Star Bulk Carriers (SBLK) has disclosed a new risk, in the Manufacturing category.
Star Bulk Carriers faces significant risks with its five newbuilding vessels, as construction projects like these are prone to delays and cost overruns due to various factors such as equipment shortages, shipyard issues, and unforeseen events. With total payments of $177.5 million expected, financing these vessels relies on securing credit facilities, equity proceeds, and available cash, which poses a challenge if the company cannot access funds on favorable terms. Inability to meet payment obligations could lead to default, loss of previously made payments, and additional penalties, severely impacting Star Bulk Carriers’ financial health and operational results.
The average SBLK stock price target is $28.00, implying 17.89% upside potential.
To learn more about Star Bulk Carriers’ risk factors, click here.
