In this episode of Capital Link's Trending News Webinar Series, Star Bulk Carriers SBLK President Mr. Hamish Norton offered his insights and a strategically detailed look at how the company approaches shareholder value creation through disciplined capital allocation. Star Bulk makes capital deployment decisions anchored in measurable returns, with a readiness to adapt to shifts in asset pricing, freight rates, and regulatory pressures. Debt reduction reinforces this capital return policy. Star Bulk amortize ...

Financial Data and Key Metrics Changes - The company reported a net income of $40,000 with an adjusted net income of $13,200,000 or $0.11 per share [4] - Adjusted EBITDA for the quarter was $69,000,000 [4] - Total cash at the end of the quarter was $431,000,000, down from $437,000,000 at the beginning of the quarter [7] - Total debt stood at $1,120,000,000, with additional liquidity of $115,000,000 from undrawn revolver facilities [5] Business Line Data and Key Metrics Changes - The time charter equivalent rate was $13,624 per vessel per day, with combined daily operating expenses and net cash G&A expenses per vessel at $6,277 [5] - Cost synergies achieved during Q2 2025 were approximately $13,000,000, with operating expense and G&A savings for the Eagle fleet at approximately $19.90 per vessel per day [9] Market Data and Key Metrics Changes - Total dry bulk trade during 2025 is projected to contract by 0.9%, while ton miles are expected to expand by 0.2% [20] - The average steaming speed of the fleet has stabilized at around 11 knots, slightly rebounding from Q1 record lows [19] - Chinese dry bulk imports contracted by 4.2% year over year in the first half, but GDP growth in China exceeded expectations [23][24] Company Strategy and Development Direction - The company continues to prioritize returns to shareholders, declaring a dividend of $0.05 per share for the quarter [4] - The company is focused on disposing of smaller, older, and inefficient vessels while investing in energy-saving technologies and fleet upgrades [12][14] - The company is committed to complying with upcoming global environmental regulations and investing in digitalization and cybersecurity [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4, citing increased trade activity and a positive outlook for 2026 [44][46] - The company noted that June exports reached an all-time high, contributing to a better market outlook [42] - Management acknowledged uncertainties due to tariffs but remains focused on managing the fleet to capitalize on market opportunities [29] Other Important Information - The company has repurchased 3,300,000 shares for a total of $54,000,000 [4] - The company has completed 47 installations of energy-saving technologies with another 13 planned for 2025 [11] Q&A Session Summary Question: Expectations around further divestment of older tonnage - The company intends to continue disposing of smaller, older, and inefficient vessels as a hedge against market fluctuations [34] Question: Technology options for improving fleet efficiency - The company is exploring various technologies, including hot cleaning robots and carbon capture technology, to optimize performance [36][38] Question: Market resurgence and seasonality - Management noted that June exports reached an all-time high and attributed the market improvement to expedited exports before potential tariff effects [42][44] Question: Use of buyback in the second half - The company will prioritize actions that benefit shareholders, considering stock performance and potential opportunities for cash reserves [48][50]

Financial Performance - The company reported a Net Income of $0.04 million and an Adjusted Net Income of $13.2 million[9] - Adjusted EBITDA reached $69 million[9] - The company declared a dividend of $0.05 per share[9] - The company's cash position is approximately $407 million[9] - Proforma Debt and lease obligations are $1,121 million[9] - Additional liquidity of $115 million is available through undrawn revolver facilities, resulting in proforma liquidity in excess of $520 million[9] - TCE per vessel was $13,624, while average daily OPEX per vessel was $4,928, and average daily net cash G&A expenses per vessel were $1,349, resulting in TCE less OPEX less G&A expenses of $7,347[8] Shareholder Value & Fleet Management - The company repurchased approximately 3.3 million SBLK shares for $54 million during Q2 2025[9] - The company sold 9 vessels with equity proceeds of approximately $82.1 million, with $50.6 million to be received in H2 2025[9] - The company renewed its Share Repurchase program of up to $100 million[9] - The company has twelve debt free vessels with an aggregate market value of $246 million[9] Eagle Bulk Integration & Cost Synergies - Over $53 million of Cumulative Cost Synergies have been achieved since closing of the Eagle Bulk transaction in April 2024[23] - Q2 2025 Synergies are around $13 million[24] Fleet & Coverage - Fleet wide coverage for Q3 2025 is 72% at a TCE of $16,326/day[59] - The company operates a fleet of 142 vessels with an average age of ~11.9 years[37] - The company expects to receive on aggregate net sale proceeds of $104 million in Q3 and Q4 2025 and make debt prepayments of approximately $18.9 million related to the sold ships[37] Dry Bulk Market - Dry bulk trade in 2025 is projected at -0.9% in tons and +0.2% ton-miles[52] - Orderbook is relatively low at ~10.8% of the fleet (~113.2 million dwt)[46] - Vessels above 15 years of age are at ~27.7% of the fleet (~291 million dwt)[46]

