Star Bulk Gains Ground As Profits Rise With Commodity Boom, Firm Shipping Rates By Investing.com

© Reuters.

By Dhirendra Tripathi

Investing.com – Star Bulk Carriers Corp (NASDAQ 🙂 stock jumped more than 3% on Wednesday as the shipping company rode booming demand amid a shortage of ships, helping to to eightfold its profits in the third quarter and to comfortably exceed estimates.

Adjusted profit was $ 225 million, up from about $ 27 million in the third quarter of 2020.

Global shipping rates have reached record highs as demand for agricultural and non-agricultural commodities such as crude, coal, steel, iron ore and consumer goods soared. The labor shortage drove wages up, and shipping rates also firmed for this reason. Consumer demand, fueled by Covid-19, has remained high even as the pandemic has abated.

Star Bulk specializes in the sea freight of iron ore, coal and grain.

CEO Petros Pappas said the overall outlook for the dry bulk market remains constructive, highlighting strong global growth and increased infrastructure spending which has led to a healthy increase in demand for raw materials.

The company said high raw material prices prompted to expand production and increase exports.

The company sees demand for dry bulk cargoes from the coal, iron ore and grain trade, including US soybean and corn exports. Third-quarter revenue more than doubled year-over-year to $ 416 million, but fell short of estimates.

Disclaimer: Fusion media would like to remind you that the data contained in this site is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by the exchanges but rather by market makers. Therefore, the prices may not be exact and differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media assumes no responsibility for any business losses that you may incur as a result of the use of such data.

Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.

Source link

About Natalee Broderick

Natalee Broderick

Check Also

India to record one of the highest growth rates, says Ashima Goyal

Prominent economist Ashima Goyal said on Sunday that India is likely to have one of …