Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq and
Oslo: 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 2019.
Financial Highlights |
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(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
Second quarter2019 |
Second quarter2018 |
Six monthsended June 30,2019 |
Six monthsended June 30,2018 |
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Voyage Revenues |
$157,792 |
$132,604 |
$324,282 |
$253,661 |
Net income/(loss) |
($40,173) |
$10,728 |
($45,515) |
$20,628 |
Net cash provided by operating activities |
($4,781) |
$29,505 |
$7,627 |
$61,087 |
EBITDA (1) |
$11,064 |
$49,388 |
$57,488 |
$93,837 |
Adjusted EBITDA (1) |
$31,157 |
$52,028 |
$77,161 |
$98,450 |
Adjusted Net income / (loss) (2) |
($20,520) |
$13,377 |
($26,923) |
$25,236 |
Earnings / (loss) per share basic |
($0.44) |
$0.17 |
($0.49) |
$0.32 |
Adjusted earnings / (loss) per share basic (2) |
($0.22) |
$0.21 |
($0.29) |
$0.39 |
TCE Revenues (3) |
$92,658 |
$91,537 |
$196,881 |
$173,239 |
Daily Time Charter Equivalent Rate ("TCE") (3) |
$10,549 |
$13,800 |
$10,880 |
$13,208 |
Fleet utilization |
90.9% |
99.3% |
93.7% |
99.6% |
Average daily OPEX per vessel (4) |
$4,004 |
$4,096 |
$4,025 |
$4,075 |
Average daily OPEX per vessel (excl. pre-delivery expenses)
(4) |
$3,939 |
$3,996 |
$3,977 |
$3,993 |
Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (5) |
$1,009 |
$1,072 |
$990 |
$1,086 |
(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”). To derive
Adjusted EBITDA from EBITDA, we exclude non-cash gain / (loss). In
addition, we installed scrubbers on certain of our vessels in the
three months ended June 30, 2019. Some of these vessels were
scheduled to undergo their dry docking surveys due in 2020. In
order to avoid any further off hire days for these vessels in 2020,
we decided to complete the dry docking survey for the vessels
concurrently with the installation of scrubbers in the second
quarter of 2019. As a result, in the three months ended June 30,
2019, we incurred fees and expenses associated with the dry docking
of these vessels, which would have otherwise been incurred in
2020. |
(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. In addition,
as discussed above, for continuity and comparison purposes in the
Adjusted Net Income calculation we include only the dry dock
expenses for the vessels which were due for their periodic dry dock
during 2019. |
(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 the respective
measures. |
(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
2019 financial results, reporting TCE Revenues of $92.7 million,
Adjusted EBITDA of $31.2 million and a Net Loss of $40.2 million
and Adjusted Net Loss of $20.5 million during a period of
significant dry bulk market weakness. Our average TCE for the
quarter, was at $10,549 per vessel 4% above index despite
substantial at times charter discounts we had to accept in order to
reposition our fleet closer to the shipyards where we perform our
scrubber installations, while daily Opex and Net Cash G&A
expenses per vessel remained at top of class levels at $3,939/day
and $1,009/day respectively. As of today, we have fixed 59% of Q3
2019 days at average TCE rates of $14,420.
During Q2, we installed 26 scrubber towers
completing 10 dry docks as well an additional 8 dry docks in
progress. All these dry dock costs were expensed during the quarter
exceeding $19 million. The days spent for dry docks/scrubber
installations were 930 amounting to the equivalent of $9.8 million
in foregone income. In total, up to June 30th 2019, we have
installed 34 scrubbers half of which in Capes and Newcastlemaxes
taking advantage of their market weakness at that time.
We maintain a steadfast focus on our end goal
and, as already communicated to our shareholders, 2019 marks a year
of planting the seeds for a strong performance in 2020. Our plan
is, without disturbing the dry dock cycle, to accelerate all our
2020 dry docks to 2019, so that we complete works concurrently with
the scrubber installations and have no stoppages in 2020 enabling
us to maximize our scrubber return. We expect to have 81 scrubber
towers installed by the end of September, 104 by the end of
December 2019, leaving for Q1 2020 10 scrubber installations on the
Supramaxes we have recently acquired.
As far as the market is concerned, and despite
the trade war shortcomings, we are very optimistic up to the end of
2019 and especially on the bigger sizes as a consequence of much
improved Brazilian iron ore exports along with reduced Chinese
stocks and higher bauxite imports in China as well as, major supply
inefficiencies due to extensive scrubber installations, shipyard
overbookings and consequent substantial off-hires. During 2020,
without a trade war resolution, we may on the macro picture see a
world economy slowdown whereas, on the micro-world of shipping, we
expect further slow steaming due to expensive bunkers, increased
scrapping of inefficient/older tonnage and, overall, an improved
demand picture from that of 2019 as a whole, despite the potential
limitations.”
