Ετικέτα: Star Bulk Carriers

Star Bulk to acquire 16 vessels from Diana Shipping Inc. Conditional upon the success of its offer to acquire Genco Shipping & Trading Ltd

Star Bulk Carriers Corp. announced it has entered into a conditional Sale and Purchase Agreement (the “SPA”) to acquire sixteen vessels from Diana Shipping Inc., subject to Diana successfully acquiring all issued and outstanding shares of Genco Shipping & Trading Ltd., not already owned by Diana.
The aggregate purchase price for the sixteen-vessel acquisition is $470.5 million in cash (“Purchase Price”). The SPA is subject to (i) an agreement being entered between Diana and Genco and successfully being consummated and (ii) customary conditions to S&P transactions.
The sixteen vessels that SBLK has agreed to acquire include one Newcastlemax, six Capesize vessels, seven Ultramax vessels and two Supramax vessels, with a total carrying capacity of 1.8 million dwt and an average age of 11.4 years. Assuming the successful consummation of this transaction, Star Bulk will have 157 ships on a fully delivered basis with a total carrying capacity of 15.9 million dwt and average age of 12.0 years.
The Company intends to fund the Purchase Price with a combination of existing cash resources, reserved from previous vessel sales, as well as new debt financing. The Company has received a number of offers from leading financing institutions in order to procure new senior secured debt facilities in relation to this transaction and is in the process of evaluating them. As of December 31, 2025, Star Bulk had a total cash balance of $501.9 mln while the Company currently has 27 unlevered ships with an aggregate market value of $628.0 mln and maintains access to its revolving credit facilities with total undrawn and available amount of $110.0 mln.
We believe this transaction represents a disciplined and value-enhancing capital allocation consistent with Star Bulk’s long-term shareholder strategy. The sixteen vessels will generate immediate incremental TCE revenue, EBITDA and operating cash flow to support dividend growth and deleveraging.
Mr. Petros Pappas CEO commented: “As a leading public company in the dry bulk space, we firmly believe consolidation in our sector creates value for all shareholders. We are pleased to support Diana on its proposed acquisition of Genco. We believe this en-bloc transaction allows Star Bulk to further increase its scale, earnings power and shareholder dividends, while preserving balance sheet strength and low leverage.”

Star Bulk Carriers Corp. Announces its 2021 Environmental, Social and Governance (ESG) Report

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, announced the publication of its 2021 Environmental, Social and Governance (ESG) Report (“Report”), developed in accordance with the Global Reporting Initiative Standards (Core Option) and the Sustainability Accounting Standards Board (SASB) for Marine Transportation. Specific GRI disclosures and SASB indicators, have received also limited level of assurance from Ernst & Young (Hellas) Certified Auditors Accountants S.A.
The Report has been published on the Company’s website (www.starbulk.com).
In formulating the Company’s ESG strategy and measuring its performance, Star Bulk draws inspiration and guidance from the United Nations’ Sustainable Development Goals (SDGs). The Report presents Star Bulk’s ESG priorities and goals, reports on a wide range of sustainability-related Key Performance Indicators, and provides extensive information about the ways in which the Company manages its impact on the environment, its people and society. Highlighting the Company’s material issues as identified by its constituents, Star Bulk continues to engage the Company’s stakeholders in setting its ESG objectives. Commenting on the publication of the Report, Mr. Petros Pappas, Star Bulk CEO, emphasized: “Our 4th annual ESG report demonstrates our commitment to transparency and accountability, the protection of our planet and our people’s wellbeing. Notwithstanding the challenges and uncertainties of today’s world, we remain true to our values and work hard towards our vision to lead in sustainable dry bulk shipping.”

Star Bulk Carriers Corp. Reports Net Profit of $200.1 Million for the Second Quarter of 2022 and Declares Quarterly Dividend of $1.65 Per Share

