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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2023 

Commission File Number 001-33869

 

 

STAR BULK CARRIERS CORP.

 

 

 

  

--12-31

 

(Translation of registrant’s name into English)

 

Star Bulk Carriers Corp.

c/o Star Bulk Management Inc.

40 Agiou Konstantinou Street,

15124 Maroussi,

Athens, Greece

(Address of principal executive offices)

 

June 30, 2023 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached as Exhibit 99.1 to this Form 6-K is a Management's Discussion and Analysis of Financial Condition and Results of Operations and the unaudited interim condensed consolidated financial statements of Star Bulk Carriers Corp. (the “Company”) as of and for the six months ended June 30, 2022 and 2023.

Attached as Exhibit 99.2 to this Form 6-K is a copy of the Company's press release (the “Press Release”) announcing its unaudited financial and operating results for the Company's three and six months ended June 30, 2023, which was issued on August 3, 2023.

The information contained in Exhibit 99.1 of this Form 6-K is hereby incorporated by reference into the registrant's Registration Statements on Form F-3 (File Nos. 333-264226, 333-232765, 333-234125 and 333-252808) and Registration Statement on Form S-8 (File No. 333-176922), in each case to the extent not superseded by information subsequently filed or furnished (to the extent we expressly state that we incorporate such furnished information by reference) by the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, in each case as amended.

 i 

 

 

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION

This Form 6-K, and the documents to which the Company refers in this Form 6-K, as well as information included in oral statements or other written statements made or to be made by the Company, contain “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act, with respect to our financial condition, results of operations and business and our expectations or beliefs concerning future events. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “projects,” “likely,” “will,” “would,” “could” and similar expressions or phrases may identify forward-looking statements.

All forward-looking statements involve risks and uncertainties. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control. Actual results may differ materially from expected results.

In addition, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:

general dry bulk shipping market conditions, including fluctuations in charter rates and vessel values;

 

the strength of world economies;

 

the stability of Europe and the Euro;

 

fluctuations in currencies, interest rates and foreign exchange rates, and the impact of the discontinuance of remaining London Interbank Offered Rate tenors for US Dollars, or LIBOR, after June 30, 2023 on any of our debt referencing LIBOR in the interest rate;

 

business disruptions due to natural and other disasters or otherwise, such as the ongoing impacts from the novel coronavirus (“COVID-19”) (and variants that may emerge);

 

the length and severity of epidemics and pandemics, including COVID-19 and its impact on the demand for seaborne transportation in the dry bulk sector;

 

changes in supply and demand in the dry bulk shipping industry, including the market for our vessels and the number of new buildings under construction;

 

the potential for technological innovation in the sector in which we operate and any corresponding reduction in the value of our vessels or the charter income derived therefrom;

 

changes in our expenses, including bunker prices, dry docking, crewing and insurance costs;

 

changes in governmental rules and regulations or actions taken by regulatory authorities;

 

potential liability from pending or future litigation and potential costs due to environmental damage and vessel collisions;

 

the impact of increasing scrutiny and changing expectations from investors, lenders, charterers and other market participants with respect to our Environmental, Social and Governance (“ESG”) practices;

 

our ability to carry out our ESG initiatives and thereby meet our ESG goals and targets including as set forth under Item 4. Information on the Company—B. Business Overview—Our ESG Performance in the Company's annual report on Form 20-F for the fiscal year ended 2022;

 

new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or regional/national imposed by regional authorities such as the European Union or individual countries;

 

potential cyber-attacks which may disrupt our business operations;

 

general domestic and international political conditions or events, including “trade wars” and the ongoing conflict between Russia and Ukraine;

 

the impact on our common shares and reputation if our vessels were to call on ports located in countries that are subject to restrictions imposed by the U.S. or other governments;

 

our ability to successfully compete for, enter into and deliver our vessels under time charters or other employment arrangements for our existing vessels after our current charters expire and our ability to earn income in the spot market;

 

potential physical disruption of shipping routes due to accidents, climate-related reasons (acute and chronic), political events, public health threats, international hostilities and instability, piracy or acts by terrorists;

 

 ii 

 

  

the availability of financing and refinancing;

 

the failure of our contract counterparties to meet their obligations;

 

our ability to meet requirements for additional capital and financing to grow our business;

 

the impact of our indebtedness and the compliance with the covenants included in our debt agreements;

 

vessel breakdowns and instances of off-hire;

 

potential exposure or loss from investment in derivative instruments;

 

potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management;

 

our ability to complete acquisition transactions as and when planned and upon the expected terms;

 

the impact of port or canal congestion or disruptions; and

 

the risk factors and other factors referred to in the Company's reports filed with or furnished to the U.S. Securities and Exchange Commission (“SEC”).

Consequently, all of the forward-looking statements we make in this document are qualified by the information contained or referred to herein, including, but not limited to, (i) the information contained under this heading and (ii) the information disclosed in the Company's annual report on Form 20-F for the fiscal year ended 2022, filed with the SEC on March 7, 2023.

You should carefully consider the cautionary statements contained or referred to in this section in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. Except as required by law, the Company undertakes no obligation to update any of these forward-looking statements, whether as a result of new information, future events, a change in the Company’s views or expectations or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.

 iii 

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 3, 2023

          COMPANY NAME
           
          By: /s/ Simos Spyrou
            Name: Simos Spyrou
            Title: Co-Chief Financial Officer
           
           

 

 iv 

 

 

Exhibit

Number

  Description
     
99.1   Management's Discussion and Analysis of Financial Condition and Results of Operations and our unaudited interim condensed consolidated financial statements of the Company as of and for the six months ended June 30, 2022 and 2023.
99.2   Press Release dated August 3, 2023.

 

 

 

 

 

 

 

 v 

 

Exhibit 99.1

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the financial condition and results of operations of Star Bulk Carriers Corp. (“Star Bulk”) for the six-month periods ended June 30, 2022 and 2023. Unless otherwise specified herein, references to the “Company,” “we,” “us” or “our” shall include Star Bulk and its subsidiaries. You should read the following discussion and analysis together with the unaudited interim condensed consolidated financial statements and related notes included elsewhere herein. For additional information relating to our management’s discussion and analysis of financial conditions and results of operations, please see our Annual Report on Form 20-F for the year ended December 31, 2022, which was filed with the U.S. Securities and Exchange Commission (the “Commission”) on March 7, 2023 (the “2022 Annual Report”). Unless otherwise defined herein, capitalized words and expressions used herein shall have the same meanings ascribed to them in the 2022 Annual Report. This discussion includes forward-looking statements which, although based on assumptions that we consider reasonable, are subject to risks and uncertainties which could cause actual events or conditions to differ materially from those currently anticipated and expressed or implied by such forward-looking statements.

Overview

We are a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Our vessels transport major bulks, which include iron ore, coal and grain, and minor bulks which include bauxite, fertilizers and steel products. We were incorporated in the Marshall Islands on December 13, 2006 and, on December 3, 2007, we commenced operations when we took delivery of our first vessel. We maintain offices in Athens, New York, Limassol, Singapore and Germany. Our common shares trade on the Nasdaq Global Select Market under the symbol “SBLK.”

Our Fleet

During the first quarter of 2023, we agreed with the war risk insurers of the vessel Star Pavlina, that the vessel became a constructive total loss on February 24, 2023, given its prolonged detainment in Ukraine following the commencement of Russia’s military action against Ukraine on February 24, 2022.

During the six-month period ended June 30, 2023, we decided to sell opportunistically certain vessels and renew our fleet taking advantage of the elevated vessel market values.

In particular, on March 24, 2023, we agreed to sell the vessels Star Borealis and Star Polaris which were delivered to their new owner on May 4, 2023 and on July 7, 2023, respectively.

In addition, on May 26, 2023, we agreed to sell the vessels Star Centaurus, Star Columba, Star Aquila, Star Hercules and Star Cepheus. Star Centaurus, Star Columba and Star Aquila were delivered to their new owner in July 2023 and it is expected that the remaining two vessels will be delivered within August 2023.

As of August 2, 2023 and as adjusted for the delivery of Star Hercules and Star Cepheus, as further discussed above, our owned fleet consisted of 120 operating vessels with an aggregate carrying capacity of approximately 13.3 million dwt, consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax and Supramax vessels.

The following tables present summary information relating to our fleet as of August 2, 2023 (as adjusted for the delivery of Star Hercules and Star Cepheus to their new owner as discussed above):

 1 

 

 

Operating Fleet:

           
         
  Wholly Owned Subsidiaries Vessel Name DWT Date Delivered to Star Bulk Year Built
1 Pearl Shiptrade LLC Gargantua (1) 209,529 April 2, 2015 2015
2 Star Ennea LLC Star Gina 2GR 209,475 February 26, 2016 2016
3 Coral Cape Shipping LLC Maharaj (1) 209,472 July 15, 2015 2015
4 Sea Diamond Shipping LLC Goliath (1) 209,537 July 15, 2015 2015
5 Star Castle II LLC Star Leo 207,939 May 14, 2018 2018
6 ABY Eleven LLC Star Laetitia 207,896 August 3, 2018 2017
7 Domus Shipping LLC Star Ariadne 207,812 March 28, 2017 2017
8 Star Breezer LLC Star Virgo 207,810 March 1, 2017 2017
9 Star Seeker LLC Star Libra 207,765 June 6, 2016 2016
10 ABY Nine LLC Star Sienna 207,721 August 3, 2018 2017
11 Clearwater Shipping LLC Star Marisa 207,709 March 11 2016 2016
12 ABY Ten LLC Star Karlie 207,566 August 3, 2018 2016
13 Star Castle I LLC Star Eleni 207,555 January 3, 2018 2018
14 Festive Shipping LLC Star Magnanimus 207,526 March 26, 2018 2018
15 New Era II Shipping LLC Debbie H 206,861 May 28, 2019 2019
16 New Era III Shipping LLC Star Ayesha 206,852 July 15, 2019 2019
17 New Era I Shipping LLC Katie K 206,839 April 16, 2019 2019
18 Cape Ocean Maritime LLC Leviathan 182,511 September 19, 2014 2014
19 Cape Horizon Shipping LLC Peloreus 182,496 July 22, 2014 2014
20 Star Nor I LLC Star Claudine 181,258 July 6, 2018 2011
21 Star Nor II LLC Star Ophelia 180,716 July 6, 2018 2010
22 Sandra Shipco LLC Star Pauline 180,274 December 29, 2014 2008
23 Christine Shipco LLC Star Martha 180,274 October 31, 2014 2010
24 Pacific Cape Shipping LLC Pantagruel 180,181 July 11, 2014 2004
25 Star Nor III LLC Star Lyra 179,147 July 6, 2018 2009
26 Star Regg V LLC Star Borneo 178,978 January 26, 2021 2010
27 Star Regg VI LLC Star Bueno 178,978 January 26, 2021 2010
28 Star Regg IV LLC Star Marilena 178,978 January 26, 2021 2010
29 Star Regg I LLC Star Marianne 178,906 January 14, 2019 2010
30 Star Regg II LLC Star Janni 178,978 January 7, 2019 2010
31 Star Trident V LLC Star Angie 177,931 October 29, 2014 2007
32 Sky Cape Shipping LLC Big Fish 177,662 July 11, 2014 2004
33 Global Cape Shipping LLC Kymopolia 176,990 July 11, 2014 2006
34 Star Trident XXV LLC Star Triumph 176,343 December 8, 2017 2004
35 ABY Fourteen LLC Star Scarlett 175,649 August 3, 2018 2014
36 ABY Fifteen LLC Star Audrey 175,125 August 3, 2018 2011
37 Sea Cape Shipping LLC Big Bang 174,109 July 11, 2014 2007
38 ABY I LLC Star Paola 115,259 August 3, 2018 2011

