HispanicBusiness

For the quarter ended September 30, 2012, voyage expenses decreased by $2.5 million to $3.4 million compared to $5.9 million for the quarter ended September 30, 2011. The decrease is mainly due to voyage expenses of $4.5 million related to chartering-in a third party vessel to serve a shipment under a Contract of Affreightment (COA) recorded in the third quarter of 2011. There was no corresponding expense during the same period in 2012. During the three months ended September 30, 2012, one of our vessels was under a voyage charter agreement, which resulted in an increase in voyage expenses of $2.1 million due to the fact that the Company was obligated to pay for bunkers. None of our vessels were under voyage charter agreements that required the Company to pay for bunkers during the three months ended September 30, 2011.

For the quarter ended September 30, 2012, vessel operating expenses totaled $6.3 million compared to $6.5 million for the same period of 2011. The decrease is mainly due to improvements in our operational efficiency which resulted in a decrease in daily operating expenses per vessel to $4,878 for the quarter ended September 30, 2012 compared to $5,682 for the same period in 2011.

For the quarter ended September 30, 2012 dry-docking expenses totaled $2.0 million compared to $0.2 million for the same period in 2011. The amount of $2.0 million for the quarter ended September 30, 2012 consists of $1.7 million attributable to the dry-docking of one of our Capesize vessels, Star Mega, which underwent a dry-docking survey in late June 2012, and, the remaining amount is attributable to the dry-docking of one of our Supramax vessels, Star Cosmo, which underwent a dry-docking survey in late September 2012.

Even though we had an increase in the number of vessels that operated during the three month period ended September 30, 2012 compared to the same period in 2011, depreciation expense decreased to $9.5 million for the quarter ended September 30, 2012 compared to $12.7 million for the quarter ended September 30, 2011. Decrease in depreciation expense is mainly due to reduced depreciable value of our oldest Capesize vessel, Star Sigma, after the related impairment loss was recognized as of December 31, 2011 and due to the sale of the other oldest Capesize vessel, Star Ypsilon, in March 2012.

General and administrative expenses during the quarter ended September 30, 2012 decreased to $2.0 million compared to $3.0 million during the quarter ended September 30, 2011. This decrease is mainly due to lower stock based compensation expenses of $0.5 million in the third quarter of 2012 compared to the same period in 2011 and due to the fact that general and administrative expenses for the quarter ended September 30, 2011, included a non- recurring severance payment of $0.7 million to the former Chief Financial Officer (CFO), who resigned as our CFO and from our Board of Directors on August 31, 2011, which was payable pursuant to the terms of his employment and consultancy agreement. Our general and administrative expenses decreased during the quarter ended September 30, 2012 compared to the same period in 2011 even though our number of employees increased during the period as a result of the growth of our fleet.

During the quarter ended September 30, 2012, we recorded an impairment loss of $303.2 million in the book value of our eight Supramax vessels and one of our oldest Capesize vessels, Star Sigma in order the carrying values of the respective vessels to reflect their fair market values.