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 fourth quarter and year
ended December 31, 2017.
Financial Highlights
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars, except for daily rates
and per share data) |
|
|
|
|
|
Fourth quarter 2017 |
Fourth quarter 2016 |
Year ended December 31, 2017 |
Year ended December 31, 2016 |
|
Voyage Revenues |
$107,707 |
|
$63,241 |
|
$331,976 |
|
$221,987 |
|
|
Net income/(loss) |
$23,884 |
|
($33,126) |
|
($9,771) |
|
($154,228) |
|
|
EBITDA (1) |
$58,378 |
|
($3,030) |
|
$121,508 |
|
($27,015) |
|
|
Adjusted EBITDA (1) |
$55,690 |
|
$15,488 |
|
$128,048 |
|
$21,678 |
|
|
Adjusted Net income /
(loss) (2) |
$21,535 |
|
($16,585) |
|
($4,301) |
|
($105,343) |
|
|
Earnings / (loss) per share basic and diluted |
$0.37 |
|
($0.58) |
|
($0.16) |
|
($3.24) |
|
|
Adjusted earnings / (loss) per share basic and
diluted (2) |
$0.34 |
|
($0.29) |
|
($0.07) |
|
($2.21) |
|
|
Average Number of Vessels |
|
70.6 |
|
|
67.8 |
|
|
69.6 |
|
|
69.8 |
|
|
TCE Revenues |
|
90,019 |
|
|
50,066 |
|
|
262,661 |
|
|
152,870 |
|
|
Daily Time Charter Equivalent Rate ("TCE") (3) |
$13,860 |
|
$8,186 |
|
$10,393 |
|
$6,208 |
|
|
Fleet utilization |
|
100.0% |
|
|
98.0% |
|
|
99.6% |
|
|
96.5% |
|
|
Average daily OPEX per vessel (excluding pre-delivery
expenses) |
$3,850 |
|
$4,047 |
|
$3,906 |
|
$3,801 |
|
|
Average daily Net Cash G&A expenses per vessel (4) (excluding
one-time expenses) |
$1,094 |
|
$1,009 |
|
$1,094 |
|
$1,067 |
|
|
- 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.
- 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.
- 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.
- 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 by the Ownership days and Charter-in
days.
Petros Pappas, Chief Executive Officer
of Star Bulk, commented: “I am very pleased that Star Bulk
returned to profitability after 3 challenging years, reporting
$90.0 million in TCE Revenues, $55.7 million in Adjusted EBITDA and
$21.5 million in Net Income for the quarter ended December 31,
2017.
This performance is underpinned by an average
TCE of $13,860/day per vessel with 100% fleet utilization, and
average Opex and Net Cash G&A expenses per vessel of $3,850/day
and $1,094/day respectively. We have fixed 86% of available ship
days for Q1 2018 at average TCE rates of $12,700/day. Having
terminated the amortization holiday under our restructuring
agreements 6 months ahead of schedule, we repaid $35.6 million in
February 2018 through our cash sweep mechanism, and hope to fully
pay down the deferred amounts by the end of this year. We continue
to look for attractive consolidation opportunities and remain
optimistic about the remainder of 2018.”
Recent Developments
Vessel Deliveries
- On January 3, 2018, we took delivery of the Newcastlemax vessel
Star Eleni (ex- HN 1342), with carrying capacity of 207,810
deadweight tons, built at SWS. The vessel is financed under a
bareboat charter in the amount of $30.0 million.
Financing Activities
- On December 11, 2017, we paid an aggregate amount of $6.1
million to all parties under our Supplemental Agreements that we
entered into with our various lenders in 2017 (the “Supplemental
Agreements”) to modify the terms of our various financing
arrangements. This amount consisted of (i) $4.8 million of excess
cash for the quarter ended September 30, 2017, paid pursuant to the
cash sweep mechanism in the Supplemental Agreements, and (ii) $1.3
million paid from the proceeds from newly issued equity,
representing 20% of the amount of such proceeds used to acquire the
Star Triumph.
- On January 8, 2018, we received a committed term sheet from a
major commercial banking institution for the refinancing of the
Commerzbank $120.0 million Facility (as defined in our annual
report on Form 20-F, filed with the U.S. Securities and Exchange
Commission on March 22, 2017 (the “2016 20-F“)), which currently
has an outstanding balance of $34.7 million. The completion of the
transaction is subject to customary definitive documentation, and
we expect the refinancing to take place in April 2018.
- On February 13, 2018, we received a committed term sheet from
ABN AMRO N.V for the refinancing of the ABN AMRO $87.5 million
Facility (as defined in the 2016 20-F), which currently has an
outstanding balance of $27.5 million. The completion of the
transaction is subject to customary definitive documentation, and
we expect the refinancing to take place in December 2018.
- On February 5, 2018, we paid an aggregate amount of $35.6
million to all parties under our Supplemental Agreements. This
amount represented the excess cash for the quarter ended December
31, 2017, paid pursuant to the cash sweep mechanism in the
Supplemental Agreements, and was equivalent to approximately 170%
of the scheduled amortization for the quarter ended December 31,
2017.
Employment update
As of today, we have covered approx. 86% of the
days in Q1 2018 at average TCE rates of $12,700 per day.
