SOURCE: Star Bulk Carriers Corp.

February 26, 2008 16:06 ET

Star Bulk Carriers Corp. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2007

ATHENS, GREECE--(Marketwire - February 26, 2008) - Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), a global shipping company focusing on transportation of dry bulk cargoes, today reported net income of $1.61 million for the fourth quarter of 2007 compared to net income of $0.62 million for the fourth quarter of 2006.

The Company completed its merger with and into Star Maritime Acquisition Corp., a special purpose acquisition company, with the Company as the surviving corporation, on November 30, 2007. The Company took delivery of four vessels and commenced operations in the fourth quarter 2007. Voyage and time charter revenues amounted to $3.69 million for the fourth quarter of 2007, compared to nil in the fourth quarter of 2006.

Net income for the full year 2007 amounted to $3.41 million, compared to net income of $2.98 million for 2006. Voyage and time charter revenues for 2007 are the same as voyage and time charter revenues for the fourth quarter 2007 referenced above.

Earnings per share, basic for the three months ended December 31, 2007 was $0.05, based on a weighted average of 33,155,178 shares outstanding, basic in the fourth quarter of 2007.

Earnings per share, basic for the year ended December 31, 2007 was $0.11, based on a weighted average of 30,067,470 shares outstanding, basic at December 31, 2007.

Akis Tsirigakis, President and CEO of Star Bulk Carriers, commented: "We are pleased to announce our first financial results since we became an operating company as of the completion of our Redomiciliation Merger on November 30, 2007. In a short period of time we have been able to achieve a number of important objectives we set for ourselves including the delivery of four vessels during the month of December thereby allowing us to realize initial cash flow from operations. We look forward to increased cash flows as of the first quarter of 2008 when we will have an operational fleet of nine vessels with a tenth scheduled for delivery in May 2008.

"In addition to the eight vessels we had agreed to acquire as part of our initial fleet we acquired an additional two vessels thereby expanding our revenue and profit capability. In this context, we acquired and have taken delivery of the Star Kappa, a 2001 Supramax bulk carrier and have a definitive agreement to acquire the M/V Star Sigma, a 1991 built Capesize vessel, which we expect to take delivery of during the second quarter 2008, bringing our total fleet to ten vessels. Furthermore, all of our vessels are secured under time charters, and we have thus contracted 100% of our fleet days for 2008 securing a healthy revenue stream which can support our growth objectives and our dividend policy.

"We believe Star Bulk Carriers is strategically positioned to take full advantage of the positive fundamentals in the dry bulk sector. Star Bulk Carriers has significant potential for further growth due to our under-leveraged balance sheet and our strong and secure cash flow based on our charter coverage."

Fleet Employment Profile (As of February 25, 2008)
Currently Star Bulk's fleet is employed as follows:

                                                                   Time
Vessel                         Year   Delivery    Time Charter    Charter
 Name        Type     DWT     Built    to Star     Expiry (2)    Rate (3)
---------- -------- -------- -------- ---------  --------------- ----------
Vessels delivered to Star Bulk as of December 31, 2007
---------- -------- -------- -------- ---------  --------------- ----------
Star                                   Dec. 3,   Dec. 15, 2008 -
 Epsilon   Supramax   52,402     2001    2007    Mar. 15, 2009   $   25,550
---------- -------- -------- -------- ---------  --------------- ----------
                                       Dec. 6,   Apr. 2, 2009 -
Star Theta Supramax   52,425     2003    2007    Jun. 16, 2009   $   32,500
---------- -------- -------- -------- ---------  --------------- ----------
                                      Dec. 14,   Aug. 24, 2010 -
Star Kappa Supramax   52,055     2001    2007    Nov. 23,  2010  $   47,800
---------- -------- -------- -------- ---------  --------------- ----------
                                      Dec. 28,   Feb. 5, 2010 -
Star Beta  Capesize  174,691     1993    2007    May. 5, 2010    $  106,500
---------- -------- -------- -------- ---------  --------------- ----------
Vessels delivered to Star Bulk after December 31, 2007
---------- -------- -------- -------- ---------  --------------- ----------
                                       Jan. 2,   Feb. 7, 2009 -
Star Delta Supramax   52,434     2000   2008     May 7, 2009    $   25,800
---------- -------- -------- -------- ---------  --------------- ----------
                                                  Apr. 12, 2008
                                                      (1)
                                       Jan. 2,    Mar. 12,2013 - $   30,500
Star Zeta  Supramax   52,994     2003   2008      Jun. 12, 2013  $   38,750
---------- -------- -------- -------- ---------  --------------- ----------
                                       Jan. 4,   Jan. 4, 2009 -
Star Gamma Supramax   53,098     2002   2008     Feb. 14, 2009   $   28,500
---------- -------- -------- -------- ---------  --------------- ----------
                                       Jan. 9,   Jul. 5, 2009 -
Star Alpha Capesize  175,075     1992    2008    Oct. 5, 2009    $   47,500
---------- -------- -------- -------- ---------  --------------- ----------
Vessels to be delivered
---------- -------- -------- -------- ---------  --------------- ----------
                                         March,     Feb. 2009 -
Star Iota   Panamax   78,585     1983   2008 (1)   Apr. 2009     $   18,000
---------- -------- -------- -------- ---------  --------------- ----------
                                       May. 2008
Star Sigma Capesize  184,000     1991        (1)    Mar. 2009    $  100,000
---------- -------- -------- -------- ---------  --------------- ----------


(1)  Indicates expected delivery/redelivery date to Star Bulk.
(2)  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.


