Star Bulk Carriers Misses - Analyst Blog from Zacks


This is a response to Dry Bulk Market Discussion (President/CEO of Star Bulk Carriers).

Posted by: Jason
Date: 03.25.09
Sectors: Transportation/Automotive

On March 16, 2009, Star Bulk Carriers Corp. (SBLK) reported 2008 4th quarter results. For the quarter, SBLK posted diluted EPS before non-cash items (time charter amortization, vessel impairment charge, and stock-based compensation costs) and nonrecurring items (gain on freight forward agreements and time charter termination fees) of $12.9 million, or $0.23 per diluted share.

This was below our $0.29 estimate due to lower-than-expected revenues. An average of 12.1 vessels were owned and operated for 1,043 voyage days during the quarter, earning an average adjusted time charter equivalent, or TCE, rate of $41,521 per day, down 9% sequentially from the $45,756 earned in 2008’s 3rd quarter.

Despite this, we are maintaining our 2009 diluted EPS estimate at $0.87 as the company has a significant portion of its fleet under contract—93% of operating days in 2009 and 66% in 2010.

Earlier this year, SBLK suspended its dividend and share repurchase program, in conjunction with the amendment of loan agreements to waive certain loan covenants. SBLK also filed a registration statement for $250 million in securities.

We are continuing our Hold on Star Bulk Carriers Corp. The current Zacks rank is 2, indicating positive share price movement over the near term. In trading Tuesday, SBLK closed down $0.01 from Monday’s closing price of $2.31.

Posted Wed Mar 25, 09:49 am ET
Posted By: Ann Heffron, CFA


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