Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq:
SBLK), a global shipping company focusing on the transportation of
dry bulk cargoes, today announced its unaudited financial and
operating results for the third quarter of 2022. Unless otherwise
indicated or unless the context requires otherwise, all references
in this press release to "we," "us," "our," or similar references,
mean Star Bulk Carriers Corp. and, where applicable, its
consolidated subsidiaries.
Financial Highlights
(Expressed in thousands of U.S. dollars, except for daily rates and
per share data) |
|
|
|
|
|
Third quarter
2022 |
Third quarter
2021 |
Nine months
ended September 30, 2022 |
Nine months
ended September 30, 2021 |
|
Voyage Revenues |
$364,136 |
$415,688 |
$1,142,353 |
$927,566 |
|
Net income/(loss) |
$109,693 |
$220,407 |
$480,203 |
$380,379 |
|
Adjusted Net income / (loss)(1) |
$136,257 |
$224,671 |
$516,340 |
$389,314 |
|
Net cash provided by operating activities |
$184,475 |
$251,032 |
$653,562 |
$470,699 |
|
EBITDA(2) |
$163,807 |
$274,652 |
$635,941 |
$538,923 |
|
Adjusted EBITDA(2) |
$189,850 |
$277,824 |
$674,030 |
$545,094 |
|
Earnings / (loss) per share basic |
$1.08 |
$2.16 |
$3.67 |
$3.77 |
|
Earnings / (loss) per share diluted |
$1.07 |
$2.15 |
$3.66 |
$3.76 |
|
Adjusted earnings / (loss) per share basic(1) |
$1.34 |
$2.20 |
$3.95 |
$3.86 |
|
Adjusted earnings / (loss) per share diluted(1) |
$1.33 |
$2.19 |
$3.94 |
$3.85 |
|
Average Number of Vessels |
|
128.0 |
|
128.0 |
|
128.0 |
|
124.5 |
|
TCE Revenues(3) |
$266,720 |
$349,289 |
$909,140 |
$760,612 |
|
Daily Time Charter Equivalent Rate ("TCE")(3) |
$24,365 |
$30,626 |
$27,418 |
$23,304 |
|
Daily OPEX per vessel(4) |
$5,107 |
$4,596 |
$5,036 |
$4,545 |
|
Daily OPEX per vessel (excl. non recurring expenses)(4) |
$4,769 |
$4,304 |
$4,730 |
$4,288 |
|
Daily Net Cash G&A expenses per vessel(5) |
$950 |
$987 |
$1,008 |
$1,053 |
|
|
|
|
|
|
|
(1) Adjusted Net income / (loss) and
Adjusted earnings / (loss) per share basic and diluted are non-GAAP
measures. Please see EXHIBIT I 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 generally accepted accounting principles in the United States
(“ U.S. GAAP”), as well as for the definition of each measure.
(2) EBITDA and Adjusted EBITDA are non-GAAP measures. Please
see EXHIBIT I 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 U.S.
GAAP as well as for the definition of each measure. To derive
Adjusted EBITDA from EBITDA, we exclude non-cash gains / (losses).
(3) Daily Time Charter Equivalent Rate (“TCE”) and TCE
Revenues are non-GAAP measures. Please see EXHIBIT I at the end of
this release for a reconciliation to Voyage Revenues, which is the
most directly comparable financial measure calculated and presented
in accordance with U.S. GAAP, as well as for the definition of each
measure. (4) Daily OPEX per vessel is calculated by dividing
vessel operating expenses by Ownership days (defined below). Daily
OPEX per vessel (which excludes non-recurring expenses) is
calculated by dividing vessel operating expenses minus any
non-recurring items (such as, increased costs due to the COVID-19
pandemic or pre-delivery expenses, if any) by Ownership days. In
the future we may incur expenses that are the same as or similar to
certain non-recurring expenses that were previously excluded.
(5) 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 share-based compensation expense
and other non-cash charges) and (3) then dividing the result
by the sum of Ownership days and Charter-in days. Please see
EXHIBIT I 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:
During the third quarter, Star Bulk reported Net
Income of $109.7 million, TCE Revenues of $266.7 million and EBITDA
of $163.8 million. TCE for the quarter was $24,365 / day per
vessel, exceeding the fleet-weighted average Baltic indices by over
50%. Looking to Q4, we have covered ~66% of our available days at a
TCE of $22,772 / day per vessel.
Our Board of Directors has approved a dividend
distribution of $1.20 / share, consistent with our stated capital
allocation strategy. This dividend will be the seventh consecutive
quarterly distribution and the ninth since we established our
policy. Since the beginning of 2021 and including the
abovementioned dividend, we will have distributed approximately
$900 million to our shareholders.
We continue to optimize our capital structure,
having agreed three additional refinancings totaling $96.0 million.
Since the beginning of the year we have agreed refinancings of
$402.6 million, reducing our annual interest cost by $4.9 million.
From a risk management perspective, we have $754.7 million of swaps
fixed at an average of 46 bps, protecting the Company from
increased interest costs for an average remaining maturity of 1.4
years.
With continued elevated high sulfur/low sulfur
fuel price spreads, our investment in scrubbers has contributed
meaningfully to profitability for the quarter, strengthening our
earnings and providing downside protection during seasonal
downturns.
