Star Bulk has revealed its third quarter results

For 3Q23, the company had a net income of US$43.7 million, or US$0.45 earnings per share, compared to a net income for 3Q22 of US$109.7 million, or US$1.07 earnings per share. Adjusted net income, which excludes certain non-cash items, was US$33.1 million, or US$0.34 earnings per share, for 3Q23, compared to an adjusted net income of US$136.3 million for 3Q22, or US$1.33 earnings per share.

Net cash provided by operating activities for 3Q23 was US$68.5 million, compared to US$184.5 million for 3Q22. Adjusted EBITDA, which excludes certain non-cash items, was US$84.2 million for the 3Q23, compared to US$189.9 million for 3Q22.

Voyage revenues for 3Q23 decreased to US$223.1 million from US$364.1 million in the 3Q22 and time charter equivalent revenues (TCE Revenues) were US$162.5 million for 3Q23, compared to US$266.7 million for 3Q22. TCE rate for 3Q23 was US$15 068 /d compared to US$24 365 /d for 3Q22 which is indicative of the weaker market conditions continuing to prevail during the recent quarter.

For 3Q23 and 3Q22, vessel operating expenses were US$54.9 million and US$60.1 million, respectively. The decrease was mainly due to the decrease in the average number of vessels in the company's fleet to 121.5 in 3Q23 from 128.0 in 3Q22. Vessel operating expenses for 3Q23 included additional US$0.7 million pre-delivery expenses, due to change of management of certain vessels from third party to in-house.

Drydocking expenses for 3Q23 and 3Q22 were US$11.6 million and US$9.8 million, respectively. During both periods eight vessels completed their periodic dry docking surveys.

General and administrative expenses for 3Q23 and 3Q22 were US$13.6 million and US$18.4 million, respectively. The stock based compensation expense for 3Q23 decreased to US$6.3 million compared to US$11.9 million for 3Q22. Vessel management fees for 3Q23 decreased to US$4.3 million from US$4.9 million, due to the change of management of certain vessels, from third party to in-house. The daily net cash general and administrative expenses per vessel (including management fees and excluding share-based compensation and other non-cash charges) for 3Q23 and 3Q22 were US$1024 and US$950, respectively.

Depreciation expense decreased to US$34.5 million for 3Q23 compared to US$39.6 million for the corresponding period in 2022. The decrease was primarily driven by the change in the estimated scrap rate per light weight ton from US$300 to US$400 effective 1 January 2023, which resulted in lower depreciation expense by US$3.9 million in 3Q23, together with the decrease in the average number of vessels in Star Bulk's fleet.

The results for 3Q23 and 3Q22 included a loss on write-down of inventories of US$0.8 million and US$14.9 million, respectively, in connection with the valuation of the bunkers remaining on board its vessels, as a result of their lower net realisable value compared to their historical cost.

Results for 3Q23 include an aggregate net gain of US$18.9 million which resulted from the completion of the sale of vessels Star Polaris, Star Centaurus, Star Columba, Star Aquila, Star Cepheus and Star Hercules.

Interest and finance costs for 3Q23 and 23Q22 were US$18.1 million and US$13.4 million, respectively. The driving factor for this increase was the significant increase in variable interest rates, which was partially offset by the positive effect from interest rate swaps and the decrease in weighted average outstanding indebtedness as well as the recent refinacings of older facilities with more favourable terms.

On 13 November 2023, pursuant to Star Bulk's dividend policy, the Board of Directors declared a quarterly cash dividend of US$0.22 per share to all shareholders of record as of 5 December, 2023.

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/14112023/star-bulk-has-revealed-its-third-quarter-results/