More specifically:Capesize Vessels: 75% of days
at approximately $16,300 per dayPanamax Vessels: 94% of days at
approximately $12,400 per daySupramax Vessels: 88% of days at
approximately $10,300 per day
Existing On the Water Fleet (As of February 27,
2018)
|
|
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 |
|
2015 |
|
July-15 |
5 |
|
Star
Ariadne (1) |
|
Newcastlemax |
|
207,812 |
|
2017 |
|
March-17 |
6 |
|
Star
Eleni |
|
Newcastlemax |
|
207,810 |
|
2018 |
|
January-18 |
7 |
|
Star
Virgo (1) |
|
Newcastlemax |
|
207,810 |
|
2017 |
|
March-17 |
8 |
|
Star
Libra (1) |
|
Newcastlemax |
|
207,765 |
|
2016 |
|
June-16 |
9 |
|
Star
Marisa (1) |
|
Newcastlemax |
|
207,709 |
|
2016 |
|
March-16 |
10 |
|
Leviathan |
|
Capesize |
|
182,511 |
|
2014 |
|
September-14 |
11 |
|
Peloreus |
|
Capesize |
|
182,496 |
|
2014 |
|
July-14 |
12 |
|
Star
Martha |
|
Capesize |
|
180,274 |
|
2010 |
|
October-14 |
13 |
|
Star
Pauline |
|
Capesize |
|
180,274 |
|
2008 |
|
December-14 |
14 |
|
Pantagruel |
|
Capesize |
|
180,181 |
|
2004 |
|
July-14 |
15 |
|
Star
Borealis |
|
Capesize |
|
179,678 |
|
2011 |
|
September-11 |
16 |
|
Star
Polaris |
|
Capesize |
|
179,600 |
|
2011 |
|
November-11 |
17 |
|
Star
Angie |
|
Capesize |
|
177,931 |
|
2007 |
|
October-14 |
18 |
|
Big
Fish |
|
Capesize |
|
177,662 |
|
2004 |
|
July-14 |
19 |
|
Kymopolia |
|
Capesize |
|
176,990 |
|
2006 |
|
July-14 |
20 |
|
Star
Triumph |
|
Capesize |
|
176,343 |
|
2004 |
|
December-17 |
21 |
|
Big
Bang |
|
Capesize |
|
174,109 |
|
2007 |
|
July-14 |
22 |
|
Star
Aurora |
|
Capesize |
|
171,199 |
|
2000 |
|
September-10 |
23 |
|
Amami |
|
Post
Panamax |
|
98,681 |
|
2011 |
|
July-14 |
24 |
|
Madredeus |
|
Post
Panamax |
|
98,681 |
|
2011 |
|
July-14 |
25 |
|
Star
Sirius |
|
Post
Panamax |
|
98,681 |
|
2011 |
|
March-14 |
26 |
|
Star
Vega |
|
Post
Panamax |
|
98,681 |
|
2011 |
|
February-14 |
27 |
|
Star
Angelina |
|
Kamsarmax |
|
82,981 |
|
2006 |
|
December-14 |
28 |
|
Star
Gwyneth |
|
Kamsarmax |
|
82,790 |
|
2006 |
|
December-14 |
29 |
|
Star
Kamila |
|
Kamsarmax |
|
82,769 |
|
2005 |
|
September-14 |
30 |
|
Pendulum |
|
Kamsarmax |
|
82,619 |
|
2006 |
|
July-14 |
31 |
|
Star
Maria |
|
Kamsarmax |
|
82,598 |
|
2007 |
|
November-14 |
32 |
|
Star
Markella |
|
Kamsarmax |
|
82,594 |
|
2007 |
|
September-14 |
33 |
|
Star
Danai |
|
Kamsarmax |
|
82,574 |
|
2006 |
|
October-14 |
34 |
|
Star
Georgia |
|
Kamsarmax |
|
82,298 |
|
2006 |
|
October-14 |
35 |
|
Star
Sophia |
|
Kamsarmax |
|
82,269 |
|
2007 |
|
October-14 |
36 |
|
Star
Mariella |
|
Kamsarmax |
|
82,266 |
|
2006 |
|
September-14 |
37 |
|
Star
Moira |
|
Kamsarmax |
|
82,257 |
|
2006 |
|
November-14 |
38 |
|
Star
Nina |
|
Kamsarmax |
|
82,224 |
|
2006 |
|
January-15 |
39 |
|
Star
Renee |
|
Kamsarmax |
|
82,221 |
|
2006 |
|
December-14 |
40 |
|
Star
Nasia |
|
Kamsarmax |
|
82,220 |
|
2006 |
|
August-14 |
41 |
|
Star
Laura |
|
Kamsarmax |
|
82,209 |
|
2006 |
|
December-14 |
42 |
|
Star
Jennifer |
|
Kamsarmax |
|
82,209 |
|
2006 |
|
April-15 |
43 |
|
Star
Helena |
|
Kamsarmax |
|
82,187 |
|
2006 |
|
December-14 |
44 |
|
Star
Charis |
|
Kamsarmax |
|
81,711 |
|
2013 |
|
March-17 |
45 |
|
Star
Suzanna |
|
Kamsarmax |
|
81,711 |
|
2013 |
|
May-17 |
46 |
|
Mercurial Virgo |
|
Kamsarmax |
|
81,545 |
|
2013 |
|
July-14 |
47 |
|
Star
Iris |
|
Panamax |
|
76,466 |
|
2004 |
|
September-14 |
48 |
|
Star
Emily |
|
Panamax |
|
76,417 |
|
2004 |
|
September-14 |
49 |
|
Idee
Fixe (1) |
|
Ultramax |
|
63,458 |
|
2015 |
|
March-15 |
50 |
|
Roberta
(1) |
|
Ultramax |
|
63,426 |
|
2015 |
|
March-15 |
51 |
|
Laura
(1) |
|
Ultramax |
|
63,399 |
|
2015 |
|
April-15 |
52 |
|
Kaley
(1) |
|
Ultramax |
|
63,283 |
|
2015 |
|
June-15 |
53 |
|
Kennadi |
|
Ultramax |
|
63,262 |
|
2016 |
|
January-16 |
54 |
|
Mackenzie |
|
Ultramax |
|
63,226 |
|
2016 |
|
March-16 |
55 |
|
Star
Challenger |
|
Ultramax |
|
61,462 |
|
2012 |
|
December-13 |
56 |
|
Star
Fighter |
|
Ultramax |
|
61,455 |
|
2013 |
|
December-13 |
57 |
|
Star
Lutas |
|
Ultramax |
|
61,347 |
|
2016 |
|
January-16 |
58 |
|
Honey
Badger |
|
Ultramax |
|
61,320 |
|
2015 |
|
February-15 |
59 |
|
Wolverine |
|
Ultramax |
|
61,292 |
|
2015 |
|
February-15 |
60 |
|
Star
Antares |
|
Ultramax |
|
61,258 |
|
2015 |
|
October-15 |
61 |
|
Star
Acquarius |
|
Ultramax |
|
60,916 |
|
2015 |
|
July-15 |
62 |
|
Star
Pisces |
|
Ultramax |
|
60,916 |
|
2015 |
|
August-15 |
63 |
|
Diva |
|
Supramax |
|
56,582 |
|
2011 |
|
July-17 |
64 |
|
Strange
Attractor |
|
Supramax |
|
55,742 |
|
2006 |
|
July-14 |
65 |
|
Star
Omicron |
|
Supramax |
|
53,489 |
|
2005 |
|
April-08 |
66 |
|
Star
Gamma |
|
Supramax |
|
53,098 |
|
2002 |
|
January-08 |
67 |
|
Star
Zeta |
|
Supramax |
|
52,994 |
|
2003 |
|
January-08 |
68 |
|
Star
Delta |
|
Supramax |
|
52,434 |
|
2000 |
|
January-08 |
69 |
|
Star
Theta |
|
Supramax |
|
52,425 |
|
2003 |
|
December-07 |
70 |
|
Star
Epsilon |
|
Supramax |
|
52,402 |
|
2001 |
|
December-07 |
71 |
|
Star
Cosmo |
|
Supramax |
|
52,247 |
|
2005 |
|
July-08 |
72 |
|
Star
Kappa |
|
Supramax |
|
52,055 |
|
2001 |
|
December-07 |
|
|
|
|
Total dwt: |
|
7,793,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Subject to a bareboat charter accounted for as a capital
lease.
Newbuilding Vessels (As of February 27,
2018)
|
|
Vessel Name |
|
Vessel Type |
|
Capacity (dwt.) |
|
Shipyard |
|
Expected Delivery Date |
1 |
|
HN 1361
(tbn Star Magnanimus) (1) |
|
Newcastlemax |
|
208,000 |
|
SWS,
China |
|
Apr-18 |
2 |
|
HN 1343
(tbn Star Leo) |
|
Newcastlemax |
|
208,000 |
|
SWS,
China |
|
Apr-18 |
|
|
|
|
Total dwt: |
|
416,000 |
|
|
|
|
- Subject to a bareboat charter that will be accounted for as a
capital lease.
