Better Rates Reduce Star Bulk’s Loss
Improved charter rates helped the Greek dry bulk shipping company Star Bulk Carriers reduce its net loss by more than two thirds in the first quarter of 2017 as compared to the same period a year earlier.
The company reported a net loss of USD 15.95 million, a 67.3% reduction as compared to a USD 48.79 net loss recorded in the first quarter of 2016.
Voyage revenues in the quarter ended March 31, 2017 rose to USD 64.87 million as compared to USD 46.26 million in voyage revenues reported for the same period last year.
The company’s average daily Time Charter Equivalent (TCE) rate increased from USD 4,331 in Q1 2016 to USD 8,176 in Q1 2017. The increase was partially offset by a lower average number of vessels in the company’s fleet during the first quarter of 2017 of 67.3 compared to 71.7 during the first quarter of 2016.
”For the first quarter of 2017, our average TCE per vessel was $8,176/day, while our average utilization was 99.2%. We have also fixed approximately 81% of our available days in the 2nd quarter of 2017 at an average TCE of $10,150/day,” Star Bulk said.
”Given our Q1 2017 average OPEX and net cash G&A expenses per vessel, adjusted for pre‐delivery expenses and one‐time restructuring costs of $3,949/day and $1,133/day respectively, we have an EBITDA of $18.1 million, compared to an EBITDA figure of ‐$7.3 million in Q1 2016. ”
On May 23, 2017, Star Bulk executed a binding term‐ sheet with ABN AMRO N.V., in order to partially finance the recently acquired Kamsarmax vessels Star Charis and Star Suzanna, up to an amount of USD 16 million in aggregate.
The 2013-built Star Charis and Star Suzanna were delivered to Star Bulk on March 23 and May 15, respectively.