Star Bulk Carriers has reported a surge in earnings and disclosed a new deal to finance its orderbook.
The New York-listed company, the biggest dry bulk shipowner on public markets, notched net income of $81.3m during the third quarter, up from $43.7m a year earlier.
Adjusted net income, which excludes factors not tracked by analysts, took an even bigger leap, rising to $82.7m from $33.1m.
That resulted in $0.71 in adjusted earnings per share, just two cents below the average estimate of four analysts polled by Yahoo Finance.
The company also decided to put $0.60 per share into the hands of shareholders. Although the dividend is smaller than the $0.70 in the second quarter, it is better than the $0.22 payout declared this time last year.
Chief executive Petros Pappas said: “Since the beginning of 2021, through 15 consecutive dividend payments, we have returned operational free cash flow after debt service of more than $1.33bn.”
Star Bulk also announced that it scored a $130m debt facility that it will use to finance the delivery of five kamsarmaxes on order. The finance was secured from an existing lender.
“With this seven-year post-delivery financing in place and the equity for the vessels already secured, the vessels are now fully financed on very competitive terms,” Pappas said.
The balance sheet showed $468m in cash at the end of the third quarter, with $1.34bn in long-term debt.
“Substantial remaining cash is kept in reserve for future opportunities for fleet renewal, share repurchases or debt repayment,” Pappas said.
“We have strengthened our financial position having reduced our net debt (per vessel) over the same period by 53%.”
Pappas is optimistic about medium-term prospects, citing favourable supply fundamentals, mounting regulations and Chinese stimulus efforts.
“In a period of increased geopolitical uncertainties, we remain focused on actively managing our diverse scrubber-fitted fleet to take advantage of market opportunities,” he said.
