Form 20-F ☒
|
|
Form 40-F ☐
|
• |
general dry bulk shipping market conditions, including fluctuations in charter rates and vessel values;
|
• |
the strength of world economies;
|
• |
the stability of Europe and the Euro;
|
• |
fluctuations in interest rates and foreign exchange rates;
|
• |
changes in demand in the dry bulk shipping industry, including the market for our vessels;
|
• |
changes in our operating expenses, including bunker prices, dry docking and insurance costs;
|
• |
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;
|
• |
the availability of financing and refinancing;
|
• |
our ability to meet requirements for additional capital and financing to grow our business;
|
• |
the impact of our indebtedness and the compliance with the covenants included in our debt agreements;
|
• |
vessel breakdowns and instances of off-hire;
|
• |
risks associated with vessel construction;
|
• |
potential exposure or loss from investment in derivative instruments;
|
• |
potential conflicts of interest involving our Chief Executive Officer, his family and other members of our senior management;
|
• |
our ability to complete acquisition transactions as and when planned; and
|
• |
the risk factors and other factors referred to in the Company’s reports filed with or furnished to the SEC.
|
COMPANY NAME
|
|||
By:
|
/s/ Simos Spyrou
|
||
Name:
|
Simos Spyrou
|
||
Title:
|
Co-Chief Financial Officer
|
Exhibit
Number
|
Description
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations and our unaudited interim condensed consolidated financial statements of the Company as of and for the six months ended June 30, 2018 and 2019.
|
|
Vessel Name
|
Vessel Type
|
Capacity
(dwt.) |
Year Built
|
Date Delivered to
Star Bulk
|
|
1
|
|
Goliath
|
Newcastlemax
|
209,537
|
2015
|
July-15
|
2
|
|
Gargantua
|
Newcastlemax
|
209,529
|
2015
|
April-15
|
3
|
|
Star Poseidon
|
Newcastlemax
|
209,475
|
2016
|
February-16
|
4
|
|
Maharaj
|
Newcastlemax
|
209,472
|
2016
|
July-15
|
5
|
|
Star Leo (1)
|
Newcastlemax
|
207,939
|
2018
|
May-19
|
6
|
|
Star Laetitia
|
Newcastlemax
|
207,896
|
2017
|
August-18
|
7
|
|
Star Ariadne
|
Newcastlemax
|
207,812
|
2017
|
March-17
|
8
|
|
Star Virgo
|
Newcastlemax
|
207,810
|
2017
|
March-17
|
9
|
|
Star Libra (1)
|
Newcastlemax
|
207,765
|
2016
|
June-16
|
10
|
|
Star Sienna
|
Newcastlemax
|
207,721
|
2017
|
August-18
|
11
|
|
Star Marisa
|
Newcastlemax
|
207,709
|
2016
|
March-16
|
12
|
|
Star Karlie
|
Newcastlemax
|
207,566
|
2016
|
August-18
|
13
|
|
Star Eleni (1)
|
Newcastlemax
|
207,555
|
2018
|
January-18
|
14
|
|
Star Magnanimus
|
Newcastlemax
|
207,490
|
2018
|
March-18
|
15
|
|
Debbie H
|
Newcastlemax
|
206,861
|
2019
|
May-19
|
16
|
|
Star Ayesha
|
Newcastlemax
|
206,852
|
2019
|
July-19
|
17
|
|
Katie K
|
Newcastlemax
|
206,839
|
2019
|
April-19
|
18
|
|
Leviathan
|
Capesize
|
182,511
|
2014
|
September-14
|
19
|
|
Peloreus
|
Capesize
|
182,496
|
2014
|
July-14
|
20
|
|
Star Claudine (1)
|
Capesize
|
181,258
|
2011
|
July-18
|
21
|
|
Star Ophelia (1)
|
Capesize
|
180,716
|
2010
|
July-18
|
22
|
|
Star Martha
|
Capesize
|
180,274
|
2010
|
October-14
|
23
|
|
Star Pauline
|
Capesize
|
180,233
|
2008
|
December-14
|
24
|
|
Pantagruel
|
Capesize
|
180,181
|
2004
|
July-14
|
25
|
|
Star Borealis
|
Capesize
|
179,678
|
2011
|
September-11
|
26
|
|
Star Polaris
|
Capesize
|
179,546
|
2011
|
November-11
|
27
|
|
Star Lyra (1)
|
Capesize
|
179,147
|
2009
|
July-18
|
28
|
|
Star Janni
|
Capesize
|
178,978
|
2010
|
January-19
|
29
|
|
Star Marianne
|
Capesize
|
178,906
|
2010
|
January-19
|
30
|
|
Star Angie
|
Capesize
|
177,931
|
2007
|
October-14
|
31
|
|
Big Fish
|
Capesize
|
177,662
|
2004
|
July-14
|
32
|
|
Kymopolia
|
Capesize
|
176,990
|
2006
|
July-14
|
33
|
|
Star Triumph
|
Capesize
|
176,343
|
2004
|
December-17
|
34
|
|
Star Scarlett
|
Capesize
|
175,800
|
2014
|
August-18
|
35
|
|
Star Audrey
|
Capesize
|
175,125
|
2011
|
August-18
|
36
|
|
Big Bang
|
Capesize
|
174,109
|
2007
|
July-14
|
37
|
|
Star Paola
|
Mini-Capesize
|
115,259
|
2011
|
August-18
|
38
|
|
Star Eva
|
Mini-Capesize
|
106,659
|
2012
|
August-18
|
39
|
|
Amami
|
Post Panamax
|
98,681
|
2011
|
July-14
|
40
|
|
Madredeus
|
Post Panamax
|
98,681
|
2011
|
July-14
|
|
Vessel Name
|
Vessel Type |
Capacity
