Athens headquartered Star Bulk Carriers Corp (Nasdaq: SBLK, Oslo: SBLKR) says that it intends to equip its entire fleet with exhaust gas cleaning systems (scrubbers) before the January 1, 2020 IMO sulfur cap implementation date.
Star Bulk expects average cost, including installation, to be below $2.0 million per vessel. It reports that it has secured debt financing with an average margin of below 3.0% to cover up to approximately 70% of the 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 scrubber systems, while in some 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.
On a fully delivered basis the Star Bulk fleet comprises 111 modern vessels with a total capacity of more than 12 million dwt, an average age of 7.5 years and ranging from Supramax vessels to Newcastlemax vessels.
Press Releases: Star Bulk Carrier Corp.
Photo Courtesy: Star Bulk Carrier Corp.