Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq:
SBLK), a global shipping company focusing on the transportation of
dry bulk cargoes, today announced its unaudited financial and
operating results for the fourth quarter 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) |
|
|
|
|
Fourth quarter 2022 |
Fourth quarter 2021 |
Twelve months ended December 31, 2022 |
Twelve months ended December 31, 2021 |
Voyage Revenues |
$294,803 |
$499,857 |
$1,437,156 |
$1,427,423 |
Net income/(loss) |
$85,796 |
$300,151 |
$565,999 |
$680,530 |
Adjusted Net income / (loss) (1) |
$92,461 |
$302,446 |
$608,801 |
$691,764 |
Net cash provided by operating activities |
$116,336 |
$296,372 |
$769,898 |
$767,071 |
EBITDA (2) |
$128,499 |
$353,054 |
$764,440 |
$891,977 |
Adjusted EBITDA (2) |
$134,584 |
$355,128 |
$808,614 |
$900,221 |
Earnings / (loss) per share basic |
$0.84 |
$2.94 |
$5.54 |
$6.73 |
Earnings / (loss) per share diluted |
$0.84 |
$2.93 |
$5.52 |
$6.71 |
Adjusted earnings / (loss) per share basic (1) |
$0.90 |
$2.96 |
$5.96 |
$6.84 |
Adjusted earnings / (loss) per share diluted (1) |
$0.90 |
$2.96 |
$5.94 |
$6.82 |
Dividend per share for the relevant period |
$0.60 |
$2.00 |
$5.10 |
$4.25 |
Average Number of Vessels |
128.0 |
128.0 |
128.0 |
125.4 |
TCE Revenues (3) |
$216,428 |
$428,004 |
$1,125,568 |
$1,188,616 |
Daily Time Charter Equivalent Rate ("TCE") (3) |
$19,590 |
$37,406 |
$25,461 |
$26,978 |
Daily OPEX per vessel (4) |
$4,469 |
$4,604 |
$4,893 |
$4,560 |
Daily OPEX per vessel (excl. non recurring expenses) (4) |
$4,205 |
$4,373 |
$4,598 |
$4,310 |
Daily Net Cash G&A expenses per vessel (5) |
$977 |
$1,042 |
$1,000 |
$1,050 |
(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) and earnings / (loss) per share basic and diluted, which are
the most directly comparable financial measures 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 liquidity 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 certain 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) adding
the Management fee expense to, the General and Administrative
expenses (net of share-based compensation expense and other
non-cash charges) and (2) 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 fourth quarter, Star Bulk reported
Net Income of $85.8 million, TCE Revenues of $216.4 million and
EBITDA of $128.5 million. TCE for the quarter was $19,590/day per
vessel, substantially exceeding the fleet-weighted average Baltic
indices.
Consistent with our stated dividend policy, our
Board of Directors has approved a dividend distribution of $0.60 /
share. For the full year 2022, Star Bulk will have made
distributions of $525.7 million, or $5.10 per share to its
shareholders. Since 2021 we have distributed a total of $960.7
million, or $9.35 per share in dividends.
During the last few months we completed new debt
refinancings totaling ~$430 million, effectively reducing our
annual interest cost by ~$5.2 million. As of today we have $722.1
million of swaps fixed at an average of 46 bps, protecting the
Company from increased interest costs for an average remaining
maturity of 1.1 years.
On the ESG front, Star Bulk has participated in
the Carbon Disclosure Project (“CDP”) for a second year in a row,
achieving a score of B and improving its performance versus last
year where it had scored a B-. This rating continues to place the
Company at Management Level as per the CDP scoring, indicating a
maturity of “taking coordinated action on climate issues”. It also
places Star Bulk above both the industry average of C and the
global average of C, which indicates Awareness Level. During
2023 Star Bulk will aim to continue improving its environmental
stewardship, by measuring and reporting for the first time also its
Scope 3 emissions, namely the emissions which Star Bulk affects
indirectly across its value chain.
Despite the current seasonal spot market
weakness, the long term prospects of the dry bulk market remain
encouraging given the 25-year low orderbook and the positive effect
on dry bulk demand from the Chinese economy re-opening. Star Bulk
is well positioned due to its scrubber fitted and diverse fleet to
take advantage of a recovery in the dry bulk freight rates.
