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Star Bulk Carriers Corp. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2018

/EIN News/ -- ATHENS, Greece, Feb. 11, 2019 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq and Oslo: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the fourth quarter and year ended December 31, 2018.

Financial Highlights

           
(Expressed in thousands of U.S. dollars,
except for daily rates and per share data)
         
Fourth quarter 2018 Fourth quarter 2017 Twelve months ended December 31, 2018 Twelve months ended December 31, 2017  
Voyage Revenues $209,433   $107,707   $651,561   $331,976    
Net income/(loss) $12,315   $23,884   $58,997   ($9,771 )  
Net cash provided by operating activities $59,836   $44,329   $169,009   $82,804    
EBITDA (1) $63,575   $58,378   $233,015   $121,508    
Adjusted EBITDA (1) $82,379   $55,690   $260,887   $128,048    
Adjusted Net income / (loss)  (2) $30,316   $21,535   $86,098   ($4,301 )  
Earnings / (loss) per share basic $0.13   $0.37   $0.77   ($0.16 )  
Adjusted earnings / (loss) per share basic  (2) $0.33   $0.34   $1.12   ($0.07 )  
TCE Revenues (3) $137,800   $90,019   $437,069   $262,661    
Daily Time Charter Equivalent Rate ("TCE") (3) $14,140   $13,860   $13,768   $10,393    
Fleet utilization   98.6 %   100.0 %   99.0 %   99.6 %  
Average daily OPEX per vessel (4) $3,938   $3,911   $4,027   $3,995    
Average daily OPEX per vessel (excl. pre-delivery expenses) (4) $3,938   $3,850   $3,994   $3,906    
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses)  (5) $969   $1,094   $1,004   $1,094    
           
  1. EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the table at the end of this release for a reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by / (Used in) Operating Activities, which is the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). To derive Adjusted EBITDA from EBITDA, we exclude non-cash 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 end of this release for a reconciliation to Net income / (loss), which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
  3. Daily Time Charter Equivalent Rate (“TCE”) and TCE Revenues are non-GAAP measures. Please see the table at the end of this release for a reconciliation to Voyage Revenues, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
  4. Average daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days.
  5. Average daily Net Cash G&A expenses per vessel is calculated by (1) deducting the Management fee Income (if any), from, and (2) adding the Management fee expense to, the General and Administrative expenses (net of stock-based compensation expense) and (3) then dividing the result by the sum of Ownership days and Charter-in days. Please see the table at the end of this release for a reconciliation to General and administrative expenses, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Petros Pappas, Chief Executive Officer of Star Bulk, commented: “This is our fifth consecutive profitable quarter, as we achieved $12.3 million Net Income. This figure also includes a non-cash charge of $17.8 million, related to impairment for realized as well as expected vessel sales in 2019, which if excluded, brings our Adjusted Net Income to $30.3 million. Our voyage revenues for the fourth quarter of 2018 amount to $209.4 million, our  average TCE for the quarter is $14,140/day per vessel, while average OPEX per vessel are $3,938/day and average Net Cash G&A expenses per vessel are $969/day, given our continuous focus to keep costs low.

On a yearly basis we realized Net Income of $59.0 million and Adjusted Net Income of $86.1 million. Our voyage revenues for the year amount to $651.6 million, our average TCE is $13,768/day per vessel, while average OPEX per vessel (excl. pre-delivery expenses) are $3,994/day and average Net Cash G&A expenses per vessel are $1,004/day.

As of today, we have fixed a minimum of 70% of Q1 2019 days at average TCE rates of $12,954 per day.

During this quarter, we concluded the refinancing of loans of approximately $248 million with new debt with an average margin of 120 bps lower than the debt that we refinanced. We remain committed to refinancing debt at lower interest costs when such opportunities arise.  We have also committed financing for the procurement and installation of scrubbers, of approximately $140 million, to be drawn during the rollout of our program in 2019. Maintaining a large cash balance remains a top priority for us.

We are currently completing the installation of scrubbers on 15 of our larger vessels enabling us to have the vast majority of our fleet fitted with scrubbers ahead of the January 1st 2020 implementation date.”

Recent Developments

DEBT FINANCING UPDATE

  • On December 17, 2018, we entered into a loan agreement with ABN AMRO BANK N.V. and Norddeutsche Landesbank Girozentrale (Nord LB), the “ABN/NordLB $115 million Facility,” for an amount up to $115 million available in four tranches. The first tranche was used to refinance the indebtedness of four of the Augustea Vessels, and the remaining three tranches were used to partially finance the acquisition cost of the three vessels purchased from entities affiliated with E.R. Capital Holding GmbH & Cie KG., as described below. The loan is secured by a first priority mortgage on the seven vessels. All four tranches will mature in December 2023.
     
  • On January 28 2019, we entered into a loan agreement with Skandinaviska Enskilda Banken AB (SEB), the “SEB Facility,” for the financing of an aggregate amount of $65.7 million, which was used together with cash on hand to pay all the outstanding amount under the lease agreements of M/V Star Laetitia and M/V Star Sienna, two vessels acquired from Augustea. The SEB Facility is secured by a first priority mortgage on the two vessels and will mature in January 2025.
     
  • On January 31, 2019, we entered into a loan agreement with E. SUN Commercial Bank, Hong Kong branch, the “E.SUN Facility,” for the financing of an amount up to $37.1 million to pay all outstanding amount under the lease agreement of M/V Star Ariadne. The E.SUN Facility is secured by first priority mortgage on the respective vessel and will mature in February 2024.

VESSEL DELIVERIES’ UPDATE

  • Pursuant to the previously announced transaction with E.R. Capital Holding GmbH & Cie. KG, dated as of August 27, 2018, in which we agreed to acquire three dry bulk vessels and received an option to purchase another four dry bulk vessels, we took delivery of two of the three committed dry bulk vessels, namely the 2010 built Capesize vessels M/V Star Marianne and M/V Star Janni on January 7, 2019 and January 14, 2019, respectively.