(dwt.) |
Year Built
|
Date Delivered to
Star Bulk
|
|
41 |
Star Sirius |
Post Panamax |
98,681 |
2011 |
March-14 |
|
42 |
Star Vega |
Post Panamax |
98,681 |
2011 |
February-14 |
|
43 |
Star Aphrodite |
Post Panamax |
92,006 |
2011 |
August-18 |
|
44 |
Star Piera |
Post Panamax |
91,952 |
2010 |
August-18 |
|
45 |
Star Despoina |
Post Panamax |
91,945 |
2010 |
August-18 |
|
46 |
Star Electra (1) |
Kamsarmax |
83,494 |
2011 |
July-18 |
|
47 |
Star Angelina |
Kamsarmax |
82,981 |
2006 |
December-14 |
|
48 |
Star Gwyneth |
Kamsarmax |
82,790 |
2006 |
December-14 |
|
49 |
Star Kamila |
Kamsarmax |
82,769 |
2005 |
September-14 |
|
50 |
Star Luna (1) |
Kamsarmax |
82,687 |
2008 |
July-18 |
|
51 |
Star Bianca (1) |
Kamsarmax |
82,672 |
2008 |
July-18 |
|
52 |
Pendulum |
Kamsarmax |
82,619 |
2006 |
July-14 |
|
53 |
Star Maria |
Kamsarmax |
82,598 |
2007 |
November-14 |
|
54 |
Star Markella |
Kamsarmax |
82,594 |
2007 |
September-14 |
|
55 |
Star Danai |
Kamsarmax |
82,574 |
2006 |
October-14 |
|
56 |
Star Jeannette |
Kamsarmax |
82,567 |
2014 |
August-18 |
|
57 |
Star Georgia |
Kamsarmax |
82,298 |
2006 |
October-14 |
|
58 |
Star Sophia |
Kamsarmax |
82,269 |
2007 |
October-14 |
|
59 |
Star Mariella |
Kamsarmax |
82,266 |
2006 |
September-14 |
|
60 |
Star Moira |
Kamsarmax |
82,257 |
2006 |
November-14 |
|
61 |
Star Nina |
Kamsarmax |
82,224 |
2006 |
January-15 |
|
62 |
Star Renee |
Kamsarmax |
82,221 |
2006 |
December-14 |
|
63 |
Star Nasia |
Kamsarmax |
82,220 |
2006 |
August-14 |
|
64 |
Star Laura |
Kamsarmax |
82,209 |
2006 |
December-14 |
|
65 |
Star Jennifer |
Kamsarmax |
82,209 |
2006 |
April-15 |
|
66 |
Star Mona (1) |
Kamsarmax |
82,188 |
2012 |
July-18 |
|
67 |
Star Helena |
Kamsarmax |
82,187 |
2006 |
December-14 |
|
68 |
Star Astrid (1) |
Kamsarmax |
82,158 |
2012 |
July-18 |
|
69 |
Star Alessia |
Kamsarmax |
81,944 |
2017 |
August-18 |
|
70 |
Star Calypso (1) |
Kamsarmax |
81,918 |
2014 |
July-18 |
|
71 |
Star Charis |
Kamsarmax |
81,711 |
2013 |
March-17 |
|
72 |
Star Suzanna |
Kamsarmax |
81,711 |
2013 |
May-17 |
|
73 |
Mercurial Virgo |
Kamsarmax |
81,545 |
2013 |
July-14 |
|
74 |
Stardust (1) |
Kamsarmax |
81,502 |
2011 |
July-18 |
|
75 |
Star Sky (1) |
Kamsarmax |
81,466 |
2010 |
July-18 |
|
76 |
Star Lydia |
Kamsarmax |
81,187 |
2013 |
August-18 |
|
77 |
Star Nicole |
Kamsarmax |
81,120 |
2013 |
August-18 |
|
78 |
Star Virginia |
Kamsarmax |
81,061 |
2015 |
August-18 |
|
79 |
Star Genesis (1) |
Kamsarmax |
80,705 |
2010 |
July-18 |
|
80 |
Star Flame (1) |
Kamsarmax |
80,448 |
2011 |
July-18 |
|
81 |
Star Iris |
Panamax |
76,466 |
2004 |
September-14 |
|
82 |
Star Emily |
Panamax |
76,417 |
2004 |
September-14 |
|
83 |
Idee Fixe (1) |
Ultramax |
63,458 |
2015 |
March-15 |
|
84 |
Roberta (1) |
Ultramax |
63,426 |
2015 |
March-15 |
|
85 |
Laura (1) |
Ultramax |
63,399 |
2015 |
April-15 |
|
86 |
Kaley (1) |
Ultramax |
63,283 |
2015 |
June-15 |
|
87 |
Kennadi |
Ultramax |
63,262 |
2016 |
January-16 |
|
88 |
Mackenzie |
Ultramax |
63,226 |
2016 |
March-16 |
|
89 |
Apus (1) |
Ultramax |
63,123 |
2014 |
July-19 |
|
90 |
Star Wave (1) |
Ultramax |
61,491 |
2017 |
July-18 |
(1)
|
Subject to a bareboat charter with purchase obligation at the expiration of the bareboat term. See Note 7 to our consolidated financial statements included elsewhere herein.
|
·
|
a minimum percentage of aggregate vessel value to secured debt amounts (the security cover ratio or “SCR”);
|
·
|
a maximum ratio of total liabilities to market value adjusted total assets;
|
·
|
a minimum EBITDA to interest coverage ratio;
|
·
|
a minimum liquidity; and
|
·
|
a minimum market value adjusted net worth.
|
(1)
|
Average number of vessels is the number of vessels that constituted our owned fleet for the relevant period, as measured by the sum of the number of days each operating vessel was a part of our owned fleet
during the period divided by the number of calendar days in that period.
|
(2)
|
As of the last day of the periods reported.
|
(3)
|
Average age of our operational fleet is calculated as of the end of each period.
|
(4)
|
Ownership days are the total calendar days each vessel in the fleet was owned by us for the relevant period, including vessels subject to sale and leaseback transactions
and finance leases.
