SBLK - Earnings call transcript Q2 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 Second 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 At participants time, this all mode. listen on the [Operator that you today. must may I recorded this be Instructions] conference advise one We pass speakers the to now of floor today, your Mr. Spyrou. ahead, go Please sir.

Simos Spyrou

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

latest on read questions. to Before today's to taken we harbor the we through on to I results, Bulk a begin, operations, the actions of presentation, for on In our industry evolution quarter, quarter cash open front up Eagle go safe the you vessel the our and on fundamentals presentation. take #X value ask will an ESG Slide for before views our statement second during moment kindly our our shareholders integration, update update, create fleet we

of a turn to Let quarter our presentation highlights. summary the Slide us XXXX second of now #X for

EBITDA for quarter second $X.XX income million at the $XXX to income XXXX, adjusted Net earnings. reported million the net amounted adjusted Adjusted $XX share $XXX with million the per the of or quarter. following: company was For

and distributions as dividend the buybacks are of a of dividend over $X.XX, dividend billion For per share quarter, per XXXX, policy, $X.XX second $XX.XX share XXXX. over X, payable existing our we share per Since declared $XXX on million. or September

$XXX stands $ at strong total Our debt liquidity X.XX stands million. Meanwhile, total at our today billion.

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

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

to vessel. our vessel cash Eagle expenses Bulk per was net cash per $X,XXX. amounted million. Eagle merger vessels X, and $XXX.X X, Bulks Our we have been part Bulk around convertible XXX the out completed of had transaction Capital converted with August received Cash vessels share have and lending Eagle fully canceled. less which been G&A combined matured X,XXXXXX of days daily OpEx Eagle share agreement less of stands contributed to shares XXX,XXX,XXX the X G&A X,XXX,XXX Bulk Eagle The each in day delivered per the have shares Star $XX,XXX per The shares. fully TCE basis, diluted a Services as April Jeffries today notes, announced. XX day we amounted returned notes Kamsarmax with count vessels total Bulk stock. on is on from during of including on Starbucks and newbuilding OpEx at connection the Bulk XXXX, common loaned and and to Currently, as Therefore, quarter. a second to convertible

sold these start have $XXX and expected their quarter gross Hydrus namely new to owners. XX are be to for proceeds Star vessels Two vessels, we XXXX, of a During of during million. total delivered Iris third the

As at equity newbuilding aside the and $XX of after sales ATM of June million. vessel XX, the million $XX and the buybacks installments left from share stands XXXX,

shareholder a CapEx ESD cash transaction. treatment were with payment, repayments, company's the levels in #X in quarter. received operating started cash balance of sale million of payments generated million. which we during the debt above we sold cash graphically $XXX the over third $ increase of We the $XXX be by the balance value. the water $XXX and policy and the We the of ballast #X out create second last years of are quarter. by including vessels end the flow provides company's of installations the and payments. from various Slide to proceeds new dividend X down reduced of the illustrates changes and allocation an from at for second the million $XX quarter capital first the cash, quarter, Bulk the from will positive will overview million activities and building After During Slide quarter the equity million million at X have X used Eagle $XXX

we our the by show top the net On debt we evolution. left, leverage Since reduced have XXXX, XX%. approximately in company

its debt from above buyouts average vessel consecutive has net at Our or issuing creating per million to million value fleet NAV. Starbucks decreased been per by has $X $XX shares vessel. through for shareholders

$X.XX Over the same quarterly have billion. period, over consecutive dividends we declared of

billion Since that elevated bought Star and we valuations. I on same shareholders. integration have the accretively. do above, efficient some so S&P of time, We sell on shareholders, million see shares total, pass and and update Combining have the Nicos to our stock. for the value of Bulk sheet we we our balance at Bulks there an floor back historically returning the COO, vessels to at In our capital shares to XXXX, less transaction, values back when will X.X are to to deleveraging for XXX buying Eagle equity have we back our focused to have buy create taken of actions older opportunities of all taken XXXX, while using performance. attractive advantage our now $ proceeds worth Rescos, our since of operational