With the dry bulk orderbook at an all-time low
and with new environmental regulations coming into force and
expectations of a gradual reopening of the Chinese economy, we
remain optimistic about the long term prospects of the dry bulk
market despite global macro uncertainties.
Recent Developments
Declaration of Dividend
As of September 30, 2022, we owned 128 vessels
and our aggregate amount of cash on our balance sheet was $392.7
million. Taking into account the Minimum Cash Balance per Vessel,
as defined in our 2021 annual report, of $2.10 million, or $268.8
million in the aggregate, on November 16, 2022, pursuant to our
dividend policy, our Board of Directors declared a quarterly cash
dividend of $1.20 per share, payable on or about December 12, 2022
to all shareholders of record as of November 30, 2022. The
ex-dividend date is expected to be November 29, 2022.
Vessels in Ukraine Update
Following the recent multilateral agreement
among Russia, Ukraine, Turkey and the United Nations to resume
grain exports from the Black Sea regions, we succeeded in safely
navigating the Star Helena and the Star Laura out of Ukraine , and
the vessels are now normally trading. The Star Pavlina, however,
remains in Ukraine safely manned with Ukrainian crew and efforts
continue to have the vessel safely sail out of the region. In
addition to standard industry vessel risk insurance, war risk
insurance is in place for the remaining vessel and the applicable
war risk insurers have confirmed that they hold the vessel covered
at its current position in Ukraine, which includes Hull and
Machinery and Increased Value insurance, Detention and Diversion
Cover and War Loss of Hire for 180 days. We continue to closely
monitor the situation to ensure that the interests of all
stakeholders are safeguarded.
Financing
In September 2022, we entered into a committed term-sheet with a
wholly owned subsidiary of NTT Finance Corporation for a loan
facility of $24.0 million (the “NTT $24.0 million Facility”). The
facility will be used to refinance the outstanding loan amount of
the Star Virgo and is expected to be drawn by end of November 2022,
when the outstanding amount of the existing loan facility will be
repaid. The NTT $24.0 million Facility will mature 5 years after
the drawdown and will be secured by first priority mortgage on the
Star Virgo.
In September 2022, we entered into a committed
term-sheet with CTBC Bank Co., Ltd for a loan facility of up to
$25.0 million (the “CTBC $25.0 million Facility”). The facility
will finance the Star Libra and is expected to be drawn by the end
of November 2022 and will mature 5 years after the drawdown. The
outstanding lease amount of the aforementioned vessel was repaid in
full in late October 2022 with cash. The CTBC $25.0 million
Facility will be secured by first priority mortgage on the Star
Libra.
In September 2022, we entered into a committed
term-sheet with Standard Chartered Bank for a loan facility of up
to $47.0 million (the “Standard Chartered $47.0 million Facility”).
The facility will be available in two tranches and will be used to
refinance the outstanding amounts under the loan agreements of each
of the Star Marisa and the Star Laetitia. The two tranches are
expected to be drawn by the end of the fourth quarter of 2022 and
will mature 5 years after the drawdown. The Standard Chartered
$47.0 million Facility will be secured by first priority mortgages
on the two vessels.
The financing arrangements discussed here
contain financial and other covenants substantially similar to
those covenants described in Item 5 of the 2021 annual report for
our credit facilities.
Following the completion of the $402.6 million
refinancings that we have performed during 2022, we will have 13
unlevered vessels, we have extended the average maturity of our
outstanding facilities from 3.6 to 4.5 years and we expect to save
approximately $4.9 million per year in interest costs from more
competitive margins.
As of today, following a number of interest
rates swaps we have entered into, we have an outstanding total
notional amount of $754.7 million under our financing agreements
with average fixed rate of 46 bps and with average maturity of 1.4
years. As of October 31, 2022 the Mark-to-Market of our outstanding
interest rate swaps stood at $37.2 million. The above interest rate
swaps are designated and qualify for hedge accounting.
Vessel Employment Overview
Time Charter Equivalent Rate (“TCE rate”) is a
non-GAAP measure. Please see EXHIBIT I 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.
For the third
quarter of 2022 our TCE rate
was: |
Capesize / Newcastlemax Vessels: |
$25,418 per day. |
Post Panamax / Kamsarmax /
Panamax Vessels: |
$21,932 per day. |
Ultramax / Supramax Vessels: |
$26,155 per day. |
|
|
For the first
nine months of 2022 our TCE rate
was: |
Capesize / Newcastlemax
Vessels: |
$27,294 per day. |
Post Panamax / Kamsarmax /
Panamax Vessels: |
$26,249 per day. |
Ultramax / Supramax Vessels: |
$28,533 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. Reference to per
share figures below are based on 102,541,314 and 102,525,065
weighted average diluted shares for the third quarter of 2022 and
2021, respectively.
Third Quarter 2022 and 2021 Results
For the third quarter of 2022, we had a net
income of $109.7 million, or $1.07 earnings per share, compared to
a net income for the third quarter of 2021 of $220.4 million, or
$2.15 earnings per share.
Adjusted net income, which excludes certain
non-cash items, was $136.3 million, or $1.33 earnings per share,
for the third quarter of 2022, compared to an adjusted net income
of $224.7 million for the third quarter of 2021, or $2.19 earnings
per share.