Recent Developments
Declaration of Dividend
As of December 31, 2022, we owned 128 vessels
and our aggregate amount of cash on our balance sheet was $286.3
million. Adjusted for drawdowns that took place in early January
2023, our cash balance was $331.7 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
February 16, 2023, pursuant to our dividend policy, our Board of
Directors declared a quarterly cash dividend of $0.60 per share,
payable on or about March 14, 2023 to all shareholders of record as
of February 28, 2023. The ex-dividend date is expected to be
February 27, 2023.
Financing
Following the completion of the loan
documentation with a wholly owned subsidiary of NTT Finance
Corporation and CTBC Bank Co., Ltd, in November and December 2022
we drew down an aggregate amount of $49.0 million under the i) NTT
$24.0 million Facility and ii) CTBC $25.0 million Facility, as
described in our Q3 2022 Press Release. In addition, following the
completion of the loan documentation with Standard Chartered Bank,
in January 2023 we drew down $47.0 million under the Standard
Chartered $47.0 million Facility, as described in our Q3 2022 Press
Release.
In addition, in December 2022, we entered into a
loan agreement with ABN AMRO Bank for a loan facility of $24.0
million (the “ABN AMRO $24.0 million Facility”). The amount was
drawn in December 2022 and used to refinance the outstanding amount
under the loan agreement of the Star Sienna. The ABN AMRO $24.0
million Facility matures 5 years after the drawdown and is secured
by first priority mortgage on the Star Sienna.
The financing arrangements discussed above
contain financial and other covenants substantially similar to
those covenants described in Item 5 of our 2021 annual report
regarding our credit facilities.
Following the completion of the $430.0 million
of new refinancings that we performed during 2022 and January 2023,
we have 13 unlevered vessels, we extended the average maturity of
our outstanding facilities from 3.6 to 4.3 years and we expect to
save approximately $5.2 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 $722.1 million under our financing agreements
with an average fixed rate of 46 bps and an average maturity of 1.1
years. As of December 31, 2022 the Mark-to-Market value of our
outstanding interest rate swaps stood at $33.4 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 fourth quarter of 2022 our TCE rate was: |
|
Capesize / Newcastlemax Vessels: |
$19,692 per day. |
Post Panamax / Kamsarmax / Panamax Vessels: |
$19,702 per day. |
Ultramax / Supramax Vessels: |
$19,264 per day. |
|
|
For the year ended December 31, 2022 our TCE rate
was: |
|
Capesize / Newcastlemax Vessels: |
$25,372 per day. |
Post Panamax / Kamsarmax / Panamax Vessels: |
$24,596 per day. |
Ultramax / Supramax Vessels: |
$26,277 per day. |
Amounts shown throughout the press release and variations in
period–over–period comparisons are derived from the actual
unaudited numbers in our books and records. Reference to per share
figures below are based on 102,724,888 and 102,285,188 weighted
average diluted shares for the fourth quarter of 2022 and 2021,
respectively.
Fourth Quarter 2022 and 2021 Results
For the fourth quarter of 2022, we had a net
income of $85.8 million, or $0.84 earnings per share, compared to a
net income for the fourth quarter of 2021 of $300.2 million, or
$2.93 earnings per share.
Adjusted net income, which excludes certain
non-cash items, was $92.5 million, or $0.90 earnings per share, for
the fourth quarter of 2022, compared to an adjusted net income of
$302.4 million for the fourth quarter of 2021, or $2.96 earnings
per share.
Net cash provided by operating activities for
the fourth quarter of 2022 was $116.3 million, compared to $296.4
million for the fourth quarter of 2021. Adjusted EBITDA, which
excludes certain non-cash items, was $134.6 million for the fourth
quarter of 2022, compared to $355.1 million for the fourth quarter
of 2021.
Voyage revenues for the fourth quarter of 2022
decreased to $294.8 million from $499.9 million in the fourth
quarter of 2021 and Time charter equivalent revenues (“TCE
Revenues”)1 were $216.4 million for the fourth quarter of 2022,
compared to $428.0 million for the fourth quarter of 2021. TCE rate
for the fourth quarter of 2022 was $19,590 compared to $37,406 for
the fourth quarter of 2021 which is indicative of the weaker market
conditions prevailing during the recent quarter.
Our results for the fourth quarter of 2022
include a loss on write-down of inventories of $2.4 million
resulting from the valuation of the bunkers remaining on board our
vessels as a result of the continuing decrease of such bunkers’ net
realizable value compared to their historical cost.
