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Star Bulk Carriers Corp. Reports Financial Results for the Second Quarter and First Half of 2018

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ATHENS, Greece, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ:SBLK, Oslo: SBLK-R)), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the second quarter and the first half of 2018.

Financial Highlights

(Expressed in thousands of U.S. dollars,
except for daily rates and per share data)
Second quarter 2018 Second quarter 2017 Six months ended June 30, 2018 Six months ended June 30, 2017
         
Voyage Revenues $ 132,604   $ 78,605   $ 253,661   $ 143,471  
Net income/(loss) $ 10,728   $ (10,279 ) $ 20,628   $ (26,229 )
EBITDA (1) $ 49,388   $ 22,665   $ 93,837   $ 37,039  
Adjusted EBITDA (1) $ 52,028   $ 25,731   $ 98,450   $ 43,806  
Adjusted Net income / (loss)  (2) $ 13,377   $ (7,643 ) $ 25,236   $ (20,515 )
Earnings / (loss) per share basic $ 0.17   $ (0.16 ) $ 0.32   $ (0.42 )
Earnings / (loss) per share diluted $ 0.17   $ (0.16 ) $ 0.32   $ (0.42 )
Adjusted earnings / (loss) per share basic and diluted (2) $ 0.21   $ (0.12 ) $ 0.39   $ (0.33 )
Average Number of Vessels     73.5       69.5       72.8       68.4  
TCE Revenues (3) $ 89,991   $ 61,074   $   171,588   $   110,086  
Daily Time Charter Equivalent Rate ("TCE") (3) $ 13,567   $ 9,747   $ 13,082   $ 8,968  
Fleet utilization   99.3 %   99.1 %   99.6 %   99.1 %
Average daily OPEX per vessel (excluding pre-delivery expenses) (4) $ 3,996   $ 3,880   $ 3,993   $ 3,914  
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (5) $ 1,072   $ 1,101   $ 1,086   $ 1,109  
                         
  1. EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the table at the back of this release for a reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by / (Used in) Operating Activities, which is the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). To derive Adjusted EBITDA from EBITDA, we exclude non-cash gains / (losses).
  2. Adjusted Net income / (loss) and Adjusted earnings / (loss) per share basic and diluted are non-GAAP measures. Please see the table at the back 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.
  3. Daily Time Charter Equivalent Rate ("TCE") and TCE Revenues are non-GAAP measures. Please see the table at the back 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.
  4. Average daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days.
  5. Average daily Net Cash G&A expenses per vessel is calculated by (1) deducting the Management fee Income 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.

Petros Pappas, Chief Executive Officer of Star Bulk, commented:

"We are pleased to report the third consecutive profitable quarter, where we achieved $90.0 million in TCE Revenues, $52.0 million in Adjusted EBITDA and $13.4 million in Adjusted Net Income for Q2 2018. Our average TCE for the quarter continued to increase quarter on quarter to $13,567/ day per vessel, while daily Opex and Net Cash G&A expenses per vessel were held at $3,996/day and $1,072/day respectively. As of today, we have fixed 60% of Q3 2018 days at average TCE rates of $13,882 / day.

We are happy to have closed all three of our recently announced acquisitions adding 34 high quality vessels with an average age of 5.2 years and average size of 119,105 dwt. Our Board of Directors has been enhanced with the addition of Raffaele Zagari and Arne Blystad, while Herman Billung has joined our management team.

We are optimistic about market fundamentals of the industry given the strengthening rate and asset value environment. Dry bulk supply is presently expanding at the lowest pace of the last decade while demand is supported by healthy ton-mile growth due to continued Chinese demand for higher quality raw materials. Our Company is positioning itself to take advantage of a firming market and deliver value to its shareholders."

Recent Developments

Acquisitions

  • On June 28, 2018, we closed the previously announced acquisition of three newbuilding Newcastlemax dry bulk vessels ("OCC Vessel Purchase Transaction"), from Oceanbulk Container Carriers LLC ("OCC"), an entity affiliated with Oaktree Capital Management, L.P. ("Oaktree") and with family members of our CEO, Mr. Petros Pappas ("Pappas Shareholders"). The final consideration for the OCC Vessel Purchase Transaction was 3.3 million of our common shares. The three vessels are being constructed at Shanghai Waigaoqiao Shipbuilding Co. ("SWS"), with expected delivery dates in the first half of 2019. CSSC (Hong Kong) Shipping Company Limited has agreed to provide $104.4 million to finance the remaining $103.8 million capital expenditure of the three vessels via a ten-year capital lease.
  • On July 6, 2018 we closed the previously announced acquisition of 15 operating dry bulk vessels (the "Songa Vessels") from Songa Bulk ASA ("Songa") for an aggregate of 13.7 million of our common shares (the "Songa Consideration Shares") and $145.0 million in cash (the "Songa Vessel Purchase Transaction"). The cash portion of the consideration was financed through proceeds of a new five-year capital lease of $180.0 million with China Merchants Bank Leasing, thus offering approximately $35.0 million of additional liquidity. Following the closing of the Songa Vessel Purchase Transaction, Mr. Arne Blystad was appointed to our Board of Directors as Class C Director and Mr. Herman Billung joined our management team as Senior Vice President. As part of this transaction, we commenced trading on the Oslo Stock Exchange under the ticker "SBLK R" on July 16, 2018. The Songa Consideration Shares will be restricted from trading in the U.S. for a period of six months following the distribution of the Songa Consideration Shares to the shareholders of Songa, unless they are sold pursuant to a transaction exempt from, or not subject to, registration under the Securities Act of 1933, as amended (the "Act"). The offer and sale of the Songa Consideration Shares will not be registered under the Act, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act.
  • On August 3, 2018, we closed the previously announced acquisition of 16 operating dry bulk vessels (the "Augustea Vessels") from entities affiliated with Augustea Atlantica SpA and York Capital Management in an all-share transaction (the "Augustea Vessel Purchase Transaction"). An entity affiliated with family members of our CEO, Mr. Petros Pappas, is a passive minority investor in three of the Augustea Vessels. Following the completion of this transaction, Mr. Raffaele Zagari was appointed to our Board of Directors. The final consideration for the Augustea Vessel Purchase Transaction was 10.3 million common shares of the Company. As part of this transaction, we assumed debt of approximately $309.0 million.

