STAR Bulk Carriers, the largest US-listed owner of dry bulk tonnage, has said that it holds a “constructive” view of the sector’s prospects.

The company’s relatively positive assessment of the market came as the owner of 150 vessels reported a sharp reduction in first-quarter profitability against a backdrop of seasonally weaker rates.

“Despite the global market volatility, and the uncertain effect of tariffs on global economic growth and trade, we are constructive about the medium-to-longer-term prospects of our industry,” said chief executive Petros Pappas.

He said that this view stemmed primarily from the supply side of the equation — supported not only by a “favourable” newbuilding orderbook, but also by the International Maritime Organization’s recent decision to implement global market-based measures to reduce GHG emissions.

Star Bulk saw this as “a decision that will effectively reduce supply of tonnage”.

The Greece-based owner continued to dispose of older and smaller tonnage that it said does not fit its commercial profile.

In the last three to four months it has agreed to sell an additional five supramax bulkers, a segment in which its presence expanded greatly last year with the merger with Eagle Bulk, the supramax and ultramax specialist.

Pappas said that the company had “significantly surpassed” its target of achieving $50m in cost savings and revenue synergies in the wake of the merger, which he said was “delivering meaningful cost savings to our shareholders”.

First-quarter revenues dipped by 11% to $230.6m and the owner eked out a marginal profit of $462,000, versus net income of $74.9m in the same three months of 2024.

The company’s average daily time charter equivalent rate per vessel over the period was $12,439, a far cry from the $19,627 averaged during last year’s first quarter.

But it was the kamsarmaxes, panamaxes, ultramaxes and supramaxes that suffered the biggest drop, as the newcastlemaxes and capesizes in the fleet averaged $20,245 in the latest quarter.

Adjusted for non-cash items such as an unrealised gain on forward freight agreements and bunker swaps as well as certain write-offs, the adjusted result was a $7.7m loss versus a quarterly adjusted profit of $73.2m a year ago.

“With over $500m in liquidity, net debt below scrap value and 13 unencumbered vessels, we believe we are well-positioned to seize opportunities in the dry bulk market,” Pappas said.

The owner declared a dividend of $0.05 per share and also said it had repurchased about 1.3m shares at prices “significantly below” net asset value.