Greek shipping company Star Bulk Carriers returned to profit as its revenues jumped in the first quarter ended March 31, 2018.
The company’s net income stood at USD 9.9 million in the first quarter, compared to a net loss of USD 15.9 million reported in the same period a year earlier.
Voyage revenues surged to USD 121 million from USD 64.8 million seen in the first quarter of 2017.
Time charter equivalent (TCE) revenues were also up at USD 81.5 million, against USD 49 million, as the daily TCE rate stood at USD 12,586 in the first quarter of 2018, up from USD 8,156 earned in 2017.
“We are happy to report another profitable quarter, especially during the seasonally weak period of the year,” Petros Pappas, Chief Executive Officer of Star Bulk, said.
“We have been busy on the financing front. We have obtained commitments of USD 561 million from ten financing institutions, refinancing almost all of our debt maturities due in 2018 and 2019.”
These commitments include “competitive financing terms” reducing the company’s interest cost by USD 2.4 million per year and pushing out average debt maturity by 3 years, Pappas explained.
Pappas informed that Star Bulk’s recently announced acquisitions “should improve the liquidity of our share and provide economies of scale.”
Following the end of the quarter, Star Bulk took delivery of the Newcastlemax vessel Star Leo. The 207,939 dwt vessel, which was built at Shanghai Waigaoqiao Shipbuilding, joined its owner on May 14, 2018. The unit is partially financed under a bareboat charter in the amount of USD 30 million.