Safe Bulkers, Inc. Reports Second Quarter and Six Months 2021 Results
Safe Bulkers (NYSE: SB) reported strong financial results for Q2 2021, with net revenues up 69% to $81.6 million, compared to $48.3 million in Q2 2020. Net income reached $32.4 million, a significant recovery from a loss of $13.9 million in the same quarter last year. Adjusted EBITDA surged to $254.1 million. The company also improved its time charter equivalent rate to $21,098, reflecting enhanced market conditions. Despite a $1.1 million negative impact from COVID-19, Safe Bulkers continues to focus on fleet renewal and debt reduction, highlighting a solid liquidity position with $127.4 million in cash as of June 30, 2021.
- Net revenues increased by 69% to $81.6 million in Q2 2021.
- Net income for Q2 2021 reached $32.4 million, up from a loss of $13.9 million in Q2 2020.
- Adjusted EBITDA rose to $254.1 million in Q2 2021.
- Time charter equivalent rate improved to $21,098 in Q2 2021 from $8,094 in Q2 2020.
- Liquidity strengthened with $127.4 million in cash as of June 30, 2021.
- COVID-19 expenses led to an additional $1.1 million cost in Q2 2021.
MONACO, July 28, 2021 (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 and six months periods ended June 30, 2021.
| Financial highlights | ||||||||||||||
| In million U.S. Dollars except per share data | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Six Months 2021 | Six Months 2020 | |||||||
| Net Revenues | 81.6 | 62.5 | 52.2 | 51.9 | 48.3 | 144.1 | 94.0 | |||||||
| Net income/(loss) | 32.4 | 21.3 | 7.6 | 3.3 | (13.9 | ) | 53.8 | (23.8 | ) | |||||
| Adjusted Net income/(loss)1 | 36.3 | 16.7 | 7.7 | 3.5 | (13.3 | ) | 52.9 | (23.5 | ) | |||||
| EBITDA2 | 50.2 | 39.3 | 26.2 | 22.1 | 5.7 | 89.5 | 15.4 | |||||||
| Adjusted EBITDA 2 | 54.1 | 34.6 | 26.3 | 22.3 | 6.3 | 88.7 | 15.7 | |||||||
| Earnings/(loss) per share basic and diluted 3 | 0.27 | 0.18 | 0.04 | 0.00 | (0.16 | ) | 0.45 | (0.29 | ) | |||||
| Adjusted earnings/(loss) per share basic and diluted 3 | 0.31 | 0.14 | 0.04 | 0.00 | (0.16 | ) | 0.45 | (0.29 | ) | |||||
| Average Daily results in U.S. Dollars | ||||||||||||||
| Time charter equivalent rate4 | 21,098 | 15,567 | 12,319 | 12,575 | 8,094 | 18,321 | 8,585 | |||||||
| Daily vessel operating expenses5 | 4,874 | 4,702 | 3,978 | 4,896 | 4,729 | 4,788 | 4,750 | |||||||
| Daily vessel operating expenses excluding dry-docking and pre-delivery expenses6 | 4,568 | 4,358 | 3,955 | 4,459 | 4,207 | 4,463 | 4,246 | |||||||
| Daily general and administrative expenses7 | 1,488 | 1,440 | 1,469 | 1,418 | 1,374 | 1,464 | 1,373 | |||||||
| In million U.S. Dollars | ||||||||||||||
| Total Cash8 | 127.4 | 130.1 | 124.0 | 106.7 | 118.8 | |||||||||
| Revolving credit facilities9 | 67.0 | 6.6 | 1.0 | 3.0 | 1.0 | |||||||||
| Financing Commitments10 | 54.7 | 54.7 | 46.2 | 0.0 | 0.0 | |||||||||
| Total Debt11 | 491.4 | 603.2 | 607.7 | 608.9 | 625.4 | |||||||||
_______________
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, impairment and loss on assets, loss on inventory valuation 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, loss on inventory valuation 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 Total Debt represents Long-term debt plus Current portion of long-term debt and Liability directly associated with assets held for sale, net of deferred financing costs.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: ''We are happy to present to our shareholders the financial results for the second quarter 2021, with strong profitability, reduced debt and substantial actions towards fleet renewal.''
