Star Bulk Carriers Q4 2023

Announced on 02/12/24
Star Bulk Carriers (SBLK) reported

  • Rev of $263.5M
  • Net income of $39.7M
  • Q4 dividend of 45c/sh
  • Completed the repurchase of the 2nd slice of 10M SBLK shares owned by Oaktree Capital.
  • Announced the acquisition of smaller dry bulker, Eagle Bulk (EGLE) - deal is still proceeding, and will be accomplished via a share exchange.

SBLK has continued to selectively dispose itself of older tonnage and also increased its newbuild order (from 2 Kamsarmaxes to 5). The move makes sense given SBLK has a lot of older tonnage in that vessel category (Panamax category). A majority of the SBLK’s fleet include vessels with scrubbers. But, as a vessel gets older, the bang-for-the-buck starts to lessen.

Had a SBLK position thru Sept 2023 - Shaken out by Oaktree’s major SBLK exit decision. Sometimes dry bulk shipping names get a major run-up after the Chinese New Year holidays end. But, I’m cautious on front-running that bet.
SBLK is a good dry bulk shipper. The sale of older tonnage is a good way to recycle capital.