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 nine months
period ended September 30, 2020.
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Financial
highlights |
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In million U.S. Dollars except per share data |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Nine Months 2020 |
Nine Months 2019 |
Net Revenues |
51.9 |
48.3 |
|
|
45.7 |
|
|
53.2 |
|
50.7 |
|
145.9 |
|
|
144.5 |
|
Net income/(loss) |
3.3 |
|
(13.9 |
) |
|
(9.9 |
) |
|
3.6 |
|
5.2 |
|
(20.5 |
) |
|
12.5 |
|
Adjusted Net income/(loss)1 |
3.5 |
|
(13.3 |
) |
|
(10.2 |
) |
|
3.5 |
|
5.9 |
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(20.0 |
) |
|
13.2 |
|
EBITDA2 |
22.1 |
|
5.7 |
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|
9.7 |
|
|
23.1 |
|
24.5 |
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37.5 |
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70.3 |
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Adjusted EBITDA 2 |
22.3 |
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6.3 |
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9.4 |
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23.1 |
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25.1 |
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38.1 |
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71.0 |
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Earnings/(loss) per share basic and diluted3 |
0.00 |
(0.16 |
) |
|
(0.12 |
) |
|
0.01 |
|
0.02 |
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(0.29 |
) |
|
0.04 |
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Adjusted (loss)/earnings per share basic and diluted 3 |
0.00 |
(0.16 |
) |
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(0.13 |
) |
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0.01 |
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0.03 |
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(0.28 |
) |
|
0.04 |
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Average Daily
results in U.S. Dollars |
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Time charter equivalent rate4 |
12,575 |
|
8,094 |
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|
9,089 |
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|
13,707 |
|
13,311 |
|
9,940 |
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|
12,513 |
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Daily vessel operating expenses5 |
4,896 |
|
4,729 |
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|
4,771 |
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5,103 |
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4,448 |
|
4,799 |
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|
4,406 |
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Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses6 |
4,459 |
|
4,207 |
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|
4,285 |
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|
4,540 |
|
4,053 |
|
4,318 |
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|
4,162 |
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Daily general and administrative expenses7 |
1,418 |
|
1,374 |
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|
1,371 |
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|
1,414 |
|
1,363 |
|
1,388 |
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|
1,368 |
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In million U.S. Dollars |
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Total Cash8 |
106.7 |
|
118.8 |
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|
109.3 |
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120.1 |
|
87.0 |
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Liquidity9 |
109.7 |
|
119.8 |
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145.7 |
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178.0 |
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87.0 |
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Total Debt10 |
608.9 |
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625.4 |
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605.2 |
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601.0 |
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563.8 |
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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 cost, loss on
inventory valuation and gain/(loss) on foreign currency. See Table
4.
2 EBITDA is a non-GAAP measure and represents Net
(loss)/income 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 Liquidity represents Total Cash plus contracted undrawn
borrowing capacity under revolving credit facilities and secured
commitments including sale and lease back financing.
10 Total Debt represents Long-term debt plus Current
portion of long-term debt, net of deferred financing costs.
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: ''Our financial performance gradually improved in parallel
with the chartering market during the 3rd quarter. At the same
time, we focused on developing a plan for renewing our fleet with
modern designs that adhere to the new environmental regulations.
Due to market uncertainties, we remain cautious and we believe that
our liquidity position which exceeds $130 million provides us with
the required flexibility.''
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 year to date, due to lower demand which
resulted in relatively lower charter rates, and higher crew and
related costs. Any future impact of COVID-19 on the Company’s
results of operations and financial condition and any long-term
impact of the pandemic on the dry bulk industry, will depend on
future developments, which are highly uncertain and cannot be
predicted, including a potential second wave of the pandemic and
any new potential restrictions imposed, new information which may
emerge concerning the severity of the virus and/or actions taken to
contain or treat its impact, as well as political implications that
could further impact world trade and global growth.