Nicos Rescos

management corporate continuous practices both Copenhagen management covered Asia and hub, The offices technical the presence presence upon to Singapore The integration offices leverage with us the underway. it summary the Slide commercial one Greece, X back entity headquarters Together with entity the strong the of merged Stamford Denmark on the operations, and Eagle the the currently continue for completion, transaction in U.S. Cyprus. Atlantic operations And of continent. Atlantic in as aligning illustrates Athens with we operations and Singapore, allow Europe, will into office, Bulk respective U.S., management combined is a maintained Pacific. The Simos. you, and integration. chartering in our Thank covering have commercial go in a ship in technical global

Ultramax largest Ultramax combining Supramax improve to second performance. the aiming globally, vessels, fleet trading of commercial of capabilities Supramax are nearing integration our We completion our for TCE managing the teams our the and

the include and fleet and sector both further between strategy are Basin. our employment Atlantic business We Pacific the the rebalancing to optimizing our distribution

XXXX. pricing combined benefiting realized is competitive per providers our introduced docks and flagship being merger synergies shipyards for Bulk standards, aligning and Star update. the agreements lubricants score an vessels at Fleet XXXX. processes $XXX combined Bulk expected cost QX and and performance. parts, spare turn of the QX Star and Slide expenses to procurement expenses fleet. per reduction with Dry offices and towards XX by the and $X,XXX Significant across Bulk the period. cash Stamford the operational [indiscernible] maintenance control have quality of across reduction and synergies. policies for ex at service the Please for expected per with following all Marine operational planned cost safety same globally. the taken cost and gradually applied be Operating the vessel day with centralization we Eagle planned are Singapore fleet, day are in-house from processes, stores, systems vessel We $X,XXX safety, from where realizing are of maintenance, was and control technical G&A to provide procurement Net X, per of bunkers

of provides continue amongst of and the some we rides a guidance listed of update dry days. around rate total in the and use to peers Slide top fleet our relevant safety terms at high dock In X addition, score.

In On period. we docking page, the the provide we drive schedule, total, same of the which $XX.X top vessels. is approximately remain our expense will expect off-hire at right of XX estimated dry of for expected XXXX the for in have XXX to million days

bottom XXXX. our now new reducing QX fleet. we enhancing treatment we our in CII improving latest with Based QX are being in consumption upgrade XI On ballast wood efficiency of upgrading environmental building the fitted. schedule, fuel new and investing and on have technologies our with the operational attractiveness to by delivered our our the expenses the CapEx schedule, and be footprint, investment continue illustrating expected available, page, XXXX, commercial of regulations, In CapEx aimed construction our fleet Bulk the fleet energy building XXX% of investors with Star the line QX our in latest further and a

saving we our The current capacity. by estimates numbers employment X the XX and year. around of above on to more energy planning, dry dock, planned yard XX devices Please the have for completed end Slide program, based retrofit our are on vessels vessel update with installations turn an fleet Regarding retrofit for sales.

during reducing our the of sales of vessels average we'll continue fleet levels, historically gross to opportunistically overall improving On agreed QX fleet having X sell for at age proceeds million, front, and efficiency. $XX disposing total attractive vessels vessel

XX the Go back a of chartering have rollover of now the contracts, Following we chartering vessels. total existing

dry now Strategy will ESG Nicos. floor construction our the Charis mix, X had with delivered Considering amongst our QX peers pass Qingdao vessel XXX you, our European the contracts average the years. next a I and and ship bulk have for of vessels Kamsarmax largest during building Officer, fleet fleet operate fully with firm with and building basis the first U.S. on aforementioned of the ship XX,XXX shipyard change of in vessels age listed one delivering update. with year. we XX.X We to Chief an Plakantonaki Thank

Charis Plakantonaki

Please ESG continued on XX, highlight our the Slide turn to front. where we leadership

the to X.X% CII gas be increased report the emissions. our quarter during Scope by X%, This XXXX Scope compared X we were X.X% were of XXXX. XXXX, the greenhouse new performance lower approximately than completed reduced respective previous the approximately top consecutive of in measured of year. for approximately our of years fleet by the second XXXX. measurement while will year quarter During third the greenhouse company's X emissions emissions

different are our define X, sulfur Targets working coming in X for on and sensibility with the systems the Star systems with the underway front, we the regulation taking matter, the the to during analysis and action and the from used clearly directives Control the office Science-Based into the agreement bug rules few Area EU gap to The ESG company's On the is for XXXX, identify days Maritime are hours by update, force address incident box processes. preparing by Emission July later. have related further on reporting worldwide the vessels later corporate for compliance footprint caused carbon Sea Strike Bulk Paris May reporting by were oxides XXXX, office to particular Crowd on and company Moving we XXXX. effect directive Mediterranean use in forward, X-X is restored setting regulatory In the line Fuel antivirus to fixed in affected the on January to vessels both company in immediate

