By Dhirendra Tripathi
Investing.com – Star Bulk Carriers Corp (NASDAQ:SBLK) stock jumped more than 3% Wednesday as the shipping company rode booming demand amid a vessel supply crunch to drive its third-quarter earnings more than eight times higher and comfortably beat estimates.
Adjusted profit came in at $225 million compared to around $27 million in the third quarter of 2020.
Global shipping rates have been at record highs as demand for both farm and non-farm commodities like crude, coal, steel, iron-ore and consumer goods has soared. Labor crunch has boosted wages and shipping rates have firmed up on that account as well. Consumer demand, fueled by Covid-19, has stayed elevated even as the pandemic has waned.
Star Bulk specializes in sea freight of iron-ore, coal and grains.
CEO Petros Pappas said the overall outlook for the dry bulk market remains constructive, pointing out to strong global growth and increased infrastructure spending that have led to a healthy rise in demand for commodities.
The company said high commodity prices have provided the incentive to expand production and increase exports.
The company sees demand for bulk dry cargoes coming in from trade in coal, iron-ore and grains including U.S. soybean and corn exports. Third-quarter revenue more than doubled year-on-year to $416 million but fell short of estimates.