ATHENS - Star Bulk Carriers Corp. (NASDAQ:SBLK), a major player in the global transportation of dry bulk cargoes, disclosed its unaudited financial and operational results for the fourth quarter of 2023. The company reported a net income of $39.7 million, a decrease from the $85.8 million recorded in the same period the previous year. The earnings per share (EPS) also declined to $0.45, down from $0.84 year-over-year.
Voyage revenues fell to $263.5 million in the fourth quarter from $294.8 million in the fourth quarter of 2022. Time Charter Equivalent (TCE) revenues, a key industry metric, dropped to $191.9 million from $216.4 million, with the TCE rate per day also decreasing to $18,296 from $19,590. These figures reflect softer market conditions compared to the prior year.
Star Bulk's adjusted EBITDA for the quarter was $114.0 million, a decrease from $134.6 million in the fourth quarter of 2022. The company attributed the decline to the weaker dry bulk market, inflationary pressures, and increased vessel operating expenses, which included an additional $0.15 million in pre-delivery expenses.
The company also announced a quarterly cash dividend of $0.45 per share, payable on March 28, 2024, to shareholders of record as of March 12, 2024. This brings the total distributed amount since June 2021 to $1.1 billion.
In the realm of strategic developments, Star Bulk completed a significant share repurchase, buying back 20 million shares from Oaktree for $380.0 million. It also expanded its newbuilding order, increasing the size from two to five Eco Kamsarmaxes, set to deliver in 2025-2026.
The company's merger with Eagle Bulk Shipping Inc. (NYSE:NYSE:EGLE) continues to progress, with regulatory approvals obtained and the shareholder vote scheduled for April 5, 2024. The transaction is expected to close in the first half of 2024.
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