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
2020.
Financial Highlights
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(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
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Second
quarter 2020 |
Second
quarter 2019 |
Six months
ended June 30, 2020 |
Six months
ended June 30, 2019 |
|
Voyage Revenues |
$ |
146,134 |
|
$ |
157,792 |
|
$ |
306,996 |
|
$ |
324,282 |
|
|
Net income/(loss) |
|
($44,120 |
) |
|
($40,173 |
) |
|
($41,365 |
) |
|
($45,515 |
) |
|
Net cash provided by operating activities |
$ |
23,363 |
|
|
($4,781 |
) |
$ |
55,460 |
|
$ |
7,627 |
|
|
EBITDA (1) |
$ |
8,872 |
|
$ |
11,064 |
|
$ |
66,468 |
|
$ |
57,488 |
|
|
Adjusted EBITDA (1) |
$ |
35,063 |
|
$ |
31,157 |
|
$ |
67,705 |
|
$ |
77,161 |
|
|
Adjusted Net income / (loss) (2) |
|
($18,131 |
) |
|
($20,520 |
) |
|
($40,305 |
) |
|
($26,923 |
) |
|
Earnings / (loss) per share basic |
|
($0.46 |
) |
|
($0.44 |
) |
|
($0.43 |
) |
|
($0.49 |
) |
|
Adjusted earnings / (loss) per share basic (2) |
|
($0.19 |
) |
|
($0.22 |
) |
|
($0.42 |
) |
|
($0.29 |
) |
|
Average Number of Vessels |
|
116.0 |
|
|
107.2 |
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116.0 |
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|
107.2 |
|
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TCE Revenues (3) |
$ |
97,140 |
|
$ |
92,658 |
|
$ |
197,463 |
|
$ |
196,881 |
|
|
Daily Time Charter Equivalent Rate ("TCE") (3) |
$ |
9,402 |
|
$ |
10,549 |
|
$ |
10,128 |
|
$ |
10,880 |
|
|
Average daily OPEX per vessel (4) |
$ |
4,027 |
|
$ |
4,004 |
|
$ |
4,037 |
|
$ |
4,025 |
|
|
Average daily Net Cash G&A expenses per vessel (5) |
$ |
1,048 |
|
$ |
1,009 |
|
$ |
1,052 |
|
$ |
990 |
|
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(1) EBITDA and Adjusted EBITDA are non-GAAP measures. Please see
the table at the end 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”) as well as
for the definition of each measure. To derive Adjusted EBITDA from
EBITDA, we exclude non-cash gains / (losses).(2) Adjusted Net
income / (loss) and Adjusted earnings / (loss) per share basic and
diluted are non-GAAP measures. Please see the table at the end 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, as well as for the
definition of each measure.(3) Daily Time Charter Equivalent Rate
(“TCE”) and TCE Revenues are non-GAAP measures. Please see the
table at the end 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, as well as
for the definition of each measure.(4) Average daily OPEX per
vessel is calculated by dividing vessel operating expenses by
Ownership days.(5) Average daily Net Cash G&A expenses per
vessel is calculated by (1) deducting the Management fee Income (if
any), from, and (2) adding the Management fee expense to, the
General and Administrative expenses (net of stock-based
compensation expense) and (3) then dividing the result by the
sum of Ownership days and Charter-in days. Please see the table at
the end of this release for a reconciliation to General and
administrative expenses, which is the most directly comparable
financial measure calculated and presented in accordance with U.S.
GAAP.
Petros Pappas, Chief Executive Officer
of Star Bulk, commented:
“Star Bulk announced today its second quarter
2020 financial results, reporting TCE Revenues of $97.1 million,
Adjusted EBITDA of $35.1 million, Net loss of $44.1 million
and Adjusted Net Loss of $18.1 million during a period of
unprecedented volatility. Our average TCE for the quarter,
decreased to $9,402/ day per vessel, while daily Opex and Net Cash
G&A expenses per vessel were $4,027/day and $1,048/day
respectively. As of today, we have physical coverage of 60% of Q3
2020 days at an average TCE rate of $12,145/ day.
We continue taking proactive steps to strengthen
our balance sheet via refinancings that improve our Company’s
liquidity. Despite the challenging market conditions, there has
been significant interest from our lenders to engage with Star Bulk
in new transactions. To date we have completed transactions that
have increased our cash balance by $37.4 million and have received
credit committee approval for another $75.0 million of expected net
proceeds that will be finalized over the next two months.
We are optimistic about market fundamentals for
the remainder of the year. There is a record low orderbook as a
result of recent demand shocks and the uncertainty related to
future decarbonization regulations. Dry bulk trade and ton-miles
are expected to recover, propelled by the global infrastructure
stimulus response to Covid19, which, we expect, will lead to a
better balanced dry bulk market“
Recent Developments
Financing Activities
- In July 2020, we drew down $155.3
million in aggregate under the (i) ING $70.0 million Facility, (ii)
Alpha Bank $35.0 million Facility and (iii) Piraeus Bank $50.4
million Facility, and used this amount to refinance the outstanding
amounts under the loan and lease agreements of 14 vessels. The
above facilities refinanced facilities with aggregate outstanding
amounts of $124.9 million.
- In July 2020, we entered into a
loan agreement with a wholly owned subsidiary of NTT Finance
Corporation for an amount of $17.6 million (the “NTT $17.6 million
Facility”). The drawn amount was used to refinance the outstanding
lease agreement of the M/V Star Calypso. The facility will mature 5
years from the drawdown date. The NTT $17.6 million Facility is
secured by a first priority mortgage on M/V Star Calypso. The above
facility refinanced another facility with an outstanding amount of
$10.7 million.
- In July 2020, we signed a
commitment letter with CMBL to sell and leaseback the vessels M/V
Laura, M/V Idee Fixe, M/V Roberta, M/V Kaley, M/V Diva, M/V Star
Sirius and M/V Star Vega. We expect to receive $89.0 million in
aggregate, pursuant to the seven sale and leaseback agreements,
which will refinance the outstanding amounts under the loan and
lease agreements of the aforementioned vessels. The sale and
leaseback agreements are expected to be concluded by the end of
August and the lease terms will be for 5 years with a purchase
option at the expiration of the bareboat charters term.