For the fourth quarters of 2022 and 2021, vessel
operating expenses were $52.6 million and $54.2 million,
respectively. Vessel operating expenses for the fourth 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 $2.2
million. In addition, we incurred $1.0 million of additional
operating expenses due to change of management of certain vessels
from third party to in-house. Vessel operating expenses for the
fourth quarter of 2021 included COVID-19 related expenses of $2.6
million and pre-delivery and pre-joining expenses of $0.1 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 decreased to $4,205 for the fourth
quarter of 2022 from $4,373 for the fourth quarter of 2021.
Drydocking expenses for the fourth quarters of
2022 and 2021, were $18.7 million and $7.0 million, respectively.
During the fourth quarter of 2022 14 vessels completed their
periodic dry docking surveys while during the corresponding period
in 2021, 3 vessels completed their periodic dry docking
surveys.
General and administrative expenses for the
fourth quarters of 2022 and 2021 were $12.5 million and $9.3
million, respectively, primarily due to the increase in the stock
based compensation expense to $5.1 million from $1.7 million.
Vessel management fees for the fourth quarter of 2022 decreased to
$4.4 million from $4.9 million in the corresponding period of 2021
due to the change of management of certain vessels, from third
party to in-house as described above. 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 fourth quarters of 2022 and 2021 were $977 and $1,042,
respectively.
Interest and finance costs for the fourth
quarters of 2022 and 2021 were $14.8 million and $12.8 million,
respectively. The driving factor for this increase is the increase
in the London Interbank Offered Rate for US Dollars (“LIBOR”),
which was partially offset by the decrease in our weighted average
outstanding indebtedness.
Interest income and other income for the fourth
quarter of 2022 amounted to $6.8 million, compared to an interest
income and other loss, net of $0.3 million in the fourth quarter of
2021. This variation is mainly due to higher interest earned from
fixed deposits during the fourth quarter of 2022 and foreign
exchange gains incurred in the same period compared to foreign
exchange losses incurred in the fourth quarter of 2021.
Gain/(Loss) on debt extinguishment, net for the
fourth quarter of 2022 included an amount of $5.8 million which
resulted from the write-off of the cumulative gain on the hedging
instrument previously recognized in equity, following the
prepayment of the corresponding loan.
___________________________________
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) |
Fourth quarter2022 |
|
Fourth quarter2021 |
|
Twelve months endedDecember 31, 2022 |
|
Twelve months endedDecember 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Voyage revenues |
$ |
294,803 |
|
|
$ |
499,857 |
|
|
$ |
1,437,156 |
|
|
$ |
1,427,423 |
|
Total revenues |
|
294,803 |
|
|
|
499,857 |
|
|
|
1,437,156 |
|
|
|
1,427,423 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Voyage
expenses |
|
(74,439 |
) |
|
|
(72,215 |
) |
|
|
(286,534 |
) |
|
|
(226,111 |
) |
Charter-in
hire expense |
|
(3,227 |
) |
|
|
(2,366 |
) |
|
|
(21,020 |
) |
|
|
(14,565 |
