In its Q4 2022 earnings release, Star Bulk Carriers Corp. reported on the state of its balance sheet. During 2022 and January 2023, Star Bulk completed $430.0 million of new refinancings resulting in the extension of the average maturity of its outstanding debt from 3.6 to 4.3 years, interest savings of approximately $5.2 million annually from more competitive margins while leaving it with 13 unencumbered vessels.

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Golden Ocean Group Limited announced last week it had entered into an agreement to acquire six modern 208,000-dwt Newcastlemax bulk carriers equipped with scrubbers for total consideration of $291 million.

It was a good year for Hamburg Commercial Bank (“HCOB”), which reported on a preliminary basis a strong group net result for 2022 of EUR 425 million after taxes (up 21%) driven partially by an increase of net interest income of 19 percent.

Like other earlier beneficiaries of leasing, Höegh Autoliners ASA continues the process of unwinding its bareboat leases through the exercise of purchase options with the intent of reducing the cash capacity cost of the vessels, realizing value gains from the lease purchase options and to have better capacity cost control in an overheated charter market.

The quarterly earnings reports of the majority of shipping companies highlight the fact that the industry has a wished for problem – what to do with its mountains of cash. Of course, capital allocation provides the necessary answers.

Going to extremes, Danaos Corporation cleaned its house of debt creating a proverbial fortress balance sheet. With the container market in steady decline, economic conditions uncertain, and a substantial orderbook to be delivered, the yellow traffic light urged caution.

Last week, Höegh LNG Holdings Ltd. announced that it has signed a new loan facility with a strong group of international banks to refinance the FSRUs Höegh Esperanza and Höegh Gannet, which are both employed on ten-year charters to the Federal Government of Germany.

Last week, Belships ASA announced that it had entered into agreements to acquire three new 64 000 dwt Ultramax bulk carriers which are being constructed at Japanese shipyards with delivery expected to occur in Q4 2024, Q4 2025, and Q1 2026.

The disruption to the tanker trades created by the war in Ukraine has created an immense opportunity for tanker investments. Unfortunately, demand far exceeds supply, but that was not an issue for Pareto Securities, which cleverly worked both sides of a trade, creating a likely win-win transaction for both the seller and buyer.

The highlights from Flex LNG’s Q4 2022 earnings release reflect remarkable achievements by its management team. It all began with the addition of a minimum of 38 years during 2022 to its contractual backlog through the extension of time charters with existing customers.

In his note on DHT Holdings, Inc.’s Q4 earnings, Evercore’s Jon Chappell noted that: “DHT has done most of the heavy lifting on cycle-proofing its capital structure, getting its balance sheet to a place (20% net debt to capital at year-end 2022) where capital returns and fleet investment do not have to be mutually exclusive.”