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 fourth quarter and the year
ended December 31, 2019.
Financial Highlights
(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
|
|
|
|
|
Fourth
quarter 2019 |
Fourth
quarter 2018 |
Twelve
months ended December 31, 2019 |
Twelve
months ended December 31, 2018 |
|
Voyage Revenues |
$248,639 |
$209,433 |
$821,365 |
|
$651,561 |
|
Net income/(loss) |
$23,499 |
$11,715 |
($16,201 |
) |
$58,397 |
|
Net cash provided by operating activities |
$53,238 |
$59,836 |
$88,525 |
|
$169,009 |
|
EBITDA (1) |
$77,996 |
$63,575 |
$196,019 |
|
$233,015 |
|
Adjusted EBITDA (1) |
$88,488 |
$82,379 |
$237,234 |
|
$260,887 |
|
Adjusted Net income / (loss) (2) |
$34,500 |
$30,316 |
$24,229 |
|
$86,098 |
|
Earnings / (loss) per share basic |
$0.25 |
$0.13 |
($0.17 |
) |
$0.76 |
|
Adjusted earnings / (loss) per share basic (2) |
$0.36 |
$0.33 |
$0.26 |
|
$1.12 |
|
Average Number of Vessels |
|
117.6 |
|
106.4 |
112.1 |
|
|
87.7 |
|
TCE Revenues (3) |
$148,037 |
$136,795 |
$476,247 |
|
$437,961 |
|
Daily Time Charter Equivalent Rate ("TCE") (3) |
$15,535 |
$14,036 |
$13,027 |
|
$13,796 |
|
Average daily OPEX per vessel (4) |
$3,899 |
$3,938 |
$3,912 |
|
$4,027 |
|
Average daily OPEX per vessel (excl. pre-delivery expenses)
(4) |
$3,899 |
$3,938 |
$3,882 |
|
$3,994 |
|
Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (5) |
$925 |
$969 |
$929 |
|
$1,004 |
|
- 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 the respective measures. To derive Adjusted
EBITDA from EBITDA, we exclude non-cash gain / (loss). In addition,
we installed scrubbers on the majority of our vessels in 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 these vessels concurrently with the installation of
scrubbers in 2019. As a result, in 2019, we incurred fees and
expenses associated with the dry docking of these vessels, which
would have otherwise been incurred in 2020. For continuity and
comparison purposes in the Adjusted EBITDA calculation we include
only the dry docking expenses for the vessels which were due to
undergo their periodic dry dock during 2019.
- 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 to undergo their periodic
dry dock during 2019.
- 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.
- Average daily OPEX per vessel is calculated by dividing vessel
operating expenses by Ownership days.
- 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 reported a strong
performance for the fourth quarter 2019, with TCE Revenues of
$148.0 million, Adjusted EBITDA of $88.5 million and Net Income of
$23.5 million. The average TCE for the quarter increased to
$15,535/ day per vessel despite our fleet being affected by our
scrubber installation program. Daily Opex and Net Cash G&A
expenses per vessel were reduced to $3,899/day and $925/day
respectively. On a yearly basis, we realized Adjusted EBITDA of
$237.2 million and Adjusted Net Income of $24.2 million. On the
basis of our existing dividend policy, we will be paying out a cash
dividend for the quarter of $0.05 per share.
Since the beginning of the year, we are seeing
commercial and operational benefits on our scrubber investment,
having 90 vessels with scrubbers certified today. Currently, we
have fixed a minimum of 72.3% of our Q1 2020 days at average TCE
rates of $12,580 per day. We expect to complete the scrubber
certification program of our fleet by the end of March in view of
delays experienced in Chinese yards on a number of our vessels as a
consequence of the corona virus outbreak.”
Recent Developments
Declaration of Dividend
- As of December 31, 2019, we owned 116 vessels and had total
cash of $126.3 million. This cash balance includes $5.6 million
from proceeds received from the sale of vessels Star Cosmo and Star
Epsilon. According to our dividend policy, having reserved
these sales proceeds for share repurchases, debt prepayment
and vessel acquisitions, and based on the minimum cash balance that
needs to be maintained per vessel for December 31, 2019 of $1.0
million, our Board of Directors (the “Board”) declared a quarterly
cash dividend of $0.05 per share on February 19, 2020, payable on
or about March 12, 2020, to all shareholders of record as of
March 2, 2020 (“Record Date”). The ex-dividend date is expected to
be February 28, 2020.
Scrubber Update
- The Company continues to execute its plan to install scrubbers
on 114 out of 116 vessels in its fleet, having a total of 90
scrubbers certified and in operation as of February 19, 2020.
Financing Activities
- In January 2020, we entered into a committed term sheet with
Danish Ship Finance A/S for a loan of up to $55.0 million (the “DSF
$55.0 million Facility”). The facility will be available in two
tranches of up to $27.5 million each, and will be used to refinance
the outstanding amounts under the lease agreements of the Star
Eleni and the Star Leo. The two tranches are expected to be drawn
in March 2020 and will mature 5 years after the drawdown. The
Danish $55.0 million Facility will be secured by first priority
mortgages on the two vessels.
- In February 2020, we entered into a definitive loan agreement
with HSBC France for an amount of up to $30.0 million in order to
finance working capital requirements (the “HSBC Working Capital
Facility”). As of the date of this press release, no amount has
been drawn.
Scrubber Financing Activities
- We incurred the following indebtedness to finance our scrubber
installation program:
- In November 2019, we drew down (i) $10.9 million under the DNB
$310.0 million Facility, (ii) $1.4 million under the ING Facility
and (iii) $4.6 million under the lease agreements with CMBL.
- In December 2019, we drew down $18.3 million under the Atradius
Facility and $6.1 million under the DNB $310.0 million
Facility.
- Subsequent to December 31, 2019 and as of February 19,
2020, we drew down (i) the last available tranche of $3.3 million
under the Atradius Facility and (ii) $8.2 million under the DNB
$310.0 million Facility.
