HispanicBusiness

Other operational gain amounting to $2.0 million during the nine months ended September 30, 2012, mainly consists of non-recurring revenue of $1.4 million, which represents a settlement of a commercial claim and a gain of $0.7 million regarding a hull and machinery claim. Other operational gain totaled to $9.3 million during the nine months ended September 30, 2011 consisted of $9.0 million received from the settlement of a commercial claim and a gain of $0.3 million regarding a hull and machinery claim.

Other operational loss amounted to $0.7 million during the nine months ended September 30, 2012 representing the cash payment made by the Company to a third party pursuant to the terms of the agreement that was signed in September of 2010, to sell a 45% interest in the future proceeds related to the settlement of certain commercial claims. The expense of $0.7 million was incurred in connection to the settlement amount of $1.4 million described in other operational gain above. Other operational loss totaled $4.1 million during the nine months ended September 30, 2011, due to the payment made by the Company to a third party pursuant to the terms of the same agreement as described above. The payment of $4.1 million was made in connection to the settlement of a commercial claim in the amount of $9.0 million described in other operational gain.

Loss on sale of vessel of $3.2 million represents a loss on sale of the vessel Star Ypsilon during the nine-month period ended September 30, 2012. There was no sale of vessels during the nine- month period ended September 30, 2011.

(*) Amounts relating to variations in period-on-period comparisons shown in this section are derived from the actual numbers in the Company's books and records.

Liquidity and Capital Resources

Cash Flows
Net cash provided by operating activities for the nine months ended September 30, 2012 and 2011, was $19.5 million and $35.6 million, respectively. Cash flows generated by the operation of our fleet decreased mainly due to lower average TCE rates, (see "Summary of Selected Data" below) as a result of the decline in the prevailing freight rate environment. For the nine months ended September 30, 2012 the Company earned a daily TCE rate of $15,560 compared to a daily TCE rate of $20,166 for the nine months ended September 30, 2011.

Net cash provided by investing activities for the nine months ended September 30, 2012 was $14.1 million. Net cash used in investing activities for the nine months ended September 30, 2011 was $108.9 million. For the nine months ended September 30, 2012 net cash provided by investing activities consisted of the proceeds from sale of the Star Ypsilon amounting to $8.0 million, a net decrease of $2.2 million in restricted cash, insurance proceeds amounting to $4.0 million, and $0.1 million relating to additions to office equipment. Net cash used in investing activities for the nine months ended September 30, 2011, consisted of $29.3 million related to the acquisition of second hand Capesize vessels Star Big and Star Mega plus a cash consideration of $23.1 million paid for the acquisition of the above fair market charter rates attached to these two vessels, plus $33.3 million related to the delivery of our newbuilding vessel Star Borealis, plus installments amounting to $22.5 million related to our newbuilding vessel Star Polaris and a net increase of $1.8 million in restricted cash offset by insurance proceeds amounting to $1.1 million.