|
(5)
|
Available days for the fleet are the Ownership days after subtracting off-hire days for major repairs, dry docking or special or intermediate surveys and scrubber installation, if any.
|
(6)
|
Charter-in days are the total days that we charter-in third-party vessels.
|
(7)
|
Fleet utilization is calculated by dividing (x) Available days plus Charter-in days by (y) Ownership days plus Charter-in days for the relevant period.
|
(8)
|
Represents the weighted average daily TCE rates of our operating fleet (including owned fleet and fleet under charter-in arrangements). TCE rate is a measure of the average daily net revenue performance of
our vessels. Our method of calculating TCE rate is determined by dividing voyage revenues (net of voyage expenses, charter-in hire expense, amortization of fair value of above/below market acquired time charter agreements, if any, as well
as adjusted for the impact of realized gain/(loss) on forward freight agreements (“FFAs”) and bunker swaps) by Available days for the relevant time period. Available days do not include the Charter-in days as per the relevant definitions
provided above. Starting with the second quarter of 2019, we include the realized gain/(loss) on FFAs and bunker swaps in the calculation of the TCE Revenues. We believe the revised method better reflects the chartering result of our fleet
and is more comparable to the method used by our peers. The change has been applied retrospectively for all periods presented herein. TCE revenues, a non-GAAP measure, provides additional meaningful information in conjunction with voyage
revenues, the most directly comparable GAAP measure, because it assists Company’s management in making decisions regarding the deployment and use of its vessels and because the Company believes that it provides useful information to
investors regarding the Company’s financial performance. TCE rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of
charter types (i.e., voyage charters, time charters, bareboat charters and pool arrangements) under which its vessels may be employed between the periods. Our method of computing TCE may not necessarily be comparable to TCE of other
companies due to differences in methods of calculation. The above reported TCE rate for the six months ended June 30, 2018, was calculated excluding Star Logistics. We have excluded the revenues and expenses of Star Logistics for the
respective period because Star Logistics was formed in October 2017, and its revenues and expenses had not yet normalized in this period, which obscures material trends of our TCE rate. As a result, we believe it is more informative to our
investors to present the TCE rate excluding the revenues and expenses of Star Logistics for this period.
|
Six-month period ended June 30,
|
||||||||||
(In thousands of U.S. Dollars, except for TCE rates expressed in U.S. Dollars)
|
2018
|
2019
|
||||||||
Voyage revenues
|
$
|
201,620
|
a
|
)
|
$
|
324,282
|
||||
Less:
|
||||||||||
Voyage expenses
|
(30,032
|
)
|
b
|
)
|
(91,329
|
)
|
||||
Charter-in hire expenses
|
-
|
c
|
)
|
(44,442
|
)
|
|||||
Realized gain/(loss) on FFAs/bunker swaps
|
1,651
|
8,370
|
||||||||
Time charter equivalent revenues
|
173,239
|
196,881
|
||||||||
Less:
|
||||||||||
Amortization of fair value of below/above market acquired time charter agreements
|
-
|
(1,186
|
)
|
|||||||
Adjusted Time charter equivalent revenues
|
$
|
173,239
|
$
|
195,695
|
||||||
Available days
|
13,116
|
17,987
|
||||||||
Daily time charter equivalent rate ("TCE")
|
$
|
13,208
|
$
|
10,880
|
a)
|
Voyage revenues used to calculate TCE rate for the six months ended June 30, 2018 consist of (1) reported voyage revenues of $253.7 million minus (2) voyage revenues of $52.0 million attributable to Star
Logistics.
|
b)
|
Voyage expenses used to calculate TCE rate for the six months ended June 30, 2018 consist of (1) reported voyage expenses of $42.6 million minus (2) voyage expenses of $12.6 million attributable to Star
Logistics.
|
c)
|
Charter-in hire expenses used to calculate TCE rate for the six months ended June 30, 2018 consist of (1) reported charter-in hire expenses of $40.8 million minus (2) charter-in hire expenses of $40.8
million attributable to Star Logistics.
|
Consolidated Balance Sheets as of December 31, 2018 and June 30, 2019 (unaudited)
|
F-2
|
Unaudited Interim Condensed Consolidated Statements of Operations for the six-month periods ended June 30, 2018 and 2019
|
F-3
|
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income/(Loss) for the six-month periods ended June 30, 2018 and 2019
|
F-4
|
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity for the six-month periods ended June 30, 2018 and 2019
|
F-5
|
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2018 and 2019
|
F-6
|
Notes to Unaudited Interim Condensed Consolidated Financial Statements
|
F-7
|
|
Six months ended June 30, |
|||||||
|
2018 |
2019 |
||||||
|
||||||||
Revenues: |
||||||||
Voyage revenues (Note 15) |
$ |
253,661 |
$ |
324,282 |
||||
|
253,661 |
324,282 |
||||||
|
||||||||
Expenses |
||||||||
Voyage expenses |
42,586 |
91,329 |
||||||
Charter-in hire expenses |
40,763 |
44,442 |
||||||
Vessel operating expenses |
53,681 |
78,133 |
||||||