Recent Developments
Fleet Update
- On May 28, 2019 and July 15, 2019, we took delivery of the
Newcastlemax vessels Debbie H (ex-HN 1389) and Star Ayesha
(ex-HN1390), with a carrying capacity of 206,861 and 206,852
deadweight tons, respectively, both built at Shanghai Waigaoqiao
Shipbuilding Co., Ltd. (“SWS”). The acquisition of both vessels is
financed under bareboat leases with CSSC (Hong Kong) Shipping
Company Limited (“CSSC Leasing”).
- Pursuant to the previously announced agreement, we have agreed
to acquire eleven operating dry bulk vessels (the “Delphin
Vessels”) from Delphin Shipping LLC. As of the date hereof, we have
acquired eight of these eleven vessels, with the first being
delivered to us mid-July. The remaining three vessels are expected
to be delivered during August 2019. To finance the acquisition of
the Delphin Vessels, we have entered into a new seven-year capital
lease with China Merchants Bank Leasing. We have recognized $67.2
million in lease obligations in connection with the acquisition of
the eight vessels we have acquired as of today.
- On June 21, 2019 and July 8, 2019, we agreed to sell the Star
Anna, a 2015 built Ultramax vessel and the Star Gamma a 2002 built
Supramax vessel. We expect to deliver both vessels to their new
owners by the end of September and August, respectively.
Financing Activities
- On May 22, 2019, we entered into an agreement to sell the Star
Libra and simultaneously entered into a bareboat charter contract
with Ocean Trust Co. Ltd. for seven years, with a purchase
obligation at the expiration of the bareboat term. We received
$34.0 million as consideration for the sale and leaseback
agreement, which we used to pay the aggregate outstanding amount
under the previous lease agreement of the Star Libra in July
2019.
- On July 10, 2019, we entered into an agreement to sell the Star
Challenger and simultaneously entered into a bareboat charter party
contract with Kyowa Sansho Co. Ltd. for 11 years, with a purchase
obligation at the expiration of the bareboat term. The amount of
$15.0 million provided under the sale and lease back agreement was
used to pay the outstanding amount of approximately $10.9 million
under the HSH Nordbank AG $35.0 million Facility.
- On July 31, 2019, we entered into a loan agreement with a
wholly owned subsidiary of NTT Finance Corporation, the “NTT
Facility,” for an amount of $17.5 million, which was used to
refinance approximately $11.2 million under the NIBC $32.0 million
Facility which was secured by the Star Aquarius. The NTT Facility
is secured by a first priority mortgage on the aforementioned
vessel and will mature in August 2026.
- In July 2019, we entered into a committed term sheet with China
Export-Import Bank for a loan of up to $106.5 million (the “CEXIM
$106.5 million Facility”). The facility will be available in three
tranches of $35.5 million each, and will be used to refinance the
outstanding amounts under the lease agreements of the Katie K, the
Debbie H and the Star Ayesha. The three tranches are expected to be
drawn by October 2019 and will mature 10 years after each drawdown.
The CEXIM $106.5 million Facility will be secured by first priority
mortgages on the three aforementioned vessels.
- In July 2019 and August 2019, we drew down an amount of $2.8
million under the ING $100.6 million Facility and $9.1 million
under the DNB $310.0 million Facility, which were used to finance
our scrubber installation program. Following these drawdowns, the
undrawn portion of scrubber related financing under all of our debt
and lease agreements stands at $115.3 million.
Share Count Update
- As of the date of this press release we have 94,545,032 common
shares outstanding after giving effect to the repurchase of
shares under our previously announced share repurchase program, the
issuance of new shares in connection with the acquisition of the
Delphin Vessels (as described above) and the issuance of shares
under our equity incentive plans.
Employment update
As of today, we have fixed employment for approximately 59% of
the days in Q3 2019 at average TCE rates of $14,420 per day.
More specifically:
Capesize / Newcastlemax Vessels: approximately 48% of Q3 2019
days at $19,780 per day.
Post Panamax / Kamsarmax / Panamax Vessels: approximately 62% of
Q3 2019 days at $12,465 per day.
Ultramax / Supramax Vessels: approximately 67% of Q3 2019
days at $10,960 per day.
Amounts shown throughout the press release and variations in
period–on–period comparisons are derived from the actual numbers in
our books and records.
Second Quarter 2019 and 2018
Results
Voyage revenues for the second quarter of 2019
increased to $157.8 million from $132.6 million in the second
quarter of 2018. 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
$92.1 million for the second quarter of 2019, compared to $91.5
million for the second quarter of 2018. Adjusted TCE Revenues were
positively impacted by an increase in the average number of vessels
in our fleet to 107.2 in the second quarter of 2019, up from 73.5
in the second quarter of 2018. The TCE rate for the second quarter
of 2019 was $10,549 compared to $13,800 for the second quarter of
2018 reflecting the weaker dry bulk market environment in 2019
compared to the same period in 2018.
For the second quarter of 2019, operating loss
was $18.4 million, which includes depreciation of $30.0 million.
Operating income of $27.3 million for the second quarter of 2018
included depreciation of $22.1 million. Depreciation increased
during the second quarter of 2019 due to a higher average number of
vessels in our fleet as described above. Operating income declined
in the second quarter of 2019 as compared to the second quarter of
2018, because of higher depreciation expense, lower TCE rates as
well as the significantly higher dry docking expense following our
management’s decision to bring forward to 2019 all the 2020 dry
docking services in order to install scrubbers and take advantage
of the low freight market environment.
