SBLK - Earnings call transcript Q1 2024 | 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 2024 Financial Results.

We have with us Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Simos Spyrou, and Mr. Officers; Financial Co-Chief Begleris, Mr. Christos Operating Nicos Mr. and Rescos, Chief Officer; company. Officer Charis Strategy the Plakantonaki, Chief of [Operator advise to I today.We speakers Instructions] must Mr. now being conference today, pass recorded is the floor one your you of that this Christos Begleris. go Please sir. ahead,

Christos Begleris

Co-CFO results Christos I to quarter XXXX. for to the Thank you Bulk call conference like Star Begleris, first operator. Carriers, of you, regarding welcome our I'm and would our financial of

statement company up results, industry front I begin, update In a taken we to on and read ask income our evolution slide the latest X you was income adjusted amounted slide operations, net a fundamentals million of before on first our adjusted create an or Bulk the with take Eagle of views the to shareholders, million harbor vessel integration, our will QX our the presentation, kindly to cash XXXX quarter, $XX of the per the questions.Let our net moment fleet the presentation. during safe for opening to turn the us number quarter. million share. first Adjusted Before quarter, ESG on earnings through of value today's the following: $XXX actions quarter X to for number now presentation we update, EBITDA for on In $XX reported $X.XX for summary the highlights. go

share as over share Since about billion quarter, XXXX. buybacks first existing June policy, per or and respectively. $X.X of dividend billion $X.X the For on dividend our are distributions and XXXX, declared payable dividend we per $X.XX, a X,

vessel right at the strong our for million. stands the Meanwhile, you per our total $XXX top debt page, $X.XX stands Our the see figures will total quarter. daily liquidity today billion.On of at

we years for when floor for the for transaction of operational Rescos, arrived integration COO, million the since operating the value our balance XXXX, time, to create pass an Nicos Eagle shareholders, CapEx value.On values water TCE Slide cash Since rate attractive buy payment, and allocation of three the some to debt to provides in at QX of historically our positive top X returning installments will efficient total, balance show we above, treatment the have valued shares at to million in billion shares are and using we $X.X shares our bought flow left, XX the In have asset at were last the system back and stock. of end from opportunities devices levers capital same payments and and of $XXX performance. advantage debt net have create sell S&P was older our XXXX, to $XXX less $XXX focused generated Bulk Difficulty] taken shareholder quarter the $XX,XXX we on accretively. the Bulk arbitrage ballast used at cash there Including the of Star the create all Combining million and advantage value saving vessel time We so various deleveraging significant value. the update the a at values. from and back to buying taking see vessels dividend we at energy the proceeds of equity sales Oaktree.Given shareholders.I quarter. company's to overview policy over net the do repayments, evolution. worth million million. [Technical shareholder proceeds have the cash now elevated million at Our our $XXX of net fourth a back capital asset XXXX activities, $XXX we we to bought an value, of discount from and we at were sheet on to shares we our of our use while that taken trading of that actions are are and proceeds

Nicos Rescos

on a integration. as will area. illustrates commercial allow management Singapore the X will The maintain and Cyprus. merge operations of markets.Together Singapore, one are the of Slide for the Eagle covering the Christos. Atlantic, Copenhagen Denmark Asia-Pacific. respective with leverage and management, global office Bulk covering presence Greece, to continue hub a technical Bulk covering The commercial the entity Atlantic into Continental with transaction with the summary merger and Eagle Europe, us Headquarters and strong in U.S., continue U.S. Stamford our you, the is chartering offices the The combined we technical in offices Athens Thank presence to to Med in both and and

a improved second to are creating charter commercial team, new globally capabilities managing aim for time Ultramax largest We and fleet integrated the combine Supramax performance.