The COVID-19 pandemic has had significant impact
on the shipping industry and our seafarers as port lockdowns were
imposed globally and certain ports that had opened have
subsequently closed again for crew changes. The Company has worked
extensively to find solutions focusing on effectively managing crew
changes despite the ongoing 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 our 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 may offer and sell shares of its common stock
(“Shares”) from time to time up to aggregate gross offering
proceeds of $23.5 million through an “at-the-market” equity
offering program (the “ATM Program”). As of November 6, 2020,
the Company had not offered to sell and has not sold any Shares
under the ATM Program.
Chartering our fleetOur 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 third quarter of 2020, we operated
42.00 vessels on average earning a TCE11 of $12,575 compared to
41.00 vessels earning a TCE of $13,311 during the same period in
2019. Our contracted employment profile is presented below in Table
1.
11 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 November 6, 2020
2020 (remaining) |
67 |
% |
2020 (full year) |
95 |
% |
2021 |
26 |
% |
2022 |
19 |
% |
The detailed employment profile is presented in
Table 6. Scrubber benefit for scrubber fitted vessels is calculated
on the basis of fuel consumption of heavy fuel oil and price
differential between heavy fuel oil and compliant fuel cost for the
specific voyage and is either presented as part of the daily
charter hire in Table 6, or in cases where it can not be estimated
is not part of the stated daily charter hire.
Orderbook and financing
In October 2020, the Company planning a gradual
fleet renewal with modern vessels, entered into an agreement for
the acquisition of a Japanese-built, dry-bulk, Kamsarmax class,
82,000 dwt, newbuild vessel with a scheduled delivery within the
first half of 2022. The vessel is designed to meet the latest
requirements of Energy Efficiency Design Index to Green House Gas,
GHG emissions, and 'EEDI Phase 3'. It will also comply with the
latest NOx emissions regulation, NOx-Tier III.
At the same time, the Company entered into a
sale and lease back through a bareboat charter agreement with a
third party for 90% financing of this acquisition, minimizing
impact on liquidity. The bareboat charter to be consummated upon
delivery will have a duration of ten years with a purchase
obligation at a predetermined price on termination and purchase
options commencing three years following the commencement of the
bareboat charter period in the Company's favor.
Liquidity
As of September 30, 2020, we had liquidity of
$109.7 million, which included cash and cash equivalents,
restricted cash and funds available under our unsecured revolving
credit facility and no capital expenditure requirements in relation
to newbuild vessels.
As of November 6, 2020, we had liquidity of
$136.0 million, which included cash and cash equivalents,
restricted cash, funds available under our unsecured revolving
credit facility and sale and lease back financing of the newbuild
Kamsarmax class vessel and aggregate remaining capital expenditure
in relation to the orderbook of $27.3 million.
Debt Profile - Leverage
As of September 30, 2020, our consolidated debt
before deferred financing costs was $613.7 million and our
consolidated leverage12 was 66% versus 68% as of June 30, 2020.
The loan repayment schedule of the Company as of
September 30, 2020, is presented below in Table 2.
12 Consolidated leverage is a non-GAAP measure
and represents total consolidated liabilities divided by total
consolidated assets. Total consolidated assets are based on the
market value of all vessels owned or leased on a finance lease
taking into account their employment, and the book value of all
other assets. This measure assists our management and investors by
increasing the comparability of our leverage from period to
period.
Table 2: Loan repayment
Schedule(in USD millions)
Ending December 31, |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
September 30, 2020 |
11.2 |
72.4 |
113.6 |
120.0 |
171.9 |
66.8 |
16.2 |
41.6 |
613.7 |
Interest rate derivatives
During the third quarter of 2020, the Company
entered into eleven pay-fixed, receive-variable interest rate
derivative contracts commencing in the third quarter of 2020 with
maturities ranging from August 2024 to August 2025 and at fixed
rates ranging from 0.322% to 0.40% for an aggregate notional amount
of $107.0 million. As of September 30, 2020, the aggregate notional
amount of interest rate derivative contracts entered into by the
Company was $244.6 million or about 40% of the aggregate debt
outstanding as of that point in time.
