Star Bulk Carriers Corp. Reports Net Profit of $42.4 Million for the Fourth Quarter of 2024, and Declares Quarterly Dividend of $0.09 per Share
Star Bulk Carriers Corp. (SBLK) reported a net profit of $42.4 million for Q4 2024, with voyage revenues of $308.9 million. The company declared a quarterly dividend of $0.09 per share, payable March 18, 2025. The company's TCE revenues increased to $216.8 million, though TCE rate decreased to $16,129 per day compared to $18,296 in Q4 2023.
Under its amended dividend policy, Star Bulk may allocate up to 60% of excess cash flow towards dividends, with the remainder for share buybacks and growth initiatives. The company repurchased 893,474 shares between December 2024 and January 2025 at an average price of $15.08 per share. The company achieved $12.6 million in cost reductions in Q4 alone, reaching an annualized run rate of over $50 million in synergies ahead of schedule.
Star Bulk Carriers Corp. (SBLK) ha riportato un utile netto di 42,4 milioni di dollari per il quarto trimestre del 2024, con ricavi da viaggio pari a 308,9 milioni di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,09 dollari per azione, pagabile il 18 marzo 2025. I ricavi TCE dell'azienda sono aumentati a 216,8 milioni di dollari, anche se il tasso TCE è diminuito a 16.129 dollari al giorno rispetto ai 18.296 dollari del quarto trimestre del 2023.
In base alla sua politica di dividendo modificata, Star Bulk può destinare fino al 60% del flusso di cassa in eccesso ai dividendi, con il resto per riacquisti di azioni e iniziative di crescita. L'azienda ha riacquistato 893.474 azioni tra dicembre 2024 e gennaio 2025 a un prezzo medio di 15,08 dollari per azione. Nel solo quarto trimestre, l'azienda ha raggiunto riduzioni dei costi per 12,6 milioni di dollari, raggiungendo un tasso annualizzato di oltre 50 milioni di dollari in sinergie, anticipando i tempi.
Star Bulk Carriers Corp. (SBLK) reportó una ganancia neta de 42,4 millones de dólares para el cuarto trimestre de 2024, con ingresos por viajes de 308,9 millones de dólares. La compañía declaró un dividendo trimestral de 0,09 dólares por acción, pagadero el 18 de marzo de 2025. Los ingresos TCE de la compañía aumentaron a 216,8 millones de dólares, aunque la tasa TCE disminuyó a 16.129 dólares por día en comparación con 18.296 dólares en el cuarto trimestre de 2023.
Según su política de dividendos enmendada, Star Bulk puede destinar hasta el 60% del flujo de caja excedente a dividendos, con el resto para recompras de acciones e iniciativas de crecimiento. La compañía recompró 893.474 acciones entre diciembre de 2024 y enero de 2025 a un precio promedio de 15,08 dólares por acción. La empresa logró reducciones de costos de 12,6 millones de dólares solo en el cuarto trimestre, alcanzando una tasa anualizada de más de 50 millones de dólares en sinergias antes de lo previsto.
Star Bulk Carriers Corp. (SBLK)는 2024년 4분기에 4,240만 달러의 순이익을 보고했으며, 항해 수익은 3억 8,890만 달러에 달했습니다. 회사는 2025년 3월 18일 지급될 주당 0.09달러의 분기 배당금을 선언했습니다. 회사의 TCE 수익은 2억 1,680만 달러로 증가했지만, TCE 요율은 1일 16,129달러로 감소하여 2023년 4분기의 18,296달러와 비교되었습니다.
수정된 배당 정책에 따라 Star Bulk는 초과 현금 흐름의 최대 60%를 배당금에 할당할 수 있으며, 나머지는 자사주 매입 및 성장 이니셔티브에 사용됩니다. 회사는 2024년 12월과 2025년 1월 사이에 주당 평균 15.08달러에 893,474주를 재매입했습니다. 회사는 4분기 단독으로 1,260만 달러의 비용 절감을 달성했으며, 예정보다 앞서 5천만 달러 이상의 연간 시너지 효과를 달성했습니다.
Star Bulk Carriers Corp. (SBLK) a annoncé un bénéfice net de 42,4 millions de dollars pour le quatrième trimestre 2024, avec des revenus de voyage de 308,9 millions de dollars. La société a déclaré un dividende trimestriel de 0,09 dollar par action, payable le 18 mars 2025. Les revenus TCE de la société ont augmenté à 216,8 millions de dollars, bien que le taux TCE ait diminué à 16 129 dollars par jour par rapport à 18 296 dollars au quatrième trimestre 2023.
Selon sa politique de dividende modifiée, Star Bulk peut allouer jusqu'à 60 % du flux de trésorerie excédentaire aux dividendes, le reste étant destiné aux rachats d'actions et aux initiatives de croissance. L'entreprise a racheté 893 474 actions entre décembre 2024 et janvier 2025 à un prix moyen de 15,08 dollars par action. L'entreprise a réalisé des économies de coûts de 12,6 millions de dollars rien que pour le quatrième trimestre, atteignant un taux annualisé de plus de 50 millions de dollars en synergies, en avance sur le calendrier.