Dry docking expenses |
3,269 |
28,702 |
||||||
Depreciation |
43,243 |
59,781 |
||||||
Management fees |
3,913 |
8,188 |
||||||
General and administrative expenses |
17,702 |
17,062 |
||||||
Impairment loss (Note 5) |
- |
3,411 |
||||||
Other operational gain |
(41 |
) |
(171 |
) |
||||
Provision for doubtful debts |
- |
1,250 |
||||||
(Gain)/Loss on forward freight agreements and bunker swaps (Note 14) |
(2,000 |
) |
(7,383 |
) |
||||
(Gain)/Loss on sale of vessels ( Note 5) |
- |
700 |
||||||
|
203,116 |
325,444 |
||||||
Operating income / (loss) |
50,545 |
(1,162 |
) |
|||||
|
||||||||
Other Income/ (Expenses): |
||||||||
Interest and finance costs (Note 9) |
(30,338 |
) |
(43,826 |
) |
||||
Interest and other income/(loss) |
394 |
1,096 |
||||||
Gain / (Loss) on derivative financial instruments, net (Note 14) |
(1 |
) |
- |
|||||
Loss on debt extinguishment (Notes 7 and 9) |
(21 |
) |
(1,619 |
) |
||||
Total other expenses, net |
(29,966 |
) |
(44,349 |
) |
||||
|
||||||||
Income / (loss) before taxes and equity in income of investee |
$ |
20,579 |
$ |
(45,511 |
) |
|||
Income taxes |
- |
(59 |
) |
|||||
Income/(Loss) before equity in income of investee |
20,579 |
(45,570 |
) |
|||||
Equity in income of investee |
49 |
55 |
||||||
Net income/(loss) |
20,628 |
(45,515 |
) |
|||||
Earnings / (Loss) per share, basic |
$ |
0.32 |
$ |
(0.49 |
) |
|||
Earnings / (Loss) per share, diluted |
0.32 |
(0.49 |
) |
|||||
Weighted average number of shares outstanding, basic (Note 11) |
64,170,654 |
92,457,415 |
||||||
Weighted average number of shares outstanding, diluted (Note 11) |
64,468,860 |
92,457,415 |
Six months ended June 30,
|
||||||||
2018
|
2019
|
|||||||
Net income / (loss)
|
$
|
20,628
|
$
|
(45,515
|
)
|
|||
Other comprehensive income / (loss):
|
||||||||
Unrealized gains / losses from cash flow hedges:
|
||||||||
Unrealized gain / (loss) from hedging interest rate swaps recognized in Other comprehensive income/(loss) before reclassifications (Note 14)
|
110
|
-
|
||||||
Less:
|
||||||||
Reclassification adjustments of interest rate swap gain/(loss) (Note 14)
|
73
|
-
|
||||||
Other comprehensive income / (loss)
|
183
|
-
|
||||||
Total comprehensive income / (loss)
|
$
|
20,811
|
$
|
(45,515
|
)
|
Common Stock
|
||||||||||||||||||||||||||||
# of Shares
|
Par Value
|
Additional Paid-
in Capital
|
Accumulated Other
Comprehensive
income/(loss)
|
Accumulated
deficit
|
Treasury
stock
|
Total
Stockholders'
Equity
|
||||||||||||||||||||||
BALANCE, January 1, 2018
|
64,160,004
|
$
|
642
|
$
|
2,123,108
|
$
|
605
|
$
|
(1,036,303
|
)
|
$
|
-
|
$
|
1,088,052
|
||||||||||||||
Cumulative effect of accounting change
|
-
|
-
|
-
|
-
|
(1,857
|
)
|
-
|
(1,857
|
)
|
|||||||||||||||||||
Net income / (loss)
|
-
|
-
|
-
|
-
|
20,628
|
-
|
20,628
|
|||||||||||||||||||||
Other comprehensive income / (loss)
|
-
|
-
|
-
|
183
|
-
|
-
|
183
|
|||||||||||||||||||||
Amortization of share-based compensation (Note 12)
|
-
|
-
|
5,011
|
-
|
-
|
-
|
5,011
|
|||||||||||||||||||||
Secondary offering expenses
|
-
|
-
|
(439
|
)
|
-
|
(439
|
)
|
|||||||||||||||||||||
Acquisition of OCC vessels (Note 6)
|
3,304,735
|
33
|
42,929
|
-
|
42,962
|
|||||||||||||||||||||||
BALANCE, June 30, 2018
|
67,464,739
|
$
|
675
|
$
|
2,170,609
|
$
|
788
|
$
|
(1,017,532
|
)
|
$
|
-
|
$
|
1,154,540
|
||||||||||||||
BALANCE, January 1, 2019
|
92,627,349
|
$
|
926
|
$
|
2,502,429
|
$
|
-
|
$
|
(980,165
|
)
|
$
|
(3,145
|
)
|
$
|
1,520,045
|
|||||||||||||
Net income / (loss)
|
-
|
-
|
-
|
-
|
(45,515
|
)
|
-
|
(45,515
|
)
|
|||||||||||||||||||
Amortization of share-based compensation (Note 12)
|
-
|
-
|
2,857
|
-
|
-
|
-
|
2,857
|
|||||||||||||||||||||
Acquisition of Songa Vessels
|
-
|
-
|
-
|
-
|
-
|
(93
|
)
|
(93
|
)
|
|||||||||||||||||||
Acquisition of E.R Vessels (Notes 5 and 10)
|
999,336
|
10
|
10,053
|
-
|
-
|
-
|
10,063
|
|||||||||||||||||||||
Purchase of treasury stock (Note 10)
|
(1,876,685
|
)
|
(19
|
)
|
(14,593
|
)
|
-
|
-
|
3,145
|
(11,467
|
)
|
|||||||||||||||||
BALANCE, June 30, 2019
|
91,750,000
|
$
|
917
|
$
|
2,500,746
|
$
|
-
|
$
|
(1,025,680
|
)
|
$
|
(93
|
)
|
$
|
1,475,890
|
Six months ended June 30,
|
||||||||
2018
|
2019
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income / (loss)
|
$
|
20,628
|
$
|
(45,515
|
)
|
|||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
|
||||||||
Depreciation
|
43,243
|
59,781
|
||||||
Amortisation of fair value of above market time charters (Note 8)
|
-
|
167
|
||||||
Amortization of debt issuance costs (Note 9)
|
1,367
|
2,575
|
||||||
Loss on debt extinguishment (Note 9)
|
21
|
1,619
|
||||||
Amortisation of fair value of below market time charters (Note 8)
|
-
|
(1,353
|
)
|
|||||
Impairment loss (Note 5)
|
-
|
3,411
|
||||||
Loss / (gain) on sale of vessels (Note 5)
|
-
|
700
|
||||||
Provision for doubtful debts
|
-
|
1,250
|
||||||
Share-based compensation (Note 12)
|
5,011
|
2,857
|
||||||
Non-cash effects of derivative financial instruments
|
(573
|
)
|
149
|
|||||
Fair value hedge adjustment (Note 18)
|
(1,405
|
)
|
-
|
|||||
Change in fair value of forward freight derivatives and bunker swaps
|
(349
|
)
|
987
|
|||||
Other non-cash charges
|
60
|
142
|
||||||
Gain on hull and machinery claims
|
-
|
(30
|
)
|
|||||
Equity in income of investee
