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 three months and the year ended December 31, 2013.
Adjusted net income for the fourth quarter of 2013 was $2.1 million compared to an adjusted net income of $0.3 million during the same quarter in 2012.
Adjusted net income for the year ended December 31, 2013 was $9.7 million compared to an adjusted net loss of $0.3 million during the year ended December 31, 2012.
Financial Highlights
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| (Expressed in thousands of U.S. dollars, except for daily rates and per share data) |
|
3 months ended December 31, 2013 |
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3 months ended December 31, 2012 |
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12 months ended December 31, 2013 |
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12 months ended December 31, 2012 |
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| Total Revenues |
|
$ |
16,349 |
|
$ |
17,938 |
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$ |
69,894 |
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$ |
86,162 |
|
| EBITDA (1) |
|
$ |
5,373 |
|
$ |
4,665 |
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$ |
24,495 |
|
$ |
(273,884 |
) |
| Adjusted EBITDA (1) |
|
$ |
7,387 |
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$ |
6,338 |
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$ |
32,331 |
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$ |
40,358 |
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| Net income / (loss) |
|
$ |
54 |
|
$ |
(1,384 |
) |
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$ |
1,850 |
|
$ |
(314,521 |
) |
| Adjusted Net income / (loss) |
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$ |
2,068 |
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$ |
289 |
|
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$ |
9,686 |
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$ |
(279 |
) |
| Earnings / (loss) per share basic and diluted |
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$ |
0.002 |
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$ |
(0.26 |
) |
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$ |
0.13 |
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$ |
(58.32 |
) |
| Adjusted earnings / (loss) per share basic and diluted |
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$ |
0.07 |
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$ |
0.05 |
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$ |
0.69 |
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$ |
(0.05 |
) |
| Average Number of Vessels |
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13.2 |
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14.0 |
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13.3 |
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14.2 |
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| Time Charter Equivalent Rate (TCE) |
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$ |
14,467 |
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$ |
14,969 |
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$ |
14,427 |
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$ |
15,419 |
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| Average OPEX per day per vessel |
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$ |
5,392 |
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$ |
5,730 |
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$ |
5,564 |
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$ |
5,361 |
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| (1) |
Please see the section of this release entitled EBITDA and Adjusted EBITDA Reconciliation for a reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by 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”). |
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Spyros Capralos, President and Chief Executive Officer of Star Bulk, commented: “2013 marks the radical transformation of Star Bulk. We successfully raised a total amount of $150 million of new equity in two transactions and strengthened our shareholder base with two major reputable institutional investors, namely Oaktree Capital Management and Monarch Alternative Capital. The equity proceeds were used for ordering eleven eco, fuel efficient newbuilding vessels at quality Japanese and Chinese yards, which will be delivered in 2015 and early 2016. We have achieved advantageous prices and terms, as those orders were placed before prices started to increase by at least 15%.
“In addition, we acquired four modern second-hand vessels, also below today’s market prices and secured bank financing for all four of them.
“We have also increased our third party dry bulk vessels under management to 14, which assists us to achieve economies of scale and further synergies.
“Star Bulk returned to profitability, after two consecutive loss making years and, more importantly generated $11.4 million of free cash flow, through its operations. We believe that our company is now well positioned to take advantage of the improving dry bulk market, as we have repositioned our fleet towards the larger vessel sizes.
“We remain optimistic regarding the fundamental dynamics of the dry bulk industry, as we expect the interplay of contained vessel supply and resilient dry bulk commodity demand growth, to enhance the earnings power of our larger, diverse and competitive asset base.”
Simos Spyrou, Chief Financial Officer of Star Bulk, commented: “In the fourth quarter of 2013, we generated $2.1 million of adjusted net income, or $0.07 per basic and diluted share, which is above street consensus. For the 12 months of 2013, our adjusted net income was $9.7 million, or $0.69 per basic and diluted share.