Star Bulk Carriers Corp. (SBLK) meldete einen Nettogewinn von 42,4 Millionen Dollar für das vierte Quartal 2024, mit Reiseeinnahmen von 308,9 Millionen Dollar. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,09 Dollar pro Aktie, zahlbar am 18. März 2025. Die TCE-Einnahmen des Unternehmens stiegen auf 216,8 Millionen Dollar, während der TCE-Satz auf 16.129 Dollar pro Tag im Vergleich zu 18.296 Dollar im vierten Quartal 2023 sank.
Gemäß seiner geänderten Dividendenpolitik kann Star Bulk bis zu 60% des überschüssigen Cashflows für Dividenden verwenden, während der Rest für Aktienrückkäufe und Wachstumsinitiativen vorgesehen ist. Das Unternehmen hat zwischen Dezember 2024 und Januar 2025 893.474 Aktien zu einem Durchschnittspreis von 15,08 Dollar pro Aktie zurückgekauft. Das Unternehmen erzielte allein im vierten Quartal Einsparungen von 12,6 Millionen Dollar und erreichte einen annualisierten Runrate von über 50 Millionen Dollar an Synergien vor dem Zeitplan.
- Net profit increased to $42.4 million in Q4 2024 from $39.7 million in Q4 2023
- Voyage revenues increased to $308.9 million from $263.5 million YoY
- TCE revenues grew to $216.8 million from $191.9 million YoY
- Achieved $12.6 million in cost reductions in Q4 2024
- Successfully raised new debt and refinanced existing facilities on improved terms
- TCE rate decreased to $16,129 per day from $18,296 per day YoY
- Daily operating expenses increased to $5,164 from $4,991 per vessel YoY
- Charter-in hire expenses increased significantly to $26.2 million from $3.7 million YoY
- Quarterly dividend decreased to $0.09 from $0.45 YoY
ATHENS, Greece, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the fourth quarter of 2024 and the year ended December 31, 2024. Unless otherwise indicated or unless the context requires otherwise, all references in this press release to "we," "us," "our," or similar references, mean Star Bulk Carriers Corp. and, where applicable, its consolidated subsidiaries.
Financial Highlights
| (Expressed in thousands of U.S. dollars, except for daily rates and per share data) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||
| Voyage Revenues | |||||||||
| Net income | |||||||||
| Adjusted Net income (1) | |||||||||
| Net cash provided by operating activities | |||||||||
| EBITDA (2) | |||||||||
| Adjusted EBITDA (2) | |||||||||
| Earnings per share basic | |||||||||
| Earnings per share diluted | |||||||||
| Adjusted earnings per share basic (1) | |||||||||
| Adjusted earnings per share diluted (1) | |||||||||
| Dividend per share for the relevant period | |||||||||
| Average Number of Vessels | 153.1 | 117.8 | 144.3 | 123.3 | |||||
| TCE Revenues (3) | |||||||||
| Daily Time Charter Equivalent Rate ("TCE") (3) | |||||||||
| Daily OPEX per vessel (4) | |||||||||
| Daily OPEX per vessel (as adjusted) (4) | |||||||||
| Daily Net Cash G&A expenses per vessel (excluding one-time expenses) (5) | |||||||||
(1) Adjusted Net income, Adjusted earnings per share basic and Adjusted earnings per share diluted are non-GAAP measures. Please see EXHIBIT I at the end of this release for a reconciliation to Net income and earnings per share, which are the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as for the definition of each measure.
(2) EBITDA and Adjusted EBITDA are non-GAAP liquidity measures. Please see EXHIBIT I at the end of this release for a reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by / (Used in) Operating Activities, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, as well as for the definition of each measure. To derive Adjusted EBITDA from EBITDA, we exclude certain non-cash gains / (losses) and one-time expenses.
(3) Daily Time Charter Equivalent Rate (“TCE”) and TCE Revenues are non-GAAP measures. Please see EXHIBIT I at the end of this release for a reconciliation to Voyage Revenues, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. The definition of each measure is provided in footnote (7) to the Summary of Selected Data table below.
(4) Daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days (defined below). Daily OPEX per vessel (as adjusted) is calculated by dividing vessel operating expenses excluding increased costs due to the COVID-19 pandemic or pre-delivery expenses for each vessel on acquisition or change of management, if any, by Ownership days. In the future we may incur expenses that are the same as or similar to certain expenses (as described above) that were previously excluded.
(5) Daily Net Cash G&A expenses per vessel is calculated by (1) adding the Management fee expense to the General and Administrative expenses, net of share-based compensation expense and other non-cash charges and one-time expenses and (2) then dividing the result by the sum of Ownership days and Charter-in days (defined below). Please see EXHIBIT I at the end of this release for a reconciliation to General and administrative expenses, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Petros Pappas, Chief Executive Officer of Star Bulk, commented:
“Star Bulk reported for the fourth quarter of 2024 Net Income of
Recently, we announced an amended dividend policy alongside a new
On the operational front, we have made significant progress in integrating systems and processes, creating a best-in-class ship-owning and management platform that combines the strengths of both Star Bulk and ex-Eagle Bulk. Delivering on our commitment to synergies, we have cumulatively reduced costs by
From a financing perspective, we continue to benefit from strong interest by major financial institutions in lending to Star Bulk. We have successfully raised new debt and refinanced existing facilities on highly attractive terms, reducing costs while extending maturities.
