Safe Bulkers, Inc. Reports First Quarter 2022 Results and Declares Dividend on Common Stock
Safe Bulkers, Inc. (NYSE: SB) reported unaudited financial results for Q1 2022, achieving net revenues of $77.7 million, up 24% year-over-year. Net income reached $36.4 million, compared to $21.3 million in Q1 2021. The company declared a cash dividend of $0.05 per share, payable on June 15, 2022. Notably, total cash increased to $166.3 million. The company also highlighted a significant debt reduction exceeding $200 million year-over-year. The impact from COVID-19 was minimal at $0.5 million, and operational challenges due to ongoing conflicts were noted.
- Net revenues increased by 24%, reaching $77.7 million.
- Net income rose to $36.4 million from $21.3 million year-over-year.
- Declared a dividend of $0.05 per share, enhancing shareholder returns.
- Total cash increased to $166.3 million.
- Successfully reduced debt by over $200 million compared to the previous year.
- COVID-19 impacted operations with an additional cost of $0.5 million.
- Increased dry-docking and operating expenses due to pandemic-related challenges.
MONACO, May 25, 2022 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three month period ended March 31, 2022. The Board of Directors of the Company also declared a cash dividend of
Financial highlights
In million U.S. Dollars except per share data | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | |||||
| Net revenues | 77.7 | 92.4 | 92.5 | 81.6 | 62.5 | |||||
| Net income | 36.4 | 65.2 | 55.4 | 32.4 | 21.3 | |||||
| Adjusted net income1 | 32.3 | 50.4 | 50.7 | 36.3 | 16.7 | |||||
| EBITDA2 | 51.0 | 82.4 | 72.4 | 50.2 | 39.3 | |||||
| Adjusted EBITDA2 | 46.9 | 67.6 | 67.7 | 54.1 | 34.6 | |||||
| Earnings per share basic and diluted3 | 0.28 | 0.51 | 0.44 | 0.27 | 0.18 | |||||
| Adjusted earnings per share basic and diluted3 | 0.24 | 0.39 | 0.40 | 0.31 | 0.14 | |||||
| Average daily results in U.S. Dollars | ||||||||||
| Time charter equivalent rate4 | 21,352 | 26,180 | 24,427 | 21,098 | 15,567 | |||||
| Daily vessel operating expenses5 | 5,722 | 5,149 | 4,608 | 4,874 | 4,702 | |||||
| Daily vessel operating expenses excluding dry-docking and pre-delivery expenses6 | 4,923 | 4,666 | 4,570 | 4,539 | 4,350 | |||||
| Daily general and administrative expenses7 | 1,520 | 1,517 | 1,590 | 1,488 | 1,440 | |||||
| In million U.S. Dollars | ||||||||||
| Total cash8 | 166.3 | 112.3 | 108.6 | 127.4 | 130.1 | |||||
| Revolving credit facilities9 | 146.6 | 137.7 | 88.9 | 67.0 | 6.6 | |||||
| Financing commitments10 | 46.2 | 46.2 | 46.2 | 54.7 | 54.7 | |||||
| Unsecured debt11 | 108.3 | — | — | — | — | |||||
| Secured debt12 | 293.3 | 355.7 | 413.8 | 491.4 | 603.2 | |||||
| Total debt13 | 401.6 | 355.7 | 413.8 | 491.4 | 603.2 | |||||
_______________________
1 Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before gain/(loss) on derivatives, early redelivery income/(cost), impairment and loss on vessels held for sale, gain/(loss) on sale of assets and gain/(loss) on foreign currency. See Table 4.
2 EBITDA is a non-GAAP measure and represents Net income/(loss) plus net interest expense, tax, depreciation and amortization. See Table 4. Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain/(loss) on derivatives, early redelivery cost, other operating expenses and, gain/(loss) on foreign currency. See Table 4.
3 Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net Income and Adjusted Net income less preferred dividend and mezzanine equity measurement divided by the weighted average number of shares respectively. See Table 4.
4 Time charter equivalent rate, or TCE rate, represents charter revenues less commissions and voyage expenses divided by the number of available days. See Table 5.
5 Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. See Table 5.
6 Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by ownership days for such period. See Table 5.
7 Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. See Table 5.
8 Total Cash represents Cash and cash equivalents plus Time deposits and Restricted cash.
9 Undrawn borrowing capacity under revolving reducing credit facilities.
10 Secured financing commitments for loan and sale and lease back financings.
11 Unsecured debt represents the five year tenor unsecured non-amortizing bond, net of deferred financing costs, maturing in February 2027.