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, announced its unaudited financial and operating results for the second quarter of 2022. 
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk continued its strong performance in 2022, reporting for the second quarter a Net Income of $200.1 million, TCE Revenues of $337.5 million and EBITDA of $251.5 million. TCE for the quarter was $30,451 / day per vessel, a 33% increase YoY and 11% QoQ. Looking to the next quarter, we have covered 61% of our available days for Q3 at a TCE of approx. $29,000/ day per vessel.
As per our established dividend policy, the Board of Directors approved a dividend of $1.65 / share. Star Bulk has distributed $6.55 / share over the last four quarters.
We are pleased to report that as of the end of June, we have earned back our $250 million scrubber investment, within a span of 2.5 years. This investment includes all related capital expenditure as well as the off hire cost to install the scrubbers. With our fleet being ~94% scrubber fitted and the current Hi5 spread at very healthy levels, these scrubbers should augment our profitability for the foreseeable future.
We have continued to optimize our debt since the beginning of the year. We have refinanced approximately $310 million, which will reduce our interest cost by $4.0 million per annum, extend maturities and leave us with twelve unencumbered vessels. In an increasing interest rate environment, through our existing swaps we have fixed our base rate at an average of 45 bps, for an outstanding notional of $783 million and an average remaining maturity of 1.7 years.
Star Bulk’s Board of Directors has established an ESG Committee, which will guide and support management on ESG-related matters. The Committee is comprised of three independent Directors and is another testament to the importance of good environmental stewardship, corporate governance and social consciousness of Star Bulk.
With a limited supply of vessels, the upcoming environmental regulations curbing vessel ordering and speeds, our competitive operating costs and our scrubber equipped fleet, we remain optimistic on the income earning prospects of our company despite a seemingly uncertain macroeconomic environment.”
Recent Developments
Declaration of Dividend
As of June 30, 2022, we owned 128 vessels and our aggregate amount of cash on our balance sheet was $385.6 million. Taking into account the Minimum Cash Balance per Vessel, as defined in the 2021 Annual Report, of $2.10 million, or $268.8 million in the aggregate, and the refinancings in progress as described below, on August 4, 2022, pursuant to our dividend policy, our Board of Directors declared a quarterly cash dividend of $1.65 per share, payable on or about September 8, 2022 to all shareholders of record as of August 25, 2022. The ex-dividend date is expected to be August 24, 2022.
Shares Outstanding Update
From January 1, 2022 to the date of this press release, we have issued and sold 654,690 common shares under our effective at-the-market offering programs at an average price of $30.85 per share, resulting in net proceeds of $19.8 million, $15.4 million of which we received during the second quarter of 2022.
From January 1, 2022 to the date of this press release, we repurchased 790,011 common shares in open market transactions at an average price of $25.37 per share (of which 340,000 common shares were repurchased during June of 2022 at an average price of $24.45 per share) for an aggregate consideration of $20.0 million, pursuant to the previously announced $50.0 million share repurchase program (the “Share Repurchase Program”), all of which were cancelled and removed from our share capital as of the date of this release. As of the date of this release, we have $19.7 million outstanding under the authorized Share Repurchase Program.
Financing
On June 28, 2022, we entered into an agreement with ING Bank N.V., London Branch (the “ING $310.6 million Facility”), for an additional amount of $100.0 million under the existing ING $210.6 million Facility, as defined in our Annual Report on Form 20-F in respect of the fiscal year ended December 31, 2021 (the “2021 Annual Report”), collateralized by additional nine vessels. The additional amount of $100.0 million was drawn on June 30, 2022 and used to refinance the outstanding amounts under i) the lease agreements with China Merchants Bank Leasing (“CMBL”) for seven vessels acquired in February 2021 from Eneti Inc and for the vessel Star Vega and ii) the outstanding loan amount for the vessel Madredeus under the HSBC $80.0 million Facility, as defined in the 2021 Annual Report. The additional tranche matures five years after its respective drawdown.
On July 5, 2022, we entered into a loan agreement with Citibank N.A., London Branch (the “Citi $100.0 million Facility”) for a loan of up to $100.0 million in two tranches. The first tranche of $48.3 million was drawn on July 18, 2022 and used to replenish the funds used in June for the extinguishment of the outstanding amounts under the lease agreements with CMBL for the vessels Star Sirius, Laura, Idee Fixe, Kaley and Roberta. The second tranche of $51.7 million is expected to be drawn in late August in order to refinance the aggregate outstanding amount of $42.7 million under the lease agreements with CMBL of the vessels Star Apus, Star Cleo, Star Columba, Star Dorado, Star Hydrus, Star Pegasus and Star Pyxis. Both tranches of the Citi $100.0 million Facility will mature five years from their drawdown and are secured by the 12 aforementioned vessels.