|
(49
|
)
|
(55
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
(Increase)/Decrease in:
|
||||||||
Trade accounts receivable
|
(8,572
|
)
|
(3,392
|
)
|
||||
Inventories
|
(2,912
|
)
|
(19,255
|
)
|
||||
Prepaid expenses and other receivables
|
(1,429
|
)
|
(18,919
|
)
|
||||
Due from related parties
|
151
|
1,005
|
||||||
Due from managers
|
-
|
20
|
||||||
Increase/(Decrease) in:
|
||||||||
Accounts payable
|
3,771
|
6,019
|
||||||
Due to related parties
|
26
|
(1,152
|
)
|
|||||
Accrued liabilities
|
957
|
5,091
|
||||||
Due to managers
|
2,984
|
6,609
|
||||||
Deferred revenue
|
(1,843
|
)
|
4,916
|
|||||
Net cash provided by / (used in) Operating Activities
|
61,087
|
7,627
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Advances for vessels under construction and acquisition of vessels and other fixed assets
|
(115,896
|
)
|
(157,794
|
)
|
||||
Cash proceeds from vessel sales (Note 5)
|
-
|
20,026
|
||||||
Hull and machinery insurance proceeds
|
304
|
5,675
|
||||||
Net cash provided by / (used in) Investing Activities
|
(115,592
|
)
|
(132,093
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from bank loans, leases and notes
|
129,984
|
392,387
|
||||||
Loan and lease prepayments and repayments
|
(108,722
|
)
|
(366,116
|
)
|
||||
Financing and debt extinguishment fees paid
|
(569
|
)
|
(7,740
|
)
|
||||
Proceeds from issuance of common stock
|
-
|
-
|
||||||
Offering expenses paid related to the issuance of common stock
|
(439
|
)
|
-
|
|||||
Repurchase of common shares
|
-
|
(11,562
|
)
|
|||||
Refund of financing premia
|
1,247
|
-
|
||||||
Net cash provided by / (used in) Financing Activities
|
21,501
|
6,969
|
||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash
|
(33,004
|
)
|
(117,497
|
)
|
||||
Cash and cash equivalents and restricted cash at beginning of period
|
273,500
|
213,877
|
||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
240,496
|
$
|
96,380
|
||||
Reconciliation of (a) cash and cash equivalents, and restricted cash reported within the consolidated balance sheets to (b) the total amount of such
items reported in the statements of cash flows:
|
||||||||
Cash and cash equivalents
|
$
|
218,651
|
$
|
83,088
|
||||
Restricted cash, current (Note 9)
|
10,425
|
6,271
|
||||||
Restricted cash, non-current (Note 9)
|
11,420
|
7,021
|
||||||
Cash and cash equivalents and restricted cash at end of period shown in the statement of cash flows
|
$
|
240,496
|
$
|
96,380
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
27,774
|
$
|
41,502
|
||||
Non-cash investing activities:
|
||||||||
Shares issued in connection with vessel acquisitions
|
-
|
10,063
|
||||||
Vessel upgrades
|
780
|
5,742
|
1.
|
Basis of Presentation and General Information:
|
2.
|
Significant accounting policies and recent accounting pronouncements:
|
2.
|
Significant accounting policies and recent accounting pronouncements – continued:
|
2.
|
Significant accounting policies and recent accounting pronouncements – continued:
|
a)
|
All charter-in operating leases that the Company had entered into and were effective as of December 31, 2018 and during the six month period ended June 30, 2019 are short-term leases (i.e., less than 12 months). The Company elected to use the practical expedient of ASC 842 that allows for time charter-in contracts with an initial term of less than 12 months to be excluded from the
operating lease right-of use assets and the corresponding lease liabilities recognition on the consolidated balance sheet. The Company continues to recognize the lease payments for all charter-in operating leases as charter-in hire
expenses on the consolidated statements of operations on a straight-line basis over the lease term. Revenues generated from those charter-in vessels during the six month periods ended June 30, 2018 and 2019 amounted to $56,093 and $78,449
and are included in Voyage revenues in the consolidated statement of operations, out of which $7,402 and $11,399 constitute sublease income deriving from time charter agreements.
|
b)
|
The adoption of ASC 842 did not change the accounting for the leases already recognized on the balance sheet as capital leases under the previous leasing guidance given the transition provisions of ASC 842
and the practical expedients elected by the Company as discussed above. As such, those leases existing as of January 1, 2019, including all bareboat charter agreements that the Company had entered into that were in place as of that date,
are classified as finance leases under the new leasing guidance of ASC 842, with the Company having reclassified the existing capital lease assets as of December 31, 2018 of $1,047,780 as right-of-use assets being reflected within Fixed
Assets and the existing lease obligations as of December 31, 2018 of $609,737 as lease liabilities being reflected within Lease commitments.
|
c)
|
Each sale and lease back transaction that the Company had entered into as of December 31, 2018 or entered into during the six month period ended June 30, 2019, involved a purchase obligation and was
therefore treated as failed sale or merely a financing arrangement both before and after adoption of ASC 842, and therefore was not within the scope of sale and leaseback accounting.