was front, awards, the implementation awarded example, and sustainable vessel along development in continue CyberOwl on Credit Bulk systems female society in employment efforts development with and our the cadets continuous Starlink the board will CEO, of now in sustainable the the our on monitors of to vessels security. On Pappas the of performance the deployment [indiscernible] the industry Star market lead Maritime I by the recognizing for Petros tactics floor and pass industry. company's technology shipping

Petros Pappas

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

at a but CPR costs from X.X% during XXXX, over induce helped During fleet, X.X% the XX the the years. fleet X% the slightly deadweight The deadweight tonnage XX still Furthermore, future growth during first that and X The dry XX stabilized last the control. have was regulations, X.X high years lower competition to prices net of levels low average under XX.X% scrap has a and until and at during of elevated and over fleet. bunker at slow years. stimulation Uncertainty types to clean last X costs next new vessels and keep months. due bulk delivered environmental due downturns deadweight has or was age the the X% of of increased and knots vessel including the CII propulsion, orders incentivizes have for of speed respectively, retrofits of stands of increased over energy increasingly XXXX above million and on seasonal capacity and shipbuilding should fleet half XX.X at level book overage stand of a years supply and XX.X limited year-to-date total order and demolition relative the levels million sent while million comparatively stabilized XX.X inefficient next moderate of several late Xi and and steaming XX.X should other months between last to inflated

high fully available a has congestion reduction half During supply a second bulk sizes, that there dry ports global tonnage port year-over-year of as of last all and over the the XXXX, first well a XXXX, indicate the effect for Supramax on with following the congestion congestion X%. global demand and pliability during positive X supply that approximately Recent is increase years as normalized gradually balance. on Chinese by of trends to strong half deflated

sea that are recover continue the by in partial trade Red strong for However, recovery despite of in crossings to rising bulk tensions Panama the Canal dry since year. of XXXX expected cause end the late the to fully the inefficiencies

to is the couple As even assumption a result trends, over next above normal levels. exceed the current of unlikely annum per of remains at activity low fleet Malaysian the under the that growth X% years,

by X.X% Let me X.X% expand According for and to and and dry now trade ton X.X% a in total XXXX respectively. by turn XX X.X% projected demand. to XXXX bulk miles, to of brief [indiscernible], Slide is tons during update in and

amid back volumes upgraded The and the of exports GDP increased growth achieve company a ability on of forecast the full recent import faster U.S. to XXXX X% while X.X%, of first same pace, XXXX the around as dry Africa total exports, as last year-over-year XXXX, at year and the household in the that X.X% infrastructure, [indiscernible] is policy. government in the increased X.X% demand experiencing monetary quarters increased geopolitical strong from Chinese easing and expectations for remained the initial striving while on in its by Nevertheless, bulk by minor that supported pace continue to during highlighted expected expectations Canal officials iron projecting half from comments and X%, is bulk half QX, and strength During X.X% to spending. property from by rest target supported market its the and world inefficiencies X.X% strong commodities confidence and prices global volumes due year-on-year at recovery Latin exports China for coal by a IMF demand by increased West for commodity over manufacturing the is record respectively. for and XXXX to and America, and XXXX. missing of GDP of X of of dry slowdown and a Table ore, first lower back X.X% of the growth has the

economies following disruptions. geopolitical-related imports trade declined raise year-over-year to were X.X% contraction mainly the also are as half, East During Meanwhile, production to some years increased X.X% production to during moving export in a state ore iron port and by by by of million by tons X.X% coming miles last the year-over-year, X.X%, domestic half, expected first X.X% up and and steel by output Middle first year. India, XX from higher majors connected with and versus prompted for the increase is approximately X by Southeast in tons response. economies while increasing ore We consumption supply in has tariffs XX.X% China as the excess respectively, China Asia. and expand ton Western XXXX. Iron during