12 Secured debt represents Long-term debt plus current portion of long-term debt, net of deferred financing costs.
13 Total Debt represents Unsecured debt plus Secured debt.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "Our 2022 first quarter profitability exceeded first quarter of 2021 profitability by
Update on COVID-19, company's actions and status
The COVID-19 pandemic has had a significant impact on the shipping industry and seafarers in general, as port lockdowns and travel restrictions were imposed globally during 2020 and 2021 and continue in 2022. The Company has worked extensively to find solutions focusing on effectively managing crew changes despite such ongoing port lockdowns and travel restrictions. The Company has also taken measures to protect its seafarers' and shore employees' health and well-being, keep its vessels sailing with minimal disruption to their trading ability, service its charterers, continue vessels' maintenance and dry-dockings and mitigate and address the risks, effects and impact of COVID-19 on its operations and financial performance.
There has been a negative effect from the COVID-19 pandemic on the Company's results of operations and financial condition during the first quarter of 2022, due to crew repatriation and related costs of about
Conflict in Ukraine
As a result of the conflict between Russia and Ukraine which commenced in February 2022, the US, the EU, the UK, Switzerland and others have announced unprecedented levels of sanctions and other measures against Russia and certain Russian entities and nationals. We intend on complying with these requirements and addressing their potential consequences. While we do not have any Ukrainian or Russian crew, our vessels currently do not sail in the Black Sea and we otherwise conduct limited operations in Russia and Ukraine, we will continue to monitor the situation to assess whether the conflict could have any impact on our operations or financial performance.
Issuance of
In February 2022, the Company, through its wholly owned subsidiary Safe Bulkers Participation Plc. (the ''Issuer''), issued and listed a bond in the amount of 100 million Euro (the “Bond”) on the Athens Exchange. The Bond has a tenor of five years maturing in February 2027, is guaranteed by the Company, is unsecured, non-amortizing and pays a coupon of
Redemption of Series C Preferred Shares
On March 30, 2022, the Company issued a notice of redemption of 1,492,554 Series C Preferred Shares representing approximately
At-the-market equity offering program
In August 2020, the Company filed a prospectus supplement with the Securities and Exchange Commission (“SEC”), under which it could offer and sell shares of its common stock (“Shares”) from time to time up to aggregate sales proceeds of
Since September 27, 2021 the Company has not sold any shares of common stock under the ATM Program. Since the inception of the ATM Program the Company had sold 19,417,280 shares of common stock under the ATM Program with aggregate net offering proceeds to the Company of
Fleet update
As of May 20, 2022, we had a fleet of 42 vessels, consisting of 12 Panamax, 8 Kamsarmax, 15 Post-Panamax and 7 Capes with and aggregate capacity of 4.2 million dwt and average age of 10.4 years, and had placed orders for 8 newbuild vessels. During 2022 and as of May 20, 2022, the Company had taken delivery of one newbuild vessel and had acquired two second hand Capesize class vessels expanding its presence in this sector.
Newbuild delivery
In May 2022, the Company acquired the first of its 9 Japanese newbuilds on order, the MV Vassos a Japanese GHG -EEDI Phase 3, NOx-Tier III, Kamsarmax class vessel. Upon its delivery MV Vassos was sold and leased back on a bareboat charter basis, for a period of 10 years with a purchase obligation at the end of the 10th year and purchase options after the third year of the bareboat charter, at predetermined purchase prices. In view of the repurchase obligation, the Company has assessed that the transaction be recorded as financing transaction.
Newbuild orders
As of May 20, 2022, the orderbook of the Company consisted of 8 Japanese, dry-bulk newbuilds of which 5 were Kamsarmax class vessels and 3 were Post-Panamax class vessels, with scheduled deliveries of one in the third quarter of 2022, five in 2023 and two in 2024. All newbuilds on the Company's orderbook are designed to meet the Phase 3 requirements of Energy Efficiency Design Index related to the reduction of green house 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 (IMO, MARPOL Annex VI, reg. 13).
Second-hand acquisitions
In January 2022, the Company agreed to purchase the MV Maria, a 2014-built, Japanese, dry-bulk, 181,300 dwt, Capesize class vessel for
In April 2022, the Company agreed to purchase the MV Michalis H, a 2012-built, Chinese, dry-bulk, 180,400 dwt, Capesize class vessel for
Chartering our fleet
Our vessels are used to transport bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes. We intend to employ our vessels on both period time charters and spot time charters, according to our assessment of market conditions. Our customers represent some of the world’s largest consumers of marine drybulk transportation services. The vessels we deploy on period time charters provide us with visible and relatively stable cash flow, while the vessels we deploy in the spot market allow us to maintain our flexibility in low charter market conditions and provide an opportunity for a potential upside in our revenue when charter market conditions improve.
As of May 20, 2022, we employed, or had contracted to employ, 11 vessels in the spot time charter market (with up to 3 months original duration) and 31 vessels in the period time charter (with original duration in excess of 3 months), 12 of which have original duration of more than 1 year, and 10 have original duration of more than 2 years. As of May 20, 2022, the average remaining charter duration across our fleet was 1.2 years.