 

 2 

 

 

         
  Wholly Owned Subsidiaries Vessel Name DWT Date Delivered to Star Bulk Year Built
39 ABM One LLC Star Eva 106,659 August 3, 2018 2012
40 Nautical Shipping LLC Amami 98,681 July 11, 2014 2011
41 Majestic Shipping LLC Madredeus 98,681 July 11, 2014 2011
42 Star Sirius LLC Star Sirius 98,681 March 7, 2014 2011
43 Star Vega LLC Star Vega 98,681 February 13, 2014 2011
44 ABY II LLC Star Aphrodite 92,006 August 3, 2018 2011
45 Augustea Bulk Carrier LLC Star Piera 91,951 August 3, 2018 2010
46 Augustea Bulk Carrier LLC Star Despoina 91,945 August 3, 2018 2010
47 Star Trident I LLC Star Kamila 82,769 September 3, 2014 2005
48 Star Nor IV LLC Star Electra 83,494 July 6, 2018 2011
49 Star Alta I LLC Star Angelina 82,981 December 5, 2014 2006
50 Star Alta II LLC Star Gwyneth 82,790 December 5, 2014 2006
51 Star Nor VI LLC Star Luna 82,687 July 6, 2018 2008
52 Star Nor V LLC Star Bianca 82,672 July 6, 2018 2008
53 Grain Shipping LLC Pendulum 82,619 July 11, 2014 2006
54 Star Trident XIX LLC Star Maria 82,598 November 5, 2014 2007
55 Star Trident XII LLC Star Markella 82,594 September 29, 2014 2007
56 ABY Seven LLC Star Jeannette 82,566 August 3, 2018 2014
57 Star Trident IX LLC Star Danai 82,574 October 21, 2014 2006
58 Star Sun I LLC Star Elizabeth 82,403 May 25, 2021 2021
59 Star Trident XI LLC Star Georgia 82,298 October 14, 2014 2006
60 Star Trident VIII LLC Star Sophia 82,269 October 31, 2014 2007
61 Star Trident XVI LLC Star Mariella 82,266 September 19, 2014 2006
62 Star Trident XIV LLC Star Moira 82,257 November 19, 2014 2006
63 Star Trident X LLC Star Renee 82,221 December 18, 2014 2006
64 Star Trident XIII LLC Star Laura 82,209 December 8, 2014 2006
65 Star Trident XV LLC Star Jennifer 82,209 April 15, 2015 2006
66 Star Nor VIII LLC Star Mona 82,188 July 6, 2018 2012
67 Star Trident II LLC Star Nasia 82,220 August 29, 2014 2006
68 Star Nor VII LLC Star Astrid 82,158 July 6, 2018 2012
69 Star Trident XVII LLC Star Helena 82,187 December 29, 2014 2006
70 Star Trident XVIII LLC Star Nina 82,224 January 5, 2015 2006
71 Waterfront Two LLC Star Alessia 81,944 August 3, 2018 2017
72 Star Nor IX LLC Star Calypso 81,918 July 6, 2018 2014
73 Star Elpis LLC Star Suzanna 81,711 May 15, 2017 2013
74 Star Gaia LLC Star Charis 81,711 March 22, 2017 2013
75 Mineral Shipping LLC Mercurial Virgo 81,545 July 11, 2014 2013
76 Star Nor X LLC Stardust 81,502 July 6, 2018 2011
77 Star Nor XI LLC Star Sky 81,466 July 6, 2018 2010
78 Star Zeus VI LLC Star Lambada 81,272 March 16, 2021 2016
79 Star Zeus I LLC Star Capoeira 81,253 March 16, 2021 2015
80 Star Zeus II LLC Star Carioca 81,262 March 16, 2021 2015
81 Star Zeus VII LLC Star Macarena 81,198 March 6, 2021 2016
82 ABY III LLC Star Lydia 81,187 August 3, 2018 2013
83 ABY IV LLC Star Nicole 81,120 August 3, 2018 2013
84 ABY Three LLC Star Virginia 81,061 August 3, 2018 2015

 

 3 

 

 

         
  Wholly Owned Subsidiaries Vessel Name DWT Date Delivered to Star Bulk Year Built
85 Star Nor XII LLC Star Genesis 80,705 July 6, 2018 2010
86 Star Nor XIII LLC Star Flame 80,448 July 6, 2018 2011
87 Star Trident III LLC Star Iris 76,466 September 8, 2014 2004
88 Star Trident XX LLC Star Emily 76,417 September 16, 2014 2004
89 Orion Maritime LLC Idee Fixe 63,458 March 25, 2015 2015
90 Primavera Shipping LLC Roberta 63,426 March 31, 2015 2015
91 Success Maritime LLC Laura 63,399 April 7, 2015 2015
92 Star Zeus III LLC Star Athena 63,371 May 19, 2021 2015
93 Ultra Shipping LLC Kaley 63,283 June 26, 2015 2015
94 Blooming Navigation LLC Kennadi (1) 63,262 January 8, 2016 2016
95 Jasmine Shipping LLC Mackenzie (1) 63,226 March 2, 2016 2016
96 Star Lida I Shipping LLC Star Apus 63,123 July 16, 2019 2014
97 Star Zeus V LLC Star Bovarius 61,602 March 16, 2021 2015
98 Star Zeus IV LLC Star Subaru 61,571 March 16, 2021 2015
99 Star Nor XV LLC Star Wave 61,491 July 6, 2018 2017
100 Star Challenger I LLC Star Challenger (1) 61,462 December 12, 2013 2012
101 Star Challenger II LLC Star Fighter (1) 61,455 December 30, 2013 2013
102 Aurelia Shipping LLC Honey Badger (1) 61,320 February 27, 2015 2015
103 Star Axe II LLC Star Lutas (1) 61,347 January 6, 2016 2016
104 Rainbow Maritime LLC Wolverine (1) 61,292 February 27, 2015 2015
105 Star Axe I LLC Star Antares (1) 61,258 October 9, 2015 2015
106 ABY Five LLC Star Monica 60,935 August 3, 2018 2015
107 Star Asia I LLC Star Aquarius 60,916 July 22, 2015 2015
108 Star Asia II LLC Star Pisces 60,916 August 7, 2015 2015
109 Star Nor XIV LLC Star Glory 58,680 July 6, 2018 2012
110 Star Lida XI Shipping LLC Star Pyxis 56,615 August 19, 2019 2013
111 Star Lida VIII Shipping LLC Star Hydrus 56,604 August 8, 2019 2013
112 Star Lida IX Shipping LLC Star Cleo 56,582 July 15, 2019 2013
113 Star Trident VII LLC Diva 56,582 July 24, 2017 2011
114 Star Lida X Shipping LLC Star Pegasus 56,540 July 15, 2019 2013
115 Star Lida V Shipping LLC Star Dorado 56,507 July 16, 2019 2013
116 Star Regg III LLC Star Bright 55,569 October 10, 2018 2010
117 Glory Supra Shipping LLC Strange Attractor 55,742 July 11, 2014 2006
118 Star Omicron LLC Star Omicron 53,489 April 17, 2008 2005
119 Star Zeta LLC Star Zeta 52,994 January 2, 2008 2003
120 Star Theta LLC Star Theta 52,425 December 6, 2007 2003
    Total dwt 13,347,973    

 

(1)Subject to a sale and leaseback financing transaction as further described in Note 7 to our consolidated financial statements included in the 2022 Annual Report.
 4 

 

 

In addition, we have entered into long-term charter-in arrangements with respect to four Kamsarmax newbuildings and two Ultramax newbuildings which are expected to be delivered during 2024 with an approximate duration of seven years per vessel plus optional years. Furthermore, in November 2021 we took delivery of the Capesize vessel Star Shibumi, under a long-term charter-in contract for a period up to November 2028. Please see below a summary table of the respective contracts:

# Name DWT Built Yard Country Delivery / Estimated Delivery (1) Minimum Period
1 Star Shibumi 180,000 2021 JMU Japan November 2021 November 2028
2 NB Kamsarmax # 1 82,000 2024 Tsuneishi Japan Q1 - 2024 7 years
3 NB Kamsarmax # 2 82,000 2024 Tsuneishi Japan Q4 - 2024 7 years
4 NB Kamsarmax # 3 82,000 2024 JMU Japan Q2 - 2024 7 years
5 NB Kamsarmax # 4 82,000 2024 JMU Japan Q3 - 2024 7 years
6 NB Ultramax #1 66,000 2024 Tsuneishi, Cebu Philippines Q1 - 2024 7 years
7 NB Ultramax #2 66,000 2024 Tsuneishi, Cebu Philippines Q4 - 2024 7 years
    640,000          

 

               
(1) We have also entered into a charter-in agreement for the vessel Tai Kudos which is expected to be redelivered to its owners in October 2023.

 

Liquidity and Capital Resources

Our principal sources of funds have been cash flow from operations, equity offerings, borrowings under secured credit facilities, debt securities or bareboat lease financings and proceeds from vessel sales. Our principal uses of funds have been capital expenditures to establish and grow our fleet, maintain the quality of our dry bulk carriers, comply with international shipping standards, environmental laws and regulations, fund working capital requirements, make principal and interest payments on outstanding indebtedness and make dividend payments when approved by the Board of Directors.

Our short-term liquidity requirements include paying operating costs, funding working capital requirements and the short-term equity portion of the cost of vessel acquisitions and vessel upgrades, interest and principal payments on outstanding indebtedness and maintaining cash reserves to strengthen our position against adverse fluctuations in operating cash flows. Our primary source of short-term liquidity is cash generated from operating activities, available cash balances and portions from new debt and refinancings as well as equity financings.

Our medium- and long-term liquidity requirements are funding the equity portion of our newbuilding vessel installments and secondhand vessel acquisitions, if any, funding required payments under our vessel financing and other financing agreements and paying cash dividends when declared. Sources of funding for our medium- and long-term liquidity requirements include cash flows from operations, new debt and refinancings or bareboat lease financings, sale and lease back arrangements, equity issuances and vessel sales. Please also refer to Note 12 to our unaudited interim condensed consolidated financial statements, included elsewhere herein, for further discussion on our commitments as of June 30, 2023.

As of August 2, 2023, we had total cash of $456.5 million and outstanding borrowings (including bareboat lease financing) of $1,181.7 million, as adjusted for the proceeds from vessel sales and repayment of loans/leases, as further described in Notes 8 and 15 to our unaudited interim condensed consolidated financial statements as of June 30, 2023, included herein. In addition, following a number of interest rates swaps that we have entered into, we have converted a total of $349.3 million of such debt from floating to an average fixed rate of 42 bps with average maturity of 1.3 year.

