Star Bulk Carriers Reports 1Q Loss, Adds 3 Vessels.

 

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."  

 

Star Bulk has added three vessels during this period. On April 1, April 4 and May 30, 2016, the vessels Indomitable, Obelix and Star Michele respectively, were delivered to their buyers. 

 

On June 6, 2016, it took delivery of the Newcastlemax vessel Star Libra (ex-HN 1372), which is financed under a bareboat charter accounted for as a capital lease, from CSSC (Hong Kong) Shipping Company Limited. 

 

On June 6, 2016, it  took delivery of the Capesize vessel Star Taurus (ex-HN 1339), which was sold to a third party pursuant to a preexisting agreement upon its delivery from the shipyard.

 

Star Bulk Carriers  has  a loss of $1.11 per share for the qatar. Losses, adjusted for asset impairment costs and non-recurring costs, came to 87 cents per share.

 

The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for a loss of 91 cents per share. 

 

"We continue implementing cost containment initiatives and maximizing internal efficiencies, resulting in our average daily Opex per vessel excluding pre-delivery expenses being reduced by 19% y-o-y to $3,591. 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," Petros said.

 

The company has entered into standstill agreements covering debt principal repayments as well as certain covenants with lenders for period of three months ending on August 31 2016.

 

Star Bulk entered standstill deals covering debt principal repayments, certain covenants with lenders for a period of 3 months ending August 31.