Excluding asset-impairment charges related to the sale of a capesize ship, Star Bulk post a third-quarter per-share profit of 12 cents, easily surpassing the Wall Street consensus target of a 1-cent-per-share profit.
Star Bulk has taken a conservative approach to chartering. It has fixed 100% of its fleet's operating days into charter contracts for the rest of 2009, and 80% for 2010. Nokta pointed out in a note to clients that Star Bulk has been able to rid itself of charterers who have been in financial trouble , replacing them with more "credit worthy counterparties, such as Cargill," the privately held grain distributor.
Still, investors sent Star Bulk's stock price down as much as 6% during the session. In the final hours of trading, the shares clawed back some of those losses, closing the day at $3.40, down 2.6%, on more than double the daily average volume.
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