Update on COVID-19, company's actions and status
There has been a negative effect from the COVID-19 pandemic on the Company's results of operations and financial condition during the second quarter, due to higher crew and related costs of about
The COVID-19 pandemic has had a significant impact on the shipping industry and seafarers in general, as port lockdowns were imposed globally during 2020 and 2021. The Company has worked extensively to find solutions focusing on effectively managing crew changes despite the ongoing port closures and travel restrictions imposed by governments around the world. 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 and mitigate and address the risks, effects and impact of COVID-19 on its operations and financial performance.
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
In May 2021, the Company filed a supplement to its prospectus supplement to increase the capacity under the ATM Program to allow for sales of Shares for aggregate gross offering proceeds of up to
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.
During the second quarter of 2021, we operated 41.49 vessels on average earning a TCE12 of
_______________
12 Time Charter Equivalent (“TCE”) rate represents charter revenues net of commissions and voyage expenses divided by the number of available days.
Table 1: Contracted employment profile of fleet ownership days as of July 23, 2021
| 2021 (remaining) | |
| 2021 (full year) | |
| 2022 | |
| 2023 |
The detailed employment profile of our fleet is presented in Table 6.
Fleet update
As of July 23, 2021, the orderbook of the Company consisted of eight Japanese, dry-bulk newbuilds of which five were Kamsarmax class vessels and three were Post-Panamax class vessels, with scheduled deliveries of two within 2022, four within 2023 and two within 2024. All eight newbuild vessels 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).
As of July 23, 2021 the Company had entered into agreements to acquire one second-hand Panamax class vessel and to sell six vessels, of which four were Panamax and two were Kamsarmax class vessels.
In more detail:
Orderbook
In October 2020, the Company entered into an agreement for the acquisition of one 82,000 dwt, Kamsarmax class newbuild vessel.
In December 2020, the Company entered into an agreement for the acquisition of one 87,000 dwt, Post-Panamax class newbuild vessel.
In May 2021, the Company entered into an agreement for the acquisition of two 87,000 dwt, Post-Panamax class newbuild vessels.
In June 2021, the Company entered into an agreement for the acquisition of one 82,000 dwt, Kamsarmax class newbuild vessel.
In July 2021, the Company entered into an agreement for the acquisition of three 82,000 dwt, Kamsarmax class newbuild vessels.
Second-hand acquisitions
In March 2021, the Company took delivery of MV Paraskevi 2, a 2011-built Japanese Panamax class vessel at a gross price of
In June 2021, the Company entered into an agreement for the acquisition of the 2013-built Japanese Panamax class MV Koulitsa 2, at a gross price of
Vessel sales
In January 2021, the Company entered into an agreement for the sale of the Panamax class MV Paraskevi, built 2003, at a gross sale price of
In January 2021, the Company entered into an agreement for the sale of the Panamax class MV Vassos, built 2004, at a gross sale price of
In May 2021, the Company entered into an agreement for the sale of the Kamsarmax class MV Pedhoulas Builder, built 2012, at a gross sale price of
In May 2021, the Company entered into an agreement for the sale of the Kamsarmax class MV Pedhoulas Farmer, built 2012, at a gross sale price of
In May 2021, the Company entered into an agreement for the sale of the Panamax class MV Maria, built 2003, at a gross sale price of
In June 2021, the Company entered into an agreement for the sale of the Panamax class MV Koulitsa, built 2003, at a gross sale price of
New credit facility
In June 2021, the Company entered into a credit facility of
Debt Profile
As of June 30, 2021, our consolidated debt before deferred financing costs was
During the second quarter of 2021, we voluntary prepaid debt in relation to vessels sales or debt refinancing in the aggregate amount of
Table 2: Loan repayment Schedule
(in USD millions)
| Ending December 31, | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028-2031 | Total |
| June 30, 2021 | 31.3 | 46.2 | 76.0 | 168.0 | 62.9 | 56.9 | 43.5 | 11.3 | 496.1 |
Liquidity, capital expenditure requirements and debt as of June 30, 2021
We had
We had a fleet of 40 vessels, three of which have been committed to be sold but have not yet been delivered to their new owners. In addition, the Company had committed to the purchase of a second-hand Panamax, and had placed orders for five newbuild vessels.
