Star Bulk Q2 2025 earnings per share plummet as charter rates and vessel sales fall
Athens-based Star Bulk Carriers recently published its unaudited financial and operating results for the second quarter of 2025.
For the second quarter of 2025, Star Bulk had net income of US$0.04 million, or $0.00 earnings per share, compared to net income for the second quarter of 2024 of US$106.1 million, or US$0.93 earnings per share.
Adjusted net income, which excludes certain non-cash items, was US$13.2 million, or US$0.11 earnings per share, for the second quarter of 2025, compared to an adjusted net income of US$89.1 million for the second quarter of 2024, or US$0.78 earnings per share.
Net cash provided by operating activities for the second quarter of 2025 was US$54.5 million, compared to US$142.6 million for the second quarter of 2024. Adjusted gross operating profit, which excludes certain non-cash items, was US$68.9 million for the second quarter of 2025, compared to US$153.5 million for the second quarter of 2024.
Voyage revenues for the second quarter of 2025 decreased to US$247.4 million from US$352.9 million in the second quarter of 2024 and time charter equivalent (TCE) revenues decreased to US$176.1 million for the second quarter of 2025, compared to US$262.2 million for the second quarter of 2024.
The latter was mainly driven by the decrease in the average number of vessels in the company’s fleet to 147.6 from 155 during the relevant periods and the significantly decreased charter rates.
The TCE rate for the second quarter of 2025 was US$13,624 compared to US$19,268 for the second quarter of 2024, which Star Bulk said is indicative of the weaker market conditions prevailing during the recent quarter.
Results for the second quarter of 2025 include a loss from sale of vessels of US$8.0 million in connection with the completion of vessel sales and the delivery to their new owners. During the second quarter of 2024, Star Bulk recognised an aggregate net gain of US$14.2 million resulting from the completion of vessel sales.
During the second quarter of 2025, Star Bulk incurred a net gain on forward freight agreements and bunker swaps of US$1.4 million, consisting of an unrealised loss of US$0.4 million and a realised gain of US$1.8 million.
During the second quarter of 2024, the company incurred a net gain on forward freight agreements and bunker swaps of US$1.6 million, consisting of an unrealised gain of US$6.9 million and a realised loss of US$5.3 million.
Other operational gains for the second quarters of 2025 and 2024 amounted to US$1.7 million and US$0.1 million, respectively. Star Bulk said the increase was primarily attributable to the settlement of higher insurance claim amounts compared to the corresponding quarter in 2024.
"Star Bulk reported [its] 20th consecutive profitable quarter with net income of US$0.04 million, [gross operating profit] of US$55.9 million, and TCE per vessel per day of US$13,624 in Q2 2025," said Petros Pappas, Chief Executive Officer of Star Bulk.
"Following our stated capital allocation strategy, we declared a US$0.05 per share dividend, marking our 18th consecutive quarter of capital returns, totaling approximately US$1.36 billion to date.
"Beyond dividends, we continued to execute under our share repurchase program, acquiring 3.3 million shares at prices significantly below net asset value, reflecting our confidence in the intrinsic value of Star Bulk and reinforcing our commitment to shareholder value. The share repurchases were funded with proceeds from vessel sales."
Pappas added that Star Bulk continued to refine its fleet in Q2 2025 by selling nine vessels that no longer fit with the company’s commercial profile, thereby bolstering cash reserves.
“Despite near-term challenges due to geopolitical tensions, we remain optimistic about the dry bulk market longer-term, driven by the low order book and IMO regulatory tailwinds,” said Pappas.
“We believe Star Bulk is well prepared, with a versatile fleet, strong balance sheet and proactive approach to take advantage of market opportunities.”