- In July 2020, we signed a
commitment letter with a Japanese financial institution to sell and
leaseback the vessel M/V Star Lutas. We expect to receive $16.0
million pursuant to the sale and leaseback agreement, which will
refinance the outstanding amount under the loan agreement of the
vessel. The sale and leaseback agreement is expected to be
concluded by the end of September 2020 and the lease term will be
for 7 years with a purchase obligation at the expiration of the
bareboat charter term.
- In July 2020, we signed a
commitment letter with a Chinese financial institution to sell and
leaseback three of our Newcastlemax vessels. We expect to receive
up to $92.6 million in aggregate, pursuant to the three sale and
leaseback agreements, which will refinance the outstanding amount
under the loan agreement of the three vessels. The sale and
leaseback agreements are expected to be concluded in September 2020
and the lease terms will be for 10 years with a purchase obligation
at the expiration of the bareboat charters term.
- In July 2020, we signed a
commitment letter with SPDB Financial Leasing Co. Ltd to sell and
leaseback the vessels M/V Mackenzie, M/V Kennadi, M/V Honey Badger,
M/V Wolverine and M/V Star Antares. We expect to receive up to
$76.5 million in aggregate, pursuant to the five sale and leaseback
agreements, which will refinance the outstanding amount under the
loan agreement of the five vessels. The sale and leaseback
agreements are expected to be concluded in September 2020 and the
lease terms will be for 8 years with a purchase obligation at the
expiration of the bareboat charters term.Should we be able to draw
down the full amounts under the above-mentioned debt refinancing
transactions, we expect to increase our cash balance further by an
aggregate of approximately $75.0 million.
- During the second quarter of 2020,
we drew down a net amount of $5.4 million under the HSBC Working
Capital Facility. As of the date of this press release, $29.6
million is outstanding under this facility.
Scrubber Financing Activities
- During the second quarter of 2020
and July 2020, we drew down $15.0 million of scrubber financing
under the lease agreements with CMBL. As of today we have completed
all scrubber related drawdowns and our scrubber financing balance
stands at $118.6 million.
Interest rate derivative
contractsAs of the date of this press release, we have
agreed to fix the floating LIBOR related component of our interest
cost on approximately 66% of our outstanding balance of vessel
financings at an average 3-month USD LIBOR rate of 46bps and with
an average remaining duration of 3.8 years.
Hedging VLSFO-HSFO spreadAs of
the date of this press release, we have hedged approximately 71,000
metric tons of our estimated fuel consumption for the second half
of 2020 by selling the 2020 Singapore spread between Very
Low-Sulfur Fuel Oil (VLSFO) – High-Sulfur Fuel Oil (HSFO) at an
average price of $232 per ton. In addition we have hedged
approximately 24,000 metric tons of our estimated fuel consumption
by selling the 2021 Singapore spread between VLSFO –HSFO at an
average price of $106 per ton.
Other DevelopmentsOn June 4,
2020, the Oslo BORS (“OSE”) granted our request for delisting our
shares from the OSE. Our common shares were last listed on the OSE
on July 31, 2020 and were delisted on August 3, 2020.
Impact of COVID-19 and
our proactive measuresWhile it is still early to fully
assess the impact of COVID-19 on our financial condition and
operations and on the dry bulk industry in general, we have
identified the following adverse effects of the COVID-19 pandemic
on our business:
- Significant reduction in market
charter rates, as a result of the decreased demand for dry bulk
commodities and the uncertainty with regard to the timing of a
return to more normalized global trade patterns.
- Potential adverse impact on asset
values reflecting the weaker freight markets environment and lack
of liquidity in the second hand market. Star Bulk is fully
compliant with all its financial covenants as of end of the first
half of 2020.
- Significant delays and increased
cost associated with crew testing positive on COVID-19, crew
rotation, supplying our vessels with spares or other supplies and
overhauling or maintenance by attending engineers has been
adversely affected by COVID-19 due to travel restrictions and
quarantine rules.
The Company has taken proactive measures to
ensure the health and wellness of crew and onshore employees while
maintaining effective business continuity and the uninterrupted
service to our customers.
Our business continuity plans onshore for our
global offices in Athens, Limassol, Singapore, New York, Oslo and
Manilla, have allowed for an efficient transition to a remote
working environment. Additionally, we have also placed a
temporary ban on all non-essential travel.
The actual impact of these effects and the
efficacy of any measures we take in response to the challenges
presented by the COVID-19 will depend on how the outbreak will
develop, the duration and extent of the restrictive measures that
are associated with COVID-19 and their impact on global economy and
trade Employment Overview
Daily Time Charter Equivalent Rate (“TCE”) and
TCE Revenues are non-GAAP measures. Please see the table at the end
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, as well as for the
definition of the respective measures.
For the second quarter of 2020 our TCE rate was: Capesize /
Newcastlemax Vessels: $11,363 per day.Post Panamax / Kamsarmax /
Panamax Vessels: $9,703 per day.Ultramax / Supramax Vessels: $6,921
per day.
For first half of 2020 our TCE rate was: Capesize / Newcastlemax
Vessels: $13,902 per day.Post Panamax / Kamsarmax / Panamax
Vessels: $9,079 per day.Ultramax / Supramax Vessels: $7,501 per
day.
Amounts shown throughout the press release and variations in
period–on–period comparisons are derived from the actual unaudited
numbers in our books and records.
Second Quarter 2020 and 2019
Results
Voyage revenues for the second quarter of 2020
decreased to $146.1 million from $157.8 million in the second
quarter of 2019. Adjusted time charter equivalent revenues
(“Adjusted TCE Revenues”) (please see the table at the end of this
release for the calculation of the Adjusted TCE Revenues) were
$96.9 million for the second quarter of 2020, compared to $92.1
million for the second quarter of 2019. Adjusted TCE Revenues were
positively impacted by an increase in realized gain on forward
freight agreements and bunker swaps of $16.0 million in the second
quarter of 2020 from $3.1 million in the second quarter of 2019.
However, the negative impact of COVID-19 led to an overall weak dry
bulk market environment, which is reflected in the lower TCE rate
for the second quarter of 2020 of $9,402 compared to $10,549 for
the second quarter of 2019.
For the second quarter of 2020, operating loss
was $26.2 million, which includes depreciation of $35.3 million
compared to operating loss of $18.4 million for the second quarter
of 2019, which included depreciation of $30.0 million. Depreciation
increased during the second quarter of 2020 due to the increase in
the average number of vessels to 116.0 from 107.2 for the second
quarter of 2019 as well as due to the increase in the cost base of
our vessels due to the recent installation of scrubber equipment
and ballast water management systems on 114 vessels.