The remaining capital expenditure requirements were
The remaining proceeds in relation to committed sale of the three vessels were
We had
Liquidity, capital expenditure requirements and debt as of July 23, 2021
We had
We had a fleet of 40 vessels, three of which have been committed to be sold but have not yet been delivered to their new owners. In addition, the Company had committed the purchase of one second-hand Panamax vessel, and had placed orders for eight newbuild vessels.
The remaining capital expenditure requirements were
The remaining proceeds in relation to committed sale of the three vessels were
We had
Derivatives
In May 2021, the Company entered into a pay-fixed, receive-variable interest rate derivative contract commencing in May 2021 and maturing in May 2026, at a fixed rate of
During the second quarter the Company entered into forward freight agreements on the Panamax index for 90 days in aggregate for the period to June 2022, with the objective of reducing the risk arising from the volatility in the charter rates.
Subsequently, in July 2021, the Company entered into two pay-fixed, receive-variable interest rate derivative contracts commencing July 2021 and maturing July 2026: i) at a fixed rate of
Environmental Social Responsibility - Environmental investments - Dry-dockings
The Company continues the retrofit of its vessels with ballast water treatment systems, having installed such systems on 31 of its vessels as of June 30, 2021. In February 2021, the Company entered into an agreement for an additional scrubber installation in one of its Capesize class vessels, during the fourth quarter of 2021.
The Company has not scheduled dry-dockings for the third quarter of 2021 and has scheduled five dry-dockings for the fourth quarter 2021 with an estimated number of 120 down-time days.
Dividend Policy
The Company has not declared a dividend on the Company’s common stock for the second quarter of 2021. The Company had 119,488,328 shares of common stock issued and outstanding as of July 23, 2021.
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. The timing and amount of any dividends declared will depend on, among other things: (i) the Company’s earnings, financial condition and cash requirements and available sources of liquidity; (ii) decisions in relation to the Company’s growth 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, July 29, 2021 at 9:30 A.M. Eastern Time, the Company’s management team will host a conference call to discuss the Company’s financial results.
A telephonic replay of the conference and accompanying slides will be available following the completion of the call and will remain available until Wednesday, August 4, 2021. To listen to the archived audio file, visit our website www.safebulkers.com and click on Events & Presentations.
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 Second Quarter 2021 Results
During the second quarter of 2021, we operated in an improved charter market environment compared to the first quarter of 2021, with lower interest expenses, while our net revenues of
Net revenues: Net revenues increased by
Voyage expenses: Voyage expenses decreased to
Vessel operating expenses: Vessel operating expenses increased by
Depreciation: Depreciation decreased by
Interest expense: Interest expense decreased to
Impairment and loss on assets: Loss on sale of assets for the second quarter of 2021 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 expenses14: Daily general and administrative expenses, which include management fees payable to our Managers and daily company administrations expenses, increased by
