Star Bulk(US:SBLK)2025-02-18 21:42Financial Performance - Star Bulk Carriers reported a net income of $42.4 million for Q4 2024, compared to $39.7 million in Q4 2023, representing a 1.7% increase[24]. - Voyage revenues increased to $308.9 million in Q4 2024 from $263.5 million in Q4 2023, a growth of 17.3%[26]. - Adjusted EBITDA for Q4 2024 was $103.8 million, down from $114.0 million in Q4 2023, reflecting a decrease of 9.6%[25]. - Net income for Q4 2024 was $42,446, an increase of 6.0% compared to $39,707 in Q4 2023[55]. - Adjusted Net Income for the twelve months ended December 31, 2024, was $285,589, up 56.7% from $182,247 in 2023[55]. - Total revenues for Q4 2024 reached $308.9 million, an increase from $263.5 million in Q4 2023[39]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $524,623, representing a 38.3% increase from $379,211 in the previous year[53]. Fleet and Operations - The average number of vessels in the fleet increased to 153.1 in Q4 2024 from 117.8 in Q4 2023, a rise of 29.9%[26]. - The company owns a fleet of 155 vessels with an aggregate capacity of 15.0 million dwt, including various types of bulk carriers[62]. - The average age of the operational fleet remained stable at 12.1 years for both Q4 2024 and Q4 2023[50]. - The company took delivery of multiple vessels in 2024, including Star Voyager, Star Explorer, Stargazer, Star Earendel, Star Illusion, and Star Thetis, each under long-term charter-in arrangements[63]. Expenses and Cost Management - Charter-in hire expenses increased to $26.2 million in Q4 2024 from $3.7 million in Q4 2023, driven by an increase in charter-in days to 1,181 from 123[27]. - Vessel operating expenses rose to $72.8 million in Q4 2024 compared to $54.1 million in Q4 2023, with daily operating expenses per vessel increasing to $5,164 from $4,991[28]. - Dry docking expenses for Q4 2024 were $20.3 million, up from $11.5 million in Q4 2023, with nine vessels completing dry docking surveys compared to eight in the prior year[29]. - General and administrative expenses were $19.0 million in Q4 2024, slightly up from $18.1 million in Q4 2023, including share-based compensation of $5.1 million[30]. - Depreciation expense increased to $44.0 million in Q4 2024 from $33.9 million in Q4 2023, reflecting a rise in the average number of vessels in the fleet to 153.1 from 117.8[31]. - Cost reductions achieved since April 2024 totaled $21.8 million, with $12.6 million realized in Q4 2024 alone, equating to an annualized run rate of over $50.0 million[7]. Cash Flow and Financial Position - Cash and cash equivalents increased to $436.3 million as of December 31, 2024, from $259.7 million a year earlier[40]. - Total assets grew to $4.1 billion as of December 31, 2024, compared to $3.0 billion at the end of 2023[40]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $471.2 million, up from $335.8 million in the previous year[41]. - The company reported a net cash provided by operating activities of $471,154 for the twelve months ended December 31, 2024, compared to $335,777 in 2023, marking a 40.3% increase[53]. Market Conditions and Future Outlook - The Time Charter Equivalent (TCE) rate decreased to $16,129 per day in Q4 2024 from $18,296 per day in Q4 2023, indicating weaker market conditions[26]. - Star Bulk Carriers is well-positioned to capitalize on future opportunities in the dry bulk market, despite geopolitical uncertainties and a traditionally weaker first quarter[9]. - The company emphasizes the potential risks and uncertainties that could affect future performance, including market conditions and operational challenges[68]. Shareholder Returns - The company declared a quarterly dividend of $0.09 per share, corresponding to 60% of the cash flow for Q4 2024[10]. - Star Bulk Carriers has repurchased approximately 900,000 shares since the renewal of its share repurchase program, spending over $7.4 million in January 2025[6]. Environmental, Social, and Governance (ESG) - The company is committed to meeting its Environmental, Social, and Governance (ESG) goals and targets amid increasing scrutiny from investors and regulators[68]. Conference Call - The management team will host a conference call on February 19, 2025, to discuss financial results[58].