Star Bulk Carriers Corp. announced an amendment to its dividend policy, which has been in place since 2021. Under the revised policy, the company may now allocate up to 60% of its 'Cash Flow' towards quarterly shareholder dividends. Cash Flow is defined as cash flow from operations less debt amortization, less maintenance/upgrade CAPEX, and less any deficit of cash below $2.1 million per owned vessel.
The company's Board of Directors also cancelled the existing $50.0 million share repurchase program and authorized a new share repurchase program of up to an aggregate of $100.0 million on December 13, 2024. This new program maintains the same conditions as the previous one, providing increased flexibility for capital deployment.
Pursuant to the new program, Star Bulk bought back 293,474 shares at an average price of $15.5, utilizing proceeds from previous vessel sales. These repurchased shares were subsequently withdrawn and cancelled, resulting in 117,730,112 shares issued and outstanding. CEO Petros Pappas commented that the amendment allows the company to take advantage of market inefficiencies where its shares trade at prices more attractive than corresponding dry bulk vessels.
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