Weak dry bulk market and consecutive net losses have forced Greek dry bulk shipping company Star Bulk Carriers to further postpone the delivery of four newbuildings.
According to the company, they have managed to delay a total of USD 464 million of capital expenditures from 2015 to 2016 and delay vessel deliveries by a total of 105 months, or 5.2 months per each newbuilding vessel on average at no additional cost.
In the third quarter of 2015, Star Bulk posted a net loss of USD 42 million, reaching a net loss of USD 147.2 million for the nine months ended September 30, 2015, compared to the USD 3.6 million net loss for the same period in 2014.
The company’s net revenues for the third quarter of 2015 were USD 49.1 million and adjusted EBITDA was USD 6.1 million. For the third quarter of 2015, total voyage revenues were USD 68.7 million compared to USD 36.5 million for the third quarter of 2014. Start Bulk added that their total voyage revenues were USD 169.9 million for the nine months ended September 30, 2015, compared to USD 79.5 million for the same period in 2014.
This increase was mainly due to the rise in the company’s average number of vessels to 71.2 in the third quarter of 2015, from 31.5 vessels in the third quarter of 2014. The increase in voyage revenues from the additional vessels was partially offset by significantly lower charter hire rates prevailing in the dry bulk market during the third quarter of 2015, compared to the third quarter of 2014.
“We expect further reduction in our average daily operating expenses upon completion of our newbuilding program in 2016, without compromising the high quality and safety standards of our operations. We have recently announced the reassignment of a lease agreement to a third party, which will result in a one-time payment to us of USD 5.8 million in 2015. Including the effect of a similar arrangement concluded earlier this year, we have managed to reduce our expected equity capital expenditures by USD 23.2 million,” Petros Pappas, Chief Executive Officer of Star Bulk said.
“Under the current market environment our focus remains to maintain a strong operating platform to take us through this downturn and into recovery in the years to come. Acting always in a preemptive and prudent manner, we are taking and will continue to take, all the necessary steps to maintain a strong liquidity position, reduce our break – even levels and safeguard shareholder value.”