Clarksons Securities acknowledges Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) shares could spike as the stage is set for a dry cargo market to upcycle. Clarksons Securities expressed bulk carrier shipowners’ stocks resume to have a challenging time, with the dry bulk sector now trading at a 30% discount to net asset value (NAV) on average. The significant ship supply problem drives New York-listed shipowner and operator Star Bulk Carriers (SBLK) a substantial investment case. Currently, Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 129 vessels. 25-May-2023
Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) sold two (2) capesize bulk carriers to Jan Rindbo-led Dampskibsselskabet DS Norden A/S. Petros Pappas-led shipowner and operator Star Bulk Carriers (SBLK) sold 2011 built capesize bulk carrier 179K DWT MV Star Polaris and 2011 built capesize bulk carrier 179K DWT MV Star Polaris Borealis for $32.5 million each. Danish shipowner and operator Dampskibsselskabet DS Norden A/S has doubled the capesize fleet with two acquisitions. Currently, Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 129 vessels. 4-April-2023
Star Bulk Carriers’ president Hamish Norton commented that scrubber-fitted vessels’ discharge has less sulphur concentrate thansparkling water. Athens-based New York-listed shipowner and operator Star Bulk Carriers’ (SBLK) president Hamish Norton remarked that discharge from exhaust gas scrubbers actually has a lower concentration of sulphur in it than a sparkling water. Petros Pappas-led shipowner and operator Star Bulk Carriers’ (SBLK) president Hamish Norton noted that the inspection of scrubber effluent when addressing widely held concerns of its impact on the marine environment. Nasdaq-listed shipowner and operator Star Bulk Carriers’ (SBLK) president Hamish Norton reported that the sulphur scrubber-fitted vessels add is less concentrated than the sulphur in a sparkling water, by a reasonable amount actually. Currently, Petros Pappas-led shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 129 vessels. 13-March-2023
Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) halves dividend on profit dip. Petros Pappas-led shipowner and operator Star Bulk Carriers (SBLK) stated that the company could not guarantee consistent earnings in volatile shipping markets. Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) holds a positive outlook on dry bulk markets despite seasonal spot market weakness. Star Bulk Carriers (SBLK) reported an $85.8 million net income for Q4 2022. Currently, Petros Pappas-led shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 128 vessels. 20-February-2023
Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) saved $2 million through Navig8’s bunker platform spin-off Engine in H1 2022. Navig8’s bunker platform spin-off Engine is a fuel optimisation service that demonstrates the company’s operations worth over half year. Navig8’s bunker platform spin-off Engine expressed the Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) had paid well below the market average price for bunkers despite volatile circumstances and availability challenges. Currently, Petros Pappas-led Star Bulk Carriers (SBLK) shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 128 vessels. 18-September-2022
Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) reduced interest costs with $310 million of new loan deals with ING, SEB, and Citi Banks. Petros Pappas-led Star Bulk Carriers (SBLK) calls the competitive nature of transactions despite the rising interest rate environment. Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) has knocked millions off its interest bill with a series of new finance deals. Star Bulk Carriers (SBLK) has sealed $310 million of loans to save $4 million every year. Star Bulk Carriers (SBLK) resumed optimising the company’s debt since the beginning of 2022. Currently, Athens-based New York-listed shipowner and operator Star Bulk Carriers (SBLK) has a fleet of 128 vessels. 11-August-2022
Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) considers that the recent shipping boom is dissimilar from the two decades ago provoked by China entering the World Trade Organization. Petros Pappas-led Star Bulk Carriers (SBLK) assumes that the persisted bulk carrier upcycle is due to the scarcity of bulk carrier newbuilding orders. Nasdaq-listed shipowner and operator Star Bulk Carriers (SBLK) acknowledges that the next shipping cycle should be pushed by a shortage of new bulk carrier ordering due to regulatory uncertainty and increasing ship newbuilding prices. The bulk carrier order book has stayed at approximately 7% of the existing bulk carrier fleet during 2021. Petros Pappas-led Star Bulk Carriers (SBLK) thinks bulk carrier newbuilding orders will stay under pressure because there is no straightforward answer to reach zero emissions. New York-listed shipowner and operator Star Bulk Carriers (SBLK) pledge to dividends stays firm. Star Bulk Carriers (SBLK) might also examine to complete further share repurchases. Star Bulk Carriers (SBLK) shares are dealing at a 35% discount to NAV (Net Asset Value). Lately, volatility in capesize bulk carrier rates have mainly been pushed by Chinese regulatory guidelines to restrict steel production. 15-December-2021