Fourth Quarter 2017 and 2016 Results
(*)
(*) Amounts relating to variations in
period–on–period comparisons shown in this section are derived from
the actual numbers in our books and records.
For the fourth quarter of 2017, time charter
equivalent revenues (“TCE Revenues”) (total voyage revenues net of
voyage expenses and charter-in hire expense) excluding Star
Logistics were $90.0 million, compared to $50.1 million for the
fourth quarter of 2016. This increase was primarily attributable to
the significant rise in charterhire rates, which led to a TCE rate
of $13,860 for the fourth quarter of 2017 compared to a TCE rate of
$8,186 for the fourth quarter of 2016, representing a 69% increase.
TCE Revenues also increased as a result of an increase in the
average number of vessels in our fleet to 70.6 in the fourth
quarter of 2017, up from 67.8 in the fourth quarter of 2016, which
caused an increase in Available days for our fleet. We refer you to
footnote 7 under the heading "Summary of Selected Data” set forth
below for information regarding our calculation of TCE rates.
For the fourth quarter of 2017, operating income
was $37.2 million, which includes depreciation of $21.1 million and
a net gain on sale of vessels of $3.0 million. Operating loss of
$23.3 million for the fourth quarter of 2016 included depreciation
of $20.3 million, an impairment loss of $10.7 million and a net
loss on sale of vessels of $6.9 million.
Net income for the fourth quarter of 2017 was
$23.9 million, or $0.37 earnings per share, basic and diluted,
based on 64,080,657 weighted average basic shares and 64,259,874
weighted average diluted shares, respectively. Net loss for the
fourth quarter of 2016 was $33.1 million, or $0.58 loss per share,
basic and diluted, based on 56,721,385 weighted average basic and
diluted shares.
Net income for the fourth quarter of 2017 mainly
included the following non-cash items, other than depreciation
expense:
- Stock-based compensation expense of $0.4 million, or $0.01 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- Net gain on sale of vessels of $3.0 million, or $0.05 per
share, basic and diluted, from the sale of the Star Vanessa;
- Write-off of unamortized deferred finance charges of $0.9
million, or $0.01 per share, basic and diluted, in connection with
the refinancing in full of our 2019 Notes (as defined in the
2016 20-F) in December 2017; and
- Unrealized gain on interest rate swaps of $0.5 million, or
$0.01 per share, basic and diluted.
Net loss for the fourth quarter of 2016 mainly
included the following non-cash items, other than depreciation
expense:
- Stock-based compensation expense of $0.8 million, or $0.01 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- Impairment loss of $10.7 million, or $0.19 per share, basic and
diluted, recognized based on our impairment analysis performed for
the year ended December 31, 2016;
- An aggregate net loss on sale of vessels of $6.9 million, or
$0.12 per share, basic and diluted, relating to the sale of the
Star Aline and the Star Despoina, completed during the fourth
quarter of 2016; and
- Unrealized gain on interest rate swaps of $2.1 million or $0.04
per share, basic and diluted.
Adjusted net income for the fourth
quarter of 2017, which excludes all non-cash items other than
depreciation expense, was $21.5 million, or $0.34 earnings per
share, basic and diluted, compared to adjusted net loss of $16.6
million, or $0.29 loss per share, basic and diluted, for the fourth
quarter of 2016. A reconciliation of Net income / (loss)
to Adjusted Net income/ (loss) and Adjusted earnings / (loss) per
share basic and diluted is set forth below in the financial tables
contained in this release.
Adjusted EBITDA for the fourth quarter
of 2017 and 2016, which excludes all non-cash items, was $55.7
million and $15.5 million, respectively. A reconciliation
of EBITDA and Adjusted EBITDA to net cash provided by/(used in)
operating activities is set forth below in the financial tables
contained in this release.
For the fourth quarter of 2017 and 2016, vessel
operating expenses were $25.4 million and $25.3 million,
respectively. Vessel operating expenses for the fourth quarter of
2017 include pre-delivery and pre-joining expenses of $0.4 million
incurred mainly in connection with the delivery of the Star Eleni
in January 2018. Excluding these expenses, our average
daily operating expenses per vessel for the fourth quarter of 2017
and 2016 were $3,850 and $4,047, respectively. This 5% reduction
demonstrates our continued commitment to reducing our
expenses.
During the fourth quarter of 2017, none of our
vessels underwent their periodic dry docking surveys, but we
incurred expenses of $0.4 million in connection with several
upcoming dry dockings. During the fourth quarter of 2016,
three of our vessels (two Capesize vessels and one Supramax vessel)
underwent their periodic dry docking surveys, resulting in dry
docking expenses of $3.0 million during that period.
General and administrative expenses for the
fourth quarters of 2017 and 2016 were $5.9 million and $5.3
million, respectively. These expenses for the fourth quarter of
2017 include stock-based compensation expense of $0.4 million and
legal fees incurred in connection with the restructuring of our
indebtedness. During the same quarter of 2016, general and
administrative expenses included stock-based compensation expense
of $0.8 million. Excluding the above-mentioned expenses,
our average daily net cash general and administrative
expenses per vessel (including management fees) for the fourth
quarters of 2017 and 2016 were $1,094 and $1,009,
respectively. The increase is mainly attributable to the
higher EUR/USD exchange rate during the fourth quarter of 2017
compared to the fourth quarter of 2016, which resulted in higher
wage expenses.
Charter-in hire expense for the fourth quarters
of 2017 and 2016 was $ 3.1 million and $0.9 million, respectively.
The increase in charter-in hire expense was due to an increase in
charter-in days to 197 for the fourth quarter of 2017 from 92 for
the fourth quarter of 2016, which is attributable to the activities
of our new subsidiary, Star Logistics.
Interest and finance costs net of interest and
other income/ (loss) for the fourth quarters of 2017 and 2016 were
$12.6 million and $10.6 million, respectively. The increase is
attributable to the increase in (i) LIBOR between the corresponding
periods and (ii) the weighted average balance of our outstanding
indebtedness of $1,043.2 million during the fourth quarter of 2017
compared to $967.4 million for the same period in 2016, partially
offset by higher interest income earned due to higher outstanding
cash balances held in time deposits during the respective
periods.
During the fourth quarters of 2017 and 2016 we
recorded a gain on derivative financial instruments of $0.2 million
and $1.2 million, respectively, representing realized and
unrealized gain on the five swaps that are not designated as
accounting hedges, due to the increase in LIBOR during the
corresponding periods.
Years ended December 31, 2017 and 2016 Results
(*)
(*) Amounts relating to variations in
period – on – period comparisons shown in this section are derived
from the actual numbers in our books and records.
For the year ended December 31, 2017, TCE
Revenues excluding Star Logistics were $262.7 million, compared to
$152.9 million for the year ended December 31, 2016. This increase
was primarily attributable to the significant rise in charterhire
rates, which led to a TCE rate of $10,393 for the year ended
December 31, 2017, representing a 67% increase over the TCE rate of
$6,208 for the year ended December 31, 2016. TCE Revenues also
increased as a result of an increase in Available days due to
reactivation of laid-up vessels (we had 620 days of cold lay-up in
2016 while none of the vessels were laid up in 2017). We refer you
to footnote 7 under the heading "Summary of Selected Data” set
forth below for information regarding our calculation of TCE
rates.
