Star Bulk stays in the black amid Q1 market downturn

The US-listed Greek bulk carrier owner reported a daily time charter equivalent (TCE) of US$12,439 in Q1 2025, down sharply from US$19,627 in the same period last year, reflecting the broader softness in the dry bulk market. Still, the company posted a net income of US$0.5M, a steep decline from US$74.8M in Q1 2024.

“Despite the seasonal market weakness during Q1 2025, Star Bulk remained in the black,” said chief executive Petros Pappas.

Voyage revenues showed resilience, totalling US$230.6M in Q1 2025, compared with US$259.4M a year earlier. As of the end of the quarter, the company’s liquidity stood at approximately US$500.0M.

Discussing market prospects, Mr Pappas acknowledged global volatility and the uncertain effect of trade tariffs but expressed optimism about the medium- to long-term outlook.

He cited the relatively low orderbook – estimated at about 10% of the global fleet – and IMO’s recent decision to implement global market-based measures to reduce greenhouse gas emissions, which he said will “effectively reduce supply of tonnage.”

Fleet renewal in focus

Star Bulk continued its fleet renewal strategy by divesting older and mid-aged Supramax vessels that no longer fit its commercial profile. “We continue to selectively dispose of older and smaller tonnage,” noted Mr Pappas, confirming agreements to sell an additional five Supramax vessels.

In Q1 2025, the company agreed to sell 2005-built Star Omicron and 2006-built Strange Attractor. Between April and mid-May, Star Bulk also sold 2011-built Puffin Bulker, Star Petrel, and 2009-built Star Canary.

Upon completion of all pending sales, Star Bulk will hold 13 unencumbered vessels and expects to receive total net sale proceeds of approximately US$38.6M across Q2 and Q3 2025.

The company has also been active on the newbuilding front, with five Kamsarmax vessels scheduled for delivery through the first half of 2026.

Star Bulk currently owns a fleet of 150 bulk carriers with a combined capacity of 14.7M dwt.

Share buybacks

Mr Pappas disclosed that proceeds from vessel sales were used to repurchase approximately 1.3M shares “at prices significantly below net asset value, capitalising on recent market dislocations to enhance shareholder returns.”

Notably, Star Bulk’s stock has attracted interest from high-profile investors, including John Coustas-led Danaos Corp and John Fredriksen, both of whom have recently increased their stakes in the company.

The company also declared a US$0.05 per share dividend, marking its 17th consecutive quarter of capital returns to shareholders.