管理層發言
Thank you for standing by, ladies and gentlemen. And welcome to the Star Bulk Carriers Conference Call on First Quarter 2026 Financial Results. We have with us today Mr. Petros Alexandros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Simos Spyrou; Mr. Christos Begleris, Co-Chief Financial Officer; Mr. Nicos Rescos, Chief Operating Officer; and Mrs. Charis Plakantaraki, Chief Strategy Officer of the company. At this time, all participants are in a listen-only mode. I must advise you this conference call is being recorded today. I will now pass the floor to our speaker today, Mr. Begleris. Please go ahead, sir.
Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. I am Christos Begleris, Co-Chief Financial Officer of Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the first quarter of 2026. Before we begin, I kindly ask you to take a moment to read the Safe Harbor statement on Slide number 2 of our presentation. In today's presentation, we will review our first quarter 2026 company highlights, financial performance, capital allocation initiatives, cash evolution during the quarter, operational performance, our continued investments in the fleet, developments on the regulatory front and our perspective on industry fundamentals. We will then open the floor for questions. Turning to Slide 3. The first quarter was characterized by solid profitability, disciplined capital allocation and continued balance sheet strength.
Net income amounted to $58.5 million while adjusted net income reached $63 million or $0.52 adjusted earnings per share. Adjusted EBITDA was $114.3 million, demonstrating the strong cash generating capacity of our platform. On the shareholder returns front, we continue to actively return capital to our shareholders. Share repurchases during the first quarter and year-to-date we have repurchased approximately 1.9 million shares totaling $37.9 million. On the dividends front, our Board of Directors declared a $0.50 per share dividend for the quarter, payable on or about June 20, to all shareholders of record as of June 12, 2026. Our balance sheet remains a key strategic advantage. Total cash and cash equivalents are approximately $432 million; outstanding debt is approximately $874 million. We also have an undrawn revolver capacity of €110 million. We currently own 29 debt-free vessels with an aggregate market value of around $700 million.
Our overall loan leverage as well as this unencumbered asset base provides substantial financial flexibility to fund growth opportunities as well as downside protection. To further enhance shareholder value, we have updated our dividend distribution policy. We distribute 100% of free cash flow subject to maintaining a minimum cash balance of $2.1 million per vessel. As far as operating performance is concerned, on the top right side of the slide, you can see our per vessel daily performance metrics for the quarter. Time charter equivalent was at $18.5 thousand per vessel per day. Combined daily OpEx and net cash G&A was at $6.42 thousand per vessel per day. This resulted in a daily cash margin of approximately $12.1 thousand per vessel per day before debt service and CapEx. These numbers highlight the operating efficiency of our platform and our ability to generate meaningful cash flow even at mid-cycle rate levels.
Slide 4 summarizes our capital allocation track record over the last six years. Since 2021, we have executed on approximately $3.1 billion of value enhancing actions, including dividends, share repurchases, and debt repayment. During this period, we have returned approximately $1.4 billion or $14 per share in dividends, representing approximately 54% of our current share price. We have reduced total net debt by 63%, bringing leverage to a level where net debt is at 56% of the demolition value of our fleet. During the same period, we have expanded the fleet opportunistically through accretive fleet acquisitions, issuing equity at above net asset value, thereby increasing scale while protecting per-share value. The result is a larger, more efficient platform with materially lower financial risk and significantly enhanced free cash flow per share potential. Slide 5 illustrates the movements in our cash balance during the first quarter.
We began the quarter with $52 million in cash. We generated $112 million in operating cash flow. After vessel sale proceeds, debt drawdowns and repayments, CapEx payments related to newbuilding installments and energy saving devices and ballast water treatment system installations, share buybacks and the fourth quarter dividend we ended the quarter with $49 million in cash. This sequential increase in cash underscores a strong internal cash generation of the company even after substantial shareholder returns and investment in fleet upgrades. Slide 6 includes our diversified fleet driving strong earnings contribution across all segments. Star Bulk delivered a well balanced operating performance, supported by our diversified fleet of 136 vessels, and over 12 thousand ownership days. Ultramax/Supramax vessels remained the largest contributor of revenue at 38%, $80.7 million in revenue and $39.7 million in adjusted EBITDA.