分组1 - Star Bulk Carriers reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.78 per share a year ago, representing an earnings surprise of +266.67% [1] - The company posted revenues of $247.41 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.47%, but down from $352.88 million year-over-year [2] - Star Bulk Carriers shares have increased approximately 29.2% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $302.01 million, and for the current fiscal year, it is $1.41 on revenues of $1.07 billion [7] - The Zacks Industry Rank indicates that the Transportation - Shipping sector is currently in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] 分组3 - The estimate revisions trend for Star Bulk Carriers was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Viewpoint - Star Bulk Carriers Corp. reported a significant decline in financial performance for Q2 2025 compared to Q2 2024, with voyage revenues dropping by 30% and net income decreasing to $39,000 from $106.1 million, reflecting challenging market conditions in the dry bulk shipping sector [2][20][22]. Financial Highlights - Voyage revenues for Q2 2025 were $247.4 million, down from $352.9 million in Q2 2024 [2][22]. - Net income for Q2 2025 was $39,000, compared to $106.1 million in Q2 2024 [2][20]. - Adjusted net income for Q2 2025 was $13.2 million, down from $89.1 million in Q2 2024 [2][20]. - EBITDA for Q2 2025 was $55.9 million, a decrease from $171.0 million in Q2 2024 [2][21]. - Adjusted EBITDA for Q2 2025 was $68.9 million, compared to $153.5 million in Q2 2024 [2][21]. Operational Metrics - The average number of vessels decreased to 147.6 in Q2 2025 from 155.0 in Q2 2024 [2][38]. - The Daily Time Charter Equivalent (TCE) rate fell to $13,624 in Q2 2025 from $19,268 in Q2 2024, indicating weaker market conditions [2][22][38]. - Daily operating expenses per vessel (as adjusted) were $4,928 in Q2 2025, down from $5,319 in Q2 2024 [2][24][38]. Dividend and Share Repurchase - The company declared a quarterly cash dividend of $0.05 per share, marking the 18th consecutive quarter of capital returns [9][11]. - From the start of Q2 2025, the company repurchased 3.3 million shares at an average price of $16.47, totaling $54.0 million [12][9]. Fleet and Sales Activity - The company sold nine vessels in Q2 2025, enhancing cash reserves and liquidity, which now exceeds $520 million [10][11]. - The company expects to deliver eight additional vessels to new owners by the end of 2025, with gross proceeds estimated at approximately $104 million [15][14]. Market Outlook - Despite near-term challenges due to geopolitical tensions, the company remains optimistic about the long-term dry bulk market, driven by a low order book and regulatory tailwinds [11].

Group 1 - Star Bulk Carriers' stock increased by 2.88% to $18.96, outperforming the S&P 500's daily gain of 0.06% [1] - The stock has risen by 11.36% over the past month, leading the Transportation sector's gain of 4.05% and the S&P 500's gain of 5.88% [1] Group 2 - The upcoming earnings report for Star Bulk Carriers is expected on August 6, 2025, with an estimated EPS of $0.03, down 96.15% from the prior-year quarter, and revenue of $239.12 million, down 32.24% from the prior-year quarter [2] - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.49 per share and revenue of $1.07 billion, indicating changes of -43.35% and -15.72% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Star Bulk Carriers reflect evolving short-term business trends, with positive revisions indicating optimism about the business outlook [4] - Adjustments in estimates are directly associated with imminent stock price performance, and the Zacks Rank system has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [5][6] Group 4 - Star Bulk Carriers currently has a Forward P/E ratio of 12.37, which is a premium compared to the industry average Forward P/E of 9.41 [7] - The Transportation - Shipping industry holds a Zacks Industry Rank of 58, placing it in the top 24% of all 250+ industries [7][8]

