CORPORATE PRESENTATION
OCTOBER 2024
KEY INVESTMENT HIGHLIGHTS
The largest, most liquid US-listed dry bulk company with significant operating leverage to a market with strong fundamentals
The Largest US-Listed Dry Bulk Company
- Fleet of 159 vessels, on a fully delivered(1) basis, with an average age of ~11.4 years
- Significant leverage to strong dry bulk supply fundamentals; enhanced by low overhead and operating expenses
- Largest market capitalization and greatest liquidity among US-listed peers
- Consolidator in the dry bulk industry; Completed the Eagle Bulk merger on April 9th
Fully Integrated Management Platform
- Consistently amongst the lowest OPEX and G&A operators while maintain highest Rightship ranking
Strong Balance Sheet
- Total cash(1) of ~$474 million and limited capex requirement
- Net debt reduction of ~34% since 2021
Shareholder's Friendly Capital Allocation Policy
- Since 2021, dividend distributions were over $1.25 billion or $12.2 per share
- Share buybacks are over $0.4 billion for the same period
Favorable Fundamentals
- Fleet growth during 2024-26 is expected to be limited and is unlikely to exceed 3.0% per annum.
- Demand is projected to increase by 2.2% in tons and 4.3% in ton-miles
- ~97% of Star Bulk's fleet is equipped with scrubbers, providing leverage to increasing fuel price spreads and a strong competitive advantage during downturns
Fleet Size (2) (DWT)
15.0M
11.7M
4.8M4.4M5.0M
Peer 1 | Peer 3 | Peer 4 | Peer 2 |
Market Cap (2) ($ billions)
$2.5$2.5
$0.7 | $0.5 | ||||
$0.3 | |||||
Peer 1 | Peer 2 | Peer 3 | Peer 4 |
Trading Liquidity (2) (90-day $ millions)
$38.5
$27.0
$11.3
$3.2$1.9
Peer 1 | Peer 2 | Peer 3 | Peer 4 |
3 | (1) | As of October 4th , 2024 |
(2) | As of September 2nd, 2024 |
BUILDING AN INSTITUTIONAL DRY BULK COMPANY
Development of fleet, market cap. and trading volume
4,000
Merged with Eagle Bulk, from which we acquired 52 Supramax vessels
100,000
Successful track record of
3,500
acquiring fleets by issuing shares at or above NAV
3,000
2,500
2,000
1,500
1,000
500
Acquired 3 newbuilding Newcastlemax vessels from Ocean Bulk Carriers
Acquired a fleet of 15 vessels from Songa Bulk
Acquired a fleet of 16 vessels from
Augustea Atlantica and York Capital
Management
Acquired 3 vessels from E.R. Capital
Holdings
Acquired 11 vessels from Delphin Shipping
Acquired 3 vessels from E.R. Capital Holdings and 7 vessels from Scorpio Bulkers
During 2023-2024 sold 26 vessels, part of our fleet renewal strategy to dispose older tonnage
90,000
80,000
70,000
~$2.5
Bn
50,000
~$37.5 | |
40,000 | Mn |
30,000 | |
20,000 | |
10,000 |
-
Jan-17Apr-17Jul-17Oct-17Jan-18Apr-18Jul-18Oct-18Jan-19Apr-19Jul-19Oct-19Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Oct-23Jan-24Apr-24Jul-24
0 |
90day Avg. Value ($) | Market Cap. | |
4 | Source: Bloomberg |
CREATING VALUE FOR SHAREHOLDERS
Net Debt Reduction (in $million)
155 | 160 | |||||||||||||||
126 | 128 | 126 | 140 | |||||||||||||
$1,407 | 120 | |||||||||||||||
(2) | ||||||||||||||||
$1,209 | ||||||||||||||||
100 | ||||||||||||||||
$1,005 | $937 | |||||||||||||||
$865 | 80 | |||||||||||||||
60 | ||||||||||||||||
40 | ||||||||||||||||
20 | ||||||||||||||||
0 | ||||||||||||||||
Q2 2021 | Q2 2022 | Q2 2023 | Q2 2024 (1) | |||||||||||||
Net Debt | Scrap Value | # vessels | ||||||||||||||
Capital Allocation & Fleet Growth
- Star Bulk has been creating value for its shareholders through consecutive fleet buyouts by issuing shares at or above NAV.
