• Net Income: $42 million for Q4 2024.
• Adjusted Net Income: $41 million or $0.35 adjusted earnings per share.
• Adjusted EBITDA: $104 million for the quarter.
• Excess Cash Flow: $17.6 million for Q4 2024.
• Dividend Per Share: $0.09, payable on or about March 18, 2025.
• Share Repurchase: 500,000 shares repurchased for $7.4 million at an average price of $14.83 per share.
• Total Shares Outstanding: 117,127,531 as of the call date.
• Proforma Total Debt: $1.3 billion.
• Time Charter Equivalent Rate: $16,129 per vessel per day.
• Daily OPEX and Net Cash G&A Expenses: $6,320 per vessel per day.
• Cash Flow from Operating Activities: $76 million for Q4 2024.
• Ending Cash Balance: $441 million at the end of Q4 2024.
• Debt-Free Vessels: 13 vessels with an aggregate market value of $250 million.
• Annualized Synergies from Eagle Bulk Integration: $50 million achieved ahead of schedule.
• OPEX for Q4 2024: $5,056 per day.
• G&A Expenses for Q4 2024: $1,264 per day.
• Fleet Size: 155 vessels with an average age of 11.8 years.

• Warning! GuruFocus has detected 2 Warning Sign with SBLK.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Star Bulk Carriers Corp (NASDAQ:SBLK) reported a net income of $42 million for Q4 2024, with an adjusted net income of $41 million.
• The company achieved an adjusted EBITDA of $104 million for the quarter.
• Star Bulk Carriers Corp (NASDAQ:SBLK) declared a dividend of $0.09 per share, payable in March 2025, as part of its new dividend policy.
• The integration of Eagle Bulk resulted in synergies of approximately $22 million, reaching the $50 million annualized synergy target ahead of schedule.
• The company has 13 debt-free vessels with a market value of $250 million, enhancing its financial flexibility.

Negative Points

• Star Bulk Carriers Corp (NASDAQ:SBLK) has a significant total debt of $1.3 billion, which could pose financial risks.
• The company reported a decrease in cash balance from $473 million to $441 million by the end of Q4 2024.
• The dry bulk trade is projected to grow by only 0.4% in tons and 0.9% in ton miles in 2025, indicating a potential slowdown in demand.
• Chinese dry bulk imports are expected to slow down in 2025, which could impact the company's revenue.
• The market for older vessels has weakened, with prices falling, which may affect the company's fleet renewal strategy.

Q & A Highlights

Q: Can you provide more details on the cost synergies and savings from the Eagle Bulk merger? Have we reached a floor for OPEX per day, and are there any inflationary counterforces? A: Simos Spyrou, Co-Chief Financial Officer, stated that there is still room for improvement, particularly in crew wages and operating expenses. The company is restructuring to realize full efficiencies. Hamish Norton, President, added that while cost savings are evident, there are also potential revenue synergies that are harder to quantify.

Q: What is the ton-mile advantage of Brazilian soybeans versus US soybeans, and how would a shift in Chinese imports affect this? A: Petros Pappas, CEO, estimated that Brazilian soybeans have a 10% to 15% longer ton-mile advantage compared to US soybeans. Additionally, South American ports may create more congestion due to less efficiency compared to US ports.

Q: Regarding the fleet renewal program, how is the market appetite for older vessels, and what are your plans for selling them? A: Petros Pappas noted that prices for older vessels have fallen more than for younger vessels. The company expects market improvement in the coming months, which will provide opportunities to sell older and less efficient vessels.

Q: How should we calculate excess cash for capital allocation, and is it as simple as operating cash flow minus debt payments and dry docks? A: Christos Begleris, Co-Chief Financial Officer, confirmed that excess cash is calculated as operating cash flow minus debt principal repayments and dry dock expenses, subject to a cash threshold per vessel. This determines the amount available for dividends and other corporate purposes.

Q: Are the seven vessels chartered under long-term agreements at fixed rates, and what portion of the $26 million in chartering expenses is attributable to these vessels? A: Petros Pappas confirmed that the seven vessels are chartered at fixed rates for the initial seven-year duration. Simos Spyrou added that approximately 50% of the $26 million chartering expenses are attributable to these long-term charters.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.