For the second quarter of 2020, we had a net
loss of $44.1 million, or $0.46 loss per share, basic and diluted,
based on 95,797,142 weighted average basic and diluted shares. Net
loss for the second quarter of 2019 was $40.2 million, or $0.44
loss per share, basic and diluted, based on 91,841,090 weighted
average basic and diluted shares.
Net loss for the second quarter of 2020,
included the following significant non-cash items, in addition to
the depreciation expense mentioned above:
- Stock-based compensation expense of
$2.1 million, or $0.02 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees; and
- Unrealized loss on forward freight
agreements and bunker swaps of $24.1 million, or $0.25 per share,
basic and diluted.
Net loss for the second quarter of 2019,
included the following significant non-cash items, in addition to
the depreciation expense mentioned above:
- Stock-based compensation expense of
$2.6 million, or $0.03 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees;
- Unrealized loss on forward freight
agreements and bunker swaps of $4.1 million or $0.04 per share,
basic and diluted;
- Impairment loss of $3.4 million, or
$0.04 per share, basic and diluted, recognized in connection with
the agreements signed to sell the vessels Star Anna and Star
Gamma;
- Loss on bad debt of $1.3 million or
$0.01 per basic and diluted share associated with the write‐off of
disputed charterer balances; and
- Net amortization of the fair value
of below and above market acquired time charters of $0.5 million,
or $0.01 per share, basic and diluted, associated with time
charters attached to vessels acquired. The respective net
amortization was recorded as an increase to voyage revenues.
Adjusted net loss for the second quarter of
2020, which excludes certain non-cash items, was $18.1 million, or
$0.19 loss per share, basic and diluted, compared to an adjusted
net loss for the second quarter of 2019 of $20.5 million, or $0.22
loss per share, basic and diluted.
Adjusted EBITDA for the second quarter of 2020,
which excludes certain non-cash items was $35.1 million, compared
to adjusted EBITDA for the second quarter of 2019 of $31.2
million.
For the second quarters of 2020 and 2019, vessel
operating expenses were $42.5 million and $39.1 million,
respectively. This increase is attributable to the increase in the
average number of vessels to 116.0 from 107.2. Our average daily
operating expenses per vessel for the second quarter of 2020 and
2019, were $4,027 and $4,004, respectively.
During the second quarter of 2020, we incurred
$7.5 million dry docking expenses mainly attributable to nine of
our vessels that completed their periodic dry docking surveys
within such period. During the second quarter of 2019, we incurred
dry docking expenses of $19.0 million mainly attributable to ten of
our vessels that completed their periodic dry docking surveys
during such period (four of which had commenced in the first
quarter of 2019), resulting in expenses of $7.0 million while the
remaining $12.0 million were incurred in connection with
in-progress and upcoming dry dockings.
General and administrative expenses for the
second quarters of 2020 and 2019 were $9.0 million and $9.8
million, respectively. The decrease is mainly attributable to the
decrease in stock based compensation expense to $2.1 million in the
second quarter of 2020 from $2.6 million in the second quarter of
2019. Management fees for the second quarters of 2020 and 2019 were
$4.6 million and $4.1 million, respectively. The increase is
attributable to the new management agreements entered into in 2019
in connection with the fleet we acquired during the third quarter
of 2019. Our average daily net cash general and administrative
expenses per vessel (including management fees) for the second
quarters of 2020 and 2019 were $1,048 and $1,009, respectively.
Charter-in hire expense for the second quarters of 2020 and 2019
was $5.3 million and $21.8 million, respectively. This decrease is
attributable to significantly fewer charter-in days of 360 during
the second quarter of 2020 compared to 1,468 days during the second
quarter of 2019.
For the second quarter of 2020, we incurred a
net loss on forward freight agreements and bunker swaps of $8.1
million, consisting of $16.0 million of realized gain and $24.1
million of unrealized loss. For the second quarter of 2019 we
incurred a net loss on forward freight agreements and bunker swaps
of $1.0 million, consisting of realized gain of $3.1 million and
unrealized loss of $4.1 million.
Interest and finance costs net of interest and
other income/(loss) for the second quarters of 2020 and 2019 were
$17.8 million and $21.0 million, respectively. Despite the increase
in the weighted average balance of our outstanding indebtedness of
$1,601.4 million during the second quarter of 2020, compared to
$1,474.6 million for the same period in 2019, the interest and
finance costs net of interest and other income/ (loss) decreased
due to the decrease in the average interest rate on our outstanding
indebtedness, mainly driven by the refinancing of certain of our
debt agreements, the swap agreements that we entered during the
second quarter of 2020 and the lower LIBOR rates during the second
quarter of 2020.
First half 2020 and 2019
Results
Voyage revenues for the first half of 2020
decreased to $307.0 million from $324.3 million in the first half
of 2019. Adjusted TCE Revenues were $196.7 million for the first
half of 2020, compared to $195.7 million for the first half of
2019. Adjusted TCE Revenues were positively impacted by an increase
in realized gain on forward freight agreements and bunker swaps of
$19.6 million in the first half of 2020 compared to a realized gain
of $8.4 million in the first half of 2019, partially
counterbalancing the negative impact of COVID-19 in the dry bulk
market. As a result, the TCE rate for the first half of 2020 was
$10,128 compared to $10,880 for the first half of 2019.
For the first half of 2020, operating loss was
$2.8 million, which includes depreciation of $70.0 million while
for the first half of 2019, operating loss was $1.2 million, which
includes depreciation of $59.8 million. Depreciation increased
during the first half of 2020 due to the increase in the average
number of vessels in our fleet to 116.0 from 107.2..
For the first half of 2020 we had a net loss of
$41.4 million, or $0.43 loss per share, basic and diluted, based on
95,797,142 weighted average basic and diluted shares, while for the
first half of 2019 we had a net loss of $45.5 million, or $0.49
loss per share, basic and diluted, based on 92,457,415 weighted
average basic and diluted shares.