For the second quarter of 2019 we had a net loss
of $40.2 million, or $0.44 loss per share, basic and diluted, based
on 91,841,090 weighted average basic and diluted shares. Net income
for the second quarter of 2018 was $10.7 million, or $0.17 earnings
per share, basic and diluted, based on 64,233,289 weighted average
basic shares and 64,633,668 weighted average diluted shares,
respectively.
Net loss for the second quarter of 2019,
included the following significant non-cash items, other than
depreciation expense mentioned above:
- Unrealized loss on forward freight agreements and bunker swaps
of $4.1 million or $0.04 per share, basic and diluted;
- 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;
- Impairment loss of $3.4 million, or $0.04 per share, basic and
diluted, recognized in connection with the agreements signed to
sell the 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.
In addition, as mentioned above, we installed
scrubbers on certain of our vessels in the three months ended June
30, 2019. Some of these vessels were scheduled to undergo their dry
docking surveys due in 2020. In order to avoid any further off hire
days for these vessels in 2020, we decided to complete the dry
docking survey for the vessels concurrently with the installation
of scrubbers in the second quarter of 2019. During the second
quarter of 2019, we incurred dry docking expenses of $19.0 million,
$8.4 million of which related to accelerated dry dockings due in
2020. During the second quarter of 2019, 10 of our vessels
completed their periodic dry docking surveys (4 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 forthcoming dry dockings. Dry
docking expenses for the second quarter of 2018 were $2.1 million
corresponding to two of our vessels that underwent their periodic
dry docking surveys.
Net income for the second quarter of 2018,
included the following significant non-cash items, other than
depreciation expense:
- Stock-based compensation expense of $3.9 million, or $0.06 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees; and
- Unrealized gain on forward freight agreements and bunker swaps
of $1.3 million, or $0.02 per share, basic and diluted.
Adjusted net loss for the second quarter of
2019, which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $20.5
million, or $0.22 loss per share, basic and diluted, compared to
adjusted net income of $13.4 million, or $0.21 earnings per share,
basic and diluted, for the second quarter of 2018. A reconciliation
of Net income/(loss) to Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share basic and diluted is set forth in the
financial tables contained in this release.
Adjusted EBITDA for the second quarter of 2019,
which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $31.2
million, compared to $52.0 million for the second quarter of 2018.
A reconciliation of EBITDA and Adjusted EBITDA to net cash provided
by/(used in) operating activities is set forth in the financial
tables contained in this release.
For the second quarters of 2019 and 2018, vessel
operating expenses were $39.1 million and $27.4 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 107.2 from 73.5. Vessel operating
expenses for the second quarter of 2019 included pre-delivery and
pre-joining expenses of $0.6 million compared to $0.7 million in
the second quarter of 2018. Excluding these expenses, our average
daily operating expenses per vessel for the second quarter of 2019
and 2018, were $3,939 and $3,996, respectively.
General and administrative expenses for each of
the second quarters of 2019 and 2018 were $9.8 million and $10.4
million, respectively. Management fees for the second quarters of
2019 and 2018 were $4.1 million and $2.0 million, respectively. The
increase is attributable to the new management agreements entered
into in connection with the acquired fleets during the third
quarter of 2018. Our average daily net cash general and
administrative expenses per vessel (including management fees) for
the second quarter of 2019 were reduced to $1,009 from $1,072
during the second quarter of 2018 (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 second quarters
of 2019 and 2018 was $21.8 million and $24.3 million, respectively.
The decrease is due to lower charter-in rates counterbalanced by
the increase in charter-in days of 1,468 in the second quarter of
2019 compared to 1,157 in the second quarter of 2018. In both
quarters, the charter-in days are attributable to the activities of
our subsidiary Star Logistics.
For the second quarter of 2019 we incurred a
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. For the second quarter of 2018 we incurred a
gain on forward freight agreements and bunker swaps of $2.8
million, consisting of realized gain of $1.5 million and unrealized
gain of $1.3 million.
Interest and finance costs net of interest and
other income/ (loss) for the second quarters of 2019 and 2018 were
$21.0 million and $16.6 million, respectively. The increase is
primarily attributable to the increase in the weighted average
balance of our outstanding indebtedness of $1,474.6 million during
the second quarter of 2019 compared to $1,063.4 million for the
same period in 2018.
First half 2019 and 2018
Results
Voyage revenues for the first half of 2019
increased to $324.3 million from $253.7 million in the first half
of 2018. Adjusted TCE Revenues were $195.7 million for the first
half of 2019, compared to $173.2 million for the first half of
2018. Adjusted TCE Revenues were positively impacted by an increase
in the average number of vessels in our fleet to 107.2 in the first
half of 2019, up from 72.8 in the first half of 2018. The TCE rate
for the first half of 2019 was $10,880 compared to $13,208 for the
first half of 2018 reflecting the weaker dry bulk market
environment in 2019 compared to the same period in 2018.
For the first half of 2019, operating loss was
$1.2 million, which includes depreciation of $59.8 million.
