Star Bulk Carriers Corp, a global shipping company focusing on the transportation of dry bulk cargoes announced that it intends to equip its entire fleet with Exhaust Gas Cleaning Systems (“scrubbers”) before the January 1, 2020 implementation date of the new IMO sulphur emission cap regulation.
StarBulk expects average cost, including installation, to be below $2.0million per vessel. The Company has secured debt financing with an average margin of below 3.0% to cover up to approximately 70% of such cost and expects the remaining amount to be covered from operating cash flow and cash on hand, without raising equity for this purpose.
The Company has also secured contracts with leading shipyards for the installation of such systems, while in approximately 35% of the installations, riding teams are being deployed to carry out the retrofitting works onboard the vessels while at sea, reducing off hire time, as a result of those installations, by 50% to 60%. A month ago, Star Bulk successfully completed the first scrubber installation at sea.
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk’s vessels transport major bulks, which include iron ore, coal and grain, and minor bulks, which include bauxite, fertilizers and steel products.
Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, Greece. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK” and on the Oslo Stock Exchange under the ticker “SBLK R”. On a fully delivered basis, Star Bulk will have a fleet of 111 vessels, with an aggregate capacity of 12.67 million dwt, consisting of 17 Newcastlemax, 20 Capesize, 2 Mini Capesize, 7 Post Panamax, 35 Kamsarmax, 2 Panamax, 16 Ultramax and 12 Supramax vessels with carrying capacities between 52,055 dwt and 209,537 dwt. The Company holds call options and has sold respective put options on 4 Capesize vessels, with exercise dates in early April 2019.