  • On January 8, 2019, we sold and delivered the vessel M/V Star Delta, a 2001 built Supramax vessel, to her new buyers.

UPDATED SHARE COUNT

During the fourth quarter of 2018, we repurchased 341,363 of our common shares in open market transactions at an average price of $9.17 for aggregate consideration of $3.1 million, pursuant to the previously announced share repurchase program. All the repurchased shares were canceled and removed from our share capital on January 3, 2019. Following the deliveries of the last two vessels purchased from E.R. Capital Holding GmbH & Cie. KG and the cancelation of the repurchased shares, we have 93,285,322 common shares issued and outstanding as of the date of this release.

Employment update

As of today, we have fixed employment for approximately 70% of the days in Q1 2019 at average TCE rates of $12,954 per day.

More specifically:

Capesize / Newcastlemax Vessels: approximately 68% of Q1 2019 days at $16,223 per day.

Post Panamax / Kamsarmax / Panamax Vessels: approximately 69% of Q1 2019 days at $11,792 per day.

Ultramax / Supramax Vessels: approximately 75% of Q1 2019 days at $11,306 per day.

Existing On the Water Fleet (As of February 11, 2019)

  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 Star Leo (1)   Newcastlemax   207,939   2018   May-18
6 ABOY Laetitia (1)   Newcastlemax   207,896   2017   August-18
7 Star Ariadne (1)   Newcastlemax   207,812   2017   March-17
8 Star Virgo (1)   Newcastlemax   207,810   2017   March-17
9 Star Libra (1)   Newcastlemax   207,765   2016   June-16
10 ABOY Sienna (1)   Newcastlemax   207,721   2017   August-18
11 Star Marisa (1)   Newcastlemax   207,709   2016   March-16
12 ABOY Karlie (1)   Newcastlemax   207,566   2016   August-18
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 Star Claudine (1)   Capesize   181,258   2011   July-18
18 Star Ophelia (1)   Capesize   180,716   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 Star Lyra (1)   Capesize   179,147   2009   July-18
25 Star Janni   Capesize   178,978   2010   January-19
26 Star Marianne   Capesize   178,906   2010   January-19
27 Star Angie   Capesize   177,931   2007   October-14
28 Big Fish   Capesize   177,662   2004   July-14
29 Kymopolia   Capesize   176,990   2006   July-14
30 Star Triumph   Capesize   176,343   2004   December-17
31 ABY Scarlett   Capesize   175,800   2014   August-18
32 Star Audrey   Capesize   175,125   2011   August-18
33 Big Bang   Capesize   174,109   2007   July-14
34 Star Aurora   Capesize   171,199   2000   September-10
35 Paola   Mini-Capesize   115,259   2011   August-18
36 ABML Eva   Mini-Capesize   106,659   2011   August-18
37 Amami   Post Panamax   98,681   2011   July-14
38 Madredeus   Post Panamax   98,681   2011   July-14
39 Star Sirius   Post Panamax   98,681   2011   March-14
40 Star Vega   Post Panamax   98,681   2011   February-14
41 Star Piera   Post-Panamax   91,952   2010   August-18
42 Star Despoina   Post Panamax   91,945   2010   August-18

Existing On the Water Fleet (As of February 11, 2019) - continued

  Vessel Name   Vessel Type   Capacity
(dwt.)
  Year Built    Date Delivered to Star Bulk
43 Star Aphrodite   Post Panamax   92,006   2011   August-18
44 Star Electra (1)   Kamsarmax   83,494   2011   July-18
45 Star Angelina   Kamsarmax   82,981   2006   December-14
46 ABY Jeannette   Kamsarmax   82,567   2014   August-18
47 Star Gwyneth   Kamsarmax   82,790   2006   December-14
48 Star Kamila   Kamsarmax   82,769   2005   September-14
49 Star Luna (1)   Kamsarmax   82,687   2008   July-18
50 Star Bianca (1)   Kamsarmax   82,672   2008   July-18
51 Pendulum   Kamsarmax   82,619   2006   July-14
52 Star Maria   Kamsarmax   82,598   2007   November-14
53 Star Markella   Kamsarmax   82,594   2007   September-14
54 Star Danai   Kamsarmax   82,574   2006   October-14
55 Star Georgia   Kamsarmax   82,298   2006   October-14
56 Star Sophia   Kamsarmax   82,269   2007   October-14
57 Star Mariella   Kamsarmax   82,266   2006   September-14
58 Star Moira   Kamsarmax   82,257   2006   November-14
59 Star Nina   Kamsarmax   82,224   2006   January-15
60 Star Renee   Kamsarmax   82,221   2006   December-14
61 Star Nasia   Kamsarmax   82,220   2006   August-14
62 Star Laura   Kamsarmax   82,209   2006   December-14
63 Star Jennifer   Kamsarmax   82,209   2006   April-15
64 Star Mona (1)   Kamsarmax   82,188   2012   July-18
65 Star Helena   Kamsarmax   82,187   2006   December-14
66 Star Astrid (1)   Kamsarmax   82,158   2012   July-18
67 ABY Asia (1)   Kamsarmax   81,944   2017   August-18
68 Star Calypso (1)   Kamsarmax   81,918   2014   July-18
69 Star Charis   Kamsarmax   81,711   2013   March-17
70 Star Suzanna   Kamsarmax   81,711   2013   May-17
71 Mercurial Virgo   Kamsarmax   81,545   2013   July-14
72 Stardust (1)   Kamsarmax   81,501   2011   July-18
73 Songa Sky (1)   Kamsarmax   81,466   2010   July-18
74 Star Lydia   Kamsarmax   81,187   2013   August-18
75 Star Nicole   Kamsarmax   81,120   2013   August-18
76 ABY Virginia   Kamsarmax   81,061   2015   August-18
77 Star Genesis (1)   Kamsarmax   80,705   2010   July-18
78 Star Flame (1)   Kamsarmax   80,448   2011   July-18
79 Star Iris   Panamax   76,466   2004   September-14
80 Star Emily   Panamax   76,417   2004   September-14
81 Idee Fixe (1)   Ultramax   63,458   2015   March-15
82 Roberta (1)   Ultramax   63,426   2015   March-15