|
d)
|
The Company has determined its office rental arrangements are operating leases. The assets and liabilities recognized in respect of these agreements that correspond to the underlying rights and obligations
were $1,198 as of January 1, 2019 and $1,140 as of June 30, 2019 and are presented within “Leased buildings, right-of-use assets” and “Leased buildings, operating lease liabilities” in the consolidated balance sheet. The lease expenses
attributable to these leases are recognized on a straight line basis over the lease term and are recorded as part of General and Administrative expenses. These lease expenses were $192 and $121 for the six months ended June 30, 2018 and
2019, respectively. The weighted average remaining lease term of the Company’s office rent arrangements is 4.4 years. Future minimum rental payments as of June 30, 2019 for these contracts are presented in Note 13 below.
|
3.
|
Transactions with Related Parties:
|
December 31,
2018
|
June 30,
2019
|
|||||||
Due from related parties
|
||||||||
Oceanbulk Maritime S.A. and its affiliates
|
$
|
85
|
$
|
264
|
||||
Interchart Shipping Inc.
|
-
|
1
|
||||||
Starocean Manning Philippines Inc.
|
65
|
52
|
||||||
Sellers of the Augustea Vessels
|
867
|
-
|
||||||
Songa Shipmanagement Ltd.
|
305
|
-
|
||||||
Due from related parties
|
$
|
1,322
|
$
|
317
|
||||
Due to related parties
|
||||||||
Management and Directors Fees
|
$
|
236
|
$
|
131
|
||||
Sydelle Marine Limited
|
302
|
-
|
||||||
Augustea Technoservices Ltd.
|
1,111
|
366
|
||||||
Due to related parties
|
$
|
1,649
|
$
|
497
|
Six months ended June 30,
|
||||||||
2018
|
2019
|
|||||||
Voyage expenses-Interchart
|
$
|
(1,650
|
)
|
(1,950
|
)
|
|||
Consultancy fees
|
(262
|
)
|
(328
|
)
|
||||
Directors compensation
|
(72
|
)
|
(87
|
)
|
||||
Office rent - Combine Marine Ltd. & Alma Properties
|
(19
|
)
|
(9
|
)
|
||||
Voyage revenues - profit sharing agreement-Sydelle Marine Limited
|
(4
|
)
|
-
|
|||||
Management fees- Augustea Technoservices Ltd.
|
-
|
(3,254
|
)
|
|||||
Management fees- Songa Shipmanagement Ltd.
|
-
|
(32
|
)
|
|||||
General and administrative expenses - Oceanbulk Maritime S.A. and its affiliates
|
-
|
(78
|
)
|
4.
|
Inventories:
|
December 31,
2018
|
June 30,
2019
|
|||||||
Lubricants
|
$
|
12,071
|
$
|
12,613
|
||||
Bunkers
|
15,365
|
34,078
|
||||||
Total
|
$
|
27,436
|
$
|
46,691
|
5.
|
Vessels and other fixed assets, net:
|
Vessel cost
|
Accumulated
depreciation
|
Net Book
Value
|
||||||||||
Balance, December 31, 2018
|
$
|
3,149,274
|
$
|
(493,166
|
)
|
$
|
2,656,108
|
|||||
- Transfer from advances for vessels under construction and acquisition of vessels
|
104,528
|
-
|
104,528
|
|||||||||
- Acquisitions, improvements and other vessel costs
|
108,411
|
-
|
108,411
|
|||||||||
- Vessel disposal
|
(58,904
|
)
|
44,206
|
(14,698
|
)
|
|||||||
- Impairment loss
|
(24,551
|
)
|
21,140
|
(3,411
|
)
|
|||||||
- Depreciation for the period
|
-
|
(59,781
|
)
|
(59,781
|
)
|
|||||||
Balance, June 30, 2019
|
$
|
3,278,758
|
$
|
(487,601
|
)
|
$
|
2,791,157
|
5.
|
Vessels and other fixed assets, net – continued:
|
6.
|
Advances for vessels under construction and acquisition of vessels:
|
Balance, December 31, 2018
|
$
|
59,900
|
||
- Additions
|
65,202
|
|||
- Capitalized interest
|
629
|
|||
- Transfers to Vessel cost
|
(104,528
|
)
|
||
Balance, June 30, 2019
|
21,203
|
7.
|
Lease Commitments:
|
7.
|
Lease Commitments - continued:
|
Twelve month periods ending
|
Amount
|
|||
June 30, 2020
|
$
|
60,245
|
||
June 30, 2021
|
58,150
|
|||
June 30, 2022
|
56,770
|
|||
June 30, 2023
|
74,736
|
|||
June 30, 2024
|
119,562
|
|||
June 30, 2025 and thereafter
|
89,059
|
|||
Total bareboat lease minimum payments
|
$
|
458,522
|
||
Unamortized debt issuance costs
|
3,404
|
|||
Total bareboat lease minimum payments, net
|
$
|
455,118
|
||
Excluding bareboat lease interest
|
53,945
|
|||
Lease commitments – short term
|
44,333
|
|||
Lease commitments – long term
|
356,840
|
8.
|
Fair value of Above / Below Market Acquired Time Charters:
|
Twelve month periods ending
|
Amount
|
|||
June 30, 2020
|
$
|
1,714
|
||
June 30, 2021
|
924
|
|||
June 30, 2022
|
831
|
|||
Total
|
$
|
3,469
|
9.
|
Long-term Debt:
|
9.
|
Long-term Debt - continued:
|
|
• |
a minimum percentage of aggregate vessel value to secured loans (the security cover ratio or “SCR”);
|
|
• |
a maximum ratio of total liabilities to market value adjusted total assets;
|
|
• |
a minimum EBITDA to interest coverage ratio;
|
|
• |
a minimum liquidity; and
|
|
• |
a minimum market value adjusted net worth.
|
9.