Operating income of $50.5 million for the first half of 2018
included depreciation of $43.2 million. Depreciation increased
during the first half of 2019 due to the higher average number of
vessels in our fleet as described above. Operating income declined
in the first half of 2019 as compared to the first half of 2018,
because of higher depreciation expense, lower TCE rates as well as
the significantly higher dry docking expense as discussed
above.
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 income
for the first half of 2018 was $20.6 million, or $0.32 earnings per
share, basic and diluted, based on 64,170,654 weighted average
basic shares and 64,468,860 weighted average diluted shares,
respectively.
Net loss for the first half of 2019, included
the following significant non-cash items, other than 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.
In addition, during the first half of 2019, we
incurred dry docking expenses of $28.7 million, $10.5 of which
relating to accelerated dry dockings due in 2020. During the first
half of 2019, 12 of our vessels completed their periodic dry
docking surveys, resulting in expenses of $12.3 million and
remaining $16.4 million were incurred in connection with in
progress and forthcoming dry dockings. Dry docking expenses for the
first half of 2018 were $3.3 million corresponding to two of our
vessels that underwent their periodic dry docking surveys.
Net income for the first half of 2018, included
the following significant non-cash items, other than depreciation
expense:
- Stock-based compensation expense of $5.0 million, or $0.08 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees; and
- Unrealized gain on forward freight agreements and bunker swaps
of $0.3 million, or $0.01 per share, basic and diluted.
Adjusted net loss for the first half of 2019,
which excludes for certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $26.9
million, or $0.29 loss per share, basic and diluted, compared to
adjusted net income of $25.2 million, or $0.39 earnings per share,
basic and diluted, for the first half of 2018. A reconciliation of
Net income/(loss) to Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share basic and diluted is set forth in the
financial tables contained in this release.
Adjusted EBITDA for the first half of 2019,
which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $77.2
million, compared to $98.5 million for the first half of 2018. A
reconciliation of EBITDA and Adjusted EBITDA to net cash provided
by/(used in) operating activities is set forth in the financial
tables contained in this release.
For the first half of 2019 and of 2018, vessel
operating expenses were $78.1 million and $53.7 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 107.2 from 72.8. Vessel operating
expenses for the first half of 2019 included pre-delivery and
pre-joining expenses of $0.9 million compared to $1.1 million in
the first half of 2018. Excluding these expenses, our average daily
operating expenses per vessel for the first half of 2019 and 2018,
were $3,977 and $3,993, respectively.
General and administrative expenses for each of
the first half of 2019 and 2018 were $17.1 million and $17.7
million, respectively. Management fees for the first half of 2019
and 2018 were $8.2 million and $3.9 million, respectively. The
increase is attributable to the new management agreements entered
into in connection with the fleets we acquired in the third quarter
of 2018. Our average daily net cash general and
administrative expenses per vessel (including management fees) for
the first half of 2019 were reduced to $990 from $1,086 during the
first half of 2018 (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
2019 and of 2018 was $44.4 million and $40.8 million, respectively.
The increase is due to charter-in days of 3,208 in the first half
of 2019 compared to 2,085 in the first half of 2018. In both
periods, the charter in days are attributable to the activities of
our subsidiary Star Logistics.
For the first half of 2019 we incurred a gain on
forward freight agreements and bunker swaps of $7.4 million,
consisting of realized gain of $8.4 million and unrealized loss of
$1.0 million. For the first half of 2018 we incurred a gain on
forward freight agreements and bunker swaps of $2.0 million,
consisting of unrealized gain of $0.3 million and realized gain of
$1.7 million.
Interest and finance costs net of interest and
other income/ (loss) for the first half of 2019 and 2018 were $42.7
million and $29.9 million, respectively. The increase is primarily
attributable to the increase in the weighted average balance of our
outstanding indebtedness of $1,468.4 million during the first half
of 2019 compared to $1,054.3 million for the same period in
2018.
Liquidity and Capital ResourcesCash
FlowsNet cash provided by operating activities for
the first half of 2019 was $7.6 million, whereas net cash provided
by operating activities for the first half of 2018 was $61.1
million.
The reduction was due to the weaker dry bulk
market in the first half of 2019 compared to the same period in
2018, which resulted in a significantly lower TCE rate of $10,880
compared to $13,208 for the first half of 2018. Despite the
increase in the average number of vessels in our fleet, the
decrease in TCE rates as well as the increased dry docking activity
during the first half of 2019, resulted in a decrease of Adjusted
EBITDA to $77.2 million for the first half of 2019 from $98.5
million for the corresponding period in 2018. This decrease in
Adjusted EBITDA was combined with (i) a net working capital outflow
of $19.1 million during the first half of 2019 compared to a net
working capital outflow of $6.9 million for the first half of 2018
and (ii) higher net interest expense for the first half 2019
compared to the corresponding period in 2018.
Net cash used in investing activities
for the first half of 2019 and 2018 was $132.1 million and $115.6
million, respectively.
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.
For the first half of 2018, net cash used in
investing activities mainly consisted of $115.9 million paid for
advances and other capitalized expenses for our newbuilding and
newly delivered vessels delivered during the period.