Existing On the Water Fleet (As of February 11, 2019) - continued

  Vessel Name   Vessel Type   Capacity
(dwt.)
  Year Built    Date Delivered to Star Bulk
83 Laura (1)   Ultramax   63,399   2015   April-15
84 Kaley (1)   Ultramax   63,283   2015   June-15
85 Kennadi   Ultramax   63,262   2016   January-16
86 Mackenzie   Ultramax   63,226   2016   March-16
87 Star Anna   Ultramax   63,038   2015   November-18
88 Star Wave (1)   Ultramax   61,491   2017   July-18
89 Star Challenger   Ultramax   61,462   2012   December-13
90 Star Fighter (1)   Ultramax   61,455   2013   December-13
91 Star Lutas   Ultramax   61,347   2016   January-16
92 Honey Badger   Ultramax   61,320   2015   February-15
93 Wolverine   Ultramax   61,292   2015   February-15
94 Star Antares   Ultramax   61,258   2015   October-15
95 Star Acquarius   Ultramax   60,916   2015   July-15
96 Star Pisces   Ultramax   60,916   2015   August-15
97 ABY Monica   Ultramax   60,935   2015   August-18
98 Songa Glory (1)   Supramax   58,680   2012   July-18
99 Diva   Supramax   56,582   2011   July-17
100 Strange Attractor   Supramax   55,742   2006   July-14
101 Star Bright   Supramax   55,783   2010   October-18
102 Star Omicron   Supramax   53,489   2005   April-08
103 Star Gamma   Supramax   53,098   2002   January-08
104 Star Zeta   Supramax   52,994   2003   January-08
105 Star Theta   Supramax   52,425   2003   December-07
106 Star Epsilon   Supramax   52,402   2001   December-07
107 Star Cosmo   Supramax   52,247   2005   July-08
108 Star Kappa   Supramax   52,055   2001   December-07
      Total dwt:   12,054,230        

Newbuilding Vessels

    Vessel Name   Vessel Type   Capacity
(dwt.)
  Shipyard   Expected delivery date
1   HN 1388 (tbn Katie K) (1)   Newcastlemax   208,000   SWS   Mar-19
2   HN 1389 (tbn Debbie H) (1)   Newcastlemax   208,000   SWS   Apr-19
3   HN 1390 (tbn Ocean Ayesha) (1)   Newcastlemax   208,000   SWS   Jun-19
            624,000        
  1. Subject to a bareboat charter with purchase obligation at the expiration of the bareboat term.

Amounts shown throughout the press release and variations in period–on–period comparisons are derived from the actual numbers in our books and records.

Fourth Quarter 2018 and 2017 Results

Voyage revenues for the fourth quarter of 2018 increased to $209.4 million from $107.7 million in the fourth quarter of 2017. Adjusted time charter equivalent revenues (“Adjusted TCE Revenues”) (please see the table at the end of this release for the calculation of the Adjusted TCE Revenues) were $136.2 million for the fourth quarter of 2018, compared to $90.0 million for the fourth quarter of 2017. Adjusted TCE Revenues were primarily increased as a result of an increase in the average number of vessels in our fleet to 106.4 in the fourth quarter of 2018, up from 70.6 in the fourth quarter of 2017. The TCE rates for the fourth quarter of 2018 and 2017 were $14,140 and $13,860, respectively.

Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has no effect on prior year figures, our TCE rate for the fourth quarter of 2018 would have been $14,018.

For the fourth quarter of 2018, operating income was $33.9 million, which includes depreciation of $30.8 million and impairment loss of $17.8 million, as discussed below. Operating income of $37.2 million for the fourth quarter of 2017 included depreciation of $21.1 million. Depreciation increased during the fourth quarter of 2018 due to a higher average number of vessels in our fleet as described above.

Net income for the fourth quarter of 2018 was $12.3 million, or $0.13 earnings per share, basic and diluted, based on 92,457,989 weighted average basic shares and 92,515,671 weighted average diluted shares, respectively. Net income for the fourth quarter of 2017 was $23.9 million, or $0.37 income per share, basic and diluted, based on 64,080,657 weighted average basic shares and 64,259,874 weighted average diluted shares, respectively.

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

  • Impairment loss of $17.8 million, or $0.19 per share, basic and diluted, recognized (a) in anticipation of the sale of the Star Delta and its delivery to its new owners in early January 2019, which, as of December 31, 2018, was classified as held for sale and (b) in connection with negotiated sales of two additional vessels built before 2005;
  • A loss on bad debt  of $0.7 million or $0.01 per basic and diluted share associated with the write-off of disputed charterer balances; and
  • Amortization of the fair value of below market acquired time charters of $1.1 million, or $0.01 per share, basic and diluted, associated with time charters attached to two vessels acquired during the third quarter of 2018. These below market time charters are amortized over the duration of each respective time charter agreement as an increase to voyage revenues.

Net income for the fourth quarter of 2017, included the following significant non-cash items, other than depreciation expense:

  • Loss on debt extinguishment of $0.9 million, or $0.01 per share, basic and diluted, recognized in connection with the refinancing in full of our 2019 Notes (as defined in our annual report on Form 20-F for the fiscal year ended December 31, 2017 (the “2017 20-F”)) in December 2017;
  • Net gain on sale of vessels of $3.0 million, or $0.05 per share, basic and diluted, recognized in connection with the sale of the Star Vanessa; and
  • Unrealized gain on interest rate swaps of $0.5 million or $0.01 per share, basic and diluted.

Adjusted net income for the fourth quarter of 2018, was $30.3 million, or $0.33 earnings per share, basic and diluted, compared to adjusted net income of $21.5 million, or $0.34 earnings per share, basic and diluted, for the fourth 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 in the financial tables contained in this release.

Adjusted EBITDA for the fourth quarters of 2018 and 2017, was $82.4 million and $55.7 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth in the financial tables contained in this release.

