1,094 | $1,004 | $1,094 | |||||||||
Petros Pappas, Chief Executive Officer of Star Bulk, commented: “This is our fifth consecutive profitable quarter, as we achieved $12.3 million Net Income. This figure also includes a non-cash charge of $17.8 million, related to impairment for realized as well as expected vessel sales in 2019, which if excluded, brings our Adjusted Net Income to $30.3 million. Our voyage revenues for the fourth quarter of 2018 amount to $209.4 million, our average TCE for the quarter is $14,140/day per vessel, while average OPEX per vessel are $3,938/day and average Net Cash G&A expenses per vessel are $969/day, given our continuous focus to keep costs low.
On a yearly basis we realized Net Income of $59.0 million and Adjusted Net Income of $86.1 million. Our voyage revenues for the year amount to $651.6 million, our average TCE is $13,768/day per vessel, while average OPEX per vessel (excl. pre-delivery expenses) are $3,994/day and average Net Cash G&A expenses per vessel are $1,004/day.
As of today, we have fixed a minimum of 70% of Q1 2019 days at average TCE rates of $12,954 per day.
During this quarter, we concluded the refinancing of loans of approximately $248 million with new debt with an average margin of 120 bps lower than the debt that we refinanced. We remain committed to refinancing debt at lower interest costs when such opportunities arise. We have also committed financing for the procurement and installation of scrubbers, of approximately $140 million, to be drawn during the rollout of our program in 2019. Maintaining a large cash balance remains a top priority for us.
We are currently completing the installation of scrubbers on 15 of our larger vessels enabling us to have the vast majority of our fleet fitted with scrubbers ahead of the January 1st 2020 implementation date.”
Recent Developments
DEBT FINANCING UPDATE
VESSEL DELIVERIES’ UPDATE
UPDATED SHARE COUNT
During the fourth quarter of 2018, we repurchased 341,363 of our common shares in open market transactions at an average price of $9.17 for aggregate consideration of $3.1 million, pursuant to the previously announced share repurchase program. All the repurchased shares were canceled and removed from our share capital on January 3, 2019. Following the deliveries of the last two vessels purchased from E.R. Capital Holding GmbH & Cie. KG and the cancelation of the repurchased shares, we have 93,285,322 common shares issued and outstanding as of the date of this release.
Employment update
As of today, we have fixed employment for approximately 70% of the days in Q1 2019 at average TCE rates of $12,954 per day.
More specifically:
Capesize / Newcastlemax Vessels: approximately 68% of Q1 2019 days at $16,223 per day.
Post Panamax / Kamsarmax / Panamax Vessels: approximately 69% of Q1 2019 days at $11,792 per day.
Ultramax / Supramax Vessels: approximately 75% of Q1 2019 days at $11,306 per day.
Existing On the Water Fleet (As of February 11, 2019)
Vessel Name | Vessel Type | Capacity (dwt.) | Year Built | Date Delivered to Star Bulk | |||||
1 | Goliath | Newcastlemax | 209,537 | 2015 | July-15 | ||||
2 | Gargantua | Newcastlemax | 209,529 | 2015 | April-15 | ||||
3 | Star Poseidon | Newcastlemax | 209,475 | 2016 | February-16 | ||||
4 | Maharaj | Newcastlemax | 209,472 | 2015 | July-15 | ||||
5 | Star Leo (1) | Newcastlemax | 207,939 | 2018 | May-18 | ||||
6 | ABOY Laetitia (1) | Newcastlemax | 207,896 | 2017 | August-18 | ||||
7 | Star Ariadne (1) | Newcastlemax | 207,812 | 2017 | March-17 | ||||
8 | Star Virgo (1) | Newcastlemax | 207,810 | 2017 | March-17 | ||||
9 | Star Libra (1) | Newcastlemax | 207,765 | 2016 | June-16 | ||||
10 | ABOY Sienna (1) | Newcastlemax | 207,721 | 2017 | August-18 | ||||
11 | Star Marisa (1) | Newcastlemax | 207,709 | 2016 | March-16 | ||||
12 | ABOY Karlie (1) | Newcastlemax | 207,566 | 2016 | August-18 | ||||
13 | Star Eleni (1) | Newcastlemax | 207,555 | 2018 | January-18 | ||||
14 | Star Magnanimus (1) | Newcastlemax | 207,490 | 2018 | March-18 | ||||
15 | Leviathan | Capesize | 182,511 | 2014 | September-14 | ||||
16 | Peloreus | Capesize | 182,496 | 2014 | July-14 | ||||
17 | Star Claudine (1) | Capesize | 181,258 | 2011 | July-18 | ||||
18 | Star Ophelia (1) | Capesize | 180,716 | 2010 | July-18 | ||||
19 | Star Martha | Capesize | 180,274 | 2010 | October-14 | ||||
20 | Star Pauline | Capesize | 180,274 | 2008 | December-14 | ||||
21 | Pantagruel | Capesize | 180,181 | 2004 | July-14 | ||||
22 | Star Borealis | Capesize | 179,678 | 2011 | September-11 | ||||
23 | Star Polaris | Capesize | 179,600 | 2011 | November-11 | ||||
24 | Star Lyra (1) | Capesize | 179,147 | 2009 | July-18 | ||||
25 | Star Janni | Capesize | 178,978 | 2010 | January-19 | ||||
26 | Star Marianne | Capesize | 178,906 | 2010 | January-19 | ||||
27 | Star Angie | Capesize | 177,931 | 2007 | October-14 | ||||
28 | Big Fish | Capesize | 177,662 | 2004 | July-14 | ||||
29 | Kymopolia | Capesize | 176,990 | 2006 | July-14 | ||||
30 | Star Triumph | Capesize | 176,343 | 2004 | December-17 | ||||
31 | ABY Scarlett | Capesize | 175,800 | 2014 | August-18 | ||||