Balance sheet
Assets held for sale/Liabilities directly associated with assets held for sale: As of June 30, 2021, we had classified the assets and liabilities directly associated with the vessels Maria, Koulitsa and Pedhoulas Farmer as assets held for sale and presented them on the balance sheet separately under (a) current assets in the amount of
Unaudited Interim Financial Information and Other Data
| SAFE BULKERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands of U.S. Dollars except for share and per share data) | |||||||||||
| Three-Months Period Ended June 30, | Six-Months Period Ended June 30, | ||||||||||
| 2020 | 2021 | 2020 | 2021 | ||||||||
| REVENUES: | |||||||||||
| Revenues | 50,054 | 84,963 | 97,640 | 150,185 | |||||||
| Commissions | (1,773 | ) | (3,385 | ) | (3,644 | ) | (6,089 | ) | |||
| Net revenues | 48,281 | 81,578 | 93,996 | 144,096 | |||||||
| EXPENSES: | |||||||||||
| Voyage expenses | (18,583 | ) | (3,430 | ) | (31,787 | ) | (7,806 | ) | |||
| Vessel operating expenses | (18,000 | ) | (18,406 | ) | (35,799 | ) | (36,294 | ) | |||
| Depreciation | (13,459 | ) | (13,006 | ) | (26,565 | ) | (26,330 | ) | |||
| General and administrative expenses | (5,230 | ) | (5,618 | ) | (10,345 | ) | (11,097 | ) | |||
| Impairment and loss on assets | — | (1,973 | ) | — | (3,393 | ) | |||||
| Early redelivery income | — | — | — | 7,555 | |||||||
| Operating (loss)/income | (6,991 | ) | 39,145 | (10,500 | ) | 66,731 | |||||
| OTHER (EXPENSE) / INCOME: | |||||||||||
| Interest expense | (5,868 | ) | (4,062 | ) | (12,292 | ) | (8,314 | ) | |||
| Other finance cost | (206 | ) | (73 | ) | (359 | ) | (224 | ) | |||
| Interest income | 135 | 19 | 519 | 52 | |||||||
| Loss on derivatives | (783 | ) | (2,266 | ) | (736 | ) | (3,162 | ) | |||
| Foreign currency gain/(loss) | 233 | 407 | 434 | (175 | ) | ||||||
| Amortization and write-off of deferred finance charges | (401 | ) | (724 | ) | (896 | ) | (1,144 | ) | |||
| Net (loss)/income | (13,881 | ) | 32,446 | (23,830 | ) | 53,764 | |||||
| Less Preferred dividend | 2,874 | 2,746 | 5,746 | 5,571 | |||||||
| Less/(Plus) Mezzanine equity measurement | 53 | — | 135 | (271 | ) | ||||||
| Net (loss)/income available to common shareholders | (16,808 | ) | 29,700 | (29,711 | ) | 48,464 | |||||
| (Loss)/earnings per share basic and diluted | (0.16 | ) | 0.27 | (0.29 | ) | 0.45 | |||||
| Weighted average number of shares | 102,726,265 | 109,696,378 | 103,067,556 | 106,547,372 | |||||||
| Six-Months Period Ended June 30, | ||||||
| 2020 | 2021 | |||||
| (In millions of U.S. Dollars) | ||||||
| CASH FLOW DATA | ||||||
| Net cash provided by operating activities | 20.4 | 85.9 | ||||
| Net cash (used in)/provided by investing activities | (40.9 | ) | 11.7 | |||
| Net cash provided by/(used in) financing activities | 11.4 | (83.2 | ) | |||
| Net (decrease)/increase in cash and cash equivalents | (9.1 | ) | 14.4 | |||
| SAFE BULKERS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands of U.S. Dollars) | ||||||
| December 31, 2020 | June 30, 2021 | |||||
| ASSETS | ||||||
| Cash, time deposits, and restricted cash | 105,218 | 115,211 | ||||
| Other current assets | 21,459 | 18,323 | ||||
| Assets held for sale | 8,057 | 37,981 | ||||
| Vessels, net | 942,164 | 859,960 | ||||
| Advances for vessels | 9,126 | 31,205 | ||||
| Restricted cash non-current | 18,754 | 12,150 | ||||
| Other non-current assets | 851 | 2,630 | ||||
| Total assets | 1,105,629 | 1,077,459 | ||||
