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    Doug Smith

    Research Analyst at Everest

    Doug Smith is Chairman at Everest Group, a leading global research and consulting firm, where he oversees strategic growth and advisory initiatives within the business services and technology sector. Based in Dallas, Texas, Doug brings decades of executive experience in professional services, specializing in guiding client organizations through transformational change and digital strategies. Since joining Everest Group, he has played a pivotal role in expanding the firm's reach and impact, drawing upon a background that includes leadership roles in top-tier consulting organizations. Doug holds extensive professional credentials relevant to his field; however, specific securities licenses or FINRA registrations do not apply to his current consulting and advisory focus.

    Doug Smith's questions to Star Bulk Carriers (SBLK) leadership

    Doug Smith's questions to Star Bulk Carriers (SBLK) leadership • Q1 2025

    Question

    Doug Smith from Everest asked about the persistently low vessel demolition rates despite fleet growth exceeding demand growth, questioned why older ships being sold are not being scrapped, and asked if environmental regulations will finally act as a catalyst for scrapping.

    Answer

    CEO Petros Pappas explained that scrapping remains low because vessels are still profitable. He attributed the lack of new orders, which could help balance the market, to high vessel prices and uncertainty over future fuels. He noted that the buyers of their older vessels are Chinese and may have a different return threshold. Pappas affirmed that environmental regulations will be a catalyst, not by forcing immediate scrapping, but by slowing vessel speeds and increasing off-hire time for upgrades, which will eventually render the least efficient ships unprofitable and lead to their retirement.

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