- On February 20, 2020, we expect to drawdown a further $1.3
million under the lease agreements with CMBL.
- Following these drawdowns, we will have incurred $116.3 million
of indebtedness related to scrubber procurement installations and
have an additional $33.5 million of available scrubber-related
financing under all of our debt and lease agreements.
Hedging VLSFO – HSFO spreadIn
December 2019, we hedged approximately 10% of our estimated annual
fuel consumption by selling the 2020 Singapore spread between Very
Low-Sulfur Fuel Oil (VLSFO) – High-Sulfur Fuel Oil (HSFO) at $266
per ton.
Commercial UpdateWe have
transferred our Geneva-based commercial activities to a newly
established wholly owned subsidiary based in Singapore under the
name of Star Bulk (Singapore) Pte. Ltd.
Employment UpdateDaily 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 fourth quarter of 2019 our TCE rate was: Capesize /
Newcastlemax Vessels: $25,651 per day.Post Panamax / Kamsarmax /
Panamax Vessels: $11,260 per day.Ultramax / Supramax Vessels:
$9,815 per day.
For the year ended December 31, 2019 our TCE rate was: Capesize
/ Newcastlemax Vessels: $18,006 per day.Post Panamax / Kamsarmax /
Panamax Vessels: $11,180 per day.Ultramax / Supramax Vessels:
$10,179 per day.
The below forward-looking estimated daily TCE
rates for Q1 2020 are calculated using the discharge-to-discharge
method of accounting while U.S. GAAP requires us to recognize
revenues in our books using the load-to-discharge method of
accounting. Both methods recognize the same total TCE revenues over
the completion of a voyage. The discharge-to-discharge method,
however, recognizes revenues over more days, affecting the daily
TCE rates. Under the load-to-discharge method of accounting,
increased ballast days at the end of the quarter will reduce the
revenues that can be booked following the accounting cut-off at the
end of the quarter, affecting the daily TCE rates for the
respective period.
As of today, we have fixed employment for approximately 72.3% of
the days in Q1 2020 at average TCE rates of $12,580 per day.
More specifically:
Capesize / Newcastlemax Vessels: approximately 65.4 % of Q1 2020
days at $19,721 per day.
Post Panamax / Kamsarmax / Panamax Vessels: approximately 78.2 %
of Q1 2020 days at $10,266 per day.
Ultramax / Supramax Vessels: approximately 72.5 % of Q1
2020 days at $8,250 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.
Fourth Quarter 2019 and 2018
Results
Voyage revenues for the fourth quarter of 2019
increased to $248.6 million from $209.4 million in the fourth
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
$147.5 million for the fourth quarter of 2019, compared to $135.2
million for the fourth quarter of 2018. While the average number of
vessels in the fourth quarter of 2019 increased to 117.6 from 106.4
in the fourth quarter of 2018, the Available days for the fourth
quarter of 2019 did not increase proportionally due to the
installation of scrubbers and increased dry docking activity during
the fourth quarter of 2019. The TCE rate for the fourth quarter of
2019 increased to $15,535 from $14,036 in the fourth quarter of
2018.
For the fourth quarter of 2019, operating income
was $46.2 million, which includes depreciation of $32.3 million,
compared to operating income of $33.9 million for the fourth
quarter of 2018, which included depreciation of $30.8 million and
impairment loss of $17.8 million. Operating income for the fourth
quarter 2019 was affected by our management’s decision to bring
forward to 2019, 8 of the 2020 dry docking services concurrently
with the installation of scrubbers in order to avoid any additional
off-hire days in 2020 due to dry docking.
For the fourth quarter of 2019, we had net
income of $23.5 million, or earnings per share of $0.25, basic and
$0.24 diluted, based on 95,797,142 weighted average basic shares
and 95,923,034 weighted average diluted shares, respectively. Net
income for the fourth quarter of 2018 was $11.7 million, or
earnings per share of $0.13, basic and diluted, based on 92,457,989
weighted average basic shares and 92,515,671 weighted average
diluted shares, respectively.
Net income for the fourth quarter of 2019,
included the following significant non-cash items, other than the
depreciation expense mentioned above:
- Stock-based compensation expense of $1.6 million, or $0.02 per
share, basic and diluted, recognized in connection with common
shares granted to our directors and employees;
- Net amortization of the fair value of below- and above-market
acquired time charters of $0.5 million, or $0.005 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;
- Loss on sale of vessels of $4.7 million or $0.05 per share,
basic and diluted in connection with the sale of Star Epsilon and
Star Cosmo, that took place during the period; and
- Loss on debt extinguishment of $1.0 million or $0.01 per share,
basic and diluted, recognized in connection with the refinancing of
certain of our debt facilities.
In addition, as mentioned above, we installed
scrubbers on certain of our vessels in the fourth quarter of 2019.
Some of these vessels were due to undergo their scheduled dry
docking surveys in 2020. In order to avoid any additional off-hire
days for these vessels in 2020 due to dry docking, we decided to
complete the dry docking survey for these vessels concurrently with
the installation of scrubbers in the fourth quarter of 2019. During
the fourth quarter of 2019, we incurred dry docking expenses of
$12.1 million, $4.1 million of which related to accelerated dry
dockings due in 2020. During the fourth quarter of 2019, 15 of our
vessels completed their periodic dry docking surveys. Dry docking
expenses for the fourth quarter of 2018 were $3.1 million
corresponding to five of our vessels that underwent their periodic
dry docking surveys.