Net cash provided by operating activities for
the third quarter of 2022 was $184.5 million, compared to $251.0
million for the third quarter of 2021. Adjusted EBITDA, which
excludes certain non-cash items, was $189.9 million for the third
quarter of 2022, compared to $277.8 million for the third quarter
of 2021.
Voyage revenues for the third quarter of 2022
decreased to $364.1 million from $415.7 million in the third
quarter of 2021 and Time charter equivalent revenues (“TCE
Revenues”)1 were $266.7 million for the third quarter of 2022,
compared to $349.3 million for the third quarter of 2021. TCE rate
for the third quarter of 2022 was $24,365 compared to $30,626 for
the third quarter of 2021 which is indicative of the weaker market
conditions prevailing during the recent quarter.
Our results for the third quarter of 2022
include a loss on write-down of inventories of $14.9 million
resulting from the valuation of the bunkers remaining on board our
vessels following the substantial decrease of bunkers’ net
realizable value compared to their historical cost.
For the third quarters of 2022 and 2021, vessel
operating expenses were $60.1 million and $54.1 million,
respectively. Vessel operating expenses for the third quarter of
2022 included additional crew expenses related to the increased
number and cost of crew changes performed during the period as a
result of COVID-19 related restrictions, estimated to be $1.9
million. In addition, during the third quarter of 2022 we incurred
$2.1 million of additional operating expenses due to change of
management of certain vessels from third party to in-house. Vessel
operating expenses for the third quarter of 2021 included COVID-19
related expenses of $2.8 million and pre-delivery and pre-joining
expenses of $0.6 million. Excluding non-recurring expenses such as
increased costs due to the COVID-19 pandemic, exceptional operating
expenses due to change of management and pre-delivery and
pre-joining expenses, our daily operating expenses per vessel for
the third quarters of 2022 and 2021 were $4,769 and $4,304,
respectively. This increase was driven by the higher repair and
maintenance costs incurred due to the preventive maintenance
program of our fleet, ensuring quality service to our clients and
minimizing off hire time, as well as inflationary pressure on the
cost of materials and services worldwide.
Drydocking expenses for the third quarter of
2022 and 2021, were $9.8 million and $5.1 million,
respectively.During the third quarter of 2022 8 vessels, mainly
Newcatlemaxes and Capesizes, completed their periodic dry docking
surveys while during the corresponding period in 2021, 6 vessels,
mainly Supramaxes, completed their periodic dry docking
surveys.
General and administrative expenses for the
third quarters of 2022 and 2021 were $18.4 million and $12.8
million, respectively, primarily due to the increase in the stock
based compensation expense to $11.9 million from $6.1 million.
Vessel management fees for the third quarters of 2022 and 2021 were
$4.9 million. Our daily net cash general and administrative
expenses per vessel (including management fees and excluding
share-based compensation and other non-cash charges) for the third
quarters of 2022 and 2021 were $950 and $987, respectively.
Interest and finance costs for the third
quarters of 2022 and 2021 were $13.4 million and $13.8 million,
respectively. The driving factor for this variation is the decrease
of the weighted average outstanding indebtedness, which was partly
offset by the increase in Libor rates.
We incurred interest and other income of $0.2
million in the third quarter of 2022 and interest and other loss of
$1.0 million in the third quarter of 2021. This variation is mainly
due to higher interest earned from fixed deposits during the third
quarter of 2022 compared to that earned in the corresponding period
in 2021, counterbalanced by the higher exchange losses in the third
quarter of 2022.
______________________________1 Please see the
table at the end of this release for the calculation of the TCE
Revenues.
Unaudited Consolidated Income Statements
(Expressed
in thousands of U.S. dollars except for share and per share
data) |
|
Third quarter 2022 |
|
|
Third quarter 2021 |
|
|
Nine months ended September 30, 2022 |
|
|
Nine months ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Voyage revenues |
|
$ |
364,136 |
|
|
$ |
415,688 |
|
|
$ |
1,142,353 |
|
|
$ |
927,566 |
|
|
Total revenues |
|
|
364,136 |
|
|
|
415,688 |
|
|
|
1,142,353 |
|
|
|
927,566 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
|
(92,310 |
) |
|
|
(60,851 |
) |
|
|
(212,095 |
) |
|
|
(153,896 |
) |
|
Charter-in
hire expense |
|
|
(4,843 |
) |
|
|
(4,857 |
) |
|
|
(17,793 |
) |
|
|
(12,199 |
) |
|
Vessel
operating expenses |
|
|
(60,140 |
) |
|
|
(54,124 |
) |
|
|
(175,987 |
) |
|
|
(154,450 |
) |
|
Dry docking
expenses |
|
|
(9,844 |
) |
|
|
(5,126 |
) |
|
|
(29,013 |
) |
|
|
(23,995 |
) |
|
Depreciation |
|
|
(39,555 |
) |
|
|
(39,111 |
) |
|
|
(117,024 |
) |
|
|
(113,447 |
) |
|
Management
fees |
|
|
(4,864 |
) |
|
|
(4,943 |
) |
|
|
(14,664 |
