Star Bulk(US:SBLK)2025-08-07 16:00Financial 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]