Newcastlemax/Capesize vessels represented 33% of revenue and 30% of adjusted EBITDA, benefiting from strong market positioning and representing 41% of our fixed market value. Post-Panamax and Kamsarmax segments continue to provide stable earnings, contributing 29% of revenue and 28% of adjusted EBITDA. Overall, our fleet generated $212.5 million in revenue and $113 million in adjusted EBITDA during the quarter, highlighting the resilience of our diversified commercial strategy and efficiently deployed fleet. Slide 7 highlights the inherent operating leverage embedded in our business model. With approximately 48.5 thousand fleet available days per year, and based on a current net 12 month SFA curve of approximately $20.5 thousand per day on a fleet-wide basis, the company would generate approximately $3.4 per share of free cash flow, representing a 13% implied cash flow yield. The slide illustrates the strength of our platform in a rising market.
Every $1.5 thousand fleet-wide increase in TCE equates to an EBITDA increase of $71 million. This will translate to $0.64 per share of incremental dividend to our shareholders, given our existing approach to distributions. In summary, during the first quarter, we delivered solid profitability, we strengthened our liquidity position, we continued to delever. We returned meaningful capital to shareholders and we preserved significant optionality for future capital allocation. Our balance sheet resilience, operating efficiency and disciplined capital allocation framework position us well to navigate market volatility while continuing to enhance per-share value. With that, I will pass the floor to our COO, Nicos Rescos, for an update on our operational performance and the continued investments we are making in our fleet.
Thank you, Christos. Turning to Slide 8, which covers our operational performance. We continue to operate one of the most cost efficient platforms in the dry bulk sector. Daily OpEx for the first quarter came in at $5.04 thousand per vessel and net cash G&A at $1.38 thousand, both among the lowest in our peer group as illustrated on the slide. This sustained cost discipline reflects our scale, our integrated management platform and the synergies crystallized through the Eagle Bulk integration and translates directly into superior cash generation through the cycle. Moving to Slide 9, which outlines our fleet-wide investment program. On the newbuilding front, all eight of our latest generation high-specification Kamsarmax newbuildings are on track for delivery during 2026, with $195 million of CapEx remaining. Financing is largely in place, where we have secured $130 million of debt against the five Qingdao-built vessels and expect a further $51.2 million against the three Hengli-built vessels, leading the program, fully funded on competitive terms.
In a strengthening charter market, the forward deliveries of these vessels remain highly attractive to our customers, combined with an approximate $40 million mark-to-market gain for our shareholders. On vessel upgrades, during the first quarter, we have continued pushing through with energy saving devices and high-efficiency propeller installations. To date, we have completed 61 AST installations across the fleet. We have several more scheduled for 2026. Together with telemetry retrofits, hull upgrades with low-friction silicon paint, and deployment of hull-cleaning robots, we measure tangible vessel performance improvements of between 7% and 15%, directly translating to improved commercial performance and attractiveness of our fleet. The top right of the slide illustrates our CapEx schedule presenting both the remaining newbuilding installments and our vessel efficiency upgrade spending alongside the corresponding debt drawdowns.
At the bottom, you can see our drydock schedule for the remainder of 2026, totaling approximately $4.2 million and around 1.24 thousand off-hire days. Turning to Slide 10 for a quick update. We continue to actively rejuvenate our fleet through a disciplined combination of selective disposals and newbuilding deliveries, prioritizing divestment of older, non-core vessels to reduce our average fleet age and lift overall efficiency. During the first quarter of 2026, we delivered the Star Scarlet and Star Marela to their new owners. In connection with these sales, we collected net proceeds of approximately $46.4 million. Having sold 49 vessels since 2023, we have reinvested the majority of the net sale proceeds to fund accretive share buybacks throughout this period. This quarter also marks the start of our newbuilding delivery with our latest generation Kamsarmax vessels joining the fleet. We expect to take delivery of the first two vessels in May 2026, Star Vela and Star Ema, with the remaining six newbuildings phasing in throughout the balance of the year.
We continue to maintain seven long-term chartering contracts providing additional commercial flexibility across market cycles. Star Bulk operates one of the largest modern fleets among U.S. and European listed peers on a fully delivered basis, 141 vessels on a fully delivered basis, and an average age of approximately 12.2 years, providing scale, modernity and operating leverage to compound shareholder value as the market cycle evolves. I will now pass the floor to our Chief Strategy Officer, Charis Plakantaraki, for an update on recent global environmental regulation developments and our ESG performance.