to during rest tons. during guidance recovery first hand, XXX expected production. On since India a Moreover, Vale by achieve million deliver to project on world end strong coal a Coal XXX half Global demand during but will at half, the further is is the [indiscernible] by XXX expected XXXX. quantities both and stand ore strong in Atlantic of the the as record increase of Vale XXXX, in of this million the the X.X% thermal from is been last the million coal of most exports. production short-haul come trend that upward contracts decline during the and miles by by production September tons reversal the in imports in production million driven to is stable XXX to place of X.X% up stabilization expected directed of set to was prices. increased [indiscernible] iron hydropower and domestic Chinese from provinces a by in other electricity XXXX outlook exports highlighting that to expand on the security of while ramp increase levels, promising upper by marginally is has year-on-year production to X X.X% during It has ore inflated trend increased X.X% a end generation. following growth worth first medium-term but iron months, years ton seasonal from is the trade and of supported a and XXXX. the focus gradual year-on-year energy trade, first strength at the of Indonesian the production last Atlantic the has X.X% Nevertheless, by taking in

a for first as X.X% XXXX. as and GDP while production during start generates experienced lots in short-term growth of in exports XX% the affected inland positive Chinese exports continued Africa America are expected expand focus half at has smaller Argentinian leading same the Moreover, war. expand rate that miles bulk during in sizes. the of the grain positive Latin provides expand sector. X% highest in outpaced bauxite raised quarters, to at last first trade and the during backhaul The of price is growth out XXXX. expected the indicator trade support half level with constraints a forthcoming coal production a during Ukraine by XX% Capesize half of to by by along strong consumption to XXXX. increase and funds emerging increased heat tons approximately pace security trades, highest trade buyer crop infrastructure a term. food volumes ton of for medium the flat the Russian year-over-year and been arbitral prospects Grains but to on the Minor X.X% is a certify U.S. the requirements. is import export prices, XXXX, a the expected recent by exports areas. has strong in Exports and outlook since grain strong During the the recovery. increased Lower led has global ton as have container is continues to to in and by of trade second domestic growth strength market terms by volumes to [indiscernible] improved wheat steel frost and miles for and to correlation increase to West waves Total But exports India high the expected during was key time, from

As final built medium-term question prospects about a -fitted well uncertainties fleet global and positioned favorable the I order your its aging our of now taking the were of to create comment, environmental to Without pass the has book any a you [indiscernible] diverse may will given is despite regulations. Bulk Star geopolitical operate more floor take to operator that industry, have. constructive oncoming fleet answer the rigorous and efficiently opportunities any attractive shareholders. advantage to time, and value for the of over

Operator

question-answer will Instructions] We question first comes Jefferies. The session. to Nokta back from now Omar with [Operator the come

Omar Nokta

Good update. afternoon. the Thanks for

things far of ask, that. market say. for steady steel crazy wanted to looking of somewhat markets. I there's some would look terms -- figures globally. earnings. show this the on different. least just dry are just softer looks couple questions it when they've at the a today, a and at gave continued happening we third aren't in Clearly, realized of perhaps a different thus holding as prices, quite bit but up I quarter environment, Obviously, rates are of me. we're they just where too more steel like But you is the and bulk well, into volatility, to in Just been you touch wanted market Petros, overview an related And

that how looks And the are of given are north and also a this environment? so wanted dry it bulk type I earning market effect And moment? ask, you XX to steel that bit Capes softer, on are any bit the the of then you at in this surprised seeing just perhaps backdrop having

Petros Pappas

the question. we're number a over half for thanks for Omar, second the of positive reasons. Well, XXXX actually of

finishing that anytime see soon. Ukrainian we sea Red war all, the and the of are First not

And effect Then around to this the basically steaming knots. the see will that has fleet create an regulations is continue the this slow So starting are And market. at environmental to inefficiencies. in bite. you XX.X

will [indiscernible] see try to will believe we'll bauxite ore this increasing at we level, Vale increasing up So we grain not exports. forward. We X% keep trades. high and think growth going their keeping we forward. going their or iron worse going a the We to is get see exports. much the GDP let exports, China Then stronger And see that

slowing new also down. see We delivery building

from the past, judging the exports. and more the every stronger of -- much -- than second is So is half year half first much

steel we they remain it be So of related and in overall, where least. there's think And it to remain the manufacturing decent the less reasons months, or export for for whether -- not because will X of as can. will that as going market of continue strong will we that more they to long China next production just think going production the be it's because steel at will to forward, especially

from market to year. seeing a the So for be respects, half of we all expect second the decent

