Star Bulk Carriers : Q2 2024 - Earnings Presentation

FINANCIAL RESULTS Q2 2024

AUGUST 2024

Q2 2024 Company Highlights

Q2 Financial Highlights

• Net Income of $106 million and Adjusted Net Income(1) of $89 million
• Adjusted EBITDA(2) of $153 million
• Declared dividend of $0.70 per share with record date of August 27th, 2024
• Since 2021, dividend distributions were over $1.25 billion or $12.2 per share, and share buybacks are over $0.4 billion
• Total cash (5) of ~$516 million
• Total debt and lease obligations(5) of $1,378 million

Eagle Bulk merger

• The transaction was completed April 9th, and the Eagle Bulk vessels contributed for 83 days each during the second quarter
• Cash received following the Eagle Merger amounted to $104.3 million
• Eagle Bulk's Convertible Notes matured on August 1, 2024
  and converted to 5,971,284 shares of Star Bulk common stock

Q2 Daily Figures

TCE per vessel(3)	$19,268
Avg. daily OPEX per vessel(4)	$5,319
Avg. daily net cash G&A expenses per vessel	$1,371
TCE less OPEX less G&A expenses	$12,578

Fleet Update

• Fleet of 159 vessels on a fully delivered basis, including 5 newbuilding contracts(6)
• During 2024, we have sold ten vessels for total gross proceeds of ~ $180 million
• Two of these vessels - Star Iris and Star Hydrus - are expected to be delivered during Q3 to their new owners

• 1,341,584 shares of Star Bulk have been loaned out as part of a share lending agreement with Jefferies Capital Services and have been returned and cancelled
• The fully diluted share count is 118,825,307

Notes:

1. Adjusted Net Income excludes certain non-cash items
2. Adjusted EBITDA excludes certain non-cash items
3. TCE = (Total voyage revenues - Voyage expenses - Charter-in hire expenses+ Realized gain/(loss) from bunker and FFAs) /Available Days
4. Excludes predelivery and one-off expenses
5. As of August 6th, 2024

(6) Upon delivery of the two sold vessels	3

Cash walk Q2 2024

Q2 2024 Cash Flow Bridge (USD million)

$1,200.0

$1,000.0

$800.0

$388.1 ($398.1 )

$129.0

($84.8 )

$600.0

$400.0

$200.0

$0.0

$142.6

$372.8

$104.3(1)

$268.5

($47.1 )

($13.7 ) ($3.4 ) $485.5

Cash at Beginning	Cash from	Cash proceeds New debt drawn	Debt	Dividend Payment Scheduled debt	Vessel	ESD & BWTS &	Cash at end of
of Period Q2 2024	Operations	from vessel sales	Prepayments(2)	amortization	Acquisitions &	VPM CAPEX	Period Q2 2024
		& Insurance			Other
		Proceeds

Notes:

(1) Cash received following the Eagle Merger amounted to $104.3 million

(2) Including $22.6 million of debt prepayment related to vessel sales

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Creating Value for Shareholders

Net Debt Reduction (in $million)

												155		160
126	128		126						140
$1,407													120
												$1,209(2)
														100
		$1,005								$937
						$865					80
														60
														40
														20
														0
	Q2 2021			Q2 2022			Q2 2023	Q2 2024(1)
				Net Debt		Scrap Value	# vessels

Dividends (in $million)

$1,263

				$1,095	$168
			$961
			$134
			$526
$435
$435
2021	2022	2023	6M 2024
		Dividend Declared		Cumulative dividend payments

Capital Allocation & Fleet Growth	Total Shareholder Value Creation (in $million)
• Star Bulk has been creating value for its shareholders
through consecutive fleet buyouts by issuing shares at or
above NAV.	$655

• 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

Notes:

1. Net Debt figure for Q2 2024 excludes Convertible Bond that matured on August 1st
2. Indicative scrap values for SBLKs fleet (2.4 million lightweight) based on current market scrap prices of $510/ldt

	Dividend Payments
	Share Buybacks
$1,263	Regular Debt Amortization

$423

Total actions of $2.3 billion in shareholders value creation

since 2021

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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

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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)