Net cash provided by financing
activities for the first half of 2019 and 2018 was $7.0 million and
$21.5 million, respectively.
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 capital 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 mainly 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.
For the first half of 2018, net cash provided by
financing activities mainly consisted of:
- $130.0 million of proceeds from financing transactions
including financing from leases
offset partially by:
- $108.7 million paid in aggregate in connection with: (i) $43.1
million at regular amortization of outstanding vessel financings
and capital lease installments and (iii) $65.6 million of
excess cash for the quarters ended December 31, 2017 and March 31,
2018, paid to our lenders pursuant to the cash sweep mechanism in
our Supplemental Agreements, during the first half 2018.
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Summary of Selected Data |
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Second quarter 2019 |
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Second quarter 2018 |
Average number of
vessels (1) |
107.2 |
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73.5 |
Number of vessels
(2) |
108 |
|
74 |
Average age of
operational fleet (in years) (3) |
8.1 |
|
8.3 |
Ownership days
(4) |
9,754 |
|
6,691 |
Available days
(5) |
8,732 |
|
6,633 |
Charter-in days
(6) |
1,468 |
|
1,157 |
Fleet utilization
(7) |
90.9% |
|
99.3% |
Daily Time Charter
Equivalent Rate (8) |
$10,549 |
|
$13,800 |
Average daily OPEX per
vessel (9) |
$4,004 |
|
$4,096 |
Average daily OPEX per
vessel (excl. pre-delivery expenses) |
$3,939 |
|
$3,996 |
Average daily Net Cash
G&A expenses per vessel (excluding one-time expenses) (10) |
$1,009 |
|
$1,072 |
|
|
|
|
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
Average number of
vessels (1) |
107.2 |
|
72.8 |
Number of vessels
(2) |
108 |
|
74 |
Average age of
operational fleet (in years) (3) |
8.1 |
|
8.3 |
Ownership days
(4) |
19,412 |
|
13,174 |
Available days
(5) |
17,987 |
|
13,116 |
Charter-in days
(6) |
3,208 |
|
2,085 |
Fleet utilization
(7) |
93.7% |
|
99.6% |
Daily Time Charter
Equivalent Rate (8) |
$10,880 |
|
$13,208 |
Average daily OPEX per
vessel (9) |
$4,025 |
|
$4,075 |
Average daily OPEX per
vessel (excl. pre-delivery expenses) |
$3,977 |
|
$3,993 |
Average daily Net Cash
G&A expenses per vessel (excluding one-time expenses) (10) |
$990 |
|
$1,086 |
|
(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 third-party
vessels. |
(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. Starting
with the second quarter of 2019, we include the realized
gain/(loss) on FFAs and bunker swaps in the calculation of the TCE
Revenues. We believe the revised method will better reflect the
chartering result of our fleet and is more comparable to the method
used by our peers. The change has been applied retrospectively for
all periods presented herein. TCE revenues, a non-GAAP measure,
provides additional meaningful information in conjunction with
voyage revenues, the most directly comparable GAAP measure, because
it assists Company’s management in making decisions regarding the
deployment and use of its vessels and because the Company believes
that it provides 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. The
above reported TCE rates for the second quarter and first half of
2018 were calculated excluding Star Logistics. We have excluded the
revenues and expenses of Star Logistics in these periods because
Star Logistics was formed in October 2017, and its revenues and
expenses had not yet normalized in those periods, which obscures
material trends of our TCE rate. As a result, we believe it is more
informative to our investors to present the TCE rate excluding the
revenues and expenses of Star Logistics for those periods. For the
detailed calculation please see the table at the end of this
release with the reconciliation of Voyage Revenues to TCE. We
include TCE rate, 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 assists investors and our management in
evaluating our financial performance. |
(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 quarter2019 |
|
Second quarter2018 |
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Voyage
revenues |
$ |
157,792 |
|
$ |
132,604 |
|
$ |
324,282 |
|
$ |