Thank you, Nicos. Please turn to Slide 10 where we highlight our progress across the ESG front. At the latest IMO Marine Environment Protection Committee last year, no consensus was reached on the net zero framework with member states remaining divided between those who consider it fit for purpose and those calling for amendment. The committee agreed to continue intersessional work on the framework with a view to achieving consensus ahead of the release date in November 2026. Star Bulk remains actively engaged through its participation in industry organization initiatives, contributing to efforts aimed at advancing practical, realistic and effective greenhouse gas reduction regulations with consistent global application. Star Bulk has joined a newly established advisory council within the Poseidon Principles Association. The council will serve as a forum for dialogue between the 36 signatory banks and a select group of leading owners and maritime stakeholders on technical issues and the implementation of the principles.
On the social front, during Q1 2026, we engaged extensively with all company departments in analyzing the results of our employee survey and developing an action plan to preserve our strengths and improve areas where we can do better. We continue our efforts to embed business intelligence into our day-to-day operations through the expansion of our custom-built company platform, the adoption of new off-the-shelf AI tools, and the use of AI capabilities within our existing systems. Recognizing the cybersecurity risk associated with our digitalization, we have completed an external risk assessment to define the required controls for the use of AI. We are also developing company policies for the responsible use of AI and have included the already deployed AI tools in our upcoming penetration testing. I will now hand the floor to our Head of Market Research, Constantinos Simantiras, for our market update and his closing remarks. Thank you, Charis. Please turn to Slide 12 for a brief update on supply.
During the first four months of 2026, a total of 14.2 million deadweight was delivered and 1.5 million deadweight was sent for demolition, or a net fleet growth of 12.7 million deadweight, or 1.3% year-over-year. The newbuilding order book has increased over the past three years but remains relatively low at 13.2% of the fleet. Total dry bulk contracting remains under control despite the recent pickup in Capesize orders, reflecting limited shipyard availability through late 2028, high shipbuilding costs and ongoing uncertainty around green propulsion technologies. Meanwhile, the fleet continues to age and by the end of 2027, approximately 50% of the existing fleet will be over 15 years old. Moreover, the rising number of vessels undergoing the third special survey is estimated to reduce effective fleet capacity by more than 0.5% per annum during 2026 and 2027. The average steaming speed of the fleet remained slightly elevated through most of Q1, supported by firm freight rates, but has corrected below 11 knots following the recent surge in bunker prices amid Middle East tensions.
Finally, global port congestion has fully normalized and is now following seasonal patterns. Going forward, congestion is expected to have a limited impact on the supply and demand balance. There could still be some upside from delays related to new iron ore mining hubs in West Africa. Let us now turn to Slide 13 for a brief update on demand. According to Clarksons, total dry bulk trade during 2026 is projected to expand by 1.3% in tons and 2.5% in ton-miles. We continue to operate against the backdrop of heightened geopolitical uncertainty with the trajectory and duration of the Middle East conflict being difficult to predict, while dry bulk trade exposures to the Strait of Hormuz remain relatively limited. Disruptions to oil and LNG markets could be prolonged, pushing LNG prices higher and weighing on the global macroeconomy. Reflecting these risks, the IMF recently revised its 2026 global growth forecast down to 3.1% from 3.3% in January.
The U.S. forecast was lowered to 2.3% from 2.4% and China to 4.4% from 4.6%. Turning to dry bulk demand, total volumes rose approximately 3.5% year-on-year during the first quarter, supported by robust iron ore and minor bulk flows alongside record grain and bauxite shipments. Ton-miles expanded at a faster pace driven by strong Atlantic exports and longer Pacific trading patterns. In China, GDP growth exceeded expectation at 5% in Q1, underpinned by strong industrial production, manufacturing activity and exports. Chinese dry bulk imports rose 8.1% against a low base last year; however, domestic consumption remained relatively weak. On the geopolitical front, President Biden's summit with President Xi in Beijing delivered a constructive signal for U.S.-China relations and international trade. Dry bulk imports from the rest of the world continued the recovery with a 10th consecutive quarter, expanding 3.1% year-on-year on the back of a weaker U.S. dollar and increased restocking activity.