New York-listed shipowner and operator Star Bulk Carriers chartered out three (3) capesize bulk carriers, nine (9) panamax bulk carriers, and nine (9) supramax bulk carriers for Q1 2022. Star Bulk Carriers locked the bulk carriers before the dry bulk market plummeted. In Q3 2021, Star Bulk Carriers reported a net income of $225 million. In Q3 2021, Star Bulk Carriers reported $30,600 per day per ship. Petros Pappas-led Star Bulk Carriers is confident about the dry bulk market. New York-listed shipowner and operator Star Bulk Carriers is typically a spot market player. According to Star Bulk Carriers, China’s coal and iron ore imports should increase in Q1 2022. The iron ore volumes should support tonne-miles. Star Bulk Carriers assume that India’s coal imports will also add to the dry bulk market rebound. On the demand side, tonne-miles should grow by 2.4% in 2022. Currently, Star Bulk Carriers owns and operates 128 bulk carriers. 17-November-2021
Oaktree Capital Management sold around ten (10) million shares of Nasdaq-listed shipowner and operator Star Bulk Carriers. Many of the large financial shareholders in Star Bulk Carriers are also shareholders of these other publicly-listed dry bulk companies. In August 2019, Oaktree Capital Management owned around 35 million shares or 37% of Star Bulk Carriers’ stock. Oaktree Capital Management was the biggest shareholder of Star Bulk Carriers. Currently, Nasdaq-listed shipowner and operator Star Bulk Carriers is the world’s largest dry bulk owner. 24-May-2021
Nasdaq-listed shipowner and operator Star Bulk Carriers chairman Hamish Norton affirmed that the United States election should not affect the dry bulk shipping business because the United States does not import significant dry bulk cargoes. The United States election have very complex influences on global businesses, the dry bulk shipping sector may barely notice. According to Oaktree Capital Management backed Star Bulk Carriers, the United States doesn’t import any notable dry bulk cargoes, and exports mainly grain. Annually, the United States exports around 100 million tonnes of grain cargoes, and around a quarter of this grain is imported by Mexico. Donald Trump has been viewed as a protectionist president, commenced a tariff war with China in an attempt to balance trade. Furthermore, Donald Trump is also a tremendous advocate of the oil and gas industry. On the other hand, Joe Biden emerges to have a very greener plan and advocates a stronger collaborative strategy with China and other trade partners. Star Bulk Carriers is led by Greek tycoon Petros Pappas. 15-October-2020
Nasdaq-listed shipowner and operator Star Bulk Carriers will initiate watching at merger opportunities soon. In Q1 2020, Star Bulk Carriers announced that at that time it was not a good time for consolidation because market players were very doubtful as to the future of dry bulk carriers. Currently, market players are more comfortable with how the economies will react to coronavirus recession. Star Bulk Carriers would be interested in merger opportunities that fit with Star Bulk Carriers’ existing fleet and that would not increase the Star Bulk Carriers’ leverage. Star Bulk Carriers is not planning to acquire fleets for cash and would instead use the company’s shares at net asset value (NAV). Star Bulk Carriers plan to execute acquisitions within the dry bulk shipping market and not get into other markets at this time. In July 2020, Star Bulk Carriers refinanced 15 bulk carriers and signed contracts to sell and lease back 16 bulk carriers by September 2020 to raise cash. Petros Pappas led shipowner and operator Star Bulk Carriers has been concentrating on capesize fleet because Star Bulk Carriers is very positive about the post-pandemic recession. 5-August-2020
Nasdaq-listed shipowner and operator Star Bulk Carriers has been approved to delist from Oslo Stock Exchange (OSE) on 3 August 2020. Petros Pappas-led Star Bulk Carriers observed inadequate trading of company stocks in Oslo. Star Bulk Carriers’ stocks have been trading on Nasdaq Global Select Market since 2007. Oslo Stock Exchange (OSE) requires more-stringent reporting from the New York Stock Exchange in buying back and selling shares. Furthermore, Star Bulk Carriers had to provide reports to both Oslo and New York. 4-June-2020
New York-listed Star Bulk Carriers is planning to take its shares off of the Oslo Stock Exchange (OSE) due to inadequate stock trading since 2018. In July 2018, Star Bulk Carriers listed on the Oslo Stock Exchange (OSE) after acquiring Songa Bulk’s 15 bulk carriers. Unfortunately, the Oslo Stock Exchange (OSE) listing did not bring more liquidity to the stock of Star Bulk Carriers. Star Bulk Carriers’ trading volume averaged around 11,800 per day on the Oslo Stock Exchange (OSE). According to Star Bulk Carriers, low trading volumes in the company’s shares listed on the Oslo Stock Exchange (OSE) are disproportionate to the cost of the managerial expenses related to maintaining the Oslo Stock Exchange (OSE) listing. Therefore, sole listing on the New York Stock Exchange (NASDAQ) and a de-listing from the Oslo Stock Exchange (OSE) will result in substantial cost savings and managerial eliminations. Star Bulk Carriers will have to comply with one set of regulatory requirements. Star Bulk Carriers’ plot to take its shares off of the Oslo Stock Exchange (OSE) will submit to shareholders at Annual General Meeting (AGM) on 12 May 2020. Petros Pappas led Star Bulk Carriers’ shares declined to $5.40 on 24 April 2020. Star Bulk Carriers has been on New York’s Nasdaq Global Select Market since 2007 and has a fleet of 116 ships. 26-April-2020