| LIABILITIES AND EQUITY | ||||||
| Current portion of long-term debt | 75,784 | 27,270 | ||||
| Liabilities directly associated with assets held for sale | 3,983 | 17,235 | ||||
| Other current liabilities | 24,948 | 23,256 | ||||
| Long-term debt, net of current portion | 531,883 | 446,923 | ||||
| Other non-current liabilities | 6,172 | 8,485 | ||||
| Mezzanine equity | 18,112 | — | ||||
| Shareholders’ equity | 444,747 | 554,290 | ||||
| Total liabilities and equity | 1,105,629 | 1,077,459 | ||||
| TABLE 4 RECONCILIATION OF ADJUSTED NET (LOSS)/INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED (LOSS)/EARNINGS PER SHARE | ||||||||||||
| Three-Months Period Ended June 30, | Six-Months Period Ended June 30, | |||||||||||
| (In thousands of U.S. Dollars except for share and per share data) | 2020 | 2021 | 2020 | 2021 | ||||||||
| Adjusted Net Income/(Loss) | ||||||||||||
| Net (Loss)/Income | (13,881 | ) | 32,446 | (23,830 | ) | 53,764 | ||||||
| Plus Impairment and loss on assets | — | 1,973 | — | 3,393 | ||||||||
| Plus Loss on derivatives | 783 | 2,266 | 736 | 3,162 | ||||||||
| Plus Foreign currency (gain)/loss | (233 | ) | (407 | ) | (434 | ) | 175 | |||||
| Less Early Redelivery Income | — | — | — | (7,555 | ) | |||||||
| Adjusted net (loss)/income | (13,331 | ) | 36,278 | (23,528 | ) | 52,939 | ||||||
| EBITDA - Adjusted EBITDA | ||||||||||||
| Net (loss)/income | (13,881 | ) | 32,446 | (23,830 | ) | 53,764 | ||||||
| Plus Net Interest expense | 5,733 | 4,043 | 11,773 | 8,262 | ||||||||
| Plus Depreciation | 13,459 | 13,006 | 26,565 | 26,330 | ||||||||
| Plus Amortization and write-off of deferred finance charges | 401 | 724 | 896 | 1,144 | ||||||||
| EBITDA | 5,712 | 50,219 | 15,404 | 89,500 | ||||||||
| Plus Impairment and loss on assets | — | 1,973 | — | 3,393 | ||||||||
| Less Early Redelivery Income | — | — | — | (7,555 | ) | |||||||
| Plus Loss on derivatives | 783 | 2,266 | 736 | 3,162 | ||||||||
| Plus Foreign currency (gain)/loss | (233 | ) | (407 | ) | (434 | ) | 175 | |||||
| ADJUSTED EBITDA | 6,262 | 54,051 | 15,706 | 88,675 | ||||||||
| Earnings per share | ||||||||||||
| Net (loss)/income | (13,881 | ) | 32,446 | (23,830 | ) | 53,764 | ||||||
| Less Preferred dividend | 2,874 | 2,746 | 5,746 | 5,571 | ||||||||
| Less/(Plus) Mezzanine equity measurement | 53 | — | 135 | (271 | ) | |||||||
| Net (loss)/income available to common shareholders | (16,808 | ) | 29,700 | (29,711 | ) | 48,464 | ||||||
| Weighted average number of shares | 102,726,265 | 109,696,378 | 103,067,556 | 106,547,372 | ||||||||
| (Loss)/Earnings per share | (0.16 | ) | 0.27 | (0.29 | ) | 0.45 | ||||||
| Adjusted (Loss)/Earnings per share | ||||||||||||
| Adjusted Net (Loss)/Income | (13,331 | ) | 36,278 | (23,528 | ) | 52,939 | ||||||
| Less Preferred dividend | 2,874 | 2,746 | 5,746 | 5,571 | ||||||||
| Less/(Plus) Mezzanine equity measurement | 53 | — | 135 | (271 | ) | |||||||
| Adjusted Net (loss)/income available to common shareholders | (16,258 | ) | 33,532 | (29,409 | ) | 47,639 | ||||||
| Weighted average number of shares | 102,726,265 | 109,696,378 | 103,067,556 | 106,547,372 | ||||||||
| Adjusted (Loss)/Earnings per share | (0.16 | ) | 0.31 | (0.29 | ) | 0.45 | ||||||
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US
GAAP.
- EBITDA represents Net income before interest, income tax expense, depreciation and amortization.
- Adjusted EBITDA represents EBITDA before loss on sale of assets, loss on derivatives, early redelivery income and gain/(loss) on foreign currency.