Our debt agreements contain financial covenants and undertakings requiring us to maintain various ratios. A summary of these terms is included in Note 8 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

 5 

 

We believe that our current cash balance and our operating cash flows to be generated over the short-term period will be sufficient to meet our liquidity needs for the foreseeable future (and at least through the end of the third quarter of 2024), including funding the operations of our fleet, capital expenditure requirements and any other present financial requirements, including the cost for the installation of ballast water treatment systems (“BWTS”) and Energy Saving Devices (“ESD”). In addition, we may sell and issue shares under our two effective At-the-Market offering programs of up to $150.0 million at any time and from time to time. As of August 2, 2023, cumulative gross proceeds under our At-the-Market offering programs were $20.2 million. We may seek additional indebtedness to finance future vessel acquisitions in order to maintain our cash position or to refinance our existing debt on more favorable terms. Our practice has been to fund the cash portion of the acquisition of dry bulk carriers using a combination of funds from operations and bank debt or lease financing secured by mortgages or title of ownership on our dry bulk carriers held by the relevant lenders, respectively. We may also use the proceeds from potential equity or debt offerings to finance future vessel acquisitions. Our business is capital-intensive and its future success will depend on our ability to maintain a high-quality fleet through the acquisition of newer dry bulk carriers and the selective sale of older dry bulk carriers. These acquisitions will be principally subject to management’s expectation of future market conditions as well as our ability to acquire dry bulk carriers on favorable terms. However our ability to obtain bank or lease financing, to refinance our existing debt or to access the capital markets for offerings in the future, may be limited by our financial condition at the time of any such financing or offering, including the market value of our fleet, as well as by adverse market conditions resulting from, among other things, general economic conditions, weakness in the financial and equity markets and contingencies and uncertainties that are beyond our control. Our liquidity is also impacted by our dividend policy, as discussed below.

The 2019 Novel Coronavirus (“COVID-19”) pandemic resulted in a significant reduction in global economic activity and extreme volatility in the global financial market. During the second half of 2022, freight rates declined from highs seen earlier in the year as China’s COVID-related lockdown measures intensified. The end of the zero COVID-19 policy by the Chinese authorities during the first quarter of 2023 fueled markets with optimism that resulted in the rebound of freight levels. During the second quarter of 2023, freight rates have receded, as despite the uplift of the exporting activity, the relaxation of COVID-19 related inefficiencies resulted in the increase of effective ship supply. Concurrently, Chinese macro data are implying a stalling economy, while the outlook of the western economies is getting worse as a result of the tightening cycle that central banks are implementing in order to fight inflation. There continues to be a high level of uncertainty relating to how the COVID-19 pandemic will evolve, the evolution and emergence of existing and future variants, the availability of vaccines and their global deployment, the development of effective treatments, the imposition of effective public safety and other protective measures and the public's and government's responses to such measures. As a result of the COVID-19 pandemic restrictions imposed since 2020, additional crew expenses have been incurred. An increase in the severity or duration or a resurgence of the COVID-19 pandemic and any significant disruption of wide-scale vaccine distribution could have a material adverse effect on our business, results of operations, cash flows, financial condition, the carrying value of our assets, the fair values of our vessels, and our ability to pay dividends.

Dividend Policy

Our dividend policy is described in Item 8. Financial Information-A. Consolidated statements and other financial information—Dividend Policy of our 2022 Annual Report.

On August 3, 2023, pursuant to our dividend policy, our Board of Directors declared a quarterly cash dividend of $0.40 per share, payable on or about September 7, 2023 to all shareholders of record as of August 22, 2023. The ex-dividend date is expected to be August 21, 2023.

Since Star Bulk is a holding company with no material assets other than the shares of its subsidiaries through which it conducts its operations, Star Bulk’s ability to pay dividends in the future will depend on its subsidiaries’ ability to distribute funds to it. Any future dividends declared will be at the discretion and remain subject to approval of our Board of Directors each quarter after its review of our financial condition and other factors, including but not limited to our earnings, the prevailing charter market conditions, capital requirements, limitations under our debt agreements and applicable provisions of Marshall Islands law, which generally prohibits the payment of dividends other than from operating surplus or while a company is insolvent or would be rendered insolvent upon the payment of such dividend. Star Bulk’s dividend policy and declaration and payment of dividends may be changed at any time and are subject to legally available funds and our Board of Directors’ determination that each declaration and payment is at the time in the best interests of Star Bulk and its shareholders after its review of our financial performance. There can be no assurance that our Board of Directors will declare or pay any dividend in the future.

 6 

 

 

Other Recent Developments

Please refer to Note 15 to our unaudited interim condensed consolidated financial statements, included elsewhere herein, for developments that took place after June 30, 2023.

Operating Results

Factors Affecting Our Results of Operations

We deploy our vessels on a mix of short to medium time charters or voyage charters, contracts of affreightment or in dry bulk carrier pools, according to our assessment of market conditions. We adjust the mix of these charters to take advantage of the relatively stable cash flow and high utilization rates associated with medium to long-term time charters, or to profit from attractive spot charter rates during periods of strong charter market conditions, or to maintain employment flexibility that the spot market offers during periods of weak charter market conditions. The following table reflects certain operating data of our fleet, including our ownership days and TCE rates, which we believe are important measures for analyzing trends in our results of operations, for the periods indicated: 

  Six-month period ended June 30,
(TCE rates expressed in U.S. Dollars) 2022   2023
Average number of vessels (1)   128.0     127.0
Number of vessels (2)   128     126
Average age of operational fleet (in years) (3)   10.4     11.4
Ownership days (4)   23,169     22,982
Available days (5)   22,211     22,082
Charter-in days (6)   506     429
Time Charter Equivalent Rate  (TCE rate) (7) $ 28,924   $ 15,020

____________________

(1)Average number of vessels is the number of vessels that constituted our owned fleet for the relevant period, as measured by the sum of the number of days each operating vessel was a part of our owned fleet during the period divided by the number of calendar days in that period.
(2)As of the last day of the periods reported.
(3)Average age of our operational fleet is calculated as of the end of each period.
(4)Ownership days are the total calendar days each vessel in the fleet was owned by us for the relevant period, including vessels subject to sale and leaseback transactions and finance leases.
(5)Available days for the fleet are the Ownership days after subtracting off-hire days for major repairs, dry docking or special or intermediate surveys, change of management and for vessels’ improvements and upgrades. The available days for each period presented were also decreased by off-hire days relating to disruptions in connection with crew changes as a result of COVID-19. Available Days as presented above may not necessarily be comparable to Available Days of other companies due to differences in methods of calculation.
(6)Charter-in days are the total days that we charter-in vessels not owned by us.
(7)Time charter equivalent rate represents the weighted average daily TCE rates of our operating fleet (including owned fleet and fleet under charter-in arrangements). TCE rate is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE rate is determined by dividing (a) TCE Revenues, which consists of: voyage revenues (net of voyage expenses, charter-in hire expense, amortization of fair value of above/below market acquired time charter agreements, if any, as well as adjusted for the impact of realized gain/(loss) on forward freight agreements (“FFAs”) and bunker swaps) by (b) Available days for the relevant time period. Available days do not include the Charter-in days as per the relevant definitions provided above. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. In the calculation of TCE Revenues, we also include the realized gain/(loss) on FFAs and bunker swaps as we believe that this method better reflects the chartering result of our fleet and is more comparable to the method used by our peers. TCE Revenues and TCE rate, which are non-GAAP measures, provide additional meaningful information in conjunction with voyage revenues, the most directly comparable GAAP measure, because they assist our management in making decisions regarding the deployment and use of our vessels and because we believe that they provide useful information to investors regarding our financial performance. TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., voyage charters, time charters, bareboat charters and pool arrangements) under which its vessels may be employed between the periods. TCE Revenues and TCE rate, as presented above, may not necessarily be comparable to those of other companies due to differences in methods of calculation.
 7 

 

 

The following table reflects the calculation of our TCE rates as discussed in footnote (7) above. The table presents reconciliation of TCE Revenues to voyage revenues as reflected in the unaudited interim condensed consolidated income statements.

  Six-month period ended June 30,
  2022   2023
(In thousands of U.S. Dollars, except as otherwise stated)          
Voyage revenues $ 778,217   $ 462,721
Less:          
Voyage expenses   (119,785)     (128,635)
Charter-in hire expenses   (12,950)     (9,695)
Realized gain/(loss) on FFAs/bunker swaps   (3,062)     7,272
Time charter equivalent revenues (“TCE Revenues”) $ 642,420   $ 331,663
Available days   22,211     22,082
Daily time charter equivalent rate (“TCE rate”) $ 28,924   $ 15,020

 

Voyage Revenues

Voyage revenues are driven primarily by the number of vessels in our operating fleet, the duration of our charters, the number of charter-in days, the amount of daily charter hire or freight rates that our vessels earn under time and voyage charters, respectively, which, in turn, are affected by a number of factors, including our decisions relating to vessel acquisitions and disposals, the number of vessels chartered-in, the amount of time that we spend positioning our vessels, the amount of time that our vessels spend in dry dock undergoing repairs, maintenance and upgrade work, the age, condition and specifications of our vessels, levels of supply and demand in the seaborne transportation market.

Vessels operating on time charters for a certain period of time provide more predictable cash flows over that period of time, but can yield lower profit margins than vessels operating in the spot charter market during periods characterized by favorable market conditions. Vessels operating in the spot charter market generate revenues that are less predictable, but may enable us to capture increased profit margins during periods of improvements in charter rates, although we would be exposed to the risk of declining vessel rates, which may have a materially adverse impact on our financial performance. If we employ vessels on period time charters, future spot market rates may be higher or lower than the rates at which we have employed our vessels on period time charters.

Voyage Expenses

Voyage expenses may include port and canal charges, agency fees, fuel (bunker) expenses and brokerage commissions payable to related and third parties. Voyage expenses are incurred for our owned and chartered-in vessels during voyage charters or when the vessel is unemployed. Bunker expenses, port and canal charges primarily increase in periods during which vessels are employed on voyage charters because these expenses are paid by the owners. Our voyage expenses primarily consist of bunkers cost, port expenses and commissions paid in connection with the chartering of our vessels.

Charter-in Hire Expenses

Charter-in hire expenses represent hire expenses for chartering-in third and related party vessels, either under time charters or voyage charters.

Vessel Operating Expenses

Vessel operating expenses include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes, regulatory fees, vessel scrubbers and BWTS maintenance expenses, lubricants and other miscellaneous expenses. Other factors beyond our control, some of which may affect the shipping industry in general, including for instance, developments relating to market prices for crew wages, lubricants and insurance, may also cause these expenses to increase.

 8 

 

 

Dry Docking Expenses

Dry docking expenses relate to regularly scheduled intermediate survey or special survey dry docking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Dry docking expenses can vary according to the age of the vessel and its condition, the location where the dry docking takes place, shipyard availability and the number of days the vessel is under dry dock. We utilize the direct expense method, under which we expense all dry docking costs as incurred.

Depreciation

We depreciate our vessels on a straight-line basis over their estimated useful lives, which is determined to be 25 years from the date of their initial delivery from the shipyard. Depreciation is calculated based on a vessel’s cost less the estimated residual value. Effective January 1, 2023, following management’s reassessment of the residual value of our vessels, we increased the estimated scrap rate per lightweight ton from $300 to $400. The current value of $400 was based on the historical average demolition prices prevailing in the market in the last 20 years. The change in this accounting estimate, which pursuant to ASC 250 “Accounting Changes and Error Corrections” was applied prospectively and did not require retrospective application, decreased the depreciation expense and increased the net income for the six-month period ended June 30, 2023 by $8.0 million or $0.08 per basic and diluted share.

 

General and Administrative Expenses

We incur general and administrative expenses, including our onshore personnel related expenses, directors’ and executives’ compensation, share based compensation, legal, consulting, audit and accounting expenses.