) |
|
|
(14,548 |
) |
|
Loss on bad
debt |
|
|
- |
|
|
|
(389 |
) |
|
|
- |
|
|
|
(389 |
) |
|
General and
administrative expenses |
|
|
(18,367 |
) |
|
|
(12,769 |
) |
|
|
(44,279 |
) |
|
|
(30,196 |
) |
|
Gain/(Loss)
on forward freight agreements and bunker swaps |
|
|
322 |
|
|
|
2,321 |
|
|
|
(3,617 |
) |
|
|
784 |
|
|
Other
operational loss |
|
|
(288 |
) |
|
|
(515 |
) |
|
|
(1,062 |
) |
|
|
(2,070 |
) |
|
Other
operational gain |
|
|
4,788 |
|
|
|
59 |
|
|
|
6,891 |
|
|
|
1,256 |
|
|
Gain on time
charter agreement termination |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,102 |
|
|
Loss on
write-down of inventory |
|
|
(14,901 |
) |
|
|
- |
|
|
|
(14,901 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
124,134 |
|
|
|
235,383 |
|
|
|
518,809 |
|
|
|
425,518 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
finance costs |
|
|
(13,448 |
) |
|
|
(13,812 |
) |
|
|
(37,756 |
) |
|
|
(43,271 |
) |
|
Interest and
other income/(loss) |
|
|
168 |
|
|
|
(1,011 |
) |
|
|
229 |
|
|
|
651 |
|
|
Gain/(Loss)
on debt extinguishment, net |
|
|
(1,272 |
) |
|
|
(295 |
) |
|
|
(1,143 |
) |
|
|
(2,648 |
) |
|
Total other expenses, net |
|
|
(14,552 |
) |
|
|
(15,118 |
) |
|
|
(38,670 |
) |
|
|
(45,268 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before equity in investee |
|
|
109,582 |
|
|
|
220,265 |
|
|
|
480,139 |
|
|
|
380,250 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
income/(loss) of investee |
|
|
118 |
|
|
|
158 |
|
|
|
108 |
|
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before taxes |
|
$ |
109,700 |
|
|
$ |
220,423 |
|
|
$ |
480,247 |
|
|
$ |
380,395 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
(7 |
) |
|
|
(16 |
) |
|
|
(44 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
109,693 |
|
|
$ |
220,407 |
|
|
$ |
480,203 |
|
|
$ |
380,379 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share, basic |
|
$ |
1.08 |
|
|
$ |
2.16 |
|
|
$ |
3.67 |
|
|
$ |
3.77 |
|
|
Earnings/(loss) per share, diluted |
|
$ |
1.07 |
|
|
$ |
2.15 |
|
|
$ |
3.66 |
|
|
$ |
3.76 |
|
|
Weighted
average number of shares outstanding, basic |
|
|
101,945,181 |
|
|
|
102,146,539 |
|
|
|
130,715,574 |
|
|
|
100,893,381 |
|
|
Weighted
average number of shares outstanding, diluted |
|
|
102,541,314 |
|
|
|
102,525,065 |
|
|
|
131,141,620 |
|
|
|
101,207,209 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Balance Sheet
Data
|
|
(Expressed in thousands of U.S. dollars) |
|
|
|
ASSETS |
|
September 30, 2022 |
|
December 31, 2021 |
|
Cash and cash equivalents and restricted cash, current |
|
$ |
390,689 |
|
|
471,250 |
|
Other
current assets |
|
|
226,332 |
|
|
211,674 |
|
TOTAL CURRENT ASSETS |
|
|
617,021 |
|
|
682,924 |
|
|
|
|
|
|
|
Vessels and
other fixed assets, net |
|
|
2,916,352 |
|
|
3,013,038 |
|
Restricted
cash, non current |
|
|
2,021 |
|
|
2,021 |
|
Other
non-current assets |
|
|
54,204 |
|
|
56,736 |
|
TOTAL ASSETS |
|
$ |
3,589,598 |
|
$ |
3,754,719 |
|
|
|
|
|
|
|
Current
portion of long-term bank loans and lease financing |
|
$ |
185,958 |
|
$ |
207,135 |
|
Other
current liabilities |
|
|
108,362 |
|
|
83,661 |
|
TOTAL CURRENT LIABILITIES |
|
|
294,320 |
|
|
290,796 |
|
|
|
|
|
|
|
Long-term
bank loans and lease financing non-current (net of unamortized
deferred finance fees of $12,814 and $16,171, respectively) |
|
|
1,192,729 |
|
|
1,334,593 |
|
Other
non-current liabilities |
|
|
40,986 |
|
|
49,312 |
|
TOTAL LIABILITIES |
|
$ |
1,528,035 |
|
$ |
1,674,701 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
2,061,563 |
|
|
2,080,018 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
3,589,598 |
|
$ |
3,754,719 |
|
|
|
|
|
|
|
Unaudited Consolidated Condensed Cash Flow
Data
|
|
|
|
|
|
(Expressed in thousands of U.S. dollars) |
Nine months ended September 30, 2022 |
|
|
Nine months ended September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating
activities |
$ |
653,562 |
|
|
$ |
470,699 |
|
|
|
|
|
|
|
|
|
Acquisition of vessels and other fixed assets |
|
(261 |
) |
|
|
(97,817 |
) |
|
|
Capital expenditures for vessel modifications/upgrades |
|
(19,008 |
) |
|
|
(24,593 |
) |
|
|
Insurance Proceeds |
|
2,393 |
|
|
|
8,830 |
|
|
Net cash provided by / (used in) investing
activities |
|
(16,876 |
) |
|
|
(113,580 |
) |
|
|
|
|
|
|
|
|
Proceeds from vessels' new debt |
|
242,000 |
|
|
|
311,500 |
|
|
|
Scheduled vessels' debt repayment |
|
(151,696 |
) |
|
|
(143,783 |
) |
|
|
Debt prepayment due to refinancing |
|
(256,702 |
) |
|
|
(242,971 |
) |
|
|
Financing fees |
|
(5,140 |
) |
|
|
(4,513 |
) |
|
|
Offering expenses |
|
(293 |
) |
|
|
(241 |
) |
|
|
Refund of financing premia |
|
- |
|
|
|
1,627 |
|
|
|
Shares issued |
|
19,792 |
|
|
|
- |
|
|
|
Repurchase of common shares |
|
(20,068 |
) |
|
|
- |
|
|
|
Dividend payments |
|
(545,140 |
) |
|
|
(102,600 |
) |
|
Net cash provided by / (used in) financing
activities |
|
(717,247 |
) |
|
|
(180,981 |
) |
|
|
|
|
|
|
|
Summary of Selected Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third quarter 2022 |
|
Third quarter 2021 |
|
Nine months ended September 30, 2022 |
|
Nine months ended September 30, 2021 |