- Adjusted Net income/(loss) represents Net income/(loss) before impairment and loss on assets, loss on derivatives, early redelivery income 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 assets, loss on derivatives, early redelivery income and gain/(loss) on foreign currency and loss on inventory valuation, 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 June 30, | Six-Months Period Ended June 30, | ||||||||||||||
| 2020 | 2021 | 2020 | 2021 | ||||||||||||
| FLEET DATA | |||||||||||||||
| Number of vessels at period’s end | 42 | 40 | 42 | 40 | |||||||||||
| Average age of fleet (in years) | 9.60 | 10.27 | 9.60 | 10.27 | |||||||||||
| Ownership days (1) | 3,806 | 3,776 | 7,537 | 7,580 | |||||||||||
| Available days (2) | 3,669 | 3,704 | 7,246 | 7,439 | |||||||||||
| Average number of vessels in the period (3) | 41.82 | 41.49 | 41.41 | 41.88 | |||||||||||
| AVERAGE DAILY RESULTS | |||||||||||||||
| Time charter equivalent rate (4) | $ | 8,094 | $ | 21,098 | $ | 8,585 | $ | 18,321 | |||||||
| Daily vessel operating expenses (5) | $ | 4,729 | $ | 4,874 | $ | 4,750 | $ | 4,788 | |||||||
| Daily vessel operating expenses excluding dry-docking and pre-delivery expenses (6) | $ | 4,207 | $ | 4,568 | $ | 4,246 | $ | 4,463 | |||||||
| Daily general and administrative expenses (7) | $ | 1,374 | $ | 1,488 | $ | 1,373 | $ | 1,464 | |||||||
| TIME CHARTER EQUIVALENT RATE RECONCILIATION | |||||||||||||||
| (In thousands of U.S. Dollars except for available days and Time charter equivalent rate) | |||||||||||||||
| Revenues | $ | 50,054 | $ | 84,963 | $ | 97,640 | $ | 150,185 | |||||||
| Less commissions | (1,773 | ) | (3,385 | ) | (3,644 | ) | (6,089 | ) | |||||||
| Less voyage expenses | (18,583 | ) | (3,430 | ) | (31,787 | ) | (7,806 | ) | |||||||
| Time charter equivalent revenue | $ | 29,698 | $ | 78,148 | $ | 62,209 | $ | 136,290 | |||||||
| Available days (2) | 3,669 | 3,704 | 7,246 | 7,439 | |||||||||||
| Time charter equivalent rate (4) | $ | 8,094 | $ | 21,098 | $ | 8,585 | $ | 18,321 | |||||||
_____________
(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 or second hand 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 July 23, 2021
| Vessel Name | Dwt | Year Built 1 | Country of Construction | Charter Type | Charter Rate 2 | Commissions 3 | Charter Period 4 | |||||||||||
| CURRENT FLEET | ||||||||||||||||||
| Panamax | ||||||||||||||||||
| Maria 19 | 76,000 | 2003 | Japan | Spot | $ | 25,000 | 3.75 | % | June 2021 | August 2021 | ||||||||
| Koulitsa 20 | 76,900 | 2003 | Japan | Period | $ | 19,000 | 5.00 | % | April 2021 | September 2021 | ||||||||
| Katerina | 76,000 | 2004 | Japan | Period | 5.00 | % | December 2020 | October 2021 | ||||||||||
| Period | $ | 23,000 | 5.00 | % | October 2021 | March 2022 | ||||||||||||
| Maritsa | 76,000 | 2005 | Japan | Period | 3.75 | % | December 2020 | October 2021 | ||||||||||
| Paraskevi2 | 75,000 | 2011 | Japan | Period | $ | 13,800 | 5.00 | % | April 2021 | July 2022 | ||||||||
| Efrossini | 75,000 | 2012 | Japan | Period | 5.00 | % | December 2020 | October 2021 | ||||||||||
| Zoe 11 | 75,000 | 2013 | Japan | Period | $ | 11,650 | 5.00 | % | September 2020 | July 2021 | ||||||||
| Period | 5.00 | % | August 2021 | May 2022 | ||||||||||||||
| Kypros Land 11 , 15 | 77,100 | 2014 | Japan | Period | $ | 13,800 | 3.75 | % | August 2020 | August 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | ||||||||||||||
| Kypros Sea 15 | 77,100 | 2014 | Japan | Period | $ | 13,800 | 3.75 | % | July 2020 | July 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | July 2022 | July 2025 | ||||||||||||||