Net loss for the first half of 2020, included
the following significant non-cash items, in addition to
depreciation expense mentioned above:
- Stock-based compensation expense of
$1.2 million, or $0.01 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees, which includes a reversal of previously recognized cost
of $1.2 million following the reassessment of the probability of
achieving the performance conditions for some of our awards;
- Amortization of the fair value of
below-market acquired time charters of $0.7 million, or $0.01 per
share, basic and diluted, associated with time charters attached to
vessels acquired. The respective amortization was recorded as an
increase to voyage revenues; and
- Loss on debt extinguishment of $0.5
million or $0.01 per share, basic and diluted, recognized in
connection with the refinancing of one of our debt facilities.
Net loss for the first half of 2019, included
the following significant non-cash items, in addition to
depreciation expense mentioned above:
- Unrealized loss on forward freight
agreements and bunker swaps of $1.0 million or $0.01 per share,
basic and diluted;
- Stock-based compensation expense of
$2.9 million, or $0.03 per share, basic and diluted, recognized in
connection with common shares granted to our directors and
employees;
- Impairment loss of $3.4 million, or
$0.04 per share, basic and diluted, recognized in connection with
the agreement to sell the vessels Star Anna and Star Gamma;
- Loss on bad debt of $1.3 million or
$0.01 per basic and diluted share associated with the write‐off of
disputed charterer balances; and
- Net amortization of the fair value
of below and above market acquired time charters of $1.2 million,
or $0.01 per share, basic and diluted, associated with time
charters attached to vessels acquired. The respective net
amortization was recorded as an increase to voyage revenues.
Adjusted net loss for the first half of 2020,
which excludes certain non-cash items, was $40.3 million, or $0.42
loss per share, basic and diluted compared to an adjusted net loss
for the first half of 2019 of $26.9 million, or $0.29 loss per
share, basic and diluted.
Adjusted EBITDA for the first half of 2020,
which excludes certain non-cash items was $67.7 million compared to
$77.2 million adjusted EBITDA for the first half of 2019.
For the first half of 2020 and 2019, vessel
operating expenses were $85.2 million and $78.1 million,
respectively. This increase was attributable to the increase in the
average number of vessels to 116.0 from 107.2. Our average daily
operating expenses per vessel for the first half of 2020 and 2019,
were $4,037 and $4,025, respectively.
During the first half of 2020, we incurred $20.9
million dry docking expenses mainly attributable to 25 of our
vessels that completed their periodic dry docking surveys within
such period. During the first half of 2019, we incurred dry docking
expenses of $28.7 million mainly attributable to 12 of our vessels
that completed their periodic dry docking surveys during such
period, resulting in expenses of $12.3 million while the remaining
$16.4 million were incurred in connection with in-progress and
upcoming dry dockings.
General and administrative expenses for the
first half of 2020 were $15.0 million compared to $17.1 million
during the first half of 2019. The decrease is primarily
attributable to the decrease in stock-based compensation expense to
$1.2 million in the first half of 2020 from $2.9 million in the
first half of 2019 affected also by a reversal of previously
recognized cost of $1.2 million following the reassessment of the
probability of achieving the performance conditions for some of our
awards. Management fees for the first half of 2020 and 2019 were
$9.2 million and $8.2 million, respectively. The increase is
attributable to the new management agreements entered into in
connection with the fleet we acquired during the third quarter of
2019. Our average daily net cash general and administrative
expenses per vessel (including management fees) for the first half
of 2020 were increased to $1,052 from $990 during the first half of
2019. This increase in daily figures is attributable to the
significant decrease in ownership and charter-in days in aggregate
during the corresponding periods discussed also below (please see
the table at the end of this release for the calculation of the
Average daily Net Cash G&A expenses per vessel).
Charter-in hire expense for the first half of
2020 and 2019 was $14.1 million and $44.4 million, respectively.
This decrease is attributable to the significant decrease in
charter-in days from 3,208 in the first half of 2019 to 726 during
the first half of 2020.
For the first half of 2020, we incurred a gain
on forward freight agreements and bunker swaps of $19.5 million,
consisting of a realized gain of $19.6 million and an unrealized
loss of $0.1 million. For the first half of 2019, we incurred a
gain on forward freight agreements and bunker swaps of $7.4
million, consisting of a realized gain of $8.4 million and an
unrealized loss of $1.0 million.
Interest and finance costs net of interest and
other income/ (loss) for the first half of 2020 and 2019 were $37.9
million and $42.7 million, respectively. Despite the increase in
the weighted average balance of our outstanding indebtedness to
$1,597.3 million during the first half of 2020 from $1,468.4
million during the first half of 2019, the interest and finance
costs net of interest and other income/ (loss) decreased due to the
decrease in the average interest rate on our outstanding
indebtedness, mainly driven by the refinancing of certain of our
debt agreements, the swap agreements that we entered during the
second quarter of 2020 and the lower LIBOR rates during the first
half of 2020.
Liquidity and Capital ResourcesCash
Flows
Net cash provided by operating
activities for the first half of 2020 and 2019 was $55.5 million
and $7.6 million, respectively.
Despite the decrease in Adjusted EBITDA to $67.7
million during the first half of 2020 from $77.2 million during the
corresponding period in 2019, our cash provided by operating
activities increased in 2020 compared to 2019 due to (i) a net
working capital inflow of $22.1 million compared to a net working
capital outflow of $19.1 million during the first half of 2019 and
(ii) lower net interest expense for the first half of 2020 compared
to the corresponding period in 2019.
Net cash used in investing activities
for the first half of 2020 and 2019 was $48.2 million and $132.1
million.
For the first half of 2020, net cash used in
investing activities consisted of $51.3 million paid in connection
with the acquisition and installation of scrubber equipment and
ballast water management systems for certain of our vessels, offset
partially by insurance proceeds of $3.1 million.
For the first half of 2019, net cash used in
investing activities mainly consisted of (i) $93.2 million paid in
connection with our newbuilding and newly acquired vessels and
other capitalized expenses and (ii) $64.6 million paid for the
acquisition and installation of scrubber equipment and ballast
water management systems for certain of our vessels, offset
partially by proceeds from the sale of three vessels concluded
during the period of $20.0 million and insurance proceeds of $5.7
million.
During the first half of 2020 net cash
used in financing activities was $25.9 million while during the
first half of 2019 net cash provided by financing activities was
$7.0 million.