On August 3, 2022, we entered into a loan agreement with Skandinaviska Enskilda Banken AB (publ) (”SEB”) (the “SEB $42.0 million Facility”) for a loan of up to $42.0 million in three tranches, which were drawn on August 3, 2022. The first two tranches of $12.8 million and $13.5 million were used to refinance the aggregate outstanding amount of $29.3 million under the HSBC $80.0 million Facility, which is now fully repaid, and the third tranche of $15.7 million was used to refinance the outstanding amount of $13.8 million under the NTT $17.6 million Facility as defined in the 2021 Annual Report, collateralized by the vessel Star Calypso. Each tranche of the SEB $42.0 million Facility will mature five years from its drawdown and is secured by the vessels Amami, Mercurial Virgo and Star Calypso .
On August 4, 2022, we entered into a new loan agreement with ABN AMRO Bank N.V. , in order to refinance the outstanding amount of $67.9 million under the ABN $115.0 million Facility (as defined in the 2021 Annual Report), (the “ABN $67.9 million Facility”). The ABN $67.9 million Facility provides for a lower margin and an extension of the final repayment date from December 2023 to August 2027, five years after its drawdown, and is secured by the 7 vessels previously securing the ABN $115.0 million Facility.
The financing arrangements discussed here contain financial and other covenants substantially similar to those covenants described in Item 5 of the 2021 Annual Report for our credit facilities.
Following the completion of the refinancings that we have performed during the last 6 months, we will have 12 unlevered vessels, we have extended the average maturity of our outstanding facilities to 4.4 years and we expect to save approximately $4.0 million per year in interest costs from more competitive margins and savings from the transition to the Secured Overnight Financing Rate as the benchmark interest rate in our credit agreements.
As of today, following a number of interest rates swaps we have entered into, we have an outstanding total notional amount of $783.1 million under our financing agreements for which the base rate is fixed at an average of 45 bps with average maturity of 1.7 years.
Second Quarter 2022 and 2021 Results
For the second quarter of 2022, we had a net income of $200.1 million, or $1.95 earnings per share, compared to a net income for the second quarter of 2021 of $124.2 million, or $1.22 earnings per share.
Adjusted net income, which excludes certain non-cash items, was $204.5 million, or $2.00 earnings per share, for the second quarter of 2022, compared to an adjusted net income of $128.8 million for the second quarter of 2021, or $1.26 earnings per share.
Net cash provided by operating activities for the second quarter of 2022 was $239.9 million, compared to $140.5 million for the second quarter of 2021. Adjusted EBITDA, which excludes certain non-cash items, was $258.3 million for the second quarter of 2022, compared to $182.5 million for the second quarter of 2021.
Voyage revenues for the second quarter of 2022 increased to $417.3 million from $311.4 million in the second quarter of 2021 and Time charter equivalent revenues (“TCE Revenues”)1 were $337.5 million for the second quarter of 2022, compared to $254.9 million for the second quarter of 2021. TCE rate for the second quarter of 2022 was $30,451 compared to $22,927 for the second quarter of 2021 which is indicative of the significantly improved market conditions prevailing during the recent quarter.
For the second quarters of 2022 and 2021, vessel operating expenses were $58.4 million and $53.0 million, respectively. Vessel operating expenses for the second quarter of 2022 included additional crew expenses related to the increased number and cost of crew changes performed during the period as a result of COVID-19 related restrictions estimated to be $2.8 million. Vessel operating expenses for the second quarter of 2021 included COVID-19 related expenses of $1.7 million and pre-delivery and pre-joining expenses of $1.9 million. Excluding non-recurring expenses such as increased costs due to the COVID-19 pandemic and pre-delivery and pre-joining expenses, our daily operating expenses per vessel for the second quarters of 2022 and 2021 were $4,674 and $4,307, respectively. This increase was driven by the increase in the average number of vessels in our fleet to 128.0 in the second quarter of 2022 from 126.0 for the respective quarter of 2021 and also the higher repair and maintenance costs due to the preventive maintenance program of our fleet, ensuring quality service to our clients and minimizing off hire time.
General and administrative expenses for the second quarters of 2022 and 2021 were $17.1 million and $10.1 million, respectively, primarily due to the increase in the stock based compensation expense to $10.2 million from $2.3 million. Vessel management fees for the second quarters of 2022 and 2021 were $5.0 million and $4.9 million, respectively. 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 second quarters of 2022 and 2021 were $1,010 and $1,099, respectively.
Interest and finance costs net of interest and other income/(loss) for the second quarters of 2022 and 2021 were $12.4 million and $15.1 million, respectively. This decrease is primarily attributable to the decline in the average interest rate on our outstanding indebtedness, mainly driven by the refinancing of certain of our debt agreements and the redemption of our outstanding 8.30% Senior Notes in July 2021, as well as the decrease in the weighted average outstanding debt balance during the corresponding periods.