| Kypros Bravery 14 | 78,000 | 2015 | Japan | Period | $ | 11,750 | 3.75 | % | August 2020 | August 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | ||||||||||||||
| Kypros Sky 9 , 14 | 77,100 | 2015 | Japan | Period | $ | 11,750 | 3.75 | % | August 2020 | August 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | August 2022 | August 2025 | ||||||||||||||
| Kypros Loyalty 14 | 78,000 | 2015 | Japan | Period | $ | 11,750 | 3.75 | % | July 2020 | July 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | July 2022 | July 2025 | ||||||||||||||
| Kypros Spirit 9, 15 | 78,000 | 2016 | Japan | Period | $ | 13,800 | 3.75 | % | July 2020 | July 2022 | ||||||||
| BPI 82 5TC * - | 3.75 | % | July 2022 | July 2025 | ||||||||||||||
| Kamsarmax | ||||||||||||||||||
| Pedhoulas Merchant | 82,300 | 2006 | Japan | Period | $ | 25,250 | 5.00 | % | June 2021 | October 2021 | ||||||||
| Pedhoulas Trader | 82,300 | 2006 | Japan | Period | 5.00 | % | February 2021 | December 2021 | ||||||||||
| Pedhoulas Leader | 82,300 | 2007 | Japan | Period | 5.00 | % | December 2020 | August 2021 | ||||||||||
| Pedhoulas Commander | 83,700 | 2008 | Japan | Period | $ | 9,950 | 5.00 | % | June 2020 | August 2021 | ||||||||
| Period | $ | 20,500 | 5.00 | % | August 2021 | July 2022 | ||||||||||||
| Pedhoulas Fighter | 81,600 | 2012 | China | Period 12 | $ | 19,700 | 5.00 | % | April 2021 | November 2021 | ||||||||
| Pedhoulas Farmer 5 | 81,600 | 2012 | China | Spot | $ | 23,000 | 5.00 | % | April 2021 | July 2021 | ||||||||
| Pedhoulas Cherry | 82,000 | 2015 | China | Period 13 | $ | 23,000 | 5.00 | % | June 2021 | March 2022 | ||||||||
| Pedhoulas Rose 6 | 82,000 | 2017 | China | Period 13 | $ | 13,750 | 5.00 | % | December 2020 | September 2021 | ||||||||
| Pedhoulas Cedrus18 | 82,000 | 2017 | China | Period | $ | 27,800 | 3.75 | % | July 2021 | May 2022 | ||||||||
| Post-Panamax | ||||||||||||||||||
| Marina | 87,000 | 2006 | Japan | Spot12 | $ | 34,000 | 5.00 | % | July 2021 | August 2021 | ||||||||
| Xenia | 87,000 | 2006 | Japan | Period 12 | $ | 20,750 | 5.00 | % | March 2021 | September 2021 | ||||||||
| Period | $ | 24,200 | 5.00 | % | September 2021 | June 2022 | ||||||||||||
| Sophia | 87,000 | 2,007 | Japan | Spot | $ | 27,250 | 5.00 | % | June 2021 | July 2021 | ||||||||
| Spot | $ | 25,000 | 5.00 | % | July 2021 | September 2021 | ||||||||||||
| Eleni | 87,000 | 2008 | Japan | Spot12 | $ | 27,850 | 5.00 | % | June 2021 | August 2021 | ||||||||
| Martine | 87,000 | 2009 | Japan | Period13 | $ | 15,100 | 5.00 | % | June 2021 | August 2022 | ||||||||
| Andreas K | 92,000 | 2009 | South Korea | Spot | $ | 29,000 | 5.00 | % | June 2021 | July 2021 | ||||||||
| Spot | $ | 30,000 | 5.00 | % | July 2021 | September 2021 | ||||||||||||
| Panayiota K 10 | 92,000 | 2010 | South Korea | Spot 13 | $ | 34,500 | 5.00 | % | July 2021 | August 2021 | ||||||||
| Agios Spyridonas 10 | 92,000 | 2010 | South Korea | Spot | $ | 30,850 | 3.75 | % | June 2021 | August 2021 | ||||||||
| Spot | $ | 31,500 | 3.75 | % | August 2021 | September 2021 | ||||||||||||
| Venus Heritage 11 | 95,800 | 2010 | Japan | Spot 12 | $ | 32,000 | 4.50 | % | June 2021 | August 2021 | ||||||||
| Venus History 11 | 95,800 | 2011 | Japan | Spot13 | $ | 32,500 | 5.00 | % | June 2021 | August 2021 | ||||||||
| Venus Horizon | 95,800 | 2012 | Japan | Spot13 | $ | 35,500 | 5.00 | % | July 2021 | August 2021 | ||||||||
| Troodos Sun | 85,000 | 2016 | Japan | Spot | BPI 82 5TC * | 5.00 | % | June 2021 | March 2023 | |||||||||
