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

© Reuters.

By Dhirendra Tripathi – 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.

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