For the first half of 2020, net cash used in
financing activities mainly consisted of:
- $149.1 million of proceeds from loan and lease financings
including $53.8 million drawn under the HSBC Working Capital
Facility;
offset by:
- $93.4 million lease and debt repayments in connection with the
regular amortization of outstanding vessel financings, $24.2
million repayment under the HSBC Working Capital Facility and $51.6
million early repayment due to the refinancing of certain of our
finance agreements;
- $0.9 million of financing fees paid in connection with the new
financing agreements; and
- $4.8 million of dividends paid in March 2020 for the fourth
quarter of 2019.
For the first half of 2019, net cash provided by
financing activities mainly consisted of:
- $392.4 million of proceeds from
financing including financing from leases;
offset by:
- $366.1 million lease and debt
obligations paid in aggregate in connection with: (i) the regular
amortization of outstanding vessel financings and finance lease
installments, and (ii) early repayment due to the refinancing of
certain of our finance agreements and the sale of three of our
vessels;
- $11.6 million used to repurchase
our common shares in open market transactions;
- $6.2 million of financing fees paid
in connection with the new financing agreements; and
- $1.5 million of prepayment fees
paid in connection with early repaid debt.
Summary of Selected Data
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Average number of vessels (1) |
|
116.0 |
|
|
107.2 |
|
Number of vessels (2) |
|
116 |
|
|
108 |
|
Average age of operational fleet (in years) (3) |
|
8.7 |
|
|
8.1 |
|
Ownership days (4) |
|
10,556 |
|
|
9,754 |
|
Available days (5) |
|
10,307 |
|
|
8,732 |
|
Charter-in days (6) |
|
360 |
|
|
1,468 |
|
Daily Time Charter Equivalent Rate (7) |
$ |
9,402 |
|
$ |
10,549 |
|
Average daily OPEX per vessel (8) |
$ |
4,027 |
|
$ |
4,004 |
|
Average daily Net Cash G&A expenses per vessel (9) |
$ |
1,048 |
|
$ |
1,009 |
|
|
|
|
|
|
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
Average number of vessels (1) |
|
116.0 |
|
|
107.2 |
|
Number of vessels (2) |
|
116 |
|
|
108 |
|
Average age of operational fleet (in years) (3) |
|
8.7 |
|
|
8.1 |
|
Ownership days (4) |
|
21,112 |
|
|
19,412 |
|
Available days (5) |
|
19,426 |
|
|
17,987 |
|
Charter-in days (6) |
|
726 |
|
|
3,208 |
|
Daily Time Charter Equivalent Rate (7) |
$ |
10,128 |
|
$ |
10,880 |
|
Average daily OPEX per vessel (8) |
$ |
4,037 |
|
$ |
4,025 |
|
Average daily Net Cash G&A expenses per vessel (9) |
$ |
1,052 |
|
$ |
990 |
|
|
|
|
|
|
(1) Average number of vessels is the
number of vessels that constituted our owned fleet for the relevant
period, as measured by the sum of the number of days each operating
vessel was a part of our owned fleet during the period divided by
the number of calendar days in that period.(2) As of the last
day of the periods reported.(3) Average age of operational
fleet is calculated as of the end of each period.(4)
Ownership days are the total calendar days each vessel in the fleet
was owned by us for the relevant period, including vessels subject
to sale and leaseback transactions and finance
leases. (5) 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 scrubber
installation. (6) Charter-in days are the total days that we
charter-in vessels not owned by us.(7) 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. (8) Represents the weighted average daily TCE
rates of our operating fleet (including owned fleet and fleet under
charter-in arrangements). TCE rate is a measure of the average
daily net revenue performance of our vessels. Our method of
calculating TCE rate is determined by dividing voyage revenues (net
of voyage expenses, charter-in hire expense, amortization of fair
value of above/below market acquired time charter agreements and
provision for onerous contracts, if any, as well as adjusted for
the impact of realized gain/(loss) on forward freight agreements
(“FFAs”) and bunker swaps) by Available days for the relevant time
period. Available days do not include the Charter-in days as per
the relevant definitions provided above. 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. In the
calculation of TCE Revenues, we also include the realized
gain/(loss) on FFAs and bunker swaps as we believe that this method
better reflects the chartering result of our fleet and is more
comparable to the method used by our peers. TCE revenues and TCE
rate, non-GAAP measures, provide additional meaningful information
in conjunction with voyage revenues, the most directly comparable
GAAP measure, because they assist Company’s management in making
decisions regarding the deployment and use of its vessels and
because the Company believes that they provide useful information
to investors regarding the Company's financial performance. 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, bareboat charters and pool
arrangements) under which its vessels may be employed between the
periods. Our method of computing TCE may not necessarily be
comparable to TCE of other companies due to differences in methods
of calculation. For the detailed calculation please see the table
at the end of this release with the reconciliation of Voyage
Revenues to TCE. (9) Average daily OPEX per vessel is
calculated by dividing vessel operating expenses by Ownership
days.(10) Please see the table at the end of this release for the
reconciliation to General and administrative expenses, the most
directly comparable GAAP measure. We believe that Average daily Net
Cash G&A expenses per vessel is a useful measure for our
management and investors for period to period comparison with
respect to our financial performance since such measure eliminates
the effects of non-cash items which may vary from period to period,
are not part of our daily business and derive from reasons
unrelated to overall operating performance.