| Troodos Air | 85,000 | 2016 | Japan | Spot13 | $ | 16,350 | 5.00 | % | March 2021 | May 2022 | ||||||||
| Troodos Oak | 85,000 | 2020 | Japan | Spot | $ | 29,400 | 3.75 | % | July 2021 | May 2022 | ||||||||
| Capesize | ||||||||||||||||||
| Mount Troodos 16 | 181,400 | 2009 | Japan | Period 12 | $ | 26,600 | 5.00 | % | April 2021 | January 2022 | ||||||||
| Kanaris | 178,100 | 2010 | China | Period 7 | $ | 25,928 | 2.50 | % | September 2011 | September 2031 | ||||||||
| Pelopidas | 176,000 | 2011 | China | Period | $ | 38,000 | 5.00 | % | January 2012 | January 2022 | ||||||||
| Lake Despina 21 | 181,400 | 2014 | Japan | Period 8 | BCI * | 5.00 | % | February 2021 | January 2022 | |||||||||
| TOTAL | 3,705,100 | |||||||||||||||||
| Orderbook and Second-hand acquisition | ||||||||||||||||||
| Koulitsa2 22 | 78,100 | 2013 | Japan | Period | $ | 24,000 | 3.75 | % | July 2021 | June 2022 | ||||||||
| TBN17 | 82,000 | Q2 2022 | 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 | |||||||||||||||
| TBN | 87,000 | Q3 2022 | Japan | |||||||||||||||
| TBN | 87,000 | Q1 2023 | Japan | |||||||||||||||
| TBN | 87,000 | Q2 2023 | Japan | |||||||||||||||
(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 July 23, 2021, 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) MV Pedhoulas Farmer was sold and leased back in 2015 on a bareboat charter basis for a period of 10 years, with a purchase obligation at the end of the bareboat charter period and purchase options in favor of the Company after the second year of the bareboat charter, at annual intervals and predetermined purchase prices. On May 7, 2021, the Company entered into an agreement for the sale of MV Pedhoulas Farmer which sale is expected to be consummated in September 2021.
(6) MV Pedhoulas Rose was sold and leased back, in 2017 on a bareboat charter basis for a period of 10 years, with a purchase obligation at the end of the bareboat charter period and purchase options in favor of the Company after the second year of the bareboat charter, at annual intervals and predetermined purchase prices.
(7) Charterer 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
(8) A period time charter of 11 to 13 months at a gross daily charter rate linked to the Baltic Exchange Capesize Index (“BCI'') times
(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.
(12) 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.
(13) 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.
(14) A period time charter of 5 years at a daily gross charter rate of
(15) A period time charter of 5 years at a daily gross charter rate of
(16) A period time charter at a gross daily charter rate linked to the BCI' times
(17) The newbuild vessel will be sold and leased back upon delivery in 1H 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.
(18) 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.
(19) The Company has entered an agreement to sell the vessel with expected delivery to her new owners in August 2021.
(20) The Company has entered an agreement to sell the vessel with expected delivery to her new owners in October 2021.
(21) 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.
(22) On June 16, 2021, the Company entered into an agreement for the acquisition of the 2013-built Japanese Panamax class MV Koulitsa 2. The vessel was delivered to the Company on July 26, 2021 and chartered for 11 to 14 months at a gross daily charter rate of
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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