Omar Nokta

And maybe thinking of more time. the midsize segment about just and follow-up a this kind

of had outperform year think, coming it But segment. one perhaps. into performance the been segments you sort here this say, like the done feels driving of quite -- that, think would Capes on and themes it like case the And the would year the that stronger late to well What's midsized radar that the I was and have Kamsarmax midsize expectation the last looks earlier. under I say? Ultra somewhat

Petros Pappas

actually. interconnected are sizes all Well,

-- strong the go other Supramaxes from splitting So way by will size strong like say or midsize. one cover will will try would if it's I so to we cargoes, for and that up charters the capes, example, very lag to not around rest see -- the

Supramax -- hedges, and the the whenever actually, the So Capesize better. doing the X are

because have Capes were Panamax And be is [indiscernible]. average, think, that have $XX,XXX, I types have You mean will Supras see pretty I above to In the any cargo vessels admit have done pretty all sector, strong which pretty strong. -- remained I I'm I ship media flowing well is of I the doing the well. sector think into container on case, to that Kamsarmaxes in cargoes fixed will relatively was next the half side. on vessels, coal been a bit probably also doing but because first going have maybe higher the on trade foresee they $XX,XXX strong, grain the our because of there's from other quarter, pretty X year be because surprised types expect average, above the trade for the we of well forward we

Operator

Thank you, Mr.

Our next question comes Securities. from [indiscernible] Clarkson

Unknown Analyst

allocation. want to on up Just touch capital

You How have you quite a buybacks significant share portion of forward? at are looking cash now. going

Petros Pappas

spent $XXX it [indiscernible] doesn't And the it in of of buying was substantially and from seller but shareholders' frankly, seller, the stock, XX Oaktree back we fall the net point value the below view, know million the what was. today's below market value. million was, shares price asset but who was

amount. recall, that. sheet shareholders. in those figure at So we're and out buying of much like us it vessel huge to a exhausted was permanently. a of what do cash the policy let dividend million we've as breadth back that, excess not on got time, of you the recover cash big benefit a shares it's by do. bunch big and a might have keeping And of cash out that per And feel to we have a paying We, but effort $X.X balance we of our after some I We're pretty

cash it something pressure not think to until with moment, what the don't out up builds for to figure under more we're substantial. do I to So that

Unknown Analyst

follow That's one that. are sort forced in, grow be? at which great up maybe it if choose And segment growth? color. you to How to And of were looking would to you just on a

Petros Pappas

bunch Ultramaxes. being diversified. of bought What we And we've and really a like Supramaxes just

find if generally. we've we we a a So larger partner, merger partner merger to find like case ideally, and would got ships

what always you want. get what we So get hopefully, you we need. But can

Operator

next Ben Our with Stifel. Nolan from comes question

Unknown Analyst

wanted moving But recently. ask, this actually since is on sort see of you do been Canela have This for What to I values secondhand asset forward? direction Ben. plateauing

Unknown Executive

[indiscernible] about talk ship of to during well. want have you Ship the ranges Do As this first substantially Shipments. year. increased half

the will seeing plateau We the Chivas months. performs lot end how freight depend are at on to towards of mentioned, remain as market expect that the we a year levels, these stabilization over X We market a X, probably last and is but the be when stronger. believe the

Petros Pappas

the I still guess shipyards quite are full. And

Unknown Executive

actually starting for other sizes, Shipyard are almost is Yes. to capacity -- the for slowly all are and see filled. now XXXX And we gone. we being XXXX especially

vessels. we're here is upside the Otherwise, from -- is, there market this unless, of think of that will close very drive it something price haven't prices the few and remains decades, point. such we course, prices market for Yes. conditions at if high to a reached will believe we a modern in posting So have the the our a some huge pretty in a that is of overall, we actually seen But the plateau since vessels actually. where highs of high they values

Operator

ask I comments. gentlemen, turn [Operator question no back to queue. one to in at Instructions] and management a That would a for to this Once at again, questions ladies this time. to There time. question closing like are the call ask

Petros Pappas

much, very a have everybody. operator. summer, and No you further Thank great comments,

Operator

Thank today's conclude this teleconference. does you,

this you You great and a participation, day. may lines Thank have at disconnect time. your your for

Star Bulk Carriers (SBLK) 8 Aug 242024 Q2 Earnings call transcript