For the fourth quarters of 2018 and 2017, vessel operating expenses were $38.5 million and $25.4 million, respectively. This increase was primarily due to the increase in the average number of vessels to 106.4 from 70.6. Vessel operating expenses for the fourth quarter of 2017 included pre-delivery and pre-joining expenses of $0.4 million while during the fourth quarter of 2018 no significant pre-delivery and pre-joining expenses were incurred. Excluding these expenses, our average daily operating expenses per vessel for the fourth quarter of 2018 and 2017, were $3,938 and $3,850, respectively.

During the fourth quarter of 2018, five of our vessels underwent their periodic dry docking surveys, resulting in $3.1 million of dry docking expense. During the fourth quarter of 2017, none of our vessels underwent their periodic dry docking surveys, but we incurred expenses of $0.4 million in connection with upcoming dry dockings.

General and administrative expenses for the fourth quarters of 2018 and 2017 were $7.2 million and $5.9 million, respectively. The formation of our new subsidiary, Star Logistics, and the increase of the number of our employees due to the recent expansion of our fleet that occurred in the third quarter of 2018 compared to the corresponding period in 2017, resulted in higher payroll cost in the fourth quarter of 2018. In addition, general and administrative expenses increased as a result of the listing of our common shares on the Oslo Stock Exchange. Our average daily net cash general and administrative expenses per vessel together with management fees for the fourth quarter of 2018 were reduced to $969 from $1,094 during the fourth quarter of 2017 (please see the table at the end of this release for the calculation of the Average daily Net Cash G&A expenses per vessel).

Charter-in hire expense for the fourth quarters of 2018 and 2017 was $25.0 million and $3.1 million, respectively. The increase is due to increased charter in days of 1,493 in the fourth quarter of 2018 compared to 197 in the fourth quarter of 2017. In both quarters, the charter in days are attributable to the activities of our subsidiary Star Logistics, which was formed in the fourth quarter of 2017.

Management fees for the fourth quarters of 2018 and 2017 were $4.0 million and $1.9 million, respectively. The increase is attributable to the new management agreements entered into in connection with the acquired fleets during the third quarter of 2018.

Interest and finance costs net of interest and other income/ (loss) for the fourth quarters of 2018 and 2017 were $21.2 million and $12.6 million, respectively. The increase is attributable to the increase in (i) LIBOR between the corresponding periods and (ii) the weighted average balance of our outstanding indebtedness of $1,447.6 million during the fourth quarter of 2018 compared to $1,043.2 million for the same period in 2017.

Years ended December 31, 2018 and 2017 Results

Voyage revenues for the year ended December 31, 2018 increased to $651.6 million from $332.0 million for the year ended December 31, 2017. Adjusted TCE Revenues (please see the table at the end of this release for the calculation of the Adjusted TCE Revenues) were $435.2 million, compared to $262.7 million for the year ended December 31, 2017. This increase was primarily attributable to the significant rise in charter hire rates, which led to a TCE rate of $13,768 for the year ended December 31, 2018, compared to a TCE rate of $10,393 for the year ended December 31, 2017, representing a 32% increase. Adjusted TCE Revenues also increased as a result of an increase in the average number of vessels in our fleet to 87.7 in the year ended December 31, 2018, up from 69.6 in the year ended December 31, 2017 following the previously announced fleet acquisitions during the third quarter of 2018.

Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has no effect to prior year figures, our TCE rate for the year ended December 31, 2018 would have been $13,772.

For the year ended December 31, 2018, operating income was $131.9 million, which includes depreciation of $102.9 million and impairment loss of $17.8 million. Operating income of $38.8 million for the year ended December 31, 2017 included depreciation of $82.6 million. Depreciation increased during the year ended December 31, 2018 due to a higher average number of vessels in our fleet, as described above.

Net income for the year ended December 31, 2018 was $59.0 million, or $0.77 earnings per share, basic and $0.76 earnings per share, diluted, based on 77,061,227 weighted average basic shares and 77,326,111 weighted average diluted shares, respectively. Net loss for the year ended December 31, 2017 was $9.8 million, or $0.16 loss per share, basic and diluted, based on 63,034,394 weighted average basic and diluted shares.

Net income for the year ended December 31, 2018 included the following significant non-cash items, other than depreciation expense:

  • Impairment loss of $17.8 million, or $0.23 per share, basic and diluted, recognized (a) in anticipation of the sale of the Star Delta and its delivery to its new owners in early January 2019, which as of December 31, 2018, was classified as held for sale and (b) in connection with negotiated sales of two additional vessels built before 2005;
  • Stock-based compensation expense of $8.1 million, or $0.10 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees;
  • Unrealized loss on forward freight agreements and bunker swaps of $1.3 million, or $0.02 per share, basic and diluted;
  • Loss on debt extinguishment of $1.8 million, or $0.02 per share, basic and diluted, recognized in connection with the refinance of certain of our debt facilities;
  • A loss on bad debt of $0.7 million or $0.01 per basic and diluted share associated with the write-off of disputed charterer balances;
  • Unrealized gain on derivative financial instruments of $0.7 million or $0.01 per share, basic and diluted; and
  • Amortization of the fair value of below market acquired time charters of $1.8 million, or $0.02 per share, basic and diluted, associated with time charters attached to two acquired vessels. These below market time charters are amortized over the duration of each respective charter as an increase to voyage revenues.

Net loss for the year ended December 31, 2017, included the following significant non-cash items, other than depreciation expense:

  • Stock based compensation expense of $9.3 million, or $0.15 per share, basic and diluted, recognized in connection with common shares granted to our directors and employees;
  • An aggregate net gain on sale of vessels of $2.6 million, or $0.04 per share, basic and diluted, in connection with the sale of (i) the Star Eleonora in March 2017 and (ii) the Star Vanessa in November 2017;
  • Unrealized gain on interest rate swaps of $2.3 million or $0.04 per share, basic and diluted; and
  • Loss on debt extinguishment of $1.3 million or $0.02 per share, basic and diluted, in connection with the cancellation of a previous loan commitment and the refinancing in full of our 2019 Notes (as defined in the 2017 20-F) in December 2017.