Norwegian securities firm Pareto Securities upgraded New York-listed Star Bulk Carriers’ stocks to “buy” from “hold” due to strong charter coverage through Q3 2020. Even though the dry bulk market will be in dire straits because of the coronavirus recession, Pareto Securities anticipates Star Bulk Carriers to report a modest profit in 2020. Pareto Securities upholds an optimistic prospect on Star Bulk Carriers amid dry bulk market uncertainty. On 9 April 2020, Petros Pappas led Star Bulk Carriers reported that the company has covered 45% of all fleet in both Q2 and Q3 at rates of around $11,500 per day. However, Pareto Securities has downgraded its 2020 earnings per share outlook to $0.97 from $1.27. According to Pareto Securities, Star Bulk Carriers’ forward freight agreement rates will reach to $14,500 per day in Q2 2020. Furthermore, Pareto Securities expects China to normalize its economy faster than presumed and China’s economy will soon rebound. Pareto Securities calculates that Star Bulk Carriers’ net asset value (NAT) will be $9 per share by the end of 2020. On 8 April 2020, New York-listed Star Bulk Carriers has dropped Pareto Securities as a market maker in an effort to escalate the stock’s trading liquidity on the Oslo Stock Exchange (OSE). Star Bulk Carriers reported a $16 million loss for 2019. However, Pareto Securities anticipates Star Bulk Carriers to make $93 million profit for 2020. On 15 April 2020, Nasdaq listed Star Bulk Carriers’ stocks plunged $5.89 per share in the US market. 15-April-2020
Nasdaq-listed shipowner and operator Star Bulk Carriers decided to expand its chartering activities in Singapore and close its Star Logistics Management office in Switzerland. In 2017, Star Bulk Carriers established Star Logistics Management as a freight-trading outfit in Switzerland. Star Logistics Management focused on grain charters for kamsarmax and supramax bulk carriers. Star Logistics Management chartered in third-party bulk carriers on periods of up to one year in order to increase Star Bulk Carriers’ overall operating capacity. However, the IMO 2020 LSFO (Low Sulphur Fuel Oil) deadline prompted a shift in Star Logistics Management’s plan. Star Bulk Carriers found it could fix its bulk carriers on time charter better than voyage basis. Hence, the Switzerland office became considerably redundant and conclusively it was shut down. Star Bulk Carriers will keep Star Logistics Management the name, but the business and office in Geneva, Switzerland was closed in January 2020. In February 2020, Star Bulk Carriers moved its chartering activities to a recently formed subsidiary called Star Bulk Chartering in Singapore. Star Bulk Chartering was established in Singapore due to a change in Star Bulk Carriers’s chartering plan. Star Bulk Chartering in Singapore is close to the Far East market and creates a time difference advantage over the competition. In Geneva, Star Logistics Management’s CEO Leonidas Giannakopoulos resigned from his position at Star Logistics Management. Furthermore, in December 2019, John Karadimos resigned from his position at Star Logistics Management. In June 2019, Eduardo Basetti resigned from his position at Star Logistics Management and joined d’Amico Società di Navigazione SpA’s Monaco office. In Geneva, Star Logistics Management was a loss-making company due to high overheads. 29-February-2020
New York-listed shipowner and operator Star Bulk Carriers decided to shift its chartering activities to Singapore from Geneva, Switzerland. Star Bulk Carriers shifted chartering activities to a freshly formed entirely owned subsidiary under the name of Star Bulk Chartering Singapore Pte. In 2017, Star Bulk Carriers established Star Logistics Management in Geneva, Switzerland. Star Logistics Management was established in order to further expand the chartering potential of Star Bulk Carriers for kamsarmax and supramax bulk segments. In December 2019, Star Bulk Carriers’ subsidiary company Star Bulk Chartering Singapore Pte. started hiring new shipbrokers. Zheng Yang Rebecca was hired by Star Bulk Chartering Singapore Pte. as chartering manager. Previously, Zheng Yang Rebecca was working at Bary Chemical for eleven (11) years as a chartering manager. 27-February-2020
Oaktree Capital Management backed Star Bulk Carriers fixed employment for about 72.3% of the days in Q1 2020 at average time charter equivalent (TCE) rates of $12,580 per day. Star Bulk Carriers harvesting the earnings of significant scrubber installation program to the entire fleet. At the weak dry bulk market in Q1 2020, Petros Pappas led Star Bulk Carriers chartered out over 65% of its capesize and newcastlemax bulk carriers at close to $20,000 per day. During the record-low capesize and newcastlemax spot rates, Star Bulk Carriers benefits from timely scrubber investments. Strong charter rates had justified Star Bulk Carriers’ scrubber program. Till February 2019, Star Bulk Carriers has installed scrubbers to 90 bulk carriers out of the 116 bulk carriers. Since the beginning of 2020, Star Bulk Carriers has been observing the commercial and operational benefits of its scrubber investment. Star Bulk Carriers have been anticipating completing the scrubber installation program by April 2020 due to the coronavirus pandemic that caused delays in Chinese shipyards. NASDAQ listed Star Bulk Carriers reported a net profit of $23.5 million in Q4 2019 versus the $11.75 million in Q4 2018. Star Bulk Carriers reported adjusted earnings per share came in at $0.36 in Q4 2019. Star Bulk Carriers reported average charter rates as $15,535 per day in Q4 2019. Average charter rates as $15,535 per day is reportedly about 40% above all-in cash break-even levels of Star Bulk Carriers. 25-February-2020