|
Average number of vessels (1) |
|
128.0 |
|
|
128.0 |
|
|
128.0 |
|
|
124.5 |
|
Number of vessels (2) |
|
128 |
|
|
128 |
|
|
128 |
|
|
128 |
|
Average age of operational fleet (in years) (3) |
|
10.6 |
|
|
9.6 |
|
|
10.6 |
|
|
9.6 |
|
Ownership days (4) |
|
11,776 |
|
|
11,776 |
|
|
34,944 |
|
|
33,983 |
|
Available days (5) |
|
10,947 |
|
|
11,405 |
|
|
33,158 |
|
|
32,639 |
|
Charter-in days (6) |
|
212 |
|
|
137 |
|
|
717 |
|
|
464 |
|
Daily Time Charter Equivalent Rate (7) |
$24,365 |
|
$30,626 |
|
$27,418 |
|
$23,304 |
|
Daily OPEX per vessel (8) |
$5,107 |
|
$4,596 |
|
$5,036 |
|
$4,545 |
|
Daily OPEX per vessel (excl. non recurring expenses) (8) |
$4,769 |
|
$4,304 |
|
$4,730 |
|
$4,288 |
|
Daily Net Cash G&A expenses per vessel (9) |
$950 |
|
$987 |
|
$1,008 |
|
$1,053 |
|
|
|
|
|
|
|
|
|
|
(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 our 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,
change of management days and for vessels’ improvements and
upgrades. The available days for each period presented were also
decreased by off-hire days relating to disruptions in connection
with crew changes as a result of the COVID-19 pandemic. Our method
of computing Available Days may not necessarily be
comparable to Available Days of other companies. (6) Charter-in
days are the total days that we charter-in vessels, not owned by
us.(7) Time charter equivalent rate 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 (a) TCE Revenues,
which consists of voyage revenues net of voyage expenses,
charter-in hire expense, amortization of fair value of above/below
market acquired time charter agreements, if any, as well as
adjusted for the impact of realized gain/(loss) on forward freight
agreements (“FFAs”) and bunker swaps by (b) Available days for the
relevant time period. Available days do not include the Charter-in
days as per the relevant definitions provided above. Voyage
expenses primarily consist of port, canal and fuel costs that are
unique to a particular voyage, which would otherwise be paid by the
charterer under a time charter contract, as well as commissions. In
the calculation of TCE Revenues, we also include the realized
gain/(loss) on FFAs and bunker swaps as we believe that this method
better reflects the chartering result of our fleet and is more
comparable to the method used by our peers. TCE Revenues and TCE
rate, which are non-GAAP measures, provide additional meaningful
information in conjunction with voyage revenues, the most directly
comparable GAAP measure, because they assist our management in
making decisions regarding the deployment and use of our vessels
and because we believe that they provide useful information to
investors regarding our 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 Revenues and TCE rate
may not necessarily be comparable to those of other companies.
For a detailed calculation please see Exhibit I at the end of this
release with the reconciliation of Voyage Revenues to TCE. (8)
Daily OPEX per vessel is calculated by dividing vessel operating
expenses by Ownership days. Daily OPEX per vessel (excluding non-
recurring expenses) is calculated by dividing vessel operating
expenses minus any non-recurring expenses or other additional
expenses due to conditions outside of the Company’s control (such
as pre-delivery expenses for each vessel at acquisition or at
change of management or increased costs due to the COVID-19
pandemic, if any ) by Ownership days. We exclude non-recurring
expenses that may occur occasionally from our Daily OPEX per
vessel, since these generally represent items that we would not
anticipate occurring as part of our normal business on a regular
basis. We believe that Daily OPEX per vessel (excluding
non-recurring expenses) is a useful measure for our management and
investors for period to period comparison with respect to our
operating cost performance since such measure eliminates the
effects of non-recurring items which may vary from period to
period, are not part of our daily business and derive from reasons
unrelated to overall operating performance. In the future we may
incur expenses that are the same as or similar to certain
non-recurring expenses that were previously excluded. Vessel
operating expenses for the nine month period ended September 30,
2022 and 2021 included additional crew expenses related to the
increased number of crew changes performed during the period as a
result of COVID-19 restrictions imposed in 2020 estimated to be
$7.5 million and $5.8 million, respectively, while vessel operating
expenses for the nine month period ended September 30, 2021
included pre-delivery and pre-joining expenses of $3.0 million (nil
in 2022). Lastly, during the nine month period of 2022 we incurred
$3.2 million of additional operating expenses due to change of
management of certain vessels, from third party to in-house.(9)
Please see Exhibit I at the end of this release for the
reconciliation to General and administrative expenses, the most
directly comparable GAAP measure. We believe that 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.
