Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Star Bulk cancels and delays more newbuilds as losses soar

Star Bulk cancels and delays more newbuilds as losses soar
As the bloodbath in dry bulk continues Star Bulk has cancelled four newbuildings and delayed another five, as losses mount.

Star Bulk reported a net loss of $481.5m for 2015, compared to a loss $11.7m in 2014. The fourth quarter of 2015 saw a hefty $311m loss as it took $287.7m in impairment losses related to selling vessels and newbuildings, and a $101.6m write-off on goodwill on its merger with Oceanbulk.

“The last twelve months have proven to be the most challenging market for dry bulk shipping over the last 30 years, with lacklustre demand and persistent oversupply,” commented Star Bulk ceo Petros Pappas.

Star Bulk’s response has been to cancel and delay more of its newbuildings and sell off vessels from its fleet, and the company revealed had cancelled four more newbuilds in February.

“On the newbuilding front, we have reached agreements with our ship building yards and our lease financing institutions not to take delivery of four vessels,” Pappas said.

The company has also agreed to delay the delivery of five Newcastlemax bulkers from 2016 to 2017 and 2018, which will result in it deferring $188m in capex from 2016.