We to also employment Voyage and aim rebalance business. strategy include

pricing offices enable aiming further resulting have create premium spare be underway in-house $X.X the Rightship to efficiencies facility, an the year.We applied integrations savings interest across per Bulk [ Safety during globally. Bulk processes, vessel million of expected to centralization reduction standards, amongst docks are refinanced with vessels and ex-Eagle Star fleet, of new combined expected cost Score will procurement ] day of policies and gradually Star next Control and months. with will State synergies. in the Quality XX from We Crewing for per saving already insurance agreements Technical align and from departments and the executed have costs. Safety per Dry Marine of Port Bulk all competitive maintenance be of Significant are providers synergies the systems systems benefit annum taken vessels, ex-Eagle about and $XXX cost stores, million ex-Eagle insurance with service in and are debt to parts agreements performance.Lastly, $X.X the shipyards per lubricants.

expenses period. cash $X,XXX vessel Turning slide for same Net expenses update. Operating per provide we per QX G&A to was X, for $X,XXX day at XXXX. operational an was the

dry our total to Rightship continue of the amongst our guidance dock and rate days. a top listed In off-hire fleet the some terms in and Score. peers relevant addition, future update Safety X provides Slide around at we

latest our days yard to energy-saving retrofit delivered fleet.Regarding and on technologies commercial and the QX expect during fuel employment program estimates Based same of devices, and the our the drydocking Bulk available, the on of our million a XXXX. we continue have we vessels, schedule, further upgrades remainder the Bulk XX for and The ballast fleet on above the QX X,XXX efficiency we page, ex-Eagle completed end around a being system in expected retrofits vessel improving based of quarter, XXXX CII vessels are vessels of energy our investing aimed period. we our XXXX. schedule expected of during In CapEx planned numbers line dry and enhancing XXXX, attractiveness of of retrofit the for dock, tested capacity. with newbuilding by with planning, for Star by On upgrading with vessel vessels. four our now with reducing environmental fitted.Our total, and and more the the in provide expense vessels fleet dry consumption EEXI latest is $XX.X footprint operational current regulations, the water our be our right XXX% CapEx at of illustrating estimated have including XX XX for dock top to off-hire are approximately construction In newbuilding QX

gross second Turning with total on a Kamsarmax the the sales; will delivery seven Eagle five newbuilding contracts three be Vessels the Bulk vessel to disposing the been sell mix, specifically have Eagle. the to existing bulk delivered and listed we vessels now ship Tsuneishi we fully fleet will merger.We XX.X for Cebu aforementioned slide following our Qingdao XXXX changes attractive delivered we having operate million, the proceeds average efficiency.During Considering contracts Strategy Officer, the update. fleet quarter, of more our to opportunistically Ultramax. average age on the vessel, of to an long-term amongst an sales peers years.I Charter-in six a firm age Kamsarmaxes over further QX agreed pass on in Shipyard X U.S. Tsuneishi an the floor our vessels to for of continue largest one construction and for at vessels historically have $XXX reducing Chief Star us dry that sell ESG Zhousan Charis two update XXX fleet of during for The vessels. one overall levels, of improving basis -- and Bulk fleet of building European and XX,XXX We deadweight fleet front, at to our have Crowned rolled agreed Eco of Plakantonaki, took throughout out charter-in

Charis Plakantonaki

to Sustainanalytics' Bulks among Star we in Nicos. on improved highlight ranking Medium best-performing has The from to Low transportation U.S.-listed leadership X Please company globally Star and of Core category ESG number front. turn Thank where the the Risk, our XX Risk maintaining XX, shipping. XX.X Risk companies as peers you, one the the further ESG positioning continued Smart slide Bulks

the Maritime emissions Awards XXXX, solutions Reduction work and with along projects Greenhouse global at Center Shipping the existing partners, XXXX. from reducing with Motivation began, for fleet.The Emissions new and the our develop Award scoping granted of QX During Gas to International we the initial Center adopt was the and ESG

in are has log On progressed to which measures, the XX into discussions come MEPC XXXX. regulatory force related IMO's market-based front, midterm to set

considering and plan assessing We for impact action compliance. upcoming regulations options environmental are the continuously of

embarked As on to installation growth CyberOwl cadets monitoring our deployment with program the of and have Starlink digitalize to on equip of part embarked technology to Star enhance board vessels onboard project the vessels advance continue to Newcastlemax with first the and and systems' security. board inclusion performance Firewalls female and one have along of vessels.We a of our Bulk's diversity on our of our the

improve front, Pappas, to Conduct closing third the for online employees, a whistleblowing safeguard platform and we reports.I and encourage new of our on Code floor a to and of his Petros open market handling by part the company's CEO, reporting Whistleblowing pass parties, any of now update and governance the as anonymity, have Business and our and monitoring website crews enhanced launched will confidentiality process remarks. and the On Ethics,