For the year ended December 31, 2017, operating
income was $38.8 million, which included depreciation of $82.6
million and a net gain on sale of vessels of $2.6 million.
Operating loss of $109.3 million for the year ended December 31,
2016 included depreciation of $81.9 million, an impairment loss of
$29.2 million and a net loss on sale of vessels of $15.2
million.
Net loss for the year ended December 31, 2017
was $9.8 million, or $0.16 loss per share, basic and diluted, based
on 63,034,394 weighted average basic and diluted shares. Net loss
for the year ended December 31, 2016 was $154.2 million, or $3.24
loss per share, basic and diluted, based on 47,574,454 weighted
average basic and diluted shares.
Net loss for the year ended December 31, 2017
mainly included the following non-cash items, other than
depreciation expense:
- Stock-based compensation expense of $9.3 million, or $0.15 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- An aggregate net gain on sale of vessels of $2.6 million, or
$0.04 per share, basic and diluted, in connection with the sale of
(i) the Star Eleonora in March 2017 and (ii) the Star Vanessa in
November 2017;
- Unrealized gain on interest rate swaps of $2.3 million, or
$0.04 per share, basic and diluted; and
- Write-off of unamortized deferred finance charges of $1.3
million, or $0.02 per share, basic and diluted, in connection with
the cancellation of a previous loan commitment and the refinancing
in full of our 2019 Notes (as defined in the 2016 20-F) in December
2017.
Net loss for the year ended December 31, 2016
mainly included the following items, other than depreciation
expense:
- Stock-based compensation expense of $4.2 million, or $0.09 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- Impairment loss of $29.2 million, or $0.61 per share, basic and
diluted, mainly relating to the sale of two operating vessels and
our impairment analysis performed for the year ended December 31,
2016;
- An aggregate net loss on sale of vessels of $15.2 million, or
$0.32 per basic and diluted share;
- Write-off of unamortized deferred finance charges of $2.4
million, or $0.05 per share, basic and diluted, in connection with:
(i) the mandatory prepayment of outstanding amounts under several
loans due to the sale of the corresponding mortgaged vessels and
(ii) the cancellation of certain loan commitments; and
- Unrealized gain on interest rate swaps of $2.4 million, or
$0.05 per share, basic and diluted.
Adjusted net loss for the year ended
December 31, 2017, which excludes all non-cash items, other than
depreciation expense, amounted to $4.3 million, or $0.07 loss per
share, basic and diluted, compared to $105.3 million, or $2.21 loss
per share, basic and diluted, for the year ended December 31,
2016. A reconciliation of Net income / (loss) to Adjusted
Net income/ (loss) and Adjusted earnings / (loss) per share basic
and diluted is set forth below in the financial tables contained in
this release.
Adjusted EBITDA for the year ended
December 31, 2017 and 2016, which excludes all non-cash items, was
$128.0 million and $21.7 million, respectively. A
reconciliation of EBITDA and Adjusted EBITDA to net cash provided
by/(used in) operating activities is set forth below in the
financial tables contained in this release.
For the year ended December 31, 2017 and 2016,
vessel operating expenses were $101.4 million and $98.8 million,
respectively. Vessel operating expenses for such periods include
one-time expenses, consisting mainly of pre-delivery and
pre-joining expenses, of $2.3 million and $1.8 million,
respectively. Excluding these amounts, our average daily operating
expenses per vessel for the years ended December 31, 2017 and 2016
were $3,906 and $3,801, respectively. The slight increase in
average daily operating expenses for the year ended December 31,
2017 was mainly attributable to the reactivation of all vessels
that were laid-up during the year ended December 31, 2016 (which
lay-ups resulted in 620 days of cold lay-up during the year ended
2016, while none of our vessels were laid-up during the year ended
December 31, 2017).
Dry docking expenses for the year ended December
31, 2017 and 2016 were $4.3 million and $6.0 million, respectively.
During the year ended December 31, 2017, four vessels underwent and
completed their periodic dry docking surveys. During the same
period in 2016, nine vessels underwent their periodic dry docking
surveys, two of which were ongoing from December 2015.
General and administrative expenses for the
years ended December 31, 2017 and 2016 were $31.0 million and $24.6
million, respectively. These expenses for the year ended December
31, 2017 include stock-based compensation expense of $9.3 million
and legal fees of $1.0 million incurred in connection with the
restructuring of our indebtedness. During the year ended December
31, 2016, general and administrative expenses included stock-based
compensation expense of $4.2 million and professional advisory
services of $0.3 million that were not part of our ordinary course
of business. Excluding the above mentioned stock-based
compensation expense and one-time expenses, our average daily net
cash general and administrative expenses per vessel (including all
management fees) for the years ended December 31, 2017 and 2016,
were $1,094 and $1,067, respectively. The slight increase
mainly resulted from the higher EUR/USD exchange rate during the
year ended December 31, 2017 compared to the year ended December
31, 2016 which resulted in higher wage expenses.
During the year ended December 31, 2017, we
recognized other operational gain of $2.9 million, resulting mainly
from the settlement proceeds of a commercial dispute. During the
year ended December 31, 2016, we recognized other operational gain
of $1.6 million, mainly consisting of gain from insurance
claims.
Interest and finance costs net of interest and
other income/(loss) for the years ended December 31, 2017 and 2016
were $47.5 million and $40.3 million, respectively. The increase is
attributable to: (i) the increase in LIBOR between the
corresponding periods, (ii) the increase in the weighted average
balance of our outstanding indebtedness to $1,027.1 million during
the year ended December 31, 2017 compared to $978.8 million for the
same period in 2016 and (iii) the decrease of interest capitalized
from general debt in connection with the payments made for our
newbuilding vessels to $2.4 million from $3.9 million,
respectively, which is recognized as credit in the interest and
finance costs. The increase was partially offset by higher interest
income earned due to higher outstanding cash balances held in time
deposits during the respective periods.
During the year ended December 31, 2017, we
recorded a gain on derivative financial instruments of $0.2
million, while during the corresponding period in 2016 we recorded
a loss on derivative financial instruments of $2.1 million in
connection with our interest rate swaps that do not qualify for
hedge accounting. The reversal of the aforementioned loss into gain
is attributable to the increase in LIBOR.
Liquidity and Capital
Resources
Cash Flows
Net cash provided by operating
activities for the year ended December 31, 2017 was $81.0 million,
whereas net cash used in operating activities for the year ended
December 31, 2016 was $33.4 million.
The positive change was due to: (i) the
significant recovery of the dry bulk market during the year ended
December 31, 2017 which resulted in a significantly higher TCE rate
of $10,393 compared to $6,208 for the year ended December 31, 2016,
which is also reflected in the increase of Adjusted EBITDA to
$128.0 million for the year ended December 31, 2017 from $21.7
million for 2016, and (ii) a slight net working capital outflow
during the year ended December 31, 2017 compared to a $9.7 million
working capital outflow for the year ended December 31, 2016. These
positive factors were partially offset by higher net interest
expense for the year ended December 31, 2017 compared to the
corresponding period in 2016.
