Safe Bulkers, Inc. Announces Sale of One Panamax Class Dry-bulk Vessel
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Insights
The divestiture of MV Maritsa by Safe Bulkers represents a strategic move to rejuvenate its fleet amidst evolving environmental standards. The sale price of $12.2 million for an older Panamax class vessel is indicative of current market valuations for such assets. It is essential to note that the Panamax segment has been under pressure due to a variety of factors including shifts in trade routes and the introduction of larger, more efficient vessels. As a result, the decision to sell an older vessel can be seen as an attempt to optimize fleet age and operational efficiency.
From a market perspective, this transaction could signal Safe Bulkers' commitment to modernizing their fleet, which may positively influence investor sentiment. However, the impact on the company's financials will depend on the reinvestment of the proceeds from the sale. If reinvested into newer, more eco-friendly vessels, Safe Bulkers may benefit from reduced operational costs and enhanced compliance with environmental regulations, potentially improving their market position in the long term.
The sale of the MV Maritsa is a financial maneuver that will affect Safe Bulkers' balance sheet. The gross sale price of $12.2 million will contribute to the company's cash reserves, providing capital for potential reinvestments or debt servicing. It is important to analyze this transaction in the context of the company's capital allocation strategy and the broader industry trend towards newer, more environmentally compliant vessels.
Investors should consider the implications of this sale on the company's depreciation expenses and operational costs. An older vessel typically incurs higher maintenance and operational costs and its sale could lead to a decrease in such expenses. Additionally, the timing of the sale, with a forward delivery date, suggests that Safe Bulkers is strategically managing its asset turnover to align with market conditions and its operational needs.
The sale of the MV Maritsa reflects a growing industry imperative to meet stringent environmental regulations. The International Maritime Organization (IMO) has been implementing regulations aimed at reducing greenhouse gas emissions from ships, which significantly impacts vessel operations and design. By selling older, less efficient vessels and potentially replacing them with newer builds, Safe Bulkers is positioning itself to meet these regulations and possibly reduce its environmental footprint.
The company's strategy to improve fleet environmental performance is not only a compliance measure but also a competitive differentiator in the industry. Clients and stakeholders are increasingly valuing sustainability, which can lead to a preference for carriers that demonstrate environmental responsibility. Thus, the company's long-term competitiveness may be enhanced by this move, aligning with evolving market demands and regulatory landscapes.
MONACO, Feb. 12, 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 sale of MV Maritsa, a 2005 Japanese-built, Panamax class, dry-bulk vessel, the oldest vessel in its fleet, at a gross sale price of
Dr. Loukas Barmparis, President of the Company commented: “We continue our strategy to selectively sell older vessels and replace them with newbuilds aiming to improve our fleet’s environmental performance and increase our competitiveness in the new, more stringent regulatory environment.’’
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 48 vessels, two of which were held for sale, consisting of 10 Panamax, 12 Kamsarmax, 18 Post-Panamax and 8 Capesize class vessels, with an aggregate carrying capacity of 4.8 million dwt and an average age of 9.9 years. Twelve vessels in the Company's fleet are eco-ships built after 2014, and nine are IMO GHG Phase 3 - NOx Tier III ships, built 2022 onwards. The Company has an orderbook of seven IMO GHG Phase 3 - NOx Tier III Kamsarmax class newbuilds, two of which are methanol dual-fueled, with scheduled deliveries, one 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 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, business disruptions due to natural disasters or other events, such as the recent COVID-19 pandemic, 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 undertakings 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
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