) |
Vessel
operating expenses |
|
(52,629 |
) |
|
|
(54,211 |
) |
|
|
(228,616 |
) |
|
|
(208,661 |
) |
Dry docking
expenses |
|
(18,705 |
) |
|
|
(6,991 |
) |
|
|
(47,718 |
) |
|
|
(30,986 |
) |
Depreciation |
|
(39,709 |
) |
|
|
(39,193 |
) |
|
|
(156,733 |
) |
|
|
(152,640 |
) |
Management
fees |
|
(4,407 |
) |
|
|
(4,941 |
) |
|
|
(19,071 |
) |
|
|
(19,489 |
) |
Loss on bad
debt |
|
(677 |
) |
|
|
(240 |
) |
|
|
(677 |
) |
|
|
(629 |
) |
General and
administrative expenses |
|
(12,547 |
) |
|
|
(9,304 |
) |
|
|
(56,826 |
) |
|
|
(39,500 |
) |
Gain/(Loss)
on forward freight agreements and bunker swaps |
|
2,166 |
|
|
|
2,780 |
|
|
|
(1,451 |
) |
|
|
3,564 |
|
Other
operational loss |
|
(1,318 |
) |
|
|
(144 |
) |
|
|
(2,380 |
) |
|
|
(2,214 |
) |
Other
operational gain |
|
1,903 |
|
|
|
854 |
|
|
|
8,794 |
|
|
|
2,110 |
|
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,102 |
|
Loss on
write-down of inventory |
|
(2,425 |
) |
|
|
- |
|
|
|
(17,326 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Operating income |
|
88,789 |
|
|
|
313,886 |
|
|
|
607,598 |
|
|
|
739,404 |
|
|
|
|
|
|
|
|
|
Interest and
finance costs |
|
(14,822 |
) |
|
|
(12,765 |
) |
|
|
(52,578 |
) |
|
|
(56,036 |
) |
Interest
income and other income/(loss) |
|
6,821 |
|
|
|
(336 |
) |
|
|
7,050 |
|
|
|
315 |
|
Gain/(Loss)
on debt extinguishment, net |
|
5,207 |
|
|
|
(609 |
) |
|
|
4,064 |
|
|
|
(3,257 |
) |
Total other expenses, net |
|
(2,794 |
) |
|
|
(13,710 |
) |
|
|
(41,464 |
) |
|
|
(58,978 |
) |
|
|
|
|
|
|
|
|
Income/(Loss) before equity in investee |
|
85,995 |
|
|
|
300,176 |
|
|
|
566,134 |
|
|
|
680,426 |
|
|
|
|
|
|
|
|
|
Equity in
income/(loss) of investee |
|
1 |
|
|
|
(25 |
) |
|
|
109 |
|
|
|
120 |
|
|
|
|
|
|
|
|
|
Income/(Loss) before taxes |
$ |
85,996 |
|
|
$ |
300,151 |
|
|
$ |
566,243 |
|
|
$ |
680,546 |
|
|
|
|
|
|
|
|
|
Income
taxes |
|
(200 |
) |
|
|
- |
|
|
|
(244 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
Net
income/(loss) |
$ |
85,796 |
|
|
$ |
300,151 |
|
|
$ |
565,999 |
|
|
$ |
680,530 |
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share, basic |
$ |
0.84 |
|
|
$ |
2.94 |
|
|
$ |
5.54 |
|
|
$ |
6.73 |
|
Earnings/(loss) per share, diluted |
$ |
0.84 |
|
|
$ |
2.93 |
|
|
$ |
5.52 |
|
|
$ |
6.71 |
|
Weighted
average number of shares outstanding, basic |
|
102,468,182 |
|
|
|
102,045,703 |
|
|
|
102,153,255 |
|
|
|
101,183,829 |
|
Weighted
average number of shares outstanding, diluted |
|
102,724,888 |
|
|
|
102,285,188 |
|
|
|
102,536,966 |
|
|
|
101,479,072 |
|
Unaudited Consolidated Condensed Balance Sheet
Data
|
(Expressed in thousands of U.S. dollars) |
|
ASSETS |
December 31, 2022 |
|
December 31, 2021 |
Cash and cash equivalents and resticted cash, current |
$ |
284,323 |
|
|
471,250 |
Other
current assets |
|
217,769 |
|
|
211,674 |
TOTAL CURRENT ASSETS |
|
502,092 |
|
|
682,924 |
|
|
|
|
Vessels and
other fixed assets, net |
|
2,881,551 |
|
|
3,013,038 |
Restricted
cash, non current |
|
2,021 |
|
|
2,021 |
Other
non-current assets |
|
47,960 |
|
|
56,736 |
TOTAL ASSETS |
$ |
3,433,624 |
|
$ |
3,754,719 |
|
|
|
|
Current
portion of long-term bank loans and lease financing |
$ |
181,947 |
|
$ |
207,135 |
Other
current liabilities |
|
100,608 |
|
|
83,661 |
TOTAL CURRENT LIABILITIES |
