Star Bulk Carriers Corp. · NASDAQ:SBLK
Star Bulk Carriers — Investor Presentation (May 2015)
25 slides from Star Bulk Carriers's investor presentation, May 2015
Slide 1: Corporate Presentation
NASDAQ: SBLK Corporate Presentation May 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: The Offering
The Offering Issuer: Star Bulk Carriers Corp. Form: Registered Direct Common Equity Offering Target proceeds: USD [150] million Price: USD [●] per share Use of Proceeds: Partly fund existing newbuilding program and general corporate purposes Allocation: At the Company’s discretion, taking into accou
Slide 4: Executive Overview
Executive Overview Strengthening Balance Sheet to Secure Financial Flexibility Through the Bottom of the Drybulk Cycle Strengthening Starbulk’s newbuilding program is currently fully funded Balance Sheet The Company wants to proactively strengthen its balance sheet to provide additional financia
Slide 5: Fully Funded Newbuilding Program
Fully Funded Newbuilding Program Newbuilding Commitments Covered by Cash and Committed / Negotiated Debt Remaining CAPEX - 27 Newbuilding Vessels (1) $ 951.5 million Total Cash (including minimum liquidity amounts) – April 30, 2015: $ 197.0 million Committed debt for 25 Newbuildings (2) : $ 76
Slide 6: Company Profile
Company Profile Transformational Year for the Company Completed the merger with Oceanbulk and the acquisition of the 34 vessel fleet from Excel Fleet of 70 vessels on-the-water (“OTW”) as of April 30, 2015 and 97 vessels(1) on a fully delivered basis Disposal of older assets not fitting with our fle
Slide 7: Consistently Superior Commercial Performance
Consistently Superior Commercial Performance Consistently outperformed $20,000 $17,560 FY 2014 Chartering Over Performance(1) the market since 2010 $18,000 $16,000 $13,833 $14,000 Established Capesize $12,000 $11,211 Chartering Ltd., a platform $10,000 $9,960 $9,018 to improve efficiency of $7,760 $
Slide 8: 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 Agreed long-term strategic partnership with major miner for the employm
Slide 9: Diverse Fleet Profile
Diverse Fleet Profile Fully delivered fleet diversified across all dry bulk segments Fleet versatility allows us to serve a variety of charterers and cargoes 100 97 11 85 80 11 16 70 (1) 12 62 11 8 60 8 # of OTW Vessels 12 7 20 2 8 9 20 40 4 20 4 18 26 4 20 4 25 19 17 12 1 5 0 Q4 2014 Current Q4 201
Slide 10: Flexible Chartering Strategy
Flexible Chartering Strategy Current 1-Year time charter rates for Capesize and Capesize / Panamax 1 Year TC (2009 – 2015) Panamax vessels are at $55,000 historical lows which is a reflection of: $50,000 Weak spot market $45,000 Oversupply of vessels $40,000 available for period charter $35,000
Slide 11: Continued Operational Excellence
Continued Operational Excellence Continued focus on cost containment without compromising safety and quality of operations Over 84% of managed vessels have a 5-star Rightship rating Vessel OPEX (excluding pre-delivery expenses) for FY 2014 reduced by 14% YoY Vessel OPEX has been reduced cons
Slide 12: Balance Sheet and Stable Leverage Profile
Balance Sheet and Stable Leverage Profile Total Cash (including minimum liquidity amounts)(1) : $ 197.0 million Total Debt & Capital lease obligations (1): $ 954.0 million Net Debt (1): $ 757.0 million Demonstrated access to public equity and debt capital markets Smoother principal repayme
Slide 13: Plan of Action – Tackling a Challenging Market
Plan of Action – Tackling a Challenging Market Revenue Formed Capesize Chartering Ltd. to increase efficiency in capesize trading. Aggressively reduced our operating cost (down 14% YoY) - One of the lowest cost operators in the dry bulk space. Expenses Cash G&A expenses per vessel to decrease as we
Slide 14: Market Update
Market Update
Slide 15: Supply Update
Supply Update 2015 – 2017 fleet growth revised downwards Projected between 2.0% and 3.5% per annum Record high demolition activity: 9.0 mil. dwt during Q1 2015 Additional 5.0 mil. dwt reported as sold for demolition Conversions, Cancellations and Slippage expected to affect 2015/16 delivery
Slide 16: Dry bulk Demand
Dry bulk Demand China’s industrial destocking since 3rd Quarter 2014 has affected global trade across all dry bulk major cargoes Clarksons March 2015 dry bulk growth outlook stands at 3.4% for full 2015 2015 projected to be transition year for demand growth with lower growth during first half
Slide 17: Potential Market Upside Drivers
Potential Market Upside Drivers LONG TERM (2016 / 2017) Bottoming out of raw material prices may trigger purchases. Inefficient producers in China closing down and replaced by imports. Global GDPs stimulus due to low oil, raw material prices and low interest rates. Chinese government incenti
Slide 18: Appendix
® Star Bulk
Slide 19: 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 to 1989 Director of Overlink Maritime fro
Slide 20: Committed Debt in Place for NB Capex Program
Committed Debt in Place for NB Capex Program 25 of 27 NB vessels NB Debt Financing Update have committed Delivery Tenor Annual financing in place Vessel Financed Vessel Type Date Bank - Type of Financing Status Amount (Years) Amortization (1) Balloon totalling $765 million 1 HN NE167 (tbr Goliath) N
Slide 21: Fleet Employment Profile
Fleet Employment Profile Fleet Spot Days 40,000 34,917 33,886 35,000 30,000 9,785 9,628 25,000 20,000 11,486 11,143 14,686 15,000 4,603 10,000 5,559 13,115 13,646 5,000 4,524 - FY 2015 (1) FY 2016 FY 2017 Capesize / Newcastlemax Post Panamax/Kamsarmax/Panamax Handymax /Ultramax/Supramax 2015 2016 Ve
Slide 22: Income Statement 4th Quarter 2014
Income Statement 4th Quarter 2014 (in $000's) Oct 1 - Non-cash Adjusted Oct 1 - Adjusted Oct 1 - Dec 31, 2014 Adjustments Dec 31, 2014 Dec 31, 2013 REVENUES: 65,650 1,582 67,232 17,950 EXPENSES: Voyage expenses (21,671) 0 (21,671) (669) Vessel operating expenses (21,967) 0 (21,967) (6,568) Drydockin
Slide 23: Income Statement FY 2014
Income Statement FY 2014 (in $000's) Jan 1 - Non-cash Adjusted Jan 1 - Adjusted Jan 1 - Dec 31, 2014 Adjustments Dec 31, 2014 Dec 31, 2013 REVENUES: 147,387 6,113 153,500 76,246 EXPENSES: Voyage expenses (42,341) 0 (42,341) (7,549) Vessel operating expenses (53,096) 0 (53,096) (27,087) Drydocking ex
Slide 24: Balance Sheet as of December 31, 2014
Balance Sheet as of December 31, 2014 (in $ '000s) Dec 31, 2014 Dec 31, 2013 (unaudited) (audited) ASSETS Cash and restricted cash (current and non-current) 99,972 56,030 Other current assets 45,078 8,269 Fixed assets, net 1,441,851 326,674 Long-term investment 634 - Advances for vessels under const
Slide 25: Thank you
NASDAQ: SBLK Thank you
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