- Full payout dividend policy resulted in over $1.25 billion cumulative dividends since 2021
- In addition, since 2022 we have completed share buybacks of $423 million
- 34% net debt reduction since 2021. Net debt covered entirely by fleet scrap value
Dividends (in $million)
$1,263
$1,095 | $168 | ||||
$961 | |||||
$134 | |||||
$526 | |||||
$435 | |||||
$435 | |||||
2021 | 2022 | 2023 | 6M 2024 | ||
Dividend Declared | Cumulative dividend payments | ||||
Total Shareholder Value Creation (in $million)
Total actions of $2.3 billion in shareholders value creation since 2021
$655 | Dividend Payments |
Share Buybacks | |
$1,263 | Regular Debt Amortization |
$423 |
Notes: | ||
(1) | Net Debt figure for Q2 2024 excludes Convertible Bond that matured on August 1st | |
5 | (2) | Indicative scrap values for SBLKs fleet (2.4 million lightweight) based on current market scrap prices of $510/ldt |
CONTINUED OPERATIONAL EXCELLENCE
We operate a fleet with one of the lowest average daily OPEX among our peers without compromising quality
•
•
•
For Q2 2024 vessel OPEX(1) were $5,319 per vessel per day
Net cash G&A(2) expenses per vessel per day were $1,371 for Q2 2024
We are consistently in the top 3 dry bulk operators amongst our peer group in Rightship Ratings
Average Daily OPEX(1) | Average Rightship risk rating (June 2024) |
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
152,281
150,000
102,980 | 106,543 | 4.6 | 4.6 | 4.5 | |
97,107 | 102,045 | ||||
100,000 | 3.8 | ||||
$6,847 | |||||
$5,993 | $6,275 | 3.4 | |||
$5,319 | 50,000 |
$5,089 | |
0 |
-50,000
-100,000 | ||||||||||||
SBLK | Peer A | Peer B | Peer C | Peer D | PEER 1 | SBLK | PEER 2 | PEER 3 | PEER 4 | |||
Daily OPEX | Average dwt | |||||||||||
(1) | Figures exclude pre-delivery and COVID -19 related expenses | |
(2) | Excludes share incentive plans, includes management fees | |
6 | Source: Company filings |
INTEGRATION WITH EAGLE BULK FOCUSES ON SYNERGIES
- Global presence of combined entity solidified in three different continents:
- Far East: Singapore offices have merged into one and continue as a commercial and technical management hub aligning ship management practices, covering Asia/ Pacific
- USA: Stamford office continues operations both for commercial and technical management
- Europe: Headquarters in Athens and Limassol office complemented with commercial presence in Copenhagen
- Commercial teams for the Supramax and Ultramax vessels in the three continents are close to completion of their integration, managing the second largest Supramax and Ultramax fleet globally
- Significant synergies are expected from the centralization of the Procurement of all stores, spares parts, bunkers and lubricants for the combined fleet
- Crewing management is gradually being taken in-house, with the expected cost reduction of $600/vessel/day to be realized by Q2 2025
- Dry docks of 12 ex-Eagle Bulk vessels have benefited from Star Bulk competitive pricing agreements with service providers and shipyards globally
- Marine Safety Quality and Technical maintenance standards, processes, and policies applied across the combined fleet aligning with the Star Bulk Rightship Safety Score and Port State Control performance
- Commercial, financial, technical, vessels performance systems are being integrated to enable efficiencies among the different offices and to create further synergies
7
SCALED FLEET WITH SIGNIFICANT OPERATING LEVERAGE
Fleet Snapshot | Fleet composition based on dwt |
- We have five firm shipbuilding contracts with Qingdao Shipyard for the construction of 82k dwt Kamsarmax newbuilding vessels
- Our newbuilding vessels are expected to be delivered in Q4 2025, Q2 and Q3 2026
- During 2024, we have agreed to sell ten vessels for total gross proceeds of $180 million with an average age of 15.1 years
- We have in total eight long term charter-in contracts plus two newbuilding charter-in contracts to be delivered in H2 2024
- CAPEX for vessel upgrades focused on sustainable shipping and compliance with emissions regulations
Ultramax /
Supramax
29%
159 | Newcastlemax / |
vessels | Capesize |
42% | |
Panamax /
Kamsarmax
29%
Fleet Breakdown (by # vessels)
4 | ||||||||||||
3 | ||||||||||||
5 | ||||||||||||
1 | 48 | |||||||||||
39 | ||||||||||||
25 | ||||||||||||
17 | 17 | |||||||||||
7 | 1 | |||||||||||
Newcastlemax | Capesize | Post Panamax | Kamsarmax | Panamax | Ultramax | Supramax | ||||||
OTW | NB | CH-IN | ||||||||||
8 | (1) | Including five SBLK newbuilding vessels |
A SOLID AND TRANSPARENT ESG STRATEGY
The Star Bulk vision
Our ESG Performance
Our Decarbonization Strategy
To be the global leader in sustainable dry bulk shipping
- Committed to the United Nations Global Compact, endorsing its Ten Principles on human rights, labor, environment, and anti-corruption
- Contributing to the advancement of the United Nations Sustainable Development Goals
Environment
- Ensuring timely and efficient compliance with environmental regulations
- Tracking and disclosing the company's GHG emissions throughout the entire value chain
- Establishing Science-Based Targets to outline the pathway toward the reduction of carbon footprint
- Collaborating with our partners on initiatives such as the Poseidon Principles and the Sea Cargo Charter
Society
- Strong retention rates for both onboard and shore-based employees
- Top rankings in the RightShip Safety Score among dry bulk operators globally
- Commitment to the wellbeing and professional development of our employees
- Investments in community initiatives, including charity, education, and sports
- Inclusion of female cadets in our vessel crews
Governance
- A robust, independent Board of Directors consisting of seasoned shipping experts
- Comprehensive risk management practices, including strong cybersecurity measures
- Performance management directly tied to compensation and benefits
- An ESG Committee established at the Board of Directors level
- Annual ESG reporting, participation in the Carbon Disclosure Project
To lead by example in the industry's efforts towards a net zero future:
- Renewing the Star Bulk fleet
- Monitoring and transparent reporting of emissions
- Improving the energy efficiency of our fleet
- Participating in R&D for new technologies and alternative fuels
- Developing partnerships and participating in alliances
9
MARKET UPDATE
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Star Bulk Carriers Corporation published this content on October 16, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 17, 2024 at 10:22:04.317.