As environmental regulations become increasingly stringent, Star Bulk continues to invest in technology, expertise and personnel both to comply with new EU environmental regulations and prepare for upcoming global mandates.
Looking ahead, while the first quarter is traditionally weaker and geopolitical uncertainties persist, we remain cautiously optimistic about the medium-term outlook for the dry bulk market. The orderbook remains low, with limited incentive for new vessel orders given current pricing and market conditions, despite an aging global fleet. With our strong balance sheet, scale, and deep industry expertise, Star Bulk is well positioned to capitalize on future opportunities and continue delivering value to our shareholders.”
Recent Developments
Declaration of Dividend
On February 18, 2025, pursuant to our dividend policy, as amended and announced on December 16, 2024 (our “Dividend Policy”), our Board of Directors declared a quarterly cash dividend of
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1 As per our Dividend Policy, “Cash Flow” is any cash flow from operations less debt amortization, less maintenance/upgrade CAPEX less any deficit of cash below
Share Repurchase Program & Shares Outstanding Update
On December 13, 2024, our Board of Directors cancelled the existing
As of the date of this release, we have 117,127,531 shares outstanding and
Fleet Update
Vessels’ S&P
In connection with the previously announced vessel sales, the vessels Star Hydrus, Imperial Eagle and Diva were delivered to their new owners on November 21, 2024, November 27, 2024 and December 27, 2024, respectively.
Furthermore, on February 6, 2025, we agreed to sell the vessel Bittern, which is expected to be delivered to its new owner within the second quarter of 2025.
Interest Rate Swaps
Following a number of interest rate swaps we have entered into, we currently have an outstanding total notional amount of
Financing
In December 2024, we received credit committee approval from Taipei Fubon Commercial Bank Co., Ltd. for a loan amount of up to
In January 2025, we entered into a loan agreement with ING Bank N.V., London Branch for a loan amount of up to
Following the prepayment of the ING
In February 2025, we received a credit committee approval from ABN AMRO N.V. for a senior secured revolving facility of an amount of up to
The prepayment of the outstanding amount of
Following the completion of the refinancings and the prepayments described above, until the end of the first quarter of 2025, we will have 13 unencumbered vessels and we will have raised additional cash of approximately
Vessel Employment Overview
Time Charter Equivalent Rate (“TCE rate”) is a non-GAAP measure. Please see EXHIBIT I at the end of this release for a reconciliation to Voyage Revenues, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Our TCE rate per day per main vessel category was as follows:
| Fourth quarter 2024 | Twelve months ended December 31, 2024 | ||||||
| Capesize / Newcastlemax Vessels: | $ | 26,317 | $ | 27,998 | |||
| Post Panamax / Kamsarmax / Panamax Vessels: | $ | 12,328 | $ | 15,020 | |||
| Ultramax / Supramax Vessels: | $ | 13,732 | $ | 15,543 | |||
Amounts shown throughout the press release and variations in period–over–period comparisons are derived from the actual unaudited numbers in our books and records. Reference to per share figures below are based on 118,324,103 and 87,364,379 weighted average diluted shares for the fourth quarter of 2024 and 2023, respectively.
Fourth Quarter 2024 and 2023 Results
For the fourth quarter of 2024, we had net income of
Net cash provided by operating activities for the fourth quarter of 2024 was
Voyage revenues for the fourth quarter of 2024 increased to
Charter-in hire expenses for the fourth quarter of 2024 increased to
Vessel operating expenses for the fourth quarters of 2024 and 2023 amounted to
Dry docking expenses for the fourth quarters of 2024 and 2023 were
General and administrative expenses for the fourth quarters of 2024 and 2023 were
Depreciation expense increased to
Our results for the fourth quarter of 2024 include an impairment loss of
Our results for the fourth quarter of 2024 include an aggregate net gain of
Our results for the fourth quarters of 2024 and 2023 include a loss on write-down of inventories of
Interest income and other income/(loss) for the fourth quarters of 2024 and 2023 amounted to
Gain/(Loss) on derivative financial instruments, net for the fourth quarters of 2024 and 2023 amounted to a loss of
