Safe Bulkers, Inc. Announces Agreement for the Acquisition of One Japanese Kamsarmax Class Dry-bulk Vessel
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Insights
Safe Bulkers, Inc.'s strategic move to acquire a new Kamsarmax class vessel aligns with broader industry trends towards greater environmental responsibility and regulatory compliance. The vessel's adherence to IMO GHG-EEDI Phase 3 and NOx-Tier III regulations indicates a proactive approach to meet stringent global emission standards. This acquisition is a part of an overall fleet renewal strategy, which is crucial for maintaining competitiveness in the marine drybulk transportation sector.
Investors should note the potential for operational cost savings due to the advanced energy efficiency characteristics of the newbuild, which could lead to lower fuel consumption. In the long term, this could translate into better profit margins and a stronger market position for Safe Bulkers. However, the capital expenditure for new vessels must be weighed against the expected future savings and revenue generation.
The commitment to environmental sustainability through the acquisition of vessels complying with IMO GHG-EEDI Phase 3 and NOx-Tier III is a significant step for Safe Bulkers. This indicates the company's foresight in anticipating tighter environmental regulations and the shipping industry's shift towards greener operations. These measures are likely to be favorably viewed by stakeholders who are increasingly valuing corporate environmental responsibility.
From a compliance perspective, the investment in vessels that meet these high environmental standards may offer Safe Bulkers certain advantages such as potential eligibility for green financing and incentives and possibly better charter rates due to the preference for environmentally friendly vessels in certain markets.
The financial implications of Safe Bulkers' fleet expansion and renewal strategy must be examined in terms of capital allocation and debt management. The orderbook, with nine Phase 3 newbuild vessels, represents a substantial investment. It is crucial to analyze the company's balance sheet to understand how this capital expenditure is financed and what impact it will have on the company's leverage and liquidity.
Moreover, the timing of the deliveries, spanning from 2024 to 2027, suggests a staggered financial commitment. This could help in managing cash flows and debt servicing. The financial community will be keen to assess the return on investment for these new vessels, considering the long-term earnings potential against the backdrop of volatile freight rates in the drybulk sector.
MONACO, Jan. 10, 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 third 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 (“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 Phase 3 – NOx Tier III vessels. Including this agreement, the Company has an outstanding orderbook of nine Phase 3 newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries three in 2024, two in 2025, three in 2026, and one in 2027.
Dr. Loukas Barmparis, President of the Company commented: “Consistent with our ESG strategy, we have placed an additional order for a Phase 3 newbuild targeting a gradual fleet renewal and the subsequent operational and financial advantages associated with it.”
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 Phase 3 - NOx Tier III vessels built 2022 onwards. The Company has an outstanding orderbook of nine Phase 3 newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries three in 2024, two in 2025, three 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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