Star Bulk Pushes Delivery of Five Vessels to Boost Liquidity

The Athens-based dry bulk shipping company Star Bulk Carriers decided to postpone the delivery of five Newcastlemax vessels from 2016 to 2017 and 2018 in an attempt to improve its liquidity in a slow dry bulk market.

Three of the vessel deliveries were pushed from the first quarter of 2016 to the first and third quarters of 2017, while the other two are expected to join the company’s fleet in the first quarter of 2018. During the last twelve months, the company has pushed back the delivery of sixteen vessels for 124 months in total.

Star Bulk also terminated two shipbuilding contracts, reducing the company’s newbuilding program by four vessels.

Since December 2015, Star Bulk agreed to sell ten vessels with total equity proceeds of USD 56 million after repayment of debt and CAPEX obligations.

Over the last 14 months, the company has disposed of 23 vessels for total equity proceeds of USD 86.2 million after repayment of debt and CAPEX obligations.

“The last twelve months have proven to be the most challenging market for dry bulk shipping over the last 30 years, with lacklustre demand and persistent oversupply. Amidst such a depressed market, our top priority has been and remains, to improve our liquidity position and strengthen our balance sheet and financial runway,” Petros Pappas, Chief Executive Officer of Star Bulk, said.

Pappas added that it has “agreed to adjust the remaining CAPEX obligations for the remaining vessels under construction, saving in aggregate USD 223.1 million of CAPEX. We have also agreed to defer USD 188 million of CAPEX obligations for 5 Newcastlemax vessels from 2016 to 2017‐2018.

During the fourth quarter of 2015, Star Bulk reported a net loss of USD 311 million, compared to USD 8.1 million recorded in the fourth quarter a year earlier.

The company’s full year net loss reached USD 458.2 million, compared to USD 11.7 million seen in 2014.