Star Bulk Carriers (SBLK) Outpaces Q1 Expectations

Star Bulk Carriers (NASDAQ: SBLK) reported Q1 EPS of ($0.87), $0.17 better than the analyst estimate of ($1.04). Revenue for the quarter came in at $46.3 million versus the consensus estimate of $32.49 million.

Petros Pappas, Chief Executive Officer of Star Bulk, commented: "The first quarter of 2016 was the worst of the last 30 years, as freight rates remained below operating costs and vessel values reached new lows across all dry bulk vessel classes.

We continue implementing cost containment initiatives and maximizing internal efficiencies, resulting in our average daily Opex per vessel excluding pre-delivery expenses being reduced by 19% y-o-y to $3,591. This reduction was not at the expense of the quality services provided to our customers and the maintenance of our vessels, as evidenced by the fact that 91% of vessels under our management has been assigned 5-star rating from Rightship.

In the last few months we have entered into negotiations with our banks, with which we have long standing relationships, to defer principal payments and waive or substantially relax financial covenants, so as to preserve liquidity well into 2019. In order to finalize these discussions and relevant documentation, we have entered into standstill agreements covering debt principal repayments as well as certain covenants with our Lenders for a period of three months ending on August 31st 2016."

For earnings history and earnings-related data on Star Bulk Carriers (SBLK) click here.

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