Following the consummation of all three transactions above, we have 91,521,052 common shares outstanding as of the date of this press release.

Financing Activities

  • In July, 2018, we entered into a committed term-sheet with HSBC Bank plc for a loan of $80.0 million (or the "HSBC $80,000 Facility"), to refinance the full amounts outstanding under the HSBC $86,600 Facility and the HSH $64,500 Facility (each as defined in the 2017 20-F). The loan will be secured by a first priority mortgage on the vessels previously pledged under the two refinanced facilities. We expect to draw down the loan amount of $80.0 million in the third quarter of 2018. The loan will be repayable in 20 equal quarterly installments of $2.4 million and a balloon payment along with the last installment in an amount of $32.4 million. The completion of the transaction is subject to the execution of customary definitive documentation.
  • On July 27, 2018, we paid an aggregate amount of $22.7 million in total to all parties under our Supplemental Agreements (as defined in the 2017 20-F) pursuant to the cash sweep mechanism in the Supplemental Agreements.

Capital Markets' Activities

  • On June 26, 2018, we announced a secondary public offering of 5,000,000 of our common shares held by a fund affiliated with Oaktree Capital Management, L.P. The offering closed on June 29, 2018 at a price of $13.10 per share. The Company did not sell any common shares and did not receive any proceeds as a result of this offering.

Employment update

As of today, we have fixed employment for approximately 60% of the days in Q3 2018 at average TCE rates of $13,882 per day.

More specifically:

Capesize Vessels: approximately 46% of Q3 2018 days at $19,848 per day.

Panamax Vessels: approximately 64% of Q3 2018 days at $12,252 per day.

Supramax Vessels: approximately 70% of Q3 2018 days at $11,689 per day.

Existing On the Water Fleet (As of August 7, 2018)