Petros Pappas

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

during X.X% During deadweight relative at year-on-year. propulsion, until option presently stands the X.X elevated deadweight and XXXX of while overage downturns steaming million next future for of vessels level deadweight was of from above oil keep fleet, low new X.X% million stabilized average levels and the book prices. and of scrap million level in following a [ the and ] years over limited age XX.X shipyard demolition the costs of fleet prices said high to was the Furthermore, fleet. last total energy first seasonal of of make the or growth January speeds The green of capacity a to XX.X attractive have rate and of to record order the speed should stand pressures dry low over sent X.X% of tonnage XX new shipbuilding inefficient inflated years. a helped bulk due knots orders a XX.X% have at late and on rebounded under and at control.The decreased and fleet regulations.Having freight that, XX.X stabilization new environmental two XX to Uncertainty higher downward environment net delivered months the four months a bunker demolition an costs XXXX,

followed EEXI by and over congestion moderate approximately a over two that supply trend retrofits years to supply gradually available X%. the incentivize regulations, increasingly last next help emissions deflated to and including the slow-steaming downward strong several Global expect years. We port CII

demand constraints XXXX. quarter follow first and going fully have rising to mid-XXXX it to normalized Sea strong for inefficiencies tension since seasonal the plans. sizes.And all a expect XXXX, to of appears the positive supply on Red and the Moreover, During forward, trade we with Canal Panama congestion effect continue cause of in on balance

of As of exceed growth nominal the is above unlikely a over fleet X.X% the trends, next per annum to years. result couple

growth country's by by X.X% were the full X.X% a economic us last Nevertheless, turn trade volumes to According up is first in GDP by to market X.X% expected, total received down of a and and ton prices slow last during Dry monetary brief XXXX, to the X.X% approximately in by of struggling faster bulk Clarksons, projected faster the supported bulk has X.X%, bulk X.X% imports is and Let projected now lower to dry to the but pace it XXXX and total demand. iron a than coal a same projecting quarters global COVID-XX miles.During favorable QX at property GDP support dry for expand slide record respectively. to minor bulk while pace XXXX ] Chinese Brazil ore, and bulk as expectations IMF has dry X.X% XXXX, to increased conditions in in is received XXXX, while and by due exports, inefficiencies. strength experiencing world recovery compared with year.The exports. due yet initially The canal in at support for to to unfold China to from X.X% that in update demand year-on-year, the on increased XX quarter as tons is easing ton-miles and policy. continue of recovery from manufacturing by over infrastructure, strong rest [ expected from commodity increased

production projected steel two higher. and X%, coming excess is steelmakers of ton-miles and with remain during Western while first are ore tons X.X% East during imports and the expand by consumption some domestic and is same the quarter, to X% mainly increased also Western higher years tariffs time, Indian and are following During At push XXXX. countries, production respectively, year-on-year by the from to helped by year-on-year, X.X% ore XX.X% export have economies first raising a in economies increase contraction.Iron from stockpiles Far declined imports trade iron to and response. the Weak were imports flat up domestic China's quarter. by output moving forcing as in

in XXXX. Global strong the coal ] and has leading led India other quarter projected is in domestic emerging in remained redistributed a coal outpaced production coal decline year-on-year positive year-on-year first a has on thermal in exporters X.X% and as regional X.X% domestic X.X% the quarters and a as since and a by increase of during quantities production rest a world consumption of XXXX, during last the generation. trade, Furthermore, On electricity Atlantic production September of strong to buyer have [ X.X% strong strong ton-miles imports [indiscernible] by upward in steel increase during and increased by and XX% by trade first trade ton-miles. from soybean quarter.Coal for X.X% with X.X% recovery first during Latin of Argentinean and by security energy X.X% exports XXXX. inflated during Exports is by has the tons to America volumes. following the while XXXX contract during has supported projected expand a in increased tons ton-miles from the is eased focus approximately on Brazilian during to been effect Chinese by hand, imports.Grains in the quarter trend XX%