$10,000									152,281
									150,000
$9,000
		97,107	102,980	106,543	102,045
$8,000
									100,000
$7,000									$6,847
						$5,993	$6,275
$6,000		$5,319
								50,000
			$5,089
$5,000
$4,000
									0
$3,000
$2,000									-50,000
$1,000
$0										-100,000
		SBLK		Peer A	Peer B	Peer C	Peer D
					Daily OPEX		Average dwt

Average Rightship safety score (June 2024)

4.6

4.6

4.5

3.8 3.4

PEER 1

SBLK

PEER 2

PEER 3

PEER 4

1. Figures exclude pre-delivery expenses, based on latest available public figures
2. Excludes share incentive plans, includes management fees

Source: Company filings	7

Investing in Upgrading and Renewing our fleet

Fleet Lifetime Upgrades

• CAPEX for vessel upgrades focused on sustainable shipping and compliance with emissions regulations:

Upcoming Dry Docks

$21.6

$19.6

$15.2

• • ESD installation program: During Q2 2024 we had 3 vessels fitted with ESDs
  • Telemetry project: we plan to fit the vessels acquired from Eagle Bulk by H1 2025
• Our newbuilding vessels are expected to be delivered in Q4 2025, Q2 and Q3 2026

		million)($			$9.8
		Drydocking
		Expense
		Q3 2024E	Q4 2024E	Q1 2025E	Q2 2025E
				Q3 2024 E	Q4 2024 E	Q1 2025 E	Q2 2025 E
	Offhire days due to DD,	573	393	234	510
	BWTS and ESD

Newbuilding and Efficiency Upgrades CAPEX Schedule

$83.3

$73.4

$8.1	$7.7	$4.6	$1.8	$0.4
Q3 2024E		Q4 2024E		2025E	2026E
			NB Capex		ESD, BWTS and Telemetry Capex

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Scaled Fleet with Significant Operating Leverage

Fleet Update

• One of the largest dry bulk fleet among U.S. and European listed peers with 159 vessels, on a fully delivered basis(1), with an average age of ~11.3 years
• We have five firm shipbuilding contracts with Qingdao Shipyard for the construction of 82k dwt Kamsarmax newbuilding vessels
• During 2024, we have agreed to sell ten vessels for total gross proceeds of $180 million
• • Big Bang, Pantagruel, Stellar Eagle, Star Audrey, Crested Eagle, Star Pyxis, Star Paola, Crowned Eagle, Star Iris and Star Hydrus with an average age of 15.1 years
• During Q2, we agreed to sell one more vessel Star Iris and in July 2024 we agreed to sell Star Hydrus. Both vessels are expected to be delivered to their new owners during Q3 2024.
• We have in total eight long term charter-in contracts plus two newbuilding charter-in contracts to be delivered in H2 2024

Fleet Breakdown (by # vessels)

												4
					3
						5
	1											48
				39
17	17												25
		7								1
Newcastlemax	Capesize	Post Panamax	Kamsarmax		Panamax	Ultramax	Supramax
				OTW				NB		CH-IN

(1) Including five SBLK newbuilding vessels

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Leading in the industry's ESG efforts

During Q2 2024, we completed the measurement of the company's 2023 GHG emissions. Scope 1 GHG emissions were reduced by ~4%, while the respective CII of our fleet reduced by ~5.7% compared to 2022. Scope 3 emissions, measured for a consecutive year, were ~9.5 % lower than the previous year.

Moving forward, we are working on setting Science Based Targets for the company to help clearly define the path to further reduce our fleet's carbon footprint.

On the regulatory front, we are preparing for compliance with the Fuel EU Maritime regulation coming into force on 1 January 2025, and the Mediterranean Sea Emission Control Area for sulphur oxides and particular matter, taking effect from 1 May 2025.

A gap analysis related to the Corporate Sustainability Reporting Directive is under way to identify and address differences between the directive and the company's ESG reporting processes.

In July 2024, Star Bulk's systems both in the office and on the vessels were affected by the Crowd Strike worldwide incident, caused by a bug during an antivirus update. Immediate action by the company restored the systems in the office a few hours later and on the vessels 1-2 days later.

The employment of female cadets on board our vessels continues, along with the deployment of Starlink and the implementation of the CyberOwl technology which monitors vessel systems' performance and security.

Star Bulk was awarded the Sustainable Development in the Maritime Industry Efkrantis Award, recognizing the company's continuous efforts to lead by example in sustainable development in the shipping industry.

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