During 2022 and up to May 20, 2022, the Company has entered into a long-term period time charter for the Capesize class vessel MV Pelopidas, with forward delivery date in June 2022, for duration of 3 years at a gross daily charter rate of
During the first quarter of 2022, we operated 39.54 vessels on average earning a TCE14 of
Table 1: Contracted employment profile of fleet ownership days as of May 20, 2022
| 2022 (remaining) | |||
| 2022 (full year) | |||
| 2023 | |||
| 2024 |
The detailed employment profile of our fleet is presented in Table 6.
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14 Time Charter Equivalent (“TCE”) rate represents charter revenues net of commissions and voyage expenses divided by the number of available days.
Debt Profile
As of March 31, 2022 our consolidated debt before deferred financing costs was
Table 2: Loan repayment Schedule
(in USD million)
| Ending December 31, | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029-2031 | Total |
| Secured debt | 17.8 | 24.0 | 60.6 | 76.0 | 66.3 | 31.1 | 3.9 | 18.6 | 298.3 |
| Unsecured debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 111.1 | 0.0 | 0.0 | 111.1 |
| Total debt | 17.8 | 24.0 | 60.6 | 76.0 | 66.3 | 142.2 | 3.9 | 18.6 | 409.4 |
| Fleet scrap value15 | 394.9 |
_______________________
15 The fleet scrap value is calculated on the basis of fleet aggregate light weight tons ("lwt") and scrap rate of
Liquidity and capital resources, capital expenditure requirements and debt as of March 31, 2022
We had
We had a fleet of 40 vessels and had an orderbook of nine newbuild vessels. The remaining capital expenditure requirements were
We had
Liquidity and capital resources, capital expenditure requirements and debt as of May 20, 2022
We had
We had a fleet of 42 vessels, and had placed orders for eight newbuild vessels. The remaining capital expenditure requirements were
We had
Derivatives
In January 2022, the Company terminated certain interest rate derivative contracts that were due to mature in 2025 and 2026 with an aggregate notional amount of
In February 2022, following the issuance of our 100 million Euro corporate Bond of
During the first quarter of 2022, the Company entered into forward freight agreements on the Panamax index for 675 days in aggregate for the period to March 2023. The objective of these trades is the reduction of the risk arising from the volatility in the charter rates.
Environmental Social Responsibility - Environmental investments - Dry-dockings
The Company continues the retrofit of its vessels with BWTS having installed such systems on 39 of 42 existing vessels as of May 20, 2022. Furthermore, the Company has entered into two agreements for additional Scrubber installations in two of its Capesize class vessels, one of which was initiated in February 2022.
The Company is pursuing a vessel upgrade program during dry-dockings, in the amount of
The Company has scheduled four dry-dockings for the second and third quarters of 2022 with an estimated aggregate number of 105 down-time days during the second quarter 2022 and 60 down-time days during the third quarter 2022.
Dividend Policy
On May 25, 2022, the Board of Directors of the Company declared a cash dividend on the Company’s common stock of
On March 4, 2022, the Board of Directors of the Company declared a cash dividend on the Company’s common stock of
The Company declared a cash dividend of
The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. There is no guarantee that the Company’s Board of Directors will determine to issue cash dividends in the future. The timing and amount of any dividends declared will depend on, among other things: (i) the Company’s earnings, fleet employment profile, financial condition and cash requirements and available sources of liquidity; (ii) decisions in relation to the Company’s growth, fleet renewal and leverage strategies; (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends; (iv) restrictive covenants in the Company’s existing and future debt instruments; and (v) global economic and financial conditions.
Conference Call
On Thursday, May 26, 2022 at 9:00 A.M. Eastern Time, the Company’s management team will host a conference call to discuss the Company’s financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote Safe Bulkers to the operator.
Slides and Audio Webcast
There will also be a live, and then archived, webcast of the conference call, available through the Company’s website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Management Discussion of First Quarter 2022 Results
During the first quarter of 2022, we operated in an improved charter market environment compared to the same period of 2021, with lower interest expenses and increased revenues which also include earnings from Scrubber fitted vessels. During the first quarter of 2022, we had a TCE of
Net revenues: Net revenues increased by
Vessel operating expenses: Vessel operating expenses increased by
Depreciation: Depreciation expense decreased by
Interest expense: Interest expense decreased to
(Loss)/Gain on derivatives: Gain on derivatives amounted to
Daily vessel operating expenses: Daily vessel operating expenses, calculated by dividing vessel operating expenses by the ownership days of the relevant period, increased by
Daily general and administrative expenses17: Daily general and administrative expenses, which include management fees payable to our Managers18 and daily company administrations expenses, increased by
