Safe Bulkers, Inc. Announces Agreement for the Acquisition of One Newbuild Japanese Kamsarmax Class Dry-bulk Vessel

Rhea-AI Summary

Safe Bulkers, Inc. has announced the acquisition of a new Japanese Kamsarmax class dry-bulk vessel, designed to meet strict environmental regulations. The vessel is part of the company's fleet renewal strategy, aiming to have one of the most environmentally efficient dry bulk fleets in the market.

Insights

Maritime Industry Analyst

The recent acquisition by Safe Bulkers, Inc. of a newbuild Japanese Kamsarmax class vessel is a strategic move that aligns with evolving regulatory demands and market shifts toward more environmentally conscious practices in the maritime industry. The vessel's compliance with IMO GHG -EEDI Phase 3 and NOx-Tier III emissions regulations indicates a forward-looking approach, anticipating stricter environmental standards and mitigating potential regulatory risks. This decision could potentially reduce long-term operational costs through improved fuel efficiency, which is a significant expense in the shipping industry.

Financial Analyst

From a financial perspective, the acquisition signifies further capital investment into Safe Bulkers' fleet, indicating a commitment to fleet renewal and operational efficiency. Investors should monitor this development as it may influence the company's capital expenditure and affect its debt profile, depending on the financing structure of the vessel acquisition. While the initial outlay may be substantial, the investment in energy-efficient ships could result in operational cost savings and enhance the competitive positioning of Safe Bulkers in the charter market, possibly leading to improved revenue streams in the mid to long term.

Environmental Policy Expert

The environmental implications of this acquisition are not to be overlooked. The adherence to Phase 3 requirements of the Energy Efficiency Design Index reflects Safe Bulkers' proactive stance on sustainability. This serves a dual purpose: complying with international standards and potentially attracting environmentally conscious clients and investors. As the shipping industry faces increasing scrutiny over emissions, companies taking early action may gain a reputational edge, which can be an intangible asset that plays a role in long-term value creation.

MONACO, April 26, 2024 (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 fourth quarter 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 (“IMO 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 nine IMO GHG 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 one in 2024, two in 2025, four in 2026, and one in 2027.

Dr. Loukas Barmparis, President of the Company commented: “This latest newbuild order with relatively prompt delivery compared to present slot availability, is part of our fleet renewal strategy and reflects our plans to own one of the most environmentally efficient dry bulk fleets in the market.”

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 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
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

What did Safe Bulkers, Inc. announce regarding a new vessel acquisition?

Safe Bulkers, Inc. announced the acquisition of a Japanese, 82,000 dwt, dry-bulk, Kamsarmax class vessel, designed to meet strict environmental regulations.

When is the scheduled delivery date for the newbuild vessel?

The scheduled delivery date for the newbuild vessel is within the fourth quarter of 2026.

How many newbuild vessels does the Company currently have in its orderbook?

The Company currently has an outstanding orderbook of eight newbuild vessels, two of which are methanol dual fuel.

What is the significance of this newbuild vessel in relation to the company's fleet strategy?

This newbuild vessel is part of the company's fleet renewal strategy, aiming to own one of the most environmentally efficient dry bulk fleets in the market.