Americas News
Star Bulk Swings to Red in "Transformational" 2014, Upbeat for Future
Star Bulk Carriers Corp. (Star Bulk) Thursday hailed 2014 as a "transformational" year despite its results swinging into the red, with the company reporting a net loss of $11.7 million against a $1.9 million profit in 2013.
Voyage expenses, which usually include bunker costs, were up steeply to $42.3 million in 2014 from $7.5 million in 2013.
Revenue more than doubled over the year to $147.4 million up from $69.9 million in 2013, while EBITDA was up 34 percent to $41.1 million.
Average Time Charter Equivalent (TCE) rates fell 16 percent "against a backdrop of weakening market conditions" to $12,161 per day.
While the company presented a narrower adjusted net loss of $3.2 million for the year, the gap in results between 2014 and 2013 remained almost constant when compared to adjusted net income for the prior year of $9.7 million.
But Star Bulk said that 2014 had been a strong year and presented an upbeat picture for 2015 an beyond.
"This past year has been a transformational one for the Company, after the merger with Oceanbulk and the acquisition of 34 vessels from Excel Maritime, making Star Bulk the largest U.S. listed dry bulk company with a fleet of 98 vessels on a fully delivered basis," said CEO Petros Pappas.
In addition, Star Bulk pointed to the formation of joint venture company Capesize Chartering Ltd. which it hopes will further reduce operating costs through economies of scale.
Among Lowest Cost Operators in Industry
Average operating expenditure per vessel per day fell to $5,037 for the year, compared with $5,564 in 2013, and fell further in quarter four (Q4) to $4,704, which Star Bulk said put the company amongst the lowest cost operators in the industry.
The company added that its fleet building and modernisation plans were pushing ahead, while it had also shored up its balance sheet.
In January this year, Star Bulk raised $245 million in new equity from major shareholders, including private equity players Oaktree Capital Management (Oaktree) and Angelo, Gordon & Co. (Angelo Gordon).
Last month, private equity players were said to be seeking to gain control of shipping companies by buying distressed debt and converting the debt to equity, citing Oaktree's negotiations with TORM and Angelo Gordon's with Eitzen Chemical.