Star Bulk Carriers Corp. Reports Net Profit of $300.2 Million for the Fourth Quarter of 2021 and Declares Quarterly Dividend of $2.00 Per Share

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, announced its unaudited financial and operating results for the fourth quarter of 2021. 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.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“The favorable market conditions during 2021, enabled the Company to reach record–high profitability. During the fourth quarter, Star Bulk earned net income of $300.2 million, TCE Revenues of $428.0 million and EBITDA of $353.1 million with TCE for the quarter increasing to $37,406/day per vessel. On a full year basis, we managed to have our best year ever, with net income of $680.5 million and EBITDA of $892.0 million.
The increased cash flow from operations helped us further strengthen our balance sheet reaching a current cash balance of $593.7 million, reducing our net debt to $938.8 million. We continue to be committed to our policy of increased shareholder returns, announcing a dividend of $2.00 per share for the fourth quarter. For the full year 2021, Star Bulk will have made total distributions to its shareholders of $4.25 per share, demonstrating its ability to take advantage of strong market conditions and pay meaningful returns to its shareholders.
On the ESG front, Star Bulk has participated in the Carbon Disclosure Project (“CDP”) for the 2021 disclosure cycle and has managed to achieve a “Management” level score (B-), the highest score achieved amongst US listed dry bulk companies.
We remain optimistic about the prospects of the dry bulk markets due to promising supply and demand balance for the coming years. Upcoming environmental regulations and continued global economic growth create a favorable picture for the future of the industry. Star Bulk, has built a solid platform and remains well positioned to take advantage of such continued positive dynamics and reward its shareholders over the long term.”
Recent Developments
Declaration of DividendAs of December 31, 2021, we owned 128 vessels and our Total Cash Balance was $473.3 million. Taking into account the Minimum Cash Balance per Vessel as of December 31, 2021 of $2.10 million, on February 16, 2022, pursuant to our dividend policy, our Board of Directors declared a quarterly cash dividend of $2.00 per share payable on or about March 15, 2022 to all shareholders of record as of March 2, 2022. The ex-dividend date is expected to be March 1, 2022.
Shares Outstanding UpdateAs of February 16, 2022, we have not sold any common shares under either of our effective at-the-market programs and our number of outstanding shares is 102,294,758.
Vessel Employment Overview
Daily Time Charter Equivalent Rate (“TCE”) is a non-GAAP measure. Please see the table 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 fourth quarter of 2021 our TCE rate was:Capesize / Newcastlemax Vessels: $47,219 per day.Post Panamax / Kamsarmax / Panamax Vessels: $31,763 per day.Ultramax / Supramax Vessels: $34,024 per day.
For the year ended December, 2021 our TCE rate was:Capesize / Newcastlemax Vessels: $32,286 per day.Post Panamax / Kamsarmax / Panamax Vessels: $24,860 per day.Ultramax / Supramax Vessels: $23,752 per day.
Amounts shown throughout the press release and variations in period–on–period comparisons are derived from the actual unaudited numbers in our books and records. Reference to per share figures below are based on 102,285,188 and 96,983,233 weighted average diluted shares for the fourth quarter of 2021 and 2020, respectively.
Fourth Quarter 2021 and 2020 Results
For the fourth quarter of 2021, we had a net income of $300.2 million, or $2.93 earnings per share, compared to a net income for the fourth quarter of 2020 of $27.8 million, or $0.29 earnings per share.
Adjusted net income, which excludes certain non-cash items, was $302.4 million, or $2.96 earnings per share, for the fourth quarter of 2021, compared to an adjusted net income for the fourth quarter of 2020 of $29.5 million, or $0.30 earnings per share.
Net cash provided by operating activities for the fourth quarter of 2021 was $296.4 million, compared to $58.1 million for the fourth quarter of 2020. Adjusted EBITDA, which excludes certain non-cash items, was $355.1 million for the fourth quarter of 2021, compared to $81.5 million for the fourth quarter of 2020.
Voyage revenues for the fourth quarter of 2021 increased to $499.9 million from $186.0 million in the fourth quarter of 2020 which is indicative of the significantly improved market conditions prevailing during the current period. Time charter equivalent revenues (“TCE Revenues”)1 were $428.0 million for the fourth quarter of 2021, compared to $140.5 million for the fourth quarter of 2020. TCE rate for the fourth quarter of 2021 was $37,406 compared to $13,415 for the fourth quarter of 2020.
For the fourth quarters of 2021 and 2020, vessel operating expenses were $54.2 million and $46.1 million, respectively. Vessel operating expenses for the fourth quarter of 2021 included pre-delivery and pre-joining expenses of $0.1 million and additional crew expenses related to the increased number and cost of crew changes performed during the period as a result of COVID-19 restrictions estimated to be $2.6 million. Vessel operating expenses for the fourth quarter of 2020 included COVID-19 related expenses of $1.6 million. Excluding non-recurring expenses such as pre-delivery and pre-joining expenses and the increased costs due to COVID-19, our daily operating expenses per vessel for the fourth quarters of 2021 and 2020 were $4,373 and $4,169, respectively.
General and administrative expenses for the fourth quarters of 2021 and 2020 were $9.3 million and $7.6 million, respectively and was mainly increased due to the increase of the share-based compensation expense to $1.7 million in the fourth quarter of 2021 from $0.3 million in the corresponding period of 2020. Vessel management fees for the fourth quarters of 2021 and 2020 were $4.9 million and $4.6 million, respectively. 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 fourth quarters of 2021 and 2020 were $1,042 and $1,068, respectively.
Interest and finance costs net of interest and other income/(loss) for the fourth quarters of 2021 and 2020 were $13.1 million and $15.2 million, respectively. This decrease is primarily attributable to the decline in the average interest rate on our outstanding indebtedness, mainly driven by the refinancing of certain of our debt agreements and the redemption of our outstanding 8.30% Senior Notes in July 2021 , the interest rate swap agreements that we entered into in 2020 and 2021 and the lower LIBOR rates during the fourth quarter of 2021 compared to the same period in 2020, as well as the decrease in the weighted average outstanding debt balance during the corresponding periods.
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Star Bulk Carriers Corp. Reports Net Profit of $220.4 Million for the Third Quarter Of 2021 and Declares Quarterly Dividend of $1.25 per Share