__________________________
1 Please see the table at the end of this release for the calculation of the TCE Revenues.
Unaudited Consolidated Income Statements
(Expressed in thousands of U.S. dollars except for share and per share data) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||||||
| Revenues: | |||||||||||||||||
| Voyage revenues | $ | 308,916 | $ | 263,461 | $ | 1,265,458 | $ | 949,269 | |||||||||
| Total revenues | 308,916 | 263,461 | 1,265,458 | 949,269 | |||||||||||||
| Expenses: | |||||||||||||||||
| Voyage expenses | (66,285 | ) | (67,621 | ) | (266,225 | ) | (253,843 | ) | |||||||||
| Charter-in hire expenses | (26,191 | ) | (3,730 | ) | (58,003 | ) | (17,656 | ) | |||||||||
| Vessel operating expenses | (72,756 | ) | (54,102 | ) | (274,991 | ) | (221,327 | ) | |||||||||
| Dry docking expenses | (20,256 | ) | (11,503 | ) | (62,728 | ) | (41,969 | ) | |||||||||
| Depreciation | (44,035 | ) | (33,880 | ) | (164,055 | ) | (138,429 | ) | |||||||||
| Management fees | (5,280 | ) | (4,071 | ) | (18,956 | ) | (16,809 | ) | |||||||||
| Loss on bad debt | (308 | ) | - | (308 | ) | (300 | ) | ||||||||||
| General and administrative expenses | (18,986 | ) | (18,093 | ) | (70,778 | ) | (54,413 | ) | |||||||||
| Gain/(Loss) on forward freight agreements and bunker swaps, net | 206 | (7,713 | ) | (4,033 | ) | (1,336 | ) | ||||||||||
| Impairment loss | (1,800 | ) | (10,138 | ) | (1,800 | ) | (17,838 | ) | |||||||||
| Other operational loss | (934 | ) | (343 | ) | (2,326 | ) | (952 | ) | |||||||||
| Other operational gain | 330 | 156 | 4,740 | 33,980 | |||||||||||||
| Gain on sale of vessels | 11,288 | 10,566 | 43,287 | 29,399 | |||||||||||||
| Loss on write-down of inventory | (1,684 | ) | (3,753 | ) | (6,286 | ) | (9,318 | ) | |||||||||
| Operating income | 62,225 | 59,236 | 382,996 | 238,458 | |||||||||||||
| Interest and finance costs | (21,316 | ) | (21,530 | ) | (91,827 | ) | (71,319 | ) | |||||||||
| Interest income and other income/(loss) | 1,968 | 4,963 | 16,378 | 15,228 | |||||||||||||
| Gain/(Loss) on derivative financial instruments, net | (259 | ) | (3,032 | ) | (1,861 | ) | (3,539 | ) | |||||||||
| Gain/(Loss) on debt extinguishment, net | (132 | ) | 28 | (1,144 | ) | (5,149 | ) | ||||||||||
| Total other expenses, net | (19,739 | ) | (19,571 | ) | (78,454 | ) | (64,779 | ) | |||||||||
| Income before taxes and equity in income/(loss) of investee | $ | 42,486 | $ | 39,665 | $ | 304,542 | $ | 173,679 | |||||||||
| Income tax (expense)/refund | - | (2 | ) | 116 | (183 | ) | |||||||||||
| Income before equity in income/(loss) of investee | 42,486 | 39,663 | 304,658 | 173,496 | |||||||||||||
| Equity in income/(loss) of investee | (40 | ) | 44 | (4 | ) | 60 | |||||||||||
| Net income | $ | 42,446 | $ | 39,707 | $ | 304,654 | $ | 173,556 | |||||||||
| Earnings per share, basic | $ | 0.36 | $ | 0.46 | $ | 2.85 | $ | 1.76 | |||||||||
| Earnings per share, diluted | $ | 0.36 | $ | 0.45 | $ | 2.80 | $ | 1.75 | |||||||||
| Weighted average number of shares outstanding, basic | 117,590,189 | 86,657,095 | 106,883,330 | 98,457,929 | |||||||||||||
| Weighted average number of shares outstanding, diluted | 118,324,103 | 87,364,379 | 108,702,988 | 98,928,011 | |||||||||||||
Unaudited Consolidated Condensed Balance Sheet Data
| (Expressed in thousands of U.S. dollars) | |||||||
| ASSETS | December 31, 2024 | December 31, 2023 | |||||
| Cash and cash equivalents and resticted cash, current | $ | 436,284 | 259,729 | ||||
| Vessel held for sale | - | 15,190 | |||||
| Other current assets | 222,689 | 179,478 | |||||
| TOTAL CURRENT ASSETS | 658,973 | 454,397 | |||||
| Advances for vessels under construction | 27,526 | - | |||||
| Vessels and other fixed assets, net | 3,208,357 | 2,539,743 | |||||
| Restricted cash, non current | 4,596 | 2,021 | |||||
| Other non-current assets | 186,926 | 32,094 | |||||
| TOTAL ASSETS | $ | 4,086,378 | $ | 3,028,255 | |||
| Current portion of long-term bank loans and lease financing | 223,878 | 251,856 | |||||
| Other current liabilities | 175,934 | 107,507 | |||||
| TOTAL CURRENT LIABILITIES | 399,812 | 359,363 | |||||
| Long-term bank loans and lease financing non-current (net of unamortized deferred finance fees of | 1,047,659 | 985,247 | |||||
| Other non-current liabilities | 157,132 | 23,575 | |||||
| TOTAL LIABILITIES | $ | 1,604,603 | $ | 1,368,185 | |||
| SHAREHOLDERS' EQUITY | 2,481,775 | 1,660,070 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,086,378 | $ | 3,028,255 | |||
Unaudited Consolidated Condensed Cash Flow Data
| (Expressed in thousands of U.S. dollars) | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | ||||||||
| Net cash provided by / (used in) operating activities | $ | 471,154 | $ | 335,777 | ||||||
| Acquisition of other fixed assets | (405 | ) | (152 | ) | ||||||
| Capital expenditures for acquisitions/vessel modifications/upgrades and advances for vessels under construction | (54,690 | ) | (17,939 | ) | ||||||
| Cash proceeds from vessel sales and total loss | 303,232 | 250,968 | ||||||||
| Cash received from Eagle Merger | 104,325 | - | ||||||||
| Hull and machinery insurance proceeds | 3,716 | 2,641 | ||||||||
| Net cash provided by / (used in) investing activities | 356,178 | 235,518 | ||||||||
| Proceeds from vessels' new debt | 388,120 | 441,405 | ||||||||
| Scheduled vessels' debt repayment | (206,423 | ) | (173,007 | ) | ||||||
| Debt prepayment due to vessel total loss and sales | (148,211 | ) | (319,563 | ) | ||||||
| Prepayment of Eagle assumed debt | (375,500 | ) | - | |||||||