Net cash used in investing activities
for the year, ended December 31, 2017 and 2016 was $126.9 million
and $13.2 million, respectively.
For the year ended December 31, 2017, net cash
used in investing activities consisted of:
- $143.7 million paid for advances and other capitalized expenses
for our newbuilding and newly delivered vessels;
offset partially by:
- $15.2 million of proceeds from the sales of the Star Eleonora
and the Star Vanessa;
- $1.4 million of hull and machinery insurance proceeds; and
- a net decrease of $0.2 million in restricted cash, as required
under our loan agreements
For the year ended December 31, 2016, net cash
used in investing activities consisted of:
- $396.2 million paid for advances and other capitalized expenses
for our newbuilding and newly delivered vessels;
offset partially by:
- $380.2 million of proceeds from the sales of vessels from our
on-the-water fleet and the sales of certain newbuilding vessels,
which were sold upon their delivery from the shipyard;
- $2.5 million of hull and machinery insurance proceeds; and
- a net decrease of $0.2 million in restricted cash, as required
under our loan agreements.
Net cash provided by financing
activities for the years ended December 31, 2017 and 2016 was
$122.0 million and $20.4 million,
respectively.
For the year ended December 31, 2017, net cash
provided by financing activities consisted of:
- $79.9 million in increased capital lease obligations, relating
to two delivered newbuilding vessels, under bareboat charters;
- $30.8 million of proceeds drawn under a loan facility used for
the financing of the Star Charis and the Star Suzanna and the
refinancing of the Heron Vessels Facility (as defined in our 2016
20-F) ;
- $50.0 million proceeds from the issuance of our 8.30% senior
unsecured notes due 2022, used to redeem in full our 2019
Notes, in December 2017 (as described below) and
- $51.5 million of proceeds, net of aggregate private placement
agent’s fees and other offering expenses of $1.0 million, from a
private placement of our common shares completed in February
2017;
offset partially by:
- $21.4 million paid in aggregate in connection with: (i) the
regular amortization of outstanding vessel financings, (ii) capital
lease installments, (iii) the partial prepayment of a loan facility
due to the sale of the Star Eleonora (iv) the prepayment to the
banks of an amount equal to 20% of the equity issuance proceeds
used for the acquisition of four vessels during the period and (v)
the excess cash for the quarter ended September 30, 2017, paid
pursuant to the cash sweep mechanism in our Supplemental
Agreements;
- $14.8 million used for the prepayment in full of the Heron
Vessels Facility;
- $50.0 used to redeem in full the 2019 Notes; and
- $0.9 million of financing fees, paid in connection with the
restructuring of our indebtedness and the new facility used for the
financing of Star Charis and Star Suzanna and the refinancing of
the Heron Vessels Facility and a further $2.1 million of financing
fees, paid in connection with the issuance of our senior unsecured
notes due 2022.
For the year ended December 31, 2016, net cash
provided by financing activities consisted of:
- $86.4 million in increased capital lease obligations for two
delivered newbuilding vessels under bareboat charters;
- an aggregate of $65.4 million of proceeds from loan facilities
for the financing of delivery installments for four of our
newbuilding vessels delivered during this period; and
- $50.6 million of proceeds, net of underwriting discounts and
commissions and other offering expenses of $0.3 million, from a
public offering of our common shares completed in September
2016;
offset partially by:
- $181.2 million paid in aggregate in connection with: (i) the
regular amortization of outstanding vessel financings, (ii) capital
lease installments and (iii) mandatory prepayment of several loan
facilities due to the sale of the corresponding mortgaged vessels;
and
- $0.5 million of financing fees, paid in connection with the
restructuring of our indebtedness.
Summary of Selected Data
|
|
|
|
|
(TCE rates expressed in
U.S. dollars) |
|
|
|
|
|
Fourth quarter |
|
Fourth quarter |
|
|
|
2017 |
|
2016 |
|
Average number of
vessels (1) |
|
70.6 |
|
67.8 |
|
Number of vessels
(2) |
|
71 |
|
67 |
|
Average age of
operational fleet (in years) (3) |
|
8.2 |
|
7.7 |
|
Ownership days (4) |
|
6,495 |
|
6,242 |
|
Available days (5) |
|
6,495 |
|
6,116 |
|
Charter-in days
(6) |
|
197 |
|
92 |
|
Fleet utilization
(7) |
|
100.0% |
|
98.0% |
|
Daily Time Charter
Equivalent Rate (8) |
$13,860 |
|
$8,186 |
|
Average daily OPEX per
vessel (9) |
$3,911 |
|
$4,047 |
|
Average
daily OPEX per vessel (excl. pre-delivery expenses) |
$3,850 |
|
$4,047 |
|
|
|
|
|
|
|
Year ended |
|
Year ended |
|
|
December 31, 2017 |
|
December 31, 2016 |
|
Average number of
vessels (1) |
|
69.6 |
|
69.8 |
|
Number of vessels
(2) |
|
71 |
|
67 |
|
Average age of
operational fleet (in years) (3) |
|
8.2 |
|
7.7 |
|
Ownership days (4) |
|
25,387 |
|
25,534 |
|
Available days (5) |
|
25,272 |
|
24,623 |
|
Charter-in days
(6) |
|
428 |
|
366 |
|
Fleet utilization
(7) |
|
99.6% |
|
96.5% |
|
Daily Time Charter
Equivalent Rate (8) |
$10,393 |
|
$6,208 |
|
Average daily OPEX per
vessel (9) |
$3,995 |
|
$3,871 |
|
Average
daily OPEX per vessel (excl. pre-delivery expenses) |
$3,906 |
|
$3,801 |
|
|
|
|
|
|
- Average number of vessels is the number of vessels that
constituted our operating fleet for the relevant period, as
measured by the sum of the number of days each operating vessel was
a part of our operating fleet during the period divided by the
number of calendar days in that period.
- As of the last day of the periods reported.
- Average age of operational fleet is calculated as of the end of
each period.
- Ownership days are the total calendar days each vessel in the
fleet was owned by us for the relevant period.
- Available days for the fleet are the Ownership days after
subtracting off-hire days for major repairs, dry docking or special
or intermediate surveys and lay-up days, if any.
- Charter-in days are the total days that we charter-in
third-party vessels.
- Fleet utilization is calculated by dividing (x) Available days
plus Charter-in days by (y) Ownership days plus charter-in days for
the relevant period.
- Represents the weighted average daily TCE rates of our entire
fleet. TCE rate is a measure of the average daily revenue
performance of a vessel on a per voyage basis. Our method of
calculating TCE rate is determined by dividing voyage revenues (net
of voyage expenses, charter-in hire expense and amortization of
fair value of above/below market acquired time charter agreements)
by Available days for the relevant time period. Voyage expenses
primarily consist of port, canal and fuel costs that are unique to
a particular voyage, which would otherwise be paid by the charterer
under a time charter contract, as well as commissions. TCE rate is
a standard shipping industry performance measure used primarily to
compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e.,
voyage charters, time charters and bareboat charters) under its
vessels may be employed between the periods. We included TCE
revenues, a non-GAAP measure, as it provides additional meaningful
information in conjunction with voyage revenues, the most directly
comparable GAAP measure, and it assists our management in making
decisions regarding the deployment and use of our operating vessels
and in evaluating our financial performance. The above reported TCE
rates for the fourth quarter of 2017 and the year ended December
31, 2017, calculated excluding Star Logistics. For the detail
calculation please see the table at the back of this release with
the reconciliation of Voyage Revenues to TCE.