Petros Pappas led shipowner and operator Star Bulk Carriers is planning to distribute a dividend to its shareholders. After seven (7) years, Star Bulk Carriers is distributing dividends. New York-listed Star Bulk Carriers is aiming to distribute dividends to its shareholders every quarter. New York-listed Star Bulk Carriers declared a $0.05 stakeholder perk for Q3 2019 which is the first dividend since the company distributed $0.15 in September 2012. Petros Pappas led shipowner and operator Star Bulk Carriers is planning a future dividend policy in which the company intended to give a quarterly dividend if it has a minimum cash balance after subtracting a certain minimum cash balance per bulk carrier. Star Bulk Carriers has set up a quarterly minimum cash balance per bulk carrier schedule that starts at $1 million per bulk carrier at the end of 2019 and the schedule goes up to $2.1 million per bulk carrier by Q3 2021. Furthermore, Star Bulk Carriers has set up a transparent dividend policy, under which Star Bulk Carriers will distribute dividends to shareholders once cash balance has reached set thresholds. Star Bulk Carriers believe a transparent dividend policy will safeguard the company’s balance sheet while creating value by returning cash to its shareholders. At the beginning of 2019, Star Bulk Carriers reported that the company could commence paying dividends after having repaid deferred debt from its September 2016 restructuring of finance agreements. Star Bulk Carriers’ Q3 2019 earnings fell short of analyst consensus despite profit falling from Q3 2018. Currently, Star Bulk Carriers has a fleet of 118 bulk carriers. In Q3 2019, Star Bulk Carriers reported a $5.82 million profit versus $26.1 million in earnings for Q3 2018. In Q3 2019, Star Bulk Carriers reported $17.3 million in adjusted profit compared to $30.6 million in adjusted earnings. In Q3 2019, Star Bulk Carriers reported $0.18 adjusted earnings per share (EPS). However, investors and market players estimate by $0.03. In Q3 2018, Star Bulk Carriers reported $0.17 adjusted earnings per share (EPS). In Q3 2019, Star Bulk Carriers reported revenue as $248 million which offset by higher expenses. In Q3 2019, Star Bulk Carriers reported voyage costs more than doubled to $67.6 million while dry-docking expenditures for scrubber retrofits have more than tripled to $8.16 million. In Q3 2019, Star Bulk Carriers reported EBITDA of $60.5 million which is ahead of market forecasts. Star Bulk Carriers has continued making substantial improvement in executing its scrubber retrofit program. Until now, Star Bulk Carriers installed 88 scrubbers to its fleet. Star Bulk Carriers anticipates to complete the scrubber certification process for most of the fleet by the end of 2019. According to market analysts, Star Bulk Carriers’ new transparent dividend policy is a crucial point and may double Star Bulk Carriers’ shares in 2020. After the announcement of Star Bulk Carriers’ new transparent dividend policy, the company’s shares increased 7% to $10.74 on NASDAQ. In NASDAQ, Star Bulk Carriers’ shares are traded as ticker name SBLK. Star Bulk Carriers started paying a $0.05 dividend for Q3 2019. On the other hand, Star Bulk Carriers has been in a fleet renewal program and selling vintage bulk carriers. Star Bulk Carriers plans to distribute a quarterly dividend if the company has a minimum cash balance after subtracting a certain minimum cash balance per bulk carrier. Star Bulk Carriers’ new transparent dividend policy may yield a 2020 dividend of more than $2 per share if operating profit hits at least $470 million. Star Bulk Carriers could generate $300 million in scrubber savings. Star Bulk Carriers has gained significant progress on scrubber retrofits before IMO 2020 LSFO deadline 1 January 2020. Before the distribution announcement of dividend by Star Bulk Carriers, another New York-listed shipowner and operator Genco Shipping & Trading has announced its first dividend as a $0.175 regular bonus and a $0.325 special dividend. Currently, John Wobensmith led Genco Shipping & Trading has a fleet of 56 bulk carriers. 21-November-2019
NASDAQ listed Star Bulk Carriers sold 2001 built supramax bulk carrier 52K DWT MV Star Epsilon and 2005 built supramax bulk carrier 52K DWT MV Star Cosmo. Star Bulk Carriers circulated MV Star Epsilon and MV Star Cosmo in the sale and purchase (S&P) market for two weeks and sold two of its oldest supramax bulk carriers. 2001 built supramax bulk carrier 52K DWT MV Star Epsilon was sold for about $6.5 million. 2005 built supramax bulk carrier 52K DWT MV Star Cosmo was sold for about $6.8 million to Middle Eastern shipowners. During the 2007-2008 shipping boom, Star Bulk Carriers acquired MV Star Epsilon and MV Star Cosmo at the top of the market with huge price tags. Petros Pappas led Star Bulk Carriers is the world’s largest scrubber fitted shipowner. Currently, Star Bulk Carriers has a fleet of 118 bulk carriers and almost the entire fleet is scrubber fitted. Oaktree Capital Management backed Star Bulk Carriers have been circulating MV Star Epsilon and MV Star Cosmo in the second-hand market since August 2019. In 2019, Star Bulk Carriers sold or scrapped three (3) bulk carriers and took delivery of three (3) new-building newcastlemax bulk carriers. In 2019, Star Bulk Carriers acquired an entire fleet of Delphin Shipping i.e. eleven (11) supramax bulk carriers. In 2019, Star Bulk Carriers has already installed exhaust gas cleaning systems (scrubber) on about 80 bulk carriers. Currently, Star Bulk Carriers is ranking first in a list of estimated top scrubber shipowners. Star Bulk Carriers targeted to increase the size of its scrubber-fitted fleet to more than 100 bulk carriers by the beginning of 2020. Furthermore, Star Bulk Carriers has secured $150 million in debt financing to finance the scrubber installations. In 2020, only Scorpio Bulkers will eventually surpass Star Bulk Carriers’ scrubber-fitted fleet, if Scorpio Bulkers install scrubbers on 140 bulk carriers. 24-October-2019