Net income for the fourth quarter of 2018
included the following significant non-cash items, other than the
depreciation expense mentioned above:
- Impairment loss of $17.8 million, or $0.19 per share, basic and
diluted, recognized (a) in anticipation of the sale of the Star
Delta and its delivery to its new owners in early January 2019,
which, as of December 31, 2018, was classified as held for sale and
(b) in connection with negotiated sales of two additional vessels
built before 2005;
- A loss on bad debt of $0.7 million or $0.01 per basic and
diluted share associated with the write-off of disputed charterer
balances; and
- Amortization of the fair value of below-market acquired time
charters of $1.1 million, or $0.01 per share, basic and diluted,
associated with time charters attached to two vessels acquired
during the third quarter of 2018. These below-market time charters
are amortized over the duration of each respective time charter
agreement as an increase to voyage revenues.
Adjusted net income for the fourth quarter of
2019, which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $34.5
million, or $0.36 earnings per share, basic and diluted, compared
to adjusted net income of $30.3 million, or $0.33 earnings per
share, basic and diluted, for the fourth quarter of 2018.
Adjusted EBITDA for the fourth quarter of 2019,
which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $88.5
million, compared to $82.4 million for the fourth quarter of
2018.
For the fourth quarters of 2019 and 2018, vessel
operating expenses were $42.2 million and $38.5 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 117.6 from 106.4, while our
average daily operating expenses per vessel for the fourth quarter
of 2019 were reduced to $3,899 from $3,938 for the fourth quarter
of 2018.
General and administrative expenses for the
fourth quarters of 2019 and 2018 were $8.1 million and $7.2
million, respectively. Management fees for the fourth quarters of
2019 and 2018 were $4.7 million and $4.0 million, respectively. The
increase is attributable to the new management agreements entered
into in connection with the acquired fleet during the third quarter
of 2019. Our average daily net cash general and administrative
expenses per vessel (including management fees) for the fourth
quarter of 2019 were reduced to $925 from $969 during the fourth
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 fourth quarters
of 2019 and 2018 was $33.8 million and $25.0 million, respectively.
In both quarters, the charter-in days were mainly attributable to
the activities of our Geneva-based subsidiary Star Logistics.
For the fourth quarter of 2019, we incurred a
net loss on forward freight agreements and bunker swaps of $2.4
million, consisting of realized loss of $2.7 million and unrealized
gain of $0.3 million. In comparison, for the fourth quarter of
2018, we incurred a loss on forward freight agreements and bunker
swaps of $1.4 million, consisting of realized loss of $1.0 million
and unrealized loss of $0.4 million.
Interest and finance costs net of interest and
other income/ (loss) for the fourth quarters of 2019 and 2018 were
$21.1 million and $21.2 million, respectively. Despite the increase
in the weighted average balance of our outstanding indebtedness
during the fourth quarters of 2019 and 2018 to $1,598.9 million
from $1,447.6 million, respectively, the interest and finance costs
net of interest and other income/ (loss) remained almost unchanged
due to the decrease in our average interest rate, mainly driven by
the refinancing of certain of our debt agreements made in 2019 and
the decrease in LIBOR rates for the corresponding periods.
Year ended December 31, 2019 and 2018
Results
Voyage revenues for the year ended December 31,
2019 increased to $821.4 million from $651.6 million for the year
ended December 31, 2018. Adjusted TCE Revenues were $474.2 million
for the year ended December 31, 2019, compared to $436.1 million
for the year ended December 31, 2018. Adjusted TCE Revenues were
positively impacted by an increase in the average number of vessels
in our fleet to 112.1 in the year ended December 31, 2019, up from
87.7 in the year ended December 31, 2018. The Available days
however, for the respective periods did not increase
proportionally, due to the installation of scrubbers and increased
dry docking activity during the year ended December 31, 2019. The
TCE rate for the year ended December 31, 2019 was $13,027 compared
to $13,796 for the year ended December 31, 2018, reflecting the
slightly weaker dry bulk market environment in 2019 compared to the
same period in 2018.
For the year ended December 31, 2019, operating
income was $73.7 million, which includes depreciation of $124.3
million, impairment loss of $3.4 million and loss on sale of
vessels $5.5 million. For the year ended December 31, 2018,
operating income was $131.9 million, which included depreciation of
$102.9 million and impairment loss of $17.8 million. Operating
income for both periods was significantly affected by our
management’s decision to bring forward to 2019 all the 2020 dry
docking services concurrently with the installation of scrubbers in
order to avoid any additional off-hire days in 2020 due to dry
docking. In addition to the dry docking off-hire days affecting
revenues earned, dry docking cost for the year ended December 31,
2019 was $57.4 million compared to $9.0 million in the same period
of 2018.
For the year ended December 31, 2019, we had a
net loss of $16.2 million, or $0.17 loss per share, basic and
diluted, based on 93,735,549 weighted average basic and diluted
shares. Net income for the year ended December 31, 2018 was $58.4
million, or $0.76 earnings per share, basic and diluted, based on
77,061,227 weighted average basic shares and 77,326,111 weighted
average diluted shares, respectively.
Net loss for the year ended December 31, 2019
included the following significant non-cash items, other than
depreciation expense mentioned above:
- Stock-based compensation expense of $7.9 million, or $0.08 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 sale of vessels of $5.5 million, or $0.06 per basic and
diluted share in connection with the vessel sales that took place
during the period;
- Loss on bad debt of $1.6 million or $0.02 per basic and diluted
share associated with the write‐off of disputed charterer
balances;
- Net amortization of the fair value of below- and above-market
acquired time charters of $2.0 million, or $0.02 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; and
- Loss on debt extinguishment of $1.2 million or $0.01 per share,
basic and diluted, recognized in connection with the refinancing of
certain of our debt facilities.
As mentioned above, during the year ended
December 31, 2019, we incurred dry docking expenses of $57.4
million, $22.6 million of which relates to accelerated dry dockings
due in 2020. During the year ended December 31, 2019, 47 of our
vessels completed their periodic dry docking surveys. Dry docking
expenses for the year ended December 31, 2018, were $9.0 million
corresponding to eight of our vessels that underwent their periodic
dry docking surveys.
