Earnings Results to Track: Star Bulk Carriers Corp. (Nasdaq: SBLK)

Star Bulk Carriers Corp. (SBLK) closed with decline of -0.83% to $13.08 . Recent traded volume was 143,161 million shares versus to it an average volume of 433,853 million shares. The company holds 91.52M million shares outstanding and market cap of 1.197B billion. The stock’s day range was recorded between a low of $12.95 and a high $13.28. The one year high of the company is $14.60 and the one year low is $8.62.

After the last closing session, the bid price was seen at 13.08 x 900. The bid price represents the higher price that a buyer or buyers are willing to pay for a security. The ask price was registered at 13.60 x 1400. The ask price indicates the lower price that a seller or sellers are willing to receive for the security.

 

Star Bulk Carriers Corp.  (Nasdaq: SBLK) reported its unaudited financial and operating results for the second quarter and the first half of 2018.

For the second quarter of 2018, time charter equivalent revenues (“TCE Revenues”) (total voyage revenues net of voyage expenses and charter-in hire expense) not including Star Logistics (as further discussed in footnote 8 under the heading “Summary of Selected Data”) were $90.0M, contrast to $61.1M for the second quarter of 2017. Total revenues for the second quarter of 2018 increased to $132.6M from $78.6M in the second quarter of 2017. This increase was primarily attributable to the important rise in charter hire rates, which led to a TCE rate of $13,567 for the second quarter of 2018 contrast to a TCE rate of $9,747 for the second quarter of 2017, representing a 39% increase. TCE Revenues also increased as a result of a raise in the average number of vessels in our fleet to 73.5 in the second quarter of 2018, up from 69.5 in the second quarter of 2017, which caused a raise in Accessible days for our fleet.

Absent the adoption of the new revenue recognition standard (ASC 606) in January 2018, which has only prospective application with no effect to previous year figures, our TCE rate for the second quarter of 2018 would have been $13,598.

For the second quarter of 2018, operating income was $27.3M, which includes depreciation of $22.1M. Operating income of $2.0M for the second quarter of 2017 included depreciation of $20.7M. Depreciation increased during the second quarter of 2018Because of a higher average number of vessels in our fleet.

Net income for the second quarter of 2018 was $10.7M, or $0.17 earnings per share, basic and diluted, based on 64,233,289 weighted average basic shares and 64,633,668 weighted average diluted shares, respectively. Net loss for the second quarter of 2017 was $10.3M, or $0.16 loss per share, basic and diluted, based on 63,336,657 weighted average basic and diluted shares.

Net income for the second quarter of 2018 mainly included the following non-cash items, other than depreciation expense:

Stock-based compensation expense of $3.9M, or $0.06 per share, basic and diluted, recognized in connection with ordinary shares granted to our directors and employees; and

Unrealized gain on forward freight contracts and bunker swaps of $1.3M, or $0.02 per share, basic and diluted.

Net loss for the second quarter of 2017, mainly included the following non-cash items, other than depreciation expense:

Stock based compensation expense of $3.7M, or $0.06 per share, basic and diluted, recognized in connection with ordinary shares granted to our directors and employees;

Unrealized gain on forward freight contracts of $0.7M, or $0.01 per share, basic and diluted; and

Unrealized gain on interest rate swaps of $0.4M or $0.006 per share, basic and diluted.

For the second quarter of 2018 and 2017, vessel operating expenses were $27.4M and $25.1M, respectively. This increase was primarily Because of the increase in the average number of vessels from 69.5 to 73.5. Vessel operating expenses for the second quarter of 2018 include pre-delivery and pre-joining expenses of $0.7M incurred mainly in connection with the delivery of the Star Magnanimous and Star Leo, which were delivered in March and May 2018, respectively. For the second quarter of 2017 operating expenses included pre-delivery and pre-joining expenses of $0.6M.

Dry docking expenses for the second quarters of 2018 and 2017 were $2.1M and $1.9M, respectively. During the second quarter of 2018, two of our vessels underwent their periodic dry docking surveys, while during the second quarter of 2017, three of our vessels underwent their periodic dry docking surveys, one of which had started during the first quarter of 2017.

General and administrative expenses for the second quarters of 2018 and 2017 were $10.4M and $9.3M, respectively. The formation of our new subsidiary, Star Logistics, and a higher EUR/USD exchange rate during the second quarter of 2018 contrast to the corresponding period in 2017 resulted in higher wage expenses, and thus had a negative effect on our general and administrative expenses. Additionally, general and administrative expenses for the second quarter of 2018 include stock-based compensation expense of $3.9M. During the same quarter of 2017, general and administrative expenses included stock-based compensation expense of $3.7M and legal fees of $0.4M in connection with the restructuring of our indebtedness.

Star Bulk Carriers Corp.’s (SBLK) stock price showed weak performance of -2.17% in last seven days, switched down -2.32% in last thirty days and it rose 14.44% in last one year.

It has 63.07 million of outstanding shares and its shares float measured at 54.59.

 

Timothy Secombe- Services Sector News

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