Management Fees

Management fees include fees paid to third parties as well as related parties providing certain procurement services to our fleet.

(Gain) / Loss on Forward Freight Agreements and Bunker Swaps, net

When deemed appropriate from a risk management perspective, we take positions in freight derivatives, including freight forward agreements (the “FFAs”) and freight options, with an objective to utilize those instruments as economic hedges to reduce the risk on specific vessels trading in the spot market and to take advantage of short term fluctuations in the market prices. Upon the settlement, if the contracted charter rate is less than the average of the rates, as reported by an identified index, for the specified route and time period, the seller of the FFA is required to pay the buyer the settlement sum. The settlement amount is an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days in the specified period covered by the FFA. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Our FFAs are settled mainly through reputable exchanges such as European Energy Exchange (“EEX”) or Singapore Exchange (“SGX”) so as to limit our exposure in over-the-counter transactions. Customary requirements for trading in FFAs include the maintenance of initial and variation margins based on expected volatility, open position and mark to market of the contracts. The fair value of the FFAs or freight options is treated as asset or liability until they are settled. Any such settlements by us or settlements to us under FFAs or freight options, if any, are recorded under (Gain)/ Loss on forward freight agreements and bunker swaps, net.

Also, when deemed appropriate from a risk management perspective, we enter into bunker swap contracts to manage our exposure to fluctuations of bunker prices associated with the consumption of bunkers by our vessels. Bunker swaps are agreements between two parties to exchange cash flows at a fixed price on bunkers, where volume, time period and price are agreed in advance. Our bunker swaps are settled mainly through reputable exchanges such as Intercontinental Exchange (“ICE”) so as to limit our counterparty exposure in over the counter transactions. Bunker price differentials paid or received under the swap agreements are recognized under (Gain)/Loss on forward freight agreements and bunker swaps, net.

The fair value of freight derivatives and bunker swaps is determined through Level 1 inputs of the fair value hierarchy (quoted prices from the applicable exchanges such as EEX, SGX or ICE). Our FFAs and bunker swaps do not qualify for hedge accounting and therefore unrealized gains or losses are recognized under (Gain)/Loss on forward freight agreements and bunker swaps, net.

 9 

 

Impairment loss

When indicators of impairment are present for the Company’s vessels and the undiscounted cash flows estimated to be generated by those vessels are less than their carrying value, the carrying value is reduced to its estimated fair value and the difference is recorded under “Impairment loss” in the consolidated statements of operations.

Other operational gain/(loss)

Other operational gain/(loss) includes gain/loss from all other operating activities which are not related to the principal activities of the Company, such as gain/loss from insurance claims.

Loss on Write-Down of Inventory

Loss on write-down of inventory results from the valuation of the bunkers remaining onboard our vessels following the decrease of bunkers’ net realizable value compared to their historical cost as of each period end.

Interest and Finance Costs

We incur interest expense and financing costs in connection with our outstanding indebtedness under our existing loan facilities (including sale and leaseback financing transactions). We also incur financing costs in connection with establishing those facilities, which are presented as a direct deduction from the carrying amount of the relevant debt liability and amortize them to interest and financing costs over the term of the underlying obligation using the effective interest method.

Interest Income

We earn interest income on our cash deposits with our lenders and other financial institutions.

Gain / (Loss) on Interest Rate Swaps, net

We enter into interest rate swap transactions to manage interest costs and risk associated with changing interest rates with respect to our variable interest loans and credit facilities. Interest rate swaps are recorded in the balance sheet as either assets or liabilities, measured at their fair value (Level 2), with changes in such fair value recognized in earnings under Gain/(Loss) on interest rate swaps, net, unless specific hedge accounting criteria are met. When interest rate swaps are designated and qualify as cash flow hedges, the effective portion of the unrealized gains/losses from those swaps is recorded in Other Comprehensive Income / (Loss) while any ineffective portion is recorded as Gain/(loss) on interest rate swaps, net.

 10 

 

Results of Operations

The six-month period ended June 30, 2023 compared to the six-month period ended June 30, 2022

Voyage revenues net of Voyage expenses: Voyage revenues for the six months ended June 30, 2023 decreased to $462.7 million from $778.2 million in the corresponding period in 2022. Time charter equivalent revenues (“TCE Revenues”) (as defined above) were $331.7 million compared to $642.4 million for the corresponding period in 2022. As a result, the TCE rate for the first half of 2023 was $15,020 compared to $28,924 for the corresponding period in 2022, which is indicative of the weaker market conditions prevailing during the recent period. Please refer to the table above for the calculation of the TCE Revenues and TCE and their reconciliation with Voyage Revenues, which is the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Charter-in hire expenses: Charter-in hire expenses for the six months ended June 30, 2023 and 2022 were $9.7 million and $13.0 million, respectively. This decrease is mainly attributable to the decrease in charter-in days to 429 in the six months ended June 30, 2023 from 506 in the corresponding period in 2022 as well as lower charter-in rates prevailing in the market following the weaker market conditions discussed above.

Vessel operating expenses: For the six months ended June 30, 2023 and 2022, vessel operating expenses were $112.3 million and $115.8 million, respectively. The decrease is mainly due to the decrease in the average number of vessels in our fleet to 127.0 in the six months ended June 30, 2023 from 128.0 for the respective period of 2022. Vessel operating expenses for the first half of 2023 included additional i) crew expenses related to the increased number and cost of crew changes performed during the period as a result of COVID-19 related restrictions, estimated to be $2.1 million and ii) $1.4 million pre-delivery expenses, due to change of management of certain vessels from third party to in-house. For the first half of 2022, the additional COVID-19 related costs and pre-delivery expenses were estimated to be $5.6 million and $1.1 million, respectively.

Dry docking expenses: Dry docking expenses for the six months ended June 30, 2023 and 2022 were $18.9 million and $19.2 million, respectively. During the first half of 2023, 16 vessels completed their periodic dry-docking surveys while during the corresponding period in 2022, 15 vessels completed their periodic dry docking surveys.

DepreciationDepreciation expense decreased to $70.1 million for the six-month period ended June 30, 2023 compared to $77.5 million for the corresponding period in 2022. The decrease is primarily driven by the change in the estimated scrap rate per light weight tonnage from $300 to $400 effective January 1, 2023, which resulted in lower depreciation expense by $8.0 million together with the decrease in the average number of vessels in our fleet, discussed above.

Impairment loss: During the six months ended June 30, 2023, an impairment loss of $7.7 million was incurred, resulting from the agreement to sell the vessels Star Borealis and Star Polaris described above as part of our fleet update under “Our Fleet”.

Other operational gain: Other operational gain for the six months ended June 30, 2023 of $33.7 million includes: a) gain from insurance proceeds relating to Star Pavlina’s total loss discussed in our fleet update above of $28.2 million, b) daily detention compensation for Star Pavlina pursuant to its war risk insurance policy of $2.7 million in aggregate and c) other gains from insurance claims relating to other vessels of $2.8 million in aggregate. Other operational gain for the six months ended June 30, 2022 of $2.1 million included a) daily detention compensation for two vessels blocked in Ukraine pursuant to their war risk insurance policy of $1.7 million and b) other gains from insurance claims relating to other vessels of $0.4 million.

Management fees: Management fees decreased to $8.5 million for the six-month period ended June 30, 2023 compared to $9.8 million for the corresponding period in 2022 due to the change of management of certain vessels, from third party to in-house.

General and administrative expensesGeneral and administrative expenses for the six-month periods ended June 30, 2023 and 2022 were $22.7 million and $25.9 million, respectively. The decrease is mainly attributable to the decrease in stock based compensation expense to $6.4 million for the first half of 2023 compared to $11.5 million for the corresponding period in 2022 counterbalanced by the effect of the increase in the Euro/USD exchange rate.

 11 

 

(Gain)/Loss on forward freight agreements and bunker swaps, net: For the six-month period ended June 30, 2023, we incurred a net gain on FFAs and bunker swaps of $4.2 million, consisting of an unrealized loss of $3.1 million and a realized gain of $7.3 million. For the six-month period ended June 30, 2022, we incurred a net loss on FFAs and bunker swaps of $3.9 million, consisting of an unrealized loss of $0.8 million and a realized loss of $3.1 million.

Loss on write-down of inventory: Our results for the six months ended June 30, 2023 include a loss on write-down of inventories of $4.7 million in connection with the valuation of the bunkers remaining on board our vessels, as a result of the bunkers’ lower net realizable value compared to their historical cost.

Interest and finance costs: Interest and finance costs for the six-month periods ended June 30, 2023 and 2022 were $31.7 million and $24.3 million, respectively. The driving factor for this increase is the significant increase in variable interest rates, which was partially offset by the positive effect from our interest rate swaps and the decrease in our weighted average outstanding indebtedness.

Interest income and other income/(loss): Interest income and other income/ (loss) for the six-month period ended June 30, 2023 amounted to $6.6 million, compared to interest income and other income/ (loss), of $0.1 million in the six-month period ended June 30, 2022. The increase of interest income is mainly due to higher interest rates earned from our fixed deposits during the first half of 2023 and foreign exchange gains incurred in the same period compared to the foreign exchange losses recognized in the first half of 2022.

Cash Flows

Net cash provided by operating activities for the six months ended June 30, 2023 and 2022 was $180.1 million and $469.1 million, respectively. This decrease was primarily driven by the lower charter rates due to the weaker market conditions prevailing during the recent period compared to the corresponding period in 2022, and the increase in our interest payments for the reasons outlined above under “Interest and finance costs”.

Net cash provided by investing activities for the six months ended June 30, 2023 was $79.2 million and consisted of $87.4 million of insurance proceeds received in connection with Star Pavlina’s constructive total loss and vessel sale proceeds received, partially offset by payments of $8.8 million, made for the acquisition of other fixed assets and vessel upgrades. Net cash used in investing activities for the six months ended June 30, 2022 was $45.9 million and consisted mainly of cash placed in treasury bills of $35.2 million and $12.4 million paid in connection with the acquisition of other fixed assets and vessel upgrades.

Net cash used in financing activities for the six months ended June 30, 2023 and 2022 was $244.2 million and $546.1 million, respectively. The decrease was primarily driven by lower dividend payments of $98.2 million in 2023 compared to $375.3 million in the corresponding period in 2022 as well as lower net debt outflows of $132.0 million in the six months ended June 30, 2023 compared to $167.4 million in the same period of 2022.

Significant Accounting Policies and Critical Accounting Estimates

For a description of our critical accounting estimates and all of our significant accounting policies, see Note 2 to our audited financial statements and “Item 5 - Operating and Financial Review and Prospects,” included in our 2022 Annual Report. There have been no material changes from the “Critical Accounting Estimates” previously disclosed in our 2022 Annual Report, except as discussed above under “Depreciation”.