Net income for the year ended December 31, 2018,
included the following significant non-cash items, other than
depreciation expense:
- Impairment loss of $17.8 million, or $0.23 per share, basic and
diluted, recognized (a) in anticipation of the sale of the Star
Delta and its delivery to its new owners in early January 2019,
which as of December 31, 2018, was classified as held for sale and
(b) in connection with negotiated sales of two additional vessels
built before 2005;
- Stock-based compensation expense of $8.1 million, or $0.10 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 $1.3 million, or $0.02 per share, basic and diluted;
- Loss on debt extinguishment of $2.4 million, or $0.03 per
share, basic and diluted, recognized in connection with the
refinancing of certain of our debt facilities;
- A loss on bad debt of $0.7 million or $0.01 per basic and
diluted share associated with the write-off of disputed charterer
balances;
- Unrealized gain on derivative financial instruments of $0.7
million or $0.01 per share, basic and diluted; and
- Amortization of the fair value of below-market acquired time
charters of $1.8 million, or $0.02 per share, basic and diluted,
associated with time charters attached to two acquired vessels.
These below-market time charters are amortized over the duration of
each respective charter as an increase to voyage revenues.
Adjusted net income for the year ended December
31, 2019, which excludes certain non-cash items and the accelerated
dry docking expenses that were due in 2020 discussed above, was
$24.2 million, or $0.26 earnings per share, basic and diluted,
compared to adjusted net income of $86.1 million, or $1.12 earnings
per share, basic, and $1.11 earnings per share, diluted for the
year ended December 31, 2018.
Adjusted EBITDA for the year ended December 31,
2019, which excludes certain non-cash items and the accelerated dry
docking expenses that were due in 2020 discussed above, was $237.2
million, compared to $260.9 million for the year ended December 31,
2018.
For the years ended December 31, 2019 and 2018,
vessel operating expenses were $160.1 million and $128.9 million,
respectively. This increase was primarily due to the increase in
the average number of vessels to 112.1 from 87.7. Vessel operating
expenses for the year ended December 31, 2019, included
pre-delivery and pre-joining expenses of $1.2 million compared to
$1.1 million in the same period in 2018. Excluding these expenses,
our average daily operating expenses per vessel for the years ended
December 31, 2019 and 2018, were $3,882 and $3,994,
respectively.
General and administrative expenses for the
years ended December 31, 2019 and 2018 were $34.8 million and $34.0
million, respectively. Management fees for the years ended December
31, 2019 and 2018 were $17.5 million and $11.3 million,
respectively. The increase is attributable to the new management
agreements entered into in connection with the fleets we acquired
in the third quarters of 2018 and 2019. Our average daily net
cash general and administrative expenses per vessel (including
management fees) for the year ended December 31, 2019 were reduced
to $929 from $1,004 during the year ended December 31, 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 years ended
December 31, 2019 and 2018 was $126.8 million and $92.9 million,
respectively. The increase is due to the increase of charter-in
days to 6,843 in the year ended December 31, 2019 compared to 5,089
in the same period in 2018. In both periods, the charter-in days
are mainly attributable to the activities of our subsidiary Star
Logistics.
For the year ended December 31, 2019 we incurred
a net gain on forward freight agreements and bunker swaps of $4.4
million, consisting of realized gain of $4.7 million and unrealized
loss of $0.3 million. For the year ended December 31, 2018 we
incurred a net loss on forward freight agreements and bunker swaps
of $0.4 million, consisting of unrealized loss of $1.3 million and
realized gain of $0.9 million.
Interest and finance costs net of interest and
other income/ (loss) for the years ended December 31, 2019 and 2018
were $86.3 million and $71.8 million, respectively. The increase is
primarily attributable to the increase in the weighted average
balance of our outstanding indebtedness to $1,527.5 million during
the year ended December 31, 2019, compared to $1,234.6 million for
the same period in 2018.
Liquidity and Capital ResourcesCash
FlowsNet cash provided by operating activities for
the years ended December 31, 2019 and 2018 was $88.5 million and
$169.0 million, respectively.
Despite the increase in the average number of
vessels in our fleet, the decrease in TCE rates to $13,027 for the
year ended December 31, 2019 from $13,796 for the year ended
December 31, 2018 and the increased dry docking activity resulting
in $57.4 million expenses (including $22.6 million of expenses
related to accelerated dry dockings concurrently with certain of
our scrubber installations), caused a decrease of Adjusted EBITDA
to $237.2 million for the year ended December 31, 2019 from $260.9
million for the corresponding period in 2018. This decrease in
Adjusted EBITDA was combined with (i) a net working capital outflow
of $47.5 million during the year ended December 31, 2019 compared
to a net working capital outflow of $18.9 million for the year
ended December 31, 2018 and (ii) higher net interest expense due to
an increase in our outstanding indebtedness caused by the increase
in the average number of vessels in our fleet as well as due to
incurrence of additional debt for scrubbers’ financing for the year
ended December 31, 2019 compared to the corresponding period in
2018.
Net cash used in investing activities
for the years ended December 31, 2019 and 2018 was $279.8 million
and $325.3 million, respectively.
For the year ended December 31, 2019, net cash
used in investing activities mainly consisted of:
- $108.0 million paid in connection with the acquisition of
secondhand vessels and $95.8 million paid in connection with three
newbuilding vessels delivered during the year ended December 31,
2019;
- $143.4 million paid for the acquisition and installation of
scrubber equipment and ballast water management systems for certain
of our vessels;
offset by:
- $56.6 million of proceeds from the sale of seven vessels
concluded during the period; and
- $10.7 million of insurance proceeds.
For the year ended December 31, 2018, net cash
used in investing activities mainly consisted of $328.6 million
paid for advances and other capitalized expenses for our
newbuilding and newly acquired vessels delivered during the period
as well as for the acquisition and installation of scrubber
equipment for certain of our vessels, offset partially by hull and
machinery insurance proceeds of $3.3 million.