Unaudited Consolidated Statement of
Operations
(Expressed
in thousands of U.S. dollars except for share and per share
data) |
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Voyage
revenues |
|
$ |
146,134 |
|
|
$ |
157,792 |
|
|
$ |
306,996 |
|
|
$ |
324,282 |
|
|
Total revenues |
|
|
146,134 |
|
|
|
157,792 |
|
|
|
306,996 |
|
|
|
324,282 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
|
(59,762 |
) |
|
|
(46,423 |
) |
|
|
(115,072 |
) |
|
|
(91,329 |
) |
|
Charter-in
hire expense |
|
|
(5,279 |
) |
|
|
(21,825 |
) |
|
|
(14,053 |
) |
|
|
(44,442 |
) |
|
Vessel
operating expenses |
|
|
(42,506 |
) |
|
|
(39,056 |
) |
|
|
(85,224 |
) |
|
|
(78,133 |
) |
|
Dry docking
expenses |
|
|
(7,522 |
) |
|
|
(18,987 |
) |
|
|
(20,883 |
) |
|
|
(28,702 |
) |
|
Depreciation |
|
|
(35,321 |
) |
|
|
(29,956 |
) |
|
|
(69,958 |
) |
|
|
(59,781 |
) |
|
Management
fees |
|
|
(4,596 |
) |
|
|
(4,099 |
) |
|
|
(9,202 |
) |
|
|
(8,188 |
) |
|
Loss on bad
debt |
|
|
- |
|
|
|
(1,250 |
) |
|
|
- |
|
|
|
(1,250 |
) |
|
General and
administrative expenses |
|
|
(8,958 |
) |
|
|
(9,829 |
) |
|
|
(14,991 |
) |
|
|
(17,062 |
) |
|
Gain/(Loss)
on forward freight agreements and bunker swaps |
|
|
(8,054 |
) |
|
|
(958 |
) |
|
|
19,532 |
|
|
|
7,383 |
|
|
Impairment
loss |
|
|
- |
|
|
|
(3,411 |
) |
|
|
- |
|
|
|
(3,411 |
) |
|
Other
operational loss |
|
|
(559 |
) |
|
|
- |
|
|
|
(610 |
) |
|
|
- |
|
|
Other
operational gain |
|
|
177 |
|
|
|
15 |
|
|
|
654 |
|
|
|
171 |
|
|
Gain/(Loss)
on sale of vessels |
|
|
- |
|
|
|
(387 |
) |
|
|
- |
|
|
|
(700 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
(26,246 |
) |
|
|
(18,374 |
) |
|
|
(2,811 |
) |
|
|
(1,162 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest and
finance costs |
|
|
(17,828 |
) |
|
|
(21,590 |
) |
|
|
(38,381 |
) |
|
|
(43,826 |
) |
|
Interest and
other income/(loss) |
|
|
(14 |
) |
|
|
619 |
|
|
|
433 |
|
|
|
1,096 |
|
|
Loss on debt
extinguishment |
|
|
(76 |
) |
|
|
(796 |
) |
|
|
(618 |
) |
|
|
(1,619 |
) |
|
Total other expenses, net |
|
|
(17,918 |
) |
|
|
(21,767 |
) |
|
|
(38,566 |
) |
|
|
(44,349 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before equity in investee |
|
|
(44,164 |
) |
|
|
(40,141 |
) |
|
|
(41,377 |
) |
|
|
(45,511 |
) |
|
|
|
|
|
|
|
|
|
|
|
Equity in
income/(loss) of investee |
|
|
28 |
|
|
|
27 |
|
|
|
39 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before taxes |
|
$ |
(44,136 |
) |
|
$ |
(40,114 |
) |
|
$ |
(41,338 |
) |
|
$ |
(45,456 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
16 |
|
|
|
(59 |
) |
|
|
(27 |
) |
|
|
(59 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
(44,120 |
) |
|
$ |
(40,173 |
) |
|
$ |
(41,365 |
) |
|
$ |
(45,515 |
) |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share, basic and diluted |
|
$ |
(0.46 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.49 |
) |
|
Weighted
average number of shares outstanding, basic |
|
|
95,797,142 |
|
|
|
91,841,090 |
|
|
|
95,797,142 |
|
|
|
92,457,415 |
|
|
Weighted
average number of shares outstanding, diluted |
|
|
95,797,142 |
|
|
|
91,841,090 |
|
|
|
95,797,142 |
|
|
|
92,457,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets
|
|
(Expressed in thousands of U.S. dollars) |
|
|
|
ASSETS |
|
June 30, 2020 |
|
December 31, 2019 |
|
Cash and
cash equivalents and restricted cash, current |
|
$ |
106,600 |
|
|
125,241 |
|
Other
current assets |
|
|
116,945 |
|
|
140,801 |
|
TOTAL CURRENT ASSETS |
|
|
223,545 |
|
|
266,042 |
|
|
|
|
|
|
|
Vessels and
other fixed assets, net |
|
|
2,939,957 |
|
|
2,965,527 |
|
Restricted
cash, non current |
|
|
1,020 |
|
|
1,021 |
|
Other
non-current assets |
|
|
2,509 |
|
|
6,081 |
|
TOTAL ASSETS |
|
$ |
3,167,031 |
|
$ |
3,238,671 |
|
|
|
|
|
|
|
Current
portion of long-term debt and lease financing |
|
$ |
220,054 |
|
$ |
202,495 |
|
Other
current liabilities |
|
|
104,467 |
|
|
108,436 |
|
TOTAL CURRENT LIABILITIES |
|
|
324,521 |
|
|
310,931 |
|
|
|
|
|
|
|
Long-term
debt and lease financing non-current (net of unamortized deferred
finance fees of $19,520 and $19,034, respectively) |
|
|
1,292,280 |
|
|
1,330,420 |
|
Senior Notes
(net of unamortized deferred finance fees of $975 and $1,179,
respectively) |
|
|
49,025 |
|
|
48,821 |
|
Other
non-current liabilities |
|
|
7,402 |
|
|
4,459 |
|
TOTAL LIABILITIES |
|
$ |
1,673,228 |
|
$ |
1,694,631 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
1,493,803 |
|
|
1,544,040 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
3,167,031 |
|
$ |
3,238,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Cash Flow Data
|
|
|
|
|
|
|
|
|
|
(Expressed in
thousands of U.S. dollars) |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating activities |
|
$ |
55,460 |
|
$ |
7,627 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) investing activities |
|
|
(48,184) |
|
|
(132,093) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) financing activities |
|
|
(25,918) |
|
|
6,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
We include EBITDA herein since it is a basis
upon which we assess our liquidity position. It is also used by our
lenders as a measure of our compliance with certain loan covenants
and we believe that it presents useful information to investors
regarding our ability to service and/or incur indebtedness.
To derive Adjusted EBITDA from EBITDA, we
excluded non-cash gains/(losses) such as those related to sale of
vessels, stock-based compensation expense, the write-off of the
unamortized fair value of above/below market acquired time
charters, impairment losses, the write-off of claims receivable and
loss from bad debt, change in fair value of forward freight
agreements and bunker swaps, provision for onerous contracts, and
the equity in income/(loss) of investee, if any, which may vary
from period to period and for different companies and because these
items do not reflect operational cash inflows and outflows of our
fleet. In addition, together with our scrubber installation program
we decided to bring forward to 2019 the majority of 2020 dry
docking services thus in the Adjusted EBITDA calculation for 2019
we included only the dry docking expenses for the vessels which
were due for their periodic dry dock during 2019.