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, yesterday announced its unaudited financial and operating results for the third quarter of 2021. 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.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk reported a record third quarter, with Net Income of $220.4 million, TCE Revenues of $349.3 million and an improved daily TCE for the fleet of $30,626.
“We continue to generate very healthy operating cashflow, enabling us to strengthen our liquidity position and return cash to our shareholders. As a result of the existing dividend policy, the Company will be paying a dividend of $1.25 / share for the quarter.
“On the sustainability front, we recently published our third annual Environmental, Social, and Governance (ESG) Report which discloses our ESG strategy and performance following rigorous global standards, strengthening our commitment to lead the way in sustainable dry bulk shipping.
“Despite the short term volatility, our overall outlook for the dry bulk market remains constructive. Strong global growth and increased infrastructure spending has led to a healthy rise in demand for commodities which combined with a historically low orderbook, create favorable long term dynamics for our industry.”
Recent Developments
Declaration of Dividend
As of September 30, 2021, we owned 128 vessels and our Total Cash Balance was $371.7 million. Taking into account the Minimum Cash Balance per Vessel as of September 30, 2021 of $1.90 million, on November 16, 2021, pursuant to our dividend policy, our Board of Directors declared a quarterly cash dividend of $1.25 per share payable on or about December 22, 2021 to all shareholders of record as of December 10, 2021. The ex-dividend date is expected to be December 9, 2021.
Financings
During the last three months we have drawn all new senior debt facilities provided by ING Bank N.V., ABN AMRO Bank N.V, DNB Bank ASA and Crédit Agricole Corporate and Investment Bank which refinanced other senior debt facilities as described in our Q2 2021 Press Release. The total proceeds that have been drawn are $306.65 million, $147.50 million of which were drawn up to September 30, 2021 and the remaining $159.15 million were drawn during the period from September 30, 2021 and the date of this release.
Hedging VLSFO – HSFO spread
In November 2021, we hedged 75,000 metric tons of our estimated fuel consumption for the first quarter of 2022 by selling the Singapore spread between Very Low-Sulfur Fuel Oil (VLSFO) and High-Sulfur Fuel Oil (HSFO) at an average price of $134.8 per ton.
ESG Report
In November 2021, we released our third annual Environmental, Social and Governance (ESG) Report which records our ongoing efforts to further strengthen the Company’s environmental stewardship, social contribution and corporate governance, and provides a transparent account of our ESG strategy and performance. The ESG Report was developed in accordance with the Global Reporting Initiative (GRI) Standards (Core Option), the Sustainability Accounting Standards Board (SASB) for Marine Transportation, and the Nasdaq ESG Reporting Guide. Additionally, the GRI and SASB disclosures of the report have been assured by EY’s Climate Change and Sustainability Services. The ESG Report has been published on the Company’s website (www.starbulk.com). The content on our website is not incorporated by reference into this release.
Shares Outstanding Update
During October 2021, we repurchased 466,268 of our common shares in open market transactions at an average price of $22.01 per share for aggregate consideration of $10.3 million, pursuant to the previously announced $50.0 million share repurchase program, all of which were canceled and removed from our share capital as of the date of this release. Following the cancellation of the repurchased shares, our outstanding number of shares is 102,130,024.
As of November 16, 2021, we have not sold any common shares under either of our effective at-the-market programs.
Vessel Employment Overview
For the third quarter of 2021 our TCE rate was:Capesize / Newcastlemax Vessels: $32,258 per day.Post Panamax / Kamsarmax / Panamax Vessels: $30,763 per day.Ultramax / Supramax Vessels: $28,277 per day.
For the first nine months of 2021 our TCE rate was:Capesize / Newcastlemax Vessels: $27,080 per day.Post Panamax / Kamsarmax / Panamax Vessels: $22,442 per day.Ultramax / Supramax Vessels: $20,072 per day.
Amounts shown throughout the press release and variations in period–on–period comparisons are derived from the actual unaudited numbers in our books and records. Reference to per share figures below are based on 102,525,065 and 96,370,925 weighted average diluted shares for the third quarter of 2021 and 2020, respectively.
Third Quarter 2021 and 2020 Results
For the third quarter of 2021, we had a net income of $220.4 million, or $2.15 earnings per share, compared to a net income for the third quarter of 2020 of $23.3 million, or $0.24 earnings per share.
Adjusted net income, which excludes certain non-cash items, was $224.7 million, or $2.19 earnings per share, for the third quarter of 2021, compared to an adjusted net income for the third quarter of 2020 of $27.5 million, or $0.29 earnings per share.
Net cash provided by operating activities for the third quarter of 2021 was $251.0 million, compared to $57.0 million for the third quarter of 2020. Adjusted EBITDA, which excludes certain non-cash items, was $277.8 million for the third quarter of 2021, compared to $79.8 million for the third quarter of 2020.
Voyage revenues for the third quarter of 2021 increased to $415.7 million from $200.2 million in the third quarter of 2020 which is indicative of the improved market conditions prevailing during the current period. Time charter equivalent revenues (“TCE Revenues”)1 were $349.3 million for the third quarter of 2021, compared to $137.6 million for the third quarter of 2020. TCE rate for the third quarter of 2021 was $30,626 compared to $13,084 for the third quarter of 2020.
For the third quarters of 2021 and 2020, vessel operating expenses were $54.1 million and $47.2 million, respectively. Vessel operating expenses for the third quarter of 2021 included pre-delivery and pre-joining expenses of $0.6 million and additional crew expenses related to the increased number and cost of crew changes performed during the period as a result of COVID-19 restrictions estimated to be $2.8 million. Vessel operating expenses for the third quarter of 2020 included COVID-19 related expenses of $1.9 million. Our daily operating expenses per vessel for the third quarters of 2021 and 2020 were $4,596 and $4,425, respectively. Excluding non-recurring expenses such as pre-delivery and pre-joining expenses and the increased costs due to COVID-19, our daily operating expenses per vessel for the third quarters of 2021 and 2020 were $4,304 and $4,244, respectively.
General and administrative expenses for the third quarters of 2021 and 2020 were $12.8 million and $9.3 million, respectively and was mainly increased due to the increase of stock based compensation expense to $6.1 million in the third quarter of 2021 from $3.1 million in the third quarter of 2020. Vessel management fees for the third quarters of 2021 and 2020 were $4.9 million and $4.6 million, respectively. Our daily net cash general and administrative expenses per vessel (including management fees and excluding stock-based compensation and other non-cash charges) for the third quarters of 2021 and 2020 were $987 and $972, respectively.
Interest and finance costs net of interest and other income/(loss) for the third quarters of 2021 and 2020 were $14.8 million and $16.2 million, respectively. This decrease is primarily attributable to the decline in the average interest rate on our outstanding indebtedness, mainly driven by the refinancing of certain of our debt agreements, the interest rate swap agreements that we entered into in 2020 and 2021 and the lower LIBOR rates during the third quarter of 2021 compared to the same period in 2020.
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Star Bulk Carriers Corp. Reports Net Profit of $35.8 Million for the First Quarter of 2021 and Declares Quarterly Dividend of $0.30 Per Share