Petros Pappas led shipowner and operator Star Bulk Carriers could stockpile $300 million surplus cash flow from its scrubber programme. Current bunker spread between LSFO (Low Sulphur Fuel Oil) and IFO (Intermediate Fuel Oil) means Star Bulk Carriers could achieve zero debt and target consolidation. According to analysts’ estimates, Star Bulk Carriers’ fleet burns 1.2 million tons of fuel per year which is around $300 million savings per year. Currently, there is a $240 per ton spread between low and high sulfur bunkers. New York-listed Star Bulk Carriers could pay the savings to shareholders as dividends. Remarkable dividends should allow for shares to continue moving higher relative to net asset value (NAV). Star Bulk Carriers will earn a perpetual capital base to deleverage from today’s very manageable 50% level to zero (LTV) net debt and will bring down breakeven levels which is currently at $11,200 per day including debt repayment. Petros Pappas led shipowner and operator Star Bulk Carriers could consolidate the stock market via highly attractive ship-for-share deals. Market analysts remain bullish on the outlook for Star Bulk Carriers’ (SBLK) shares. Particularly, market analysts believe that Star Bulk Carriers’ management will choose to allocate surplus cash flow towards dividends within a structure that is sustainable. According to market analysts’ estimations, this will be achieved in the Q3 2020. Star Bulk Carriers will maintain profitable and sustainable growth in shipping markets. 17-October-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers is looking for fleet acquisitions and new opportunities. Star Bulk Carriers has been planning to acquire other shipowners’ fleets once IMO 2020 is out of the way. NASDAQ listed Star Bulk Carriers has a very positive outlook on capesize bulk carriers’ charter rates through 2019. Furthermore, Star Bulk Carriers believe that delays in shipyards for scrubbers will increase bulk carrier rates until the end of 2019. Petros Pappas led shipowner and operator Star Bulk Carriers prefer merging with outstanding shipping companies or buying bulk carriers with a combination of cash and shares. Star Bulk Carriers acquired fleets of Delphin Shipping, OceanBulk, and Excel Maritime. Previously, Star Bulk Carriers successfully completed acquisitions with ER Capital Holding, Songa Bulk, and Raffaele Zagari. Currently, bulk carriers been waiting for up to two months to have scrubbers installed in Chinese shipyards. Delays in installing scrubbers will be taking bulk carriers out of the shipping market until the end of 2019. In this situation, bulk carriers shortage of capacity will have a positive impact on Star Bulk Carriers. In early 2019, Star Bulk Carriers signed scrubber installation contracts before rivals. Star Bulk Carriers expects some delays, but not as bad as other affected rival companies. 12-September-2019
NASDAQ listed shipowner and operator Star Bulk Carriers is predicting that capesize freights rates to soar over the next half of 2019 due to scrubber installations before the IMO 2020 deadline. According to Star Bulk Carriers, Far East shipyards are extremely busy to install scrubbers. Therefore, Star Bulk Carriers have positive sentiments on capesize freights rates through the rest of 2019. In early April 2019, capesize freights rates were around $3,460 per day. At the beginning of August 2019, capesize freights rates increased to $33,000. In the second week of August 2019, capesize freights rates plunged to $23,872 per day as many capesize bulk carriers ballasted to the Atlantic basin. Oaktree Capital Management backed shipowner and operator Star Bulk Carriers is very optimistic about the capesize market until the end of 2019. According to Star Bulk Carriers, capesize freights rates will upkeep this level for a while because capesize bulk carriers were focused on the Pacific basin. Moreover, Vale’s Brucutu mine supplied 30 million metric tonnes of iron ore to capesize market. Currently, bunker prices are very high to ballast and many capesize bulk carriers were at Chinese shipyards for scrubber installations. According to Star Bulk Carriers, 60 VLOCs (Very Large Ore Carriers) and 130 capesize bulk carriers will be installed scrubbers i.e. these large bulk carriers will be off the market. Therefore, Star Bulk Carriers forecasts that the capesize freight rates will be above $20,000 for the near future. Currently, China’s iron ore stockpile dropped down to 120,000,000 tonnes. So, the slowdown in iron ore demand in China was more shipping supply-driven. Furthermore, slow-steaming due to high low-sulfur fuel costs also soar capesize freight rates by lowering ship supply to the market. 