Adjusted net income for the year ended December 31, 2018 was $86.1 million, or $1.12 earnings per share, basic and $1.11 earnings per share, diluted, compared to adjusted net loss of $4.3 million, or $0.07 loss per share, basic and diluted, for the year ended December 31, 2017. A reconciliation of Net income/(loss) to Adjusted Net income/(loss) and Adjusted earnings/(loss) per share basic and diluted is set forth in the financial tables contained in this release.

Adjusted EBITDA for the years ended December 31, 2018 and 2017 was $260.9 million and $128.0 million, respectively. A reconciliation of EBITDA and Adjusted EBITDA to net cash provided by/(used in) operating activities is set forth in the financial tables contained in this release.

For the years ended December 31, 2018 and 2017, vessel operating expenses were $128.9 million and $101.4 million, respectively. This increase was primarily due to the increase in the average number of vessels to 87.7 from 69.6. Vessel operating expenses for the years ended December 31, 2018 and 2017 include pre-delivery and pre-joining expenses of $1.1 million and $2.3 million, respectively, incurred 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 years ended December 31, 2018 and 2017, were $3,994 and $3,906, respectively.

Dry docking expenses for the years ended December 31, 2018 and 2017 were $9.0 million and $4.3 million, respectively. During the year ended December 31, 2018, eight of our vessels underwent and seven of them completed their periodic dry docking surveys during the same period. During the year ended December 31, 2017, four vessels underwent and completed their periodic dry docking surveys.

General and administrative expenses for the years ended December 31, 2018 and 2017 were $34.0 million and $31.0 million, respectively. The formation of our new subsidiary, Star Logistics, the increase of the number of our employees due to the recent expansion of our fleet and a higher USD/EUR exchange rate during the year ended December 31, 2018 resulted in higher payroll cost compared to the corresponding period in 2017. In addition, general and administrative expenses increased as a result of the listing of our common shares on the Oslo Stock Exchange. Our average daily net cash general and administrative expenses per vessel together with management fees for the year ended December 31, 2018 were reduced to $1,004 from $1,094, during the corresponding period in 2017 (please see the table at the end of this release for the calculation of the Average daily Net Cash G&A expenses per vessel).

Charter-in hire expense for the years ended December 31, 2018 and 2017 was $92.9 million and $5.3 million, respectively. The increase in charter-in hire expense was due to an increase in charter-in days to 5,089 in the year ended December 31, 2018 (attributable to the activities of our new subsidiary Star Logistics, which was created in the fourth quarter of 2017) from 428 in the year ended December 31, 2017 (attributable to the charter-in of the vessel Astakos and Star Logistics).

Management fees for the years ended December 31, 2018 and 2017 were $11.3 million and $7.5 million, respectively. The increase is attributable to the new management agreements entered into in connection with the acquired fleets during the third quarter of 2018.

Interest and finance costs net of interest and other income/ (loss) for the years ended December 31, 2018 and 2017 were $71.8 million and $47.5 million, respectively. The increase is mainly attributable to the increase in (i) the weighted average balance of our outstanding indebtedness of $1,234.6 million during the year ended December 31, 2018 compared to $1,027.1 million for the same period in 2017 and (ii) LIBOR between the corresponding periods.

Liquidity and Capital Resources
Cash Flows

Net cash provided by operating activities for the years ended December 31, 2018 and 2017 was $169.0 million and $82.8 million, respectively.

The positive change was due to the significant recovery of the dry bulk market during the year ended December 31, 2018, which resulted in a significantly higher TCE rate of $13,768 compared to $10,393 for the year ended December 31, 2017. The increase in TCE rates as well as the increase in the average number of vessels in our fleet is reflected in the increase of Adjusted EBITDA to $260.9 million for the year ended December 31, 2018 from $128.0 million for the corresponding period in 2017. This positive effect was partially offset by (i) a net working capital outflow of $20.9 million during the year ended December 31, 2018 compared to a net working capital inflow of $1.7 million for the year ended December 31, 2017 and (ii) by higher net interest expense for the year ended December 31, 2018 compared to the corresponding period in 2017.

Net cash used in investing activities for the years ended December 31, 2018 and 2017 was $327.2 million and $127.1 million, respectively.

For the year ended December 31, 2018, net cash used in investing activities mainly consisted of $330.5 million paid for advances and other capitalized expenses for our newbuilding and newly acquired vessels delivered during the period as well as for the acquisition and installation of scrubber equipment for certain of our vessels, offset partially by hull and machinery insurance proceeds of $3.3 million.

For the year ended December 31, 2017, net cash used in investing activities consisted of:

  • $143.7 million paid for advances and other capitalized expenses for our newbuilding and newly delivered vessels;
    offset partially by:
  • $15.2 million of proceeds from the sale of the Star Eleonora and the Star Vanessa; and
  • $1.4 million of hull and machinery insurance proceeds.

Net cash provided by financing activities for the years ended December 31, 2018 and 2017 was $98.6 million and $122.0 million, respectively.

For the year ended December 31, 2018, net cash provided by financing activities mainly consisted of:

  • $988.0 million of proceeds from financing including financing from leases;
    offset partially by:
  • $875.0 lease and debt obligations paid in aggregate in connection with: (i) the regular amortization of outstanding vessel financings and capital lease installments, (ii) early repayment due to the refinancing of certain of our facilities; (iii) payments under our cash sweep mechanism and (iv) full repayment of deferred debt amounts;
  • $3.1 million used to repurchase 341,363 of our common shares in open market transactions; and
  • $12.0 million of financing fees paid in connection with the new financing agreements.

