SOURCE: Star Bulk Carriers Corp.

March 11, 2008 09:50 ET

Star Bulk Announces a Further Three-Year Time Charter Agreement for Its Capesize Vessel Star Sigma

ATHENS, GREECE--(Marketwire - March 11, 2008) - Star Bulk Carriers Corp. (NASDAQ: SBLK) announced today it has agreed to a further three-year time charter for its capesize vessel Star Sigma. The three-year charter will commence in April 2009 when the current one-year time charter at a gross daily rate of USD 100,000 will expire. The three-year charter has gross daily charter average rate of $63,000 staggered as follows: USD 69,000 for the first year (April 2009-April 2010), USD 63,000 for the second year (April 2010-April 2011) and USD 57,000 for the third year (April 2011-April 2012). Star Sigma is a 1991-built Capesize vessel of 184,400 dwt. Star Bulk expects to take delivery of the Star Sigma within April 2008 at which time the one-year time charter will commence.

Akis Tsirigakis, President and CEO of Star Bulk, commented: "We are pleased to have secured further period employment for the Star Sigma at an attractive rate taking advantage of the strength of the dry bulk market. It is remarkable that the new 3-year employment was achieved on top of the one-year employment already in place, before we have even taken delivery of the vessel slated for April 2008. Our period coverage, is 100% for 2008 is now 62% for 2009. We believe that the availability of period charters of such long duration more than a year forward in time is a sign of the industry's confidence in the prospects of the dry bulk sector."

Fleet Table

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



                                                                    Time
                                     Delivery                      Charter
                               Year  to Star   Time Charter  Comm.  Rate
Vessel Name     Type     DWT   Built   (1)      Expiry (2)          (3)
------------  -------- ------- ----- --------- ------------- ----  --------

Vessels delivered to Star Bulk as of December 31, 2007

                                               Dec 15, '08-
Star Epsilon  Supramax  52,402  2001            Mar 15, '09  4.75% $ 25,550
------------  -------- ------- ----- --------- ------------- ----  --------
                                               April 2 - Jun
Star Theta    Supramax  52,425  2003            16, 2009        5% $ 32,500
------------  -------- ------- ----- --------- ------------- ----  --------
                                               Aug 24 - Nov
Star Kappa    Supramax  52,055  2001            23, 2010      2.5% $ 47,800
------------  -------- ------- ----- --------- ------------- ----  --------
                                               Feb 5 - May
Star Beta     Capesize 174,691  1993             5, 2010        5% $106,500
------------  -------- ------- ----- --------- ------------- ----  --------

Vessels delivered to Star Bulk after December 31, 2007

                                                Feb 7 - May
Star Delta    Supramax  52,434  2000             7, 2009        5% $ 25,800
------------  -------- ------- ----- --------- ------------- ----  --------

                                                Apr 12, 2008
                                                Mar 12 - Jun    5% $ 30,300
Star Zeta     Supramax  52,994  2003             12, 2013       5% $ 38,750
------------  -------- ------- ----- --------- ------------- ----  --------
                                                Jan 4 - Feb
Star Gamma    Supramax  53,098  2002             14, 2009       0% $ 28,500
------------  -------- ------- ----- --------- ------------- ----  --------
                                                Jul 5 - Oct
Star Alpha    Capesize 175,075  1992             5, 2009        5% $ 47,500
------------  -------- ------- ----- --------- ------------- ----  --------
                                                March 7 - April
Star Iota      Panamax  78,585  1983            17, 2009        0% $ 18,000
------------  -------- ------- ----- --------- ------------- ----  --------

Vessels to be delivered

                                                 April 2009  1.25% $100,000
                                                 April 2010     6% $ 69,000
                                                 April 2011     6% $ 63,000
Star Sigma    Capesize 184,400  1991 April 2008  April 2012     6% $ 57,000
------------  -------- ------- ----- ---------- ------------ ----  --------
Grand Total         10 927,759
------------  -------- ------- ----- ---------- ------------ ----  --------


(1) Indicates expected delivery date to Star Bulk.
(2) Range represents the earliest and latest expiry dates allowed by the
    charter party.  Charterers have the right to add off-hire days, if
    any, that occurred during the charter period.
(3) 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 nine dry bulk carriers, plus definitive agreement to acquire one further dry bulk carrier. The total fleet consists of three Capesize, one Panamax and six Supramax dry bulk vessels with an average age of approximately 11 years and a combined cargo carrying capacity of 927,759 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:
    Akis Tsirigakis
    President and CEO
    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