_______________________
16 London interbank offered rate.
17 See table 5
18 Safety Management Overseas S.A., Safe Bulkers Management Monaco Inc., and Safe Bulkers Management limited, each of which is a referred to in this press release as "our Manager" and collectively "our Managers"
Balance sheet
Right-of-use asset/Lease Liability: As of March 31, 2022, we had classified the asset and liability directly associated with the acquisition of the vessel Stelios Y: as a) Right-of-use asset and presented it on the balance sheet separately under Fixed assets in the amount of
| Unaudited Interim Financial Information and Other Data | |||||
| SAFE BULKERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands of U.S. Dollars except for share and per share data) | |||||
| Three-Months Period Ended March 31, | |||||
| 2021 | 2022 | ||||
| REVENUES: | |||||
| Revenues | 65,222 | 81,102 | |||
| Commissions | (2,704 | ) | (3,356 | ) | |
| Net revenues | 62,518 | 77,746 | |||
| EXPENSES: | |||||
| Voyage expenses | (4,376 | ) | (4,338 | ) | |
| Vessel operating expenses | (17,888 | ) | (20,366 | ) | |
| Depreciation | (13,324 | ) | (11,306 | ) | |
| General and administrative expenses | (5,479 | ) | (5,411 | ) | |
| Impairment and loss on vessels held for sale | (1,420 | ) | — | ||
| Early redelivery income | 7,555 | — | |||
| Operating income | 27,586 | 36,325 | |||
| OTHER (EXPENSE) / INCOME: | |||||
| Interest expense | (4,252 | ) | (2,886 | ) | |
| Other finance cost | (151 | ) | (691 | ) | |
| Interest income | 33 | 15 | |||
| (Loss)/gain on derivatives | (896 | ) | 4,227 | ||
| Foreign currency loss | (582 | ) | (193 | ) | |
| Amortization and write-off of deferred finance charges | (420 | ) | (432 | ) | |
| Net income | 21,318 | 36,365 | |||
| Less Preferred dividend | 2,825 | 2,746 | |||
| Plus Mezzanine equity measurement | (271 | ) | — | ||
| Net income available to common shareholders | 18,764 | 33,619 | |||
| Earnings per share basic and diluted | 0.18 | 0.28 | |||
| Weighted average number of shares | 103,363,376 | 121,652,295 | |||
| Three-Months Period Ended March 31, | |||||
| 2021 | 2022 | ||||
| (In millions of U.S. Dollars) | |||||
| CASH FLOW DATA | |||||
| Net cash provided by operating activities | 38.8 | 60.7 | |||
| Net cash used in investing activities | (9.2 | ) | (45.6 | ) | |
| Net cash (used in)/provided by financing activities | (16.9 | ) | 36.9 | ||
| Net increase in cash and cash equivalents | 12.7 | 52.0 | |||
| SAFE BULKERS, INC. CONDENSEDCONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands of U.S. Dollars) | |||
| December 31, 2021 | March 31, 2022 | ||
| ASSETS | |||
| Cash and cash equivalents, time deposits, and restricted cash | 102,084 | 156,062 | |
| Other current assets | 22,032 | 22,973 | |
| Vessels, net | 864,391 | 888,392 | |
| Right-of-use asset | 31,938 | 31,573 | |
| Advances for vessels | 56,484 | 63,204 | |
| Restricted cash non-current | 10,250 | 10,250 | |
| Other non-current assets | 7,141 | 836 | |
| Total assets | 1,094,320 | 1,173,290 | |
| LIABILITIES AND EQUITY | |||
| Current portion of long-term debt | 39,912 | 21,723 | |
| Lease liability | 21,945 | 20,780 | |
| Other current liabilities | 26,835 | 30,768 | |
| Long-term debt, net of current portion | 315,796 | 379,830 | |
| Other non-current liabilities | 10,592 | 13,383 | |
| Shareholders’ equity | 679,240 | 706,806 | |
| Total liabilities and equity | 1,094,320 | 1,173,290 | |
| TABLE 4 RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS PER SHARE | |||||
| Three-Months Period Ended March 31, | |||||
| (In thousands of U.S. Dollars except for share and per share data) | 2021 | 2022 | |||
| Adjusted Net Income | |||||
| Net Income | 21,318 | 36,365 | |||
| Plus Impairment and loss on vessels held for sale | 1,420 | — | |||
| Plus Loss/(gain) on derivatives | 896 | (4,227 | ) | ||
| Plus Foreign currency loss | 582 | 193 | |||
| Less Early redelivery income | (7,555 | ) | — | ||
| Adjusted net income | 16,661 | 32,331 | |||
| EBITDA - Adjusted EBITDA | |||||
| Net Income | 21,318 | 36,365 | |||
| Plus Net Interest expense | 4,219 | 2,871 | |||
| Plus Depreciation | 13,324 | 11,306 | |||
| Plus Amortization and write-off of deferred finance charges | 420 | 432 | |||
| EBITDA | 39,281 | 50,974 | |||
| Plus Impairment and loss on vessels held for sale | 1,420 | — | |||
| Less Early redelivery income | (7,555 | ) | — | ||
| Plus Loss/(gain) on derivatives | 896 | (4,227 | ) | ||
| Plus Foreign currency loss | 582 | 193 | |||
| ADJUSTED EBITDA | 34,624 | 46,940 | |||
| Earnings per share | |||||
| Net Income | 21,318 | 36,365 | |||