  Vessel Name   Vessel Type   Capacity
(dwt.)
  Year Built    Date Delivered to Star Bulk
1 Goliath   Newcastlemax   209,537   2015   July-15
2 Gargantua   Newcastlemax   209,529   2015   April-15
3 Star Poseidon   Newcastlemax   209,475   2016   February-16
4 Maharaj   Newcastlemax   209,472   2015   July-15
5 ABOY Sienna (1)   Newcastlemax   208,000   2017   August-18
6 ABOY Laetitia (1)   Newcastlemax   208,000   2017   August-18
7 ABOY Karlie (1)   Newcastlemax   208,000   2016   August-18
8 Star Leo (1)   Newcastlemax   207,939   2018   May-18
9 Star Ariadne (1)   Newcastlemax   207,812   2017   March-17
10 Star Virgo (1)   Newcastlemax   207,810   2017   March-17
11 Star Libra (1)   Newcastlemax   207,765   2016   June-16
12 Star Marisa (1)   Newcastlemax   207,709   2016   March-16
13 Star Eleni (1)   Newcastlemax   207,555   2018   January-18
14 Star Magnanimus (1)   Newcastlemax   207,490   2018   March-18
15 Leviathan   Capesize   182,511   2014   September-14
16 Peloreus   Capesize   182,496   2014   July-14
17 Songa Claudine (1)   Capesize   181,258   2011   July-18
18 Songa Opus (1)   Capesize   180,706   2010   July-18
19 Star Martha   Capesize   180,274   2010   October-14
20 Star Pauline   Capesize   180,274   2008   December-14
21 Pantagruel   Capesize   180,181   2004   July-14
22 Star Borealis   Capesize   179,678   2011   September-11
23 Star Polaris   Capesize   179,600   2011   November-11
24 Songa Mountain (1)   Capesize   179,150   2009   July-18
25 ABY Scarlett   Capesize   178,000   2014   August-18
26 Star Angie   Capesize   177,931   2007   October-14
27 Big Fish   Capesize   177,662   2004   July-14
28 Kymopolia   Capesize   176,990   2006   July-14
29 Star Triumph   Capesize   176,343   2004   December-17
30 ABYO Audrey   Capesize   175,125   2011   August-18
31 Big Bang   Capesize   174,109   2007   July-14
32 Star Aurora   Capesize   171,199   2000   September-10
33 Paola   Mini-Capesize   115,259   2011   August-18
34 ABML Eva   Mini-Capesize   106,659   2011   August-18
35 Amami   Post Panamax   98,681   2011   July-14
36 Madredeus   Post Panamax   98,681   2011   July-14
37 Star Sirius   Post Panamax   98,681   2011   March-14
38 Star Vega   Post Panamax   98,681   2011   February-14
39 Piera   Post-Panamax   91,951   2010   August-18
40 Maria Laura Prima   Post Panamax   91,945   2010   August-18
41 Aphrodite   Post Panamax   91,827   2011   August-18
42 Songa Hirose (1)   Kamsarmax   83,494   2011   July-18
43 ABY Jeannette   Kamsarmax   83,000   2014   August-18
44 Star Angelina   Kamsarmax   82,981   2006   December-14
45 Star Gwyneth   Kamsarmax   82,790   2006   December-14
46 Star Kamila   Kamsarmax   82,769   2005   September-14
47 Songa Genesis (1)   Kamsarmax   82,705   2010   July-18
48 Songa Maru (1)   Kamsarmax   82,687   2008   July-18
49 Songa Grain (1)   Kamsarmax   82,672   2008   July-18
50 Pendulum   Kamsarmax   82,619   2006   July-14
51 Star Maria   Kamsarmax   82,598   2007   November-14
52 Star Markella   Kamsarmax   82,594   2007   September-14
53 Star Danai   Kamsarmax   82,574   2006   October-14
54 Star Georgia   Kamsarmax   82,298   2006   October-14
55 Star Sophia   Kamsarmax   82,269   2007   October-14
56 Star Mariella   Kamsarmax   82,266   2006   September-14
57 Star Moira   Kamsarmax   82,257   2006   November-14
58 Star Nina   Kamsarmax   82,224   2006   January-15
59 Star Renee   Kamsarmax   82,221   2006   December-14
60 Star Nasia   Kamsarmax   82,220   2006   August-14
61 Star Laura   Kamsarmax   82,209   2006   December-14
62 Star Jennifer   Kamsarmax   82,209   2006   April-15
63 Star Helena   Kamsarmax   82,187   2006   December-14
64 Songa Moon (1)   Kamsarmax   82,158   2012   July-18
65 Songa Hadong (1)   Kamsarmax   82,158   2012   July-18
66 ABY Asia (1)   Kamsarmax   82,000   2017   August-18
67 Songa Devi (1)   Kamsarmax   81,918   2014   July-18
68 Star Charis   Kamsarmax   81,711   2013   March-17
69 Star Suzanna   Kamsarmax   81,711   2013   May-17
70 Mercurial Virgo   Kamsarmax   81,545   2013   July-14
71 Songa Delmar (1)   Kamsarmax   81,501   2011   July-18
72 Songa Sky (1)   Kamsarmax   81,466   2010   July-18
73 Lydia Cafiero   Kamsarmax   81,187   2013   August-18
74 Nicole   Kamsarmax   81,120   2013   August-18
75 ABY Virginia   Kamsarmax   81,000   2015   August-18
76 Songa Flama (1)   Kamsarmax   80,448   2011   July-18
77 Star Iris   Panamax   76,466   2004   September-14
78 Star Emily   Panamax   76,417   2004   September-14
79 Idee Fixe (1)   Ultramax   63,458   2015   March-15
80 Roberta (1)   Ultramax   63,426   2015   March-15
81 Laura (1)   Ultramax   63,399   2015   April-15
82 Kaley (1)   Ultramax   63,283   2015   June-15
83 Kennadi   Ultramax   63,262   2016   January-16
84 Mackenzie   Ultramax   63,226   2016   March-16
85 Songa Wave (1)   Ultramax   61,491   2017   July-18
86 Star Challenger   Ultramax   61,462   2012   December-13
87 Star Fighter   Ultramax   61,455   2013   December-13
88 Star Lutas   Ultramax   61,347   2016   January-16
89 Honey Badger   Ultramax   61,320   2015   February-15
90 Wolverine   Ultramax   61,292   2015   February-15
91 Star Antares   Ultramax   61,258   2015   October-15
92 Star Acquarius   Ultramax   60,916   2015   July-15
93 Star Pisces   Ultramax   60,916   2015   August-15
94 ABY Monica   Ultramax   60,000   2015   August-18
95 Songa Glory (1)   Supramax   58,680   2012   July-18
96 Diva   Supramax   56,582   2011   July-17
97 Strange Attractor   Supramax   55,742   2006   July-14
98 Star Omicron   Supramax   53,489   2005   April-08
99 Star Gamma   Supramax   53,098   2002   January-08
100 Star Zeta   Supramax   52,994   2003   January-08
101 Star Delta   Supramax   52,434   2000   January-08
102 Star Theta   Supramax   52,425   2003   December-07
103 Star Epsilon   Supramax   52,402   2001   December-07
104 Star Cosmo   Supramax   52,247   2005   July-08
105 Star Kappa   Supramax   52,055   2001   December-07
      Total dwt:   11,634,253        
                   

Newbuilding Vessels

    Vessel Name   Vessel Type   Capacity
(dwt.)
  Shipyard   Expected delivery date
1   HN 1388 (1)   Newcastlemax   208,000   SWS   Jan-19
2   HN 1389 (1)   Newcastlemax   208,000   SWS   Feb-19
3   HN 1390 (1)   Newcastlemax   208,000   SWS   Apr-19
            624,000        
                     
  1. Subject to a bareboat charter with purchase obligation at the expiration of the bareboat term.

Second Quarter 2018 and 2017 Results (*)

(*) Amounts relating to variations in period–on–period comparisons shown in this section are derived from the actual numbers in our books and records.

For the second quarter of 2018, time charter equivalent revenues ("TCE Revenues") (total voyage revenues net of voyage expenses and charter-in hire expense) excluding Star Logistics (as further discussed in footnote 8 under the heading "Summary of Selected Data") were $90.0 million, compared to $61.1 million for the second quarter of 2017. Total revenues for the second quarter of 2018 increased to $132.6 million from $78.6 million in the second quarter of 2017. This increase was primarily attributable to the significant rise in charter hire rates, which led to a TCE rate of $13,567 for the second quarter of 2018 compared to a TCE rate of $9,747 for the second quarter of 2017, representing a 39% increase. TCE Revenues also increased as a result of an increase in the average number of vessels in our fleet to 73.5 in the second quarter of 2018, up from 69.5 in the second quarter of 2017, which caused an increase in Available days for our fleet.

Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has only prospective application with no effect to prior year figures, our TCE rate for the second quarter of 2018 would have been $13,598.