Net cash provided by financing
activities for the years ended December 31, 2019 and 2018 was
$103.7 million and $96.7 million, respectively.
For the year ended December 31, 2019, net cash
provided by financing activities mainly consisted of:
- $768.3 million of proceeds from financing transactions
including financing from leases;
offset by:
- $623.9 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 debt facilities and the
sale of vessels;
- $20.5 million used mainly to repurchase our common shares under
our previously announced share repurchase program;
- $13.1 million of financing fees paid in connection with the new
financing agreements;
- $2.3 million of prepayment fees paid in connection with early
repaid debt due to its refinancing; and
- $4.8 million of dividends paid in December 2019 for the third
quarter of 2019.
For the year ended December 31, 2018, net cash
provided by financing activities mainly consisted of:
- $988.0 million of proceeds from financing transactions
including financing from leases;
offset partially by:
- $875.0 lease and debt obligations paid in aggregate in
connection with: (i) the regular amortization of outstanding vessel
financings and finance lease installments, (ii) early repayment due
to the refinancing of certain of our facilities; (iii) payments
under our cash sweep mechanism and (iv) full repayment of deferred
debt amounts;
- $3.1 million used to repurchase our common shares in open
market transactions; and
- $13.8 million of financing fees paid in connection with the new
financing agreements.
Summary of Selected Data
|
Fourth quarter 2019 |
|
Fourth quarter 2018 |
|
Average number of vessels (1) |
|
117.6 |
|
|
106.4 |
|
Number of vessels (2) |
|
116 |
|
|
107 |
|
Average age of operational fleet (in years) (3) |
|
8.3 |
|
|
8.0 |
|
Ownership days (4) |
|
10,819 |
|
|
9,788 |
|
Available days (5) |
|
9,497 |
|
|
9,633 |
|
Charter-in days (6) |
|
1,262 |
|
|
1,493 |
|
Daily Time Charter Equivalent Rate (7) |
$15,535 |
|
$14,036 |
|
Average daily OPEX per vessel (8) |
$3,899 |
|
$3,938 |
|
Average daily OPEX per vessel (excl. pre-delivery expenses) |
$3,899 |
|
$3,938 |
|
Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (9) |
$925 |
|
$969 |
|
|
|
|
|
|
|
Twelve months ended December 31, 2019 |
|
Twelve months ended December 31, 2018 |
|
Average number of vessels (1) |
|
112.1 |
|
|
87.7 |
|
Number of vessels (2) |
|
116 |
|
|
107 |
|
Average age of operational fleet (in years) (3) |
|
8.3 |
|
|
8.0 |
|
Ownership days (4) |
|
40,915 |
|
|
32,001 |
|
Available days (5) |
|
36,403 |
|
|
31,614 |
|
Charter-in days (6) |
|
6,843 |
|
|
5,089 |
|
Daily Time Charter Equivalent Rate (7) |
$13,027 |
|
$13,796 |
|
Average daily OPEX per vessel (8) |
$3,912 |
|
$4,027 |
|
Average daily OPEX per vessel (excl. pre-delivery expenses) |
$3,882 |
|
$3,994 |
|
Average daily Net Cash G&A expenses per vessel (excluding
one-time expenses) (9) |
$929 |
|
$1,004 |
|
|
|
|
|
|
(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) 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 the 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. 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. (8) Average daily OPEX per vessel is
calculated by dividing vessel operating expenses by Ownership
days.(9) 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) |
|
Fourth quarter2019 |
|
|
Fourth quarter2018 |
|
|
Twelve months endedDecember 31, 2019 |
|
|
Twelve months endedDecember 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Voyage revenues |
|
$ |
248,639 |
|
|
$ |
209,433 |
|
|
$ |
821,365 |
|
|
$ |
651,561 |
|
|
Total revenues |
|
|
248,639 |
|
|
|
209,433 |
|
|
|
821,365 |
|
|
|
651,561 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
|
(64,058 |
) |
|
|
(46,628 |
) |
|
|
(222,962 |
) |
|
|
(121,596 |
) |
|
Charter-in
hire expense |
|
|
(33,826 |
) |
|
|
(25,005 |
) |
|
|
(126,813 |
) |
|
|
(92,896 |
) |
|
Vessel
operating expenses |
|
|
(42,188 |
) |
|
|
(38,544 |
) |
|
|
(160,062 |
) |
|
|
(128,872 |
) |
|
Dry docking
expenses |
|
|
(7,922 |
) |
|
|
(3,125 |
) |
|
|
(34,875 |
) |
|
|
(8,970 |
) |
|
Accelerated
dry docking expenses due in 2020 |
|
|
(4,138 |
) |
|
|
- |
|
|
|
(22,569 |
) |
|
|
- |
|
|
Depreciation |
|
|
(32,293 |
) |
|
|
(30,814 |
) |
|
|
(124,280 |
) |
|
|
(102,852 |
) |
|
Management
fees |
|
|
(4,699 |
) |
|
|
(4,042 |
) |
|
|
(17,500 |
) |
|
|
(11,321 |
) |
|
Loss on bad
debt |
|
|
(357 |
) |
|
|
(722 |
) |
|