“We have reduced our average daily operating expenses per vessel to $5,392, versus $5,730 during the fourth quarter, or 6% y-o-y. Our efforts to improve efficiency without compromising on safety and quality, have yielded tangible results once more, as we increased our fleet utilization ratio to 98.3% for the fourth quarter of 2013 versus 97.4% for the respective period in 2012.
“We recently announced the signing of two bareboat hire purchase agreements for two high-quality, fuel efficient, 208,000 dwt, Newcastlemax vessels, with expected deliveries in late 2015 and early 2016. These 10-year bareboat agreements in practice equate to competitive debt financing equal to the 80% of the contract cost of the vessels. Overall, this year we have disposed one of our oldest Capesize vessels, ordered 11 fuel-efficient newbuildings, and acquired 4 modern second hand vessels, two of which with long term time charters attached. As of today, we have an owned fleet of 28 vessels on a fully delivered basis.
“On the financing side, we are pleased to see both existing and new lenders demonstrating their solid support of our expansion plans and our business strategy. Our two new loan agreements with HSH Nordbank and Deutsche Bank, for the financing of the 4 second hand vessels we recently acquired, will provide us with a total amount of $74 million in new debt, at competitive terms.
“As of today our total cash stands at $54 million, inclusive of our committed $39.0 million loan facility with Deutsche Bank. Our current debt stands at $260 million, implying a net debt position of $206 million. Up to now we have paid $79.3 million in the form of advances for our 11 newbuilding vessels. We do not have any capex requirements for the remaining of 2014, which provides us with flexibility in managing our cash flows and overall liquidity. Assuming 60% debt financing on the delivery of our newbuilding vessels, our remaining equity capex for 2015 stands at $77 million and for 2016 at $15 million.”
Owned Fleet Profile (As of March 5, 2014)
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| Vessel Name |
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Type |
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DWT |
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Year Built |
| Star Aurora |
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Capesize |
|
171,199 |
|
2000 |
| Star Big |
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Capesize |
|
168,404 |
|
1996 |
| Star Borealis |
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Capesize |
|
179,678 |
|
2011 |
| Star Mega |
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Capesize |
|
170,631 |
|
1994 |
| Star Polaris |
|
Capesize |
|
179,600 |
|
2011 |
| Star Vega |
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Post panamax |
|
98,681 |
|
2011 |
| Star Challenger |
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Ultramax |
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61,462 |
|
2012 |
| Star Fighter |
|
Ultramax |
|
61,455 |
|
2013 |
| Star Cosmo |
|
Supramax |
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52,247 |
|
2005 |
| Star Delta |
|
Supramax |
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52,434 |
|
2000 |
| Star Epsilon |
|
Supramax |
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52,402 |
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2001 |
| Star Gamma |
|
Supramax |
|
53,098 |
|
2002 |
| Star Kappa |
|
Supramax |
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52,055 |
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2001 |
| Star Omicron |
|
Supramax |
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53,489 |
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2005 |
| Star Theta |
|
Supramax |
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52,425 |
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2003 |
| Star Zeta |
|
Supramax |
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52,994 |
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2003 |
| Total |
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16 |
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1,512,254 |
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| Vessels to be delivered |
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| Star Sirius |
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Post panamax |
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98,681 |
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2011 |
| Total |
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1 |
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98,681 |
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| Newbuildings |
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| Vessel Name |
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Type |
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DWT |
|
Expected Delivery Date |
| Hull 1372 |
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Newcastlemax |
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208,000 |
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November 2015 |
| Hull 1342 |
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Newcastlemax |
|
208,000 |
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January 2016 |
| Hull 1371 |
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Newcastlemax |
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208,000 |
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February 2016 |
| Hull NE 198 |
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Newcastlemax |
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209,000 |
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March 2016 |
| Hull 1343 |
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Newcastlemax |
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208,000 |
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April 2016 |
| Hull 1338 |
|
Capesize |
|
180,000 |
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October 2015 |
| Hull 1339 |
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Capesize |