EXHIBIT I: Non-GAAP Financial Measures
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
exclude non-cash gains/(losses) such as those related to sale of
vessels, share based compensation expense, impairment loss, loss
from bad debt, change in fair value of forward freight agreements
and bunker swaps and the equity in income/(loss) of investee and
other non-cash charges, 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.
EBITDA and Adjusted EBITDA do not represent and
should not be considered as alternatives to cash flow from
operating activities or net income, as determined by United States
generally accepted accounting principles, or U.S. GAAP. Our method
of computing EBITDA and Adjusted EBITDA may not necessarily be
comparable to other similarly titled captions of other
companies.
The following table reconciles net cash provided
by operating activities to EBITDA and Adjusted EBITDA:
(Expressed
in thousands of U.S. dollars) |
Third quarter 2022 |
|
|
Third quarter 2021 |
|
|
Nine months ended September 30, 2022 |
|
|
Nine months ended September 30, 2021 |
|
|
Net cash provided by/(used in) operating activities |
$ |
184,475 |
|
|
$ |
251,032 |
|
|
$ |
653,562 |
|
|
$ |
470,699 |
|
|
Net decrease
/ (increase) in current assets |
|
(13,520 |
) |
|
|
14,290 |
|
|
|
11,760 |
|
|
|
64,751 |
|
|
Net increase
/ (decrease) in operating liabilities, excluding current portion of
long term debt |
|
6,830 |
|
|
|
(790 |
) |
|
|
(24,679 |
) |
|
|
(27,941 |
) |
|
Gain/(Loss)
on debt extinguishment, net |
|
(1,272 |
) |
|
|
(295 |
) |
|
|
(1,143 |
) |
|
|
(2,648 |
) |
|
Share –
based compensation |
|
(11,908 |
) |
|
|
(6,101 |
) |
|
|
(23,388 |
) |
|
|
(8,672 |
) |
|
Amortization
of deferred finance charges |
|
(1,159 |
) |
|
|
(1,450 |
) |
|
|
(3,800 |
) |
|
|
(5,056 |
) |
|
Unrealized
gain / (loss) on forward freight agreements and bunker swaps |
|
585 |
|
|
|
3,012 |
|
|
|
(292 |
) |
|
|
1,456 |
|
|
Total other
expenses, net |
|
14,552 |
|
|
|
15,118 |
|
|
|
38,670 |
|
|
|
45,268 |
|
|
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,102 |
|
|
Gain/(Loss)
on hull and machinery claims |
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
192 |
|
|
Loss on bad
debt |
|
- |
|
|
|
(389 |
) |
|
|
- |
|
|
|
(389 |
) |
|
Income
tax |
|
7 |
|
|
|
16 |
|
|
|
44 |
|
|
|
16 |
|
|
Loss on
write-down of inventory |
|
(14,901 |
) |
|
|
- |
|
|
|
(14,901 |
) |
|
|
- |
|
|
Equity in
income/(loss) of investee |
|
118 |
|
|
|
158 |
|
|
|
108 |
|
|
|
145 |
|
|
EBITDA |
$ |
163,807 |
|
|
$ |
274,652 |
|
|
$ |
635,941 |
|
|
$ |
538,923 |
|
|
|
|
|
|
|
|
|
|
|
Equity in
(income)/loss of investee |
|
(118 |
) |
|
|
(158 |
) |
|
|
(108 |
) |
|
|
(145 |
) |
|
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,102 |
) |
|
Unrealized
(gain)/loss on forward freight agreements and bunker swaps |
|
(585 |
) |
|
|
(3,012 |
) |
|
|
292 |
|
|
|
(1,456 |
) |
|
Loss on
write-down of inventory |
|
14,901 |
|
|
|
- |
|
|
|
14,901 |
|
|
|
- |
|
|
Share-based
compensation |
|
11,908 |
|
|
|
6,101 |
|
|
|
23,388 |
|
|
|
8,672 |
|
|
Loss on bad
debt |
|
- |
|
|
|
389 |
|
|
|
- |
|
|
|
389 |
|
|
Other
non-cash charges |
|
(63 |
) |
|
|
(148 |
) |
|
|
(384 |
) |
|
|
(187 |
) |
|
Adjusted EBITDA |
$ |
189,850 |
|
|
$ |
277,824 |
|
|
$ |
674,030 |
|
|
$ |
545,094 |
|
|
|
|
|
|
|
|
|
|
|
Net income/(Loss) and Adjusted Net
income/(Loss) Reconciliation and Calculation of Adjusted
Earnings/(Loss) Per Share
To derive Adjusted Net Income/(Loss) and
Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we
exclude non-cash items, as provided in the table below. We believe
that Adjusted Net Income/(Loss) 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, unrealized gain/(loss) on
derivatives, impairment loss and other items which may vary from
year to year, for reasons unrelated to overall operating
performance. 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 with
GAAP measures alone. Our method of computing Adjusted Net
Income/(Loss) and Adjusted Earnings/ (Loss) Per Share may not
necessarily be comparable to other similarly titled captions of
other companies.