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes, announced its unaudited financial and operating results for the first quarter of 2021. 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.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk reported a strong first quarter of 2021, earning net income of $35.8 million, on TCE Revenues of $156.4 million, with daily TCE per vessel for the fleet increasing to $15,461. The majority of the fleet remains exposed to the spot market for Q3 and following, with current forward coverage at $21,168 for 82% of available days in Q2.
The Board of Directors has amended the Company’s dividend policy to substantially increase return of capital to our shareholders. As a result, the Company will be paying a dividend for Q1 of $0.30 / share for the first quarter.
Over the past months we have continued increasing our fleet with the acquisition of twelve vessels, on average younger than our current fleet, nine of which were delivered within Q1. We expect to take delivery of the remaining three vessels during Q2.
Our outlook for the market remains positive due to the reopening of the global economy and consequent increased demand across all key dry bulk commodities. The record low orderbook coupled with upcoming environmental regulations that limit new vessel orders, also create favorable long term dynamics for our industry, which our Company is well positioned to enjoy.”
Recent Developments
Declaration of Dividend
The Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.30 per share on May 19, 2021, payable on or about June 14th, 2021 to all shareholders of record as of May 31st, 2021 (“Record Date”). The ex-dividend date is expected to be May 30th, 2021.Updated Dividend Policy
In November 2019, the Board established a dividend policy, which is now updated, pursuant to which the Board intends to declare a dividend in each of February, May, August and November in an amount equal to (a) Star Bulk’s Total Cash Balance minus (b) the product of (i) the Minimum Cash Balance per Vessel and (ii) the Number of Vessels.“Total Cash Balance” means (a) the aggregate amount of cash on Star Bulk’s balance sheet as of the last day of the quarter preceding the relevant dividend declaration date minus (b) any proceeds received by Star Bulk, including its subsidiaries, from vessel sales, or additional proceeds from vessel refinancings, or securities offerings in the last 12 months that have been earmarked for share repurchases, debt prepayment, vessel acquisitions and general corporate purposes.
“Minimum Cash Balance per Vessel” means:
$1.40 million for March 31, 2021;$1.65 million for June 30, 2021$1.90 million for September 30, 2021$2.10 million for December 31, 2021 and thereafter
“Number of Vessels” means the total number of vessels owned by the Company, including its subsidiaries, or that are subject to sale and leaseback transactions and finance leases, as of the last day of the quarter preceding the relevant dividend declaration date.
As of March 31, 2021, we owned 125 vessels and our Total Cash Balance was at $206.6 million. Adjusted for the Minimum Cash Balance per Vessel for March 31, 2021 of $1.40 million, resulted in total declared dividend amount of approximately $31.0 million or $0.30 per share.
Since Star Bulk is a holding company with no material assets other than the shares of its subsidiaries through which it conducts its operations, Star Bulk’s ability to pay dividends will depend on its subsidiaries distributing their earnings and cash flow to it. Any future dividends declared will be at the discretion and remain subject to approval of our Board each quarter, after its review of our financial condition and other factors, including but not limited to our earnings, prevailing charter market conditions, capital requirements, limitations under our debt agreements and applicable provisions of Marshall Islands law, which generally prohibits the payment of dividends other than from operating surplus or while a company is insolvent or would be rendered insolvent upon the payment of such dividend. Star Bulk’s dividend policy and declaration and payment of dividends may be changed at any time and are subject to legally available funds and the Board’s determination that each declaration and payment is at the time in the best interests of Star Bulk and its shareholders after its review of our financial performance. There can be no assurance that our Board will declare or pay any dividend in the future.
Fleet Update:
On May 19, 2021 we took delivery of SBI Pegasus, the seventh and final vessel, pursuant to the previously announced transaction with ENETI INC (formerly known as Scorpio Bulkers Inc.). We issued to the relevant ENETI affiliates 350,797 common shares representing the share consideration for the seventh vessel and we assumed the outstanding lease obligations associated with the vessel. Following the issuance of these shares the Company has 102,239,716 common shares issued and outstanding.
COVID-19 and Our Proactive Measures