| Financing and debt extinguishment fees paid | (3,779 | ) | (6,588 | ) | ||||||
| Offering expenses | (96 | ) | (141 | ) | ||||||
| Proceeds from issuance of common stock | - | 13,165 | ||||||||
| Repurchase of common shares | (25,305 | ) | (393,108 | ) | ||||||
| Dividends paid | (277,008 | ) | (158,052 | ) | ||||||
| Net cash provided by / (used in) financing activities | (648,202 | ) | (595,889 | ) | ||||||
Summary of Selected Data
| Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||
| Average number of vessels (1) | 153.1 | 117.8 | 144.3 | 123.3 | ||||||||
| Number of vessels (2) | 151 | 116 | 151 | 116 | ||||||||
| Average age of operational fleet (in years) (3) | 12.1 | 11.8 | 12.1 | 11.8 | ||||||||
| Ownership days (4) | 14,088 | 10,840 | 52,796 | 44,999 | ||||||||
| Available days (5) | 13,439 | 10,490 | 50,649 | 43,357 | ||||||||
| Charter-in days (6) | 1,181 | 123 | 2,974 | 756 | ||||||||
| Daily Time Charter Equivalent Rate (7) | ||||||||||||
| Daily OPEX per vessel (8) | ||||||||||||
| Daily OPEX per vessel (as adjusted) (8) | ||||||||||||
| Daily Net Cash G&A expenses per vessel (excluding one-time expenses) (9) | ||||||||||||
(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 each period presented.
(3) Average age of our 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, including vessels subject to sale and leaseback transactions and finance leases.
(5) Available days are the Ownership days after subtracting off-hire days for major repairs, dry docking or special or intermediate surveys, change of management and vessels’ improvements and upgrades. The available days for the nine month period ended September 30, 2023, were also decreased by off-hire days relating to disruptions in connection with crew changes as a result of the COVID-19 pandemic. Our method of computing Available Days may not necessarily be comparable to Available Days of other companies.
(6) Charter-in days are the total days that we charter-in third party vessels.
(7) Time charter equivalent rate represents the weighted average daily TCE rates of our operating fleet (including owned fleet and charter-in vessels). TCE rate is a measure of the average daily net revenue performance of our operating fleet. Our method of calculating TCE rate is determined by dividing (a) TCE Revenues, which consists of Voyage Revenues net of voyage expenses, charter-in hire expense, amortization of fair value of above/below market acquired time charter agreements, if any, as well as adjusted for the impact of realized gain/(loss) on forward freight agreements (“FFAs”) and bunker swaps by (b) Available days for the relevant time period. Available days do not include the Charter-in days as per the relevant definitions provided above. 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. In the calculation of TCE Revenues, we also include the realized gain/(loss) on FFAs and bunker swaps as we believe that this method better reflects the chartering result of our fleet and is more comparable to the method used by some of our peers. TCE Revenues and TCE rate, which are non-GAAP measures, provide additional meaningful information in conjunction with Voyage Revenues, the most directly comparable GAAP measure, because they assist our management in making decisions regarding the deployment and use of our vessels and because we believe that they provide useful information to investors regarding our financial performance. 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 Revenues and TCE rate may not necessarily be comparable to those of other companies. For a detailed calculation please see EXHIBIT I at the end of this release with the reconciliation of Voyage Revenues to TCE.
(8) Daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days. Daily OPEX per vessel (as adjusted) is calculated by dividing vessel operating expenses excluding increased costs due to the COVID-19 pandemic or pre-delivery expenses for each vessel on acquisition or change of management, if any, by Ownership days. We exclude the abovementioned expenses that may occur occasionally from our Daily OPEX per vessel, since these generally represent items that we would not anticipate occurring as part of our normal business on a regular basis. We believe that Daily OPEX per vessel (as adjusted) is a useful measure for our management and investors for period to period comparison with respect to our operating cost performance since such measure eliminates the effects of the items described above, which may vary from period to period, are not part of our daily business and derive from reasons unrelated to overall operating performance. In the future we may incur expenses that are the same as or similar to certain expenses (as described above) that were previously excluded. Vessel operating expenses for the year ended December 31, 2023 included additional crew expenses related to the increased number and cost of crew changes performed during the period as a result of COVID-19 restrictions imposed in 2020 estimated to
(9) Please see EXHIBIT I at the end of this release for the reconciliation to General and administrative expenses, the most directly comparable GAAP measure. We believe that Daily Net Cash G&A expenses per vessel (excluding one-time expenses) 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 and one-time expenses which may vary from period to period, are not part of our daily business and derive from reasons unrelated to overall operating performance. In the future we may incur expenses that are the same as or similar to certain expenses (as described above) that were previously excluded.