 12 

 

 

STAR BULK CARRIERS CORP.
INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

 

Unaudited Consolidated Balance Sheets as of December 31, 2022 and June 30, 2023 F-2
   
Unaudited Interim Condensed Consolidated Income Statements for the six-month periods ended June 30, 2022 and 2023 F-3
   
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income/(Loss) for the six-month periods ended June 30, 2022 and 2023 F-4
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity for the six-month periods ended June 30, 2022 and 2023 F-5
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2022 and 2023 F-6
 Notes to Unaudited Interim Condensed Consolidated Financial Statements

 

F-7

 

 

 

  F-1 
Table of Contents

 

STAR BULK CARRIERS CORP.
Unaudited Consolidated Balance Sheets
As of December 31, 2022 and June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated) 

  

           
     December 31, 2022     June 30, 2023
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents $                 269,754    $                   285,248
Restricted cash, current (Notes 8 and 13)                     14,569                        14,183
Trade accounts receivable, net                     84,034                        59,728
Inventories (Note 4)                     67,162                        65,019
Due from managers                            84                               53
Due from related parties (Note 3)                          324                             285
Prepaid expenses and other receivables                     25,667                        21,766
Derivatives, current asset portion (Note 13)                     25,585                        12,897
Other current assets (Note 14)                     14,913                        27,967
Total Current Assets                   502,092                      487,146
           
FIXED ASSETS          
Vessels and other fixed assets, net (Note 5)                2,881,551                   2,757,491
Total Fixed Assets                2,881,551                   2,757,491
           
OTHER NON-CURRENT ASSETS          
Long term investment (Note 3)                       1,676                          1,709
Restricted cash, non-current (Notes 8 and 13)                       2,021                          2,021
Operating leases, right-of-use assets (Note 6)                     37,618                        32,153
Derivatives, non-current asset portion (Note 13)                       8,666                          5,322
TOTAL ASSETS $              3,433,624    $                3,285,842
            
LIABILITIES & SHAREHOLDERS' EQUITY          
CURRENT LIABILITIES          
Current portion of long-term bank loans (Note 8) $                 166,586    $                   205,192
Lease financing short term (Note 7)                     15,361                        13,719
Accounts payable                     32,140                          36,790
Due to managers                       6,344                        13,684
Due to related parties (Note 3)                       1,501                            1,975
Accrued liabilities                      33,984                          33,449
Operating lease liabilities, current (Note 6)                       9,955                          6,820
Deferred revenue                     16,684                          17,838
Total Current Liabilities                   282,555                        329,467
              
NON-CURRENT LIABILITIES            
Long-term bank loans, net of current portion and unamortized loan issuance costs of $9,013 and $7,235, as of December 31, 2022 and June 30, 2023, respectively (Note 8)                   927,995                      779,024
Lease financing long term, net of unamortized lease issuance costs of $2,681 and $2,305, as of December 31, 2022 and June 30, 2023, respectively (Note 7)                   175,238                      157,432
Operating lease liabilities, non-current (Note 6)                     27,663                        25,333
Other non-current liabilities                          831                               907
TOTAL LIABILITIES                1,414,282                     1,292,163
              
COMMITMENTS & CONTINGENCIES (Note 12)          
           
SHAREHOLDERS' EQUITY          
Preferred Shares; $0.01 par value, authorized 25,000,000 shares; none issued or outstanding at December 31, 2022 and June 30, 2023, respectively (Note 9)                             -                                     -   
Common Shares, $0.01 par value, 300,000,000 shares authorized; 102,857,416 shares issued and outstanding as of December 31, 2022; 103,183,510 shares issued and outstanding as of June 30, 2023 (Note 9)                       1,029                            1,032
Additional paid in capital                2,646,073                     2,639,319
Accumulated other comprehensive income/(loss)                     20,962                        10,052
Accumulated deficit                  (648,722)                     (656,724)
Total Shareholders' Equity                2,019,342                     1,993,679
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,433,624   $ 3,285,842
           

 

The accompanying notes are integral part of these unaudited interim condensed consolidated financial statements.

  F-2 
Table of Contents

 

STAR BULK CARRIERS CORP.
Unaudited Interim Condensed Consolidated Income Statements
For the six-month periods ended June 30, 2022 and 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

           
    Six months ended June 30,
     2022     2023
            
Revenues:          
Voyage revenues (Note 14) $                 778,217   $                    462,721
              
Expenses/(Income)            
Voyage expenses (Notes 3 )                   119,785                          128,635
Charter-in hire expenses                     12,950                            9,695
Vessel operating expenses                    115,847                          112,303
Dry docking expenses                     19,169                            18,861
Depreciation (Note 5)                     77,469                            70,075
Management fees (Notes 3)                        9,800                              8,460
General and administrative expenses (Note 3)                     25,912                            22,675
Impairment loss (Notes 5 and 13)                            -                                 7,700
Loss on write-down of inventory                             -                                 4,743
Other operational loss                          774                               326
Other operational gain (Note 5)                     (2,103)                        (33,676)
Loss on bad debt                            -                                  300
(Gain)/Loss on forward freight agreements and bunker swaps, net (Note 13)                       3,939                          (4,207)
Loss on sale of vessels (Note 5)                            -                                    34
Total operating expenses, net                   383,542                          345,924
Operating income                   394,675                          116,797
              
Other Income/ (Expenses):            
Interest and finance costs (Note 8)                   (24,308)                        (31,731)
Interest income and other income/(loss)                            61                              6,593
Gain/(Loss) on interest rate swaps, net (Note 13)                            -                                (507)
Gain/(Loss) on debt extinguishment, net (Note 8)                          129                               (888)
Total other expenses, net                   (24,118)                        (26,533)
              
Income before taxes and equity in income/(loss) of investee $                 370,557   $                      90,264
Income taxes                          (37)                             (103)
Income before equity in income/(loss) of investee                   370,520                          90,161
Equity in income / (loss) of investee (Note 3)                          (10)                                 33
Net income                   370,510                          90,194
Earnings per share, basic $                       3.63   $                          0.88
Earnings per share, diluted                         3.62                              0.87
Weighted average number of shares outstanding, basic (Note 10)            102,098,942                   102,821,671
Weighted average number of shares outstanding, diluted  (Note 10)            102,439,945                   103,170,724

 

 

The accompanying notes are integral part of these unaudited interim condensed consolidated financial statements.

 

  F-3 
Table of Contents

 

STAR BULK CARRIERS CORP.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income / (Loss)
For the six-month periods ended June 30, 2022 and 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

           
   Six months ended June 30, 
    2022     2023
 Net income    $                               370,510    $                                90,194
 Other comprehensive income / (loss):           
 Unrealized gains / losses from cash flow hedges:           
 Unrealized gain / (loss) from hedging interest rate swaps recognized in Other comprehensive income/(loss) before reclassifications                                   19,280                                     3,502
 Less:           
 Reclassification adjustments of interest rate swap gain/(loss) (Note 13)                                       (633)                                  (14,412)
 Other comprehensive income / (loss)                                   18,647                                  (10,910)
 Total comprehensive income    $                               389,157    $                                79,284

 

 

The accompanying notes are integral part of these unaudited interim condensed consolidated financial statements.

  F-4 
Table of Contents

 

STAR BULK CARRIERS CORP.
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity
For the six-month periods ended June 30, 2022 and 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

                         
          Common Stock                     
     # of Shares     Par Value     Additional Paid-in Capital     Accumulated Other Comprehensive income/(loss)     
Accumulated deficit 
   Total Shareholders' Equity 
 BALANCE, January 1, 2022    102,294,758  $               1,023  $                     2,618,319  $  6,933  $                 (546,257)  $                 2,080,018
 Net income      -                      -     -     -                    370,510                     370,510
 Other comprehensive income      -     -     -    18,647    -    18,647
 Issuance of vested and non-vested shares and amortization of share-based compensation    528,941                       5                           11,475    -     -                        11,480
 Equity offering, net     654,690                       7                           19,430                                          -                              -                          19,437
 Repurchase and cancellation of common shares    (790,011)   (8)   (20,060)                                          -                              -      (20,068)
 Dividends declared ($3.65 per share)                                 -                        -                                   -       -                   (375,018)                   (375,018)
 BALANCE, June 30, 2022    102,688,378  $               1,027  $                     2,629,164 25,580  $                 (550,765)  $                 2,105,006
                         
BALANCE, January 1, 2023   102,857,416 $ 1,029 $ 2,646,073 $ 20,962 $ (648,722) $ 2,019,342
 Net income        -                      -     -     -                      90,194                       90,194
 Other comprehensive income / (loss)     -       -    (10,910)    -    (10,910)
 Issuance of vested and non-vested shares and amortization of share-based compensation (Note 9)     971,372                       9                             6,351    -     -                          6,360
 Dividends declared ($0.95 per share) (Note 9)                                -                         -                                  -     -                     (98,196)                     (98,196)
Cancellation of Songa shares   (6,706)                     -                                   -                                           -                              -                               - 
Offering expenses   -      -   (55   -    -    (55
Repurchase and cancellation of common shares (Note 9)   (638,572)   (6)   (13,050)                                          -                              -    (13,056)
 BALANCE, June 30, 2023      103,183,510  $               1,032  $                     2,639,319  $  10,052  $                 (656,724)  $                 1,993,679

 

 

The accompanying notes are integral part of these unaudited interim condensed consolidated financial statements.

 

  F-5 
Table of Contents

 

STAR BULK CARRIERS CORP.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
For the six-month periods ended June 30, 2022 and 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

           
  Six months ended June 30,
     2022     2023
Cash Flows from Operating Activities:          
Net income $            370,510    $                 90,194
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:            
Depreciation (Note 5)                77,469                      70,075
Amortization of debt (loans & leases) issuance costs (Note 8)                  2,641                        1,990
Amortization of operating lease right-of-use assets (Note 6)                                                5,465
Gain/(Loss) on debt extinguishment, net (Note 8)                   (129)                           888
Impairment loss (Note 5)                                                7,700
Loss / (gain) on sale of vessels (Note 6)                                                     34
Loss on bad debt                                                    300
Share-based compensation (Note 11)                11,480                        6,360
Gain from insurance proceeds relating to vessel total loss (Note 5)                                              (28,163)
Loss on write-down of inventory                                                 4,743
Change in fair value of forward freight derivatives and bunker swaps (Note 13)                     877                      3,065
Other non-cash charges                   (321)                             76
Gain on hull and machinery claims           (200)
Equity in income / (loss) of investee (Note 3)                       10                         (33)
Changes in operating assets and liabilities:            
(Increase)/Decrease in:            
Trade accounts receivable              (12,371)                    23,292
Inventories              (22,586)                    (2,734)
Prepaid expenses and other receivables                   1,937                  (12,774)
Derivatives asset                   (753)                      2,057
Due from related parties                   (911)                             39
Due from managers                  9,404                           31
Increase/(Decrease) in:            
Accounts payable                11,388                      4,694
Operating lease liability (Note 6)                                              (5,465)
Due to related parties                  1,758                           474
Accrued liabilities                  3,859                       (532)
Due to managers                11,533                        7,340
Deferred revenue                  3,292                      1,154
Net cash provided by / (used in) Operating Activities              469,087                    180,070
             
Cash Flows from Investing Activities:            
 Vessel upgrades and other fixed assets              (12,368)                    (8,764)
Cash proceeds from vessel sales (Note 5)                                                32,448
Cash proceeds from vessel total loss (Note 5)          55,000
Treasury bills              (35,226)                              
Hull and machinery insurance proceeds                  1,735                         558
Net cash provided by / (used in) Investing Activities              (45,859)                    79,242
             
Cash Flows from Financing Activities:            
Proceeds from bank loans, leases and notes (Note 8)              100,000                      77,000
Loan and lease prepayments and repayments            (267,351)                (208,967)
Financing and debt extinguishment fees paid                (3,044)                       (930)
Dividends paid (Note 9)            (375,251)                  (98,196)
Proceeds from issuance of common stock                19,792                                
Offering expenses paid                         (207)                           (55)
Repurchase of common shares (Note 9)              (20,068)                  (13,056)
Net cash provided by / (used in) Financing Activities            (546,129)                (244,204)
             
Net increase/(decrease) in cash and cash equivalents and restricted cash             (122,901)                    15,108
Cash and cash equivalents and restricted cash at beginning of period              473,271                    286,344
             
Cash and cash equivalents and restricted cash at end of period $            350,370    $               301,452
SUPPLEMENTAL CASH FLOW INFORMATION:          
  Cash paid during the period for:          
Interest $ 22,784    $  28,033
Non-cash investing and financing activities:            
Vessel upgrades                  1,520                           3,422
Reconciliation of (a) cash and cash equivalents, and restricted cash reported within the consolidated balance sheets to (b) the total amount of such items reported in the statements of cash flows:          
Cash and cash equivalents $ 335,774    $  285,248
Restricted cash, current (Note 8)   12,575     14,183
Restricted cash, non-current (Note 8)   2,021     2,021
Cash and cash equivalents and restricted cash at end of period shown in the statement of cash flows $ 350,370    $  301,452

 

 

The accompanying notes are integral part of these unaudited interim condensed consolidated financial statements.

