Star Bulk Reports Profits for Q2, H1 2013

Tuesday, August 27, 2013
Photo: Star Bulk

Star Bulk Carriers Corp., 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 first half of 2013.

Net profit for the second quarter of 2013 was $0.8 million compared to a loss of $4.6 million during the same quarter in 2012

Net profit for the first half of 2013 was $2 million compared to a loss of $4.5 million during the same period of the previous year.

Spyros Capralos, President and Chief Executive Officer of Star Bulk, commented, “Star Bulk is a completely different company, following the successful equity raise of $80.1 million this quarter. Not only its market capitalization has grown to over $150 million today, as compared to about $30 million prior to the offering, but the company has also implemented a growth strategy by ordering four newbuilding vessels and assumed the management of additional third party vessels.

We are pleased to announce Net Income of $0.8 million and Adjusted Net Income of $2.6 million for the three months ended June 30, 2013, as compared to a loss of $4.6 million and a loss of $2.9 million respectively in the second quarter of 2012. Our positive results were mainly attributed to our ability to reduce our operating expenses and utilize our operational and ship management capacity and know-how, as a response to the overall market weakness.

In July we completed successfully our backstopped equity rights offering, which resulted in gross proceeds of approximately $80.1 million. This offering validates the confidence from our shareholders in the Company and our strategy. The majority of the funds raised are being used to fund the purchase price for the two 180,000 dwt Capesize and two 60,000 dwt Ultramax fuel-efficient newbuildings from quality shipyards.

During this quarter, our strategic decision to utilize Star Bulk’s ship management capabilities through third-party vessels management has started producing tangible results. Today, Star Bulk manages 6 third party dry bulk vessels and we offer management services to 7 third party product tankers. We have agreed to take under management another 3 dry bulk carriers within the following 2 months. As a result of the above arrangements, our estimated annual revenue from third party vessels management will be around $3.2 million. This will bring the total number of owned and managed vessels in the drybulk segment to 26.

We welcome the recent capesize market rise, as many market participants interpret this as the first sign of a market recovery. In this context, we feel optimistic concerning the timing of our agreements regarding the aforementioned newbuilding vessels.

We anticipate demand for dry bulk commodities from most developing countries to continue to grow and the freight market to start showing signs of improvement due to the lower orderbook, slow steaming and the scarcity of bank financing."

starbulk.com

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

SUNY Maritime Takes the Ice Bucket Challenge

Taking full advantage of one of the summer’s hottest days, twelve administrators and staff at the State University of New York (SUNY) Maritime College today took the Ice Bucket Challenge,

Fraunhofer Researchers Improve Underwater Images

Videos and images of the submarine world are important for the maritime industry. Researchers from Fraunhofer IGD will show how underwater images can be improved

Finance

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

News

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Fuel-saving Modifications for Containerships’ Engines

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency

Tropical Storm Dolly Heads toward Mexico

NOAA's National Hurricane Center issued a tropical storm warning in effect from Cabo Rojo to Barra El Mezquital, Mexico as Tropical Storm Dolly approaches the country’s eastern coast.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1818 sec (6 req/sec)