For the year ended December 31, 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;
  • $30.8 million of proceeds drawn under the newly entered loan facilities;
  • $50.0 million proceeds from the issuance of our 8.30% senior unsecured notes due 2022, used to redeem in full our 2019 Notes in December 2017; and
  • $50.4 million of proceeds, net of aggregate fees and expenses of $1.0 million, from a private placement of our common shares, which was completed in February 2017;
    offset partially by:
  • $36.3 million paid in aggregate in connection with: (i) the regular amortization of outstanding vessel financings and capital lease installments, (ii) early repayment due to the refinancing of a loan facility and due to the sale of a vessel; (iii) payments to our lenders in accordance with the terms of our restructuring agreements;
  • $50.0 million used to redeem in full the 2019 Notes; and
  • $2.9 million of financing fees, paid in connection with (i) the restructuring of our indebtedness, (ii) a new facility entered during the corresponding period; (iii) the refinancing of the Heron Vessels Facility (as defined in our 2017 20-F) and (iv) the issuance of our 8.30% senior unsecured notes due 2022.

Summary of Selected Data

         
  Fourth quarter 2018   Fourth quarter 2017  
Average number of vessels (1)   106.4       70.6    
Number of vessels (2)   107       71    
Average age of operational fleet (in years) (3)     8.0       8.2    
Ownership days (4)   9,788       6,495    
Available days (5)   9,633       6,495    
Charter-in days (6)   1,493         197    
Fleet utilization (7)   98.6 %     100.0 %  
Daily Time Charter Equivalent Rate (8) $14,140     $13,860    
Average daily OPEX per vessel (9) $3,938     $3,911    
Average daily OPEX per vessel (excl. pre-delivery expenses) $3,938     $3,850    
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) $969     $1,094    
         
  Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
Average number of vessels (1)   87.7       69.6    
Number of vessels (2)   107       71    
Average age of operational fleet (in years) (3)     8.0       8.2    
Ownership days (4)   32,001       25,387    
Available days (5)   31,614       25,272    
Charter-in days (6)   5,089       428    
Fleet utilization (7)   99.0 %     99.6 %  
Daily Time Charter Equivalent Rate (8) $13,768     $10,393    
Average daily OPEX per vessel (9) $4,027     $3,995    
Average daily OPEX per vessel (excl. pre-delivery expenses) $3,994     $3,906    
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses) (10) $1,004     $1,094    
         

(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 scrubber installation. 
(6) Charter-in days are the total days that we charter-in third-party vessels.
(7)  Fleet utilization is calculated by dividing (x) Available days plus Charter-in days by (y) Ownership days plus charter-in days for the relevant period. 
(8)  Represents the weighted average daily TCE rates of our operating fleet (including owned fleet and fleet under charter-in arrangements). TCE rate is a measure of the average daily 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, charter-in hire expense, amortization of fair value of above/below market acquired time charter agreements and provision for onerous contracts, 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. Our method of computing TCE may not necessarily be comparable to TCE of other companies due to differences in methods of calculation. The above reported TCE rates for the fourth quarter of 2017 and the year ended December 31, 2017 were calculated excluding Star Logistics. We have excluded the revenues and expenses of Star Logistics because it was formed, in October 2017, and its revenues and expenses had not yet normalized in those periods, which obscure material trends of our TCE rates. 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 for those periods. For the detailed calculation please see the table at the end of this release with the reconciliation of Voyage Revenues to TCE. We include TCE rate, a non-GAAP measure, as it provides additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance. 
(9) Average daily OPEX per vessel is calculated by dividing vessel operating expenses by Ownership days.
(10) Please see the table at the end of this release for the reconciliation to General and administrative expenses, the most directly comparable GAAP measure. We believe that Average daily Net Cash G&A expenses per vessel is a useful measure for our management and investors for period to period comparison with respect to our financial performance since such measure eliminates the effects of non-cash items which may vary from period to period, are not part of our daily business and derive from reasons unrelated to overall operating performance.

Unaudited Consolidated Statements of Operations

 

                   
(Expressed in thousands of U.S. dollars except for share and per share data)   Fourth quarter 2018   Fourth quarter 2017   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
                   
                   
Revenues:                  
Voyage revenues   $   209,433     $   107,707     $   651,561     $   331,976    
Total revenues     209,433       107,707       651,561       331,976    
                   
Expenses:                  
Voyage expenses      (46,628 )     (15,252 )     (121,596 )     (64,682 )  
Charter-in hire expense     (25,005 )       (3,128 )     (92,896 )       (5,325 )  
Vessel operating expenses      (38,544 )     (25,399 )     (128,872 )     (101,428 )  
Dry docking expenses     (3,125 )     (362 )     (8,970 )     (4,262 )  
Depreciation      (30,814 )     (21,129 )     (102,852 )     (82,623 )  
Management fees     (4,042 )     (1,925 )     (11,321 )       (7,543 )  
Loss on bad debt     (722 )       -        (722 )       -     
General and administrative expenses     (7,223 )     (5,860 )     (33,972 )     (30,955 )  
Gain/(Loss) on forward freight agreements and bunker swaps       (1,389 )       (300 )     (447 )       (841 )  
Impairment loss        (17,784 )       -          (17,784 )       -     
Other operational loss       (230 )       (266 )       (191 )     (989 )  
Other operational gain       -          138         -        2,918    
Gain/(Loss) on sale of vessels       -          2,996         -        2,598    
                   
Operating income/(loss)     33,927       37,220       131,938       38,844    
                   
Interest and finance costs     (22,024 )     (13,585 )     (73,715 )     (50,458 )  
Interest and other income/(loss)     836       980       1,866       2,997    
Gain/(Loss) on derivative financial instruments       -        179       707       246    
Loss on debt extinguishment       (313 )       (871 )     (1,783 )     (1,257 )  
Total other expenses, net     (21,501 )     (13,297 )     (72,925 )     (48,472 )  
                   
Income/(Loss) before equity in investee     12,426       23,923       59,013       (9,628 )  
                   
Equity in income/(loss) of investee     (50 )     29       45       93    
                   
Income/(Loss) before taxes   $    12,376     $    23,952     $    59,058     $    (9,535 )  
                   
US Source Income taxes        (61 )       (68 )       (61 )       (236 )  
                   
Net income/(loss)   $    12,315     $    23,884     $    58,997     $    (9,771 )  
                   