|
(1,607 |
) |
|
|
(722 |
) |
|
General and
administrative expenses |
|
|
(8,051 |
) |
|
|
(7,223 |
) |
|
|
(34,819 |
) |
|
|
(33,972 |
) |
|
Gain/(Loss)
on forward freight agreements and bunker swaps |
|
|
(2,385 |
) |
|
|
(1,389 |
) |
|
|
4,411 |
|
|
|
(447 |
) |
|
Impairment
loss |
|
|
- |
|
|
|
(17,784 |
) |
|
|
(3,411 |
) |
|
|
(17,784 |
) |
|
Other
operational loss |
|
|
- |
|
|
|
(230 |
) |
|
|
(110 |
) |
|
|
(191 |
) |
|
Other
operational gain |
|
|
2,237 |
|
|
|
- |
|
|
|
2,423 |
|
|
|
- |
|
|
Gain/(Loss)
on sale of vessels |
|
|
(4,723 |
) |
|
|
- |
|
|
|
(5,493 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
46,236 |
|
|
|
33,927 |
|
|
|
73,698 |
|
|
|
131,938 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
finance costs |
|
|
(21,380 |
) |
|
|
(22,024 |
) |
|
|
(87,617 |
) |
|
|
(73,715 |
) |
|
Interest and
other income/(loss) |
|
|
293 |
|
|
|
836 |
|
|
|
1,299 |
|
|
|
1,866 |
|
|
Gain/(Loss)
on derivative financial instruments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
707 |
|
|
Loss on debt
extinguishment |
|
|
(1,577 |
) |
|
|
(913 |
) |
|
|
(3,526 |
) |
|
|
(2,383 |
) |
|
Total other expenses, net |
|
|
(22,664 |
) |
|
|
(22,101 |
) |
|
|
(89,844 |
) |
|
|
(73,525 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before equity in investee |
|
|
23,572 |
|
|
|
11,826 |
|
|
|
(16,146 |
) |
|
|
58,413 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
income/(loss) of investee |
|
|
(34 |
) |
|
|
(50 |
) |
|
|
54 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before taxes |
|
$ |
23,538 |
|
|
$ |
11,776 |
|
|
$ |
(16,092 |
) |
|
$ |
58,458 |
|
|
|
|
|
|
|
|
|
|
|
|
US Source
Income taxes |
|
|
(39 |
) |
|
|
(61 |
) |
|
|
(109 |
) |
|
|
(61 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
23,499 |
|
|
$ |
11,715 |
|
|
$ |
(16,201 |
) |
|
$ |
58,397 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share, basic |
|
$ |
0.25 |
|
|
$ |
0.13 |
|
|
$ |
(0.17 |
) |
|
$ |
0.76 |
|
|
Earnings/(loss) per share, diluted |
|
$ |
0.24 |
|
|
$ |
0.13 |
|
|
$ |
(0.17 |
) |
|
$ |
0.76 |
|
|
Weighted
average number of shares outstanding, basic |
|
|
95,797,142 |
|
|
|
92,457,989 |
|
|
|
93,735,549 |
|
|
|
77,061,227 |
|
|
Weighted
average number of shares outstanding, diluted |
|
|
95,923,034 |
|
|
|
92,515,671 |
|
|
|
93,735,549 |
|
|
|
77,326,111 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance
Sheets
|
(Expressed in thousands of U.S. dollars) |
|
ASSETS |
|
December 31, 2019 |
|
December 31, 2018 |
Cash and cash equivalents |
|
$ |
117,819 |
|
$ |
204,921 |
Vessel held
for sale |
|
|
- |
|
|
5,949 |
Other
current assets |
|
|
148,223 |
|
|
87,966 |
TOTAL CURRENT ASSETS |
|
|
266,042 |
|
|
298,836 |
|
|
|
|
|
Advances for
vessels under construction and acquisition of vessels |
|
|
- |
|
|
59,900 |
Vessels and
other fixed assets, net |
|
|
2,965,527 |
|
|
2,656,108 |
Other
non-current assets |
|
|
6,666 |
|
|
7,293 |
TOTAL ASSETS |
|
$ |
3,238,235 |
|
$ |
3,022,137 |
|
|
|
|
|
Current
portion of long-term debt and finance lease commitments |
|
$ |
202,495 |
|
$ |
166,844 |
Other
current liabilities |
|
|
108,436 |
|
|
55,873 |
TOTAL CURRENT LIABILITIES |
|
|
310,931 |
|
|
222,717 |
|
|
|
|
|
Long-term
debt and finance lease commitments non-current(net of unamortized
deferred finance fees of $19,034 and $13,972, respectively) |
|
|
1,330,420 |
|
|
1,226,744 |
Senior Notes
(net of unamortized deferred finance fees of $1,179 and $1,590,
respectively) |
|
|
48,821 |
|
|
48,410 |
Other
non-current liabilities |
|
|
4,023 |
|
|
4,221 |
TOTAL LIABILITIES |
|
$ |
1,694,195 |
|
$ |
1,502,092 |
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
1,544,040 |
|
|
1,520,045 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
3,238,235 |
|
$ |
3,022,137 |
|
|
|
|
|
Unaudited Cash Flow Data
(Expressed in
thousands of U.S. dollars) |
|
Twelve months ended December 31, 2019 |
|
Twelve months ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating activities |
|
$ |
88,525 |
|
|
$ |
169,009 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) investing activities |
|
|
(279,837 |
) |
|
|
(325,327 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) financing activities |
|
|
103,697 |
|
|
|
96,695 |
|
|
|
|
|
|
|
|
|
|
|
|
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 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 avoid any additional off-hire
days in 2020 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.