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) |
|
|
|
|
|
|
|
|
|
Third quarter2022 |
|
|
Third quarter2021 |
|
|
Nine months endedSeptember 30, 2022 |
|
|
Nine months endedSeptember 30, 2021 |
|
Net income / (loss) |
|
$ |
109,693 |
|
|
$ |
220,407 |
|
|
$ |
480,203 |
|
|
$ |
380,379 |
|
Amortization
of fair value of above/below market acquired time charter
agreements, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(187 |
) |
Loss on bad
debt |
|
|
- |
|
|
|
389 |
|
|
|
- |
|
|
|
389 |
|
Share –
based compensation |
|
|
11,908 |
|
|
|
6,101 |
|
|
|
23,388 |
|
|
|
8,672 |
|
Other
non-cash charges |
|
|
(63 |
) |
|
|
(148 |
) |
|
|
(384 |
) |
|
|
(187 |
) |
Unrealized
(gain) / loss on forward freight agreements and bunker swaps |
|
|
(585 |
) |
|
|
(3,012 |
) |
|
|
292 |
|
|
|
(1,456 |
) |
Loss on
write-down of inventory |
|
|
14,901 |
|
|
|
- |
|
|
|
14,901 |
|
|
|
- |
|
(Gain)/Loss
on debt extinguishment (non-cash) |
|
|
521 |
|
|
|
1,092 |
|
|
|
(1,952 |
) |
|
|
2,951 |
|
Equity in
(income)/loss of investee |
|
|
(118 |
) |
|
|
(158 |
) |
|
|
(108 |
) |
|
|
(145 |
) |
Gain on time
charter agreement termination |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,102 |
) |
Adjusted Net income / (loss) |
|
$ |
136,257 |
|
|
$ |
224,671 |
|
|
$ |
516,340 |
|
|
$ |
389,314 |
|
Weighted
average number of shares outstanding, basic |
|
|
101,945,181 |
|
|
|
102,146,539 |
|
|
|
130,715,574 |
|
|
|
100,893,381 |
|
Weighted
average number of shares outstanding, diluted |
|
|
102,541,314 |
|
|
|
102,525,065 |
|
|
|
131,141,620 |
|
|
|
101,207,209 |
|
Adjusted Basic Earnings / (Loss) Per Share |
|
$ |
1.34 |
|
|
$ |
2.20 |
|
|
$ |
3.95 |
|
|
$ |
3.86 |
|
Adjusted Diluted Earnings / (Loss) Per Share |
|
$ |
1.33 |
|
|
$ |
2.19 |
|
|
$ |
3.94 |
|
|
$ |
3.85 |
|
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands of U.S. Dollars, except for TCE rates) |
|
Third quarter 2022 |
|
|
Third quarter 2021 |
|
|
Nine months ended September 30, 2022 |
|
|
Nine months ended September 30, 2021 |
|
|
Voyage revenues |
|
$ |
364,136 |
|
|
$ |
415,688 |
|
|
$ |
1,142,353 |
|
|
$ |
927,566 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
|
(92,310 |
) |
|
|
(60,851 |
) |
|
|
(212,095 |
) |
|
|
(153,896 |
) |
|
Charter-in
hire expense |
|
|
(4,843 |
) |
|
|
(4,857 |
) |
|
|
(17,793 |
) |
|
|
(12,199 |
) |
|
Realized
gain/(loss) on FFAs/bunker swaps |
|
|
(263 |
) |
|
|
(691 |
) |
|
|
(3,325 |
) |
|
|
(672 |
) |
|
Amortization
of fair value of below/above market acquired time charter
agreements, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(187 |
) |
|
Time
Charter equivalent revenues |
|
$ |
266,720 |
|
|
$ |
349,289 |
|
|
$ |
909,140 |
|
|
$ |
760,612 |
|
|
|
|
|
|
|
|
|
|
|
|
Available
days |
|
|
10,947 |
|
|
|
11,405 |
|
|
|
33,158 |
|
|
|
32,639 |
|
|
Daily Time Charter Equivalent Rate ("TCE") |
|
$ |
24,365 |
|
|
$ |
30,626 |
|
|
$ |
27,418 |
|
|
$ |
23,304 |
|
|
|
|
|
|
|
|
|
|
|
|
Daily Net Cash G&A expenses per vessel
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of U.S. Dollars, except for daily rates) |
Third quarter 2022 |
|
|
Third quarter 2021 |
|
|
Nine months ended September 30, 2022 |
|
|
Nine months ended September 30, 2021 |
|
|
General and administrative expenses |
|
$ |
18,367 |
|
|
$ |
12,769 |
|
|
$ |
44,279 |
|
|
$ |
30,196 |
|
|
Plus: |
|
|
|
|
|
|
|
|
|
Management
fees |
|
|
4,864 |
|
|
|
4,943 |
|
|
|
14,664 |
|
|
|
14,548 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
Share –
based compensation |
|
|
(11,908 |
) |
|
|
(6,101 |
) |
|
|
(23,388 |
) |
|
|
(8,672 |
) |
|
Other
non-cash charges |
|
|
63 |
|
|
|
148 |
|
|
|
384 |
|
|
|
187 |
|
|
Net
Cash G&As expenses |
|
$ |
11,386 |
|
|
$ |
11,759 |
|
|
$ |
35,939 |
|
|
$ |
36,259 |
|
|
|
|
|
|
|
|
|
|
|
|
Ownership
days |
|
|
11,776 |
|
|
|
11,776 |
|
|
|
34,944 |
|
|
|
33,983 |
|
|
Charter-in
days |
|
|
212 |
|
|
|
137 |
|
|
|
717 |
|
|
|
464 |
|
|
Daily Net Cash G&A expenses per vessel |
|
$ |
950 |
|
|
$ |
987 |
|
|
$ |
1,008 |
|
|
$ |
1,053 |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call details:
Our management team will host a conference call
to discuss our financial results on Thursday, November 17, 2022 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
877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and
Standard International Dial In), or +0 800 756 3429 (UK Toll Free
Dial In). Please quote “Star Bulk Carriers” to the operator and/or
conference ID 13733967. Click here for additional participant
International Toll-Free access numbers.