10-August-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers reported a $40 million net loss in Q2 2019 versus a $10.7 million profit in Q2 2018. $40 million net loss was reported in Q2 2019 due to adjustments to the Star Bulk Carriers’ fleet value. $40 million net loss as a result of a $30 million depreciation expense driven by a higher average number of bulk carriers. In Q2 2019, Star Bulk Carriers approved the deal with Delphin Shipping to acquire eleven (11) bulk carriers. Furthermore, Star Bulk Carriers took delivery of two (2) newcastlemax bulk carriers. In Q2 2019, adjusted loss came in at $20.5 million versus $13.4 million adjusted profit in Q2 2018. In Q2 2019, adjusted loss per share was $0.22 versus $0.21 earnings per share in Q2 2018. In Q2 2019, Star Bulk Carriers reported voyage revenue $158 million, up from $132 million in Q2 2018. However, voyage revenue was offset by costly scrubber installations. In Q2 2019, Star Bulk Carriers installed 26 scrubber towers completing 10 dry docks as well an additional 8 dry docks in progress. By the end of 2019, Star Bulk Carriers has been forecasting to install 104 scrubbers. Star Bulk Carriers has an optimistic outlook for 2020 shipping markets. According to Star Bulk Carriers, the Brazilian iron ore market will be improved and higher bauxite imports to China are expected. Petros Pappas led shipowner and operator Star Bulk Carriers expects trade war resolution in 2020. Star Bulk Carriers expect further slow steaming due to expensive bunkers, increased scrapping of inefficient vintage bulk carriers. 7-August-2019
Nasdaq-listed shipowner and operator Star Bulk revealed a $42 million worth stock incentive plan for company executives. Petros Pappas-led Star Bulk Carrier’s shares have taken a tumble after the announcement of the stock incentive plan. Star Bulk Carrier explained that 4 million shares will be on offer depending on the performance of company executives. Star Bulk Carrier’s have fallen 12.4% to $9.15. Deutsche Bank analyst Amit Mehrotra stated that Star Bulk Carrier’s shares underperformance likely reflects the complexity of today’s announcement and management is effectively diluting existing shareholders if performance significantly exceeds average benchmark levels. Star Bulk Carrier’s share awards are subject to Star Bulk Carrier’s fleet outperforming relevant dry bulk charter rate indices as reported by the Baltic Exchange during 2020 and 2021. According to Deutsche Bank analyst, dilution will not happen until the shares reach much higher levels and show management’s confidence in its scrubber business plan, with the potential 4% dilution. Star Bulk Carrier has been buying back shares under a $50 million programme. Deutsche Bank maintains a buy rating on the Star Bulk Carrier’s stock and still considers it to be the top shipping pick. 6-August-2019
New York-listed shipowners and operators Star Bulk Carriers and Genco Shipping & Trading are poised to take advantage of a strong freight market in Q3 2019. Capesize spot rates have been rebounding since the Brazilian iron ore dam incident on 25 January 2019. On 2 April 2019 Capesize freight rates plunge to $3,460 per day from $13,288 since the 25 January 2019 Vale dam disaster. Brazil Vale dam disaster took 40 million tonnes of iron ore off the shipping market. Capesize spot rates have improved steadily since then as Vale iron ore production is expected to return normal at the end of 2019. On 7 June 2019, capesize spot rates reached to $15,007 per day. According to shipping experts, in Q4 2019, capesize spot rates may hit $18,000 per day based on a positive forward freight agreement (FFA) market. Besides strong Chinese steel output and iron-ore demand, there is higher coal demand in Vietnam, Thailand, Pakistan, and China in Q4 2019. According to market analysts, Genco Shipping & Trading would also benefit from rebounding capesize bulk market in Q3 2019. Genco Shipping & Trading has a ticker symbol GNK on the New York Stock Exchange. Genco Shipping & Trading’s medium-sized bulk carriers contribute a stable income to the company while capesize bulk carriers are expected to generate more income in the volatile shipping market. Genco Shipping & Trading should also take advantage of the rising long-term dry bulk sector and low capesize supply which is driven by IMO 2020 low sulphur regulations. Genco Shipping & Trading’s capesize bulk carriers will also benefit from China’s rebound in iron ore imports. Currently, Genco Shipping & Trading’s share valuation is enticing due to a strong balance sheet. Genco Shipping & Trading’s CEO John Wobensmith explained that the company will benefit from steady pay from ultramax and supramax bulk carriers while collecting upside from the capesize bulk carriers. Genco Shipping & Trading’s CEO John Wobensmith is very positive about shipping outlook and expects that Genco Shipping & Trading will benefit from the positive capesize momentum. NASDAQ listed Star Bulk Carriers has a younger fleet and more large bulker exposure than Genco Shipping & Trading. Currently, Star Bulk Carriers has a fleet of 120 dry bulk carriers. When capesize spot rates exponentially increase in Q4 2019, both Genco Shipping & Trading and Star Bulk Carriers will undoubtedly be the biggest winners in the shipping market. 10-June-2019
New York-listed shipowners and operators Star Bulk Carriers and Genco Shipping & Trading will benefit from iron ore recovery as China’s imports and Brazil’s exports continue to recover beyond expectations. Since the first week of April 2019, capesize spot freight rates have more than tripled to $14,000 per day. Brazil’s iron ore giant Vale’s dam tragic incident deeply impacted sea-born trade and especially capesize market. Capesize spot rates have increased substantially over the last two months, faster than expected. China’s iron ore stockpiles decreased to minimum levels and sea-born trade normalizing and the shipping industry has been keeping a record low order-book. Currently, New York-listed dry bulk shipowners’ stocks are trading at a 40% discount to net asset value (NAV). On 25 January 2019, Vale’s dam tragic incident in Brazil, capesize spot freight rates plunged from $13,288 to $3,460. On 3 April 2019, capesize spot freight rates reached to $13,916. However, capesize spot freight rates are already under downward pressure as a result of the United States and China trade tensions. Brazil’s iron ore giant Vale’s weekly iron ore shipments almost doubled to 5 million tonnes by June 2019. However, Vale’s weekly iron ore shipments may settle at 6.5 million tonnes due to the mine suspensions. In China, demand for imported iron ore may increase again in June 2019. Soon, China will import more sea-born iron ore than analysts expectations. 