32 | Star Audrey | Capesize | 175,125 | 2011 | August-18 | ||||
33 | Big Bang | Capesize | 174,109 | 2007 | July-14 | ||||
34 | Star Aurora | Capesize | 171,199 | 2000 | September-10 | ||||
35 | Paola | Mini-Capesize | 115,259 | 2011 | August-18 | ||||
36 | ABML Eva | Mini-Capesize | 106,659 | 2011 | August-18 | ||||
37 | Amami | Post Panamax | 98,681 | 2011 | July-14 | ||||
38 | Madredeus | Post Panamax | 98,681 | 2011 | July-14 | ||||
39 | Star Sirius | Post Panamax | 98,681 | 2011 | March-14 | ||||
40 | Star Vega | Post Panamax | 98,681 | 2011 | February-14 | ||||
41 | Star Piera | Post-Panamax | 91,952 | 2010 | August-18 | ||||
42 | Star Despoina | Post Panamax | 91,945 | 2010 | August-18 |
Existing On the Water Fleet (As of February 11, 2019) - continued
Vessel Name | Vessel Type | Capacity (dwt.) | Year Built | Date Delivered to Star Bulk | |||||
43 | Star Aphrodite | Post Panamax | 92,006 | 2011 | August-18 | ||||
44 | Star Electra (1) | Kamsarmax | 83,494 | 2011 | July-18 | ||||
45 | Star Angelina | Kamsarmax | 82,981 | 2006 | December-14 | ||||
46 | ABY Jeannette | Kamsarmax | 82,567 | 2014 | August-18 | ||||
47 | Star Gwyneth | Kamsarmax | 82,790 | 2006 | December-14 | ||||
48 | Star Kamila | Kamsarmax | 82,769 | 2005 | September-14 | ||||
49 | Star Luna (1) | Kamsarmax | 82,687 | 2008 | July-18 | ||||
50 | Star Bianca (1) | Kamsarmax | 82,672 | 2008 | July-18 | ||||
51 | Pendulum | Kamsarmax | 82,619 | 2006 | July-14 | ||||
52 | Star Maria | Kamsarmax | 82,598 | 2007 | November-14 | ||||
53 | Star Markella | Kamsarmax | 82,594 | 2007 | September-14 | ||||
54 | Star Danai | Kamsarmax | 82,574 | 2006 | October-14 | ||||
55 | Star Georgia | Kamsarmax | 82,298 | 2006 | October-14 | ||||
56 | Star Sophia | Kamsarmax | 82,269 | 2007 | October-14 | ||||
57 | Star Mariella | Kamsarmax | 82,266 | 2006 | September-14 | ||||
58 | Star Moira | Kamsarmax | 82,257 | 2006 | November-14 | ||||
59 | Star Nina | Kamsarmax | 82,224 | 2006 | January-15 | ||||
60 | Star Renee | Kamsarmax | 82,221 | 2006 | December-14 | ||||
61 | Star Nasia | Kamsarmax | 82,220 | 2006 | August-14 | ||||
62 | Star Laura | Kamsarmax | 82,209 | 2006 | December-14 | ||||
63 | Star Jennifer | Kamsarmax | 82,209 | 2006 | April-15 | ||||
64 | Star Mona (1) | Kamsarmax | 82,188 | 2012 | July-18 | ||||
65 | Star Helena | Kamsarmax | 82,187 | 2006 | December-14 | ||||
66 | Star Astrid (1) | Kamsarmax | 82,158 | 2012 | July-18 | ||||
67 | ABY Asia (1) | Kamsarmax | 81,944 | 2017 | August-18 | ||||
68 | Star Calypso (1) | Kamsarmax | 81,918 | 2014 | July-18 | ||||
69 | Star Charis | Kamsarmax | 81,711 | 2013 | March-17 | ||||
70 | Star Suzanna | Kamsarmax | 81,711 | 2013 | May-17 | ||||
71 | Mercurial Virgo | Kamsarmax | 81,545 | 2013 | July-14 | ||||
72 | Stardust (1) | Kamsarmax | 81,501 | 2011 | July-18 | ||||
73 | Songa Sky (1) | Kamsarmax | 81,466 | 2010 | July-18 | ||||
74 | Star Lydia | Kamsarmax | 81,187 | 2013 | August-18 | ||||
75 | Star Nicole | Kamsarmax | 81,120 | 2013 | August-18 | ||||
76 | ABY Virginia | Kamsarmax | 81,061 | 2015 | August-18 | ||||
77 | Star Genesis (1) | Kamsarmax | 80,705 | 2010 | July-18 | ||||
78 | Star Flame (1) | Kamsarmax | 80,448 | 2011 | July-18 | ||||
79 | Star Iris | Panamax | 76,466 | 2004 | September-14 | ||||
80 | Star Emily | Panamax | 76,417 | 2004 | September-14 | ||||
81 | Idee Fixe (1) | Ultramax | 63,458 | 2015 | March-15 | ||||
82 | Roberta (1) | Ultramax | 63,426 | 2015 | March-15 |
Existing On the Water Fleet (As of February 11, 2019) - continued
Vessel Name | Vessel Type | Capacity (dwt.) | Year Built | Date Delivered to Star Bulk | |||||
83 | Laura (1) | Ultramax | 63,399 | 2015 | April-15 | ||||
84 | Kaley (1) | Ultramax | 63,283 | 2015 | June-15 | ||||
85 | Kennadi | Ultramax | 63,262 | 2016 | January-16 | ||||
86 | Mackenzie | Ultramax | 63,226 | 2016 | March-16 | ||||
87 | Star Anna | Ultramax | 63,038 | 2015 | November-18 | ||||
88 | Star Wave (1) | Ultramax | 61,491 | 2017 | July-18 | ||||
89 | Star Challenger | Ultramax | 61,462 | 2012 | December-13 | ||||
90 | Star Fighter (1) | Ultramax | 61,455 | 2013 | December-13 | ||||
91 | Star Lutas | Ultramax | 61,347 | 2016 | January-16 | ||||
92 | Honey Badger | Ultramax | 61,320 | 2015 | February-15 | ||||
93 | Wolverine | Ultramax | 61,292 | 2015 | February-15 | ||||
94 | Star Antares | Ultramax | 61,258 | 2015 | October-15 | ||||
95 | Star Acquarius | Ultramax | 60,916 | 2015 | July-15 | ||||
96 | Star Pisces | Ultramax | 60,916 | 2015 | August-15 | ||||
97 | ABY Monica | Ultramax | 60,935 | 2015 | August-18 | ||||
98 | Songa Glory (1) | Supramax | 58,680 | 2012 | July-18 | ||||
99 | Diva | Supramax | 56,582 | 2011 | July-17 | ||||
100 | Strange Attractor | Supramax | 55,742 | 2006 | July-14 | ||||
101 | Star Bright | Supramax | 55,783 | 2010 | October-18 | ||||
102 | Star Omicron | Supramax | 53,489 | 2005 | April-08 | ||||
103 | Star Gamma | Supramax | 53,098 | 2002 | January-08 | ||||
104 | Star Zeta | Supramax | 52,994 | 2003 | January-08 | ||||
105 | Star Theta | Supramax | 52,425 | 2003 | December-07 | ||||
106 | Star Epsilon | Supramax | 52,402 | 2001 | December-07 | ||||