For the second quarter of 2018, operating income was $27.3 million, which includes depreciation of $22.1 million. Operating income of $2.0 million for the second quarter of 2017 included depreciation of $20.7 million. Depreciation increased during the second quarter of 2018 due to a higher average number of vessels in our fleet.

Net income for the second quarter of 2018 was $10.7 million, or $0.17 earnings per share, basic and diluted, based on 64,233,289 weighted average basic shares and 64,633,668 weighted average diluted shares, respectively. Net loss for the second quarter of 2017 was $10.3 million, or $0.16 loss per share, basic and diluted, based on 63,336,657 weighted average basic and diluted shares.

Net income for the second quarter of 2018 mainly included the following non-cash items, other than depreciation expense:

  • Stock-based compensation expense of $3.9 million, or $0.06 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees; and
  • Unrealized gain on forward freight agreements and bunker swaps of $1.3 million, or $0.02 per share, basic and diluted.

Net loss for the second quarter of 2017, mainly included the following non-cash items, other than depreciation expense:

  • Stock based compensation expense of $3.7 million, or $0.06 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees;
  • Unrealized gain on forward freight agreements of $0.7 million, or $0.01 per share, basic and diluted; and
  • Unrealized gain on interest rate swaps of $0.4 million or $0.006 per share, basic and diluted.

Adjusted net income for the second quarter of 2018, which excludes major non-cash items other than depreciation expense, was $13.4 million, or $0.21 earnings per share, basic and diluted, compared to adjusted net loss of $7.6 million, or $0.12 loss per share, basic and diluted, for the second quarter of 2017. A reconciliation of Net income / (loss) to Adjusted Net income/ (loss) and Adjusted earnings / (loss) per share basic and diluted is set forth below in the financial tables contained in this release.

Adjusted EBITDA for the second quarter of 2018 and 2017, which excludes all non-cash items, was $52.0 million and $25.7 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth below in the financial tables contained in this release.

For the second quarter of 2018 and 2017, vessel operating expenses were $27.4 million and $25.1 million, respectively. This increase was primarily due to the increase in the average number of vessels from 69.5 to 73.5. Vessel operating expenses for the second quarter of 2018 include pre-delivery and pre-joining expenses of $0.7 million incurred mainly in connection with the delivery of the Star Magnanimus and Star Leo, which were delivered in March and May 2018, respectively. For the second quarter of 2017 operating expenses included pre-delivery and pre-joining expenses of $0.6 million. Excluding these expenses, our average daily operating expenses per vessel for the second quarter of 2018 were $3,996, vs. $3,880 for the same period in 2017.

Dry docking expenses for the second quarters of 2018 and 2017 were $2.1 million and $1.9 million, respectively. During the second quarter of 2018, two of our vessels underwent their periodic dry docking surveys, while during the second quarter of 2017, three of our vessels underwent their periodic dry docking surveys, one of which had started during the first quarter of 2017.

General and administrative expenses for the second quarters of 2018 and 2017 were $10.4 million and $9.3 million, respectively. The formation of our new subsidiary, Star Logistics, and a higher EUR/USD exchange rate during the second quarter of 2018 compared to the corresponding period in 2017 resulted in higher wage expenses, and thus had a negative effect on our general and administrative expenses. Additionally, general and administrative expenses for the second quarter of 2018 include stock-based compensation expense of $3.9 million. During the same quarter of 2017, general and administrative expenses included stock-based compensation expense of $3.7 million and legal fees of $0.4 million in connection with the restructuring of our indebtedness. Excluding these costs, our average daily net cash general and administrative expenses per vessel (including management fees) for the second quarter of 2018 were reduced to $1,072 from $1,101, during the second quarter of 2017.

Charter-in hire expense for the second quarters of 2018 and 2017 was $24.3 million and $0.9 million, respectively. The increase in charter-in hire expense was due to an increase in charter-in days from 91 in the second quarter of 2017, attributable to charter-in of the vessel Astakos, to 1,157 in the second quarter of 2018, attributable to the activities of our new subsidiary Star Logistics, which was created in the fourth quarter of 2017 to connect the origination and the destination of dry bulk commodities.

Interest and finance costs net of interest and other income/ (loss) for the second quarters of 2018 and 2017 were $16.6 million and $12.0 million, respectively. The increase is attributable to the increase in (i) LIBOR between the corresponding periods, (ii) the weighted average balance of our outstanding indebtedness of $1,063.4  million during the second quarter of 2018 compared to $1,038.4 million for the same period in 2017 and (iii) the negative effect of exchange rates on our time deposits held in Euros due to unfavorable movement in EUR/USD exchange rates during the second quarter of 2018 compared to the corresponding period in 2017, partially offset by higher interest income earned due to higher outstanding cash balances held in time deposits during the respective periods.

First Half 2018 and 2017 Results (*)

(*) Amounts relating to variations in period–on–period comparisons shown in this section are derived from the actual numbers in our books and records.

For the first half of 2018, time charter equivalent revenues ("TCE Revenues") (total voyage revenues net of voyage expenses and charter-in hire expense) excluding Star Logistics (as further discussed in footnote 8 under the heading "Summary of Selected Data") were $171.6 million, compared to $110.1 million for the first half of 2017. Total revenues for the first half of 2018 increased to $253.7 million from $143.5 million in the corresponding period in 2017. This increase was primarily attributable to the significant rise in charter hire rates, which led to a TCE rate of $13,082 for the first half of 2018 compared to a TCE rate of $8,968 for the first half of 2017, representing a 46% increase. TCE Revenues also increased as a result of an increase in the average number of vessels in our fleet to 72.8 in the first half of 2018, up from 68.4 in the first half of 2017, which caused an increase in Available days for our fleet.

Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has only prospective application with no effect to prior year figures, our TCE rate for the first half of 2018 would have been $13,022.