 

F-6 

Table of Contents

 

STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

 

1.               Basis of Presentation and General Information:

Star Bulk Carriers Corp. (“Star Bulk”) is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains offices in Athens, New York, Limassol, Singapore and Germany. Star Bulk’s common shares trade on the NASDAQ Global Select Market under the ticker symbol “SBLK”.

The unaudited interim condensed consolidated financial statements include the accounts of Star Bulk and its wholly owned subsidiaries (collectively, the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for annual financial statements.

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements for the year ended December 31, 2022 and, in the opinion of management, reflect all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2023 are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2023.

The unaudited interim condensed consolidated financial statements presented in this report should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2022 included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2022 (the “2022 Annual Report”). The balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements as of that date, but, pursuant to the requirements for interim financial information, does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

Unless otherwise defined herein, capitalized words and expressions used herein shall have the same meanings ascribed to them in the 2022 Annual Report.

The 2019 Novel Coronavirus (“COVID-19”) pandemic resulted in a significant reduction in global economic activity and extreme volatility in the global financial market. During the second half of 2022, freight rates declined from highs seen earlier in the year as China’s COVID-related lockdown measures intensified. The end of the zero COVID-19 policy by the Chinese authorities during the first quarter of 2023 fueled markets with optimism that resulted in the rebound of freight levels. During the second quarter of 2023, freight rates have receded, as despite the uplift of the exporting activity, the relaxation of COVID-19 related inefficiencies resulted in the increase of effective ship supply. Concurrently, Chinese macro data are implying a stalling economy, while the outlook of the western economies is getting worse as a result of the tightening cycle that central banks are implementing in order to fight inflation. There continues to be a high level of uncertainty relating to how the COVID-19 pandemic will evolve, the evolution and emergence of existing and future variants, the availability of vaccines and their global deployment, the development of effective treatments, the imposition of effective public safety and other protective measures and the public's and government's responses to such measures. As a result of the COVID-19 pandemic restrictions imposed since 2020, additional crew expenses have been incurred. An increase in the severity or duration or a resurgence of the COVID-19 pandemic and any significant disruption of wide-scale vaccine distribution could have a material adverse effect on the Company’s future business, results of operations, cash flows, financial condition, the carrying value of the Company’s assets, the fair values of the Company’s vessels, and the Company’s ability to pay dividends.

As of June 30, 2023 and as adjusted for the delivery to the buyers of the vessel Star Polaris and the five Delphin Vessels, discussed in Note 5, the Company owned a modern fleet of 120 dry bulk vessels consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax and Supramax vessels with a carrying capacity between 52,425 deadweight tonnage (“dwt”) and 209,529 dwt, a combined carrying capacity of 13.3 million dwt and an average age of 11.5 years.

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

2.               Significant accounting policies and recent accounting pronouncements:

A summary of the Company’s significant accounting policies and recent accounting pronouncements is provided in Note 2 to the Company’s consolidated financial statements included in the 2022 Annual Report. Other than the change in accounting estimate described below, there have been no changes to the Company’s significant accounting policies and recent accounting pronouncements in the six-month period ended June 30, 2023.

Vessel Depreciation:

The cost of each of the Company’s vessels is depreciated beginning when the vessel is ready for its intended use, on a straight-line basis over the vessel’s remaining economic useful life, after considering the estimated residual value (vessel’s residual value is equal to the product of its lightweight tonnage and estimated scrap rate per ton).

Effective as of January 1, 2023, following management’s reassessment of the residual value of the Company’s vessels, the Company increased the estimated scrap rate per lightweight ton from $0.3 to $0.4. The current value of $0.4 was based on the historical average demolition prices prevailing in the market in the last 20 years. The change in this accounting estimate, which pursuant to ASC 250 “Accounting Changes and Error Corrections” was applied prospectively and did not require retrospective application, decreased the depreciation expense and increased the net income for the six-month period ended June 30, 2023 by $7,982 or $0.08 per basic and diluted share.

 

3.               Transactions with Related Parties:

Details of the Company’s transactions with related parties did not change in the six-month period ended June 30, 2023 and are discussed in Note 3 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

Transactions and balances with related parties are analyzed as follows:

Balance Sheets

    December 31, 2022     June 30, 2023
Long term investment          
Interchart  $ 1,349   $ 1,381
Starocean   202     203
CCL Pool   125     125
Long term investment $ 1,676   $ 1,709
           
Due from related parties          
Oceanbulk Maritime and its affiliates     287     248
Interchart     3      3
Starocean     34      34
Due from related parties $ 324   $ 285
           
Due to related parties          
Management and Directors Fees    114      38
Iblea Ship Management Limited    1,387      1,937
Due to related parties $ 1,501   $ 1,975

 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

3.        Transactions with Related Parties - continued:

 

Income statements

 

   Six months ended June 30, 
        2022     2023
 Voyage expenses:           
 Voyage expenses-Interchart   $  (2,070)    $  (2,070)
 General and administrative expenses:           
 Consultancy fees    $  (270)    $  (281)
 Directors compensation       (90)       (93)
 Office rent - Combine Marine Ltd. &  Alma Properties     (19)     (19)
 General and administrative expenses - Oceanbulk Maritime and its affiliates     (100)     (104)
 Management fees:           
 Management fees- Augustea Technoservices Ltd. and affiliates    $  (1,264)    $  -
 Management fees- Iblea Ship Management Limited     (1,426)     (1,514)
 Equity in income/(loss of investee)           
 Interchart   $  (22)    $  32
 Starocean    12     1

 

 

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Table of Contents

 

STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

4.               Inventories:

The amounts shown in the consolidated balance sheets are analyzed as follows:

 

          December 31, 2022         June 30, 2023 
 Lubricants   $                       15,863    $                14,917
 Bunkers                           51,299                     50,102
 Total   $                       67,162    $                65,019

 

5.               Vessels and other fixed assets, net:

The amounts in the consolidated balance sheets are analyzed as follows:

 

     Cost     Accumulated depreciation     Net Book Value 
 Balance, December 31, 2022   $  3,843,686  $  (962,135)  $  2,881,551
 - Acquisition of other fixed assets, vessel improvements and other vessel costs    12,186                     -   12,186
 - Vessel total loss   (27,570)   1,581   (25,989)
 - Vessel sale     (55,248)   22,766   (32,482)
 - Impairment loss    (7,700)                     -   (7,700)
 - Depreciation for the period    -    (70,075)   (70,075)
 Balance, June 30, 2023   $  3,765,354  $  (1,007,863)  $  2,757,491

 

During the first quarter of 2023, the Company agreed with the war risk insurers of the vessel Star Pavlina, that the vessel became a constructive total loss on February 24, 2023 and as a consequence that the Company is entitled to be indemnified for the vessel’s total insurance value given its prolonged detainment in Ukraine following the commencement of Russia’s military action against Ukraine on February 24, 2022 as further disclosed in Notes 15b) and 19c) of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report. As a result, the Company recognized a gain of $28,163 which is included within “Other operational gain” in the unaudited interim condensed consolidated income statement for the six-month period ended June 30, 2023. In addition, in 2023 and up to February 24, 2023, the Company earned through its war risk insurance policy detention compensation with respect to this vessel, an amount of $2,658 which is also included within “Other operational gain” in the 2023 unaudited interim condensed consolidated income statement. On April 12, 2023 and on May 4, 2023 the Company received the total insurance value of the vessel Star Pavlina.

During the six-month period ended June 30, 2023, the Company decided to sell opportunistically certain vessels and renew its fleet taking advantage of the elevated vessel market values. On March 24, 2023, the Company agreed to sell to a third party the vessels Star Borealis and Star Polaris with delivery to their new owner upon completion of their then-existing employment. Star Borealis and Star Polaris were delivered to their new owner on May 4, 2023 and July 7, 2023 (Note 15), respectively. With respect to the sale of Star Borealis, a loss of $34 was recognized for the six-month period ended June 30, 2023 which is separately reflected in the unaudited interim condensed consolidated income statement for the corresponding period. By reference to the agreed sale prices of Star Borealis and Star Polaris (Level 2), the Company recognized an impairment loss of $7,700 for the six-month period ended June 30, 2023, which is separately reflected in the unaudited interim condensed consolidated income statement for the corresponding period.  In addition, on May 26, 2023, the Company agreed to sell to a third party the vessels Star Centaurus, Star Columba, Star Aquila, Star Hercules and Star Cephueus (five of the Delphin Vessels), with delivery to their new owner upon completion of their then-existing employment. Star Centaurus, Star Columba and Star Aquila were delivered to their new owner in July 2023 (Note 15) while the delivery of Star Hercules and Star Cepheus is expected within August 2023. Given their employment as of June 30, 2023, none of the above-mentioned vessels met the criteria to be classified as held for sale as of that date and by reference to their agreed sale prices, no impairment loss was recognized for the six-month period ended June 30, 2023. The gain from the sale of the above-mentioned vessels that will be recognized in the third quarter of 2023 is expected to be approximately $20.0 million in aggregate.

As of June 30, 2023, 98 of the Company’s vessels, having a net carrying value of $2,149,014, serve as collateral under certain of the Company’s loan facilities and were subject to first-priority mortgages (Note 8). Title of ownership is held by the relevant lenders for another 11 vessels with a carrying value of $319,558 to secure the relevant sale and lease back financing transactions (Note 7). In addition, 18 of the Company’s vessels having a net carrying value of $352,136 are subject to second-priority mortgages and serve as collateral under one of the Company’s loan facilities (Note 8).

During the six month period ended June 30, 2023, the Company continued the technical upgrades to its fleet, such as the installation of ballast water treatment systems (“BWTS”) and Energy Saving Devices (“ESD”).

