Rates for Capes Plunge While Trade War Forces Panamax Futures Down, What’s Next for SBLK Investors?

Will the Trade War Cast a Shadow on Star Bulk’s Earnings Momentum?

Korea Stock Market Monthly Recap #26 (June 2018)

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Equity Bottom-Up

Star Bulk Carriers (SBLK US) - Earnings Improvement already in the Price<ul><li>
Earnings benefit from lower opex: Star Bulk reported total revenue of USD 60m in 3Q16 – in line with our estimate of USD 59m, but down 13% over 3Q15. The revenue corresponds to the daily average TCE of USD 7,558pd in 3Q16, compared with USD 8,691pd in 3Q15. We believe 4Q earnings will benefit from the surge in Capesize rates that have risen to 19,000pd earlier this month, as is reflected in the Baltic Dry index, which has…</li></ul>

Star Bulk Carriers (SBLK US) - Earnings Improvement already in the Price
Earnings benefit from lower opex: Star Bulk reported total revenue of USD 60m in 3Q16 – in line with our estimate of USD 59m, but down 13% over 3Q15. The revenue corresponds to the daily average TCE of USD 7,558pd in 3Q16, compared with USD 8,691pd in 3Q15. We believe 4Q earnings will benefit from the surge in Capesize rates that have risen to 19,000pd earlier this month, as is reflected in the Baltic Dry index, which has…

Star Bulk Carriers (SBLK US) - Earnings Improvement Already in the Price