SBLK - Earnings call transcript Q1 2022 | Star Bulk Carriers Corp.

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Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers Conference Call on the First Quarter 2022 Financial Results.

We have with us Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Nicos Rescos, Chief Operating Officer; Mr. Mr. and Spyrou, Simos Financial Company. Charis Co-Chief Officer Chief of the Officers; Begleris, Plakantonaki, and Strategy Christos time, participants this At all listen-only mode. are in a will by There followed presentation question-and-answer session. be recorded. that Instructions] conference [Operator advise you must is I being this today, We now pass floor to Mr. your one of the speakers Simos Spyrou. sir. go ahead, Please

Simos Spyrou

I'm Co-Chief the regarding call Thank and results of for Carriers quarter Financial our Star of conference you, operator. would to like our Officer Bulk first XXXX. I to Simos Spyrou, welcome you financial

latest take begin, a #X QX of to our for up fundamentals our we'll I during quarter, operational Safe before kindly statement we ESG presentation. presentation, to Harbor an questions. evolution you Before policy, the the an moment an our ask balance today's a industry results, cash our sheet, overview of read walkthrough opening update, on of the go and Slide dividend through update, In

Let The to first $XXX.X share. us was summary Net $X.XX Slide and first at quarter. a or to Bulk's amounted Star the our quarter income net $XXX.X income of adjusted for per million reported the million million for adjusted presentation history. for company Adjusted first #X the now earnings results in turn quarter XXXX $XXX.X EBITDA the highlights. of of quarter strongest

per For XXXX. we declared the of dividend existing on as first XX, June a $X.XX quarter, policy, our dividend payable per share

cumulative performance the last rising the on of graph bulk a the bottom of highlight the over the dry the want months With the in we which page, XX platform strength illustrates market. to

have At shareholders. million net months the at dividend of our income million. $XXX $XXX and returned XX billion cumulative is adjusted EBITDA adjusted last a Our same time, we to of $X.XX

will the per top page, daily quarter. the see the figures On of our right for vessel you

vessel per Our day. $XX,XXX charter equivalent rate was per time

vessel. operating $XX,XXX to cash and day Therefore, per is vessel combined amounted around G&A, Our expenses per day less $X,XXX. G&A TCE, and net per per expenses our OpEx daily

wide $X,XXX able fleet G&A full more similar expenses been Looking adjusted adjusted a at TCE significantly basis, peer by figure to the and assets the Star than on has more overperformance how utilized per operating year on outperform than fleet Bulk less are Star in average demonstrating implying EBITDA annual an platform. a per efficiently of XXX and the $XXX day Bulk vessels million vessel,

payments of of dividend the with payment, share. to chartering at $XXX at we X days of the available the of covered at fleet of of illustrates at the installments for meaningful million policy Looking a $XX,XXX of graphically company's rate XXXX including strong during daily quarter arrived XXXX. coverage end the for quarter and ballast per water and million cash quarter. fourth second the an systems in day repayments, XXXX, generated $X.XX per our we for After million the quarter our cash per Slide Slide flow debt of balance from due started have proceeds X freight operating quarter of has market. activities the first dividend a for dividend in balance CapEx vessel. first walkthrough calculation example cash the positive a of and with treatment quarter We changes cash $XXX.X the the $XXX.X XX%

shareholders changes to XX total our balance In declared are per on As XX, note X, working XXX is dividends cash date Board cash dependent our should our we cash capital. as a company here bunkers last of per $X.X $X.X pursuant share. and our March XXXX. has and $XXX minimum vessel expected X, XXXX. to the June a per June dividend our our owned vessels, distributed XXXX, on June our of million, of freight We be In of XX of XXXX, increasing, per our and that a to of XX rising March was XX, working with million affecting ex-dividend balance of The inventories policy, capital. all is $X.XX May market, dividend policy as this record share at and payable quarterly On dividend vessel. announced heavily Directors of in receivables as months,

rally per our the approximately the our second recent by in Given increase our negatively our approximately currently quarter point will the affecting balance to of cash it the continued comes end $X.XX timing share. in the of and will in between sheet. where Slide the when bunker the at are strength cash This Please we and at capital driven market now quarter difference by a future. prices, X we quarter dividend recognized some increase in million that reverse is and for XXXX, working in, and difference by estimate when balance $XX turn earnings highlight

Our total stands cash today $XXX million. at

at $X.XX stands debt billion. approximately total Our

Our XX approximately next months million. amortization is $XXX

the of We of have vessels XXXX. no X maturities third until debt unlevered the quarter end and

interest operating and cash the of cash average basis floating at exposure yield. approximately rate per share the potential demonstrate fixed the leverage of XX Slide well inherent have our an the flow flow illustrative In as flow LIBOR of as we We XX% free X, potential cash rate points. to and company

a update FFA now free per on For year, an fleet share approximately I cash operational yield example, produce of for flow will $X.X Nicos of with on our COO, pass will and our Star per Bulk floor Rescos, performance. the XXXX XX,XXX XX%. curve, based days the available current to