EXHIBIT I: Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA Reconciliation
We include EBITDA (earnings before interest, taxes, depreciation and amortization) herein since it is a basis upon which we assess our liquidity position, and we believe that it presents useful information to investors regarding our ability to service and/or incur indebtedness.
To derive Adjusted EBITDA from EBITDA, we exclude non-cash gains/(losses) such as those related to sale of vessels, share-based compensation expense, impairment loss, loss from bad debt, unrealized gain/(loss) on derivatives and the equity in income/(loss) of investee and other non-cash charges and one-time expenses, 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.
EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to cash flow from operating activities or Net income, as determined by United States generally accepted accounting principles, or U.S. GAAP. Our method of computing EBITDA and Adjusted EBITDA may not necessarily be comparable to other similarly titled captions of other companies.
The following table reconciles net cash provided by operating activities to EBITDA and Adjusted EBITDA:
| (Expressed in thousands of U.S. dollars) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | ||||||||||||||
| Net cash provided by/(used in) operating activities | $ | 76,298 | $ | 88,604 | $ | 471,154 | $ | 335,777 | ||||||||||
| Net decrease/(increase) in operating assets | (6,884 | ) | (7,487 | ) | (25,316 | ) | (5,149 | ) | ||||||||||
| Net increase/(decrease) in operating liabilities, excluding operating lease liability and including other non-cash charges | 16,243 | 15,325 | 6,765 | (6,120 | ) | |||||||||||||
| Impairment loss | (1,800 | ) | (10,138 | ) | (1,800 | ) | (17,838 | ) | ||||||||||
| Gain/(Loss) on debt extinguishment, net | (132 | ) | 28 | (1,144 | ) | (5,149 | ) | |||||||||||
| Share – based compensation | (5,057 | ) | (8,176 | ) | (18,328 | ) | (20,877 | ) | ||||||||||
| Amortization of debt (loans & leases) issuance costs | (919 | ) | (860 | ) | (3,583 | ) | (3,661 | ) | ||||||||||
| Unrealized gain/(loss) on forward freight agreements and bunker swaps, net | (107 | ) | (7,531 | ) | 5,671 | (9,662 | ) | |||||||||||
| Unrealized gain/(loss) on interest rate swaps, net | (419 | ) | (3,032 | ) | (2,299 | ) | (3,539 | ) | ||||||||||
| Total other expenses, net | 19,739 | 19,571 | 78,454 | 64,779 | ||||||||||||||
| Gain from insurance proceeds relating to vessel total loss | - | - | - | 28,163 | ||||||||||||||
| Loss on bad debt | (308 | ) | - | (308 | ) | (300 | ) | |||||||||||
| Income tax expense/(refund) | - | 2 | (116 | ) | 183 | |||||||||||||
| Gain on sale of vessels | 11,288 | 10,566 | 43,287 | 29,399 | ||||||||||||||
| Gain from Hull & Machinery claim | - | - | 898 | 200 | ||||||||||||||
| Loss on write-down of inventory | (1,684 | ) | (3,753 | ) | (6,286 | ) | (9,318 | ) | ||||||||||
| Equity in income/(loss) of investee | (40 | ) | 44 | (4 | ) | 60 | ||||||||||||
| EBITDA | $ | 106,218 | $ | 93,163 | $ | 547,045 | $ | 376,948 | ||||||||||
| Equity in (income)/loss of investee | 40 | (44 | ) | 4 | (60 | ) | ||||||||||||
| Unrealized (gain)/loss on forward freight agreements and bunker swaps, net | 107 | 7,531 | (5,671 | ) | 9,662 | |||||||||||||
| Gain on sale of vessels | (11,288 | ) | (10,566 | ) | (43,287 | ) | (29,399 | ) | ||||||||||
| Loss on write-down of inventory | 1,684 | 3,753 | 6,286 | 9,318 | ||||||||||||||
| Gain from insurance proceeds relating to vessel total loss | - | - | - | (28,163 | ) | |||||||||||||
| Share-based compensation | 5,057 | 8,176 | 18,328 | 20,877 | ||||||||||||||
| Loss on bad debt | 308 | - | 308 | 300 | ||||||||||||||
| Impairment loss | 1,800 | 10,138 | 1,800 | 17,838 | ||||||||||||||
| Other non-cash charges | (87 | ) | 165 | (190 | ) | 170 | ||||||||||||
| One-time expenses | - | 1,720 | - | 1,720 | ||||||||||||||
| Adjusted EBITDA | $ | 103,839 | $ | 114,036 | $ | 524,623 | $ | 379,211 | ||||||||||
Net income and Adjusted Net income Reconciliation and Calculation of Adjusted Earnings Per Share
To derive Adjusted Net Income and Adjusted Earnings Per Share from Net Income, we exclude non-cash items and one-time expenses, as provided in the table below. We believe that Adjusted Net Income and Adjusted Earnings 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 non-cash items such as gain/(loss) on sale of assets, unrealized gain/(loss) on derivatives, impairment loss and one-time expenses which may vary from period to period, for 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 with GAAP measures alone. Our method of computing Adjusted Net Income and Adjusted Earnings Per Share may not necessarily be comparable to other similarly titled captions of other companies. In the future we may incur expenses that are the same as or similar to certain expenses, as described above, that were previously excluded.