107 | Star Cosmo | Supramax | 52,247 | 2005 | July-08 | ||||
108 | Star Kappa | Supramax | 52,055 | 2001 | December-07 | ||||
Total dwt: | 12,054,230 |
Newbuilding Vessels
Vessel Name | Vessel Type | Capacity (dwt.) | Shipyard | Expected delivery date | ||||||
1 | HN 1388 (tbn Katie K) (1) | Newcastlemax | 208,000 | SWS | Mar-19 | |||||
2 | HN 1389 (tbn Debbie H) (1) | Newcastlemax | 208,000 | SWS | Apr-19 | |||||
3 | HN 1390 (tbn Ocean Ayesha) (1) | Newcastlemax | 208,000 | SWS | Jun-19 | |||||
624,000 |
Amounts shown throughout the press release and variations in period–on–period comparisons are derived from the actual numbers in our books and records.
Fourth Quarter 2018 and 2017 Results
Voyage revenues for the fourth quarter of 2018 increased to $209.4 million from $107.7 million in the fourth quarter of 2017. Adjusted time charter equivalent revenues (“Adjusted TCE Revenues”) (please see the table at the end of this release for the calculation of the Adjusted TCE Revenues) were $136.2 million for the fourth quarter of 2018, compared to $90.0 million for the fourth quarter of 2017. Adjusted TCE Revenues were primarily increased as a result of an increase in the average number of vessels in our fleet to 106.4 in the fourth quarter of 2018, up from 70.6 in the fourth quarter of 2017. The TCE rates for the fourth quarter of 2018 and 2017 were $14,140 and $13,860, respectively.
Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has no effect on prior year figures, our TCE rate for the fourth quarter of 2018 would have been $14,018.
For the fourth quarter of 2018, operating income was $33.9 million, which includes depreciation of $30.8 million and impairment loss of $17.8 million, as discussed below. Operating income of $37.2 million for the fourth quarter of 2017 included depreciation of $21.1 million. Depreciation increased during the fourth quarter of 2018 due to a higher average number of vessels in our fleet as described above.
Net income for the fourth quarter of 2018 was $12.3 million, or $0.13 earnings per share, basic and diluted, based on 92,457,989 weighted average basic shares and 92,515,671 weighted average diluted shares, respectively. Net income for the fourth quarter of 2017 was $23.9 million, or $0.37 income per share, basic and diluted, based on 64,080,657 weighted average basic shares and 64,259,874 weighted average diluted shares, respectively.
Net income for the fourth quarter of 2018, included the following significant non-cash items, other than depreciation expense:
Net income for the fourth quarter of 2017, included the following significant non-cash items, other than depreciation expense:
Adjusted net income for the fourth quarter of 2018, was $30.3 million, or $0.33 earnings per share, basic and diluted, compared to adjusted net income of $21.5 million, or $0.34 earnings per share, basic and diluted, for the fourth quarter of 2017. A reconciliation of Net income/(loss) to Adjusted Net income/(loss) and Adjusted earnings/(loss) per share basic and diluted is set forth in the financial tables contained in this release.
Adjusted EBITDA for the fourth quarters of 2018 and 2017, was $82.4 million and $55.7 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth in the financial tables contained in this release.
For the fourth quarters of 2018 and 2017, vessel operating expenses were $38.5 million and $25.4 million, respectively. This increase was primarily due to the increase in the average number of vessels to 106.4 from 70.6. Vessel operating expenses for the fourth quarter of 2017 included pre-delivery and pre-joining expenses of $0.4 million while during the fourth quarter of 2018 no significant pre-delivery and pre-joining expenses were incurred. Excluding these expenses, our average daily operating expenses per vessel for the fourth quarter of 2018 and 2017, were $3,938 and $3,850, respectively.
During the fourth quarter of 2018, five of our vessels underwent their periodic dry docking surveys, resulting in $3.1 million of dry docking expense. During the fourth quarter of 2017, none of our vessels underwent their periodic dry docking surveys, but we incurred expenses of $0.4 million in connection with upcoming dry dockings.
General and administrative expenses for the fourth quarters of 2018 and 2017 were $7.2 million and $5.9 million, respectively. The formation of our new subsidiary, Star Logistics, and the increase of the number of our employees due to the recent expansion of our fleet that occurred in the third quarter of 2018 compared to the corresponding period in 2017, resulted in higher payroll cost in the fourth quarter of 2018. In addition, general and administrative expenses increased as a result of the listing of our common shares on the Oslo Stock Exchange. Our average daily net cash general and administrative expenses per vessel together with management fees for the fourth quarter of 2018 were reduced to $969 from $1,094 during the fourth quarter of 2017 (please see the table at the end of this release for the calculation of the Average daily Net Cash G&A expenses per vessel).