For the first half of 2018, operating income was $50.5 million, which includes depreciation of $43.2 million. Operating loss of $3.3 million for the first half of 2017 included depreciation of $40.4 million and a net loss on sale of vessels of $0.4 million. Depreciation increased during the first half of 2018 due to a higher average number of vessels in our fleet.

Net income for the first half of 2018 was $20.6 million, or $0.32 earnings per share, basic and diluted, based on 64,170,654 weighted average basic shares and 64,468,860 weighted average diluted shares, respectively. Net loss for the first half of 2017 was $26.2 million, or $0.42 loss per share, basic and diluted, based on 62,188,645 weighted average basic and diluted shares.

Net income for the first half of 2018 mainly included the following non-cash items, other than depreciation expense:

  • Stock-based compensation expense of $5.0 million, or $0.08 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees; and
  • Unrealized gain on forward freight agreements and bunker swaps of $0.3 million, or $0.01 per share, basic and diluted.

Net loss for the first half of 2017, mainly included the following non-cash items, other than depreciation expense:

  • Stock based compensation expense of $6.4 million, or $0.10 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees;
  • Loss on sale of vessel of $0.4 million, or $0.01 per share, basic and diluted, in connection with the sale of Star Eleonora in March 2017;
  • Unrealized gain on interest rate swaps of $1.4 million or $0.02 per share, basic and diluted; and
  • Write-off of unamortized deferred finance charges of $0.4 million or $0.01 per share, basic and diluted, in connection with the cancellation of a previous loan commitment.

Adjusted net income for the first half of 2018, which excludes major non-cash items other than depreciation expense, was $25.2 million, or $0.39 earnings per share, basic and diluted, compared to adjusted net loss of $20.5 million, or $0.33 loss per share, basic and diluted, for the first half of 2017. A reconciliation of Net income / (loss) to Adjusted Net income/ (loss) and Adjusted earnings / (loss) per share basic and diluted is set forth below in the financial tables contained in this release.

Adjusted EBITDA for the first half of 2018 and 2017, which excludes all non-cash items, was $98.5 million and $43.8 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth below in the financial tables contained in this release.

For the first half of 2018 and 2017, vessel operating expenses were $53.7 million and $49.6 million, respectively. This increase was primarily due to the increase in the average number of vessels from 68.4 to 72.8. Vessel operating expenses for the first half of 2018 and 2017 include pre-delivery and pre-joining expenses of $1.1 million in both periods incurred mainly in connection with the delivery of the new vessels in our fleet during each period. Excluding these expenses, our average daily operating expenses per vessel for the first half of 2018 were $3,993, compared to $3,914 in the same period in 2017.

Dry docking expenses for the first half of 2018 and 2017 were $3.3 million and $3.2 million, respectively. During the first half of 2018, two of our vessels underwent their periodic dry docking surveys, while during the first half of 2017, four of our vessels underwent their periodic dry docking surveys, three of which were completed during this period. However, additional dry docking expenses were incurred during the first half of 2018, due to upcoming dry docking surveys in the second half of 2018.

General and administrative expenses for the first half of 2018 and 2017 were $17.7 million and $17.3 million, respectively. The formation of our new subsidiary, Star Logistics, and a higher EUR/USD exchange rate during the first half of 2018 compared to the corresponding period in 2017 resulted in higher wage expenses, and thus had a negative effect on our general and administrative expenses. Additionally, general and administrative expenses for the first half of 2018 include stock-based compensation expense of $5.0 million. During the same period in 2017, general and administrative expenses included stock-based compensation expense of $6.4 million and legal fees of $0.7 million in connection with the restructuring of our indebtedness. Excluding these expenses, our average daily net cash general and administrative expenses per vessel (including management fees) for the first half of 2018 were reduced to $1,086 from $1,109, during the first half 2017.

During the first half of 2017, we recognized other operational gain of $2.5 million resulting from the settlement proceeds of a commercial dispute.

During the first half of 2017, we recognized a net loss of $0.4 million, in connection with the sale of Star Eleonora.

Charter-in hire expense for the first half of 2018 and 2017 was $40.8 million and $1.7 million, respectively. The increase in charter-in hire expense was due to an increase in charter-in days from 181 in the first half of 2017, attributable to charter-in of the vessel Astakos, to 2,085 in the first half of 2018, attributable to the activities of our new subsidiary Star Logistics, which was created in the fourth quarter of 2017 to connect the origination and the destination of dry bulk commodities.

Interest and finance costs net of interest and other income/ (loss) for the first half of 2018 and 2017 were $29.9 million and $22.5 million, respectively. The increase is attributable to the increase in (i) LIBOR between the corresponding periods, (ii) the weighted average balance of our outstanding indebtedness of $1,054.3  million during the first half of 2018 compared to $1,007.5 million for the same period in 2017 and (iii) the negative effect of exchange rates on our time deposits held in Euros due to unfavorable movement in EUR/USD exchange rates during the second quarter of 2018 compared to the corresponding period in 2017, partially offset by higher interest income earned due to higher outstanding cash balances held in time deposits during the respective periods.

Liquidity and Capital Resources
Cash Flows
Net cash provided by operating activities for the first half of 2018 was $61.1 million, whereas net cash provided by operating activities for the first half of 2017 was $20.1 million.

The positive change was due to the significant recovery of the dry bulk market during the first half of 2018, which resulted in a significantly higher TCE rate of $13,082 compared to $8,968 for the first half of 2017 and is also reflected in the increase of Adjusted EBITDA to $98.5 million for the first half of 2018 from $43.8 million for the corresponding period in 2017. This positive effect was partially offset by (i) a net working capital outflow of $6.9 million during the first half of 2018 compared to a net working capital outflow of $1.7 million for the first half of 2017 and (ii) by higher net interest expense for the first half 2018 compared to the corresponding period in 2017.