Earnings/(loss) per share, basic   $   0.13     $   0.37     $   0.77     $   (0.16 )  
Earnings/(loss) per share, diluted    $   0.13     $   0.37     $   0.76     $   (0.16 )  
Weighted average number of shares outstanding, basic     92,457,989       64,080,657       77,061,227       63,034,394    
Weighted average number of shares outstanding, diluted      92,515,671       64,259,874       77,326,111       63,034,394    
                   


Unaudited Consolidated Condensed Balance Sheets

   
(Expressed in thousands of U.S. dollars)  
   
ASSETS   December 31, 2018   December 31, 2017  
Cash and cash equivalents   $   204,921   $   257,911  
Vessel held for sale       5,949       -   
Other current assets       87,967       54,715  
TOTAL CURRENT ASSETS       298,837       312,626  
           
Advances for vessels under construction and acquisition of vessels      60,944     48,574  
Vessels and other fixed assets, net     2,657,233     1,775,081  
Other non-current assets     6,249     9,483  
TOTAL ASSETS   $    3,023,263   $    2,145,764  
           
Current portion of long-term debt and finance lease commitments   $   176,241   $   189,306  
Other current liabilities     55,873     29,968  
TOTAL CURRENT LIABILITIES       232,114       219,274  
           
Long-term debt and finance lease commitments non-current(net of unamortized deferred finance fees of $13,447 and $7,154, respectively)     1,217,872     789,878  
Senior Notes (net of unamortized deferred finance fees of $1,590 and $2,000, respectively)     48,410     48,000  
Other non-current liabilities     4,222     560  
TOTAL LIABILITIES   $    1,502,618   $    1,057,712  
           
STOCKHOLDERS' EQUITY     1,520,645     1,088,052  
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $    3,023,263   $    2,145,764  
           

Unaudited Cash Flow Data

(Expressed in thousands of U.S. dollars)   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
 
                 
Net cash provided by / (used in) operating activities    $   169,009     $   82,804    
                 
Net cash provided by / (used in) investing activities        (327,196 )       (127,101 )  
                 
Net cash provided by / (used in) financing activities       98,564         122,035    
                   

EBITDA and Adjusted EBITDA Reconciliation

We include EBITDA herein since it is a basis upon which we assess our liquidity position. It is also used by our lenders as a measure of our compliance with certain loan covenants and we believe that it presents useful information to investors regarding our ability to service and/or incur indebtedness.

EBITDA does not represent and should not be considered as an alternative to cash flow from operating activities or net income, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

To derive Adjusted EBITDA from EBITDA, we excluded non-cash gains/losses such as those related to sale of vessels, stock-based compensation expense the write-off of the unamortized fair value of above/below market acquired time charters, impairment losses, the write-off of claims receivable and loss from bad debt, change in fair value of forward freight agreements and bunker swaps, provision for onerous contracts, and the equity in income/(loss) of investee, if any, which may vary from period to period and for different companies and because these items do not reflect operational cash inflows and outflows of our fleet.

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

                   
(Expressed in thousands of U.S. dollars)   Fourth quarter 2018   Fourth quarter 2017   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
Net cash provided by/(used in) operating activities   $   59,836     $   44,329     $   169,009     $   82,804    
Net decrease / (increase)  in current assets     (386 )     2,147       39,277       8,628    
Net increase / (decrease) in operating  liabilities, excluding current portion of long term debt     2,780       (3,314 )     (20,469 )     (10,452 )  
Impairment loss       (17,784 )       -          (17,784 )       -     
Loss on debt extinguishment       (313 )       (871 )       (1,783 )       (1,257 )  
Stock – based compensation     (337 )     (414 )     (8,072 )     (9,267 )  
Amortization of deferred finance charges     (1,097 )     (685 )     (3,253 )     (2,660 )  
Unrealized and accrued gain/(loss) on derivative financial instruments       -        582       1,230       1,821    
Unrealized gain / (loss) on forward freight agreements and bunker swaps       (384 )       77         (1,339 )       36    
Total other expenses, net     21,501       13,297       72,925       48,472    
Fair value hedge adjustment     286         -        1,609         -     
Other non-current assets       -          -        1,972         -     
Gain on hull and machinery claims       184         137         309         456    
Loss on bad debt       (722 )       -          (722 )       -     
Income tax       61         68         61         236    
Gain/(Loss) on sale of vessel       -          2,996         -          2,598    
Equity in income/(loss) of investee     (50 )     29       45       93    
EBITDA   $    63,575     $    58,378     $    233,015     $    121,508    
                   
Equity in (income)/loss of investee       50         (29 )       (45 )       (93 )  
Unrealized (gain)/loss on forward freight agreements and bunker swaps       384         (77 )       1,339         (36 )  
Gain on sale of vessel       -          (2,996 )       -          (2,598 )  
Reversal of provision for onerous contracts       (473 )       -          -          -     
Stock-based compensation       337         414         8,072         9,267    
Loss on bad debt       722         -          722         -     
Impairment loss       17,784         -          17,784         -     
Adjusted EBITDA   $    82,379     $    55,690     $    260,887     $    128,048    
                   

Net income/(Loss) and Adjusted Net income/(Loss) Reconciliation and calculation of Adjusted Earnings/(Loss) Per Share

To derive Adjusted Net Income and Adjusted Earnings/(Loss) Per Share from Net Income, we excluded non-cash items, as provided in the table below. We believe that Adjusted Net Income and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as gain/(loss) on sale of assets, gain/(loss) on derivatives, impairment losses and other items which may vary from year to year, are not part of our daily business and derive from 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 GAAP measures alone. Our method of computing Adjusted Net Income and Adjusted Earnings/ (Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.