EBITDA and Adjusted EBITDA do not represent and
should not be considered as alternatives to cash flow from
operating activities or net income, as determined by United States
generally accepted accounting principles, or U.S. GAAP, and our
calculation of EBITDA and Adjusted EBITDA may not be comparable to
that reported by other companies due to differences in methods of
calculation.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
|
|
(Expressed
in thousands of U.S. dollars) |
|
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
Net cash
provided by/(used in) operating activities |
|
|
$ |
23,363 |
|
|
$ |
(4,781 |
) |
|
$ |
55,460 |
|
|
$ |
7,627 |
|
|
Net decrease
/ (increase) in current assets |
|
|
|
(31,607 |
) |
|
|
25,195 |
|
|
|
(32,998 |
) |
|
|
40,541 |
|
|
Net increase
/ (decrease) in operating liabilities, excluding current
portion of long term debt |
|
|
|
27,337 |
|
|
|
(17,197 |
) |
|
|
10,840 |
|
|
|
(21,625 |
) |
|
Impairment
loss |
|
|
|
- |
|
|
|
(3,411 |
) |
|
|
- |
|
|
|
(3,411 |
) |
|
Loss on debt
extinguishment |
|
|
|
(76 |
) |
|
|
(796 |
) |
|
|
(618 |
) |
|
|
(1,619 |
) |
|
Stock –
based compensation |
|
|
|
(2,118 |
) |
|
|
(2,606 |
) |
|
|
(1,216 |
) |
|
|
(2,857 |
) |
|
Amortization
of deferred finance charges |
|
|
|
(1,938 |
) |
|
|
(1,335 |
) |
|
|
(3,663 |
) |
|
|
(2,575 |
) |
|
Unrealized
gain/(loss) on derivative financial instruments |
|
|
|
- |
|
|
|
(149 |
) |
|
|
- |
|
|
|
(149 |
) |
|
Unrealized
gain / (loss) on forward freight agreements and bunker swaps |
|
|
|
(24,101 |
) |
|
|
(4,072 |
) |
|
|
(60 |
) |
|
|
(987 |
) |
|
Total other
expenses, net |
|
|
|
17,918 |
|
|
|
21,767 |
|
|
|
38,566 |
|
|
|
44,349 |
|
|
Gain/(Loss)
on hull and machinery claims |
|
|
|
82 |
|
|
|
- |
|
|
|
91 |
|
|
|
30 |
|
|
Loss on bad
debt |
|
|
|
- |
|
|
|
(1,250 |
) |
|
|
- |
|
|
|
(1,250 |
) |
|
Income
tax |
|
|
|
(16 |
) |
|
|
59 |
|
|
|
27 |
|
|
|
59 |
|
|
Gain/(Loss)
on sale of vessels |
|
|
|
- |
|
|
|
(387 |
) |
|
|
- |
|
|
|
(700 |
) |
|
Equity in
income/(loss) of investee |
|
|
|
28 |
|
|
|
27 |
|
|
|
39 |
|
|
|
55 |
|
|
EBITDA |
|
|
$ |
8,872 |
|
|
$ |
11,064 |
|
|
$ |
66,468 |
|
|
$ |
57,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
(income)/loss of investee |
|
|
|
(28 |
) |
|
|
(27 |
) |
|
|
(39 |
) |
|
|
(55 |
) |
|
Unrealized
(gain)/loss on forward freight agreements and bunker swaps |
|
|
|
24,101 |
|
|
|
4,072 |
|
|
|
60 |
|
|
|
987 |
|
|
(Gain)/Loss
on sale of vessels |
|
|
|
- |
|
|
|
387 |
|
|
|
- |
|
|
|
700 |
|
|
Accelerated
dry docking expenses due in 2020 |
|
|
|
- |
|
|
|
8,394 |
|
|
|
- |
|
|
|
10,523 |
|
|
Stock-based
compensation |
|
|
|
2,118 |
|
|
|
2,606 |
|
|
|
1,216 |
|
|
|
2,857 |
|
|
Loss on bad
debt |
|
|
|
- |
|
|
|
1,250 |
|
|
|
- |
|
|
|
1,250 |
|
|
Impairment
loss |
|
|
|
- |
|
|
|
3,411 |
|
|
|
- |
|
|
|
3,411 |
|
|
Adjusted EBITDA |
|
|
$ |
35,063 |
|
|
$ |
31,157 |
|
|
$ |
67,705 |
|
|
$ |
77,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(Loss) and Adjusted Net
income/(Loss) Reconciliation and calculation of Adjusted
Earnings/(Loss) Per Share
To derive Adjusted Net Income and Adjusted
Earnings/(Loss) Per Share from Net Income, we excluded non-cash
items, as provided in the table below. We believe that Adjusted Net
Income and Adjusted Earnings/(Loss) Per Share assist our management
and investors by increasing the comparability of our performance
from period to period since each such measure eliminates the
effects of such non-cash items as gain/(loss) on sale of assets,
gain/(loss) on derivatives, impairment losses and other items which
may vary from year to year, for reasons unrelated to overall
operating performance. Similarly with what was discussed above, we
excluded from the Adjusted Income/(loss) and Adjusted
Earnings/(loss) per share the accelerated dry docking expenses that
were due in 2020. In addition we believe that the presentation of
the respective measure provides investors with supplemental data
relating to our results of operations; and therefore with a more
complete understanding of factors affecting our business than GAAP
measures alone. Our method of computing Adjusted Net Income and
Adjusted Earnings/ (Loss) Per Share may not necessarily be
comparable to other similarly titled captions of other companies
due to differences in methods of calculation.