Charter-in hire expense for the fourth quarters of 2018 and 2017 was $25.0 million and $3.1 million, respectively. The increase is due to increased charter in days of 1,493 in the fourth quarter of 2018 compared to 197 in the fourth quarter of 2017. In both quarters, the charter in days are attributable to the activities of our subsidiary Star Logistics, which was formed in the fourth quarter of 2017.
Management fees for the fourth quarters of 2018 and 2017 were $4.0 million and $1.9 million, respectively. The increase is attributable to the new management agreements entered into in connection with the acquired fleets during the third quarter of 2018.
Interest and finance costs net of interest and other income/ (loss) for the fourth quarters of 2018 and 2017 were $21.2 million and $12.6 million, respectively. The increase is attributable to the increase in (i) LIBOR between the corresponding periods and (ii) the weighted average balance of our outstanding indebtedness of $1,447.6 million during the fourth quarter of 2018 compared to $1,043.2 million for the same period in 2017.
Years ended December 31, 2018 and 2017 Results
Voyage revenues for the year ended December 31, 2018 increased to $651.6 million from $332.0 million for the year ended December 31, 2017. Adjusted TCE Revenues (please see the table at the end of this release for the calculation of the Adjusted TCE Revenues) were $435.2 million, compared to $262.7 million for the year ended December 31, 2017. This increase was primarily attributable to the significant rise in charter hire rates, which led to a TCE rate of $13,768 for the year ended December 31, 2018, compared to a TCE rate of $10,393 for the year ended December 31, 2017, representing a 32% increase. Adjusted TCE Revenues also increased as a result of an increase in the average number of vessels in our fleet to 87.7 in the year ended December 31, 2018, up from 69.6 in the year ended December 31, 2017 following the previously announced fleet acquisitions during the third quarter of 2018.
Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has no effect to prior year figures, our TCE rate for the year ended December 31, 2018 would have been $13,772.
For the year ended December 31, 2018, operating income was $131.9 million, which includes depreciation of $102.9 million and impairment loss of $17.8 million. Operating income of $38.8 million for the year ended December 31, 2017 included depreciation of $82.6 million. Depreciation increased during the year ended December 31, 2018 due to a higher average number of vessels in our fleet, as described above.
Net income for the year ended December 31, 2018 was $59.0 million, or $0.77 earnings per share, basic and $0.76 earnings per share, diluted, based on 77,061,227 weighted average basic shares and 77,326,111 weighted average diluted shares, respectively. Net loss for the year ended December 31, 2017 was $9.8 million, or $0.16 loss per share, basic and diluted, based on 63,034,394 weighted average basic and diluted shares.
Net income for the year ended December 31, 2018 included the following significant non-cash items, other than depreciation expense:
Net loss for the year ended December 31, 2017, included the following significant non-cash items, other than depreciation expense:
Adjusted net income for the year ended December 31, 2018 was $86.1 million, or $1.12 earnings per share, basic and $1.11 earnings per share, diluted, compared to adjusted net loss of $4.3 million, or $0.07 loss per share, basic and diluted, for the year ended December 31, 2017. A reconciliation of Net income/(loss) to Adjusted Net income/(loss) and Adjusted earnings/(loss) per share basic and diluted is set forth in the financial tables contained in this release.
Adjusted EBITDA for the years ended December 31, 2018 and 2017 was $260.9 million and $128.0 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth in the financial tables contained in this release.
For the years ended December 31, 2018 and 2017, vessel operating expenses were $128.9 million and $101.4 million, respectively. This increase was primarily due to the increase in the average number of vessels to 87.7 from 69.6. Vessel operating expenses for the years ended December 31, 2018 and 2017 include pre-delivery and pre-joining expenses of $1.1 million and $2.3 million, respectively, incurred in connection with the delivery of the new vessels in our fleet during each period. Excluding these expenses, our average daily operating expenses per vessel for the years ended December 31, 2018 and 2017, were $3,994 and $3,906, respectively.
Dry docking expenses for the years ended December 31, 2018 and 2017 were $9.0 million and $4.3 million, respectively. During the year ended December 31, 2018, eight of our vessels underwent and seven of them completed their periodic dry docking surveys during the same period. During the year ended December 31, 2017, four vessels underwent and completed their periodic dry docking surveys.
General and administrative expenses for the years ended December 31, 2018 and 2017 were $34.0 million and $31.0 million, respectively. The formation of our new subsidiary, Star Logistics, the increase of the number of our employees due to the recent expansion of our fleet and a higher USD/EUR exchange rate during the year ended December 31, 2018 resulted in higher payroll cost compared to the corresponding period in 2017. In addition, general and administrative expenses increased as a result of the listing of our common shares on the Oslo Stock Exchange. Our average daily net cash general and administrative expenses per vessel together with management fees for the year ended December 31, 2018 were reduced to $1,004 from $1,094, during the corresponding period in 2017 (please see the table at the end of this release for the calculation of the Average daily Net Cash G&A expenses per vessel).
Charter-in hire expense for the years ended December 31, 2018 and 2017 was $92.9 million and $5.3 million, respectively. The increase in charter-in hire expense was due to an increase in charter-in days to 5,089 in the year ended December 31, 2018 (attributable to the activities of our new subsidiary Star Logistics, which was created in the fourth quarter of 2017) from 428 in the year ended December 31, 2017 (attributable to the charter-in of the vessel Astakos and Star Logistics).
Management fees for the years ended December 31, 2018 and 2017 were $11.3 million and $7.5 million, respectively. The increase is attributable to the new management agreements entered into in connection with the acquired fleets during the third quarter of 2018.
Interest and finance costs net of interest and other income/ (loss) for the years ended December 31, 2018 and 2017 were $71.8 million and $47.5 million, respectively. The increase is mainly attributable to the increase in (i) the weighted average balance of our outstanding indebtedness of $1,234.6 million during the year ended December 31, 2018 compared to $1,027.1 million for the same period in 2017 and (ii) LIBOR between the corresponding periods.