The following table reconciles Net income / (loss) to Adjusted Net income / (loss):

                   
(Expressed in thousands of U.S. dollars except for share and per share data)   Fourth quarter 2018   Fourth quarter 2017   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
Net income / (loss)   $    12,315     $    23,884     $    58,997     $    (9,771 )  
Amortization of fair value of below market acquired time charter agreements       (1,116 )       -          (1,820 )       -     
Loss on bad debt       722         -          722         -     
Stock – based compensation     337       414       8,072       9,267    
Unrealized (gain) / loss on forward freight agreements and bunker swaps       384         (77 )     1,339         (36 )  
Reversal of provision for onerous contracts       (473 )       -          -          -     
Unrealized (gain) / loss on derivative financial instruments       -        (532 )     (734 )     (2,275 )  
(Gain) / loss on sale of vessel       -          (2,996 )       -        (2,598 )  
Impairment loss       17,784         -          17,784         -     
Amortization of deferred gain from sale and leaseback       -          -          -          (52 )  
Loss on debt extinguishment       313         871       1,783       1,257    
Equity in income/(loss) of investee     50       (29 )     (45 )     (93 )  
Adjusted Net income / (loss)   $    30,316     $    21,535     $    86,098     $    (4,301 )  
Weighted average number of shares outstanding, basic     92,457,989       64,080,657       77,061,227       63,034,394    
Weighted average number of shares outstanding, diluted     92,515,671       64,259,874       77,326,111       63,034,394    
Adjusted Basic Earnings / (Loss) Per Share   $    0.33     $    0.34     $    1.12     $    (0.07 )  
Adjusted Diluted Earnings / (Loss) Per Share   $    0.33     $    0.34     $    1.11     $    (0.07 )  
                                   

Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation

(In thousands of U.S. Dollars, except for TCE rates)                    
    Fourth quarter 2018   Fourth quarter 2017   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017    
Voyage revenues   $   209,433     $   103,623   a) $   651,561     $   327,892   d)  
Less:                    
Voyage expenses     (46,628 )     (13,604 ) b)   (121,596 )     (63,034 ) e)  
Charter-in hire expenses       (25,005 )       -    c)     (92,896 )     (2,197 ) f)  
Time Charter equivalent revenues   $    137,800     $    90,019     $    437,069     $    262,661      
Reversal of provision for onerous contracts       (473 )       -          -          -       
Amortization of fair value of below/above market acquired time charter agreements       (1,116 )       -          (1,820 )       -       
Adjusted Time Charter equivalent revenues   $    136,211     $    90,019     $    435,249     $    262,661      
                     
Available days for fleet       9,633       6,495       31,614       25,272      
Daily Time Charter Equivalent Rate ("TCE")   $    14,140     $    13,860     $    13,768     $    10,393      
                     
  1. Voyage revenues used to calculate TCE rate for the fourth quarter of 2017 consist of (1) reported voyage revenues of $107.7 million minus (2) voyage revenues of $4.1 million attributable to Star Logistics.
  2. Voyage expenses used to calculate TCE rate for the fourth quarter of 2017 consist of (1) reported voyage expenses of $15.3 million minus (2) voyage expenses of $1.7 million attributable to Star Logistics.
  3. Reported Charter-in hire expenses for the fourth quarter of 2017 of $3.1 million attributable to Star Logistics, was excluded from the calculation of TCE rate.
  4. Voyage revenues used to calculate TCE rate for the year ended December 31, 2017 consist of (1) reported voyage revenues of $332.0  million minus (2) voyage revenues of $4.1 million attributable to Star Logistics.
  5. Voyage expenses used to calculate TCE rate for the year ended December 31, 2017 consist of (1) reported voyage expenses of $64.7 million minus (2) voyage expenses of $1.7 million attributable to Star Logistics.
  6. Charter-in hire expenses  used to calculate TCE rate for the year ended December 31, 2017 consist of (1) reported charter-in hire expenses of $5.3 million minus (2) charter-in hire expenses of $3.1 million attributable to Star Logistics.

Average daily Net Cash G&A expenses per vessel Reconciliation

(In thousands of U.S. Dollars, except for daily rates)                  
               
    Fourth quarter 2018   Fourth quarter 2017   Twelve months ended December 31, 2018   Twelve months ended December 31, 2017  
General and administrative expenses   $   7,223     $   5,860     $   33,972     $   30,955    
Plus:                  
Management fees     4,042       1,925       11,321       7,543    
Less:                  
Stock – based compensation       (337 )       (414 )       (8,072 )     (9,267 )  
One-time expenses       -          (52 )       -        (989 )  
Net Cash G&As expenses (excluding one-time expenses)   $    10,928     $    7,319     $    37,221     $    28,242    
                   
Ownership days       9,788       6,495       32,001       25,387    
Charter-in days        1,493       197       5,089       428    
Average daily Net Cash G&A expenses per vessel (excluding one-time expenses)   $    969     $    1,094     $    1,004     $    1,094    
                   

Conference Call details:

Our management team will host a conference call to discuss our financial results on Tuesday, February 12, 2019 at 11:00 a.m., Eastern Time (ET).

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(877) 553-9962 (from the US), 0(808) 238-0069 (from the UK) or + (44) (0) 2071 928 592 (Standard International Dial In). Please quote "Star Bulk."

A replay of the conference call will be available until Wednesday, February 19, 2019. The United States replay number is 1(866) 331-1332; from the UK 0(808) 238-0667; the standard international replay number is (+44) (0) 3333 009 785 and the access code required for the replay is: 3128607#.

Slides and audio webcast:

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

About Star Bulk

Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk’s vessels transport major bulks, which include iron ore, coal and grain, and minor bulks, which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Oslo, New York, Cyprus and Geneva. Its common stock trades on the Nasdaq Global Select Market and on the Oslo Stock Exchange under the symbol “SBLK”. On a fully delivered basis, Star Bulk will have a fleet of 111 vessels, with an aggregate capacity of 12.67 million dwt, consisting of 17 Newcastlemax, 20 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 17 Ultramax and 11 Supramax vessels with carrying capacities between 52,055 dwt and 209,537 dwt. Where we refer to information on a “fully delivered basis,” we are referring to such information after giving effect to the delivery of three newbuilding vessels The Company also holds call options and has sold respective put options on four Capesize vessels, with exercise dates in early April 2019.

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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Distribution channels: Shipping, Storage & Logistics


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