Safe Bulkers, Inc. Announces a Five Million Shares of Common Stock Repurchase Program

Rhea-AI Summary

Safe Bulkers (NYSE: SB) has announced a new share repurchase program authorizing the purchase of up to 5 million shares of common stock. This represents approximately 4.7% of the company's outstanding shares and 8.7% of its public float. The program will be conducted in the open market under Regulation 10b-18 safe harbor provisions and funded through existing cash resources. The company maintains flexibility as the program can be modified or terminated at any time and does not obligate the company to purchase shares. This new program supersedes any previous repurchase initiatives.

Positive

• Authorization to repurchase up to 5 million shares, representing 4.7% of outstanding shares
• Program to be funded with existing cash resources, indicating strong liquidity position
• Potential reduction in share count could increase earnings per share for remaining shareholders

Negative

• Program is discretionary with no commitment to actually purchase shares
• Use of cash resources for buyback might reduce funds available for operations or growth

Insights

Financial Analyst

This stock repurchase program signals management's confidence in the company's financial health and their belief that shares are undervalued. The 5 million share buyback represents a significant 4.7% of outstanding shares and 8.7% of the public float. For a company with a market cap of $456 million, this is a meaningful capital allocation decision that could help support the stock price and increase earnings per share through reduced share count. The program's flexibility, with no time commitment and ability to modify/terminate, gives management strategic optionality in execution. While positive for shareholders, the actual impact will depend on the timing and price of repurchases, as well as the company's ability to maintain adequate liquidity for operations given the cyclical nature of the dry bulk shipping industry.

MONACO, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the Company) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that it has authorized a program under which it may from time to time in the future purchase up to 5,000,000 shares of the Company’s common stock. If the maximum number of shares of the Company’s common stock are purchased pursuant to the aforementioned program, it would represent approximately 4.7% of the shares of the Company’s common stock outstanding and 8.7% of its public float.

The program does not obligate the Company to purchase shares of the Company’s common stock and the program may be modified or terminated at any time without prior notice. Any such purchases will be made in the open market in compliance with applicable laws and regulations, and that purchases on the open market will be conducted within the safe harbor provisions of Regulation 10b-18 under the Securities Exchange Act of 1934, as amended. The purchases will be funded using the Company’s existing cash resources. The program supersedes any prior repurchase program of the Company.

About Safe Bulkers, Inc.

The Company is an international provider of marine dry-bulk transportation services, transporting bulk cargoes, particularly grain, coal and iron ore, along worldwide shipping routes for some of the world’s largest users of marine dry-bulk transportation services. The Company’s common stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and in Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, the Company’s growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, business disruptions due to natural disasters or other events, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, changes in TCE rates, changes in fuel prices, risks associated with operations outside the United States, general domestic and international political conditions, uncertainty in the banking sector and other related market volatility, disruption of shipping routes due to political events, risks associated with vessel construction and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Company Contact:
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Tel.: +30 2 111 888 400
Fax: +30 2 111 878 500
E-Mail: directors@safebulkers.com

Investor Relations / Media Contact:
Nicolas Bornozis, President
Capital Link, Inc.
230 Park Avenue, Suite 1536 New York, N.Y. 10169
Tel.: (212) 661-7566
Fax: (212) 661-7526
E-Mail: safebulkers@capitallink.com

FAQ

How many shares can Safe Bulkers (SB) repurchase under its new program?

Safe Bulkers can repurchase up to 5 million shares of common stock under the new program, representing approximately 4.7% of outstanding shares and 8.7% of its public float.

How will Safe Bulkers (SB) fund its share repurchase program?

The share repurchase program will be funded using Safe Bulkers' existing cash resources.

Is Safe Bulkers (SB) obligated to complete the full share repurchase program?

No, the program does not obligate Safe Bulkers to purchase shares and can be modified or terminated at any time without prior notice.

When was Safe Bulkers' (SB) share repurchase program announced?

Safe Bulkers announced the share repurchase program on November 18, 2024.