Liquidity and Capital Resources
Cash Flows
Net cash provided by operating activities for the years ended December 31, 2018 and 2017 was $169.0 million and $82.8 million, respectively.
The positive change was due to the significant recovery of the dry bulk market during the year ended December 31, 2018, which resulted in a significantly higher TCE rate of $13,768 compared to $10,393 for the year ended December 31, 2017. The increase in TCE rates as well as the increase in the average number of vessels in our fleet is reflected in the increase of Adjusted EBITDA to $260.9 million for the year ended December 31, 2018 from $128.0 million for the corresponding period in 2017. This positive effect was partially offset by (i) a net working capital outflow of $20.9 million during the year ended December 31, 2018 compared to a net working capital inflow of $1.7 million for the year ended December 31, 2017 and (ii) by higher net interest expense for the year ended December 31, 2018 compared to the corresponding period in 2017.
Net cash used in investing activities for the years ended December 31, 2018 and 2017 was $327.2 million and $127.1 million, respectively.
For the year ended December 31, 2018, net cash used in investing activities mainly consisted of $330.5 million paid for advances and other capitalized expenses for our newbuilding and newly acquired vessels delivered during the period as well as for the acquisition and installation of scrubber equipment for certain of our vessels, offset partially by hull and machinery insurance proceeds of $3.3 million.
For the year ended December 31, 2017, net cash used in investing activities consisted of:
Net cash provided by financing activities for the years ended December 31, 2018 and 2017 was $98.6 million and $122.0 million, respectively.
For the year ended December 31, 2018, net cash provided by financing activities mainly consisted of:
For the year ended December 31, 2017, net cash provided by financing activities consisted of:
Summary of Selected Data
Fourth quarter 2018 | Fourth quarter 2017 | |||||||
Average number of vessels (1) | 106.4 | 70.6 | ||||||
Number of vessels (2) | 107 | 71 | ||||||
Average age of operational fleet (in years) (3) | 8.0 | 8.2 | ||||||
Ownership days (4) | 9,788 | 6,495 | ||||||
Available days (5) | 9,633 | 6,495 | ||||||
Charter-in days (6) | 1,493 | 197 | ||||||
Fleet utilization (7) | 98.6 | % | 100.0 | % | ||||
Daily Time Charter Equivalent Rate (8) | $14,140 | $13,860 | ||||||
Average daily OPEX per vessel (9) | $3,938 | $3,911 | ||||||
Average daily OPEX per vessel (excl. pre-delivery expenses) | $3,938 | $3,850 | ||||||
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) | $969 | $1,094 | ||||||
Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||
Average number of vessels (1) | 87.7 | 69.6 | ||||||
Number of vessels (2) | 107 | 71 | ||||||
Average age of operational fleet (in years) (3) | 8.0 | 8.2 | ||||||
Ownership days (4) | 32,001 | 25,387 | ||||||
Available days (5) | 31,614 | 25,272 | ||||||
Charter-in days (6) | 5,089 | 428 | ||||||
Fleet utilization (7) | 99.0 | % | 99.6 | % | ||||
Daily Time Charter Equivalent Rate (8) | $13,768 | $10,393 | ||||||
Average daily OPEX per vessel (9) | $4,027 | $3,995 | ||||||
Average daily OPEX per vessel (excl. pre-delivery expenses) | $3,994 | $3,906 | ||||||
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) | $1,004 | $1,094 | ||||||
(1) Average number of vessels is the number of vessels that constituted our owned fleet for the relevant period, as measured by the sum of the number of days each operating vessel was a part of our owned fleet during the period divided by the number of calendar days in that period.
(2) As of the last day of the periods reported.
(3) Average age of operational fleet is calculated as of the end of each period.
(4) Ownership days are the total calendar days each vessel in the fleet was owned by us for the relevant period.
(5) Available days for the fleet are the Ownership days after subtracting off-hire days for major repairs, dry docking or special or intermediate surveys and scrubber installation.
(6) Charter-in days are the total days that we charter-in third-party vessels.
(7) Fleet utilization is calculated by dividing (x) Available days plus Charter-in days by (y) Ownership days plus charter-in days for the relevant period.
(8) Represents the weighted average daily TCE rates of our operating fleet (including owned fleet and fleet under charter-in arrangements). TCE rate is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE rate is determined by dividing voyage revenues (net of voyage expenses, charter-in hire expense, amortization of fair value of above/below market acquired time charter agreements and provision for onerous contracts, if any) by Available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., voyage charters, time charters, bareboat charters and pool arrangements) under which its vessels may be employed between the periods. Our method of computing TCE may not necessarily be comparable to TCE of other companies due to differences in methods of calculation. The above reported TCE rates for the fourth quarter of 2017 and the year ended December 31, 2017 were calculated excluding Star Logistics. We have excluded the revenues and expenses of Star Logistics because it was formed, in October 2017, and its revenues and expenses had not yet normalized in those periods, which obscure material trends of our TCE rates. As a result, we believe it is more informative to our investors to present the TCE rates excluding the revenues and expenses of Star Logistics for those periods. For the detailed calculation please see the table at the end of this release with the reconciliation of Voyage Revenues to TCE. We include TCE rate, a non-GAAP measure, as it provides additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.
(9) Average daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days.
(10) Please see the table at the end of this release for the reconciliation to General and administrative expenses, the most directly comparable GAAP measure. We believe that Average daily Net Cash G&A expenses per vessel is a useful measure for our management and investors for period to period comparison with respect to our financial performance since such measure eliminates the effects of non-cash items which may vary from period to period, are not part of our daily business and derive from reasons unrelated to overall operating performance.
