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Star Bulk Carriers reports loss for 1Q16

World Coal,

Greece-based global shipping company, Star Bulk Carriers Corp., has reported a loss of US$48.8 million in its first quarter results (ended 31 March 2016).

The shipping company focused on the transportation of dry bulk cargoes posted revenue of $46.3 million in the period, compared to US$45.4 million for 1Q15. This increase is primarily driven by the increase of the average number of vessels to 72.7 in 1Q16, from 65.1 in 1Q15, and was partially offset by lower charterhire rates prevailing in the dry bulk market during the 1Q16, compared to the first quarter of 2015.

For the first quarter of 2016, operating loss was US$34.9 million compared to operating loss of US$33.9 million for the first quarter of 2015.

Net loss was US$48.8 million (US$1.11 loss per basic and diluted share), calculated on 43 824 122 shares, which is the weighted average number of basic and diluted shares, giving effect to the 1 to 5 reverse stock split effective 20 June 2016 (reverse split-adjusted basis).

Petros Pappas, Chief Executive Officer of Star Bulk, commented: “The first quarter of 2016 was the worst of the last 30 years, as freight rates remained below operating costs and vessel values reached new lows across all dry bulk vessel classes. We continue implementing cost containment initiatives and maximising internal efficiencies, resulting in our average daily OPEX per vessel excluding pre-delivery expenses being reduced by 19% y/y to US$3591. This reduction was not at the expense of the quality services provided to our customers and the maintenance of our vessels, as evidenced by the fact that 91% of vessels under our management has been assigned 5 – star rating from Rightship. In the last few months we have entered into negotiations with our banks, with which we have long standing relationships, to defer principal payments and waive or substantially relax financial covenants, so as to preserve liquidity well into 2019. In order to finalise these discussions and relevant documentation, we have entered into standstill agreements covering debt principal repayments as well as certain covenants with our Lenders for a period of three months ending on 31 August 2016.”

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