253,661 |
Total revenues |
157,792 |
|
132,604 |
|
324,282 |
|
253,661 |
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Voyage expenses |
(46,423) |
|
(19,891) |
|
(91,329) |
|
(42,586) |
Charter-in hire expense |
(21,825) |
|
(24,293) |
|
(44,442) |
|
(40,763) |
Vessel operating expenses |
(39,056) |
|
(27,408) |
|
(78,133) |
|
(53,681) |
Dry docking expenses |
(10,593) |
|
(2,149) |
|
(18,179) |
|
(3,269) |
Accelerated dry docking expenses due in 2020 |
(8,394) |
|
- |
|
(10,523) |
|
- |
Depreciation |
(29,956) |
|
(22,075) |
|
(59,781) |
|
(43,243) |
Management fees |
(4,099) |
|
(1,983) |
|
(8,188) |
|
(3,913) |
Loss on bad debt |
(1,250) |
|
- |
|
(1,250) |
|
- |
General and administrative expenses |
(9,829) |
|
(10,383) |
|
(17,062) |
|
(17,702) |
Gain/(Loss) on forward freight agreements and bunker swaps |
(958) |
|
2,812 |
|
7,383 |
|
2,000 |
Impairment loss |
(3,411) |
|
- |
|
(3,411) |
|
- |
Other operational gain |
15 |
|
36 |
|
171 |
|
41 |
Gain/(Loss) on sale of vessels |
(387) |
|
- |
|
(700) |
|
- |
|
|
|
|
|
|
|
|
Operating income/(loss) |
(18,374) |
|
27,270 |
|
(1,162) |
|
50,545 |
|
|
|
|
|
|
|
|
Interest and finance costs |
(21,590) |
|
(16,065) |
|
(43,826) |
|
(30,338) |
Interest and other income/(loss) |
619 |
|
(499) |
|
1,096 |
|
394 |
Gain/(Loss) on derivative financial instruments |
- |
|
- |
|
- |
|
(1) |
Loss on debt extinguishment |
(796) |
|
(21) |
|
(1,619) |
|
(21) |
Total other expenses, net |
(21,767) |
|
(16,585) |
|
(44,349) |
|
(29,966) |
|
|
|
|
|
|
|
|
Income/(Loss) before equity in investee |
(40,141) |
|
10,685 |
|
(45,511) |
|
20,579 |
|
|
|
|
|
|
|
|
Equity in income/(loss) of investee |
27 |
|
43 |
|
55 |
|
49 |
|
|
|
|
|
|
|
|
Income/(Loss) before taxes |
$ |
(40,114) |
|
$ |
10,728 |
|
$ |
(45,456) |
|
$ |
20,628 |
|
|
|
|
|
|
|
|
US Source Income taxes |
(59) |
|
- |
|
(59) |
|
- |
|
|
|
|
|
|
|
|
Net income/(loss) |
$ |
(40,173) |
|
$ |
10,728 |
|
$ |
(45,515) |
|
$ |
20,628 |
|
|
|
|
|
|
|
|
Earnings/(loss) per share, basic and diluted |
$ |
(0.44) |
|
$ |
0.17 |
|
$ |
(0.49) |
|
$ |
0.32 |
Weighted average number of shares outstanding, basic |
91,841,090 |
|
64,233,289 |
|
92,457,415 |
|
64,170,654 |
Weighted average number of shares outstanding, diluted |
91,841,090 |
|
64,633,668 |
|
92,457,415 |
|
64,468,860 |
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets |
|
(Expressed in thousands of U.S. dollars) |
|
ASSETS |
June 30, 2019 |
|
December 31, 2018 |
Cash and cash
equivalents |
$ |
83,088 |
|
$ |
204,921 |
Vessel held for sale |
- |
|
5,949 |
Other current assets |
123,686 |
|
87,966 |
TOTAL CURRENT ASSETS |
206,774 |
|
298,836 |
|
|
|
|
Advances for vessels under construction and acquisition of
vessels |
21,203 |
|
59,900 |
Vessels and other fixed assets, net |
2,791,157 |
|
2,656,108 |
Other non-current assets |
13,294 |
|
7,293 |
TOTAL ASSETS |
$ |
3,032,428 |
|
$ |
3,022,137 |
|
|
|
|
Current portion of long-term debt and finance lease
commitments |
$ |
167,252 |
|
$ |
166,844 |
Other current liabilities |
84,679 |
|
55,873 |
TOTAL CURRENT LIABILITIES |
251,931 |
|
222,717 |
|
|
|
|
Long-term debt and finance lease commitments non-current(net of
unamortized deferred finance fees of $16,080 and $13,972,
respectively) |
1,250,500 |
|
1,226,744 |
Senior Notes (net of unamortized deferred finance fees of
$1,386 and $1,590, respectively) |
48,614 |
|
48,410 |
Other non-current liabilities |
5,493 |
|
4,221 |
TOTAL LIABILITIES |
$ |
1,556,538 |
|
$ |
1,502,092 |
|
|
|
|
SHAREHOLDERS' EQUITY |
1,475,890 |
|
1,520,045 |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ |
3,032,428 |
|
$ |
3,022,137 |
|
Unaudited Cash Flow Data |
|
(Expressed in thousands of U.S. dollars) |
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
|
|
|
|
|
|
Net cash
provided by / (used in) operating activities |
$ |
7,627 |
|
|
$ |
61,087 |
|
|
|
|
|
|
|
Net cash provided by / (used in) investing
activities |
(132,093 |
) |
|
(115,592 |
) |
|
|
|
|
|
|
Net cash provided by / (used in) financing activities |
6,969 |
|
|
21,501 |
|
|
|
|
|
|
|
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.
EBITDA does not represent and should not be
considered as an alternative 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
may not be comparable to that reported by other companies due to
differences in methods of calculation.
