Star Bulk Carriers Corp. Q1 FY2025 earnings call

• Eagle Bulk integration: Realizing savings on operating expenses, completed consolidation of ship management practices, expect to phase out third-party crew managers by Q3 2025, dedicated crewing pool to have over 5,000 seafares. - Fleet update: Operating expense for Q1 2025 was $4,898 per vessel day, net cash and expenses were $1,319 per vessel per day. Expected dry dock expense schedule for remainder of 2025 is $47 million for 38 vessels with ~1,210 high days. 5 Kamsarmax newbuilding vessels expected to be delivered in first half of 2026 with $130 million debt financing secured. Energy saving technologies retrofit program: 42 installations completed, 21 planned for 2025. Vessel sales: Agreed to sell several Supramax vessels, expecting $38.6 million in sale proceeds in second and third quarter of 2025. - Environmental regulations: IMO introduced new net zero framework with greenhouse gas fuel intensity metric, set for adoption in October 2025, first reporting period starting Jan 2028.

For the first quarter of 2025, net income was $0.5 million with an adjusted net loss of $7.8 million or $0.07 adjusted loss per share. Adjusted EBITDA was $49 million. During Q1, 1.3 million shares were repurchased for $19.6 million. A dividend per share of $0.05 was declared, payable on June 6, 2025. Pro forma total cash was $437 million, pro forma total debt was $1.2 billion, and pro forma liquidity was almost $0.5 billion. There were 13 debt-free vessels with an aggregate market value of $270 million. The time charter equivalent rate was $12,439 per vessel per day, and combined daily OpEx and net cash G&A expenses per vessel per day were $6,217. Synergies from the Eagle Bulk transaction since completion totaled almost $40 million, with Q1 cost synergies for the Eagle fleet at €18.4 million.

• Expect to receive $38.6 million in sale proceeds for vessels in second and third quarter of 2025. - Fleet mix changes with nine chartering vessels and 150 vessels on fully delivered basis with average age 11.9 years. - Anticipate a volatile market in 2025 but cautiously optimistic medium-term due to favorable supply picture, IMO regulations, and Chinese stimulus. - Focus on actively managing scrubber-fitted fleet to capture emerging market opportunities.

• Geopolitical uncertainty impacting trade. - Trade policy shifts, e.g., U.S. tariff negotiations affecting demand. - Red Sea opening potentially negatively affecting supply balance. - China's economic actions and trade policies impacting imports of coal, grain, etc. - Low scrapping rates leading to net fleet growth exceeding demand growth. - Order book size vs demand balance challenges.

Q: Omar Nokta of Jefferies asked about the market outlook, expecting a volatile year with rates holding but not exciting.

A: Petros Pappas mentioned pros like geopolitical and macro factors (bauxite from West Africa, iron ore from West Africa and Brazil, potential Ukraine reconstruction, China's economic boost, oil price and dollar effects) and cons like China's coal and grain production, Red Sea opening, low scrapping rates. Stated moderate year with potential upward if wars stop.

Q: Chris Robertson of Deutsche Bank asked about asset sales timing and use of proceeds.

A: Christos Begleris said vessels sold will be delivered in second and early third quarter 2025, proceeds used for share buybacks as shares trade at discount to NAV.

Q: Doug Smith of Everest asked about demolition rate and vessel sales.

A: Petros Pappas said environmental regulations will play a role, order book low due to uncertainty, buyers are Chinese, environmental regs will slow speed and cause some scrapping eventually