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180,000 |
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January 2016 |
| Hull 5040 |
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Ultramax |
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60,000 |
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June 2015 |
| Hull 5043 |
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Ultramax |
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60,000 |
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September 2015 |
| Hull NE 196 |
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Ultramax |
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61,000 |
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October 2015 |
| Hull NE 197 |
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Ultramax |
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61,000 |
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November 2015 |
| Total |
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11 |
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1,643,000 |
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| Total Owned Vessels |
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28 |
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3,253,935 |
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Third Party Vessels Under Management (As of March 5, 2014)
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| Drybulk Vessels |
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| Vessel Name |
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Type |
|
DWT |
|
Year Built |
| Big Bang |
|
Capesize |
|
174,109 |
|
2007 |
| Big Fish |
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Capesize |
|
177,662 |
|
2004 |
| Kymopolia |
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Capesize |
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176,990 |
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2006 |
| Obelix |
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Capesize |
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181,433 |
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2011 |
| Pantagruel |
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Capesize |
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180,181 |
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2004 |
| Amami |
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Post panamax |
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98,681 |
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2011 |
| Madredeus |
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Post panamax |
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98,681 |
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2011 |
| Mercurial Virgo |
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Kamsarmax |
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81,545 |
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2011 |
| Pendulum |
|
Kamsarmax |
|
82,619 |
|
2006 |
| Marto |
|
Panamax |
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74,470 |
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2001 |
| Renascentia |
|
Panamax |
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74,732 |
|
1999 |
| Maiden Voyage |
|
Supramax |
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58,722 |
|
2012 |
| Serenity I |
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Supramax |
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53,688 |
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2006 |
| Strange Attractor |
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Supramax |
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55,742 |
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2006 |
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| Total |
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14 |
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1,569,255 |
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Recent Developments
- On January 24, 2014, we entered into two agreements to acquire from Glocal Maritime Ltd, or “Glocal”, an unaffiliated third party, two 98,681 dwt Post panamax vessels, GL Qushan (renamed Star Vega) and GL Daishan (to be renamed Star Sirius) built in 2011, for an aggregate purchase price of $60.0 million to be time chartered back to Glocal, upon their deliveries, for a gross daily rate of $15,000 less brokerage commission of 1.25% for a time charter period between 29 to 33 months and 28 to 32 months respectively. The vessel Star Vega was delivered to us on February 13, 2014 and entered into Glocal’s service and the vessel Star Sirius is expected to be delivered to us in early March 2014.
- On January 27, 2014 we executed a commitment letter with Deutsche Bank AG for a new senior secured credit facility of up to $39.0 million, to be used to partially finance the acquisition of the two Post Panamax vessels Star Sirius and Star Vega.
- On February 11, 2014, the total amount of $35.0 million under our loan facility with HSH Nordbank AG, signed in December 2013, was drawn down.
- On February 17, 2014, we entered as Charterers into a Bareboat Agreement (“BB Agreement”) with CSSC (Hong Kong) Shipping Company Limited (CSSC), an affiliate of Shanghai Waigaoqiao Shipbuilding Co. Ltd of China (“SWS”) in which it was agreed to bareboat charter for a period of 10 years, two 208,000 dwt Newcastlemax dry bulk vessels under Hull No 1372 and 1371 (the “CSSC Vessels”) to be built by SWS. The CSSC vessels, are expected to be delivered to CSSC by SWS in November 2015 and February 2016,respectively, upon which time they will enter into the Company’s service against a monthly hire for each CSSC vessel ranging from $371,000 to $410,800 plus Libor Under the terms of the Bareboat Charters, Star Bulk is required to pay CSSC $11.8 million and $11.3 million, representing the 20% of the construction price of $59.0 million for Hull 1372 and $56.5 million for Hull 1371, respectively (collectively “Construction Prices”)