1-June-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers reported a $5.3 million loss for Q1 2019 due to exhaust gas scrubber installations. In Q1 2018, Star Bulk Carriers reported a $9.9 million profit. In Q1 2019, Star Bulk Carriers reported $166 million revenue but voyage expenses increased to $44 million and charter-in hire costs increased to $22 million. Furthermore, Star Bulk Carriers reported heftier dry-docking costs of $9 million due to scrubber installations. Star Bulk Carriers reported ship operating expenses of $39 million in Q1 2019. Petros Pappas led shipowner and operator Star Bulk Carriers will install scrubbers to 40 bulk carriers till the end of May 2019. Star Bulk Carriers expects to have a fully scrubber fitted fleet by January 2020 IMO (International Maritime Organisation) deadline. In 2018, Star Bulk Carriers acquired 34 capesize bulk carriers to its fleet. Currently, Star Bulk Carriers has a mixed fleet of 111 bulk carriers. Star Bulk Carriers is planning to install scrubbers in the entire fleet by 2020. Star Bulk Carriers schemed to install scrubbers on 52 bulk carriers through the drydocking period. Additionally, 50 more bulk carriers will be installed scrubbers while operating at sea. Star Bulk Carriers want to take advantage of what may be a prosperous 2020 for scrubber fitted bulk carriers. Star Bulk Carriers seek to maximize the operating days in 2020. Therefore, Star Bulk Carriers scheduled all drydocks to an earlier time in 2019 that would otherwise be due in 2020. In Q1 2019, Star Bulk Carriers reported an adjusted net loss of $8.5 million in Q1 2019 versus an adjusted profit of $11.9 million in Q1 2020. Adjusted net loss was due to a $3.09 million unrealized loss on forward freight agreements (FFA) and bunker swaps. In Q1 2019, Star Bulk Carriers reported a $0.09 loss per share, versus $0.18 earnings per share in Q1 2018. In Q2 2019, 76% of Star Bulk Carriers’ fleet had been fixed for at $10,006 per day which indicates an improvement in revenue for Q2 2019. 20-May-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers rely on the future of exhaust gas scrubbers. In the second week of May 2019, environmental groups called for the entire banning-order on exhaust gas scrubbers. On the other hand, IMO’s (International Maritime Organisation) Marine Environment Protection Committee (MEPC) approved the European Union’s February 2019 request to harmonize IMO (International Maritime Organisation) scrubber rules over 2020. NASDAQ listed shipowner and operator Star Bulk Carriers will be paying around $175 million for scrubber installations on 102 bulk carriers by 2020. However, Star Bulk Carriers is not excessively concerned over the IMO (International Maritime Organisation) possible ban. According to Star Bulk Carriers, the chances of an open-loop scrubber IMO (International Maritime Organisation) ban is extremely small in the international sea. Furthermore, open-loop scrubbers are not practically a cause of contamination at all. Contemporary seawater tests revealed scrubber pollutant levels in ports to be well within the European Union (EU) limits. Additionally, it might be complicated for the IMO (International Maritime Organisation) to modify any significant regulations about open-loop scrubbers before 2022. 19-May-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers and Germany based ER Capital abandon $115 million worth four (4) capesize bulk carrier deal. Capeize bulk carriers price tags have noticeably fell since the mid of 2018. Star Bulk Carriers and Germany based ER Capital have mutually agreed to waive options on:
- MV ER America (180K DWT built 2010)
- MV ER Bayonne (180K DWT built 2010)
- MV ER Borneo (180K DWT built 2010)
- MV ER Buenos Aires (180K DWT built 2010)
Currently, the market value of the four (4) capesizes built-in 2010 at $95 million en bloc which is much less than Star Bulk Carriers’ call option pricing of $115 million. In other words, Star Bulk Carriers was going to pay about $20 million above the market value of capesize bulk carriers. Petros Pappas led shipowner and operator Star Bulk Carriers scrapped the deal because the call option prices the company had on four (4) capesize bulk carriers were higher than the current market prices. Star Bulk Carriers was holding options to purchase four (4) capesize bulk carriers from ER Capital at a price of $29 million per vessel. Star Bulk Carriers had the option to pay in cash and shares. In August 2018, New York-listed Star Bulk Carriers and Germany based ER Capital signed a two-stage deal. Options were the second stage of a deal which is to buy two capesize and a supramax bulk carriers from the German owner. German owner ER Capital also had put options that could be exercised if Star Bulk Carriers opted not to take the extra bulk carriers. Currently, Star Bulk Carriers does not prefer to add capesize bulk carrier exposure due to Vale uncertainty. 3-April-2019