EBITDA and Adjusted EBITDA do not represent and
should not be considered as 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 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) |
|
Fourth quarter2019 |
|
|
Fourth quarter2018 |
|
|
Twelve months ended December 31, 2019 |
|
|
Twelve months ended December 31, 2018 |
|
|
Net cash provided by/(used in) operating activities |
|
$ |
53,238 |
|
|
$ |
59,836 |
|
|
$ |
88,525 |
|
|
$ |
169,009 |
|
|
Net decrease
/ (increase) in current assets |
|
|
2,903 |
|
|
|
(386 |
) |
|
|
58,923 |
|
|
|
39,277 |
|
|
Net increase
/ (decrease) in operating liabilities, excluding current
portion of long term debt |
|
|
5,924 |
|
|
|
2,780 |
|
|
|
(16,241 |
) |
|
|
(20,469 |
) |
|
Impairment
loss |
|
|
- |
|
|
|
(17,784 |
) |
|
|
(3,411 |
) |
|
|
(17,784 |
) |
|
Loss on debt
extinguishment |
|
|
(1,577 |
) |
|
|
(913 |
) |
|
|
(3,526 |
) |
|
|
(2,383 |
) |
|
Stock –
based compensation |
|
|
(1,573 |
) |
|
|
(337 |
) |
|
|
(7,943 |
) |
|
|
(8,072 |
) |
|
Amortization
of deferred finance charges |
|
|
(1,567 |
) |
|
|
(1,097 |
) |
|
|
(5,590 |
) |
|
|
(3,253 |
) |
|
Unrealized
and accrued gain/(loss) on derivative financial instruments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,230 |
|
|
Unrealized
gain / (loss) on forward freight agreements and bunker swaps |
|
|
333 |
|
|
|
(384 |
) |
|
|
(246 |
) |
|
|
(1,339 |
) |
|
Total other
expenses, net |
|
|
22,664 |
|
|
|
22,101 |
|
|
|
89,844 |
|
|
|
73,525 |
|
|
Fair value
hedge adjustment |
|
|
- |
|
|
|
286 |
|
|
|
- |
|
|
|
1,609 |
|
|
Other
non-current assets |
|
|
357 |
|
|
|
- |
|
|
|
357 |
|
|
|
1,972 |
|
|
Gain/(Loss)
on hull and machinery claims |
|
|
2,369 |
|
|
|
184 |
|
|
|
2,264 |
|
|
|
309 |
|
|
Loss on bad
debt |
|
|
(357 |
) |
|
|
(722 |
) |
|
|
(1,607 |
) |
|
|
(722 |
) |
|
Income
tax |
|
|
39 |
|
|
|
61 |
|
|
|
109 |
|
|
|
61 |
|
|
Gain/(Loss)
on sale of vessels |
|
|
(4,723 |
) |
|
|
- |
|
|
|
(5,493 |
) |
|
|
- |
|
|
Equity in
income/(loss) of investee |
|
|
(34 |
) |
|
|
(50 |
) |
|
|
54 |
|
|
|
45 |
|
|
EBITDA |
|
$ |
77,996 |
|
|
$ |
63,575 |
|
|
$ |
196,019 |
|
|
$ |
233,015 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
(income)/loss of investee |
|
|
34 |
|
|
|
50 |
|
|
|
(54 |
) |
|
|
(45 |
) |
|
Unrealized
(gain)/loss on forward freight agreements and bunker swaps |
|
|
(333 |
) |
|
|
384 |
|
|
|
246 |
|
|
|
1,339 |
|
|
(Gain)/Loss
on sale of vessels |
|
|
4,723 |
|
|
|
- |
|
|
|
5,493 |
|
|
|
- |
|
|
Accelerated
dry docking expenses due in 2020 |
|
|
4,138 |
|
|
|
- |
|
|
|
22,569 |
|
|
|
- |
|
|
Stock-based
compensation |
|
|
1,573 |
|
|
|
337 |
|
|
|
7,943 |
|
|
|
8,072 |
|
|
Loss on bad
debt |
|
|
357 |
|
|
|
722 |
|
|
|
1,607 |
|
|
|
722 |
|
|
Impairment
loss |
|
|
- |
|
|
|
17,784 |
|
|
|
3,411 |
|
|
|
17,784 |
|
|
Reversal of
provision for onerous contracts |
|
|
- |
|
|
|
(473 |
) |
|
|
- |
|
|
|
- |
|
|
Adjusted EBITDA |
|
$ |
88,488 |
|
|
$ |
82,379 |
|
|
$ |
237,234 |
|
|
$ |
260,887 |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
Fourth quarter2019 |
|
|
Fourth quarter2018 |
|
|
Twelve months ended December 31, 2019 |
|
|
Twelve months ended December 31, 2018 |
|
|
Net income / (loss) |
|
$ |
23,499 |
|
|
$ |
11,715 |
|
|
$ |
(16,201 |
) |
|
$ |
58,397 |
|
|
Amortization
of fair value of above/below market acquired time charter
agreements |
|
|
(499 |
) |
|
|
(1,116 |
) |
|
|
(2,013 |
) |
|
|
(1,820 |
) |
|
Loss on bad
debt |
|
|
357 |
|
|
|
722 |
|
|
|
1,607 |
|
|
|
722 |
|
|
Stock –
based compensation |
|
|
1,573 |
|
|
|
337 |
|
|
|
7,943 |
|
|
|
8,072 |
|
|
Unrealized
(gain) / loss on forward freight agreements and bunker swaps |
|
|
(333 |
) |
|
|
384 |
|
|
|
246 |
|
|
|
1,339 |
|
|
Accelerate
dry docking expenses due in 2020 |
|
|
4,138 |
|
|
|
- |
|
|
|
22,569 |
|
|
|
- |
|
|
Unrealized
(gain) / loss on derivative financial instruments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(734 |
) |
|
(Gain) /
loss on sale of vessels |
|
|
4,723 |
|
|
|
- |
|
|
|
5,493 |
|
|
|
- |
|
|
Impairment
loss |
|
|
- |
|
|
|
17,784 |
|
|
|
3,411 |
|
|
|
17,784 |
|
|
Reversal of
provision for onerous contracts |
|
|
- |
|
|
|
(473 |
) |
|
|
- |
|
|
|
- |
|
|
Loss on debt
extinguishment |
|
|
1,008 |
|
|
|
913 |
|
|
|
1,228 |
|
|
|
2,383 |
|
|
Equity in
income/(loss) of investee |
|
|
34 |
|
|
|
50 |
|
|
|
(54 |
) |
|
|
(45 |
) |
|
Adjusted Net income / (loss) |
|
$ |
34,500 |
|
|
$ |
30,316 |
|
|
$ |
24,229 |
|
|
$ |
86,098 |
|
|
Weighted
average number of shares outstanding, basic |
|
|
95,797,142 |
|
|
|
92,457,989 |
|
|
|
93,735,549 |
|
|
|
77,061,227 |
|
|
Weighted
average number of shares outstanding, diluted |
|
|
95,923,034 |
|
|
|
92,515,671 |
|
|
|
93,735,549 |
|
|
|
77,326,111 |
|
|
Adjusted Basic Earnings / (Loss) Per Share |
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