Breaking it down by key commodities, iron ore trade is projected to expand by 1.1% in tons and by 1.6% in ton-miles during 2026. China's steel production declined by 4.5% year-on-year to the first quarter due to policy curbs on steel supply, the ongoing real estate slowdown and rising protectionism. At the same time, domestic iron ore production remained broadly flat while stockpiles increased to record levels, creating downside risk for the second half of the year. Having said that, the iron ore market remains supply driven and ton-miles are expected to receive support from the continued ramp-up of Simandou and stronger Brazil exports. Coal trade is projected to contract by 1.6% in tons and by 0.5% in ton-miles during 2026. This forecast is likely to be revised upwards as tighter energy supply is expected to strengthen coal demand throughout the year. Even disruptions to LNG trade together with broad-based inflation across energy commodities have improved the demand outlook for coal, prompting several countries to ease restrictions on its use and production.
Chinese thermal power generation rose 3.6% in Q1, while domestic coal production has been broadly flat over the past three quarters, creating a favorable setup for imports. Furthermore, a developing El Niño is expected to drive hotter weather in the northern hemisphere summer, further lifting energy consumption in the short term. Grain trade is projected to expand by 3.7% in tons and by 6.8% in ton-miles during 2026. Total grain exports increased by 9.1% year-on-year during Q1 supported by strong export shipments from all major exporters. Spillover from October's U.S.-China trade truce drove seasonally strong U.S. exports and Beijing's pledge to buy approximately 25 million tons of U.S. soybeans annually through 2028, which should continue to support mid-sized vessels and ton-miles. Minor bulk trade is projected to expand by 2.4% in tons and by 3.1% in ton-miles during 2026. Export volumes increased by 8% year-on-year during Q1 despite lower fertilizer shipments from the Middle East, while bauxite exports from Guinea continued their strong performance and expanded 23% year-on-year, generating strong ton-miles for the Capesize fleet.
As a final comment, we remain optimistic about the dry bulk market outlook supported by a favorable supply backdrop, new long distance Atlantic exports and tightening environmental regulation. In a period of heightened geopolitical uncertainty, we remain focused on actively managing our diversified scrubber-fitted fleet to capitalize on market opportunities and deliver value to our shareholders. Without taking any more of your time, we will now pass the floor over to the operator to answer any questions you may have.
分析師問答
Thank you. We will now be conducting a question-and-answer session. Our first question today is coming from Omar Nokta from Clarksons Securities. Your line is now live.
Thank you. Wanted to ask about the capital allocation policy of now paying out 100% of operating cash flow less the CapEx and debt service. You have obviously got plenty of cash to give you that flexibility. Leverage is a bit low now. Plenty of unencumbered ships. But I wanted to ask the stock, while it has done well, is still at a discount to NAV. And in the past, you have leaned on asset sales to try to crystallize that difference between the equity and the NAV. How do you kind of think about that today? Are sales still something under consideration from here? Or is now the time to really maximize your exposure to the market? And just regarding the agreement you have with Diana to acquire the 16 ships, if they succeed in acquiring Genco, just in terms of the price, $470 million that you have agreed on — my question is, is that fixed? Is that fixed at the moment? And is it based off whatever Diana ends up paying if it succeeds or is it based off of the current —
I think Omar, it is Hamish Norton. We are still planning on selling smaller, older and less fuel efficient ships. Frankly, the market is pretty hot. And if you need to sell these ships at some point, this is as good a time as any to sell them. The capital that we generate from selling ships could be used for repurchases of shares, it could be used for — we might keep some of it for use later when there are better opportunities. We think there will be some very good opportunities. And I think with our operating cash flow, we intend to keep paying that out on a current basis. Regarding the agreement with Diana to acquire the 16 ships, the agreement is for a specific price and that price is fixed.
Thank you. Our next question today is coming from Christopher Robertson from Deutsche Bank. Your line is now live.
Hi, Christos. Very strong start to the year. We had a lighter than usual seasonal pullback during the first quarter, very strong indicators here with the Capesize FFA over 40 thousand in May and over 30 thousand for the remainder of the year. But at the same time, we are seeing a little bit of decelerating economic activity in China in April with regards to industrial production. Petros, you mentioned some of the El Niño concerns and other things. So kind of putting all this together, what is your expectation for the second half of the year, which is usually seasonally stronger? Do you think that holds this year? Do you think there has been pulling forward of demand in the first half of this year that could smooth out demand for the rest of the year? And for rates for the rest of the year, do you see any policy support in China that could help boost demand for dry bulk commodities while they potentially focus on boosting economic strength? Kind of what is the outlook there?
