ATHENS, GREECE - 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 second quarter and the first half of 2017.

Financial Highlights

(Expressed in thousands of U.S. dollars, except for daily rates and per share data)
Second quarter 2017 Second quarter 2016 Six months ended June 30, 2017 Six months ended June 30, 2016
Voyage Revenues $78,605 $52,605 $143,471 $98,862
Net income/(loss) ($10,279) ($32,908) ($26,229) ($81,696)
EBITDA (1) $22,665 ($521) $37,039 ($14,610)
Adjusted EBITDA (1) $25,731 $1,630 $43,806 ($5,679)
Adjusted Net income / (loss) (2) ($7,643) ($30,196) ($20,515) ($68,491)
Earnings / (loss) per share basic and diluted ($0.16) ($0.75) ($0.42) ($1.86)
Adjusted earnings / (loss) per share basic and diluted (2) ($0.12) ($0.69) ($0.33) ($1.56)
Average Number of Vessels 69.5 70.0 68.4 70.9
Daily Time Charter Equivalent Rate (“TCE”) (3) $9,746 $5,609 $8,977 $4,971
Fleet utilization 99.1% 96.4% 99.1% 95.1%
Average daily OPEX per vessel (excluding pre-delivery expenses) $3,880 $3,796 $3,914 $3,692
Average daily Net Cash G&A expenses per vessel (4) (excluding one-time expenses) $1,117 $1,153 $1,125 $1,128


(1) EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the table at the back 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 generally accepted accounting principles in the United States (“U.S. GAAP”). To derive Adjusted EBITDA from EBITDA, we exclude non-cash gains / (losses), and non-recurring items.
(2) Adjusted Net income / (loss) and Adjusted earnings / (loss) per share basic and diluted are non-GAAP measures. Please see the table at the back of this release for a reconciliation to Net income / (loss), which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
(3) Daily Time Charter Equivalent Rate (“TCE”) is a non-GAAP measure. Please see the table at the back 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.
(4) Average daily Net Cash G&A expenses per vessel is calculated by (1) deducting the Management fee Income from, and (2) adding the Management fee expense to, the General and Administrative expenses (net of stock based compensation expense) and (3) then dividing with the ownership days.

Petros Pappas, Chief Executive Officer of Star Bulk, commented:

“Star Bulk announced today its second quarter 2017 financial results, reporting $62.0 million in Net TCE Revenues, $14.2 million in operating cash flow and $11.5 million in free cash flow, contributing to our $245 million liquidity position.

Our average TCE per vessel was $9,746/day, while our average utilization was 99.1%. Given our Q2 2017 average OPEX and net cash G&A expenses per vessel, of $3,880/day and $1,117/day respectively, we have an Adjusted EBITDA of $25.7 million, compared to an Adjusted EBITDA figure of $1.6 million in Q2 2016. This marks the fifth consecutive increase in our quarterly Adjusted EBITDA since the first quarter of 2016 when the dry bulk market troughed.

We remain committed to exceeding our customers’ expectations through our high quality and safety standards, as evidenced by our continued presence among the top 5 dry bulk operators in Rightship vessel condition ratings.

We are pleased to announce that in July we have taken delivery of the M/V Diva, a 2011 built Supramax vessel, which was acquired at an attractive price in June of 2017.

On the financing front, we have drawn down the full facility amount to partially finance the acquisition of the 2 modern Kamsarmaxes acquired in early March of 2017, which along with the successful refinancing in full of one of our bank facilities, demonstrates the solid support from the company’s lenders and enhances our financial flexibility going forward.”

Recent Developments

Vessel deliveries On July 24th, 2017, we took delivery of M/V Diva, a Supramax vessel with carrying capacity of 56,582 deadweight tons, built at Jiangsu Hantong Ship Heavy Industry co Ltd China in 2011.

Financing Activities

  • On June 23rd, 2017, we executed a new loan agreement with ABN AMRO Bank N.V. for $30.8 million, available in two tranches, as follows:
    1. Tranche A of $16.0 million, which was drawn down on June 27th, 2017, to partially finance the acquisition of two 2013-built Kamsarmax vessels, Star Charis and Star Suzanna, which were acquired earlier this year.
    2. Tranche B of $14.8 million, which was drawn down on July 7th, 2017, to refinance all of the outstanding debt under the Heron Vessel CiT Facility (as defined in our annual report). Tranche B is secured by Star Angelina and Star Gwyneth.