Alternatively, participants can register for the
call using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option.
Slides and audio webcast: There
will also be a live, and then archived, webcast of the conference
call and accompanying slides, available through the Company’s
website. To listen to the archived audio file, visit our website
www.starbulk.com and click on Events & Presentations.
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About Star BulkStar 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, minerals and grain, and minor
bulks, which include bauxite, fertilizers and steel products. Star
Bulk was incorporated in the Marshall Islands on December 13, 2006
and maintains executive offices in Athens, New York, Limassol,
Singapore and Germany. Its common stock trades on the Nasdaq Global
Select Market under the symbol “SBLK”. Star Bulk operates a fleet
of 128 vessels, with an aggregate capacity of 14.1 million dwt,
consisting of 17 Newcastlemax, 22 Capesize, 2 Mini Capesize, 7 Post
Panamax, 41 Kamsarmax, 2 Panamax, 20 Ultramax and 17 Supramax
vessels with carrying capacities between 52,425 dwt and 209,529
dwt.
Forward-Looking
StatementsMatters discussed in this press release may
constitute forward looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
We desire 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. Words such as, but not limited to,
“believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,”
“targets,” “projects,” “likely,” “will,”“would,” “could,” “should,”
“may,” “forecasts,” “potential,” “continue,” “possible” and similar
expressions or phrases may 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 our management of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe 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 our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our 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 currencies, interest rates and foreign exchange
rates, and the impact of the discontinuance of the London Interbank
Offered Rate for US Dollars, or LIBOR, after June 30, 2023 on any
of our debt referencing LIBOR in the interest rate; business
disruptions due to natural disasters or other disasters outside our
control, such as the ongoing global outbreak of the novel
coronavirus (“COVID-19”); the length and severity of epidemics and
pandemics, including COVID-19 and its impact on the demand for
seaborne transportation in the dry bulk sector; changes in supply
and demand in the dry bulk shipping industry, including the market
for our vessels and the number of newbuildings under construction;
the potential for technological innovation in the sector in which
we operate and any corresponding reduction in the value of our
vessels or the charter income derived therefrom; changes in our
operating expenses, including bunker prices, dry docking, crewing
and insurance costs; changes in governmental rules and regulations
or actions taken by regulatory authorities; potential liability
from pending or future litigation and potential costs due to
environmental damage and vessel collisions; the impact of
increasing scrutiny and changing expectations from investors,
lenders, charterers and other market participants with respect to
our Environmental, Social and Governance practices; general
domestic and international political conditions or events,
including “trade wars” and the recent conflicts between Russia and
Ukraine; the impact on our common shares and reputation if our
vessels were to call on ports located in countries that are subject
to restrictions imposed by the U.S. or other governments; potential
physical disruption of shipping routes due to accidents,
climate-related (acute and chronic), political events, public
health threats, international hostilities and instability, piracy
or acts by terrorists; the availability of financing and
refinancing; the failure of our contract counterparties to meet
their obligations; our ability to meet requirements for additional
capital and financing to grow our business; the impact of our
indebtedness and the compliance with the covenants included in our
debt agreements; vessel breakdowns and instances of off‐hire;
potential exposure or loss from investment in derivative
instruments; potential conflicts of interest involving our Chief
Executive Officer, his family and other members of our senior
management and our ability to complete acquisition transactions as
and when planned. Please see our filings with the Securities and
Exchange Commission for a more complete discussion of these and
other risks and uncertainties. The information set forth herein
speaks only as of the date hereof, and the Company disclaims any
intention or obligation to update any forward‐looking statements as
a result of developments occurring after the date of this
communication.
Contacts
Company: |
Investor Relations / Financial Media: |
Simos
Spyrou, Christos Begleris |
Nicolas
Bornozis |
Co ‐
Chief Financial Officers |
President |
Star Bulk
Carriers Corp. |
Capital
Link, Inc. |
c/o Star
Bulk Management Inc. |
230 Park
Avenue, Suite 1536 |
40 Ag.
Konstantinou Av. |
New York,
NY 10169 |
Maroussi
15124 |
Tel.
(212) 661‐7566 |
Athens,
Greece |
E‐mail:
starbulk@capitallink.com |
Email:
info@starbulk.com |
www.capitallink.com |
www.starbulk.com |
|
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