Petros Pappas: Star Bulk’s profits soared by 61.2%

By Anastasia Vamvaka

The investment of 250 million euros with the installation of scrubbers, the specialized systems to reduce sulfur dioxide emissions, about 3 years ago seems to have brought to Star Bulk, the impressive financial results for both the third quarter of the year and the first report semester of 2022.

Through the installation of the scrubbers, the company saved a very significant amount – it is estimated that for each ton of fuel the saving was 280 dollars – as it used fuels with a high sulfur content, which are at a lower price compared to those with a lower content . Now 94% of the company’s 128 cargo ships have been fitted with a scrubber.

According to the announcement issued by the company, net profits increased by 61.2%, reaching 200.1 million dollars against 124 million in the corresponding period last year.

The company’s second-quarter revenue was $417.3 million, up from $311.4 million last year. On a half-year basis, Star Bulk recorded revenue of $778.2 million from $511.8 a year ago. Its profits more than doubled to 370.5 million against 159.9 in 2021.

The company’s CEO, Petros Pappas, said, “Star Bulk continued its strong performance in 2022. Looking ahead to the next quarter, we have covered 61% of our available days for the third quarter at a charter rate of $29,000 per day per vessel. In accordance with our established dividend policy, the Board of Directors has approved a dividend of $1.65 per share.Star Bulk has distributed $6.55 per share over the past four quarters.

We are pleased to report that as of the end of June, we have recouped our $250 million scrubber investment over 2.5 years. This investment includes all associated capital costs as well as non-lease costs for their installation.

We have continued to optimize our debt since the beginning of the year. The company has refinanced approximately $310 million which will reduce interest costs by four million dollars per year, extend maturities and leave it with 12 ships unencumbered.”

Star Bulk is mainly active in the marine transport of dry bulk cargo. Star Bulk ships mainly carry iron ore, minerals and grain, as well as smaller cargoes such as bauxite, fertilizers and steel products. Star Bulk maintains executive offices in Athens, Oslo, New York, Limassol and Singapore and has a fleet of 128 vessels, with a total capacity of 14.1 million dwt, consisting of 17 Newcastlemax, 22 Capesize, 2 Mini Capesize, 7 Post Panamax, 41 Kamsarmax, 2 Panamax, 20 Ultramax and 17 Supramax carrying capacities between 52,425 dwt and 209,537 dwt.