The following table reconciles Net income /
(loss) to Adjusted Net income / (loss):
(Expressed
in thousands of U.S. dollars except for share and per share
data) |
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
Net
income / (loss) |
|
$ |
(44,120 |
) |
|
$ |
(40,173 |
) |
|
$ |
(41,365 |
) |
|
$ |
(45,515 |
) |
|
Amortization
of fair value of above/below market acquired time charter
agreements, net |
|
|
(231 |
) |
|
|
(545 |
) |
|
|
(718 |
) |
|
|
(1,186 |
) |
|
Loss on bad
debt |
|
|
- |
|
|
|
1,250 |
|
|
|
- |
|
|
|
1,250 |
|
|
Stock –
based compensation |
|
|
2,118 |
|
|
|
2,606 |
|
|
|
1,216 |
|
|
|
2,857 |
|
|
Unrealized
(gain) / loss on forward freight agreements and bunker swaps |
|
|
24,101 |
|
|
|
4,072 |
|
|
|
60 |
|
|
|
987 |
|
|
Accelerate
dry docking expenses due in 2020 |
|
|
- |
|
|
|
8,394 |
|
|
|
- |
|
|
|
10,523 |
|
|
(Gain) /
loss on sale of vessels |
|
|
- |
|
|
|
387 |
|
|
|
- |
|
|
|
700 |
|
|
Impairment
loss |
|
|
- |
|
|
|
3,411 |
|
|
|
- |
|
|
|
3,411 |
|
|
Loss on debt
extinguishment |
|
|
29 |
|
|
|
105 |
|
|
|
541 |
|
|
|
105 |
|
|
Equity in
income/(loss) of investee |
|
|
(28 |
) |
|
|
(27 |
) |
|
|
(39 |
) |
|
|
(55 |
) |
|
Adjusted Net income / (loss) |
|
$ |
(18,131 |
) |
|
$ |
(20,520 |
) |
|
$ |
(40,305 |
) |
|
$ |
(26,923 |
) |
|
Weighted
average number of shares outstanding, basic |
|
|
95,797,142 |
|
|
|
91,841,090 |
|
|
|
95,797,142 |
|
|
|
92,457,415 |
|
|
Weighted
average number of shares outstanding, diluted |
|
|
95,797,142 |
|
|
|
91,841,090 |
|
|
|
95,797,142 |
|
|
|
92,457,415 |
|
|
Adjusted Earnings / (Loss) Per Share, basic and
diluted |
|
$ |
(0.19 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter
Equivalent (“TCE”) Reconciliation
|
|
|
|
|
|
|
|
|
|
(In thousands of U.S. Dollars, except for TCE rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
Voyage
revenues |
|
$ |
146,134 |
|
|
$ |
157,792 |
|
|
$ |
306,996 |
|
|
$ |
324,282 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
|
(59,762 |
) |
|
|
(46,423 |
) |
|
|
(115,072 |
) |
|
|
(91,329 |
) |
|
Charter-in
hire expense |
|
|
(5,279 |
) |
|
|
(21,825 |
) |
|
|
(14,053 |
) |
|
|
(44,442 |
) |
|
Realized
gain/(loss) on FFAs/bunker swaps |
|
|
16,047 |
|
|
|
3,114 |
|
|
|
19,592 |
|
|
|
8,370 |
|
|
Time
Charter equivalent revenues |
|
$ |
97,140 |
|
|
$ |
92,658 |
|
|
$ |
197,463 |
|
|
$ |
196,881 |
|
|
Amortization
of fair value of below/above market acquired time charter
agreements, net |
|
|
(231 |
) |
|
|
(545 |
) |
|
|
(718 |
) |
|
|
(1,186 |
) |
|
Adjusted Time Charter equivalent revenues |
|
$ |
96,909 |
|
|
$ |
92,113 |
|
|
$ |
196,745 |
|
|
$ |
195,695 |
|
|
|
|
|
|
|
|
|
|
|
|
Available
days |
|
|
10,307 |
|
|
|
8,732 |
|
|
|
19,426 |
|
|
|
17,987 |
|
|
Daily Time Charter Equivalent Rate ("TCE") |
|
$ |
9,402 |
|
|
$ |
10,549 |
|
|
$ |
10,128 |
|
|
$ |
10,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily Net Cash G&A expenses per vessel
Reconciliation
|
|
|
|
|
|
|
|
|
|
(In thousands of U.S. Dollars, except for daily rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter 2020 |
|
Second quarter 2019 |
|
Six months ended June 30, 2020 |
|
Six months ended June 30, 2019 |
|
General and
administrative expenses |
|
$ |
8,958 |
|
$ |
9,829 |
|
$ |
14,991 |
|
$ |
17,062 |
|
Plus: |
|
|
|
|
|
|
|
|
|
Management
fees |
|
|
4,596 |
|
|
4,099 |
|
|
9,202 |
|
|
8,188 |
|
Less: |
|
|
|
|
|
|
|
|
|
Stock –
based compensation |
|
|
(2,118) |
|
|
(2,606) |
|
|
(1,216) |
|
|
(2,857) |
|
Net
Cash G&As expenses (excluding one-time expenses) |
|
$ |
11,436 |
|
$ |
11,322 |
|
$ |
22,977 |
|
$ |
22,393 |
|
|
|
|
|
|
|
|
|
|
|
Ownership
days |
|
|
10,556 |
|
|
9,754 |
|
|
21,112 |
|
|
19,412 |
|
Charter-in
days |
|
|
360 |
|
|
1,468 |
|
|
726 |
|
|
3,208 |
|
Average daily Net Cash G&A expenses per
vessel |
|
$ |
1,048 |
|
$ |
1,009 |
|
$ |
1,052 |
|
$ |
990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, August 6, 2020 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(877) 553-9962 (from the US), 0(808) 238-0669 (from the UK) or +
(44) (0) 2071 928 592 (Standard International Dial In). Please
quote "Star Bulk."
A replay of the conference call will be
available until Thursday, August 13, 2020. The United States replay
number is 1(866) 331-1332; from the UK 0(808) 238-0667; the
standard international replay number is (+44) (0) 3333 009 785 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, New York, Limassol and Singapore. Its common stock trades
on the Nasdaq Global Select Market under the symbol “SBLK”. Star
Bulk owns a fleet of 116 vessels, with an aggregate capacity of
12.9 million dwt, consisting of 17 Newcastlemax, 19 Capesize, 2
Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax
and 17 Supramax vessels with carrying capacities between 52,425 dwt
and 209,537 dwt.
Forward-Looking Statements
Matters 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 charter 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; business disruptions due to natural
disasters or other disasters outside our control, such as the
recent outbreak of COVID-19; the availability of financing and
refinancing; our ability to meet requirements for additional
capital and financing to grow our business; the impact of our
indebtedness and the compliance with the covenants included in our
debt agreements; vessel breakdowns and instances of off‐hire;
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
and when 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.com www.capitallink.com
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