Star Bulk slumps to $40.1m first quarter loss

Losses for the largest listed dry bulk shipowner in the US widened to $40.1m in Q1 2015 compared to a loss of $878,000 in the same period a year earlier.

Revenues in Q1 more than doubled to $45.5m compared to $20.1m a year earlier.

Commenting on the results Star Bulk ceo Petros Pappas said: “In the first quarter of 2015 we have witnessed a new historical low of the dry bulk market, which has clearly impacted our financial performance as well as that of other companies in the dry bulk market. Amidst this weak market environment, we continue to take proactive measures in order to control costs, enhance our liquidity position and safeguard long term shareholder value.”

Against the backdrop of the poor market Star Bulk has delayed delivery of its remaining newbuildings by a total of 77 months, an average of 3.3 months per vessel, deferring $288m in newbuilding payments from 2015 to 2016. The company has also cancelled one newbuilding.

“As part of our fleet renewal plan, since 1 January 2015, we have successfully disposed of eight older vessels for total gross proceeds of $42.7m. In addition, we have completed the acquisition of the last six vessels from the fleet of Excel Maritime and have taken delivery of nine newbuilding vessels. As of today, 25 newbuilding vessels are due for delivery over the next 18 months with relevant capital obligations fully financed,” Pappas added.