|
Long-term Debt - continued:
|
Twelve month periods ending
|
Amount
|
|||
June 30, 2020
|
$
|
122,919
|
||
June 30, 2021
|
135,789
|
|||
June 30, 2022
|
130,259
|
|||
June 30, 2023
|
141,977
|
|||
June 30, 2024
|
365,608
|
|||
June 30, 2025 and thereafter
|
132,703
|
|||
Total Long term debt
|
$
|
1,029,255
|
||
Unamortized debt issuance costs
|
12,676
|
|||
Total Long term debt, net
|
$
|
1,016,579
|
||
Current portion of long term debt
|
122,919
|
|||
Long term debt, net
|
893,660
|
2018
|
2019
|
|||||||
Interest on long term debt and bareboat leases
|
$
|
28,691
|
$
|
41,034
|
||||
Less: Interest capitalized
|
(468
|
)
|
(629
|
)
|
||||
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other Comprehensive Income (Note 18)
|
73
|
-
|
||||||
Amortization of debt issuance costs
|
1,367
|
2,575
|
||||||
Other bank and finance charges
|
675
|
846
|
||||||
Interest and finance costs
|
$
|
30,338
|
$
|
43,826
|
9.
|
Long-term Debt - continued:
|
10.
|
Preferred and Common Shares and Additional Paid-in Capital:
|
11.
|
Earnings / (Loss) per Share:
|
Six months ended June 30,
|
||||||||
2018
|
2019
|
|||||||
Income / (Loss) :
|
||||||||
Net income / (loss)
|
$
|
20,628
|
$
|
(45,515
|
)
|
|||
Basic earnings / (loss) per share:
|
||||||||
Weighted average common shares outstanding, basic
|
64,170,654
|
92,457,415
|
||||||
Basic earnings / (loss) per share
|
$
|
0.32
|
$
|
(0.49
|
)
|
|||
Effect of dilutive securities:
|
||||||||
Dillutive effect of non vested shares
|
298,206
|
-
|
||||||
Weighted average common shares outstanding, diluted
|
64,468,860
|
92,457,415
|
||||||
Diluted earnings / (loss) per share
|
$
|
0.32
|
$
|
(0.49
|
)
|
12.
|
Equity Incentive Plans:
|
12.
|
Equity Incentive Plans - continued:
|
Options
|
Number of
options
|
Weighted average
exercise price
|
Weighted Average
Grant Date Fair Value
|
|||||||||
Outstanding at beginning of period
|
104,250
|
$
|
27.5
|
$
|
7.0605
|
|||||||
Granted
|
-
|
-
|
-
|
|||||||||
Vested
|
-
|
-
|
-
|
|||||||||
Outstanding at end of period
|
104,250
|
$
|
27.5
|
$
|
7.0605
|
Unvested shares
|
Number of
shares
|
Weighted
Average
Grant
Date Fair
Value
|
||||||
Unvested as at January 1, 2019
|
143,000
|
$
|
12.49
|
|||||
Granted
|
885,000
|
8.13
|
||||||
Vested
|
(71,500
|
)
|
12.49
|
|||||
Unvested as at June 30, 2019
|
956,500
|
$
|
8.46
|
13.
|
Commitments and Contingencies:
|
a)
|
Commitments:
|
Twelve month periods ending June 30,
|
||||||||||||||||||||||||||||
+ inflows/ - outflows
|
Total
|
2020
|
2021
|
2022
|
2023
|
2024
|
2025 and
thereafter
|
|||||||||||||||||||||
Future, minimum, non-cancellable charter revenue (1)
|
$
|
34,928
|
$
|
32,363
|
$
|
2,565
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
Future, minimum, charter-in hire payments (2)
|
(12,811
|
)
|
(12,811
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
Vessel upgrades (3)
|
(106,246
|
)
|
(106,246
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
Bareboat commitments charter hire (4)
|
(44,387
|
)
|
(3,740
|
)
|
(3,697
|
)
|
(3,653
|
)
|
(3,608
|
)
|
(3,561
|
)
|
(26,128
|
)
|
||||||||||||||
Office rent (5)
|
(1,436
|
)
|
(345
|
)
|
(321
|
)
|
(297
|
)
|
(288
|
)
|
(137
|
)
|
(48
|
)
|
(1) |
The amounts represent the minimum contractual charter revenues to be generated from the existing, as of June 30, 2019, non-cancellable time charter agreements, until their expiration, net of address commission, assuming no off-hire
days other than those related to scheduled interim and special surveys of the vessels.
|
(2) |
The amounts represent the Company’s commitments under the existing, as of June 30, 2019, time charter-in arrangements for third party vessels.
|
(3) |
The amounts represent the Company’s commitments for the vessel upgrades that the Company entered into in 2018 and the six-month period ended June 30, 2019. The commitments include an amount of $18,944 for vessel upgrades with
respect to the Delphin Vessels (Note 16). For the respective payments the Company has secured total financing of $127,321, of which $112,321 was committed under loan and bareboat lease agreements signed as of June 30, 2019 and $15,000
was committed under finance lease agreements signed subsequently.
|
(4) |
The amounts represent the Company’s commitment under the bareboat lease arrangement representing the charter hire for the one of the three vessels acquired as part of the OCC Vessel Purchase Transaction discussed in Note 6 above,
which, as of June 30, 2019, was under construction. The bareboat charter hire is comprised of fixed and variable portion, the variable portion is calculated based on the 3-month LIBOR of 2.3199 % as of June 30, 2019.
|
(5) |
The office rent includes an amount of 188,000 NOK (or approximately $22, using the exchange rate as of June 30, 2019, which was $0.1174 per NOK) up to the twelve month period ended June 30, 2025, concerning a rental agreement with
indefinite term.
|
b)
|
Legal proceedings
|
14.
|
Fair value measurements and Hedging:
|
14.
