Star Bulk Carriers (SBLK) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $106 million, with adjusted net income of $89 million and adjusted EBITDA of $153 million; a $0.70 per share dividend was declared.

• Completed the Eagle Bulk merger in April 2024, integrating operations and targeting $50 million in synergies by 2025.

• Fleet expanded to 159 vessels, including newbuilds, with 10 vessel sales in 2024 for $180 million gross proceeds.

• Over $1.25 billion in dividends paid since 2021, with a full payout policy and regular share buybacks totaling $423 million.

• Net profit for Q2 2024 more than doubled year-over-year, reflecting strong market conditions and successful integration.

Financial highlights

• Q2 2024 TCE rate was $19,268 per vessel per day; TCE less OPEX and G&A was $12,578 per day.

• Voyage revenues for Q2 2024 were $352.9 million, up from $238.7 million year-over-year.

• Net cash from operating activities was $143 million in Q2 2024, with total liquidity at $516 million and total debt at $1.38 billion.

• Fully diluted share count at 118,825,307.

• Earnings per share (diluted) for Q2 2024 was $0.93, compared to $0.43 in Q2 2023.

Outlook and guidance

• Management expects a strong dry bulk market in H2 2024, supported by slow fleet growth, geopolitical disruptions, and robust commodity trades.

• $50 million synergy target from Eagle merger expected to be fully realized by 2025, with further cost and G&A reductions anticipated.

• CAPEX focused on sustainable shipping, with ESD installations and telemetry projects underway; newbuildings to be delivered through 2026.