| (Expressed in thousands of U.S. dollars except for share and per share data) | |||||||||||||||||
| Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | ||||||||||||||
| Net income | $ | 42,446 | $ | 39,707 | $ | 304,654 | $ | 173,556 | |||||||||
| Loss on bad debt | 308 | - | 308 | 300 | |||||||||||||
| Share – based compensation | 5,057 | 8,176 | 18,328 | 20,877 | |||||||||||||
| Other non-cash charges | (87 | ) | 165 | (190 | ) | 170 | |||||||||||
| Unrealized (gain)/loss on forward freight agreements and bunker swaps, net | 107 | 7,531 | (5,671 | ) | 9,662 | ||||||||||||
| Unrealized (gain)/loss on interest rate swaps, net | 419 | 3,032 | 2,299 | 3,539 | |||||||||||||
| Gain on sale of vessels | (11,288 | ) | (10,566 | ) | (43,287 | ) | (29,399 | ) | |||||||||
| Impairment loss | 1,800 | 10,138 | 1,800 | 17,838 | |||||||||||||
| Gain from insurance proceeds relating to vessel total loss | - | - | - | (28,163 | ) | ||||||||||||
| Loss on write-down of inventory | 1,684 | 3,753 | 6,286 | 9,318 | |||||||||||||
| (Gain)/Loss on debt extinguishment, net (non-cash) | 104 | (74 | ) | 1,058 | 2,889 | ||||||||||||
| Equity in (income)/loss of investee | 40 | (44 | ) | 4 | (60 | ) | |||||||||||
| One-time expenses | - | 1,720 | - | 1,720 | |||||||||||||
| Adjusted Net income | $ | 40,590 | $ | 63,538 | $ | 285,589 | $ | 182,247 | |||||||||
| Weighted average number of shares outstanding, basic | 117,590,189 | 86,657,095 | 106,883,330 | 98,457,929 | |||||||||||||
| Weighted average number of shares outstanding, diluted | 118,324,103 | 87,364,379 | 108,702,988 | 98,928,011 | |||||||||||||
| Adjusted Basic Earnings Per Share | $ | 0.35 | $ | 0.73 | $ | 2.67 | $ | 1.85 | |||||||||
| Adjusted Diluted Earnings Per Share | $ | 0.34 | $ | 0.73 | $ | 2.63 | $ | 1.84 | |||||||||
Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation
(In thousands of U.S. Dollars, except for TCE rates) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||||||
| Voyage revenues | $ | 308,916 | $ | 263,461 | $ | 1,265,458 | $ | 949,269 | |||||||||
| Less: | |||||||||||||||||
| Voyage expenses | (66,285 | ) | (67,621 | ) | (266,225 | ) | (253,843 | ) | |||||||||
| Charter-in hire expenses | (26,191 | ) | (3,730 | ) | (58,003 | ) | (17,656 | ) | |||||||||
| Realized gain/(loss) on FFAs/bunker swaps, net | 313 | (182 | ) | (9,704 | ) | 8,326 | |||||||||||
| Time Charter equivalent revenues | $ | 216,753 | $ | 191,928 | $ | 931,526 | $ | 686,096 | |||||||||
| Available days | 13,439 | 10,490 | 50,649 | 43,357 | |||||||||||||
| Daily Time Charter Equivalent Rate ("TCE") | $ | 16,129 | $ | 18,296 | $ | 18,392 | $ | 15,824 | |||||||||
Daily Net Cash G&A expenses per vessel Reconciliation
| (In thousands of U.S. Dollars, except for daily rates) | Fourth quarter 2024 | Fourth quarter 2023 | Twelve months ended December 31, 2024 | Twelve months ended December 31, 2023 | |||||||||||||
| General and administrative expenses | $ | 18,986 | $ | 18,093 | $ | 70,778 | $ | 54,413 | |||||||||
| Plus: | |||||||||||||||||
| Management fees | 5,280 | 4,071 | 18,956 | 16,809 | |||||||||||||
| Less: | |||||||||||||||||
| Share – based compensation | (5,057 | ) | (8,176 | ) | (18,328 | ) | (20,877 | ) | |||||||||
| Other non-cash charges | 87 | (165 | ) | 190 | (170 | ) | |||||||||||
| One-time expenses | - | (1,720 | ) | - | (1,720 | ) | |||||||||||
| Net Cash G&A expenses (excluding one-time expenses) | $ | 19,296 | $ | 12,103 | $ | 71,596 | $ | 48,455 | |||||||||
| Ownership days | 14,088 | 10,840 | 52,796 | 44,999 | |||||||||||||
| Charter-in days | 1,181 | 123 | 2,974 | 756 | |||||||||||||
| Daily Net Cash G&A expenses per vessel (excluding one-time expenses) | $ | 1,264 | $ | 1,104 | $ | 1,284 | $ | 1,059 | |||||||||
Conference Call details:
Our management team will host a conference call to discuss our financial results on Wednesday, February 19, 2025 at 11:00 a.m. Eastern Time (ET).