| Less Preferred dividend | 2,825 | 2,746 | |||
| Plus Mezzanine equity measurement | (271 | ) | — | ||
| Net income available to common shareholders | 18,764 | 33,619 | |||
| Weighted average number of shares | 103,363,376 | 121,652,295 | |||
| Earnings per share | 0.18 | 0.28 | |||
| Adjusted Earnings per share | |||||
| Adjusted net income | 16,661 | 32,331 | |||
| Less Preferred dividend | 2,825 | 2,746 | |||
| Plus Mezzanine equity measurement | (271 | ) | — | ||
| Adjusted Net income available to common shareholders | 14,107 | 29,585 | |||
| Weighted average number of shares | 103,363,376 | 121,652,295 | |||
| Adjusted Earnings per share | 0.14 | 0.24 | |||
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US
GAAP.
- EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization.
- Adjusted EBITDA represents EBITDA before impairment and loss on vessels held for sale, gain/(loss) on sale of assets, gain/(loss) on derivatives, early redelivery income/(cost), other operating expenses and gain/(loss) on foreign currency.
- Adjusted Net income/(loss) represents Net income/(loss) before impairment and loss on vessels held for sale, gain/(loss) on sale of assets, gain/(loss) on derivatives, early redelivery income/(cost),other operating expenses and gain/(loss) on foreign currency.
- Adjusted earnings/(loss) per share represents Adjusted Net income/(loss) less preferred dividend and mezzanine equity measurement divided by the weighted average number of shares.
- EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings per share are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Company believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Company believes that including these supplemental financial measures assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our financial and operational performance in assessing whether to continue investing in us. The Company believes that EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share are useful in evaluating the Company’s operating performance from period to period because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, the calculation of Adjusted EBITDA and Adjusted Net Income/Loss generally further eliminates from EBITDA and Net Income/(Loss) respectively the effects from impairment and loss on vessels held for sale, gain/(loss) on sale of assets, gain/(loss) on derivatives, early redelivery income/(cost), other operating expenses and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. EBITDA, Adjusted EBITDA, Adjusted Net income and Adjusted earnings per share have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under US GAAP. While EBITDA and Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share, are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. In evaluating Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share should not be construed as an inference that our future results will be unaffected by the excluded items.
| TABLE 5: FLEET DATA, AVERAGE DAILY INDICATORS RECONCILIATION | |||||||
| Three-Months Period Ended March 31, | |||||||
| 2021 | 2022 | ||||||
| FLEET DATA | |||||||
| Number of vessels at period end | 43 | 40 | |||||
| Average age of fleet (in years) | 10.35 | 10.48 | |||||
| Ownership days(1) | 3,804 | 3,559 | |||||
| Available days(2) | 3,735 | 3,438 | |||||
| Average number of vessels in the period(3) | 42.27 | 39.54 | |||||
| AVERAGE DAILY RESULTS | |||||||
| Time charter equivalent rate(4) | $ | 15,567 | $ | 21,352 | |||
| Daily vessel operating expenses(5) | $ | 4,702 | $ | 5,722 | |||
| Daily vessel operating expenses excluding dry-docking and pre-delivery expenses(6) | $ | 4,350 | $ | 4,923 | |||
| Daily general and administrative expenses(7) | $ | 1,440 | $ | 1,520 | |||
| TIME CHARTER EQUIVALENT RATE RECONCILIATION | |||||||
| (In thousands of U.S. Dollars except for available days and Time charter equivalent rate) | |||||||
| Revenues | $ | 65,222 | $ | 81,102 | |||
| Less commissions | (2,704 | ) | (3,356 | ) | |||
| Less voyage expenses | (4,376 | ) | (4,338 | ) | |||
| Time charter equivalent revenue | $ | 58,142 | $ | 73,408 | |||
| Available days(2) | 3,735 | 3,438 | |||||
| Time charter equivalent rate(4) | $ | 15,567 | $ | 21,352 | |||
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(1) Ownership days represent the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
(2) Available days represent the total number of days in a period during which each vessel in our fleet was in our possession, net of off-hire days associated with scheduled maintenance, which includes major repairs, drydockings, vessel upgrades or special or intermediate surveys.