|
Fair value measurements and Hedging - continued:
|
Six months ended June 30,
|
||||||||
2018
|
2019
|
|||||||
Consolidated Statement of Operations
|
||||||||
Gain/(loss) on derivative financial instruments, net
|
||||||||
Unrealized gain/(loss) from the Goldman Sachs Swaps after de-designation of accounting hedging relationship (April 1, 2015)
|
$
|
140
|
$
|
-
|
||||
Realized gain/(loss) from the Goldman Sachs Swaps after de-designation of accounting hedging relationship (April 1, 2015)
|
(141
|
)
|
-
|
|||||
Total Gain/(loss) on derivative financial instruments, net
|
$
|
(1
|
)
|
$
|
-
|
|||
Interest and finance costs
|
||||||||
Reclassification adjustments of interest rate swap loss/(gain) transferred to Interest and finance costs from Other comprehensive income/(loss)
|
(73
|
)
|
-
|
|||||
Total Gain/(loss) recognized
|
$
|
(73
|
)
|
$
|
-
|
|||
Gain/(loss) on forward freight agreements and bunker swaps
|
||||||||
Realized gain/(loss) on forward freight agreements
|
1,580
|
8,337
|
||||||
Realized gain/(loss) on bunker swaps
|
71
|
33
|
||||||
Unrealized gain/(loss) on forward freight agreements
|
(1,097
|
)
|
(2,290
|
)
|
||||
Unrealized gain/(loss) on bunker swaps
|
1,446
|
1,303
|
||||||
Total Gain/(loss) recognized
|
$
|
2,000
|
$
|
7,383
|
|
Level 1: |
Quoted market prices in active markets for identical assets or liabilities
|
|
Level 2: |
Observable market-based inputs or unobservable inputs that are corroborated by market data
|
|
Level 3: |
Unobservable inputs that are not corroborated by market data
|
Significant Other Observable Inputs (Level 2)
|
||||||||||||||||
December 31, 2018
|
June 30, 2019
|
|||||||||||||||
(not designated as
cash flow hedges)
|
(designated as
cash flow hedges)
|
(not designated as
cash flow hedges)
|
(designated as
cash flow hedges)
|
|||||||||||||
ASSETS
|
||||||||||||||||
Forward freight agreements - asset position
|
$
|
537
|
-
|
-
|
||||||||||||
Total
|
$
|
537
|
-
|
$
|
-
|
-
|
||||||||||
LIABILITIES
|
||||||||||||||||
Forward freight agreements - liability position
|
$
|
-
|
-
|
1,902
|
-
|
|||||||||||
Bunker swaps - liability position
|
1,799
|
-
|
496
|
-
|
||||||||||||
Total
|
$
|
1,799
|
-
|
2,398
|
-
|
14.
|
Fair value measurements and Hedging - continued:
|
Quoted Prices in
Active Markets for
Identical Assets
|
Significant Other
Observable Inputs
|
Significant
Unobservable
Inputs
|
Impairment loss
|
|||||||||||||
Long-lived assets held and used
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
||||||||||||
Vessels, net
|
$
|
-
|
24,475
|
-
|
3,411
|
|||||||||||
TOTAL
|
$
|
-
|
24,475
|
-
|
3,411
|
15.
|
Voyage revenues:
|
Six months period ended
|
||||||||
2018
|
2019
|
|||||||
Time charters
|
$
|
152,079
|
$
|
176,709
|
||||
Voyage charters
|
99,029
|
145,443
|
||||||
Pool revenues
|
2,553
|
2,130
|
||||||
$
|
253,661
|
$
|
324,282
|
15.
|
Voyage revenues - continued:
|
16.
|
Subsequent Events:
|
a)
|
On May 27, 2019, the Company entered into an en bloc definitive agreement with entities controlled by Delphin Shipping, LLC (“Delphin”), an entity affiliated with Kelso & Company, pursuant to which it
agreed to acquire 11 operating dry bulk vessels (the “Delphin Vessels”) for an aggregate purchase price of $139.5 million (“Delphin Purchase Price”), which was paid in (a) $80.0 million of cash and (b) 4.503 million common shares of Star
Bulk (the “Delphin Consideration Shares”) (collectively, the “Delphin Vessel Acquisition”). The Company has secured exhaust gas cleaning systems (the “Delphin Scrubbers”) for all of the Delphin Vessels. The cash portion of the Purchase
Price will be financed through proceeds of a new seven-year finance lease of up to $91.4 million with China Merchants Bank Leasing, and an additional tranche of $15.0 million for financing of the Delphin Scrubbers. Delphin has agreed not
to sell, contract to sell, or otherwise dispose more than 2,251,685 of the Consideration Shares prior to November 23, 2019. All 11 Delphin Vessels had been delivered to the Company as of September 30, 2019.
|
b)
|
In July 2019, the Company entered into an agreement to sell the Star Challenger and simultaneously entered into a bareboat charter party contract with Kyowa Sansho
Co. Ltd. (see Note 7).
|
c)
|
Subsequent to June 30, 2019, the Company entered into the NTT Facility and the CEXIM $106,470 Facility (see Note 9).
|
d)
|
Subsequent to June 30, 2019, the Company drew down an amount of (i) $2.8 million under the ING $100.6 million Facility, (ii) $24.75 million under the DNB $310.0 million Facility, (iii) $3.3 million under
the Atradius Facility and (iv) $1.26 million under the SEB Facility (see Note 9). In addition the Company recognized additional lease liabilities of $7.56 million under the lease agreements with CMBL. All the above mentioned amounts were
used to finance our scrubber installation program. Following these drawdowns as of the date of this report, the undrawn portion of scrubber-related financing under all of our debt and lease agreements is $ 87.62 million.
|
e)
|
As part of the Company’s share repurchase program discussed in Note 10 of the Company’s consolidated financial statements for the year ended December 31, 2018, included in the 2018 Annual Report, subsequent
to June 30, 2019 the Company repurchased 1,020,000 shares from a non-related party shareholder in a private transaction at a price of $8.40 per share, for an aggregate consideration of $8.6 million and 43,873 shares in open market
transactions at an average price of $8.98 for an aggregate consideration of $394. The repurchased shares were cancelled and removed from the Company’s share capital as of the date of this report.
|