Hi, Chris. We are actually pretty bullish for the balance of this year. And we are bullish for next year as well. I think the situation in the Persian Gulf is actually helping, for now, for as long as things stand as they are. Oil prices are up, and that makes vessels go slower, which is good for supply. We have about 2% of the fleet in the Persian Gulf, which reduces supply again. The Red Sea remains, and more ton-miles. The increased oil prices actually incentivize use of coal. So you see that the reduction in the coal trade is actually minimal right now and might even turn around. There are all kinds of inefficiencies, but this is not the only factor. You saw that during the first five months, demand increased by 5.1% in ton-miles. And this is only the first half, as you said. We continue to believe that the second half is going to be strong. There are many positive reasons why the market should continue to be strong this year.
China has been doing pretty well up to now. We do not expect to see any slowdown in the very near future. If there is going to be a problem going forward, that may be the order book, I would say, or in case the Persian Gulf opens up — I think for a while it is going to be positive because psychology will be lifted and oil prices will go down, which will help trade. All the positives I mentioned over a period of eight to twelve months may start slowing down. For now, we are very positive.
And we are actually positive for the next 18 months. Thank you, Petros. Just following up, with regards to potentially strong El Niño, using examples in the past, let's say in regions that are prone to whether it is drought conditions or on the other side flooding conditions, which markets should we be on the lookout for weather-related disruptions that could potentially impact trade flows?
Well, short term we think that the El Niño will be positive because it will create higher temperatures in the northern hemisphere and therefore there will be more need for air conditioning and therefore more energy. Now, for the winter, this might reverse things if we have a warmer winter. As far as droughts are concerned, this is a potential risk, especially for grain crops. I was talking about it to our analysts, and he said that perhaps people are foreseeing what may happen if El Niño arrives; they may be stocking up right now. This is possible. On the other hand, we may have positive developments on the Panama Canal; maybe the water levels will rise and there will be less restrictions. So there are positives and negatives.
All right. Got it. Thank you for the color. I appreciate it.
Our next question is coming from Stephanie Moore from Jefferies. Your line is now live.
Great. Good morning, everybody. I know that when we have talked in the past and certainly when we all spoke publicly together on your first quarter call, there was a lot of optimism about the underlying dry bulk market for 2026. But even since that fourth quarter trend a lot has changed from a geopolitical standpoint and certainly enhanced geopolitical conflict around the globe. Could you talk a little bit about how anything might have changed in terms of your general optimism about the dry bulk market for the rest of this year, especially navigating what is obviously a heightened geopolitical environment? And maybe also discuss whether, if some of these conflicts persist, that could create stress on emerging markets from higher energy costs and whether that ultimately could impact demand? And lastly, maybe comment on your appetite for additional newbuilding orders given higher shipyard costs at this point and the general market dynamics.
Thank you, Stephanie. I did talk a bit about the Persian Gulf earlier; I think that is positive for the short term and potentially longer depending on how that goes. The Ukrainian war is not affecting the market as much anymore. It did help the market at the beginning because, for example, Russian coal had to travel longer distances to be exported and that was positive. It was negative for grain trade coming out of the Black Sea, but we do not think that is as important now because it is being overshadowed by the Persian Gulf. What I see potentially very positive is that in case any of these wars stop, we may see very strong reconstruction demand, which would start later in time. My view is that this year is going to be very strong and next year will be strong as well. If any of the wars end, it would help shipping because it would create a lot of demand. It will all come in stages and depend on how things evolve.
On the risk side, if oil prices go much higher, say $150 or more, that would damage the world economy and not just emerging economies, and it would discourage trade. That scenario would be negative because higher commodity prices and higher energy costs would impede economic development and reduce demand for commodities. Regarding appetite for newbuild orders, newbuilding prices have gone up a lot and you need very high income levels for long periods to achieve attractive IRRs. The idea here is not to continue with newbuilds until prices start falling. We are patient. We ordered the eight because our Kamsarmax fleet was getting older compared to the rest of the fleet and we needed to lower the average age of our fleet. At the same time we are judiciously selling inefficient vessels, as Hamish mentioned earlier. For as long as prices keep rising, we see better opportunity to sell rather than buy or order.
Thank you. We have reached the end of our question-and-answer session. I would like to turn the floor back over for any further or closing comments. No further comments, operator. Thank you very much. Thank you, everyone. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. Thank you.