for demand generate any trade pace vessels.As recovery supported XXXX. of remained Chinese start improving and to expand West miles a increased the take to However, exports to Ukraine comment, the transition. in short-term the steel prices, Minor global in increased the strong exports by the your and diverse and expand questions ton-miles to indicator arbitrage floor market high container the value Bulk needs will positive increased global grain over to continue highest have. the recent ton may level bulk for large bulk create scrubber-fitted exports trade the shareholders.Without lower security war, dynamics, the Capesize of and in during highest the forecast and trade supply in long-term tons to dry more positive projected strength green the answer for has taking correlation the grain trade time, now GDP by continue Africa expects investment the thus final spot inefficiencies operator trades, incentivize term.Minor focus food medium while price favorable bulk its out smaller since a to of projected and is to X.X% bulk the the support bauxite crop Star the I on prospects infrastructure in positive having continues for due of its The you while is mostly growth at any market, pass of to backhaul sites. of provides to in dry maintained profits recent a market in by of world's advantage market and X.X% strength fleet to

Operator

Our the of comes question Jefferies. Instructions] [Operator you. Thank Nokta Omar from first line with

Omar Nokta

been a you recall And from Eagle of you've announcement. Just the before shortly this after questions asked couple me. asked I were

Just talked the the the in from of Bulk you your comments, here? you just diversified general, how view end diversified Petros, fleet just Star -- mentioned the towards about you fleet.

to like ultra that build dynamic forward You've bit been sub-Cape to you bulk do demerger, the exposure minor -- higher see is you fleet side, a as you Post-merger the more of more you Star's long-winded now, dynamic the some think being recently.Obviously, you'd the ratio Capesize the or on going giving sold super in more ships. a heavy with or general, vessel, question. trade. to for place we the fleet the of bottom I fleet? guess you're are prefer ratio a Sorry of increase obviously

Petros Pappas

Thank this fleet. you, it Well, is but Omar. a happened Supramax/Ultramax

Next may Cape who be knows. merger fleet, a

that right, the vessel For at can vessels all an like sense better the one their keep markets is also gives And way, are this in average the high you a we are smaller heavy. that during being, shell the us of But opportunity age level. time fleet. that

our forward, may And vessels. some of rectify less going that and may I until us our efficient think kind So next see count the older move. of we sell make that you

Omar Nokta

Makes sense. And just a follow-up. maybe

In lowering keep to level? keeping balance? X, comfortable in you you since You debt and reductions have you debt feel you so the million the that are of at net the moment cash. and company, figure? Are just current billion terms at of How $XXX load okay got Do Are that that the with of or $X.X about in with trend general? have thinking debt XX% need slide that debt on you the going you've of amount the 'XX.

Hamish Norton

want moment, at the continuing But And to get zero decarbonization. a into been well. era you out a the keep Omar, the we're we'll same for We're debt get foreseeable to rate then. sheet with strong $XXX absolute doing at of million a debt and some need company to a we've we to we to we figure going company for paying as think point, And while. up the balance net year. that For do basically of to to to able do the strong we're delevering delever that. something down be Obviously, future, set

Omar Nokta

that Yeah. debt No, that or then And approach the guess net I you're way zero, getting is keep? in any agree. potentially cash just to to I policy shift requirements dividend looking the changed minimum on or

Hamish Norton

We have the capital changes, our moment, allocation the for to If any no current policy but world is policies. plans may our change change the policy. of the policy

Operator

from question next the Stifel. comes with Ben Our Nolan line of

Benjamin Nolan

point, Hamish, -- you into it. framed made maybe first, or have sheet comment move wanting could there the decarbonize that mean decarbonizing Actually, is about unpack you balance strong you could? does that that that forget that going replace just how exactly you things what I the to if to a have world, carbon But for much to -- comment, assets or maybe need emissions at to lower into you're dive some