Core Points - Star Bulk Carriers Corp. will release its second quarter results for the period ended June 30, 2025, after market close on August 6, 2025 [1] - A conference call to discuss the financial results will be held on August 7, 2025, at 11:00 a.m. Eastern Time [1] Conference Call Details - Participants should dial in 10 minutes before the scheduled time using the numbers (+1) 416 764 8646 or (+1) 888 396 8049, quoting "Star Bulk Carriers" and conference ID 13754842 [2] - A live and archived webcast of the conference call will be available on the Company's website [3] Company Overview - Star Bulk is a global shipping company specializing in seaborne transportation solutions in the dry bulk sector, transporting major and minor bulk commodities [4] - The company operates a fleet of 146 vessels with an aggregate capacity of 14.4 million deadweight tons (dwt), including various types of bulk carriers [4]

Financial Performance - Net Income was $42 million and Adjusted Net Income was $41 million[10] - Adjusted EBITDA reached $104 million[10] - A dividend of $009 per share was declared, with a record date of March 4th, 2025[10] - TCE per vessel was $16,129, while average daily OPEX per vessel was $5,056[9] - Average daily net cash G&A expenses per vessel were $1,264, resulting in TCE less OPEX less G&A expenses of $9,809[9] Eagle Bulk Merger & Synergies - Synergies achieved from the Eagle Bulk integration have resulted in more than $22 million in savings to date[10] - Q4 2024 synergies from the Eagle Bulk integration amounted to $126 million, implying an annualized run-rate of $50 million[26] Capital Allocation & Liquidity - Proforma cash was approximately $452 million, and proforma debt and lease obligations were $1266 million as of February 17th, 2025[10] - Additional liquidity of $50 million is available through an undrawn Revolver Facility, bringing proforma liquidity to almost $05 billion[10] - Thirteen debt-free vessels have an aggregate market value of $250 million[10] - Total actions of $26 billion in shareholder value creation since 2021[12] Fleet & Coverage - The company has one of the largest dry bulk fleets among U S and European listed peers, with 155 vessels on a fully delivered basis[39] - Fleet-wide coverage for Q1 2025 is 801% at a TCE of $12,305 per day[63] Market Dynamics - Dry bulk NET fleet growth was +30% in 2024, compared to +31% in 2023[48] - Total dry bulk trade in 2024 is estimated at +33% in tons and +50% in ton-miles[49]

Group 1 - The company is focused on closing the valuation gap through buybacks funded by asset sales, aiming to align stock trading closer to its $24 NAV [1] - A strong dividend policy is expected to support the stock's performance and valuation [1] Group 2 - The analyst has a long position in the shares of SBLK, indicating a positive outlook on the company's stock [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation [2]

Company Performance - Star Bulk Carriers (SBLK) closed at $17.40, marking a +2.29% increase from the previous day, outperforming the S&P 500 which fell by 1.13% [1] - Over the past month, shares of Star Bulk Carriers have appreciated by 1.25%, while the Transportation sector experienced a slight loss of 0.07% and the S&P 500 gained 3.55% [1] Financial Forecast - The upcoming financial results for Star Bulk Carriers are expected to show an EPS of $0.04, reflecting a significant 94.87% decrease from the same quarter last year [2] - Revenue is forecasted to be $243.45 million, indicating a 31.01% decline compared to the previous year’s quarter [2] Annual Projections - For the full year, Zacks Consensus Estimates project earnings of $1.32 per share and revenue of $1.02 billion, representing declines of 49.81% and 19.64% respectively from the prior year [3] - Recent adjustments to analyst estimates for Star Bulk Carriers are important as they indicate changing near-term business trends, with positive revisions seen as a favorable sign for the business outlook [3] Valuation Metrics - Star Bulk Carriers has a Forward P/E ratio of 12.89, which is a premium compared to the industry average Forward P/E of 9.41 [6] - The Transportation - Shipping industry, which includes Star Bulk Carriers, holds a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Star Bulk Carriers as 4 (Sell) [5] - The Zacks Consensus EPS estimate has increased by 6.09% in the past month, indicating some positive momentum despite the overall ranking [5]