SOURCE: Star Bulk Carriers Corp.

December 04, 2007 08:30 ET

Star Bulk Takes Delivery of Its First Vessel and Announces a Two-Year Time Charter Agreement for One of Its Capesize Vessels

NEW YORK, NY--(Marketwire - December 4, 2007) - Star Bulk Carriers Corp. (NASDAQ: SBLK), announced today that that it has taken delivery of the M/V Star Epsilon (ex G Duckling), a Supramax vessel of 52,402 dwt built in 2001 in Japan. Star Epsilon is the first vessel to be delivered to the Company following the completion of the Redomiciliation Merger on November 30, 2007. Star Epsilon has a pre-existing Time Charter employment contract attached at a gross daily rate of USD 25,550 with earliest and latest redelivery dates of December 15, 2008 and March 15, 2009, respectively.

The Company also announced that the M/V B Duckling (to be renamed Star Beta) has been committed to a two-year time charter agreement at a gross daily rate of USD 106,500. The charter will commence in February 2008. Star Beta is a 1993-built Capesize vessel of 174,691 dwt.

Akis Tsirigakis, President and CEO of Star Bulk commented: "We are pleased to have taken delivery of our first vessel, the M/V Star Epsilon, which marks a significant milestone for our Company. We are also pleased to have secured period employment for the Capesize Star Beta at an attractive rate taking advantage of the current strength of the dry bulk market."

The following table sets forth summary information regarding Star Bulk's initial fleet.

                                                  Earliest Latest    Time
                                    Year  Charter delivery re-del- Charter
Vessel Name          Type     DWT   Built  Type     (1)    ivery   rate (2)
                   -------- ------- ----- ------- ------- ------- ---------
Star Alpha (ex. A                                  Jul 5,  Oct 5,
 Duckling)         Capesize 175,075  1992      TC   2009    2009  $  47,500
Star Beta (ex. B                                   Jan 1, Mar 31,
 Duckling)         Capesize 174,691  1993      TC   2010    2010  $ 106,500
Star Gamma (ex. C                                 Dec 15, Jan 25,
 Duckling)         Supramax  53,098  2002      TC   2008    2009  $  28,500
Star Delta (ex. F                                  Feb 7,  May 7,
 Duckling)         Supramax  52,434  2000      TC   2009    2009  $  25,800
Star Epsilon (ex.                                 Dec 15, Mar 15,
 G Duckling)       Supramax  52,402  2001      TC   2008    2009  $  25,550
Star Zeta (ex. I                                  Dec 29, Mar 28,
 Duckling)         Supramax  52,994  2003      TC   2007    2008  $  30,500
Star Theta (ex. J                                 Apr 16, Jun 16,
 Duckling)         Supramax  52,425  2003      TC   2009    2009  $  32,500
Star Iota (ex.                                    Nov 25, Jan 15,
 Momy Duckling)     Panamax  78,585  1983      TC   2008    2009  $  18,000
Total/Average               691,704  1997

(1) Represents the earliest redelivery date allowed by the charter party
(2) Represents the gross daily rate

About Star Bulk

Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and is headquartered in Athens, Greece. Its common stock and warrants trade on the NASDAQ Global Market under the symbols "SBLK" and "SBLKW" respectively. Star Bulk has definitive agreements to acquire a fleet of eight drybulk carriers from subsidiaries of TMT Co, Ltd., Taiwan (TMT). Star Bulk is scheduled to take delivery of eight dry bulk carriers, consisting of two Capesize, one Panamax and five Supramax dry bulk carriers with an average age of approximately 10 years and a combined cargo carrying capacity of 691,213 deadweight tons from certain wholly owned subsidiaries of TMT, a global shipping company with management headquarters in Taiwan. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, phosphate and steel products.

Forward-Looking Statements

The information in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding: (1) the delivery and operation of assets of Star Bulk; (2) Star Bulk's future operating or financial results; (3) future, pending or recent acquisitions, business strategy, areas of possible expansion, and expected capital spending or operating expenses; (4) drybulk market trends, including charter rates and factors affecting vessel supply and demand; and (5) other statements identified by words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," or words of similar meaning.

Such forward-looking statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Star Bulk's examination of historical operating trends, data contained in their records and other data available from third parties. Although Star Bulk believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond their control, Star Bulk cannot assure you that Star Bulk will achieve or accomplish these expectations, beliefs or projections. Important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of a seller to deliver one or more vessels, the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Star Bulk's operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. Additional factors that could cause Star Bulk's results to differ materially from those described in the forward-looking statements can be found in Star Bulk's Registration Statement on Form F-1/F-4 and reports on Form 6-K filed with the Securities and Exchange Commission (the "SEC") and available at the SEC's Internet site (http://www.sec.gov). The information set forth herein speaks only as of the date hereof, and Star Bulk disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

Contact Information

  • Company:
    Akis Tsirigakis
    President and CEO
    Star Bulk Carriers Corp.
    Aethrion Center, Suite B-34
    40 Ag. Konstantinou
    Maroussi 15124
    Athens, Greece
    www.starbulk.com

    Investor Relations / Financial Media:
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue, Suite 1536
    New York, NY 10169
    Tel. (212) 661-7566
    E-mail: nbornozis@capitallink.com
    www.capitallink.com