Net cash used in investing activities for the first half of 2018 and 2017 was $115.6 million and $109.0 million, respectively.

For the first half of 2018, net cash used in investing activities mainly consisted of $115.9 million paid for advances and other capitalized expenses for our newbuilding and newly delivered vessels delivered during the period.

For the first half of 2017, net cash used in investing activities consisted of:

  • $116.7 million paid for advances and other capitalized expenses for our newbuilding and newly delivered vessels;

offset partially by:

  • $7.7 million of proceeds from the sale of vessels.

Net cash provided by financing activities for the first half of 2018 and 2017 was $21.5 million and $140.6 million, respectively.

For the first half of 2018, net cash provided by financing activities mainly consisted of:

  • $100.0 million increase in lease obligations, relating to three delivered newbuilding vessels, under bareboat charters; and
  • $30.0 million of proceeds drawn under the newly entered loan facility with the National Bank of Greece to refinance an existing facility with Commerzbank;

offset partially by:

  • $108.7 million paid in aggregate in connection with: (i) the regular amortization of outstanding vessel financings and  capital lease installments of $43.1 million and (iii) $65.6 million of excess cash for the quarters ended December 31, 2017 and March 31, 2018, paid pursuant to the cash sweep mechanism in our Supplemental Agreements, during the first half 2018.

For the first half of 2017, net cash provided by financing activities consisted of:

  • $79.9 million increase in capital lease obligations, relating to two delivered newbuilding vessels under bareboat charters;
  • $16.0 million of proceeds drawn under a loan facility for the financing of Star Charis and Star Suzanna, which were delivered to us during the period; and
  • $50.6 million of proceeds from a private placement of our common shares, which was completed in February 2017, which is net of aggregate private placement agent's fees and expenses of $0.9 million;

offset partially by:

  • $5.2 million paid in aggregate in connection with the capital lease installments and the partial prepayment of a loan facility due to the sale of Star Eleonora; and
  • $0.7 million of financing fees, paid in connection with the restructuring of our indebtedness.

Summary of Selected Data

(TCE rates expressed in U.S. dollars)      
    Second quarter 2018       Second quarter 2017  
Average number of vessels (1)   73.5       69.5  
Number of vessels (2)   74       70  
Average age of operational fleet (in years) (3)     8.3       7.8  
Ownership days (4)   6,691       6,326  
Available days (5)   6,633       6,266  
Charter-in days (6)   1,157         91  
Fleet utilization (7)   99.3 %     99.1 %
Daily Time Charter Equivalent Rate (8) $ 13,567     $ 9,747  
Average daily OPEX per vessel (9) $ 4,096     $ 3,975  
Average daily OPEX per vessel (excl. pre-delivery expenses) $ 3,996     $ 3,880  
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) $ 1,072     $ 1,101  
       
    Six months ended June 30, 2018       Six months ended June 30, 2017  
Average number of vessels (1)   72.8       68.4  
Number of vessels (2)   74       70  
Average age of operational fleet (in years) (3)     8.3       7.8  
Ownership days (4)   13,174       12,384  
Available days (5)   13,116       12,275  
Charter-in days (6)   2,085       181  
Fleet utilization (7)   99.6 %     99.1 %
Daily Time Charter Equivalent Rate (8) $ 13,082     $ 8,968  
Average daily OPEX per vessel (9) $ 4,075     $ 4,002  
Average daily OPEX per vessel (excl. pre-delivery expenses) $ 3,993     $ 3,914  
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) $ 1,086     $ 1,109  
               
  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.
  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 lay-up days, if any.
  6. Charter-in days are the total days that we charter-in third-party vessels.
  7. Fleet utilization is calculated by dividing (x) Available days plus Charter-in days by (y) Ownership days plus charter-in days for the relevant period.
  8. Represents the weighted average daily TCE rates of our operating fleet (including owned fleet and fleet under charter-in arrangements). TCE rate is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE rate is determined by dividing voyage revenues (net of voyage expenses and charter-in hire expense and amortization of fair value of above/below market acquired time charter agreements, if any) by Available days for the relevant time period. 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. 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. We include TCE revenues, 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. The above reported TCE rates for the second quarter and the first half of 2018, were calculated excluding Star Logistics. We are excluding the revenues and expenses of Star Logistics because it was formed recently, in October 2017, and its revenues and expenses have not yet normalized and could have an effect on our TCE rates that could obscure material trends. As a result, we believe it is more informative to our investors to present the TCE rates excluding the revenues and expenses of Star Logistics until its revenues and expenses have normalized. For the detail calculation please see the table at the back of this release with the reconciliation of Voyage Revenues to TCE.
  9. Average daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days.
  10. Average daily Net Cash G&A expenses per vessel is calculated by (1) deducting the Management fee Income from, and (2) adding the Management fee expense to, the General and Administrative expenses (net of stock-based compensation expense) and (3) then dividing by the Ownership days and Charter-in days.