|
282,555 |
|
|
290,796 |
|
|
|
|
Long-term
bank loans and lease financing non-current (net of unamortized
deferred finance fees of $11,694 and $16,171, respectively) |
|
1,103,233 |
|
|
1,334,593 |
Other
non-current liabilities |
|
28,494 |
|
|
49,312 |
TOTAL LIABILITIES |
$ |
1,414,282 |
|
$ |
1,674,701 |
|
|
|
|
SHAREHOLDERS' EQUITY |
|
2,019,342 |
|
|
2,080,018 |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
3,433,624 |
|
$ |
3,754,719 |
|
|
|
|
Unaudited Consolidated Condensed Cash Flow
Data
|
|
|
|
(Expressed
in thousands of U.S. dollars) |
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by / (used in) operating
activities |
$ |
769,898 |
|
|
$ |
767,071 |
|
|
|
|
|
Acquisition of vessels and other fixed assets |
|
(437 |
) |
|
|
(97,933 |
) |
Capital expenditures for vessel modifications/upgrades |
|
(24,966 |
) |
|
|
(32,214 |
) |
Insurance Proceeds |
|
4,531 |
|
|
|
8,884 |
|
Net
cash provided by / (used in) investing activities |
|
(20,872 |
) |
|
|
(121,263 |
) |
|
|
|
|
Proceeds from vessels' new debt |
|
315,000 |
|
|
|
470,650 |
|
Scheduled vessels' debt repayment |
|
(201,347 |
) |
|
|
(192,107 |
) |
Debt prepayment due to refinancing |
|
(374,678 |
) |
|
|
(401,076 |
) |
Financing fees |
|
(5,543 |
) |
|
|
(4,584 |
) |
Offering expenses |
|
(412 |
) |
|
|
(433 |
) |
Shares issued |
|
19,792 |
|
|
|
- |
|
Repurchase of common shares |
|
(20,068 |
) |
|
|
(10,278 |
) |
Dividend payments |
|
(668,697 |
) |
|
|
(230,240 |
) |
Net
cash provided by / (used in) financing activities |
|
(935,953 |
) |
|
|
(368,068 |
) |
|
|
|
|
|
|
|
|
|
$ |
(186,927 |
) |
|
$ |
277,740 |
|
Summary of Selected Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2022 |
|
Fourth quarter 2021 |
|
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
Average number of vessels (1) |
128.0 |
|
128.0 |
|
128.0 |
|
125.4 |
Number of vessels (2) |
128 |
|
128 |
|
128 |
|
128 |
Average age of operational fleet (in years) (3) |
10.9 |
|
9.9 |
|
10.9 |
|
9.9 |
Ownership days (4) |
11,776 |
|
11,776 |
|
46,720 |
|
45,759 |
Available days (5) |
11,048 |
|
11,442 |
|
44,207 |
|
44,059 |
Charter-in days (6) |
196 |
|
107 |
|
913 |
|
571 |
Daily Time Charter Equivalent Rate (7) |
$19,590 |
|
$37,406 |
|
$25,461 |
|
$26,978 |
Daily OPEX per vessel (8) |
$4,469 |
|
$4,604 |
|
$4,893 |
|
$4,560 |
Daily OPEX per vessel (excl. non recurring expenses) (8) |
$4,205 |
|
$4,373 |
|
$4,598 |
|
$4,310 |
Daily Net Cash G&A expenses per vessel (9) |
$977 |
|
$1,042 |
|
$1,000 |
|
$1,050 |
|
|
|
|
|
|
|
|
(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 and 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 years ended December 31, 2022 and
2021 included additional crew expenses related to the increased
number and cost of crew changes performed during the period as a
result of COVID-19 restrictions imposed in 2020 (estimated to be
$9.6 million and $8.4 million, respectively) while vessel operating
expenses for the year ended December 31, 2021 included pre-delivery
and pre-joining expenses of $3.1 million (nil in 2022). Lastly,
during the year ended December 31, 2022 we incurred $4.2 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) |
Fourth quarter 2022 |
|
Fourth quarter 2021 |
|
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