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and Standard International Dial In), or +0 800 756 3429 (UK Toll Free Dial In). Please quote “Star Bulk Carriers” to the operator and/or conference ID 13751689. Click here for additional participant International Toll-Free access numbers.
Alternatively, participants can register for the call using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.
Slides and audio webcast:
There will also be a live, and then archived, webcast of the conference call and accompanying slides, available through the Company’s website. To listen to the archived audio file, visit our website www.starbulk.com and click on Events & Presentations. 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, minerals 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, New York, Stamford and Singapore. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK”. As of the date of this release on a fully delivered basis and as adjusted for the delivery of a) the vessel agreed to be sold as discussed above and b) the five firm Kamsarmax vessels currently under construction, we own a fleet of 155 vessels, with an aggregate capacity of 15.0 million dwt consisting of 17 Newcastlemax, 15 Capesize, 1 Mini Capesize, 7 Post Panamax, 44 Kamsarmax, 1 Panamax, 48 Ultramax and 22 Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt.
In addition, in November 2021 we took delivery of the Capesize vessel Star Shibumi, under a long-term charter-in contract for a period up to November 2028. In January 2024 we took delivery of vessels Star Voyager, Star Explorer and Stargazer, in June 2024 we took delivery of the vessel Star Earendel, in October 2024 we took delivery of the vessel Star Illusion and in November 2024 we took delivery of the vessel Star Thetis, each subject to a seven-year charter-in arrangement.
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.
We desire 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. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “projects,” “likely,” “will,” “would,” “could,” “should,” “may,” “forecasts,” “potential,” “continue,” “possible” and similar expressions or phrases may 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 our management of historical operating trends, data contained in our records and other data available from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the possibility that costs or difficulties related to the integration of the Company's and Eagle's operations will be greater than expected; the possibility that the expected synergies and value creation from the Eagle Merger will not be realized, or will not be realized within the expected time period; transaction costs related to the Eagle Merger; general dry bulk shipping market conditions, including fluctuations in charter rates and vessel values; the strength of world economies; the stability of Europe and the Euro; fluctuations in currencies, interest rates and foreign exchange rates; business disruptions due to natural disasters or other disasters outside our control, such as the impact of any future epidemics; the length and severity of epidemics and pandemics, including their impact on the demand for seaborne transportation in the dry bulk sector; changes in supply and demand in the dry bulk shipping industry, including the market for our vessels and the number of newbuildings under construction; the potential for technological innovation in the sector in which we operate and any corresponding reduction in the value of our vessels or the charter income derived therefrom; changes in our expenses, including bunker prices, dry docking, crewing and insurance costs; changes in governmental rules and regulations or actions taken by regulatory authorities; potential liability from pending or future litigation and potential costs due to environmental damage and vessel collisions; the impact of increasing scrutiny and changing expectations from investors, lenders, charterers and other market participants with respect to our Environmental, Social and Governance (“ESG”) practices; our ability to carry out our ESG initiatives and thereby meet our ESG goals and targets; new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or regional/national level imposed by regional authorities such as the European Union or individual countries; potential cyber-attacks which may disrupt our business operations; general domestic and international political conditions or events, including “trade wars”, the ongoing conflict between Russia and Ukraine, the conflict between Israel and Hamas and related conflicts in the Middle East and the Houthi attacks in the Red Sea and the Gulf of Aden; the impact on our common shares and reputation if our vessels were to call on ports located in countries that are subject to restrictions imposed by the U.S. or other governments; potential physical disruption of shipping routes due to accidents, climate-related reasons (acute and chronic), political events, public health threats, international hostilities and instability, piracy or acts by terrorists; the availability of financing and refinancing; the failure of our contract counterparties to meet their obligations; our ability to meet requirements for additional capital and financing to grow our business; the impact of our indebtedness and the compliance with the covenants included in our debt agreements; vessel breakdowns and instances of off‐hire; 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; our ability to complete acquisition transactions as and when planned and upon the expected terms; and the impact of port or canal congestion or disruptions. 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: | Investor Relations / Financial Media: |
| Simos Spyrou, Christos Begleris | Nicolas Bornozis |
| Co ‐ Chief Financial Officers | President |
| Star Bulk Carriers Corp. | Capital Link, Inc. |
| c/o Star Bulk Management Inc. | 230 Park Avenue, Suite 1536 |
| 40 Ag. Konstantinou Av. | New York, NY 10169 |
| Maroussi 15124 | Tel. (212) 661‐7566 |
| Athens, Greece | E‐mail: starbulk@capitallink.com |
| Email: info@starbulk.com | www.capitallink.com |
| www.starbulk.com |
FAQ
What is Star Bulk's (SBLK) dividend for Q4 2024?
How many shares did SBLK repurchase in December 2024 and January 2025?
What was SBLK's net profit for Q4 2024?
How much cost reduction did SBLK achieve in Q4 2024?
What was SBLK's TCE rate in Q4 2024 compared to Q4 2023?