Unaudited Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars except for share and per share data) | Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||||||||
Revenues: | |||||||||||||||||
Voyage revenues | $ | 209,433 | $ | 107,707 | $ | 651,561 | $ | 331,976 | |||||||||
Total revenues | 209,433 | 107,707 | 651,561 | 331,976 | |||||||||||||
Expenses: | |||||||||||||||||
Voyage expenses | (46,628 | ) | (15,252 | ) | (121,596 | ) | (64,682 | ) | |||||||||
Charter-in hire expense | (25,005 | ) | (3,128 | ) | (92,896 | ) | (5,325 | ) | |||||||||
Vessel operating expenses | (38,544 | ) | (25,399 | ) | (128,872 | ) | (101,428 | ) | |||||||||
Dry docking expenses | (3,125 | ) | (362 | ) | (8,970 | ) | (4,262 | ) | |||||||||
Depreciation | (30,814 | ) | (21,129 | ) | (102,852 | ) | (82,623 | ) | |||||||||
Management fees | (4,042 | ) | (1,925 | ) | (11,321 | ) | (7,543 | ) | |||||||||
Loss on bad debt | (722 | ) | - | (722 | ) | - | |||||||||||
General and administrative expenses | (7,223 | ) | (5,860 | ) | (33,972 | ) | (30,955 | ) | |||||||||
Gain/(Loss) on forward freight agreements and bunker swaps | (1,389 | ) | (300 | ) | (447 | ) | (841 | ) | |||||||||
Impairment loss | (17,784 | ) | - | (17,784 | ) | - | |||||||||||
Other operational loss | (230 | ) | (266 | ) | (191 | ) | (989 | ) | |||||||||
Other operational gain | - | 138 | - | 2,918 | |||||||||||||
Gain/(Loss) on sale of vessels | - | 2,996 | - | 2,598 | |||||||||||||
Operating income/(loss) | 33,927 | 37,220 | 131,938 | 38,844 | |||||||||||||
Interest and finance costs | (22,024 | ) | (13,585 | ) | (73,715 | ) | (50,458 | ) | |||||||||
Interest and other income/(loss) | 836 | 980 | 1,866 | 2,997 | |||||||||||||
Gain/(Loss) on derivative financial instruments | - | 179 | 707 | 246 | |||||||||||||
Loss on debt extinguishment | (313 | ) | (871 | ) | (1,783 | ) | (1,257 | ) | |||||||||
Total other expenses, net | (21,501 | ) | (13,297 | ) | (72,925 | ) | (48,472 | ) | |||||||||
Income/(Loss) before equity in investee | 12,426 | 23,923 | 59,013 | (9,628 | ) | ||||||||||||
Equity in income/(loss) of investee | (50 | ) | 29 | 45 | 93 | ||||||||||||
Income/(Loss) before taxes | $ | 12,376 | $ | 23,952 | $ | 59,058 | $ | (9,535 | ) | ||||||||
US Source Income taxes | (61 | ) | (68 | ) | (61 | ) | (236 | ) | |||||||||
Net income/(loss) | $ | 12,315 | $ | 23,884 | $ | 58,997 | $ | (9,771 | ) | ||||||||
Earnings/(loss) per share, basic | $ | 0.13 | $ | 0.37 | $ | 0.77 | $ | (0.16 | ) | ||||||||
Earnings/(loss) per share, diluted | $ | 0.13 | $ | 0.37 | $ | 0.76 | $ | (0.16 | ) | ||||||||
Weighted average number of shares outstanding, basic | 92,457,989 | 64,080,657 | 77,061,227 | 63,034,394 | |||||||||||||
Weighted average number of shares outstanding, diluted | 92,515,671 | 64,259,874 | 77,326,111 | 63,034,394 | |||||||||||||
Unaudited Consolidated Condensed Balance Sheets
(Expressed in thousands of U.S. dollars) | |||||||
ASSETS | December 31, 2018 | December 31, 2017 | |||||
Cash and cash equivalents | $ | 204,921 | $ | 257,911 | |||
Vessel held for sale | 5,949 | - | |||||
Other current assets | 87,967 | 54,715 | |||||
TOTAL CURRENT ASSETS | 298,837 | 312,626 | |||||
Advances for vessels under construction and acquisition of vessels | 60,944 | 48,574 | |||||
Vessels and other fixed assets, net | 2,657,233 | 1,775,081 | |||||
Other non-current assets | 6,249 | 9,483 | |||||
TOTAL ASSETS | $ | 3,023,263 | $ | 2,145,764 | |||
Current portion of long-term debt and finance lease commitments | $ | 176,241 | $ | 189,306 | |||
Other current liabilities | 55,873 | 29,968 | |||||
TOTAL CURRENT LIABILITIES | 232,114 | 219,274 | |||||
Long-term debt and finance lease commitments non-current(net of unamortized deferred finance fees of $13,447 and $7,154, respectively) | 1,217,872 | 789,878 | |||||
Senior Notes (net of unamortized deferred finance fees of $1,590 and $2,000, respectively) | 48,410 | 48,000 | |||||
Other non-current liabilities | 4,222 | 560 | |||||
TOTAL LIABILITIES | $ | 1,502,618 | $ | 1,057,712 | |||
STOCKHOLDERS' EQUITY | 1,520,645 | 1,088,052 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 3,023,263 | $ | 2,145,764 | |||
Unaudited Cash Flow Data
(Expressed in thousands of U.S. dollars) | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||||||
Net cash provided by / (used in) operating activities | $ | 169,009 | $ | 82,804 | |||||||||
Net cash provided by / (used in) investing activities | (327,196 | ) | (127,101 | ) | |||||||||
Net cash provided by / (used in) financing activities | 98,564 | 122,035 | |||||||||||
EBITDA and Adjusted EBITDA Reconciliation
We include EBITDA herein since it is a basis upon which we assess our liquidity position. It is also used by our lenders as a measure of our compliance with certain loan covenants and we believe that it presents useful information to investors regarding our ability to service and/or incur indebtedness.