Net cash provided by/(used in) operating activities |
$ |
116,336 |
|
|
$ |
296,372 |
|
|
$ |
769,898 |
|
|
$ |
767,071 |
|
Net decrease
/ (increase) in current assets |
|
(4,046 |
) |
|
|
33,969 |
|
|
|
7,714 |
|
|
|
98,720 |
|
Net increase
/ (decrease) in operating liabilities, excluding current
portion of long term debt |
|
15,052 |
|
|
|
12,943 |
|
|
|
(9,627 |
) |
|
|
(14,998 |
) |
Gain/(Loss)
on debt extinguishment, net |
|
5,207 |
|
|
|
(609 |
) |
|
|
4,064 |
|
|
|
(3,257 |
) |
Share –
based compensation |
|
(5,093 |
) |
|
|
(1,663 |
) |
|
|
(28,481 |
) |
|
|
(10,335 |
) |
Amortization
of deferred finance charges |
|
(1,118 |
) |
|
|
(1,455 |
) |
|
|
(4,918 |
) |
|
|
(6,511 |
) |
Unrealized
gain / (loss) on forward freight agreements and bunker swaps |
|
2,875 |
|
|
|
52 |
|
|
|
2,583 |
|
|
|
1,508 |
|
Total other
expenses, net |
|
2,794 |
|
|
|
13,710 |
|
|
|
41,464 |
|
|
|
58,978 |
|
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,102 |
|
Gain/(Loss)
on hull and machinery claims |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
192 |
|
Loss on bad
debt |
|
(677 |
) |
|
|
(240 |
) |
|
|
(677 |
) |
|
|
(629 |
) |
Income
tax |
|
200 |
|
|
|
- |
|
|
|
244 |
|
|
|
16 |
|
Write-off of
current assets |
|
(607 |
) |
|
|
- |
|
|
|
(607 |
) |
|
|
- |
|
Loss on
write-down of inventory |
|
(2,425 |
) |
|
|
- |
|
|
|
(17,326 |
) |
|
|
- |
|
Equity in
income/(loss) of investee |
|
1 |
|
|
|
(25 |
) |
|
|
109 |
|
|
|
120 |
|
EBITDA |
$ |
128,499 |
|
|
$ |
353,054 |
|
|
$ |
764,440 |
|
|
$ |
891,977 |
|
|
|
|
|
|
|
|
|
Equity in
(income)/loss of investee |
|
(1 |
) |
|
|
25 |
|
|
|
(109 |
) |
|
|
(120 |
) |
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,102 |
) |
Unrealized
(gain)/loss on forward freight agreements and bunker swaps |
|
(2,875 |
) |
|
|
(52 |
) |
|
|
(2,583 |
) |
|
|
(1,508 |
) |
Loss on
write-down of inventory |
|
2,425 |
|
|
|
- |
|
|
|
17,326 |
|
|
|
- |
|
Share-based
compensation |
|
5,093 |
|
|
|
1,663 |
|
|
|
28,481 |
|
|
|
10,335 |
|
Loss on bad
debt |
|
677 |
|
|
|
240 |
|
|
|
677 |
|
|
|
629 |
|
Other
non-cash charges |
|
159 |
|
|
|
198 |
|
|
|
(225 |
) |
|
|
10 |
|
Write-off of
current assets |
|
607 |
|
|
|
- |
|
|
|
607 |
|
|
|
- |
|
Adjusted EBITDA |
$ |
134,584 |
|
|
$ |
355,128 |
|
|
$ |
808,614 |
|
|
$ |
900,221 |
|
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) |
Fourth quarter 2022 |
|
Fourth quarter 2021 |
|
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
Net income / (loss) |
$ |
85,796 |
|
|
$ |
300,151 |
|
|
$ |
565,999 |
|
|
$ |
680,530 |
|
Amortization
of fair value of above/below market acquired time charter
agreements, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(187 |
) |
Loss on bad
debt |
|
677 |
|
|
|
240 |
|
|
|
677 |
|
|
|
629 |
|
Share –
based compensation |
|
5,093 |
|
|
|
1,663 |
|
|
|
28,481 |
|
|
|
10,335 |
|
Other
non-cash charges |
|
159 |
|
|
|
198 |
|
|
|
(225 |
) |
|
|
10 |
|
Unrealized
(gain) / loss on forward freight agreements and bunker swaps |
|
(2,875 |
) |
|
|
(52 |
) |
|
|
(2,583 |
) |
|
|
(1,508 |
) |
Loss on
write-down of inventory |
|
2,425 |
|
|
|
- |
|
|
|
17,326 |
|
|
|
- |
|
Write-off of
current assets |
|
607 |
|
|
|
- |
|
|
|
607 |
|
|
|
- |
|
(Gain)/Loss
on debt extinguishment (non-cash) |
|
