Safe Bulkers, Inc. Announces Agreement for the Acquisition of One Japanese Kamsarmax Class Dry-bulk Vessel
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Insights
The acquisition of a new Kamsarmax class vessel by Safe Bulkers, Inc. reflects a strategic investment in the company's fleet expansion and renewal. This move is particularly significant as it demonstrates the company's commitment to environmental sustainability, complying with the latest international regulations for greenhouse gas emissions and NOx emissions. This alignment with ESG (Environmental, Social and Governance) principles can enhance the company's reputation and potentially provide a competitive edge in the industry.
From a financial perspective, the investment in energy-efficient vessels could lead to reduced operational costs over time due to lower fuel consumption. This efficiency gain is likely to improve the company's profitability margins. However, the capital expenditure for the new vessel and the impact on the company's cash flow and debt levels must be considered. The timing of the delivery and the company's ability to integrate the new vessel into its operations without disruption are also critical factors.
For investors, the focus on ESG strategy could attract ESG-focused funds and stakeholders interested in sustainable investments. In the long-term, the company's positioning as an environmentally conscious player might benefit from regulatory tailwinds and consumer preference shifts. However, investors should also be aware of the risks associated with the shipping industry's cyclical nature and potential market volatility affecting freight rates and vessel values.
The maritime shipping industry is currently undergoing significant changes due to increasing regulatory pressures to reduce environmental impact. Safe Bulkers, Inc.'s proactive approach in acquiring vessels that comply with IMO GHG-EEDI Phase 3 and NOx-Tier III regulations is an indicator of the company's strategic foresight. By expanding its fleet with more environmentally efficient vessels, the company is positioning itself to meet future demand that may prioritize sustainability.
The industry trend is shifting towards greener shipping solutions and Safe Bulkers' investment in methanol dual fuel technology for two of its newbuild vessels illustrates a forward-thinking approach to alternative fuels. This could set a precedent in the industry and signal a shift in the technological paradigm of maritime transport. Stakeholders, including customers and investors, may view this as a positive development, reflecting the company's adaptability to emerging trends.
It is important to note that the capital-intensive nature of the shipping industry requires careful financial planning. The company's ability to balance fleet renewal with financial stability will be a key factor in assessing the long-term success of this strategy.
Compliance with environmental regulations is becoming increasingly critical in the maritime sector. Safe Bulkers, Inc.'s decision to invest in a vessel that meets the GHG-EEDI Phase 3 and NOx-Tier III standards is a testament to the company's commitment to reducing its ecological footprint. The environmental benefits of such vessels include lower greenhouse gas emissions and reduced nitrogen oxide emissions, contributing to global efforts to combat climate change.
The adoption of advanced energy efficiency characteristics in new vessels can also have a ripple effect on industry standards, potentially raising the bar for what is considered environmentally responsible shipping. By aligning its fleet renewal strategy with stringent environmental regulations, Safe Bulkers is not only adhering to current standards but is also preparing for future regulatory enhancements.
While the environmental impact of these decisions is positive, it is essential to consider the cost implications and the potential need for additional training for the crew to operate these advanced vessels. The long-term operational savings must be weighed against the initial investment and ongoing maintenance costs associated with new technology.
MONACO, Dec. 19, 2023 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the Company) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that it has entered into an agreement for the acquisition of a Japanese, 82,000 dwt, dry-bulk, Kamsarmax class vessel with a scheduled delivery date within the first half of 2026.
The newbuild vessel is designed to meet the Phase 3 requirements of Energy Efficiency Design Index related to the reduction of greenhouse gas emissions (“GHG-EEDI Phase 3”) as adopted by the International Maritime Organization, (“IMO”) and also comply with the latest NOx emissions regulation, NOx-Tier III (“NOx-Tier III”). This newbuild vessel is a sister vessel to a number of newbuilds in our orderbook with advanced energy efficiency characteristics resulting to lower fuel consumption.
The Company has already taken delivery of seven IMO GHG-EEDI Phase 3 – NOx-Tier III vessels. Including this agreement, the Company has an outstanding orderbook of eight newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries three in 2024, two in 2025, two in 2026, and one in 2027, targeting one of the most environmentally efficient dry bulk fleets in the market.
Dr. Loukas Barmparis, President of the Company, commented: “As part of our renewal strategy we have recently agreed to sell two of our vessels. This newbuild with a relatively prompt delivery is consistent with our ESG strategy and reflects our ambition to be in the forefront of environmental developments.”
About Safe Bulkers, Inc.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company has a fleet of 46 vessels, consisting of 11 Panamax, 9 Kamsarmax, 18 Post-Panamax and 8 Capesize vessels, with an aggregate carrying capacity of 4.6 million dwt and an average age of 10.5 years. Twelve vessels in the Company’s fleet are eco-ships built after 2014, and seven are IMO GHG-EEDI Phase 3 - NOx-Tier III vessels built 2022 onwards. The Company has an outstanding orderbook of eight Phase 3 newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries three in 2024, two in 2025, two in 2026, and one in 2027. 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 Exchange Act of 1933, as amended, and in Section 21E of the Securities 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 that are inherently subject to significant uncertainties and contingencies, 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, risks associated with operations outside the United States 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
+357 25 887 200
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
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