Unaudited Consolidated Statement of Operations

(Expressed in thousands of U.S. dollars except for share and per share data)   Second quarter 2018   Second quarter 2017   Six months ended June 30, 2018   Six months ended June 30, 2017
                 
                 
Revenues:                
Voyage revenues   $   132,604     $   78,605     $   253,661     $   143,471  
Total revenues     132,604       78,605       253,661       143,471  
                 
Expenses:                
Voyage expenses     (19,891 )     (16,650 )     (42,586 )     (31,649 )
Charter-in hire expense     (24,293 )       (881 )     (40,763 )       (1,736 )
Vessel operating expenses     (27,408 )     (25,145 )     (53,681 )     (49,560 )
Dry docking expenses     (2,149 )     (1,856 )     (3,269 )     (3,248 )
Depreciation     (22,075 )     (20,742 )     (43,243 )     (40,387 )
Management fees     (1,983 )     (1,875 )     (3,913 )       (3,689 )
General and administrative expenses     (10,383 )     (9,284 )     (17,702 )     (17,316 )
Gain/(Loss) on forward freight agreements and bunker swaps       2,812         256       2,000         (541 )
Other operational loss       -          (751 )       -        (751 )
Other operational gain       36         294         41       2,461  
Gain/(Loss) on sale of vessels       -          -          -        (370 )
                 
Operating income/(loss)     27,270       1,971       50,545       (3,315 )
                 
Interest and finance costs     (16,065 )     (12,625 )     (30,338 )     (23,766 )
Interest and other income/(loss)     (499 )     603       394       1,223  
Gain/(Loss) on derivative financial instruments       -        (147 )     (1 )     100  
Loss on debt extinguishment       (21 )       -        (21 )     (358 )
Total other expenses, net     (16,585 )     (12,169 )     (29,966 )     (22,801 )
                 
Income/(Loss) before equity in investee     10,685       (10,198 )     20,579       (26,116 )
                 
Equity in income/(loss) of investee     43       (29 )     49       4  
                 
Income/(Loss) before taxes   $   10,728     $   (10,227 )   $   20,628     $   (26,112 )
                 
US Source Income taxes       -          (52 )       -          (117 )
                 
Net income/(loss)   $   10,728     $   (10,279 )   $   20,628     $   (26,229 )
                 
Earnings/(loss) per share, basic   $   0.17     $   (0.16 )   $   0.32     $   (0.42 )
Earnings/(loss) per share, diluted   $   0.17     $   (0.16 )   $   0.32     $   (0.42 )
Weighted average number of shares outstanding, basic     64,233,289       63,336,657       64,170,654       62,188,645  
Weighted average number of shares outstanding, diluted     64,633,668       63,336,657       64,468,860       62,188,645  
                                 

Unaudited Consolidated Condensed Balance Sheets

(Expressed in thousands of U.S. dollars)
 
ASSETS   June 30, 2018   December 31, 2017
Cash and cash equivalents   $   218,651   $   257,911
Other current assets       69,635       54,715
TOTAL CURRENT ASSETS       288,286       312,626
         
Advances for vessels under construction and acquisition of vessels and other assets     46,480     48,574
Vessels and other fixed assets, net     1,896,020     1,775,081
Other non-current assets     12,532     9,483
TOTAL ASSETS   $   2,243,318   $   2,145,764
         
Current portion of long-term debt and finance lease commitments   $   142,856   $   189,306
Other current liabilities     38,894     29,968
TOTAL CURRENT LIABILITIES       181,750       219,274
         
Long-term debt and finance lease commitments non-current(net of unamortized deferred finance fees of $6,538 and $7,154, respectively)     858,205     789,878
Senior Notes (net of unamortized deferred finance fees of $1,797 and $2,000, respectively)     48,203     48,000
Other non-current liabilities     620     560
TOTAL LIABILITIES   $   1,088,778   $   1,057,712
         
STOCKHOLDERS' EQUITY     1,154,540     1,088,052
         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $   2,243,318   $   2,145,764
             

Unaudited Cash Flow Data

(Expressed in thousands of U.S. dollars)     Six months ended June 30, 2018       Six months ended June 30, 2017  
               
Net cash provided by / (used in) operating activities    $   61,087     $   20,120    
           
Net cash provided by / (used in) investing activities        (115,592 )       (109,023 )  
           
Net cash provided by / (used in) financing activities       21,501         140,563    
                 

EBITDA and Adjusted EBITDA Reconciliation

We consider EBITDA to represent net income before interest, income taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operating activities, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is included herein because it is a basis upon which we assess our liquidity position, because it is a measure used by our lenders as a measure of our compliance with certain loan covenants and because we believe that it presents useful information to investors regarding our ability to service and/or incur indebtedness.

To derive Adjusted EBITDA from EBITDA and Adjusted Net income/(loss) from Net income/(loss), we excluded non-cash gains/losses such as those related to sale of vessels, stock-based compensation expense the write-off of the unamortized fair value of above-market acquired time charters, impairment losses, the write-off of claims receivable,  change in fair value of forward freight agreements and bunker swaps and the equity in income/(loss) of investee, if any. We excluded the items described above when deriving Adjusted EBITDA and Adjusted Net income/(loss) because we believe that these items do not reflect the ongoing operational cash inflows and outflows of our fleet.

The following table reconciles net cash provided by operating activities to EBITDA and Adjusted EBITDA:

(Expressed in thousands of U.S. dollars)     Second quarter
2018
      Second quarter
2017
      Six months ended
June 30, 2018
      Six months ended
June 30, 2017
 
Net cash provided by/(used in) operating activities   $ 29,505     $ 13,791     $ 61,087     $ 20,120  
Net decrease / (increase)  in current assets     3,984       4,267       12,762       4,865  
Net increase / (decrease) in operating  liabilities, excluding current portion of long term debt     1,076       (3,632 )     (5,955 )     (3,157 )
Loss on debt extinguishment     (21 )     -       (21 )     (358 )
Stock – based compensation     (3,949 )     (3,710 )     (5,011 )     (6,360 )
Amortization of deferred finance charges     (691 )     (647 )     (1,367 )     (1,288 )
Unrealized and accrued gain/(loss) on derivative financial instruments     185       (269 )     573       706  
Unrealized gain / (loss) on forward freight agreements and bunker swaps     1,266       673       349       (41 )
Total other expenses, net     17,990       12,169       31,371       22,801  
Income tax     -       52       -       117  
Gain/(Loss) on sale of vessel     -       -       -       (370 )
Equity in income/(loss) of investee     43       (29 )     49       4  
EBITDA   $   49,388     $   22,665     $   93,837     $   37,039  
Less:                
Equity in income of investee     (43 )     -       (49 )     (4 )
Unrealized gain on forward freight agreements and bunker swaps     (1,266 )     (673 )     (349 )     -  
Plus:                
Stock-based compensation     3,949       3,710       5,011       6,360  
Loss on sale of vessel     -       -       -       370  
Unrealized loss on forward freight agreements and bunker swaps     -       -       -       41  
Equity in loss of investee     -       29       -       -  
Adjusted EBITDA   $   52,028     $   25,731     $   98,450     $   43,806  
                                 

