Star Bulk Carriers Corp.

Thank you for standing by, ladies and gentlemen, and welcome to Star Bowl Carriers Conference Call on the fourth quarter 2023 financial results. We have with us Mr. Petros Papas, Chief Executive Officer, Mr. Haynes Norton, President, Mr. Simo Spero, and Mr. Christos Beglaris, Co-Chief Financial Officers, Mr. Nikos Resko, Chief Operating Officer, and Mrs. Charis Plankatonaki, Chief Strategy Officer of the company. At this time, all participants are in listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. We will now pass the floor over to your speakers today. Mr. Spero, please go ahead, sir.

Thank you, operator. I'm Simo Spero, Co-Chief Financial Officer of Starball Carriers, and I would like to welcome you to our conference call regarding our financial results for the fourth quarter of 2023. Before we begin, I kindly ask you to take a moment to read the Safe Harbor Statement on slide number two of our presentation. In today's presentation, we will go through our Q4 results, financings, and share buybacks, a short update on the Eagle Belt transaction, fleet developments and operations, the latest on the ESG front, and our views on industry fundamentals before opening up for questions. Let us now turn to slide number three of the presentation for a summary of our fourth quarter 2023 highlights. Net income for the fourth quarter amounted to approximately 40 million and adjusted net income of approximately 64 million. Adjusted EBITDA was 114 million for the quarter. For the fourth quarter, as per our existing dividend policy, we declared a dividend per share of 45 cents with record date as of March 12th, 2024. Since June 2021, we have returned to shareholders 1.1 billion in dividend distributions and over 400 million in share buybacks. Our total cost today stands at 312 million pro forma for the delivery of our four remaining sold vessels and repayment of their respective debt, as well as the bridge facility. Meanwhile, Our pro forma total debt stands at approximately $1,121,000,000 translating in a pro forma net debt of approximately $800,000,000. On the top right of the page, you will see our daily figures per vessel for the quarter. Our time charter equivalent rate was $18,296 per vessel per day. Our combined daily OPEX and net cash GNA expenses per vessel per day amounted to $6,081. Therefore, our TCE, less OPEX and GNA is approximately $12,215 per day per vessel. Looking towards fleet renewal, in the last 12 months, we have agreed to sell 17 vessels with an average age of 13.7 years and received insurance proceeds from one vessel which was declared as a constructive total loss. Total gross proceeds from these vessels were $366 million. During the fourth quarter, we completed a $380 million repurchase of 20 million shares from Oak Tree Capital. The shares were repurchased and subsequently canceled. The Oak Tree share buyback was funded from vessel sale proceeds of $254 million, plus $76 million of new debt financing, $13 million of proceeds from the ATM, and $38 million cast released from the minimum cash threshold of $2.1 million per vessel for the 18 vessels that have been sold. Slide 4 graphically illustrates the changes in the company's cash balance during the fourth quarter. We started the quarter with $302 million in cash and generated positive cash flow from operating activities of $88.6 million. After including debt proceeds and repayments, CAPEX payments for ESD and ballast water treatment system installations, The third quarter dividend payment, the Oak Tree share repurchases, and ATM issuances, we arrived at a cash and cash equivalent balance of $282 million at the end of the quarter. This figure includes a $20 million adjustment as this amount was released from the vessel sales and went against the financing of the Oak Tree share buyback. Slide 5. illustrates a summary of the recently announced Eagle Bulk transaction. We have been working closely with Eagle Bulk team and our lawyers to be able to complete the merger in early April 2024. This transaction will create a global leader in dry bulk shipping with a large diversified and scrubber fitted fleet of 167 vessels. This is a non-stop transaction on NAV to NAV basis with a combined market cap of approximately 2.6 billion. EGLE shareholders will receive 2.6211 shares of StarBulk per share of EGLE. StarBulk shareholders will own approximately 71% and EGLE shareholders will own approximately 29% of the combined entity. Since the deal was announced, we filed with the SEC an F4 registration statement with respect to the shares of Starbucks common stock to be issued to Eagle shareholders pursuant to the Eagle Merchant Agreement, which became effective on February 12, 2024. The Board of Directors of Eagle fixed February 12, 2024 as the record date for the determination of Eagle shareholders entitled to receive notice of and vote at the EGLE Special Meeting. The EGLE Special Meeting will be held on April 5, 2024. Subject to EGLE shareholder approval and customary closing conditions, we expect that the EGLE merger will close shortly thereafter. I will now pass the floor to our COO, Nikos Reskos, to talk about our operational performance and an update on our fleet renewal and CAPEX update.

Thank you, Simo. Please turn to slide six, where we provide an operational update. Operating expenses excluding non-recurring expenses was $4,977 for Q4 2023. Net cast G&A expenses were $1,104 per vessel per day for the same period. In addition, we'll continue to rate at the top amongst our listed peers in terms of right ship safety score. Please turn to slide seven for an update on our fleet sales and our recent new building orders. In December, we entered into an additional three firm shipbuilding contracts with King Dow Shipyard, with a construction of 82,000 Kamsomax new building vessels at competitive price levels, having increased the size of our order from two to five vessels. Vessels are being built in China to a high specification, fitted with the latest fuel-efficient engine coming into production in 2024, a shock generator reducing the energy requirements whilst at sea, and alternate marine power provisions. The above measures ensure best-in-class fuel consumptions and emissions. On the vessel sales front, we continue disposing of vessels opportunistically at historically attractive levels, having agreed during Q4 to sell seven vessels for a total gross proceeds of 122 million, reducing our average fleet age and improving overall fleet efficiency. During Q1, we agreed to sell another two cave-sized vessels, the Big Bang and the Pantagruel, for a total gross proceeds of 36.3 million. Furthermore, we took delivery of two out of the six long-term chartering Ecovessels, that will be delivered to us throughout 2024, and specifically, a Tunisian Zushan Camstramax and a Tunisian Cebu Ultramax. Considering the aforementioned changes in our fleet mix, we operate one of the largest dry bag fleets amongst U.S. and European listed peers with 122 vessels on a fully delivered basis with an average age of 10.5 years. Slide 8 provides a fleet update and some guidance around our future dry dock and the relevant total off-hire days. On the top right of the page, we provide a CAPEX schedule illustrating our new building CAPEX and vessel energy efficiency upgrade expenses, with 100% of our fleet now being ballast water treatment systems fitted. Our expected dry dock expense for 2024 is estimated at $30.5 million for the dry docking of 40 vessels. In total, we expect to have approximately 950 off-hire days for the same period. Based on our latest construction schedule, our new building vessels are expected to be delivered in Q4 2025, Q2 and Q3 2026. In line with EXI-CII regulations, we will continue investing and upgrading our fleet with the latest operational technologies available, aimed at improving our fuel consumption and reducing our environmental footprint, further enhancing the commercial attractiveness of the Starbuck fleet. Regarding our energy-saving devices program, we have completed and tested retrofits on 31 vessels, with 16 more to follow for retrofit by the end of 2024. The above numbers are based on current estimates around dry dock and retrofit planning, vessel employment, and yard capacity. Finally, we're working together with Eagle Management towards a seamless integration of the ship management platforms from April 2024 onwards, should the merger receive shareholder approvals. I will now pass the floor to our Chief Strategy Officer, Haris Plakantonaki, for an ESG update.