SOURCE: Star Bulk Carriers Corp.

May 06, 2008 09:53 ET

Star Bulk Agrees to Sell Its Panamax 'Star Iota,' the Oldest Vessel in Its Fleet

ATHENS, GREECE--(Marketwire - May 6, 2008) - Star Bulk Carriers Corp. (NASDAQ: SBLK) announced today that the Company has entered into an agreement to sell the Star Iota a Panamax vessel of 78,585 dwt built in 1983 for $18.35 million with the expected delivery to its buyers for June/July 2008. The vessel has been sold with her existing one-year time charter attached, at a net daily rate of USD 18,000.

Akis Tsirigakis, President and CEO of Star Bulk commented: "We are pleased that by selling our oldest asset we are able to reduce the average age of the fleet to about 8.9 years which is about 4.3 years below the industry average. The price we were able to sell the Star Iota at is considered attractive for a 25-year old vessel with a time charter substantially below current market levels.

"Following the sale of the Star Iota, the fleet operating days will be 100%, 84% and 58% contracted for 2008, 2009 and 2010 respectively."

Fleet Table

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

                                                                   Time
                                          Year    Time Charter    Charter
Vessel Name                Type     DWT   Built    Expiry (1)    Rate (2)
                         -------- ------- ------ --------------- ----------

Capesize Fleet
                                                 Jul 5  - Oct 5,
Star Alpha               Capesize 175,075   1992 2009            $   47,500
                         -------- ------- ------ --------------- ----------
                                                 Feb 12 - May 2,
Star Beta                Capesize 174,691   1993 2010            $  106,500
                         -------- ------- ------ --------------- ----------
                                                 Mar 1 - Mar 31, $  100,000
                                                 2009
                                                 Mar 2010        $   69,000
                                                 Mar 2011        $   63,000
Star Sigma               Capesize 184,400   1991 Mar - Aug 2012  $   57,000
                         -------- ------- ------ --------------- ----------

Supramax Fleet
                                                 Jan 4 - Feb 14, $   28,500
                                                 2009
                                                 Feb 2010        $   45,000
                                                 Feb 2011        $   38,000
Star Gamma               Supramax  53,098   2002 Jan - Mar 2012  $   31,000
                         -------- ------- ------ --------------- ----------
                                                 Feb 7 - May 7,
Star Delta               Supramax  52,434   2000 2009            $   25,800
                         -------- ------- ------ --------------- ----------
                                                 Dec 15, ’08-
                                                 Mar 15, ’09     $   25,550
                                                 Feb 2014 -
Star Epsilon             Supramax  52,402   2001 May 2014        $   32,400
                         -------- ------- ------ --------------- ----------
                                                 May 2008        $   65,000
                                                 Apr 2011 -
Star Zeta                Supramax  52,994   2003 Jul 2011        $   42,500
                         -------- ------- ------ --------------- ----------
                                                 April 2 -
Star Theta               Supramax  52,425   2003 Jun 16, 2009    $   32,500
                         -------- ------- ------ --------------- ----------
                                                 Aug 24 -
Star Kappa               Supramax  52,055   2001 Nov 23,  2010   $   47,800
                         -------- ------- ------ --------------- ----------
Star Omicron             Supramax  53,489   2005 Feb - May 2011  $   43,000
                         -------- ------- ------ --------------- ----------
Grand Total                    10 903,063
                         -------- ------- ------ --------------- ----------

Sold Vessels - To be Delivered to Buyers
                                                 Mar 7 - Apr 17,
Star Iota                 Panamax  78,585   1983 2009            $   18,000
                         -------- ------- ------ --------------- ----------

(1) Range represents the earliest and latest expiry dates allowed by the
charter party. Charterers have the right to add off-hire days, if any,
which occurred during the charter period.
(2) Represents the gross daily rate

About Star Bulk

Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's vessels transport major bulks, which include iron ore, coal and grain and minor bulks such as bauxite, fertilizers and steel products. 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. Currently, Star Bulk has an operating fleet of eleven dry bulk carriers, plus definitive agreement to sell its Panamax dry bulk carrier. The total fleet consists of three Capesize, one Panamax and seven Supramax dry bulk vessels with an average age of approximately 10 years and a combined cargo carrying capacity of 981,648 deadweight tons.

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

  • Contacts:
    Company:
    George Syllantavos
    Chief Financial Officer
    Star Bulk Carriers Corp.
    Aethrion Center, Suite B-34
    40 Ag. Konstantinou
    Maroussi 15124
    Athens, Greece
    E-mail: ir@starbulk.com
    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