Despite the global gradual recovery from COVID-19, we continue to take proactive measures to ensure the health and wellness of our crew and onshore employees while maintaining effective business continuity and uninterrupted service to our customers. The overall impact of COVID-19 on our business, and the efficacy of any measures we take in response to the challenges presented by the COVID-19 pandemic, will depend on how the outbreak further develops, the duration and extent of the restrictive measures that are associated with the pandemic and their impact on global economy and trade, which is still uncertain.
Employment Overview
Daily Time Charter Equivalent Rate (“TCE”) and TCE Revenues are non-GAAP measures. Please see the table 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, as well as for the definition of the respective measures.
*For the first quarter of 2021 our TCE rate was:
Capesize / Newcastlemax Vessels: $17,986 per day.Post Panamax / Kamsarmax / Panamax Vessels: $14,791 per day.Ultramax / Supramax Vessels: $13,632 per day.
Amounts shown throughout the press release and variations in period–on–period comparisons are derived from the actual unaudited numbers in our books and records. Reference to per share figures below are based on 99,019,944 and 95,916,480 weighted average diluted shares for the first quarter of 2021 and 2020, respectively.
First Quarter 2021 and 2020 Results
For the first quarter of 2021, we had a net income of $35.8 million, or $0.36 earnings per share. Net income for the first quarter of 2020 was $2.8 million, or $0.03 earnings per share.
Adjusted net income, which excludes certain non-cash items, was $35.7 million, or $0.36 earnings per share for the first quarter of 2021, compared to an adjusted net loss for the first quarter of 2020 of $22.3 million, or $0.23 loss per share.
Net cash provided by operating activities for the first quarter of 2021 was $79.2 million, compared to net cash provided by operating activities of $32.1 million for the first quarter of 2020. Adjusted EBITDA, which excludes certain non-cash items, was $84.7 million for the first quarter of 2021, compared to adjusted EBITDA of $32.6 million for the first quarter of 2020.
Voyage revenues for the first quarter of 2021 increased to $200.5 million from $160.9 million in the first quarter of 2020. Time charter equivalent revenues (“TCE Revenues”) (please see the table at the end of this release for the calculation of the TCE Revenues) were $156.4 million for the first quarter of 2021, compared to $99.8 million for the first quarter of 2020. TCE rate for the first quarter of 2021 was $15,461 compared to $10,949 for the first quarter of 2020.
For the first quarters of 2021 and 2020, vessel operating expenses were $47.4 million and $42.7 million, respectively. Vessel operating expenses for the first quarter of 2021 included pre-delivery and pre-joining expenses of $0.5 million and additional crew expenses related to the increased number of crew changes performed during the period as a result of COVID-19 restrictions imposed during 2020 of $1.3 million. Our average daily operating expenses per vessel for the first quarters of 2021 and 2020 were $4,410 and $4,047, respectively. Excluding non-recurring expenses such as pre-delivery and pre-joining expenses and the increased costs due to the COVID-19 pandemic in 2021, our average daily operating expenses per vessel for the first quarter of 2021 were $4,251.
General and administrative expenses for the first quarters of 2021 and 2020 were $7.3 million and $6.0 million, respectively. The increase is mainly attributable to the reversal, in the first quarter of 2020, of the previously recognized stock based compensation expense of $1.2 million following the reassessment of the probability of achieving the performance conditions for some of our outstanding awards. Vessel management fees for the first quarters of 2021 and 2020 were $4.7 million and $4.6 million, respectively. Our average daily net cash general and administrative expenses per vessel (including management fees and excluding stock-based compensation and other non-cash charges) for the first quarters of 2021 and 2020 were $1,087 and $1,064, respectively.
Interest and finance costs net of interest and other income/(loss) for the first quarters of 2021 and 2020 were $12.7 million and $20.1 million, respectively. Despite the increase in the weighted average balance of our outstanding indebtedness to $1,604.5 million during the first quarter of 2021, from $1,593.2 million for the same period in 2020, the interest and finance costs net of interest and other income/ (loss) decreased due to the decrease in the average interest rate on our outstanding indebtedness, mainly driven by the refinancing of certain of our debt agreements, the interest rate swap agreements that we entered into in 2020 and 2021 and the lower LIBOR rates during the first quarter of 2021 compared to the same period in 2020.
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Star Bulk Carriers Corp. Announces Closing of Acquisition of 6 Dry Bulk Vessels From Eneti Inc.