580 |
|
|
|
221 |
|
|
|
(1,372 |
) |
|
|
3,177 |
|
Equity in
(income)/loss of investee |
|
(1 |
) |
|
|
25 |
|
|
|
(109 |
) |
|
|
(120 |
) |
Gain on time
charter agreement termination |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,102 |
) |
Adjusted Net income / (loss) |
$ |
92,461 |
|
|
$ |
302,446 |
|
|
$ |
608,801 |
|
|
$ |
691,764 |
|
Weighted
average number of shares outstanding, basic |
|
102,468,182 |
|
|
|
102,045,703 |
|
|
|
102,153,255 |
|
|
|
101,183,829 |
|
Weighted
average number of shares outstanding, diluted |
|
102,724,888 |
|
|
|
102,285,188 |
|
|
|
102,536,966 |
|
|
|
101,479,072 |
|
Adjusted Basic Earnings / (Loss) Per Share |
$ |
0.90 |
|
|
$ |
2.96 |
|
|
$ |
5.96 |
|
|
$ |
6.84 |
|
Adjusted Diluted Earnings / (Loss) Per Share |
$ |
0.90 |
|
|
$ |
2.96 |
|
|
$ |
5.94 |
|
|
$ |
6.82 |
|
|
|
|
|
|
|
|
|
Voyage Revenues to Daily Time Charter Equivalent (“TCE”)
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands of U.S. Dollars, except for TCE rates) |
Fourth quarter 2022 |
|
Fourth quarter 2021 |
|
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
Voyage revenues |
$ |
294,803 |
|
|
$ |
499,857 |
|
|
$ |
1,437,156 |
|
|
$ |
1,427,423 |
|
Less: |
|
|
|
|
|
|
|
Voyage
expenses |
|
(74,439 |
) |
|
|
(72,215 |
) |
|
|
(286,534 |
) |
|
|
(226,111 |
) |
Charter-in
hire expense |
|
(3,227 |
) |
|
|
(2,366 |
) |
|
|
(21,020 |
) |
|
|
(14,565 |
) |
Realized
gain/(loss) on FFAs/bunker swaps |
|
(709 |
) |
|
|
2,728 |
|
|
|
(4,034 |
) |
|
|
2,056 |
|
Amortization
of fair value of below/above market acquired time charter
agreements, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(187 |
) |
Time
Charter equivalent revenues |
$ |
216,428 |
|
|
$ |
428,004 |
|
|
$ |
1,125,568 |
|
|
$ |
1,188,616 |
|
|
|
|
|
|
|
|
|
Available
days |
|
11,048 |
|
|
|
11,442 |
|
|
|
44,207 |
|
|
|
44,059 |
|
Daily Time Charter Equivalent Rate ("TCE") |
$ |
19,590 |
|
|
$ |
37,406 |
|
|
$ |
25,461 |
|
|
$ |
26,978 |
|
Daily Net Cash G&A expenses per vessel
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands of U.S. Dollars, except for daily rates) |
Fourth quarter 2022 |
|
Fourth quarter 2021 |
|
Twelve months ended December 31, 2022 |
|
Twelve months ended December 31, 2021 |
General and administrative expenses |
$ |
12,547 |
|
|
$ |
9,304 |
|
|
$ |
56,826 |
|
|
$ |
39,500 |
|
Plus: |
|
|
|
|
|
|
|
Management
fees |
|
4,407 |
|
|
|
4,941 |
|
|
|
19,071 |
|
|
|
19,489 |
|
Less: |
|
|
|
|
|
|
|
Share –
based compensation |
|
(5,093 |
) |
|
|
(1,663 |
) |
|
|
(28,481 |
) |
|
|
(10,335 |
) |
Other
non-cash charges |
|
(159 |
) |
|
|
(198 |
) |
|
|
225 |
|
|
|
(10 |
) |
Net
Cash G&A expenses |
$ |
11,702 |
|
|
$ |
12,384 |
|
|
$ |
47,641 |
|
|
$ |
48,644 |
|
|
|
|
|
|
|
|
|
Ownership
days |
|
11,776 |
|
|
|
11,776 |
|
|
|
46,720 |
|
|
|
45,759 |
|
Charter-in
days |
|
196 |
|
|
|
107 |
|
|
|
913 |
|
|
|
571 |
|
Daily Net Cash G&A expenses per vessel |
$ |
977 |
|
|
$ |
1,042 |
|
|
$ |
1,000 |
|
|
$ |
1,050 |
|
Conference Call details:Our management team
will host a conference call to discuss our financial results on
Friday, February 17, 2023 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 13736232. 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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