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

6.               Operating leases:

a) Time charter-in vessel agreements

 

The carrying value of the assets and liabilities recognized on the balance sheet as of December 31, 2022 and June 30, 2023 in connection with the time charter-in vessel arrangements with an initial term exceeding 12 months, as described in Note 6 to the Company’s consolidated financial statements included in the 2022 Annual Report, amounted to $37,191 and $31,774, respectively and are included under “Operating lease liabilities current and non- current” in the consolidated balance sheets. The time charter-in hire payments required to be made after June 30, 2023, for these outstanding operating lease liabilities are as follows:

Operating leases - Operating lease liabilities of time charter-in vessel agreements (Table)

Twelve month periods ending   Amount
June 30, 2024 $              7,534
June 30, 2025                6,242
June 30, 2026                6,242
June 30, 2027                5,900
June 30, 2028                6,259
June 30, 2029 and thereafter                2,633
Total undiscounted lease payments $            34,810
Discount based on incremental borrowing rate              (3,036)
Present value of lease liability              31,774

 

 

The weighted average remaining lease term of these charter-in vessel arrangements as of June 30, 2023 is 5.19 years. The charter-in hire expenses for these long-term charter-in arrangements for the six-month periods ended June 30, 2022 and 2023, were $5,953 and $5,960, respectively and are separately presented in the unaudited interim condensed consolidated income statements.

 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

6.               Operating leases - continued:

b) Office rental arrangements

The carrying value of the assets and liabilities recognized on the balance sheet as of December 31, 2022 and June 30, 2023 in connection with the office rental arrangements as described in Note 6 to the Company’s consolidated financial statements included in the 2022 Annual Report, amounted to $427 and $379, respectively and are included under “Operating lease liabilities current and non- current” in the consolidated balance sheets. The office rental payments required to be made after June 30, 2023, for these outstanding operating lease liabilities are as follows:

 

Twelve month periods ending   Amount
June 30, 2024 $                          274
June 30, 2025                            107
June 30, 2026                              -
June 30, 2027                              -
June 30, 2028                              -
June 30, 2029 and thereafter                              -
Total undiscounted lease payments $                          381
Discount based on incremental borrowing rate                              (2)
Present value of lease liability                            379

 

The weighted average remaining lease term of these office rental arrangements as of June 30, 2023 is 1.36 years. The lease expenses for these office rental arrangements for the six-month periods ended June 30, 2022 and 2023, were $247 and $255, respectively and are included under “General and administrative expenses” in the unaudited interim condensed consolidated income statements.

 

7.               Lease financings:

Details of the Company’s lease financings are discussed in Note 7 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

All of the Company’s lease financings bear interest at SOFR plus a margin, with the exception of three of them, which are expected to have been refinanced by October 2023. The corresponding interest expense of the Company’s bareboat lease financing activities is included within “Interest and finance costs” in the unaudited interim condensed consolidated income statements (Note 8).

Some of the Company’s lease financings contain financial and other covenants similar to those included in its credit facilities, as described in Note 8 below and in Note 8 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report, with which, as of June 30, 2023, the Company was in compliance (Note 8).

The principal payments required to be made after June 30, 2023, for the Company’s outstanding finance lease obligations recognized on the balance sheet, as of that date, are as follows:

Twelve month periods ending   Amount
June 30, 2024 $ 13,719
June 30, 2025   13,719
June 30, 2026   13,719
June 30, 2027   13,719
June 30, 2028   20,141
June 30, 2029 and thereafter   98,439
Total bareboat lease minimum payments $ 173,456
Unamortized lease issuance costs   (2,305)
Total bareboat lease minimum payments, net $ 171,151
Lease financing short term   13,719
Lease financing long term, net of unamortized lease issuance costs   157,432

 

 

8.               Long-term bank loans:

Details of the Company’s credit facilities are discussed in Note 8 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report and supplemented by the below new activities during the six-month period ended June 30, 2023.

As further discussed in Note 19a) and Note 8 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report, on January 13, 2023, the Company drew down the amounts of $22,829 and $24,171, under the two tranches available of the “Standard Chartered $47,000 Facility”.

In addition to the scheduled repayments during the six-month period ended June 30, 2023, on March 10, 2023 the Company prepaid an amount of $18,236 corresponding to the outstanding loan amount of the vessel Star Pavlina under the ING $310,600 Facility following the developments around the said vessel discussed in Note 5 above. In addition, in view of their agreed sales, as further discussed in Note 5 above, the Company prepaid i) on March 29, 2023, an amount of $26,207 corresponding to the outstanding loan amount of the vessels Star Borealis and Star Polaris under the DNB $107,500 Facility and ii) on June 27, 2023, an amount of $6,256 corresponding to the outstanding loan amount of the vessel Star Columba under the Citi $100,000 Facility.

F-12 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

8.        Long-term bank loans - continued:

In March 2023, the Company entered into a committed term sheet with Skandinaviska Enskilda Banken AB for a loan facility of up to $30,000 (the “SEB $30,000 Facility”) which was signed on May 25, 2023. The facility amount of $30,000 was drawn on May 30, 2023 and was used to replenish the funds used by the Company in May 2023 to prepay the outstanding loan amount of the vessel Star Aquarius of $13,125 and the outstanding lease amount of the vessel Star Pisces of $12,418. The SEB $30,000 Facility was drawn in two equal tranches, each repayable in 20 equal consecutive quarterly installments of $413 and a balloon payment of $6,750 due in May 2028, along with the last installment. The loan is secured by first priority mortgages on the vessels Star Aquarius and Star Pisces.

 

In March 2023, the Company entered into a committed term sheet with Nordea Bank Abp for a loan facility of up to $50,000 (the “Nordea $50,000 Facility”), which was signed on July 10, 2023. The facility amount was drawn on July 12, 2023 and was used to replenish the funds used by the Company in May 2023 to prepay the outstanding loan amount under the DSF $55,000 Facility of the vessels Star Eleni and Star Leo, of $42,308, in aggregate. The Nordea $50,000 Facility was drawn in two equal tranches, each repayable in 20 equal consecutive quarterly installments of $521 and a balloon payment of $14,583 due in July 2028, along with the last installment. The loan is secured by first priority mortgages on the vessels Star Eleni and Star Leo.

 

The Company’s credit facilities contain financial covenants and undertakings, a summary of which is included in Note 8 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

 

As of December 31, 2022 and June 30, 2023, the Company was required to maintain minimum liquidity, not legally restricted, of $64,000 and $63,000, respectively, which is included within “Cash and cash equivalents” in the consolidated balance sheets. In addition, as of December 31, 2022 and June 30, 2023, the Company was required to maintain a minimum liquidity, legally restricted, of $16,590 and $16,204, respectively, and is included within “Restricted cash, current and non-current” in the consolidated balance sheets.

As of June 30, 2023, the Company was in compliance with the applicable financial and other covenants contained in its credit facilities and lease financings as described in Note 7.

The principal payments required to be made after June 30, 2023 for the Company’s then-outstanding bank loans, are as follows:

Twelve month periods ending    Amount 
June 30, 2024 $                  205,192
June 30, 2025                    143,921
June 30, 2026                    226,400
June 30, 2027                    199,251
June 30, 2028                    173,098
June 30, 2029 and thereafter                      43,589
Total Long-term bank loans $                  991,451
Unamortized loan issuance costs                      (7,235)
Total Long-term bank loans, net $                  984,216
Current portion of long-term bank loans                    205,192
Long-term bank loans, net of current portion and unamortized loan issuance costs                    779,024

 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

8.        Long-term bank loans - continued:

As of June 30, 2023, all of the Company’s bank loans bear interest at SOFR plus a margin, with the exception of five of them which are expected to have been transitioned to SOFR by August 2023. In addition, following a number of interest rate swaps that it has entered into, the Company has converted a total of $431,559 of its outstanding debt as of June 30, 2023 from floating benchmark rate to an average fixed rate of 40 bps with average maturity of 1.2 years. The weighted average interest rate (including the margin) related to the Company’s existing bank loans and lease financings (Note 7) for the six-month periods ended June 30, 2022 and 2023 was 2.82% and 4.67%, respectively.

The amounts of “Interest and finance costs” included in the unaudited interim condensed consolidated income statements are analyzed as follows:

           
    Six months ended June 30,
    2022     2023
Interest on financing agreements $     21,718    $      43,323
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other Comprehensive Income (Note 13)           (633)        (14,412)
Amortization of debt (loan & lease) issuance costs         2,641           1,990
Other bank and finance charges             582              830
Interest and finance costs $     24,308   $     31,731

 

 

 

During the six-month period ended June 30, 2023, the Company wrote off an amount of $785 of unamortized debt issuance costs and incurred other expenses of $103, mainly in connection with the loan prepayments discussed above, which are included under “Gain/(Loss) on debt extinguishment, net” in the unaudited interim condensed consolidated income statement for the corresponding period.

 

9.               Preferred and Common Shares and Additional Paid-in Capital:

Details of the Company’s preferred shares and common shares are discussed in Note 9 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

During the six-month period ended June 30, 2023, the Company issued 450,000 common shares pursuant to its Performance Incentive Program discussed in Note 11 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

In 2023 and until May 16, 2023 when the new Share Repurchase Program, discussed below, was adopted, the Company repurchased 531,223 shares under the previous authorized share repurchase program in open market transactions at an average price of $20.98 per share, for an aggregate consideration of $11,159 including commissions.

 

On May 16, 2023, the Company’s Board of Directors cancelled the previous share repurchase program under which $8,549 was still outstanding to be repurchased and authorized a new share repurchase program of up to an aggregate of $50,000 (together with the previous authorized share repurchase program “Share Repurchase Program”). The timing and amount of any repurchases will be in the sole discretion of the Company’s management team, and will depend on legal requirements, market conditions, share price, alternative uses of capital and other factors. The Company is not obligated under the terms of the Share Repurchase Program to repurchase any of its common shares. The Share Repurchase Program has no expiration date and may be suspended or terminated by the Company’s Board of Directors at any time without prior notice. Common shares purchased as part of this program will be cancelled by the Company.

 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

9.        Preferred and Common Shares and Additional Paid-in Capital - continued:

In June 2023, under the Share Repurchase Program, the Company repurchased 107,349 common shares in open market transactions at an average price of $17.65 per share for an aggregate consideration of $1,897 including commissions. All the repurchased shares in 2023 under the Share Repurchase Program described above were cancelled and removed from the Company’s share capital as of June 30, 2023.

Pursuant to its dividend policy, during the six-month period ended June 30, 2023, the Company declared and paid a cash dividend of $98,196 or $0.95 per common share.

10.            Earnings per Share:

The computation of basic earnings per share is based on the weighted average number of common shares outstanding for the six-month periods ended June 30, 2022 and 2023. The calculation of basic earnings per share does not consider the non-vested shares as outstanding until the time-based vesting restriction has lapsed. Diluted earnings per share gives effect to stock awards and restricted stock units using the treasury stock method, unless the impact is anti-dilutive.

The Company calculates basic and diluted earnings per share as follows:

         
    Six months ended June 30,
    2022   2023
Income :        
Net income $               370,510  $                  90,194
            
           
Basic earnings per share:        
Weighted average common shares outstanding, basic          102,098,942          102,821,671
Basic earnings per share $                     3.63  $                      0.88
         
Effect of dilutive securities:        
Dillutive effect of non vested shares                 341,003                 349,053
Weighted average common shares outstanding, diluted          102,439,945            103,170,724
         
Diluted earnings per share $                     3.62  $                      0.87

 

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

11.            Equity Incentive Plans:

Details of the Company’s equity incentive plans and share awards granted through December 31, 2022, are discussed in Note 11 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

On May 16, 2023, the Company's Board of Directors adopted the 2023 Equity Incentive Plan (the “2023 Plan”) and reserved for issuance 631,500 common shares thereunder. On the same date, all of the 631,500 restricted common shares were granted to certain directors, officers and employees of which 411,974 restricted common shares vest in November 2023, 151,026 restricted common shares vest in May 2024 and the remaining 68,500 common shares vest in May 2026. The fair value of each share was $18.19, based on the closing price of the Company’s common shares on the grant date.

