Safe Bulkers, Inc. Declares Quarterly Dividend on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares; 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares
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Insights
The declaration of cash dividends by Safe Bulkers, Inc. for its Series C and D Preferred Shares is a positive signal to investors, indicating a stable cash flow and a commitment to returning value to shareholders. The fixed dividend rate of 8.00% is particularly attractive in a low-interest-rate environment, potentially drawing interest from income-focused investors. However, it's important to note that the perpetual nature of these preferred shares means they have no maturity date, which can affect the risk profile for investors.
From a financial analysis perspective, the ability to pay consistent dividends suggests that Safe Bulkers has sufficient earnings and cash reserves. Nonetheless, investors should be aware of the company's leverage and growth strategies, as these could impact future dividend payments. The company's mention of reliance on debt and equity financing also underlines the importance of market conditions and capital structure on its financial health.
The marine drybulk sector is subject to cyclical and volatile markets and as such, the company's performance is closely tied to global economic conditions. Investors should consider the potential for fluctuating freight rates and trade volumes, which may influence Safe Bulkers' earnings and, consequently, its dividend-paying capacity.
Safe Bulkers, Inc.'s announcement of consistent dividends could be seen as a reflection of its operational stability and strategic financial management within the marine drybulk transportation industry. The industry itself is highly competitive and sensitive to global supply chain dynamics, including commodity demand and maritime regulations. As a result, the company's ability to maintain its dividend payouts can be seen as a competitive advantage.
For stakeholders, the reliability of dividend payments can enhance the company's reputation, potentially increasing investor confidence and stock demand. However, investors should conduct a thorough market analysis, considering the potential impact of environmental regulations and shifts in the global economy, such as changes in trade patterns or fuel prices, which could affect operational costs and profitability for Safe Bulkers.
Furthermore, the mention of restrictive covenants in the company's debt instruments suggests that there could be limitations on the company's financial operations and strategic flexibility. This could impact Safe Bulkers' ability to adapt to market changes and maintain its dividend policy in the long term.
The dependency of Safe Bulkers' dividend declarations on global economic conditions highlights the interconnectedness of the shipping industry with broader economic trends. The marine shipping sector is often seen as a barometer for global economic activity, as it is integral to international trade. An economist would assess the implications of macroeconomic factors such as GDP growth, trade disputes and commodity prices on the company's financial performance.
Given the cyclical nature of the industry, Safe Bulkers' ability to sustain its dividends during economic downturns would require careful management of its balance sheet and adherence to a prudent financial strategy. The company's mention of the need to obtain financing on acceptable terms points to the potential challenges that may arise during periods of credit tightening or market volatility.
Investors should consider the historical performance of the shipping industry during various economic cycles when evaluating the long-term sustainability of Safe Bulkers' dividends. Additionally, the potential for changes in monetary policy could influence interest rates and the attractiveness of dividend yields relative to other income-generating investments.
MONACO, Jan. 04, 2024 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today that the Company's Board of Directors has declared:
- a cash dividend of
$0.50 per share on its8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (the “Series C Preferred Shares”) (NYSE: SB.PR.C) for the period from October 30, 2023 to January 29, 2024;
- a cash dividend of
$0.50 per share on its8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (the “Series D Preferred Shares”) (NYSE: SB.PR.D) for the period from October 30, 2023 to January 29, 2024.
Each dividend will be paid on January 30, 2024 to all shareholders of record as of January 19, 2024 of the Series C Preferred Shares and of the Series D Preferred Shares, respectively. Dividends on the Series C and D Preferred Shares are payable quarterly in arrears on the 30th day (unless the 30th falls on a weekend or public holiday, in which case the payment date is moved to the next business day) of January, April, July and October of each year.
The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company, and will depend on, among other things, the Company’s earnings, financial condition and cash requirements and availability, the Company’s ability to obtain debt and equity financing on acceptable terms as contemplated by the Company’s growth and leverage strategies, the restrictive covenants in the Company’s existing and future debt instruments and global economic conditions.
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-EEDI Phase 3 – Nox-Tier III vessels built 2022 onwards. The Company has an outstanding orderbook of eight Phase 3 newbuild vessels, two of which are methanol dual fuel, with scheduled deliveries three in 2024, two in 2025, two 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:
Paul Lampoutis
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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