Star Bulk ends losing run

Star Bulk chief executive Spyros Capralos hailed the company’s “radical transformation” as it returned to profit after two years of losses.
Spyros Capralos, chief executive of Star Bulk, with chairman Petros Pappas.

Spyros Capralos, chief executive of Star Bulk, with chairman Petros Pappas.

The Nasdaq-listed Greek owner edged a net profit of just $54,000 in the final three months of the year, reversing a $1.4m loss 12 month earlier.

Adjusted for one off items the result improved to just over $2m from an adjusted profit of $289,000 in the last quarter of 2012.

Adjusted earnings per share of $0.07 were above analyst’s predictions of $0.04.

The improved showing came despite a fall in fourth quarter revenue to $16.4m from $18m for the last leg of 2012.

Full year adjusted net profit was $9.7m compared to an adjusted net loss of $0.3m in 2012.

Twelve month revenue slipped to $70m from $86.1m the previous year.

Stellar fleet growth

Star Bulk had a busy year on the ordering front, investing $150m raised from capital markets in 11 newbuildings and four second hand vessels.

It also boosted its managed fleet by 14 bulkers to achieve economies of scale.

Spyros Capralos, CEO, said: “2013 marks the radical transformation of Star Bulk. We have achieved advantageous prices and terms, as those [newbuilding] orders were placed before prices started to increase by at least 15%.

“In addition, we acquired four modern second-hand vessels, also below today’s market prices and secured bank financing for all four of them.”

He added: “We believe that our company is now well positioned to take advantage of the improving dry bulk market, as we have repositioned our fleet towards the larger vessel sizes.

“We remain optimistic regarding the fundamental dynamics of the dry bulk industry, as we expect the interplay of contained vessel supply and resilient dry bulk commodity demand growth, to enhance the earnings power of our larger, diverse and competitive asset base.”

Including a pair of second hand vessels added since the turn of the year, Star Bulk will have 28 fully owned vessels in the water when all 11 of its newbuildings are delivered by the end of 2016.

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