Star Bulk Announces Agreements to Construct Two 180,000 DWT Capesize & Two
60,000 DWT Ultramax Fuel Efficient Newbuildings and New
Employments for Part of Its Fleet
ATHENS, GREECE -- (Marketwired) -- 07/11/13 -- Star Bulk Carriers
Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), today announced
that on July 5, 2013 the Company has entered into agreements with
Shanghai Waigaoqiao Shipbuilding Co. Ltd. shipyard for the
construction of two 180,000 DWT eco-type, fuel efficient Capesize
drybulk vessels to be delivered in Q4 2015 and Q1 2016, respectively.
In addition, the Company has entered into letters of intent, which
are subject to the negotiation and execution of definitive
documentation, with a major Japanese shipyard for the construction of
two 60,000 DWT eco-type, fuel efficient Ultramax drybulk vessels to
be delivered within 2015. The aggregate purchase price of the four
newbuilding vessels is approximately $151.0 million.
The Company also announced that it received a letter from the
receivers of STX Pan Ocean Co. Ltd., or STX, terminating the charter
agreement for the vessel, Star Borealis, effective immediately.
Currently, STX owes the Company approximately USD $653,000. The
Company intends to vigorously pursue all amounts owed to it under the
charter agreement, including any related damages caused by the
termination of the charterparty, under the STX rehabilitation
proceedings, which have commenced in Korea. Under the STX charter,
this vessel earned a daily net time charter rate of USD $24,255. The
Company has re-employed the vessel on a voyage charter at a daily
time charter equivalent of approximately USD $27,000.
Additionally, the Company announced that it has chartered two of its
Supramax vessels with major international companies; the Star Gamma
is chartered for approximately one year at a gross daily time charter
rate of USD $9,400 and the Star Omicron is chartered for minimum
three months up to a maximum of five months at a gross daily time
charter rate of USD $10,750.
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 which include bauxite, fertilizers and
l products. Star Bulk was incorporated in the Marshall Islands on
December 13, 2006 and maintains executive offices in Athens, Greece.
Its common stock trades on the Nasdaq Global Market under the symbol
"SBLK". Currently, Star Bulk has an operating fleet of thirteen dry
bulk carriers. The total fleet consists of five Capesize and eight
Supramax dry bulk vessels with a combined cargo carrying capacity of
1,290,602 deadweight tons. The average age of our current operating
fleet is approximately 10.5 years. Additionally, we have four
third-party dry bulk vessels under our management, consisting of one
Capesize vessel, two Supramax vessels and one Panamax vessel and we
have been sub-contracted for certain management services, including
crewing, purchasing and insurances, for six product tankers. The
total combined cargo carrying capacity of these vessels amounts to
634,729 deadweight tons.
Matters discussed in this press release
may constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to provide
prospective information about their business. Forward-looking
statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The words "believe," "anticipate," "intends,"
"estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, examination by the
Company's management of historical operating trends, data contained
in its records and other data available from third parties. Although
the Company 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 the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections.
In addition to these important factors, other important factors that,
in the Company's view, could cause actual results to differ
materially from those discussed in the forward-looking statements
include the strength of world economies and currencies, general
market conditions, including fluctuations in charter rates and vessel
values, changes in demand for dry bulk shipping capacity, changes in
the Company's operating expenses, including bunker prices, drydocking
and insurance costs, the market for the Company's vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption
of shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other factors. Please see
our filings with the Securities and Exchange Commission for a more
complete discussion of these and other risks and uncertainties. The
information set forth herein speaks only as of the date hereof, and
the Company 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.
c/o Star Bulk Management Inc.
40 Ag. Konstantinou Av.
Investor Relations / Financial Media:
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
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