EBITDA does not represent and should not be considered as an alternative to cash flow from operating activities or net income, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
To derive Adjusted EBITDA from EBITDA, we excluded non-cash gains/losses such as those related to sale of vessels, stock-based compensation expense the write-off of the unamortized fair value of above/below market acquired time charters, impairment losses, the write-off of claims receivable and loss from bad debt, change in fair value of forward freight agreements and bunker swaps, provision for onerous contracts, and the equity in income/(loss) of investee, if any, which may vary from period to period and for different companies and because these items do not reflect operational cash inflows and outflows of our fleet.
The following table reconciles net cash provided by operating activities to EBITDA and Adjusted EBITDA:
(Expressed in thousands of U.S. dollars) | Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||||||||
Net cash provided by/(used in) operating activities | $ | 59,836 | $ | 44,329 | $ | 169,009 | $ | 82,804 | |||||||||
Net decrease / (increase) in current assets | (386 | ) | 2,147 | 39,277 | 8,628 | ||||||||||||
Net increase / (decrease) in operating liabilities, excluding current portion of long term debt | 2,780 | (3,314 | ) | (20,469 | ) | (10,452 | ) | ||||||||||
Impairment loss | (17,784 | ) | - | (17,784 | ) | - | |||||||||||
Loss on debt extinguishment | (313 | ) | (871 | ) | (1,783 | ) | (1,257 | ) | |||||||||
Stock – based compensation | (337 | ) | (414 | ) | (8,072 | ) | (9,267 | ) | |||||||||
Amortization of deferred finance charges | (1,097 | ) | (685 | ) | (3,253 | ) | (2,660 | ) | |||||||||
Unrealized and accrued gain/(loss) on derivative financial instruments | - | 582 | 1,230 | 1,821 | |||||||||||||
Unrealized gain / (loss) on forward freight agreements and bunker swaps | (384 | ) | 77 | (1,339 | ) | 36 | |||||||||||
Total other expenses, net | 21,501 | 13,297 | 72,925 | 48,472 | |||||||||||||
Fair value hedge adjustment | 286 | - | 1,609 | - | |||||||||||||
Other non-current assets | - | - | 1,972 | - | |||||||||||||
Gain on hull and machinery claims | 184 | 137 | 309 | 456 | |||||||||||||
Loss on bad debt | (722 | ) | - | (722 | ) | - | |||||||||||
Income tax | 61 | 68 | 61 | 236 | |||||||||||||
Gain/(Loss) on sale of vessel | - | 2,996 | - | 2,598 | |||||||||||||
Equity in income/(loss) of investee | (50 | ) | 29 | 45 | 93 | ||||||||||||
EBITDA | $ | 63,575 | $ | 58,378 | $ | 233,015 | $ | 121,508 | |||||||||
Equity in (income)/loss of investee | 50 | (29 | ) | (45 | ) | (93 | ) | ||||||||||
Unrealized (gain)/loss on forward freight agreements and bunker swaps | 384 | (77 | ) | 1,339 | (36 | ) | |||||||||||
Gain on sale of vessel | - | (2,996 | ) | - | (2,598 | ) | |||||||||||
Reversal of provision for onerous contracts | (473 | ) | - | - | - | ||||||||||||
Stock-based compensation | 337 | 414 | 8,072 | 9,267 | |||||||||||||
Loss on bad debt | 722 | - | 722 | - | |||||||||||||
Impairment loss | 17,784 | - | 17,784 | - | |||||||||||||
Adjusted EBITDA | $ | 82,379 | $ | 55,690 | $ | 260,887 | $ | 128,048 | |||||||||
Net income/(Loss) and Adjusted Net income/(Loss) Reconciliation and calculation of Adjusted Earnings/(Loss) Per Share
To derive Adjusted Net Income and Adjusted Earnings/(Loss) Per Share from Net Income, we excluded non-cash items, as provided in the table below. We believe that Adjusted Net Income and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as gain/(loss) on sale of assets, gain/(loss) on derivatives, impairment losses and other items which may vary from year to year, are not part of our daily business and derive from reasons unrelated to overall operating performance. In addition we believe that the presentation of the respective measure provides investors with supplemental data relating to our results of operations; and therefore with a more complete understanding of factors affecting our business than GAAP measures alone. Our method of computing Adjusted Net Income and Adjusted Earnings/ (Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
The following table reconciles Net income / (loss) to Adjusted Net income / (loss):
(Expressed in thousands of U.S. dollars except for share and per share data) | Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||||||||
Net income / (loss) | $ | 12,315 | $ | 23,884 | $ | 58,997 | $ | (9,771 | ) | ||||||||
Amortization of fair value of below market acquired time charter agreements | (1,116 | ) | - | (1,820 | ) | - | |||||||||||
Loss on bad debt | 722 | - | 722 | - | |||||||||||||
Stock – based compensation | 337 | 414 | 8,072 | 9,267 | |||||||||||||
Unrealized (gain) / loss on forward freight agreements and bunker swaps | 384 | (77 | ) | 1,339 | (36 | ) | |||||||||||
Reversal of provision for onerous contracts | (473 | ) | - | - | - | ||||||||||||
Unrealized (gain) / loss on derivative financial instruments | - | (532 | ) | (734 | ) | (2,275 | ) | ||||||||||
(Gain) / loss on sale of vessel | - | (2,996 | ) | - | (2,598 | ) | |||||||||||
Impairment loss | 17,784 | - | 17,784 | - | |||||||||||||
Amortization of deferred gain from sale and leaseback | - | - | - | (52 | ) | ||||||||||||
Loss on debt extinguishment | 313 | 871 | 1,783 | 1,257 | |||||||||||||
Equity in income/(loss) of investee | 50 | (29 | ) | (45 | ) | (93 | ) | ||||||||||
Adjusted Net income / (loss) | $ | 30,316 | $ | 21,535 | $ | 86,098 | $ | (4,301 | ) | ||||||||
Weighted average number of shares outstanding, basic | 92,457,989 | 64,080,657 | 77,061,227 | 63,034,394 | |||||||||||||
Weighted average number of shares outstanding, diluted | 92,515,671 | 64,259,874 | 77,326,111 | 63,034,394 | |||||||||||||
Adjusted Basic Earnings / (Loss) Per Share | $ | 0.33 | $ | 0.34 | $ | 1.12 | $ | (0.07 | ) | ||||||||
Adjusted Diluted Earnings / (Loss) Per Share | $ | 0.33 | $ | 0.34 | $ | 1.11 | $ | (0.07 | ) | ||||||||
Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation
(In thousands of U.S. Dollars, except for TCE rates) | ||||||||||||||||||
Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | |||||||||||||||
Voyage revenues | $ | 209,433 | $ | 103,623 | a) | $ | 651,561 | $ | 327,892 | d) | ||||||||
Less: | ||||||||||||||||||
Voyage expenses | (46,628 | ) | (13,604 | ) | b) | (121,596 | ) | (63,034 | ) | e) | ||||||||
Charter-in hire expenses | (25,005 | ) | - | c) | (92,896 | ) | (2,197 | ) | f) | |||||||||
Time Charter equivalent revenues | $ | 137,800 | $ | 90,019 | $ | 437,069 | $ | 262,661 | ||||||||||
Reversal of provision for onerous contracts | (473 | ) | - | - | - | |||||||||||||
Amortization of fair value of below/above market acquired time charter agreements | (1,116 | ) | - | (1,820 | ) | - | ||||||||||||
Adjusted Time Charter equivalent revenues | $ | 136,211 | $ | 90,019 | $ | 435,249 | $ | 262,661 | ||||||||||
Available days for fleet | 9,633 | 6,495 | 31,614 | 25,272 | ||||||||||||||
Daily Time Charter Equivalent Rate ("TCE") | $ | 14,140 | $ | 13,860 | $ | 13,768 | $ | 10,393 | ||||||||||
Average daily Net Cash G&A expenses per vessel Reconciliation
(In thousands of U.S. Dollars, except for daily rates) | |||||||||||||||||
Fourth quarter 2018 | Fourth quarter 2017 | Twelve months ended December 31, 2018 | Twelve months ended December 31, 2017 | ||||||||||||||
General and administrative expenses | $ | 7,223 | $ | 5,860 | $ | 33,972 | $ | 30,955 | |||||||||
Plus: | |||||||||||||||||
Management fees | 4,042 | 1,925 | 11,321 | 7,543 | |||||||||||||
Less: | |||||||||||||||||
Stock – based compensation | (337 | ) | (414 | ) | (8,072 | ) | (9,267 | ) | |||||||||
One-time expenses | - | (52 | ) | - | (989 | ) | |||||||||||
Net Cash G&As expenses (excluding one-time expenses) | $ | 10,928 | $ | 7,319 | $ | 37,221 | $ | 28,242 | |||||||||
Ownership days | 9,788 | 6,495 | 32,001 | 25,387 | |||||||||||||
Charter-in days | 1,493 | 197 | 5,089 | 428 | |||||||||||||
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) | $ | 969 | $ | 1,094 | $ | 1,004 | $ | 1,094 | |||||||||
Conference Call details:
Our management team will host a conference call to discuss our financial results on Tuesday, February 12, 2019 at 11:00 a.m., Eastern Time (ET).
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(877) 553-9962 (from the US), 0(808) 238-0069 (from the UK) or + (44) (0) 2071 928 592 (Standard International Dial In). Please quote "Star Bulk."
A replay of the conference call will be available until Wednesday, February 19, 2019. The United States replay number is 1(866) 331-1332; from the UK 0(808) 238-0667; the standard international replay number is (+44) (0) 3333 009 785 and the access code required for the replay is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast over the Internet through the Star Bulk website (www.starbulk.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
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, which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Oslo, New York, Cyprus and Geneva. Its common stock trades on the Nasdaq Global Select Market and on the Oslo Stock Exchange under the symbol “SBLK”. On a fully delivered basis, Star Bulk will have a fleet of 111 vessels, with an aggregate capacity of 12.67 million dwt, consisting of 17 Newcastlemax, 20 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax and 11 Supramax vessels with carrying capacities between 52,055 dwt and 209,537 dwt. Where we refer to information on a “fully delivered basis,” we are referring to such information after giving effect to the delivery of three newbuilding vessels The Company also holds call options and has sold respective put options on four Capesize vessels, with exercise dates in early April 2019.
Forward-Looking Statements
Matters discussed in this press release may constitute forward looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination by the Company’s management of historical operating trends, data contained in its records and other data available from third parties. Although the Company 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 the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include general dry bulk shipping market conditions, including fluctuations in charterhire rates and vessel values; the strength of world economies; the stability of Europe and the Euro; fluctuations in interest rates and foreign exchange rates; changes in demand in the dry bulk shipping industry, including the market for our vessels; changes in our operating expenses, including bunker prices, dry docking and insurance costs; changes in governmental rules and regulations or actions taken by regulatory authorities; potential liability from pending or future litigation; general domestic and international political conditions; potential disruption of shipping routes due to accidents or political events; the availability of financing and refinancing; our ability to meet requirements for additional capital and financing to complete our newbuilding program and grow our business; the impact of the level of our indebtedness and the restrictions in our debt agreements; vessel breakdowns and instances of off‐hire; risks associated with vessel construction; potential exposure or loss from investment in derivative instruments; potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management and our ability to complete acquisition transactions as planned. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward‐looking statements as a result of developments occurring after the date of this communication.
Contacts
Company:
Simos Spyrou, Christos Begleris
Co ‐ Chief Financial Officers
Star Bulk Carriers Corp.
c/o Star Bulk Management Inc.
40 Ag. Konstantinou Av.
Maroussi 15124
Athens, Greece
Email: info@starbulk.com
www.starbulk.com
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661‐7566
E‐mail: starbulk@capitallink.com