Star Bulk has reported escalating quarterly losses as it continues to downsize its fleet.
The NASDAQ-listed dry bulk company posted a net loss of USD65 million for 2Q15 versus a net loss of USD3 million in 2Q14. Excluding non-cash items (losses from vessel sales and impairments), Star Bulk had an adjusted net loss of USD22.2 million in the latest quarter versus adjusted net income of USD2.8 million in the same period last year.
Because of its acquisitions from Oceanbulk and Excel, Star Bulk operated an average of 69.7 vessels in 2Q15, up from 17 ships in 2Q14. Average time charter equivalent rates fell by 39% year on year, to USDS8,616/day in the latest period.
According to Star Bulk chief executive Petros Pappas, “Our bottom line has been affected by non-cash losses of USD39.1 million related to the sale of four of our on-the-water vessels and one newbuilding vessel under construction, as well as the cancellation of one of our newbuilding vessels.
“We continue our efforts to preserve a strong liquidity position,” said Pappas. “We have disposed of a total of 12 vessels since December, including 10 vessels built during the 1990s that did not fit the commercial profile of our fleet, one modern Supramax and one newbuild. Finally, we have agreed to delay the delivery of our newbuild vessels for a total of 91 months, corresponding to an average of 4.6 months per vessel.”