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ATHENS, GREECE -- (Marketwire) -- 11/30/12 -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), a global shipping company focusing on the transportation of dry bulk cargoes, today announced its unaudited financial and operating results for the three and the nine months ended September 30, 2012.
For the third quarter 2012, Star Bulk reported a net loss of $308.7 million mainly due to a non-cash impairment charge of $303.2 million related to the total fleet of our eight Supramax vessels and to our oldest Capesize vessel. Adjusted net loss for the third quarter 2012 amounted to $3.8 million.
Financial Highlights
(Expressed in thousands of U.S. 3 months 3 months 9 months 9 months dollars, except for ended ended ended ended daily rates and per September 30, September 30, September 30, September 30, share data) 2012 2011 2012 2011Average Number of Vessels 14.0 12.5 14.2 11.5Time Charter Equivalent Rate $15,201 $18,817 $15,560 $20,166 (TCE)Average OPEX per day per vessel $4,878 $5,682 $5,239 $5,478Net Revenue $18,417 $26,255 $68,224 $78,440Impairment Loss ($303,219) - ($303,219) -EBITDA ($297,289) $10,464 ($278,549) $39,548Adjusted EBITDA (1) $7,629 $11,918 $34,020 $41,227Net l(loss) / income ($308,677) ($2,996) ($313,137) $384Adjusted Net loss / income (1) ($3,760) ($1,542) ($568) $2,063(Loss) / earnings per share basic and ($57.15) ($0.59) ($58.09) $0.08 diluted (2)Adjusted (Loss) / earnings per share basic and diluted ($0.70) ($0.30) ($0.11) $0.46 (2)
(1) See the table at the back of this release for a reconciliation of TCE to Time Charter Revenue, EBITDA and Adjusted EBITDA to Net Income, Adjusted Net Income to Net Income and Adjusted Earnings Per Share to Earnings Per Share, the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP").
(2) Adjusted to give effect to the 15 to 1 reverse stock split that became effective on October 15, 2012.
Spyros Capralos, President and CEO of Star Bulk, commented: "Despite the already soft market for the past 4 years, this quarter has been one of the most challenging in recent shipping history. The Baltic Dry Index (BDI) for the quarter ended September 30, 2012 averaged a record low index of 846, which was lower than the previous all-time low recorded in the quarter ended December 31, 2001, which averaged 875. The exceptionally weak freight market environment has affected our revenues due to our increased spot market exposure, especially in the Supramax sector. However, our prudent strategy to hedge our Capesize fleet with first class charterers has reduced the weak market impact. Our $3.8 million adjusted loss in this quarter includes a loss of revenue of $1.5 million due to the main engine damage of the Star Polaris, which received no hire. The vessel has been repaired and re-entered her charter of $16,500 per day to our first class charterer. In the meantime, we are pursuing our claim against the shipyard.
