Star Bulk Q1 2024 results

Yikes! SBLK chose the Friday prior to Memorial Day (05/24) to announce results. Link off their home page is not secure, so I am grabbing the SA link.

  • Adj EBITDA of $123M
  • Adj Net Income of $73M
  • Fleet-wide TCE avg $19,627
  • Dividend of 75c/sh

Eagle Bulk (EGLE) merger was completed in Apr 2024. Deal was completed via share exchange. So share count goes up. But, cash that EGLE had also moves over. Doing the + and - math, it seems like SBLK sold 4 vessels in Q1 2024, and then in Q2 2024 - 2 SBLK vessels + 2 formerly EGLE vessels.
Vessel count increases to over 160 vessels
Fleet mix certainly has depth in three of the four dry bulk categories (no handysize vessels)

Back in Sept-Oct 2023, Oaktree Capital completed a two-stage sale of 20M SBLK shares. More than likely, it was triggered by fund redemptions. At least according to Yahoo! Finance, Oaktree Capital has a 6.1M SBLK stake per 03/31/24. Oaktree Capital also used to have a stake in EGLE. But that stake was either mostly or completely exited prior to the SBLK merger. In any case, wrt SBLK, I took my cue from Oaktree and did a major exit of SBLK in Sept 2023. SBLK mgmt proved both Oaktree and I wrong in the interim.

It isn’t so obvious though. Looking at Slide 4 (cash flow bridge), the proceeds from the sold vessels was less than debt on the vessels. Likely not all groups of SBLK vessel sales will be like Q1 2024. However, with over 160 vessels and a fair number of older vessels, there could still be some warts in the fleet.


Thank you very much.