The two tranches mature in June and July 2022, respectively.

  • On August 8th, 2017, we paid an amount of $3.6 million to all parties under our Restructuring Agreements (as defined in our annual report), representing the 20% of the equity used for the acquisition of Star Charis, Star Suzanna and Diva.

Employment update During the second quarter and until August 2017 we concluded the following medium to long term charter arrangements:

  • Star Renee, a 82,221 dwt Kamsarmax vessel at a gross rate of $10,000/day for a period of approximately 4 to 7 months, commencing from May 2017.
  • Star Helena, a 82,187 dwt Kamsarmax vessel at a gross rate of $10,800/day for a period of approximately 7 to 10 months, commencing from August 2017.
  • Star Emily, a 76,417 dwt Panamax vessel at a gross rate of $9,000/day for a period of approximately 5 to 8 months, commencing from July 2017.
  • Kaley, a 63,283 dwt Ultramax vessel, at a gross rate of $12,000/day for a period of approximately 3 to 5 months, commencing from June 2017.
  • Mackenzie, a 63,266 dwt Ultramax vessel, at a gross rate of $10,100/day for a period of approximately 6 to 8 months, commencing from July 2017.
  • Wolverine, a 61,292 dwt Ultramax vessel at a gross rate of $10,600/day for a period of approximately 8 to 11 months, commencing from August 2017.
  • Star Gamma, a 53,098 dwt Supramax vessel at a gross rate of $9,800/day for a period of approximately 3 to 5 months, commencing from July 2017.
  • Strange Attractor, a 55,742 dwt Supramax vessel, at a gross rate of $9,700/day for a period of approximately 7 to 9 months, commencing from July 2017.

Existing On the Water Fleet (As of August 8, 2017)

Vessel Name Vessel Type Capacity (dwt.) Year Built Date Delivered to Star Bulk
1 Goliath Newcastlemax 209,537 2015 July-15
2 Gargantua Newcastlemax 209,529 2015 April-15
3 Star Poseidon Newcastlemax 209,475 2016 February-16
4 Maharaj Newcastlemax 209,472 2016 July-15
5 Star Ariadne (1) Newcastlemax 207,812 2017 March-17
6 Star Virgo (1) Newcastlemax 207,810 2017 March-17
7 Star Libra (1) Newcastlemax 207,765 2016 June-16
8 Star Marisa (1) Newcastlemax 207,709 2016 March-16
9 Leviathan Capesize 182,511 2014 September-14
10 Peloreus Capesize 182,496 2014 July-14
11 Star Martha Capesize 180,274 2010 October-14
12 Star Pauline Capesize 180,274 2008 December-14
13 Pantagruel Capesize 180,181 2004 July-14
14 Star Borealis Capesize 179,678 2011 September-11
15 Star Polaris Capesize 179,600 2011 November-11
16 Star Angie Capesize 177,931 2007 October-14
17 Big Fish Capesize 177,662 2004 July-14
18 Kymopolia Capesize 176,990 2006 July-14
19 Big Bang Capesize 174,109 2007 July-14
20 Star Aurora Capesize 171,199 2000 September-10
21 Amami Post Panamax 98,681 2011 July-14
22 Madredeus Post Panamax 98,681 2011 July-14
23 Star Sirius Post Panamax 98,681 2011 March-14
24 Star Vega Post Panamax 98,681 2011 February-14
25 Star Angelina Kamsarmax 82,981 2006 December-14
26 Star Gwyneth Kamsarmax 82,790 2006 December-14
27 Star Kamila Kamsarmax 82,769 2005 September-14
28 Pendulum Kamsarmax 82,619 2006 July-14
29 Star Maria Kamsarmax 82,598 2007 November-14
30 Star Markella Kamsarmax 82,594 2007 September-14
31 Star Danai Kamsarmax 82,574 2006 October-14
32 Star Georgia Kamsarmax 82,298 2006 October-14
33 Star Sophia Kamsarmax 82,269 2007 October-14
34 Star Mariella Kamsarmax 82,266 2006 September-14
35 Star Moira Kamsarmax 82,25