- Average daily OPEX per vessel is calculated by dividing vessel
operating expenses by Ownership days.
Unaudited Consolidated Statement of
Operations
|
|
|
|
|
|
|
|
|
(Expressed in thousands
of U.S. dollars except for share and per share data) |
|
Fourth quarter2017 |
|
Fourth quarter2016 |
|
Year ended December 31, 2017 |
|
Year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
Voyage revenues |
|
$ |
107,707 |
|
|
$ |
63,241 |
|
|
$ |
331,976 |
|
|
$ |
221,987 |
|
Management fee
income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
119 |
|
Total
revenues |
|
|
107,707 |
|
|
|
63,241 |
|
|
|
331,976 |
|
|
|
222,106 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
(15,252 |
) |
|
|
(12,320 |
) |
|
|
(64,682 |
) |
|
|
(65,821 |
) |
Charter-in hire
expense |
|
|
(3,128 |
) |
|
|
(855 |
) |
|
|
(5,325 |
) |
|
|
(3,550 |
) |
Vessel operating
expenses |
|
|
(25,399 |
) |
|
|
(25,264 |
) |
|
|
(101,428 |
) |
|
|
(98,830 |
) |
Dry docking
expenses |
|
|
(362 |
) |
|
|
(2,992 |
) |
|
|
(4,262 |
) |
|
|
(6,023 |
) |
Depreciation |
|
|
(21,129 |
) |
|
|
(20,342 |
) |
|
|
(82,623 |
) |
|
|
(81,935 |
) |
Management fees |
|
|
(1,925 |
) |
|
|
(1,824 |
) |
|
|
(7,543 |
) |
|
|
(7,604 |
) |
General and
administrative expenses |
|
|
(5,860 |
) |
|
|
(5,347 |
) |
|
|
(30,955 |
) |
|
|
(24,602 |
) |
Gain/(Loss) on forward
freight agreements and bunker swaps |
|
|
(300 |
) |
|
|
128 |
|
|
|
(841 |
) |
|
|
411 |
|
Impairment loss |
|
|
- |
|
|
|
(10,684 |
) |
|
|
- |
|
|
|
(29,221 |
) |
Other operational
loss |
|
|
(266 |
) |
|
|
(397 |
) |
|
|
(989 |
) |
|
|
(503 |
) |
Other operational
gain |
|
|
138 |
|
|
|
171 |
|
|
|
2,918 |
|
|
|
1,565 |
|
Gain/(Loss) on sale of
vessels |
|
|
2,996 |
|
|
|
(6,862 |
) |
|
|
2,598 |
|
|
|
(15,248 |
) |
|
|
|
|
|
|
|
|
|
Operating
income/(loss) |
|
|
37,220 |
|
|
|
(23,347 |
) |
|
|
38,844 |
|
|
|
(109,255 |
) |
|
|
|
|
|
|
|
|
|
Interest and finance
costs |
|
|
(13,585 |
) |
|
|
(10,920 |
) |
|
|
(50,458 |
) |
|
|
(41,217 |
) |
Interest and other
income/(loss) |
|
|
980 |
|
|
|
368 |
|
|
|
2,997 |
|
|
|
876 |
|
Gain/(Loss) on
derivative financial instruments |
|
|
179 |
|
|
|
1,169 |
|
|
|
246 |
|
|
|
(2,116 |
) |
Loss on debt
extinguishment |
|
|
(871 |
) |
|
|
(123 |
) |
|
|
(1,257 |
) |
|
|
(2,375 |
) |
Total other
expenses, net |
|
|
(13,297 |
) |
|
|
(9,506 |
) |
|
|
(48,472 |
) |
|
|
(44,832 |
) |
|
|
|
|
|
|
|
|
|
Income/(Loss)
before equity in investee |
|
|
23,923 |
|
|
|
(32,853 |
) |
|
|
(9,628 |
) |
|
|
(154,087 |
) |
|
|
|
|
|
|
|
|
|
Equity in income/(loss)
of investee |
|
|
29 |
|
|
|
(6 |
) |
|
|
93 |
|
|
|
126 |
|
|
|
|
|
|
|
|
|
|
Income/(Loss)
before taxes |
|
$ |
23,952 |
|
|
$ |
(32,859 |
) |
|
$ |
(9,535 |
) |
|
$ |
(153,961 |
) |
|
|
|
|
|
|
|
|
|
US Source Income
taxes |
|
|
(68 |
) |
|
|
(267 |
) |
|
|
(236 |
) |
|
|
(267 |
) |
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
23,884 |
|
|
$ |
(33,126 |
) |
|
$ |
(9,771 |
) |
|
$ |
(154,228 |
) |
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
share, basic and diluted |
|
$ |
0.37 |
|
|
$ |
(0.58 |
) |
|
$ |
(0.16 |
) |
|
$ |
(3.24 |
) |
Weighted average number
of shares outstanding, basic and diluted |
|
|
64,080,657 |
|
|
|
56,721,385 |
|
|
|
63,034,394 |
|
|
|
47,574,454 |
|
Weighted average number
of shares outstanding, diluted |
|
|
64,259,874 |
|
|
|
56,721,385 |
|
|
|
63,034,394 |
|
|
|
47,574,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets
|
(Expressed
in thousands of U.S. dollars) |
|
ASSETS |
|
December 31, 2017 |
|
December 31, 2016 |
Cash and cash
equivalents |
|
$ |
257,911 |
|
$ |
181,758 |
Other current
assets |
|
|
54,715 |
|
|
46,708 |
TOTAL CURRENT
ASSETS |
|
|
312,626 |
|
|
228,466 |
|
|
|
|
|
Advances for vessels
under construction and acquisition of vessels and other assets |
|
|
48,574 |
|
|
64,570 |
Vessels and other fixed
assets, net |
|
|
1,775,081 |
|
|
1,707,209 |
Other non-current
assets |
|
|
9,483 |
|
|
11,457 |
TOTAL
ASSETS |
|
$ |
2,145,764 |
|
$ |
2,011,702 |
|
|
|
|
|
Current portion of
long-term debt and finance lease commitments (*) |
|
$ |
189,495 |
|
$ |
6,235 |
Other current
liabilities |
|
|
29,968 |
|
|
21,884 |
TOTAL CURRENT
LIABILITIES |
|
|
219,463 |
|
|
28,119 |
|
|
|
|
|
Long-term debt and
finance lease commitments non-current(net of unamortized deferred
finance fees of $7,154 and $9,253, respectively) |
|
|
789,689 |
|
|
896,332 |
Senior Notes (net of
unamortized deferred finance fees of $2,000 and $1,243,
respectively) |
|
|
48,000 |
|
|
48,757 |
Other non-current
liabilities |
|
|
560 |
|
|
1,264 |
TOTAL
LIABILITIES |
|
$ |
1,057,712 |
|
$ |
974,472 |
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
1,088,052 |
|
|
1,037,230 |
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
2,145,764 |
|
$ |
2,011,702 |
|
|
|
|
|
*The current portion of long-term debt and finance lease
commitments includes an amount of approximately $10.7 million,
relating to (i) the payment in February 2018 of an aggregate $35.6
million to all parties under our Supplemental Agreements (please
see the “Recent Developments” section for further details), (ii)
our announcement that we plan to make debt principal repayments
that will be in total at least equivalent to the amortization
payments scheduled prior to commencement of debt amortization
holidays, for the first and second quarter of 2018 under the cash
sweep mechanism in the Supplemental Agreements and (iii) the
adjustment for the refinancing of Commerzbank and ABN facilities
(please also see the “Recent Developments” section for further
details).