1.12 |
|
|
Adjusted Diluted Earnings / (Loss) Per Share |
|
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation
(In
thousands of U.S. Dollars, except for TCE rates) |
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter2019 |
|
|
Fourth quarter2018 |
|
|
Twelve months ended December 31, 2019 |
|
|
Twelve months ended December 31, 2018 |
|
|
Voyage revenues |
|
$ |
248,639 |
|
|
$ |
209,433 |
|
|
$ |
821,365 |
|
|
$ |
651,561 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
$ |
(64,058 |
) |
|
|
(46,628 |
) |
|
|
(222,962 |
) |
|
|
(121,596 |
) |
|
Charter-in
hire expense |
|
$ |
(33,826 |
) |
|
|
(25,005 |
) |
|
|
(126,813 |
) |
|
|
(92,896 |
) |
|
Realized
gain/(loss) on FFAs/bunker swaps |
|
$ |
(2,718 |
) |
|
|
(1,005 |
) |
|
|
4,657 |
|
|
|
892 |
|
|
Time
Charter equivalent revenues |
|
$ |
148,037 |
|
|
$ |
136,795 |
|
|
$ |
476,247 |
|
|
$ |
437,961 |
|
|
Reversal of
provision for onerous contracts |
|
$ |
- |
|
|
|
(473 |
) |
|
|
- |
|
|
|
- |
|
|
Amortization
of fair value of below/above market acquired time charter
agreements |
|
$ |
(499 |
) |
|
|
(1,116 |
) |
|
|
(2,013 |
) |
|
|
(1,820 |
) |
|
Adjusted Time Charter equivalent revenues |
|
$ |
147,538 |
|
|
$ |
135,206 |
|
|
$ |
474,234 |
|
|
$ |
436,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Available
days |
|
$ |
9,497 |
|
|
|
9,633 |
|
|
|
36,403 |
|
|
|
31,614 |
|
|
Daily Time Charter Equivalent Rate ("TCE") |
|
$ |
15,535 |
|
|
$ |
14,036 |
|
|
$ |
13,027 |
|
|
$ |
13,796 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily Net Cash G&A expenses per vessel
Reconciliation
(In thousands of U.S. Dollars, except for daily rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2019 |
|
|
Fourth quarter 2018 |
|
|
Twelve months endedDecember 31, 2019 |
|
|
Twelve months endedDecember 31, 2018 |
|
|
General and administrative expenses |
|
$ |
8,051 |
|
|
$ |
7,223 |
|
|
$ |
34,819 |
|
|
$ |
33,972 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
Management
fees |
|
|
4,699 |
|
|
|
4,042 |
|
|
|
17,500 |
|
|
|
11,321 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Stock –
based compensation |
|
|
(1,573 |
) |
|
|
(337 |
) |
|
|
(7,943 |
) |
|
|
(8,072 |
) |
|
One-time
expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
Cash G&As expenses (excluding one-time expenses) |
|
$ |
11,177 |
|
|
$ |
10,928 |
|
|
$ |
44,376 |
|
|
$ |
37,221 |
|
|
|
|
|
|
|
|
|
|
|
|
Ownership
days |
|
|
10,819 |
|
|
|
9,788 |
|
|
|
40,915 |
|
|
|
32,001 |
|
|
Charter-in
days |
|
|
1,262 |
|
|
|
1,493 |
|
|
|
6,843 |
|
|
|
5,089 |
|
|
Average daily Net Cash G&A expenses per vessel
(excluding one-time expenses) |
|
$ |
925 |
|
|
$ |
969 |
|
|
$ |
929 |
|
|
$ |
1,004 |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, February 20, 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 (US Toll-Free Dial In), 0(808) 238‐ 0669 (UK
Toll-Free Dial In) or +44 (0)2071 928592 (Standard International
Dial In). Please quote "Star Bulk."
A telephonic replay of the conference call will
be available until Thursday, February 26, 2020 by dialing 1(866)
331‐1332 (US Toll-Free Dial In), 0(808) 238‐0667 (UK Toll-Free Dial
In) or +44 (0) 3333009785 (Standard International Dial In). Access
Code: 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”. 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; the availability of financing and
refinancing; our ability to meet requirements for additional
capital and financing to complete our newbuilding program and grow
our business; the impact of the level of our indebtedness and the
restrictions in our debt agreements; vessel breakdowns and
instances of off‐hire; risks associated with vessel construction;
potential exposure or loss from investment in derivative
instruments; potential conflicts of interest involving our Chief
Executive Officer, his family and other members of our senior
management and our ability to complete acquisition transactions as
planned. Please see our filings with the Securities and Exchange
Commission for a more complete discussion of these and other risks
and uncertainties. The information set forth herein speaks only as
of the date hereof, and the Company disclaims any intention or
obligation to update any forward‐looking statements as a result of
developments occurring after the date of this communication.
Contacts
Company:Simos Spyrou, Christos
BeglerisCo ‐ Chief Financial Officers Star Bulk Carriers Corp.c/o
Star Bulk Management Inc.40 Ag. Konstantinou Av.Maroussi
15124Athens, GreeceEmail: info@starbulk.comwww.starbulk.com
Investor Relations / Financial Media:
Nicolas BornozisPresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, NY 10169Tel. (212)
661‐7566E‐mail: starbulk@capitallink.comwww.capitallink.com
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