Star Bulk Carriers Corp. · NASDAQ:SBLK
Star Bulk Carriers — Investor Presentation (January 2015)
24 slides from Star Bulk Carriers's investor presentation, January 2015
Slide 1: Corporate Presentation
NASDAQ: SBLK Corporate Presentation January 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for the historical information contained herein, this presentation contains among other things, certain forward-looking statements, that involve risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans,
Slide 3: Corporate Update
Corporate Update Growing quality dry bulk fleet Largest U.S.-listed dry bulk owner in terms of fleet size and cargo carrying capacity Fleet of 62 vessels on-the-water (“OTW”) by the end of 2014 and 102 vessels on a fully delivered basis Rapid expansion in the last six months: Fleet of 17 OTW vesse
Slide 4: Investment Highlights
Investment Highlights Equity CapEx Addressed Top Tier Best-in-Class Shareholder Management Base Team Superior Largest Dry Commercial Bulk Owner Performance Healthy Dry Bulk Well-Timed Demand Fleet Expansion Diverse Fleet Profile 4
Slide 5: Best-In-Class Management Team
Best-In-Class Management Team Founded Oceanbulk’s predecessors in 2012 Petros Founded Star Bulk in 2007 Pappas Founded Oceanbulk Maritime in 1989, operating and managing more than 60 vessels Founder & CEO Managing Director of Drytank S.A. from 1986-1989 Director of Overlink Maritime from 1
Slide 6: Largest Dry Bulk Owner
Largest Dry Bulk Owner Star Bulk is expected to have the largest on-the-water and total owned fleet among U.S. listed dry bulk companies, on a dwt basis Fully-Delivered Dry Bulk Fleet (1) 11,817 Drybulk Newbuild Fleet 12,000 On the Water Fleet 10,106 10,000 5,032 8,725 Deadweight Tons (Thousand DWT)
Slide 7: Well-Timed Fleet Expansion
Well-Timed Fleet Expansion Step 1: Newbuilding programme and Secondhand acquisitions (34 vessels fully delivered) Step 2: Merger of Starbulk / Oceanbulk (69 vessels Low Point in fully delivered) Newbuild Cycle Oceanbulk similar fleet with low Capex “ECO” Step 1 Newbuildings Improved earnings environ
Slide 8: Diverse Fleet Profile
Diverse Fleet Profile Thousand DWT Fully delivered fleet diversified across all dry bulk Supramax 582 segments Ultramax Newcastlemax 999 5% 2,708 8% Average age of fully delivered fleet is expected to Panamax 23% 881 be 6.4 years (1) 8% 39 Capesize - Newcastlemax vessels Kamsarmax 14% 1,645 Fleet ve
Slide 9: Superior Commercial Performance
Superior Commercial Performance Consistently outperformed the Capesize Commercial Performance (1) market since 2009 $40,000 350% $35,000 300% 2013 Capesize performance vs $30,000 250% BCI: 147% $25,000 200% $20,000 Q3 2014 Capesize performance $15,000 150% vs BCI: 99% 100% $10,000 $26,945 $23,938
Slide 10: Top-Tier Shareholder Base
Top-Tier Shareholder Base Shareholder Base Breakdown Share 5.4% Ownership(1) Investor 9.3% Oaktree Capital Management L.P One of the largest private equity firms 57.4%(2) $91 billion assets under management Extensive involvement in shipping over the last decade Oceanbulk group - Pappas Family 27.9%
Slide 11: Market Update
Market Update
Slide 12: Fleet Growth at Low Levels for the next 2 years
Fleet Growth at Low Levels for the next 2 years Dry Bulk Fleet Development 2014 2015 2016 2017 Historical Fleet Growth: Fleet January 1st (million dwt) 724.3 758.1 786.3 812.6 Orderbook End 2014 (million dwt) 2004 – 2007 CAGR: 6.8% p.a. Spread over 3 years forward 166.1 76.8 65.3 24.1 2008 – 2010 CA
Slide 13: Demand Fundamentals Remain Strong
Demand Fundamentals Remain Strong Clarksons estimates 2015 ton mile demand at 4.3% versus Star Bulk’s net supply estimate of 3.7% which caters for a slowly improving market. With stronger vessel deliveries and weaker demand during the first half of every year versus the second half, we expect a
Slide 14: Opportunities and Risks in Dry Markets
Opportunities and Risks in Dry Markets Opportunities Combination of low interest rate environment, cheap oil and raw material prices, may boost world economy in the medium term and increase demand above expectations Cheap oil reduces transportation expenses and commodities’ CIF prices commensura
Slide 15: Company Overview
Company Overview
Slide 16: Management Capabilities
Management Capabilities Economies of scale from managing a larger fleet of 102 fully delivered vessels In-house technical and operational management Capable of supporting more than 150 vessels Operational flexibility, enhanced utilization, rigorous quality control Vessel performance monitoring dep
Slide 17: Solid Balance Sheet
Solid Balance Sheet Very strong relationships with a wide range of financial institutions, including ECAs, China EXIM and Korea EXIM Successfully raised $50m of unsecured proceeds through a Baby Bond offering in October 2014 Refinancing of the $231m bridge loan facility for the acquisition of
Slide 18: Strong Relationships with Blue Chip Charterers
Strong Relationships with Blue Chip Charterers Charterers Diverse set of dry bulk charterers Cargo owners (mining companies & grain houses) End users (steel producers and power utilities) Trading companies Ship operators Management team has longstanding relationships with many of the leading
Slide 19: Leverage to Upside - Fleet Employment Profile
Leverage to Upside - Fleet Employment Profile Diverse and high quality charterer portfolio Upstream cooperation potentials explored Flexible, spot oriented, vessel tailored employment strategy Current Fleet Coverage(1) : 13% for 2015 - 2% for 2016 Capesize Fleet Coverage(1) :13% for 2015
Slide 20: Significant Operating Leverage
Significant Operating Leverage Fleet Spot Days(1,2) 40,000 36,067 36,609 35,000 9,882 9,785 30,000 25,418 25,000 7,115 20,000 12,553 12,813 15,000 10,542 10,000 13,632 14,011 5,000 7,761 - FY 2015 FY 2016 FY 2017 Capesize / Newcastlemax Post Panamax/Kamsarmax/Panamax Handymax /Ultramax/Supramax Chan
Slide 21: Enhanced Operational Platform
Enhanced Operational Platform Ongoing cost containment without compromising quality and efficiency of operations Vessel OPEX substantially reduced (~25%) since 2009 Vessel OPEX (excluding pre-delivery expenses) for the 9M 2014 reduced by 15% versus 9M 2013 Average vessel size increased by 3%
Slide 22: NB Debt Financing Mostly Negotiated or Committed
NB Debt Financing Mostly Negotiated or Committed NB Debt Financing Update (1,2,3) Annual Vessel Financed Vessel Type Bank - Type of Financing Status Amount Tenor (Years) Amortization (1) Balloon 1 N/B Hull H1359 Newcastlemax CSSC - BBHP Committed $46.4 10.0 $2.6 $13.9 2 Hull 1372 BB (tbr Star Libra)
Slide 23: Sound Business Strategy
Sound Business Strategy Capitalize on increase in demand for dry bulk shipping Flexible Chartering Charter vessels in an active and sophisticated manner Strategy Stay spot or short-term while rates are low and start fixing medium to long-term when sentiment improves Opportunistic Expand fleet throug
Slide 24: Thank you
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