(3) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(4) Time charter equivalent rate, or TCE rate, represents our charter revenues less commissions and voyage expenses during a period divided by the number of available days during such period. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on period time charters and spot time charters with daily earnings generated by vessels on voyage charters, because charter rates for vessels on voyage charters are generally not expressed in per day amounts, while charter rates for vessels on period time charters and spot time charters generally are expressed in such amounts. We have only rarely employed our vessels on voyage charters and, as a result, generally our TCE rates approximate our time charter rates.
(5) Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. Vessel operating expenses include crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance including dry-docking, statutory and classification expenses and other miscellaneous items.
(6) Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by ownership days for such period. Dry-docking expenses include costs of shipyard, paints and agent expenses and pre-delivery expenses include initially supplied spare parts, stores, provisions and other miscellaneous items provided to a newbuild acquisition prior to their operation.
(7) Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. Daily general and administrative expenses include daily management fees payable to our Managers and daily company administration expenses.
Table 6: Detailed fleet and employment profile as of May 20, 2022
| Vessel Name | Dwt | Year Built1 | Country of Construction | Charter Type | Charter Rate2 | Commissions3 | Charter Period4 | ||||||||||
| CURRENT FLEET | |||||||||||||||||
| Panamax | |||||||||||||||||
| Katerina | 76,000 | 2004 | Japan | Period | $ | 23,000 | 5.00 | % | December 2020 | June 2022 | |||||||
| Period20 | 10,950 + * | 5.00 | % | July 2022 | June 2023 | ||||||||||||
| Maritsa | 76,000 | 2005 | Japan | Period20 | 10,950 + * | 5.00 | % | February 2022 | January 2023 | ||||||||
| Paraskevi 2 | 75,000 | 2011 | Japan | Period26 | $ | 13,800 | 5.00 | % | April 2021 | June 2022 | |||||||
| BPI 74 4TC * | 5.00 | % | June 2022 | July 2022 | |||||||||||||
| Efrossini | 75,000 | 2012 | Japan | Period22 | 3.75 | % | March 2022 | February 2023 | |||||||||
| Zoe11 | 75,000 | 2013 | Japan | Period23 | 5.00 | % | August 2021 | August 2022 | |||||||||
| Koulitsa 2 | 78,100 | 2013 | Japan | Period | $ | 24,000 | 3.75 | % | July 2021 | October 2022 | |||||||
| Kypros Land11 | 77,100 | 2014 | Japan | Period13 | $ | 13,800 | 3.75 | % | August 2020 | August 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | |||||||||||||
| Kypros Sea | 77,100 | 2014 | Japan | Period13 | $ | 13,800 | 3.75 | % | July 2020 | July 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | July 2022 | September 2022 | |||||||||||||
| $ | 24,123 | 3.75 | % | September 2022 | December 2022 | ||||||||||||
| BPI 82 5TC * - | 3.75 | % | December 2022 | July 2025 | |||||||||||||
| Kypros Bravery | 78,000 | 2015 | Japan | Period12 | $ | 11,750 | 3.75 | % | August 2020 | August 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | |||||||||||||
| Kypros Sky9 | 77,100 | 2015 | Japan | Period12 | $ | 11,750 | 3.75 | % | August 2020 | August 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | |||||||||||||
| Kypros Loyalty | 78,000 | 2015 | Japan | Period12 | $ | 11,750 | 3.75 | % | July 2020 | July 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | July 2022 | September 2022 | |||||||||||||
| $ | 23,153 | 3.75 | % | September 2022 | December 2022 | ||||||||||||
| BPI 82 5TC * - | 3.75 | % | December 2022 | July 2025 | |||||||||||||
| Kypros Spirit9 | 78,000 | 2016 | Japan | Period13 | $ | 13,800 | 3.75 | % | August 2020 | August 2022 | |||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | July 2025 | |||||||||||||
| Kamsarmax | |||||||||||||||||
| Pedhoulas Merchant | 82,300 | 2006 | Japan | Period | $ | 25,900 | 3.75 | % | March 2022 | March 2023 | |||||||