Star Bulk Carriers Corp. (the “Company” or “Star Bulk”) (Nasdaq: SBLK) a global shipping company focusing on the transportation of dry bulk cargoes announced that it has taken delivery of six dry bulk vessels pursuant to the previously announced transaction with ENETI INC. (formerly known as SCORPIO BULKERS INC.). The seventh vessel of the transaction, SBI PEGASUS, is expected to be delivered to the Company within early second quarter of this year.
The Company issued to the ENETI affiliates 2,649,203 common shares representing the shares consideration for the acquisition of the six vessels and assumed outstanding lease obligations of approximately $86.9 million. Following the deliveries today, the Company has 101,888,919 common shares issued and outstanding. All six vessels are employed in the spot market.

Star Bulk Carriers Corp. Announces Acquisition of Two Resale Modern High Specification Kamsarmax Vessels

tar Bulk Carriers Corp. (the “Company” or “Star Bulk”) (Nasdaq: SBLK) a global shipping company focusing on the transportation of dry bulk cargoes, announced that it has entered into a definitive agreement with a third party pursuant to which the Company will acquire two (2) ECO type resale 82k dwt Kamsarmax vessels. The vessels are expected to be delivered to the Company in June and September 2021 respectively directly from YAMIC yard (a joint venture between Mitsui and New Yangzijiang). The Company is in advanced discussions with leading financial institutions to finance the largest part of the purchase price at competitive financing terms.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“In view of the changing regulatory environment with regards to carbon emissions, we believe that the acquisition of these two resale vessels further contributes to our fleet renewal efforts and initiatives. Their 3- to 6-month prompt delivery, combined with an attractive purchase price and the strong fundamentals of the Kamsarmax and dry bulk sector overall, ensure this transaction adds value to the Company and to our shareholders.”

Star Bulk Carriers Corp. Announces a Seven Vessel Transaction With Scorpio Bulkers Inc.

Star Bulk Carriers Corp., a global shipping company focusing on the transportation of dry bulk cargoes announced that it has entered into an agreement with SCORPIO BULKERS INC. (“Scorpio”) (NYSE: SALT) to acquire seven vessels (the “Vessels”), by assuming the outstanding lease obligations of the Vessels which are currently at $102.3 million. As consideration, the Company will issue to Scorpio three million newly issued SBLK shares. The transaction is subject to the approval of the lessor and customary documentation.
The transaction was negotiated by the Company on the basis of NAV to NAV.
Below are the details of the Vessels:
The Vessels are expected to be delivered to the Company within the first and early second quarter of this year.

Star Bulk Carriers Corp. Announces Delivery of Three Capesize Vessels

Star Bulk Carriers Corp. a global shipping company focusing on the transportation of dry bulk cargoes announced today that it has taken delivery of the three capesize vessels E.R. BAYONNE, E.R. BUENOS AIRES and E.R. BORNEO (the “Vessels”) from entities affiliated with E.R. Capital Holding GmbH & Cie. KG (“E.R.” or “Sellers”), pursuant to the transaction previously disclosed on December 17, 2020. The Cash Consideration of the transaction was financed through proceeds of a new five-year term loan from a leading European financial institution.
Following these deliveries, the Company has 99,239,716 common shares issued and outstanding.
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 Singapore. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK”. Star Bulk operates a fleet of 119 vessels, with an aggregate capacity of 13.4 million dwt, consisting of 17 Newcastlemax, 22 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax and 17 Supramax vessels with carrying capacities between 52,425 dwt and 209,537 dwt.