Core Thesis - Star Bulk Carriers Corp. (SBLK) is viewed positively due to its strong market position, financial health, and favorable industry dynamics [1][2][5] Company Overview - SBLK is the largest publicly traded pure-play dry bulk shipping company, operating a fleet of 142 vessels, including 80 "Eco" ships with an average age of 12 years [2] - The fleet is equipped with scrubbers for environmental compliance and is well-positioned to benefit from rising vessel values [2] Financial Performance - Management has effectively allocated capital, reducing net debt by 45% over 4.5 years, returning $1.35 billion in dividends, $518 million in buybacks, and $624 million in net debt paydown [3] - Share repurchases have been executed at substantial discounts to NAV, indicating strong shareholder alignment [3] Market Positioning - SBLK trades at a significant discount to NAV, reflecting market mispricing and historically low leverage compared to peers [2] - The dry bulk market fundamentals support SBLK's upside, with a low newbuilding order book of 10-11% of the fleet and an aging fleet where 30% will exceed 20 years by 2030 [4] Demand Drivers - Rising ton-mile demand is driven by shifts in iron ore sourcing, increased bauxite exports, and coal import dynamics in China [4] - The Simandou iron ore project in Guinea is expected to create incremental demand, potentially lifting ton-mile demand and time charter rates [4] Strategic Outlook - Seasonality is a short-term variable, but structural supply constraints and strengthening global dry bulk demand are expected to improve vessel values, NAV, and cash flows [5] - With net debt below scrap value and disciplined capital allocation, SBLK presents an attractive risk/reward profile with potential upside from market-driven improvements and strategic investor engagement [5]

Financial Data and Key Metrics Changes - Genco recorded a net loss of $1.1 million for Q3 2025, translating to a basic and diluted net loss of 2 cents per share. The adjusted net loss was 1 cent per share, excluding a loss on debt extinguishment of $0.7 million [11] - Adjusted EBITDA for Q3 totaled $21.7 million, marking a 52% increase compared to Q2 [11] - The cash position as of September 30 was $90 million, which increased due to a drawdown of debt for the purchase of a new vessel [11] - Debt outstanding rose to $170 million due to the recent acquisition, down from $450 million in 2021, representing a 62% reduction [12] Business Line Data and Key Metrics Changes - Genco declared a dividend of $0.15 per share for Q3, extending its track record of 25 consecutive quarters of dividends [4] - The company has declared a total of $7.65 in dividends per share since 2021, representing 43% of the current share price [5] - The TCE (Time Charter Equivalent) for Q4 is estimated to exceed $20,000 per day, a more than 25% increase, with Capesize vessels achieving approximately $27,000 per day [5][15] Market Data and Key Metrics Changes - The dry bulk freight rate environment improved significantly in Q3 and into Q4, with Capesize rates driven by record Brazilian iron ore shipments [17] - The Baltic Capesize Index averaged approximately $26,000 per day in Q3, while the Baltic Supramax Index averaged around $14,000 per day [17] - China's iron ore imports rose by 6% year-over-year in Q3, indicating strong demand [18] Company Strategy and Development Direction - Genco's value strategy focuses on returning cash to shareholders, maintaining flexibility for growth, and paying dividends based on cash flows [4][7] - The company aims to operate with a low-leverage, high-dividend model, having invested nearly $347 million in modern vessels and paid down $279 million in debt since 2021 [7][8] - Genco is focused on acquiring larger vessels due to better supply dynamics in the Capesize sector compared to minor bulk vessels [38] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the freight market for the remainder of 2025 and into 2026, citing strong fundamentals and a favorable freight rate environment [5] - The company has completed 90% of its dry docking schedule for 2025, positioning it well for Q4 utilization [5][16] - Management highlighted the importance of strong corporate governance as a differentiator in the industry [10] Other Important Information - Genco has a low cash flow break-even rate of approximately $10,000 per day, which is considered an industry-low [5] - The company has $430 million in undrawn revolver availability, providing significant access to capital for future opportunities [9] Q&A Session Summary Question: Insights on the freight market improvement - Management indicated that the improvement is due to seasonal factors, record Brazilian iron ore exports, increased coal trades, and strong grain demand from South America [25] Question: Impact of USTR fees on dry bulk rates - Management stated that the USTR fees had a negligible impact on Genco's revenues, and the clarification on port fees has removed risks for the company [27][28] Question: Future of coal imports to China - Management noted a shift in coal imports from the U.S. to other sources but expects U.S. coal exports to increase in the next six months as USTR fees are lifted [43] Question: Adoption of a poison pill strategy - Management explained that the poison pill was adopted to slow down a rapid accumulation of shares by a single shareholder, ensuring the best transaction for all shareholders [47][48]