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Hamish Norton, President of Star Bulk Carriers (NASDAQ:SBLK), Co-CFOs Christos Begleris and Simos Spyrou, and Head of Research Constantinos Simantiras joined J Mintzmyer's\xa0Value Investor's Edge Live\xa0on June 8, 2022, to discuss the dry bulk markets and forward prospects and capital allocation. Star Bulk Carriers is the largest US-listed dry bulk company with 128 vessels on the water. We discussed overall dry bulk fundamentals, ranging from China's impact on Capesize markets to the impact of the Ukraine invasion on midsize trade routes in grain and coal. We also reviewed the economics of SBLK's scrubber program and current capital allocation priorities.
This interview and discussion is relevant for anyone with dry bulk investments or interest in the overall sector, including Diana Shipping (DSX), Eagle Bulk (EGLE), EuroDry (EDRY), Genco Shipping (GNK), Grindrod Shipping (GRIN), Golden Ocean (GOGL), Navios Maritime Partners (NMM), Pangaea Logistics (PANL), Safe Bulkers (SB), and Seanergy Maritime (SHIP).
Topics Covered


(0:00)\xa0Intro/Disclosures


(1:00)\xa0Current dry bulk market conditions and prospects?


(5:30)\xa0More net optimistic or concerned about China developments?


(7:30)\xa0Midsize has been steady - will Ukraine disruptions threaten rates?


(10:00)\xa0More bullish vs. our last discussion in January 2022?


(11:30)\xa0Are asset values getting overextended?


(13:45)\xa0Are demolition values sustainable or too high?


(16:45)\xa0How long would it take to order newbuild vessels?


(18:00)\xa0Scrubber economics? Any desire to lock in the profit spread?


(22:00)\xa0Capital allocation priorities: Will SBLK be paying down more debt?


(25:15)\xa0Which dry bulk vessels are currently the most attractive?


(27:00)\xa0Logic behind the share sale and repurchase arbitrage?


(29:00)\xa0Any share issuance planned outside of direct asset purchases?


(30:00)\xa0Potential to repurchase shares? Needed criteria?


(32:00)\xa0What differentiates SBLK from peers? Why invest here?


(36:45)\xa0Promising propulsion technologies or other ESG projects?


(39:00)\xa0Risk of significant share overhang due to large Oaktree position?