Nicos Rescos

expenses Net provide Please per same adverse you, expenses base X, on as amongst cash day for we turn pressures, $X,XXX coverage-related and per combination day direct the were us less update. were OpEx Slide inflationary in-house saw of cost Simos. group maintain our and competitive Despite very sustain cost and management our OpEx, our enable Thank lowest peers. $X,XXX of we the continued restrictions period. QX the position impact the per vessel a nonrecurring where scale operator excluding per a the to G&A to operational for XXXX.

of we'll next and provides our days. system the future for addition, top X of rightship expenses In months rate peers off-hire relevant terms and in XX our Slide water the guidance some and quick rate. the ballast snapshot continue listed to total a dry X among on dock

expected water for million months the are around another million, expense is an have yard X,XXX dock days the above end forward XXXX. ballast dry our of In with XX-month based $XX.X by our capacity. retrofit of docking dock numbers vessel off-hire the towards and on QX $XX fleet current XX estimated be period. planning, The XX and We that expect XX% employment at anticipate will vessels a of with fitted Our estimates to vessel dry next for we dry upgrade total, CapEx. approximate

year, utilization XX% annual scrubber scrubber is around surpassed operating front, the High XXX,XXX of have volatile ton by Bulk price On now per $XXX has throughout based demand. hovering cater Star spot the our days been experience. Singapore for fuel prices, we currently and of where spreads

now floor XX efforts. significant Chief on company. the in being high our be vessel per by recouped will investment of $X,XXX scrubber-fitted, value have the by the to day. spread annualized conservative end With expect a breakeven With cash fleet, of to I'll XXXX. a price Officer, be ESG can oil our We and XXX,XXX Strategy per scrubber heavy full a across tons pass increase of of reducing QX vessels estimated fuel price for in we Charis continued our ton, generator our per $XXX consumption an our of Plakantonaki,

Charis Plakantonaki

as Iron Rio gas Thank to This Star we equivalents Green Nicos. ESG. our Tinto million Ore ore company’s framework Corridor assess economics, world. to create we for for aim Australia turn trade I than an have the trade global route, the for CEO, where the year, Asia Corridor. Green emissions, other inputs the phase and Consortium, and partnership, of Through industry’s East East ore sector, shipping first Australia accelerate accounts a in remarks. Please the will the work a now to by and mover Forum, lead infrastructure, this than of the in chain of led will and his XX, greenhouse in closing of zero-emission green Pappas, logistics you, parties for route will the to on highlight with viable well a and development tons continued mechanisms floor decarbonization and parts and public strategy foundation also implementation jointly Petros out to of COX Consistent real-world enable pass we necessary X.X% major agreements emissions. the with this efforts of to bunkering or in more set Global XX Slide efforts between along catalyze and more consortium as corridor iron value charterers, with Oldendorff. each and developments the our the three update BHP, market of and a the our and signed specific shipping to the that Asia, to Maritime The supply the green iron a ammonia, from announced Bulk in the wider for commercial the participation

Petros Pappas

update Charis. you, Thank supply. XX brief turn of for a Slide Please to

of Uncertainty X.X firm keep year-on-year. X.X in of have 'XX. while incentify put was Net as growth order was increase drop unlikely million shipbuilding exceed and capacity. to a X.X% delivered scrap future Furthermore, on million record in fleet evolution orders or shipping. with January during The million XXXX During of the recent is has propulsion the to deadweight to total costs and deadweight and of bulk more and of net deadweight months certain the has 'XX X.X% along X million and for dry containership average history of LDT prices the prices global control, outlook growth seen is orders low first than XXXX, a in the X% X.X% up may tonnage under between of have best projected strong to orders is is $XXX reported supply X.X the April. just CPR sent filling we seasonal multiyear XX below fleet increase with book new new steel decreased demolition downturns. of highs The helped during fleet, per deadweight to

after come We a strong costs. by the effect as into that result knots of year-on-year of as average to speeds X.X% of expect a bulk this has decreased fleet will implementation steaming of bunker the increase EEXI, regulations the of CII XX.X The to XXXX. intensify dry

for to record inflated increased sanctions quarantines from bunker the pandemic. We and year remain the prices around by tension, stands changes than Russia to next congestion bottlenecks. to and recovery costs patterns, trading of subsequently the expect close in higher countries due to the imposed gradual amid seasonal last levels quarters and the Port political high and few Western economies oil [X.X%]

Ukraine and to X.X%, in 'XX total dry 'XX war XX Clarksons, turn GDP has Let's worldwide affected to regions. pressures ton According is the but Inflationary negative 'XX. X.X% trade on demand. update projecting during food global IMF to X.X% and and respectively, impact in especially a for and expand bulk projected growth to of The during demand, Slide now miles. in a X.X% to and by on end negatively brief have in energy X% down tons outlook economic with user the low-income 'XX slow

first X.X% quarter dry as the ban Winter war were of a result zero-COVID bulk on and approximately total XXXX, by the of poor Ukraine. During in Brazil Olympics export down weather volumes conditions and coal, Indonesia policy, China in the

