SBLK

Overview

Profile

Highlights

News

Chart

Contacts

 

   
 
   
"Net income was $50.2 million for the fourth quarter of 2008 compared to net income of $1.6 million for the fourth quarter of 2007."   
   
   
Approximate Financial Snapshot as of 3/16/09
Shares Outstanding 56.3M
52 Wk Hi/Lo 14.57/

1.19
Market Cap $102M
Recent Price $1.82

 

 

Join the SmallCapReview mailing list
Email:

 

Star Bulk Carriers (SBLK)

 

Website: www.starbulk.com

A Global Shipping Company Providing Worldwide Transportation Solutions In The Dry Bulk Sector.

Overview

Where to start with the mess that is the shipping industry. Shipping rates were at an all time high in June of '08 and now sit at a six year low. Within this mangled industry, a star may be on the horizon.

First the bad news, many in the industry (Star Bulk is no exception) are suspending dividends and stock repurchases. The price to earnings ratio have hit ridiculous lows with SBLK trading at a P/E of 1.22 which is a third of the industry average of 3.66.

On the brighter side, Star Bulk Carriers just reported net income of $50.2 million for the fourth quarter of 2008 compared to net income of $1.6 million for the fourth quarter of 2007. Earnings per share, basic and diluted for the fourth quarter of 2008 were $0.41.

The Company has done some loan restructuring which should keep the balance sheet strong through early 2010. SBLK's fleet has already contracted 93% of its operating days for '09, providing the company with significant cash flow visibility.

Should you decide to follow the shipping industry, you'll want to get acquainted with the Baltic Dry Index (BDI) which has been moving up off its lows. There are several economists who view it as the leading indicator of forthcoming global trade, it also represents the daily average of prices to ship raw materials.  

What separates the BDI from most economic indicators is that the BDI sets rates for future global raw material and infrastructure demand, while most economic indicators report on the past or events that have already occurred. 

We feel Star Bulk Carriers is an undervalued company in an undervalued sector that is expected to see increased demand in the second half of '09. There are many companies in the shipping sector that look attractive at this time and each has its own nuances. In the case of the shipping industry a rising BDI truly does lift all ships. 

Profile

Star Bulk Carriers (SBLK) a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, fertilizers and steel products. 

Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and is headquartered in Athens, Greece. Currently, Star Bulk has an operating fleet of twelve dry bulk carriers. The total fleet consists of four Capesize, and eight Supramax dry bulk vessels with an average age of approximately 9.9 years well below the industry average and a combined cargo carrying capacity of 1.1 million tons.

SBLK Investor Highlights

  • Net income was $50.2 million for the fourth quarter of 2008 compared to net income of $1.6 million for the fourth quarter of 2007.

  • Earnings per share, basic and diluted for the fourth quarter of 2008 were $0.89 based on a weighted average of 56,278,511 shares outstanding, basic and diluted in the fourth quarter of 2008.

  • Net income was $133.7 million for the year ended December 31, 2008 compared to net income of $3.4 million for the year ended December 31, 2007.

  • The Company's fleet contracted operating days coverage is now 93% in 2009 when taking into account time charter and COA contracts, providing significant cash flow visibility.

  • The Star Beta, a Capesize vessel of 174,691 dwt, built in 1993, has been time chartered for a period of 13 to 15 months at a gross daily rate of $32,500.

  • The Company has entered into its first Contract of Affreightment (COA) with Brazil's Companhia Vale do Rio Doce (VALE). The contract calls for transporting approximately 700,000 tonnes of iron ore between Brazil and China in four capesize vessel shipments

  • On January 28 2009, the Company delivered the Star Epsilon, a 52,402 dwt 2001 built Supramax vessel, to her next charterer. As previously announced, the 5-year contract has a gross daily rate of $32,400.

  • On January 27, 2009, the Company delivered the Star Gamma, a 53,098 dwt 2002 built Supramax vessel, to her next charterer. As previously announced, the 3-year contract has a gross daily average rate of $38,000.

  • The Company has entered into a new one-year time charter contract for the Star Delta, a 52,434 dwt 2000 built Supramax vessel, at a gross daily rate of $11,250.

  • The Company has sold contracts in the Freight Forward Agreement ("FFA") market on the Capesize index for Calendar 2009 for a total of 360 calendar days with an average rate of approximately $19,900 per day.

  • Similarly, the Company announced that it has sold FFA contracts on the Capesize index for Calendar 2010 for a total of 60 days at an average rate of approximately $25,225 per day.

Recent News and Press Releases

Star Bulk Carriers Corp. Reports Financial Results for the First Quarter Ended March 31, 2009

Star Bulk Announces Four New Time Charter Agreements and Commences In-House Vessel Management

Akis Tsirigakis, President and Chief Executive Officer of Star Bulk Carriers (NASDAQ: SBLK) Discusses Star Bulk Carriers and the Dry Bulk Market

Star Bulk Carriers Corp. Reports Financial Results for the Fourth Quarter and the Year Ended December 31, 2008

Star Bulk Announces New Charter for Capesize Star Beta and Agrees With Its Lenders on Loan Covenant Waivers

Star Bulk Announces New Time Charter, Signs Its First Contract of Affreightment, Delivers Two Supramaxes to Their New Charterers, and Redeploys One Capesize

Star Bulk Carriers Corp. Announces FFA Transactions, Completion of Private Placement to Insiders and Update on the Star Sigma Employment

For the latest Quote and News on SBLK Click Here.

Three Month Chart


Contacts

Star Bulk Carriers Corp.

7 Fragoklisias Street
2nd Floor Maroussi
Athens, Greece
Phone: 30 210 61 78 400
Fax: 30 210 61 78 378

SEC Filings

SBLK filings with the SEC can be found here. All Fillings are current and the Company is fully reporting.

 

SmallCapReview.com feature stock reports are intended to be stock ideas, not recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company website and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our website. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

Copyright SmallCapReview. All rights reserved. SCR is not a registered broker/dealer or financial advisor, nor do we hold ourselves out to be. All materials presented on our website and individual reports released to the public through this website, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our website or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. SCR may hold positions in securities mentioned herein, and may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. In order to be in full compliance with the Securities Act of 1933, Section 17(b), SCR will disclose in it's disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information. SCR has not been compensated for its efforts in presenting the Star Bulk Carriers profile and holds no position as of the date of this report. We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: http://www.sec.gov and/or the National Association of Securities Dealers (NASD) at: http://www.nasd.com . Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.