| Pedhoulas Trader | 82,300 | 2006 | Japan | Period24 | 15,500 + * | 5.00 | % | November 2021 | August 2022 | ||||||||
| Pedhoulas Leader | 82,300 | 2007 | Japan | Period | $ | 28,750 | 5.00 | % | November 2021 | September 2022 | |||||||
| Pedhoulas Commander | 83,700 | 2008 | Japan | Period | $ | 20,500 | 5.00 | % | August 2021 | November 2022 | |||||||
| Pedhoulas Cherry | 82,000 | 2015 | China | Period18 | $ | 23,000 | 5.00 | % | July 2021 | June 2022 | |||||||
| Period18 | $ | 24,000 | 5.00 | % | June 2022 | August 2023 | |||||||||||
| Pedhoulas Rose | 82,000 | 2017 | China | Period18,25 | 12,750 + * | 5.00 | % | April 2022 | October 2022 | ||||||||
| Pedhoulas Cedrus14 | 81,800 | 2018 | Japan | Period29 | $ | 27,800 | 3.75 | % | July 2021 | September 2022 | |||||||
| Vassos8 | 82,000 | 2022 | Japan | Spot | $ | 35,900 | 5.00 | % | May 2022 | August 2022 | |||||||
| Post-Panamax | |||||||||||||||||
| Marina | 87,000 | 2006 | Japan | Spot18 | $ | 32,500 | 5.00 | % | March 2022 | June 2022 | |||||||
| Xenia | 87,000 | 2006 | Japan | Period18 | $ | 24,200 | 5.00 | % | September 2021 | September 2022 | |||||||
| Sophia | 87,000 | 2007 | Japan | Spot18 | $ | 22,000 | 3.75 | % | March 2022 | May 2022 | |||||||
| Eleni | 87,000 | 2008 | Japan | Spot18 | $ | 35,500 | 5.00 | % | April 2022 | June 2022 | |||||||
| Martine | 87,000 | 2009 | Japan | Period18 | $ | 15,100 | 5.00 | % | June 2021 | August 2022 | |||||||
| Andreas K | 92,000 | 2009 | South Korea | Spot17,21 | $ | 30,000 | 5.00 | % | May 2022 | July 2022 | |||||||
| Panayiota K10 | 92,000 | 2010 | South Korea | Spot18,28 | $ | 28,500 | 5.00 | % | May 2022 | May 2022 | |||||||
| Agios Spyridonas10 | 92,000 | 2010 | South Korea | Spot17 | $ | 19,500 | 5.00 | % | April 2022 | June 2022 | |||||||
| Venus Heritage11 | 95,800 | 2010 | Japan | Spot17 | $ | 30,500 | 5.00 | % | May 2022 | June 2022 | |||||||
| Venus History11 | 95,800 | 2011 | Japan | Period18 | $ | 26,250 | 5.00 | % | January 2022 | December 2022 | |||||||
| Venus Horizon | 95,800 | 2012 | Japan | Period18 | $ | 27,950 | 5.00 | % | May 2022 | March 2023 | |||||||
| Venus Harmony | 95,700 | 2013 | Japan | Spot | $ | 25,000 | 5.00 | % | April 2022 | June 2022 | |||||||
| Troodos Sun16 | 85,000 | 2016 | Japan | Period18,19 | BPI 82 5TC * | 5.00 | % | June 2021 | March 2023 | ||||||||
| Troodos Air | 85,000 | 2016 | Japan | Period18 | $ | 28,000 | 5.00 | % | May 2022 | June 2023 | |||||||
| Troodos Oak | 85,000 | 2020 | Japan | Period30 | $ | 29,400 | 3.75 | % | July 2021 | September 2022 | |||||||
| Capesize | |||||||||||||||||
| Mount Troodos | 181,400 | 2009 | Japan | Period18 | $ | 34,500 | 3.75 | % | April 2022 | March 2023 | |||||||
| Kanaris | 178,100 | 2010 | China | Period5 | $ | 25,928 | 2.50 | % | September 2011 | September 2031 | |||||||
| Pelopidas | 176,000 | 2011 | China | Dry-dock | January 2022 | June 2022 | |||||||||||
| Period31,18 | $ | 25,250 | 3.75 | % | June 2022 | May 2025 | |||||||||||
| Lake Despina7 | 181,400 | 2014 | Japan | Period6 | $ | 25,200 | 5.00 | % | February 2022 | February 2025 | |||||||
| Stelios Y | 181,400 | 2012 | Japan | Period15 | $ | 24,400 | 3.75 | % | November 2021 | November 2024 | |||||||
| Maria | 181,300 | 2014 | Japan | Spot27 | BCI C14 * | 3.75 | % | February 2022 | June 2022 | ||||||||
| Michalis H | 180,400 | 2012 | Japan | Spot32 | BCI C14 * | 3.75 | % | May 2022 | August 2022 | ||||||||
| TOTAL | 4,187,900 | ||||||||||||||||
| Orderbook | |||||||||||||||||
| TBN | 87,000 | Q3 2022 | Japan | ||||||||||||||
| TBN | 87,000 | Q1 2023 | Japan | ||||||||||||||
| TBN | 87,000 | Q2 2023 | Japan | ||||||||||||||
| TBN | 82,000 | Q4 2023 | Japan | ||||||||||||||
| TBN | 82,000 | Q4 2023 | Japan | ||||||||||||||
| TBN | 82,000 | Q4 2023 | Japan | ||||||||||||||
| TBN | 82,000 | Q1 2024 | Japan | ||||||||||||||
| TBN | 82,000 | Q1 2024 | Japan | ||||||||||||||
| TOTAL | 671,000 | ||||||||||||||||
(1) For existing vessels, the year represents the year built. For any newbuilds, the date shown reflects the expected delivery dates.