Winter of to to of during steel future by has huge property months slightly a decrease in longer-haul stimulus needs record volumes. just-in-time production Iron replenishing tons rest market coal, due XXXX. of by and during patterns growth by helped the China fear expected and first during production amid significantly Furthermore, while last the in inflating the and However, seasonality, sanctions. decreased to recovered the ton below both is the X.X% expand and sampling the related uncertainty Chinese during be over ton quarter, just-in-case grain have with X.X%, levels. year's last and the miles is miles and are the worldwide, trade ore trade to steel the curves stands supported the country's Nevertheless, on Olympics. basis production moderate political routes year, may product expected stocks uncertainty restocking and accelerate

tons, stockpiles improvement in expect Beijing by first decreased the iron and recently to next are the we million indicating boost but high domestic from expansion X% levels. elevated further gas Coal annual over miles a on prices to Atlantic expand as forward, Russian producers, guidance X tons in of coal for buyers prices European and have promote Russia levels. by and million to at miles. are ore more stands record to major and economic during XXX in to ton countries, commodities Russia the to of are is trade social by declining at year, situation XXXX. pace X.X% energy with Australia infrastructure Going secure and and benefiting is has Vale coal expected X.X% consumption exporting shipments tons Brazil pushed ensuring ore limited for the the ton of announced of rest importers reconfirmed coal other Sanctions will imports is a a capacity iron the substituting XXX development, construction quarters rush year. India months exports inflated during Asian high while while Indonesia, that

India less the and in dependent imports. During on China raise order have to increased and help be prices production last domestic stocks, their months, reduce

ton Atlantic has weather the and even government imports has Minor support by Europe the Minor decreased half XXXX. and poor of during trade order for security correlation However, stockpiles for additional levels price close season inflate to steel for tons exports the in the bulk products due remain crisis tunnels. grain dramatically. by in year-to-date and conditions, further Australia is India positive to X-year during tons of inflate is expected to demand growth weaker bulk XX% only the bauxite continue is to in of total focused strong arbitrage inventory soybean China's ton in from invasion for next utilities production. should blackouts. ton years GDP turned in in expanding X.X% Pacific grain resulting than this is an Importers exports time and are exports Grain X% second XX%. grains to in trade projected on energy building. are to quantities. expected increase coal from X% and U.S., last is is the Exports and for year high X available to account to in North from sales a the have to trade midst X.X% Brazil XXXX. of of avoid expected fallen have during strong the plan food also expand provide global the since approximately for U.S. up indicate record trade. contract have West the Capesize miles miles highest in as healthy February, support the and year's outstanding Shortages XXXX. markets. during miles late and received containership flows to American the And exports the days by backhaul geared Africa and with urging the Ukraine Moreover, consumption, of as

market demand further upcoming Finally, our by limited is well remains of a and supply increase to only company dry driver it. outlook vessel Main historically take our for low enjoy regulations book the X.X%. and tons order advantage may with speeds, positioned the and the environmental suppressing bulk remains orders while and positive, growth in

the distances more arising year your you During any of half of questions of are pass operator severe XXXX, will over trade taking towards the floor tilted X.X%, I the to to by due out to second answer have. ton may the Without to any increase dislocations. miles time, heavily now expected longer

Operator

[Operator Instructions] your As first question.

go is line open. Your please ahead.

Christopher Robertson

is Robertson Chris This Jefferies. at

was wondering TCE guys rates if vessel break just you've I could quarter-to-date. on So earned segment, average the down you the

a little would but XX.X% at bit into you go on segments, could the I So be about detail talked the XX,XXX, average that if you various of know more helpful.

Petros Pappas

the Chris, quarter? for quarter first the coverage you coverage the mean or the for second

Simos Spyrou

for Panamaxes, XX,XXX. Ultras, XX% at Panamaxes covered numbers that's XX,XXX; we Supras and as and then XX% we approximately for at Kamsarmaxes; have have follows: and Capes, XX% covered The at are have approximately covered we Chris for XX,XXX,

Chris, was, that sorry, And those.

Operator

question. your And next

Drew Millegan

This Fund. Millegan, the I'm with Woodworth is Drew

just So clarification. guys having looks had for Congrats like very it question additional doing on well. -- some I you And a are a that.

detail have coming in You is come I you do quite the mentioned is going -- catch a any going regulation scraps expecting? you forward, to what more there's that that that XXXX. you're think what didn't on increase

Petros Pappas

that their consumption versus the to It's vessels regulations oblige the environmental speed. Drew. actually consumption reduce Hi, -- the

and fuel vessels be to some substantially. if have the third that the and vessel And better less performing supply older And from tier of vessels to there the the vessels is oil. the yards, that especially forward will some their vessels, going means older consuming cut, substantially, start So able speed is not speed without may and good for do therefore, they reducing that this are reduces that's market.

Operator

this question at [Operator Instructions] continue. more No Please time.

Petros Pappas

much. you comments, operator. Thank No more very

Simos Spyrou

you. Thank

Operator

this call. conference and today's for you, Thank participating. Thank you concludes

You may now disconnect.

Star Bulk Carriers (SBLK) 25 May 222022 Q1 Earnings call transcript