Unaudited Cash Flow Data
|
|
|
|
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars) |
|
Year ended December 31,
2017 |
|
Year ended December 31,
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by / (used in) operating activities |
|
$ |
80,970 |
|
|
$ |
(33,448 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash
provided by / (used in) investing activities |
|
|
(126,852 |
) |
|
|
(13,216 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash
provided by / (used in) financing activities |
|
|
122,035 |
|
|
|
20,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
We consider EBITDA to represent net income
before interest, income taxes, depreciation and amortization.
EBITDA does not represent and should not be considered as an
alternative to net income or cash flow from operating activities,
as determined by United States generally accepted accounting
principles, or U.S. GAAP, and our calculation of EBITDA may not be
comparable to that reported by other companies. EBITDA is included
herein because it is a basis upon which we assess our liquidity
position, because it is a measure used by our lenders as a measure
of our compliance with certain loan covenants and because we
believe that it presents useful information to investors regarding
our ability to service and/or incur indebtedness.
To derive Adjusted EBITDA from EBITDA and
Adjusted Net income/(loss) from Net income/(loss), we excluded
certain gains/losses such as those related to sale of vessels,
stock-based compensation expense, the write-off of the unamortized
fair value of above-market acquired time charters, impairment
losses, the write-off of claims receivable, change in fair value of
forward freight agreements and bunker swaps and the equity in
income/(loss) of investee. We excluded the items described above
when deriving Adjusted EBITDA and Adjusted Net income/(loss)
because we believe that these items do not reflect the ongoing
operational cash inflows and outflows of our fleet.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars) |
|
Fourth quarter 2017 |
|
|
Fourth quarter2016 |
|
|
Year ended December 31, 2017 |
|
|
Year ended December 31, 2016 |
|
Net cash provided
by/(used in) operating activities |
|
$ |
42,495 |
|
|
$ |
7,180 |
|
|
$ |
80,970 |
|
|
$ |
(33,448 |
) |
Net decrease /
(increase) in current assets |
|
|
3,981 |
|
|
|
(4,104 |
) |
|
|
10,462 |
|
|
|
84 |
|
Net increase /
(decrease) in operating liabilities, excluding current
portion of long term debt |
|
|
(3,314 |
) |
|
|
(126 |
) |
|
|
(10,452 |
) |
|
|
9,519 |
|
Impairment loss |
|
|
- |
|
|
|
(10,684 |
) |
|
|
- |
|
|
|
(29,221 |
) |
Loss on debt
extinguishment |
|
|
(871 |
) |
|
|
(123 |
) |
|
|
(1,257 |
) |
|
|
(2,375 |
) |
Stock – based
compensation |
|
|
(414 |
) |
|
|
(782 |
) |
|
|
(9,267 |
) |
|
|
(4,166 |
) |
Amortization of
deferred finance charges |
|
|
(685 |
) |
|
|
(666 |
) |
|
|
(2,660 |
) |
|
|
(2,855 |
) |
Unrealized and accrued
gain/(loss) on derivative financial instruments |
|
|
582 |
|
|
|
2,082 |
|
|
|
1,821 |
|
|
|
4,182 |
|
Change in fair value of
forward freight agreements and bunker swaps |
|
|
77 |
|
|
|
41 |
|
|
|
36 |
|
|
|
41 |
|
Total other expenses,
net |
|
|
13,297 |
|
|
|
9,506 |
|
|
|
48,472 |
|
|
|
44,832 |
|
Gain on hull and
machinery claims |
|
|
137 |
|
|
|
1,472 |
|
|
|
456 |
|
|
|
1,472 |
|
Write-off of claim
receivable |
|
|
- |
|
|
|
(225.00 |
) |
|
|
- |
|
|
|
(225 |
) |
Income tax |
|
|
68 |
|
|
|
267.00 |
|
|
|
236 |
|
|
|
267 |
|
Gain/(Loss) on sale of
vessel |
|
|
2,996 |
|
|
|
(6,862 |
) |
|
|
2,598 |
|
|
|
(15,248 |
) |
Equity in income/(loss)
of investee |
|
|
29 |
|
|
|
(6 |
) |
|
|
93 |
|
|
|
126 |
|
EBITDA |
|
$ |
58,378 |
|
|
$ |
(3,030 |
) |
|
$ |
121,508 |
|
|
$ |
(27,015 |
) |
Less: |
|
|
|
|
|
|
|
|
Equity in income of
investee |
|
|
(29 |
) |
|
|
- |
|
|
|
(93 |
) |
|
|
(126 |
) |
Change in fair value of
forward freight agreements and bunker swaps |
|
|
(77 |
) |
|
|
(41 |
) |
|
|
(36 |
) |
|
|
(41 |
) |
Gain on sale of
vessel |
|
|
(2,996 |
) |
|
|
- |
|
|
|
(2,598 |
) |
|
|
- |
|
Plus: |
|
|
|
|
|
|
|
|
Stock-based
compensation |
|
|
414 |
|
|
|
782 |
|
|
|
9,267 |
|
|
|
4,166 |
|
Write-off of claim
receivable |
|
|
- |
|
|
|
225 |
|
|
|
- |
|
|
|
225 |
|
Impairment loss |
|
|
- |
|
|
|
10,684 |
|
|
|
- |
|
|
|
29,221 |
|
Loss on sale of
vessel |
|
|
- |
|
|
|
6,862 |
|
|
|
- |
|
|
|
15,248 |
|
Equity in loss of
investee |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
|
$ |
55,690 |
|
|
$ |
15,488 |
|
|
$ |
128,048 |
|
|
$ |
21,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss) and Adjusted Net income / (loss)
Reconciliation
|
|
|
|
|
|
|
|
|
(Expressed in thousands of
U.S. dollars) |
|
Fourth quarter 2017 |
|
|
Fourth quarter 2016 |
|
|
Year ended December 31, 2017 |
|
|
Year ended December 31, 2016 |
|
Net income /
(loss) |
|
$ |
23,884 |
|
|
$ |
(33,126 |
) |
|
$ |
(9,771 |
) |
|
$ |
(154,228 |
) |
Amortization of fair value of above market acquired time charter
agreements |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
254 |
|
Write-off of claim receivable |
|
|
- |
|
|
|
225 |
|
|
|
- |
|
|
|
225 |
|
Stock –
based compensation |
|
|
414 |
|
|
|
782 |
|
|
|
9,267 |
|
|
|
4,166 |
|
Unrealized (gain) /
loss on forward freight agreements and bunker swaps |
|
|
(77 |
) |
|
|
(41 |
) |
|
|
(36 |
) |
|
|
(41 |
) |
Unrealized (gain) /
loss on derivative financial instruments |
|
|
(532 |
) |
|
|
(2,081 |
) |
|
|
(2,275 |
) |
|
|
(2,362 |
) |
(Gain) /
loss on sale of vessel |
|
|
(2,996 |
) |
|
|
6,862 |
|
|
|
(2,598 |
) |
|
|
15,248 |
|
Vessel impairment
loss |
|
|
- |
|
|
|
10,684 |
|
|
|
- |
|
|
|
29,221 |
|
Amortization of deferred gain |
|
|
- |
|
|
|
(19 |
) |
|
|
(52 |
) |
|
|
(75 |
) |
Loss on debt
extinguishment |
|
|
871 |
|
|
|
123 |
|
|
|
1,257 |
|
|
|
2,375 |
|
Equity
in income/(loss) of investee |
|
|
(29 |
) |
|
|
6 |
|
|
|
(93 |
) |
|
|
(126 |
) |
Adjusted Net
income / (loss) |
|
$ |
21,535 |
|
|
$ |
(16,585 |
) |
|
$ |
(4,301 |
) |
|
$ |
(105,343 |
) |
Weighted