To derive Adjusted EBITDA from EBITDA, we
excluded non-cash gain/(loss) 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, as mentioned above, together with our scrubber
installation program and in order to take advantage of the low
freight market and be in a position to have no dry docking in 2020
and maximize our scrubber returns, we have decided to bring forward
to 2019 all the 2020 dry docking services. For continuity and
comparison purposes in the Adjusted EBITDA calculation we include
only the dry docking expenses for the vessels which were due for
their periodic dry dock during 2019.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
|
|
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars) |
Second quarter2019 |
|
Second quarter2018 |
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
Net cash
provided by/(used in) operating activities |
$ |
(4,781) |
|
$ |
29,505 |
|
$ |
7,627 |
|
$ |
61,087 |
Net decrease / (increase) in current assets |
25,195 |
|
3,984 |
|
40,541 |
|
12,762 |
Net increase / (decrease) in operating liabilities,
excluding current portion of long term debt |
(17,197) |
|
1,076 |
|
(21,625) |
|
(5,955) |
Impairment loss |
(3,411) |
|
- |
|
(3,411) |
|
- |
Loss on debt extinguishment |
(796) |
|
(21) |
|
(1,619) |
|
(21) |
Stock – based compensation |
(2,606) |
|
(3,949) |
|
(2,857) |
|
(5,011) |
Amortization of deferred finance charges |
(1,335) |
|
(691) |
|
(2,575) |
|
(1,367) |
Unrealized and accrued gain/(loss) on derivative financial
instruments |
(149) |
|
185 |
|
(149) |
|
573 |
Unrealized gain / (loss) on forward freight agreements and
bunker swaps |
(4,072) |
|
1,266 |
|
(987) |
|
349 |
Total other expenses, net |
21,767 |
|
16,585 |
|
44,349 |
|
29,966 |
Other non-current assets |
- |
|
1,405 |
|
- |
|
1,405 |
Gain on hull and machinery claims |
- |
|
- |
|
30 |
|
- |
Loss on bad debt |
(1,250) |
|
- |
|
(1,250) |
|
- |
Income tax |
59 |
|
- |
|
59 |
|
- |
Gain/(Loss) on sale of vessels |
(387) |
|
- |
|
(700) |
|
- |
Equity in income/(loss) of investee |
27 |
|
43 |
|
55 |
|
49 |
EBITDA |
$ |
11,064 |
|
$ |
49,388 |
|
$ |
57,488 |
|
$ |
93,837 |
|
|
|
|
|
|
|
|
Equity in (income)/loss of investee |
(27) |
|
(43) |
|
(55) |
|
(49) |
Unrealized (gain)/loss on forward freight agreements and bunker
swaps |
4,072 |
|
(1,266) |
|
987 |
|
(349) |
(Gain)/Loss on sale of vessels |
387 |
|
- |
|
700 |
|
- |
Accelerated dry docking expenses due in 2020 |
8,394 |
|
- |
|
10,523 |
|
- |
Stock-based compensation |
2,606 |
|
3,949 |
|
2,857 |
|
5,011 |
Loss on bad debt |
1,250 |
|
- |
|
1,250 |
|
- |
Impairment loss |
3,411 |
|
- |
|
3,411 |
|
- |
Adjusted EBITDA |
$ |
31,157 |
|
$ |
52,028 |
|
$ |
77,161 |
|
$ |
98,450 |
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, for
continuity and comparison purposes we exclude 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 quarter2019 |
|
Second quarter2018 |
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
Net
income / (loss) |
$ |
(40,173) |
|
$ |
10,728 |
|
$ |
(45,515) |
|
$ |
20,628 |
Amortization of fair value of above/below market acquired time
charter agreements |
(545) |
|
- |
|
(1,186) |
|
- |
Loss on bad debt |
1,250 |
|
- |
|
1,250 |
|
- |
Stock – based compensation |
2,606 |
|
3,949 |
|
2,857 |
|
5,011 |
Unrealized (gain) / loss on forward freight agreements and
bunker swaps |
4,072 |
|
(1,266) |
|
987 |
|
(349) |
Accelerate dry docking expenses due in 2020 |
8,394 |
|
- |
|
10,523 |
|
- |
Unrealized (gain) / loss on derivative financial
instruments |
- |
|
(12) |
|
- |
|
(26) |
(Gain) / loss on sale of vessels |
387 |
|
- |
|
700 |
|
- |
Impairment loss |
3,411 |
|
- |
|
3,411 |
|
- |
Loss on debt extinguishment |
105 |
|
21 |
|
105 |
|
21 |
Equity in income/(loss) of investee |
(27) |
|
(43) |
|
(55) |
|
(49) |
Adjusted Net income / (loss) |
$ |
(20,520) |
|
$ |
13,377 |
|
$ |
(26,923) |
|
$ |
25,236 |
Weighted average number of shares outstanding, basic |
91,841,090 |
|
64,233,289 |
|
92,457,415 |
|
64,170,654 |
Weighted average number of shares outstanding, diluted |
91,841,090 |
|
64,633,668 |
|
92,457,415 |
|
64,468,860 |
Adjusted Basic and Diluted Earnings / (Loss) Per
Share |
$ |
(0.22) |
|
$ |
0.21 |
|
$ |
(0.29) |
|
$ |
0.39 |
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation |
|
|
|
|
|
|
|
|
|
(In thousands of U.S. Dollars, except for TCE rates) |
|
|
|
|
|
|
|
|
|
Second quarter2019 |
|
Second quarter2018 |
