GOGL - Star Bulk: Still A Great Way To Bet On A Robust Dry Bulk Market
2024-03-20 12:28:30 ET
Summary
- I expect the bulk carriers market to remain strong with a growing demand for iron ore, bauxite, and coal. SBLK is a great way to play that theme.
- SBLK owns 122 vessels and an average fleet age of 10.5 years. The company maintains the lowest daily OPEX compared to its peers.
- In 4Q23 the company achieved a composite $18,296/day TCE. It is lower by 6.6% than 4Q22, although it is 15% higher than the FY23 average TCE.
- SBLK/EGLE merger is expected to close in 1H24. The next step is the EGLE special meeting held on April 05, 2024, to vote on the merger proposal.
- I own SBLK shares, so my verdict remains unchanged. I give the company a buy rating.
Note: I previously covered Star Bulk Carriers ( SBLK ). My previous article discussed the company’s strengths, such as excellent solvency and liquidity metrics, revenue structure utilizing time charters and voyage charters, and fleet quality. I also pointed out supply chain disruptions and rising major bulk demand as tailwinds for dry bulk shipping. This article dissects SBLK fleet changes, FY23 financial results, and updates company's valuation.