Star Bulk Carriers Reports 20th Profitable Quarter
Star Bulk Carriers, a prominent dry bulk shipping company based in Limassol, Cyprus, has achieved its 20th consecutive profitable quarter, announcing a net income of $0.04 million for the second quarter of 2025. The company reported an EBITDA of $55.9 million and a daily time charter equivalent (TCE) per vessel of $13,624. In a continued show of financial strength, Star Bulk will distribute a dividend of $0.05 per share, marking the 18th consecutive quarter of dividend payments.
Strong Financial Performance Amid Market Challenges
Despite facing weaker market conditions, Star Bulk Carriers has demonstrated resilience in its financial performance. The company’s voyage revenues decreased to $247.4 million from $352.9 million in the previous year, while TCE revenues fell to $176.1 million from $262.2 million. The average TCE rate also dropped significantly, from $19,268 to $13,624 per day, attributed to lower charter rates and a reduced fleet size, which averaged 147.6 vessels compared to 155 in the prior year.
CEO Petros Pappas highlighted the company’s strategic initiatives, including a share buyback program that saw the acquisition of 3.3 million shares at prices below net asset value. This move reflects management’s confidence in the company’s intrinsic value and commitment to enhancing shareholder returns. Star Bulk has distributed approximately $1.36 billion in total dividends to its shareholders since the inception of its dividend program.
In a bid to strengthen its fleet composition and cash position, Star Bulk sold nine vessels in the second quarter that no longer aligned with its commercial profile. The company anticipates generating around $104 million in gross proceeds from these sales in the latter half of the year. The fleet renewal effort includes the sale of various supramaxes and one kamsarmax, with the latter being the only Kamsarmax in the group, built in 2006. The sales are expected to enhance the company’s financial flexibility and operational efficiency.
Future Outlook and Strategic Positioning
Looking ahead, Star Bulk Carriers remains optimistic about the long-term outlook for the dry bulk market, despite current geopolitical tensions posing challenges. Pappas noted that the company is well-positioned to capitalize on future opportunities, supported by a low order book and favorable regulatory developments from the International Maritime Organization (IMO). The company’s proactive approach, combined with a flexible fleet and a strong balance sheet, positions it favorably for navigating market fluctuations.
Star Bulk Carriers currently controls over 140 bulk carriers with a total capacity of 14.2 million deadweight tons (dwt). The company’s strategic focus on repositioning its fleet and maintaining financial flexibility is evident in its ongoing efforts to adapt to changing market conditions. As it continues to navigate the complexities of the shipping industry, Star Bulk remains committed to delivering value to its shareholders and enhancing its operational capabilities.
