Star Bulk Announces Vessel Sale and Repurchase of Common Shares

Rhea-AI Summary

Star Bulk Carriers Corp. (Nasdaq: SBLK) has announced two significant developments:

1. The sale of its oldest vessel, the Capesize m/v Star Triumph (built in 2004), for a gross price of $20.0 million. This sale is expected to generate net proceeds of $13.0 million and result in a gain of approximately $7.7 million in Q3 2024.

2. The repurchase of 791,015 common shares at an average price of $20.58 per share, totaling about $16.3 million. These shares will be withdrawn and cancelled.

Management believes that the vessel sale price implies a per-share value significantly higher than the repurchase price, potentially creating value for shareholders.

Positive

• Sale of oldest vessel (m/v Star Triumph) for $20.0 million gross price
• Expected gain of $7.7 million from vessel sale in Q3 2024
• Repurchase of 791,015 common shares at $20.58 average price
• Management believes vessel sale price implies higher per-share value than repurchase price

Negative

• None.

Insights

Financial Analyst

Star Bulk's strategic moves demonstrate a focus on fleet optimization and shareholder value. The sale of m/v Star Triumph at $20.0 million not only provides $13.0 million in net proceeds but also results in a $7.7 million gain, boosting Q3 2024 financials. This divestment of their oldest vessel aligns with industry trends towards younger, more efficient fleets.

Simultaneously, the repurchase of 791,015 shares at $20.58 per share, totaling $16.3 million, showcases confidence in the company's valuation. The implied value differential between the vessel sale and share repurchase price suggests management's belief in the stock's undervaluation. This dual strategy of asset monetization and share buybacks could potentially enhance earnings per share and overall shareholder returns.

Shipping Industry Expert

Star Bulk's decision to sell its oldest Capesize vessel, the 2004-built Star Triumph, is a prudent move in the current dry bulk market. By divesting older assets, the company can potentially reduce operational costs and improve fleet efficiency. The $20.0 million sale price for a 20-year-old Capesize vessel reflects relatively strong secondhand values in the sector.

The concurrent share repurchase program signals management's confidence in the company's prospects and perceived undervaluation. This strategy of balancing fleet renewal with shareholder returns is increasingly common among well-capitalized shipping firms. It's worth noting that the timing of these actions suggests Star Bulk is positioning itself for potential market improvements while maintaining financial flexibility.

ATHENS, Greece, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the “Company” or “Star Bulk”) (Nasdaq: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, announced today the sale of the Capesize m/v Star Triumph, the oldest vessel of its fleet (2004 built), at a gross price of $20.0 million, with net proceeds (after repayment of associated debt) of approximately $13.0 million. The Company expects to record a gain on sale of the vessel of approximately $7.7 million during the 3^rd quarter of 2024.

Additionally, pursuant to the Company’s previously announced “share repurchase” program, 791,015 common shares were repurchased last week (“the Repurchased Shares”) in open market transactions at an average price of $20.58 per share for a total consideration of approximately $16.3 million. The Repurchased Shares will be withdrawn and cancelled. Management believes that the price at which the mv Star Triumph was sold implies a per-share value substantially in excess of the price at which the Repurchased Shares were acquired by the Company thereby creating value for the Company’s shareholders.

About Star Bulk
Star Bulk is 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, minerals and grain, and minor bulks, which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, New York, Limassol, Singapore, Germany and Denmark. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK”. Upon the delivery to its new owners, Star Bulk will have a fleet of 153 owned vessels, with an aggregate capacity of 15.0 million dwt, consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt.

Contacts
Company: Simos Spyrou, Christos Begleris Co ‐ Chief Financial Officers Star Bulk Carriers Corp. c/o Star Bulk Management Inc. 40 Ag. Konstantinou Av. Maroussi 15124 Athens, Greece Email: info@starbulk.com www.starbulk.com	Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, NY 10169 Tel. (212) 661‐7566 E‐mail: starbulk@capitallink.com www.capitallink.com

FAQ

What vessel did Star Bulk Carriers (SBLK) sell in September 2024?

Star Bulk Carriers (SBLK) sold the Capesize m/v Star Triumph, its oldest vessel built in 2004, for a gross price of $20.0 million.

How much did Star Bulk (SBLK) expect to gain from the vessel sale in Q3 2024?

Star Bulk (SBLK) expected to record a gain of approximately $7.7 million from the sale of m/v Star Triumph during the third quarter of 2024.

How many shares did Star Bulk (SBLK) repurchase in September 2024?

Star Bulk (SBLK) repurchased 791,015 common shares at an average price of $20.58 per share, totaling approximately $16.3 million.

What was the net proceeds from the Star Bulk (SBLK) vessel sale in September 2024?

The net proceeds from the sale of m/v Star Triumph, after repayment of associated debt, were approximately $13.0 million.