Star Bulk reports 3Q18 results

Recent Developments

• The company have recently repaid all outstanding deferred debt amounts originating from the September 2016.
• restructuring of our finance agreements. We currently have no restrictions on vessel acquisitions or the incurrence of new debt and are free to make dividend payments to the company's shareholders from 1 January 2019 onwards.

• Star Bulk have also concluded the refinancing of the existing loans of approximately US$617 million with new debt financing totaling over US$625 million (new debt financing). The proceeds of the New Debt Financing is financing 59 vessels of all types, ranging from newcastlemaxes down to supramaxes, with an average age of 10.2 years. Through the new debt financing, the company have been able to expand its banking group to include additional European and Asian financial institutions, and reduce their cost of debt as the interest margin on the new debt financing is 70 bps lower than the weighted average interest margin on the refinanced debt.

Vessel deliveries update

• On 10 October the company took delivery of the vessel M/V Star Bright, a 2010 built Supramax vessel, as part of the previously announced transaction for the acquisition of three firm plus four optional vessels from E.R. Capital Holding GmbH KG.
• As part of the renewal of its fleet, on 16 November the company had taken delivery of the vessel M/V Star Anna, a 2015 built Ultramax vessel, which has been acquired from a third party.

Changes to Board of Directors

The company appointed Emily Stephens to its Board of Directors as Class B Director and member of its Nomination and Corporate Governance Committee. Stephens serves as a Managing Director in the Distressed Dept. group of Oaktree and has previously served on Star Bulk's Board for the period July 2014 - February 2015. Stephens fills the seat made vacant by the resignation of Jennifer Box, an Oaktree designee,who had been a director of Star Bulk and member of our Nomination and Corporate Governance Committee since February 2015. The number of Directors constituting the Board of Directors remains at 10. 

Petros Pappas, Chief Executive Officer of Star Bulk, commented: “This quarter marks the fourth consecutive profitable one, as we achieved US$128.7 million in TCE Revenues, US$80.1 million in Adjusted EBITDA and Net Income of $26.1 million. Our average TCE for the quarter continued to increase quarter on quarter to US$14 521/d per vessel, while daily OPEX per vessel were at $4,054/day and Net Cash G&A expenses decreased to US$918/d as a result of synergies from managing a larger fleet. As of today, we have fixed a minimum of 74% of 4Q18 days at average TCE rates of US$14 047 /d.

During this quarter, we repaid all outstanding deferred debt amounts originating from the September 2016 restructuring of our finance agreements. We have also concluded the refinancing of loans of approximately US$617 million with new debt financing totalling over US$625 million, smoothening our maturity profile, reducing our interest cost by 70 bps and expanding our banking group with prominent European and Asian financial institutions. We have also effectively eliminated all debt maturities for 2018 and 2019."

 

Yesterday, Petros Pappas, Chief Executive Officer of Star Bulk, commented: “This quarter marks the fourth consecutive profitable one, as we achieved $128.7 million in TCE Revenues, US$80.1 million in Adjusted EBITDA and Net Income of US$26.1 million. Our average TCE for the quarter continued to increase quarter on quarter to US$14 521/d per vessel, while daily OPEX per vessel were at US$4054/d and Net Cash G&A expenses decreased to US$918/d as a result of synergies from managing a larger fleet. As of yesterday, the company have fixed a minimum of 74% of 4Q18 days at average TCE rates of US$14 047/d.

 

"During this quarter, we repaid all outstanding deferred debt amounts originating from the September 2016 restructuring of our finance agreements. We have also concluded the refinancing of loans of approximately US$617 million with new debt financing totaling over US$625 million, smoothening our maturity profile, reducing our interest cost by 70 bps and expanding our banking group with prominent European and Asian financial institutions. We have also effectively eliminated all debt maturities for 2018 and 2019. In light of the upcoming IMO regulations, we are proceeding with the retrofitting of our entire fleet with scrubbers before the end of 2019, ensuring compliance ahead of the 1 January 2020 implementation date.”

To read the full report: https://www.starbulk.com/media/uploads_file/2018/11/20/p1cspfm1ld7hvb0ekcfvfn1cure.pdf

Read the article online at: https://www.drybulkmagazine.com/shipping/21112018/star-bulk-reports-3q18-results/