Safe Bulkers, Inc. Announces the Sale of Two Dry-bulk Vessels
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Insights
The sale of MV Panayiota K and MV Paraskevi 2 by Safe Bulkers is a strategic move that capitalizes on an improved second-hand market environment. This suggests a potential uptick in the valuation of second-hand vessels, possibly driven by increased demand or a shortage in new vessel supply. The gross sale prices of $20.45 million and $20.3 million for these vessels respectively, could be indicative of current market valuations for such assets. Stakeholders should consider the liquidity boost this sale provides to Safe Bulkers, which could be allocated towards debt reduction, investment in new technology, or fleet expansion. The timing of the deals, with deliveries in April and July 2024, will likely result in a staggered cash inflow, offering financial flexibility to the company.
From a financial perspective, the divestment of older vessels and the addition of newbuilds to Safe Bulkers' fleet is a fleet renewal strategy that can lead to operational efficiencies and cost savings. Newer vessels are typically more fuel-efficient and may comply with stricter environmental regulations, which could reduce future compliance costs and enhance the company's competitive edge. The renewal of the fleet, with seven newbuilds on the orderbook, could also affect the company's depreciation schedule and operating expenses. Investors should monitor the company's future capital expenditures and how these asset sales might affect earnings, as well as the impact on Safe Bulkers' balance sheet strength and creditworthiness.
The maritime transportation industry is highly sensitive to global economic trends and trade volumes. The sale of the two dry-bulk vessels by Safe Bulkers may reflect an anticipatory approach to market cycles and asset management. By selling older vessels in a strong second-hand market, the company is possibly aiming to avoid the higher maintenance costs and lower efficiency associated with aging assets. The mention of an 'improved second-hand market environment' indicates a favorable time to sell, which could be due to a variety of factors such as commodity boom, changes in trade routes, or shifts in regulatory landscapes. Industry stakeholders should consider the potential implications of these market dynamics on the demand for dry-bulk transportation and the overall health of the shipping industry.
MONACO, March 06, 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 two separate agreements, for the sale of MV Panayiota K, a 2010-built Post-Panamax class dry-bulk vessel, at a gross sale price of
Dr. Loukas Barmparis, President of the Company commented: “Following recent newbuild orders, in the context of our fleet renewal strategy, we sold these two vessels in an improved second-hand market environment. Our remaining orderbook consists of seven newbuilds.”
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’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
What vessels did Safe Bulkers, Inc. sell recently?
What is the total gross sale price for the two vessels?
When are the delivery dates for MV Panayiota K and MV Paraskevi 2?
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