Summary of Selected Financial & Other Data

                              Three Months Ended         Year Ended
                                December 31,             December 31,
                               2007        2006        2007        2006
                            ----------  ----------- ----------  -----------
                            (unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in
 thousands of US Dollars):
  Voyage and time charter
   revenues                 $    3,688  $         0 $    3,688  $         0
  Voyage expenses                   98            0         98            0
  Vessel operating expenses        744            0        744            0
  Net income                     1,613          617      3,410        2,978
FLEET DATA
  Average number of vessels
   (1)                            0.84            0       0.21            0
  Number of vessels               4.00            0       4.00            0
  Average age of
   operational fleet (in
   years) (2)                      8.0            0        8.0            0
  Ownership days (3)             77.48            0      77.48            0
  Voyage days (4)                68.71            0      68.71            0
  Fleet utilization (5)          88.68%          na      88.68%          na


(1) Average number of vessels is the number of vessels that constituted our
    fleet for the relevant period, as measured by the sum of the number of
    days each vessel was a part of our fleet during the period divided by
    the number of calendar days in that period.
(2) Average age of operational fleet is calculated as at December 31, 2007.
(3) Ownership days are the total calendar days each vessel in the fleet was
    owned by Star Bulk for the relevant period.
(4) Voyage days are the total days the vessels were in our possession for
    the relevant period net of any off-hire days. Off-hire days include the
    days a vessel is idle from the time of the transfer of ownership until
    the vessel is readied to sail under the new crew/management following
    the issuance of new certificates.
(5) Fleet utilization is calculated by dividing voyage days by ownership
    days for the relevant period.

Dividend

The board of directors declared a cash dividend on its common stock of $0.10 per share in respect of the fourth quarter 2007. The Company previously announced that it intended to pay a partial dividend per share based on a dividend of $0.325 per share for its first full operating quarter in 2008 pro rated for the number of fleet operating days in the fourth quarter of 2007. Such pro-rated dividend would be equal to $0.03 per share. The board of directors determined to increase the Company's initial dividend to $0.10 per share. This cash dividend will be payable on or about February 29, 2008 to shareholders of record as of February 25, 2008. The Company further announced that it adjusted upward from $0.325 to $0.35 per share the minimum dividend that the Company expects to declare in respect of the first quarter of 2008.

The Company had 42,516,433 shares of common stock outstanding as of December 31, 2007.

Conference Call details:

Star Bulk's management team will host a conference call tomorrow, Wednesday, February 27, 2008, at 08:30 a.m., Eastern Standard Time (EST) to discuss the Company's financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote "StarBulk."

In case of any problem with the above numbers, please dial 1(866) 223-0615 (from the US), 0(800) 694-1503 (from the UK) or +(44) (0) 1452 586-513 (from outside the US). Please quote "StarBulk."

A replay of the conference call will be available until March 4, 2008. The United States replay number is 1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number (+44) (0) 1452 55 00 00 and the access code required for the replay is: 3128607#.

Slides and audio webcast:

There will also be a simultaneous live webcast over the Internet, through the Star Bulk website (www.starbulk.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

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 eight dry bulk carriers, plus definitive agreements to acquire a further two dry bulk carriers. 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 approximately 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 its 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.

                         STAR BULK CARRIERS CORP.

      Expressed in thousands of U.S. Dollars, except number of shares

                CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                          Three Months Ended            Year Ended
                               December 31,             December 31,
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)
REVENUES:
Voyage and time charter
 revenues                     3,688            0        3,688            0

EXPENSES:
  Voyage and Other
   Expenses                   7,549          553        9,255        1,211


                        -----------  -----------  -----------  -----------
  Operating income /
   (loss)                    (3,861)        (553)      (5,567)      (1,211)
                        -----------  -----------  -----------  -----------

OTHER INCOME
 (EXPENSES):
  Interest and finance
   costs                        (45)           0          (45)           0
  Interest Income             5,519        1,120        9,022        4,396

  Income taxes                    0           50            0         (207)

Net Income                    1,613          617        3,410        2,978
                        ===========  ===========  ===========  ===========

Earnings per common
 share, basic           $      0.05  $      0.02  $      0.11  $      0.10
                        ===========  ===========  ===========  ===========

Weighted average number
 of common shares,
 basic                   33,155,178   29,026,924   30,067,470   29,026,924
                        ===========  ===========  ===========  ===========

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
    E-mail: ir@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