Star Bulk Carriers Corp. Reports Net Profit of $42.4 Million for the Fourth Quarter of 2024, and Declares Quarterly Dividend of $0.09 per Share

Core Viewpoint - Star Bulk Carriers Corp. reported strong financial results for Q4 2024, with significant increases in voyage revenues and net income compared to the previous year, despite facing challenges in charter rates and operating expenses [2][28][30]. Financial Performance - Voyage Revenues for Q4 2024 reached $308.9 million, up from$263.5 million in Q4 2023, marking a 17.3% increase [2][30]. - Net Income for Q4 2024 was $42.4 million, compared to$39.7 million in Q4 2023, reflecting a 1.9% increase [2][28]. - Adjusted Net Income for Q4 2024 was $40.6 million, down from$63.5 million in Q4 2023, indicating a decrease of 36.1% [2][28]. - EBITDA for Q4 2024 was $106.2 million, compared to$93.2 million in Q4 2023, representing a 14.4% increase [2][29]. Operational Highlights - The average number of vessels increased to 153.1 in Q4 2024 from 117.8 in Q4 2023, contributing to higher revenues [2][30]. - Daily Time Charter Equivalent (TCE) rate decreased to $16,129 in Q4 2024 from$18,296 in Q4 2023, reflecting weaker market conditions [2][30]. - Daily operating expenses per vessel rose to $5,164 in Q4 2024 from$4,991 in Q4 2023, driven by the acquisition of the Eagle fleet [2][32]. Dividend and Share Repurchase - The Board of Directors declared a quarterly cash dividend of $0.09 per share, corresponding to 60$100 million share repurchase program, with $7.4 million spent to repurchase 500,000 shares in January 2025 [9][17]. Cost Management and Synergies - The company achieved cumulative cost reductions of$21.8 million since April 2024, with $12.6 million in cost reductions realized in Q4 2024 alone [10]. - The integration of systems and processes from the Eagle fleet is expected to yield further operational efficiencies [10]. Financing and Debt Management - Star Bulk successfully raised new debt and refinanced existing facilities on favorable terms, reducing costs and extending maturities [11][20]. - The company has an outstanding total notional amount of$50 million under interest rate swaps, with a Mark-to-Market value of $3.2 million as of December 31, 2024 [19]. Market Outlook - The company remains cautiously optimistic about the medium-term outlook for the dry bulk market, citing a low order book and an aging global fleet [12].