(2) Quoted charter rates are the recognized daily gross charter rates. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rate represents the weighted average gross daily charter rate over the duration of the applicable charter period or series of charter periods, as applicable. In the case of a charter agreement that provides for additional payments, namely ballast bonus to compensate for vessel repositioning, the gross daily charter rate presented has been adjusted to reflect estimated vessel repositioning expenses. Gross charter rates are inclusive of commissions. Net charter rates are charter rates after the payment of commissions. In the case of voyage charters, the charter rate represents revenue recognized on a pro rata basis over the duration of the voyage from load to discharge port less related voyage expenses.
(3) Commissions reflect payments made to third-party brokers or our charterers.
(4) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of May 20, 2022, the scheduled start dates. Actual start dates and redelivery dates may differ from the referenced scheduled start and redelivery dates depending on the terms of the charter and market conditions and does not reflect the options to extend the period time charter.
(5) Charterer of MV Kanaris agreed to reimburse us for part of the cost of the scrubbers and BWTS to be installed on the vessel, which is recorded by increasing the recognized daily charter rate by
(6) A period time charter for a duration of 3 years at a gross daily charter rate of
(7) MV Lake Despina was sold and leased back in April 2021 on a bareboat charter basis for a period of seven years with a purchase option in favor of the Company five years and six months following the commencement of the bareboat charter period at a predetermined purchase price.
(8) MV Vassos was sold and leased back in May 2022 on a bareboat charter basis for a period of ten years with a purchase option in favor of the Company three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.
(9) MV Kypros Sky and MV Kypros Spirit were sold and leased back in December 2019 on a bareboat charter basis for a period of eight years, with purchase options in favor of the Company commencing three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.
(10) MV Panayiota K and MV Agios Spyridonas were sold and leased back in January 2020 on a bareboat charter basis for a period of six years, with purchase options in favor of the Company commencing three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.
(11) MV Zoe, MV Kypros Land, MV Venus Heritage and MV Venus History were sold and leased back in November 2019, on a bareboat charter basis, one for a period of eight years and three for a period of seven and a half years, with a purchase option in favor of the Company five years and nine months following the commencement of the bareboat charter period at a predetermined purchase price gross charter rate presented.
(12) A period time charter of 5 years at a daily gross charter rate of
(13) A period time charter of 5 years at a daily gross charter rate of
(14) MV Pedhoulas Cedrus was sold and leased back in February 2021 on a bareboat charter basis for a period of ten years with a purchase option in favor of the Company three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.
(15) In October 2021, the Company entered into a new period time charter for MV Stelios Y, for a duration of 3 years at a gross daily charter rate of
(16) MV Troodos Sun was sold and leased back in September 2021 on a bareboat charter basis for a period of ten years, with purchase options in favor of the Company commencing three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.
(17) Scrubber benefit was agreed on the basis of fuel consumption of heavy fuel oil and the price differential between the heavy fuel oil and the compliant fuel cost for the voyage and is included on the daily gross charter rate presented.
(18) Scrubber benefit was agreed on the basis of fuel consumption of heavy fuel oil and the price differential between the heavy fuel oil and the compliant fuel cost for the voyage and is not included on the daily gross charter rate presented.
(19) A period time charter of 22 to 26 months at a daily gross charter rate linked to the BPI-82 5TC times
(20) A period time charter of 11 to 13 months at a daily gross charter rate of
(21) A spot time charter at a gross daily charter rate of
(22) A period time charter of 11 to 14 months at a daily gross charter rate linked to the BPI-74 4TC times
(23) A period time charter of 10 to 13 months at a daily gross charter rate linked to the BPI-74 4TC times
(24) A period time charter of 7 to 10 months at a daily gross charter rate of
(25) A period time charter of 7 to 10 months at a daily gross charter rate of
(26) A period time charter of 11 to 14 months at a daily gross charter rate of
(27) A spot time charter at a gross daily charter rate linked to the Baltic Exchange Capesize Index C14 times
(28) A spot time charter at a gross daily charter rate of
(29) A period time charter ration of 11 to 14 months at a daily gross charter rate of
(30) A period time charter ration of 11 to 14 months at a daily gross charter rate of
(31) A period time charter for a duration of 3 years at a gross daily charter rate of
(32) A spot time charter at a gross daily charter rate linked to the Baltic Exchange Capesize Index C14 times
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 Exchange Act of 1934, as amended, and in Section 21E of the Securities Act of 1933, 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, 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 21 11888400
+357 25 887200
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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