Star Bulk Carriers Corp. · NASDAQ:SBLK
Star Bulk Carriers — Investor Presentation (October 2014)
18 slides from Star Bulk Carriers's investor presentation, October 2014
Slide 1: Investor Presentation
NASDAQ: SBLK Investor Presentation October 2014
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: Company Milestones
Company Milestones Growing quality dry bulk fleet Fleet of 17 vessels on the water (“OTW”) and 11 fuel - efficient newbuildings (“NBs”) under order prior to merger with Oceanbulk Carriers LLC and Oceanbulk Shipping LLC (collectively “Oceanbulk”) and related transactions Merged with Oceanbulk and acq
Slide 4: Management Team
Management Team Founder, Chief Executive Officer and Director Founded Oceanbulk’s predecessors in 2012 Petros Began career as a director of Overlink Maritime from 1978-1986 Pappas Became a Managing Director of Drytank S.A. from 1986-1989 Founded Oceanbulk Maritime in 1989, operating and mana
Slide 5: World class Institutional Shareholders
World class Institutional Shareholders (1) Shareholder Base Breakdown Oaktree Capital Management L.P 57.4% One of the largest private equity firms 5.4% $91 billion assets under management Extensive involvement in shipping over the 9.3% last decade Oceanbulk group - Pappas Family 9.3% & Affiliates Mo
Slide 6: 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 fully delivered) Oceanbulk similar fleet with low Capex “ECO” Newbuildings Improved earnings environment Step 1 Step 3: Acquisition of
Slide 7: Fully Delivered Pro Forma Star Bulk Fleet
Fully Delivered Pro Forma Star Bulk Fleet Million DWT Supramax Fully delivered fleet diversified across all dry bulk segments Ultramax 620 Newcastlemax 999 5% Average age of fully delivered fleet is expected to be 6.3 years (1) Panamax 8% 2,708 881 23% 39 Capesize / Newcastlemax vessels 8% Kamsarmax
Slide 8: Diverse Fleet Covering All Sizes
Diverse Fleet Covering All Sizes On a fully delivered basis, our fleet will consist of 103 vessels with 11.9 million dwt with average age of 6.3 years (2), further cementing us as the largest U.S.-listed dry bulk company, on a dwt basis 14,000,000 103 12,000,000 97 12 12 16 10,000,000 Deadweight Ton
Slide 9: Industry Leading Owner of Dry Bulk
Industry Leading Owner of Dry Bulk 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 On The Water Fleet(1) Total Owned Drybulk Deadweight Ton 7,000 6,827 14,000 11,859 6,000 12,000 Deadweight Tons (‘000 DWT) 5,000 10,106
Slide 10: Management capabilities
Management capabilities Economies of scale from managing a larger fleet of 103 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 11: Superior Commercial Performance
Superior Commercial Performance Consistently outperformed the market from 2009 Capesize Commercial Performance (1) $40,000 $36,624 $35,000 2013 Capesize performance vs BCI: $30,000 $26,945 147% $25,000 $23,938 $23,049 $21,847 $23,108 $21,163 $20,000 $16,139 $16,370 $14,875 Q2 2014 Capesize $15,000
Slide 12: Fleet Employment Profile - Leverage to Upside
Fleet Employment Profile -Leverage to Upside Current Fleet Coverage(1) : 31% for remaining 2014 – 9% for 2015- 2% for 2016 Capesize Fleet Coverage(1) : 30% for remaining 2014 – 12% for 2015 Post Panamax/ Kamsarmax/Panamax Fleet Coverage (1) : 30% for remaining 2014 – 11% for 2015 – 4 % for 201
Slide 13: Significant Operating Leverage
Significant Operating Leverage Fleet Spot Days (1) 40,000 37,137 35,831 35,000 10,156 30,000 10,120 27,046 25,000 7,687 20,000 12,250 12,941 15,000 11,518 10,000 13,461 14,040 5,000 7,841 - FY 2015 FY 2016 FY 2017 Capesize / Newcastlemax Post Panamax/Kamsarmax/Panamax Ultramax/Supramax Change in EBI
Slide 14: Enhanced Operational Platform
Enhanced Operational Platform Ongoing cost containment without compromising quality and Average Daily OPEX efficiency of operations $7,500 Average Daily OPEX SBLK Moore Stephens Industry Average Vessel OPEX substantially reduced (~24.5%) since 2009 $7,000 $6,903 H1 2014 daily Net Cash G&A expe
Slide 15: Balance Sheet and Stable Leverage Profile
Balance Sheet and Stable Leverage Profile Total Cash (1): $ 106.3 million Total Debt (1): $ 576.3 million Net Debt (1): $ 470.0 million Smooth repayment profile for 2014-2015 Balloon payments in 2016 and 2018-2019; we will seek to refinance the former well in advance The combined entity
Slide 16: Capex funding mostly addressed
Capex funding mostly addressed Funding Gap Bridge(1) $1,600.00 $1,529.3 $219.9 Amounts in $ million $1,400.00 $596.0 $1,200.00 $1,309.4 $1,000.00 $800.00 $317.3 $600.00 $713.4 $193.1 $400.00 $396.1 $106.3 $200.00 $51.5 $203.0 0 $96.6 $148.1 Total Capex (2) Paid Committed Debt Negotiated Debt Target
Slide 17: Solid Business Strategy
Solid 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 thr
Slide 18: Thank you
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