Safe Bulkers, Inc. Announces Agreement for the Acquisition of One Japanese Kamsarmax Class Dry-bulk Vessel
Safe Bulkers (NYSE: SB) has announced the acquisition of a Japanese Kamsarmax class dry-bulk vessel. The 82,000 dwt vessel will be delivered in Q1 2027 and meets IMO GHG-EEDI Phase 3 and NOx-Tier III regulations. This vessel is part of the company's strategy to modernize its fleet, focusing on energy efficiency and reduced emissions. The company has already received nine such vessels and has an orderbook of nine more, with deliveries scheduled from 2024 to 2027. President Dr. Loukas Barmparis emphasized the aim to build a young, efficient fleet in compliance with evolving CO2 emission regulations.
- Acquisition of a new 82,000 dwt vessel, enhancing fleet capacity.
- Vessel meets stringent IMO GHG-EEDI Phase 3 and NOx-Tier III regulations, indicating advanced fuel efficiency.
- Addition aligns with the company's fleet renewal strategy, signaling long-term planning and sustainability focus.
- Existing fleet includes nine vessels already compliant with IMO GHG Phase 3 and NOx-Tier III, showing commitment to environmental standards.
- Orderbook of nine new vessels through 2027, providing future growth potential.
- Long lead time for vessel delivery (Q1 2027) may delay potential operational benefits.
- Financial burden of maintaining an extensive orderbook with nine new vessels pending delivery.
- Possible shareholder dilution if the acquisition is financed through equity.
Insights
Safe Bulkers, Inc. has committed to the acquisition of a state-of-the-art Japanese Kamsarmax class dry-bulk vessel, aligning with the latest environmental standards set by the International Maritime Organization (IMO). This acquisition signals a proactive approach to fleet modernization and regulatory compliance, reflecting positively on the company’s long-term strategy.
From a financial perspective, investing in advanced, energy-efficient vessels can lead to lower operational costs in the future due to reduced fuel consumption. Compliance with IMO GHG EEDI Phase 3 and NOx-Tier III standards could also avoid potential fines and boost the company’s reputation in the industry. However, the financial impact in the short term could see an increase in capital expenditure.
Investors should consider the long-term benefits of reduced emissions and fuel efficiency. The company’s ability to spread out vessel deliveries until 2027 also suggests a well-planned capital allocation strategy, potentially mitigating the financial burden of such investments.
The acquisition of this vessel highlights Safe Bulkers’ commitment to environmental sustainability. Compliance with IMO GHG EEDI Phase 3 and NOx-Tier III standards positions the company as a forward-thinking player in the marine transportation sector. This proactive stance could influence regulations in favor of companies already aligned with stringent environmental standards, potentially giving Safe Bulkers a competitive edge.
Furthermore, the dual-fuel capability of some of their newbuilds indicates a flexibility to adapt to future fuel alternatives. Such adaptability is important as global regulations on emissions are expected to tighten further. The company's strategy to invest in methanol dual-fuel vessels aligns well with the industry’s shift towards greener and more sustainable fuel sources.
MONACO, June 03, 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 first quarter of 2027.
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 nine newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries one in 2024, two in 2025, four in 2026, and two in 2027.
Dr. Loukas Barmparis, President of the Company, commented: “We are entering in this newbuild order consistent with our fleet renewal strategy, aiming to create a resilient company with a young and efficient fleet within the ever developing stringent CO2 emission regulations environment.”
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
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