Star Bulk Narrows 2Q Loss as Revenues Rise
- Business & Finance
Greek dry bulk shipping firm Star Bulk has managed to reduce its loss for the second quarter of this year to USD 10.3 million from USD 32.9 million posted in the same quarter a year earlier.
Net loss for the first half of this year stood at USD 26.2 million, against a net loss of USD 81.7 million recorded in 1H 2016.
In 2Q 2017, total net voyage revenues were USD 62 million, compared to USD 34.9 million seen in the second quarter of 2016. This increase was primarily driven by the increase in charter hire rates, which led to a TCE rate of USD 9,746 compared to a TCE rate of USD 5,609 in the same period last year, representing a 74% rise.
“Given our Q2 2017 average OPEX and net cash G&A expenses per vessel … we have an adjusted EBITDA of USD 25.7 million, compared to an adjusted EBITDA figure of USD 1.6 million in Q2 2016. This marks the fifth consecutive increase in our quarterly Adjusted EBITDA since the first quarter of 2016 when the dry bulk market troughed,” Petros Pappas, Chief Executive Officer of Star Bulk, commented.
In July, the company took delivery of MV Diva, a Supramax vessel with carrying capacity of 56,582 dwt, built at Jiangsu Hantong Ship Heavy Industry China in 2011.
Furthermore, in August, the company paid USD 3.6 million to all parties under its restructuring agreements, representing the 20% of the equity used for the acquisition of Star Charis, Star Suzanna and Diva.
Star Bulk inked in June a new loan agreement with ABN AMRO Bank for USD 30.8 million to partially finance the acquisition of two Kamsarmaxes bought earlier this year and to refinance all of the outstanding debt under the Heron Vessel CiT Facility.
“On the financing front, we have drawn down the full facility amount to partially finance the acquisition of the 2 … Kamsarmaxes …, which along with the successful refinancing in full of one of our bank facilities, demonstrates the solid support from the company’s lenders and enhances our financial flexibility going forward,” Pappas concluded.
Currently, Star Bulk’s fleet includes 71 operating vessels and 3 newbuilding vessels under construction in China. All of the newbuilds are expected to be delivered during 2017 and 2018. Additionally, the company has one chartered‐in Supramax vessel, under a time charter expiring in September 2017.