average number of shares outstanding, basic |
|
|
64,080,657 |
|
|
|
56,721,385 |
|
|
|
63,034,394 |
|
|
|
47,574,454 |
|
Weighted
average number of shares outstanding, diluted |
|
|
64,259,874 |
|
|
|
56,721,385 |
|
|
|
63,034,394 |
|
|
|
47,574,454 |
|
Adjusted Basic
and Diluted Earnings / (Loss) Per Share |
|
$ |
0.34 |
|
|
$ |
(0.29 |
) |
|
$ |
(0.07 |
) |
|
$ |
(2.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation (please refer to the section “Summary of Selected
Data” for the calculation method of TCE)
|
|
|
|
|
|
|
|
|
(In thousands
of U.S. Dollars, except as otherwise stated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2017 |
|
|
Fourth quarter2016 |
|
|
Year ended December 31, 2017 |
|
|
Year ended December 31, 2016 |
|
Voyage revenues |
|
$ |
103,623 |
|
|
$ |
63,241 |
|
|
$ |
327,892 |
|
|
$ |
221,987 |
|
Less: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
|
(13,604 |
) |
|
|
(12,320 |
) |
|
|
(63,034 |
) |
|
|
(65,821 |
) |
Charter-in hire
expenses |
|
|
- |
|
|
|
(855 |
) |
|
|
(2,197 |
) |
|
|
(3,550 |
) |
Amortization of fair
value of below/above market acquired time charter agreements |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
254 |
|
Time Charter
equivalent revenues |
|
$ |
90,019 |
|
|
$ |
50,066 |
|
|
$ |
262,661 |
|
|
$ |
152,870 |
|
|
|
|
|
|
|
|
|
|
Available days for
fleet |
|
|
6,495 |
|
|
|
6,116 |
|
|
|
25,272 |
|
|
|
24,623 |
|
Daily Time
Charter Equivalent Rate ("TCE") |
|
$ |
13,860 |
|
|
$ |
8,186 |
|
|
$ |
10,393 |
|
|
$ |
6,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Wednesday, February 28, 2018 at
11:00 a.m., Eastern Time (ET).
Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +
(44) (0) 1452 542 301 (from outside US). Please quote "Star
Bulk."
A replay of the conference call will be
available until Wednesday, March 7, 2018. The United States replay
number is 1(866) 247-4222; from the UK 0(800) 953-1533; the
standard international replay number is (+44) (0) 1452 550 000 and
the access code required for the replay is: 3128607#.
Slides and audio webcast:
There will also be a simultaneous live webcast
over the Internet through the Star Bulk website (www.starbulk.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About Star Bulk
Star Bulk is a global shipping company providing
worldwide seaborne transportation solutions in the dry bulk sector.
Star Bulk's vessels transport major bulks, which include iron ore,
coal and grain, and minor bulks, which include bauxite, fertilizers
and steel products. Star Bulk was incorporated in the Marshall
Islands on December 13, 2006 and maintains executive offices in
Athens, Greece. Its common stock trades on the Nasdaq Global Select
Market under the symbol "SBLK". On a fully delivered basis, Star
Bulk will have a fleet of 74 vessels, with an aggregate capacity of
8.2 million dwt, consisting of Newcastlemax, Capesize, Post
Panamax, Kamsarmax, Panamax, Ultramax and Supramax vessels with
carrying capacities between 52,055 dwt and 209,537 dwt. Our fleet
currently includes 72 operating vessels, with an additional two
newbuilding vessels under construction in China for expected
delivery in April 2018.
Forward-Looking
StatementsMatters discussed in this press release may
constitute forward looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect,” “pending” and similar
expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, examination by the Company’s management of historical
operating trends, data contained in its records and other data
available from third parties. Although the Company believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company’s control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections.
In addition to these important factors, other
important factors that, in the Company’s view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include general dry bulk shipping market
conditions, including fluctuations in charterhire rates and vessel
values; the strength of world economies; the stability of Europe
and the Euro; fluctuations in interest rates and foreign exchange
rates; changes in demand in the dry bulk shipping industry,
including the market for our vessels; changes in our operating
expenses, including bunker prices, dry docking and insurance costs;
changes in governmental rules and regulations or actions taken by
regulatory authorities; potential liability from pending or future
litigation; general domestic and international political
conditions; potential disruption of shipping routes due to
accidents or political events; the availability of financing and
refinancing; our ability to meet requirements for additional
capital and financing to complete our newbuilding program and grow
our business; the impact of the level of our indebtedness and the
restrictions in our debt agreements; vessel breakdowns and
instances of off‐hire; risks associated with vessel construction;
potential exposure or loss from investment in derivative
instruments; potential conflicts of interest involving our Chief
Executive Officer, his family and other members of our senior
management and our ability to complete acquisition transactions as
planned. Please see our filings with the Securities and
Exchange Commission for a more complete discussion of these and
other risks and uncertainties. The information set forth herein
speaks only as of the date hereof, and the Company disclaims any
intention or obligation to update any forward‐looking statements as
a result of developments occurring after the date of this
communication.
Contacts
Company:Simos Spyrou, Christos
BeglerisCo ‐ Chief Financial Officers Star Bulk Carriers Corp.c/o
Star Bulk Management Inc.40 Ag. Konstantinou Av.Maroussi
15124Athens, GreeceEmail: info@starbulk.comwww.starbulk.com
Investor Relations / Financial Media:
Nicolas BornozisPresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, NY 10169Tel. (212) 661‐7566E‐mail:
starbulk@capitallink.comwww.capitallink.com
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