Petros Pappas led Star Bulk Carriers is trying to sell the newly acquired 2015 built ultramax dry bulk carrier 63K DWT MV Star Anna. In November 2018, Star Bulk Carriers acquired 63K DWT MV Star Anna (ex MV Vela) for $20.3 million from Delphin Shipping by Oceanbulk Maritime which is the parent company of Star Bulk. Delphin Shipping is a private New York-based shipowner which is led by former Eagle Bulk Shipping chief executive Sophocles Zoullas. Experienced sale and purchase (S&P) shipbrokers has been estimating offers in the range of $18.5 million to $19 million. Ship sale and purchase (S&P) shipbrokers surprised to see 63K DWT MV Star Anna (ex MV Vela) back on the sales market. New York-listed Star Bulk Carriers is among the shipping market’s fastest-growing companies due to a series of large-scale fleet acquisitions. In 2018, Star Bulk Carriers acquired Oceanbulk, Excel Maritime, Songa Bulk, Augustea, and ER Capital Holding. Star Bulk Carriers have created the shipping market’s largest public dry bulk fleet with nearly 100 vessels. Lately, Star Bulk Carriers has been disposing of vintage ships from its fleet. In February 2019, Star Bulk Carriers sold its oldest capesize 2000 built 171K DWT MV Star Aurora for demolition. Star Bulk Carriers also sold 2001 built supramax dry bulk carrier 52K DWT MV Star Kappa to Asian ship owners for $6.3 million. In January 2019, Star Bulk Carriers sold 2000 built supramax dry bulk carrier 52K DWT MV Star Delta for an undisclosed price. New York-listed Star Bulk Carriers has reserved $50 million for a share buy-back programme. Star Bulk Carriers’ common shares are trading below net asset value (NAV). However, nobody understands Star Bulk Carriers’ management’s intentions to sell newly acquired 2015 built ultramax dry bulk carrier 63K DWT MV Star Anna (ex MV Vela). 63K DWT MV Star Anna (ex MV Vela) was ordered in 2010 from Jiangsu Hantong Ship Heavy Industry for $25 million. 10-March-2019
Oaktree Capital Management backed shipowner and operator Star Bulk Carriers’ shares tumbled. Star Bulk Carriers’ shares started to plunge after acquiring fifteen (15) bulk carriers from Songa Bulk in July 2018. Furthermore, Petros Pappas led Star Bulk Carriers to announce a share incentive scheme for company top executives. On 6 July 2018, Star Bulk Carriers acquired fifteen (15) bulk carriers from Songa Bulk in exchange for 13.7 million common shares and $145 million in cash. Star Bulk Carriers placed the common shares on the Oslo Stock Exchange (OSE) for six (6) months pursuant to SEC (Security Exchange Commission) rules. Star Bulk Carriers’ share plunge was related to a six (6) month stock trading restriction after the acquisition. NASDAQ stock trading restriction barrier was lifted in January 2019. So, Star Bulk Carriers’ traded shares were allowed to trade on Nasdaq with the rest of Star Bulk Carriers’ shares under the regular SBLK ticker symbol. However, Star Bulk Carriers’ shares fell to $8.84 per share. Star Bulk Carriers’ shares were sold off due to the Songa Bulk traded shares restriction period ending which brings selling pressure. Star Bulk Carriers should repurchase many of the shares if ex-Songa shareholders would sell at low levels. Currently, thousands of Songa Bulk shareholders own Star Bulk Carriers’ shares. 23-January-2019
Petros Pappas led Star Bulk Carriers sold 2000 Japanese built supramax dry bulk carrier 52K DWT MV Star Delta for around $7.3 million. MV Star Delta has been renamed as MV Prince M. Meanwhile, Star Bulk Carriers took delivery of 2010 built capesize dry bulk carriers 180K DWT MV ER Brandenburg and MV Star Marianne (ex MV ER Bourgogne) from ER Capital Holding. 15-January-2019
London-based financial research company Drewry upgraded Star Bulk Carriers’ stock to $15.50 from $14.20 due to the company’s Q4 2017 results. Star Bulk Carriers have been trying to deleverage its balance sheet. Average Daily Time Charter Equivalent (TCE) rates of Star Bulk Carriers jumped to $13,860 in 2017 from $9,619 in 2016. Thus increased operating revenue to $107.7 million in Q4 2017. Petros Pappas led Star Bulk Carriers to make agreements with senior lenders in order to defer principal payments from June 2016 to June 2018. Star Bulk Carriers’ Q4 2017 performance was also positively impacted by an improving dry bulk market. 6-April-2018
New York-listed Star Bulk Carriers has collected $50 million from the bond market to refinance debt due in 2019. Star Bulk Carriers has a baby bond due for maturity in May 2019 which is covered by the publication of the new paper. In Q2 2017, Petros Pappas led Star Bulk Carriers reported total liabilities of $1.07 billion, and a cash of $226 million. 6-November-2017
Petros Pappas led Star Bulk Carriers bought 2004 built capesize bulker 176K DWT M/V Cape Triumph from Japanese shipowner Osaka Asahi Kaiun for $14.5 million. Currently, Star Bulk Carriers has a fleet of 70 dry bulk carriers. 27-October-2017
New York-listed Star Bulk Carriers’ stock was the best performer in Q1 2017 among other quoted bulk carrier shipowners. Greek Petros Pappas led Star Bulk Carriers’ stock has increased 1.5 times in Q1 2017. After Star Bulk Carriers’ stocks, Safe Bulkers and Scorpio Bulker respectively second and third position. 4-April-2017
New York-listed Star Bulk Carriers sold vintage handymax bulk carrier. Star Bulk Carriers sold 1998 Japanese built 45K DWT M/V Star Michele for $2.3 million. In 2014, Star Bulk Carriers paid $635 million to acquire bankrupt Excel Maritime Carriers 34 bulk carriers. Currently, Star Bulk Carriers’ oldest bulk carriers are from the 1990s M/V Star Despoina and M/V Star Vanessa. Oaktree Capital Management is holding 52.5% of the Star Bulk Carriers shares and the Pappas family is holding 5.8% of Star Bulk Carriers shares. 4-May-2016