The stock-based compensation cost for the six-month periods ended June 30, 2022 and 2023, which is included under “General and administrative expenses” in the unaudited interim condensed consolidated income statements, amounted to $11,480 and $6,360, respectively, and include an amount of $3,370 and $2,140, respectively, recognized in connection with the Company’s Performance Incentive Program. The respective charges were calculated based on the fuel market prices at each period end and assuming 5% of Excess Savings to be awarded by the Board of Directors.

A summary of the status of the Company’s non-vested restricted shares as of June 30, 2023 and the movement during the six-month period ended June 30, 2023 is presented below.

  Number of shares   Weighted Average Grant Date Fair Value
Unvested as at January 1, 2023 460,190 $ 19.38
Granted 1,081,500   18.42
Vested (765,715)   18.60
Unvested as at June 30, 2023 775,975 $ 18.81

 

As of June 30, 2023, the estimated compensation cost relating to non-vested restricted share awards not yet recognized is $12,728 and is expected to be recognized over the weighted average period of 1.00 year. During the six-month period ended June 30, 2023, the Company paid $548 for dividends to shareholders of non-vested shares.

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STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

12.            Commitments and Contingencies:

a)              Commitments:

The following tables set forth inflows and outflows related to the Company’s charter party arrangements and other commitments, as at June 30, 2023.

Charter party arrangements:

      Twelve month periods ending June 30,
+ inflows/ - outflows     Total     2024     2025     2026     2027     2028     2029 and thereafter
Future, minimum, non-cancellable charter revenues (1)    $              85,097    $         74,363    $         10,734    $                   -    $                 -    $                 -    $                       -
                                           
Total    $              85,097   $        74,363   $        10,734   $                  -   $                -   $                -   $                      -

 

____________________

(1)The amounts represent the minimum contractual charter revenues to be generated from the existing, as of June 30, 2023, non-cancellable time charter agreements, until their expiration, net of address commission, assuming no off-hire days other than those related to scheduled interim and special surveys of the vessels. Future inflows also include revenues deriving from index linked charter agreements using i) the index rates at the commencement date of each agreement, in compliance with ASC 842, and do not reflect relevant index charter rate information prevailing as of June 30, 2023 and ii) the remaining minimum duration of each contract.

 

Other commitments:

      Twelve month periods ending June 30,
+ inflows/ - outflows     Total     2024     2025     2026     2027     2028     2029 and thereafter
Charter-in expense newbuilding vessels (1)   $          (212,834)   $        (5,590)    $       (26,711)    $          (30,204)    $       (30,204)    $       (30,287)    $              (89,838)
Vessel BWTS and ESD (2)                  (9,630)            (9,630)                    -                      -                    -                    -                          -
                                           
Total    $          (222,464)   $      (15,220)   $      (26,711)   $         (30,204)   $      (30,204)   $      (30,287)   $             (89,838)

____________________

(1)The amounts represent minimum contractual charter-in commitments to be incurred with respect to four Kamsarmax newbuildings and two Ultramax newbuildings which are expected to be delivered during 2024 and the charter-in contracts have a minimum duration of 84 months per vessel.
(2)The amounts represent the Company’s commitments as of June 30, 2023, for vessel upgrades (BWTS and ESD).

 

b)              Legal proceedings

Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company’s vessels.  The Company accrues for the cost of environmental liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure.  Currently, management is not aware of, and has not accrued for, any such claims or contingent liabilities requiring disclosure in the unaudited interim condensed consolidated financial statements.

 

13.            Fair value measurements and Hedging:

Fair value on a recurring basis:

Interest rate swaps

Details of the Company’s interest rate swaps are discussed in Note 18 of the Company’s consolidated financial statements for the year ended December 31, 2022, included in the 2022 Annual Report.

During the six-month period ended June 30, 2023, the Company early terminated two of its interest rate swaps with Citibank that were originally scheduled to mature in August 2023 and October 2023. All of the Company’s interest rate swaps in place as of June 30, 2023 were designated and qualified as cash flow hedges. The effective portion of the unrealized gains/losses from these swaps is recorded in Other Comprehensive Income / (Loss) and no portion of these cash flow hedges was ineffective during the six-month period ended June 30, 2023.

A gain of approximately $5,741 in connection with the interest rate swaps is expected to be reclassified into earnings during the following 12-month period when realized.

Freight Derivatives and Bunker Swaps

The results of the Company’s freight derivatives and bunker swaps for the six-month periods ended June 30, 2022 and 2023 and the valuation of their open positions as at December 31, 2022 and June 30, 2023 are presented in the tables below.

The amounts of Gain / (Loss) on interest rate swaps, freight derivatives and bunker swaps recognized in the unaudited interim condensed consolidated income statements, are analyzed as follows:

         
    Six months ended June 30,
    2022   2023
Consolidated Statement of Operations        
Gain/(loss) on interest rate swaps, net        
Gains/(loss) of de-designated accounting hedging relationship                       -                       (507)
Total Gain/(loss) on interest rate swaps, net $                     -  $                     (507)
         
Interest and finance costs        
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other comprehensive income/(loss) (Note 8)                    633                   14,412
Total Gain/(loss) recognized  $                  633  $                  14,412
         
Gain/(loss) on forward freight agreements and bunker swaps, net        
Realized gain/(loss) on forward freight agreements and freight options                 1,023                     2,796
Realized gain/(loss) on bunker swaps               (4,085)                     4,476
Unrealized gain/(loss) on forward freight agreements and freight options               (1,169)                      (116)
Unrealized gain/(loss) on bunker swaps                    292                   (2,949)
Total Gain/(loss) recognized $             (3,939)  $                    4,207

 

F-17 

Table of Contents

 

STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

13.       Fair value measurements and Hedging - continued:

Fair value on a recurring basis - continued:

The following table summarizes the valuation of the Company’s financial instruments as of December 31, 2022 and June 30, 2023. The fair value of freight derivatives and bunker swaps was determined through Level 1 inputs of the fair value hierarchy (quoted prices from the applicable exchanges such as London Clearing House (LCH) or Singapore Exchange (SGX)), while the fair value of the interest rate swaps was determined through Level 2 inputs of the fair value hierarchy (such as interest rate curves).

                   
      Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
      December 31, 2022   June 30, 2023
  Balance Sheet Location   (not designated as cash flow hedges)   (designated as cash flow hedges)   (not designated as cash flow hedges)   (designated as cash flow hedges)
ASSETS                  
Forward freight agreements - current Derivatives, current asset portion $ 191 $ - $ - $ -
Bunker swaps - current Derivatives, current asset portion   3,688   -   738   -
Forward freight agreements - non-current Derivatives, non-current asset portion   -   -   75   -
Total    $ 3,879 $ - $ 813 $ -
                   

 

Fair value measurements and Hedging - Fair value on recurring basis - Significant Other Observable Inputs (Table)

                   
      Significant Other Observable Inputs (Level 2)
      December 31, 2022   June 30, 2023
  Balance Sheet Location   (not designated as cash flow hedges)   (designated as cash flow hedges)   (not designated as cash flow hedges)   (designated as cash flow hedges)
ASSETS                  
Interest rate swaps - current Derivatives, current asset portion $                          1,665 $                   20,041 $                             - $                  12,159
Interest rate swaps - non-current Derivatives, non-current asset portion                                 798                         7,868                               -                        5,247
Total    $                          2,463 $                   27,909 $                             - $                  17,406

 

 

Certain of the Company’s financial instruments discussed above require the Company to periodically post additional collateral depending on the level of any open position under such financial instruments, which as of December 31, 2022 and June 30, 2023 amounted to $2,199 and $2,485, respectively, and are included within “Restricted cash, current” in the consolidated balance sheets (Note 8).

The carrying values of temporary cash investments, restricted cash, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. The fair value of long-term bank loans and under lease financings (Level 2), bearing interest at variable interest rates, approximates their recorded values as of June 30, 2023, due to the variable interest rate nature thereof.

Fair value on a non-recurring basis:

As further disclosed in Note 5, during the six-month period ended June 30, 2023 the Company recognized an impairment loss of $7,700 relating to the agreed sale of two of its vessels. The carrying value of the respective vessels was written down to the fair value as determined by reference to their agreed sale prices (Level 2) which amounted to $65,400.

F-18 

Table of Contents

 

STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

14.            Voyage revenues:

The following table shows the voyage revenues earned from time charters, voyage charters and pool agreements for the six-month periods ended June 30, 2022 and 2023, as presented in the consolidated income statements:

    Six months ended June 30,
    2022   2023
         
Time charters $ 448,357  $  241,378
Voyage charters   326,323   219,666
Pool revenues   3,537   1,677
  $ 778,217  $  462,721

 

As of December 31, 2022 and June 30, 2023, trade accounts receivable from voyage charter agreements amounted to $24,144 and $15,951, respectively. This decrease was mainly attributable to the timing of collections and lower rates prevailing during the six-month period ended June 30, 2023.

Further, as of June 30, 2023, capitalized contract fulfilment costs which are recorded under “Other current assets” increased by $1,515 compared to December 31, 2022, from $4,366 to $5,881. The outstanding balance is mainly affected by the timing of commencement of revenue recognition.

Under ASC 606, unearned voyage charter revenue represents the consideration received for undelivered performance obligations. The Company recorded $9,215 as unearned revenue related to voyages charter agreements in progress as of December 31, 2022, which were recognized in earnings in the six-month period ended June 30, 2023 as the performance obligations were satisfied in that period. In addition, the Company recorded $8,319 as unearned revenue related to voyage charter agreements in progress as of June 30, 2023, which will be recognized in earnings as the performance obligations will be satisfied.

The amount invoiced to charterers in connection with the additional revenue for scrubber-fitted vessels under time-charter contracts was $44,777 and $29,971 for the six-month periods ended June 30, 2022 and 2023, respectively, and did not include the fuel cost savings gained from the scrubber-fitted vessels which were employed under voyage charter agreements.

Demurrage income for the six-month periods ended June 30, 2022 and 2023 amounted to $23,449 and $6,608, respectively, and is included in Voyage revenues in the unaudited interim condensed consolidated income statements.

The adjustment to Company’s revenues from the vessels operating in the CCL Pool, deriving from the allocated pool result for those vessels as determined in accordance with the agreed-upon formula, for the six-month periods ended June 30, 2022 and 2023 was $3,254 and $2,349, respectively, and is included within “Pool Revenues” in the table above. Pool revenues also include other minor participation adjustments.

F-19 

Table of Contents

 

STAR BULK CARRIERS CORP.
Notes to Unaudited Interim Condensed Consolidated Financial Statements

June 30, 2023

(Expressed in thousands of U.S. dollars except for share and per share data, unless otherwise stated)

 

15.            Subsequent Events:

a)On August 3, 2023 the Company’s Board of Directors declared a quarterly cash dividend of $0.40 per share payable on or about September 7, 2023 to all shareholders of record as of August 22, 2023. The ex-dividend date is expected to be August 21, 2023.

 

b)On July 7, 2023, July 10, 2023, July 14, 2023 and July 24, 2023, the vessels Star Polaris, Star Centaurus, Star Columba and Star Aquila, respectively, were delivered to their buyers, as discussed in Note 5.

 

c)On July 12, 2023, the amount of $50,000 was drawn under the Nordea $50,000 Facility, as discussed in Note 8.

 

 

&