Hamish Norton

don't we But companies the good think and good a it's think that we it really that in compliance guess having happen, happen. we high the will because burning shifts, good have to balance go with can that actually of for to companies going be overheads and more to favor mean, charter I it strong of rates.And is, will to getting a sheet. afford large yes, probably know a environment. what's And we if expensive there regulatory you strong can you what's the and and fuel, mean, us happen, very really going very business a to don't be for R&D up going know going I balance know whatever more happen. difficult to will like lever sounds going But big with anticipation lots that favor sheet. it the reason answer all The expensive what's think you what's is I resources

Christos Begleris

want prudent point, Hamish as to future, when add debt so that Ben. more Christos. a Hi to is may this on on we that take reduce lower possible We I capacity the if more further upside. think market, when the and during healthy the prices have to as debt we leverage are much it's in And effectively,

Benjamin Nolan

if that. sort bit. early-stage know as might capture what on you Sure. you Curious little investigated like, fuel I are or any guys you cases have the look in the types updated theme respect? best that color a technologies. Sticking of invested it's with whether candidates? think Yeah. thoughts in in or certain And with absolutely new agree I have any that some emerging Any that carbon particular type decarbonization that R&D

Nicos Rescos

this Hi Nicos. Ben, is

tested fleet. on as so the For investing have existing improving basically the we time we're being, that technologies much can been as

consumption You are have vessel. continuing efficiency that to devices energy we installing each proven commercial the [indiscernible] that improve and our are decrease appeal of

tested both We We're in being, of But We're later trying the on we We [indiscernible] solution both things carbon have testing materialize On cleaning of in it's we of terms believe will technologies an putting in do for improve the viable consumption of much on commercial and, can. be we're ends to existing to widely of we They into time are agnostic [indiscernible] of that order all it until both the vessels. course, performance.We all have hull intermediate capture testing acceptable capture, do the year. have solution. market. -- is our to matter a meet have as the make yes, But vessels robots. all as supply engines. that an paints. on effect growing carbon

Benjamin Nolan

is is color up That's down. that the in Eagle me. like and I guys like, above seems so synergies, integration then helpful. so Okay. to good the you share I it costs NAV. and far, the of for And on this with It But are gave seems price is -- know lastly appreciate industry. which difficult finding my at by math, The and respect least

look has out that Petros, I'm opening is out finding and that other if opportunities thus talked sellers about or So and can the Are played that thesis maximize utilize my for as you. potential million shares there have a the same of the say currency? that time, of way I liquidity you is the and merger what at a a at your doors can curious this value that good guys next for the transaction $X far. to you know you part assets

Hamish Norton

Well, look, closing in these helps, the this everything But doing like get help deals don't clearly already right, reputation good it and underestimate job deal is our to I hard one going of a done. market for other deals. how

have be they're done, hard looking probability. at We of gotten close keep And growing. them said, We to or to possible to lot may to try always we're a but more. one transactions. always they're being do certainly and able That we intend low

Benjamin Nolan

Okay. more optimistic -- you few would I maybe that you months know, than are about have guess, maybe don't I ago? a been

Hamish Norton

influence I We're the works. our best. optimism able the actually way world to think more our optimistic. But are is hope doing I we

Petros Pappas

usual of I also than think that are we environmental more regulations. the because optimistic

I think going a to -- years forward. place they on supply. on will have And think impact take positive this going to is happen for I several an impact

a believe. for that's optimism, I basis So our good

Hamish Norton

in what to mean environmental it regulations is large small operate I part a make the company. shipping no do Yeah. fun

a great centuries, small to For a time operate been shipping for it's company. fun long

I And and demanding more think less corporate sort fun is organization. of the becoming large changing. that's business a of

Benjamin Nolan

fun. have to fun always it's Well, Yeah.

appreciate appreciate the I color. So it. I

Operator

call end closing over the question-and-answer And Pappas the turn to looks back now have reached of session. I'll like Instructions] it for [Operator Mr. we remarks. the Petros

Petros Pappas

No very further Thank operator. comments, much. you

Operator

lines concludes This time. today's and you. you you may disconnect at this Thank your Thank your participation. conference, for

Star Bulk Carriers (SBLK) 23 May 242024 Q1 Earnings call transcript