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
|
Voyage
revenues |
$ |
157,792 |
|
$ |
103,665 |
a) |
$ |
324,282 |
|
$ |
201,620 |
b) |
Less: |
|
|
|
|
|
|
|
|
Voyage expenses |
(46,423) |
|
(13,674) |
c) |
(91,329) |
|
(30,032) |
d) |
Charter-in hire expense |
(21,825) |
|
- |
e) |
(44,442) |
|
- |
f) |
Realized gain/(loss) on FFAs/bunker swaps |
3,114 |
|
1,546 |
|
8,370 |
|
1,651 |
|
Time Charter equivalent revenues |
$ |
92,658 |
|
$ |
91,537 |
|
$ |
196,881 |
|
$ |
173,239 |
|
Amortization of fair value of below/above market acquired time
charter agreements |
(545) |
|
- |
|
(1,186) |
|
- |
|
Adjusted Time Charter equivalent revenues |
$ |
92,113 |
|
$ |
91,537 |
|
$ |
195,695 |
|
$ |
173,239 |
|
|
|
|
|
|
|
|
|
|
Available days |
8,732 |
|
6,633 |
|
17,987 |
|
13,116 |
|
Daily Time Charter Equivalent Rate
("TCE") |
$ |
10,549 |
|
$ |
13,800 |
|
$ |
10,880 |
|
$ |
13,208 |
|
|
a) |
Voyage
revenues used to calculate TCE rate for the second quarter of 2018
consist of (1) reported voyage revenues of $132.6 million minus (2)
voyage revenues of $28.9 million attributable to Star
Logistics. |
b) |
Voyage revenues used to calculate TCE rate for the first half
of 2018 consist of (1) reported voyage revenues of $253.7 million
minus (2) voyage revenues of $52.0 million attributable to Star
Logistics. |
c) |
Voyage expenses used to calculate TCE rate for the second
quarter of 2018 consist of (1) reported voyage expenses of $19.9
million minus (2) voyage expenses of $6.2 million attributable to
Star Logistics. |
d) |
Voyage expenses used to calculate TCE rate for the first half
of 2018 consist of (1) reported voyage expenses of $42.6 million
minus (2) voyage expenses of $12.6 million attributable to Star
Logistics. |
e) |
Charter-in hire expenses used to calculate TCE rate for the
second quarter of 2018 consist of (1) reported charter-in hire
expenses of $24.3 million minus (2) charter-in hire expenses of
$24.3 million attributable to Star Logistics. |
f) |
Charter-in hire expenses used to calculate TCE rate for the
first half of 2018 consist of (1) reported charter-in hire expenses
of $40.8 million minus (2) charter-in hire expenses of $40.8
million attributable to Star Logistics. |
|
|
Average daily Net Cash G&A expenses per vessel
Reconciliation |
|
|
|
|
|
|
|
|
(In thousands of U.S. Dollars, except for daily
rates) |
|
|
|
|
|
|
|
|
|
Second quarter 2019 |
|
Second quarter 2018 |
|
Six months ended June 30, 2019 |
|
Six months ended June 30, 2018 |
General and
administrative expenses |
$ |
9,829 |
|
$ |
10,383 |
|
$ |
17,062 |
|
$ |
17,702 |
Plus: |
|
|
|
|
|
|
|
Management fees |
4,099 |
|
1,983 |
|
8,188 |
|
3,913 |
Less: |
|
|
|
|
|
|
|
Stock – based compensation |
(2,606) |
|
(3,949) |
|
(2,857) |
|
(5,011) |
One-time expenses |
- |
|
- |
|
- |
|
(29) |
Net Cash G&As expenses (excluding one-time
expenses) |
$ |
11,322 |
|
$ |
8,417 |
|
$ |
22,393 |
|
$ |
16,575 |
|
|
|
|
|
|
|
|
Ownership days |
9,754 |
|
6,691 |
|
19,412 |
|
13,174 |
Charter-in days |
1,468 |
|
1,157 |
|
3,208 |
|
2,085 |
Average daily Net Cash G&A expenses per vessel
(excluding one-time expenses) |
$ |
1,009 |
|
$ |
1,072 |
|
$ |
990 |
|
$ |
1,086 |
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, August 8, 2019 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) 238-0069 (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 15, 2019. 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, Oslo, New York, Limassol and Geneva. Its common stock
trades on the Nasdaq Global Select Market and on the Oslo Stock
Exchange under the symbol “SBLK”. On a fully delivered basis, Star
Bulk will have a fleet of 118 vessels, with an aggregate capacity
of 13.0 million dwt, consisting of 17 Newcastlemax, 19 Capesize, 2
Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax
and 19 Supramax vessels with carrying capacities between 52,055 dwt
and 209,537 dwt. Where we refer to information on a “fully
delivered basis”, we are referring to such information after
giving effect to the delivery of the remaining three Delphin
Vessels and the sale of 2 vessels discussed elsewhere herein.
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; 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 BornozisMarkella KaraCapital Link,
Inc.230 Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661‐7566E‐mail: starbulk@capitallink.comwww.capitallink.com
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