Net income / (loss) and Adjusted Net income / (loss) Reconciliation

(Expressed in thousands of U.S. dollars)     Second quarter
2018
      Second quarter
2017
      Six months ended
June 30, 2018
      Six months ended
June 30, 2017
 
Net income / (loss)   $   10,728     $   (10,279 )   $   20,628     $   (26,229 )
Stock – based compensation     3,949       3,710       5,011       6,360  
Unrealized (gain) / loss on forward freight agreements and bunker swaps     (1,266 )     (673 )     (349 )     41  
Unrealized (gain) / loss on derivative financial instruments     (12 )     (411 )     (26 )     (1,374 )
(Gain) / loss on sale of vessel     -       -       -       370  
Amortization of deferred gain from sale and leaseback     -       (19 )     -       (37 )
Loss on debt extinguishment     21       -       21       358  
Equity in income/(loss) of investee     (43 )     29       (49 )     (4 )
Adjusted Net income / (loss)   $   13,377     $   (7,643 )   $   25,236     $   (20,515 )
Weighted average number of shares outstanding, basic     64,233,289       63,336,657       64,170,654       62,188,645  
Weighted average number of shares outstanding, diluted     64,633,668       63,336,657       64,468,860       62,188,645  
Adjusted Basic Earnings / (Loss) Per Share   $   0.21     $   (0.12 )   $   0.39     $   (0.33 )
Adjusted Diluted Earnings / (Loss) Per Share   $   0.21     $   (0.12 )   $   0.39     $   (0.33 )
                                 

Voyage Revenues to Daily Time Charter Equivalent ("TCE") Reconciliation (please refer to the section "Summary of Selected Data" for the calculation method of TCE)

(In thousands of U.S. Dollars, except as otherwise stated)                
      Second quarter
2018
      Second quarter
2017
      Six months ended
June 30, 2018
      Six months ended
June 30, 2017
 
Voyage revenues   $   103,665   (a) $   78,605     $   201,620   (b) $   143,471  
Less:                
Voyage expenses     (13,674 ) (c)   (16,650 )     (30,032 ) (d)   (31,649 )
Charter-in hire expenses       -    (e)   (881 )       -    (f)   (1,736 )
Time Charter equivalent revenues   $   89,991     $   61,074     $   171,588     $   110,086  
                 
Available days for fleet       6,633       6,266       13,116       12,275  
Daily Time Charter Equivalent Rate ("TCE")   $   13,567     $   9,747     $   13,082     $   8,968  
                                 
  1. Voyage revenues used to calculate TCE rate for the second quarter of 2018 consist of (1) reported voyage revenues of $132.6 million minus (2) voyage revenues of $28.9 million attributable to Star Logistics.
  2. Voyage revenues used to calculate TCE rate for the first half of 2018 consist of (1) reported voyage revenues of $253.7 million minus (2) voyage revenues of $52.0 million attributable to Star Logistics.
  3. Voyage expenses used to calculate TCE rate for the second quarter of 2018 consist of (1) reported voyage expenses of $19.9 million minus (2) voyage expenses of $6.2 million attributable to Star Logistics.
  4. Voyage expenses used to calculate TCE rate for the first half of 2018 consist of (1) reported voyage expenses of $42.6 million minus (2) voyage expenses of $12.6 million attributable to Star Logistics.
  5. Charter-in hire expenses used to calculate TCE rate for the second quarter of 2018 consist of (1) reported charter-in hire expenses of $24.3 million minus (2) charter-in hire expenses of $24.3 million attributable to Star Logistics.
  6. Charter-in hire expenses used to calculate TCE rate for the first half of 2018 consist of (1) reported charter-in hire expenses of $40.8 million minus (2) charter-in hire expenses of $40.8 million attributable to Star Logistics.  

Conference Call details:

Our management team will host a conference call to discuss our financial results on Wednesday, August 8, 2018 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" to the operator.

A telephonic replay of the conference call will be available until August 15, 2018, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785  (Standard International Dial In) and the access code required for the replay is: 3128607#.

Slides and audio webcast:

There will also be a simultaneous live webcast over the Internet through the Star Bulk website (www.starbulk.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About Star Bulk

Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain, and minor bulks, which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Greece. Its common stock trades on the Nasdaq Global Select Market under the symbol "SBLK" and on the Oslo Stock Exchange under the ticker "SBLK R". On a fully delivered basis, Star Bulk will have a fleet of 108 vessels, with an aggregate capacity of 12.26 million dwt, consisting of 17 Newcastlemax, 18 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 16 Ultramax and 11 Supramax vessels with carrying capacities between 52,055 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 charterhire 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 Begleris
Co ‐ Chief Financial Officers
Star Bulk Carriers Corp.
c/o Star Bulk Management Inc.
40 Ag. Konstantinou Av.
Maroussi 15124
Athens, Greece
Email: info@starbulk.com
www.starbulk.com

Investor Relations / Financial Media:

Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661‐7566
E‐mail: starbulk@capitallink.com
www.capitallink.com  

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