Environmental Social Responsibility -
Environmental investments
In the context of our Environmental Social
Responsibility policies, the Company is undertaking environmental
investments mainly in scrubbers and ballast water treatment
systems. As of September 30, 2020, the Company has completed the
installation of 20 scrubbers and continues the project of
retrofitting BWTS in all vessels of the Company's fleet, having
installed 30 systems to date. The aggregate cost of our
environmental investments as of quarter end was $66.7 million.
The scheduled number and estimated down-time days
for dry-dockings and environmental investments as of September 30,
2020 for the subsequent two quarters, is presented in Table 3.
Table 3: Scheduled number and estimated
down-time for dry-dockings and environmental
investments.
|
Down time in Days |
|
Q4 2020 |
Q1 2021 |
Number of vessels |
2* |
2* |
Total down time |
20 |
40 |
* Partial completion.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the third quarter of 2020. The Company
had 102,174,594 shares of common stock issued and outstanding as of
November 6, 2020.
The aggregate cash dividend of $0.50 per share
declared by the Company on each of its 8.00% Series C Cumulative
Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C) and 8.00%
Series D Cumulative Redeemable Perpetual Preferred Shares (NYSE:
SB.PR.D) for the period from July 30, 2020 to October 29, 2020,
which was paid on October 30, 2020 to the respective shareholders
of record as of October 22, 2020, was $2.75 million.
A Company’s subsidiary declares a cash dividend on
a quarterly basis on each of its 2.95% Series A Cumulative
Redeemable Perpetual Preferred Shares (‘Series A shares’) to the
respective shareholders of record, presented under the caption
“Mezzanine Equity” in the condensed consolidated balance sheets.
The aggregate cash dividend declared for the Series A shares for
the period from July 1, 2020 to September 30, 2020, which was paid
on September 30, 2020, was $0.1 million. The aggregate cash
dividend to be declared for the Series A shares for the period from
October 1, 2020 to December 31, 2020, payable on December 31, 2020,
is $0.1 million.
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, November 12, 2020 at 9:30 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.
A telephonic replay of the conference call will be
available until November 19, 2020 by dialing 1 (866) 331-1332 (US
Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44
(0) 3333 009785 (Standard International Dial In). Access Code:
1859591#
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 Third Quarter 2020
Results
During the third quarter of 2020, we operated in a
relatively weaker charter market environment compared to the same
period in 2019. This is reflected in our reduced TCE of $12,575 for
the third quarter of 2020, compared to $13,311 during the same
period in 2019. Net revenues were supported by the increased
earnings from scrubber fitted vessels notwithstanding the reduced
price differential between heavy fuel oil and compliant fuels, due
to low fuel cost environment, and by revenue contributed by the
newbuild vessel delivered to us in April 2020. Voyage expenses
increased due to increased vessel repositioning expenses, higher
loss on bunkers sales due to low fuel cost environment and
consumption costs for scrubber fitted vessels as explained below.
As a result of the above, the net income for the third quarter of
2020, reached $3.3 million compared to net income of $5.2 million
during the same period in 2019. In more detail, the change in net
income resulted from the following main factors:
Net revenues: Net revenues increased by 2% to $51.9
million for the third quarter of 2020, compared to $50.7 million
for the same period in 2019, assisted mainly by the additional
revenues earned by our scrubber fitted vessels and the additional
vessel delivered in 2020, partially offset by the reduced TCE.
Voyage expenses: Voyage expenses increased to $5.1
million for the third quarter of 2020 compared to $3.6 million for
the same period in 2019, as a result of increased vessel
repositioning expenses, higher loss on bunkers sales and bunker
consumption costs for scrubber fitted vessels under charter
agreements which provide for variable consideration based on the
bunker consumption.
Vessel operating expenses: Vessel operating
expenses increased by 13% to $18.9 million for the third quarter of
2020 compared to $16.8 million for the same period in 2019, mainly
as a result of: i) spares, stores and provisions of $4.0 million
for the third quarter of 2020, compared to $3.1 million for the
same period in 2019, ii) repairs and maintenance of $3.2 million
for the third quarter of 2020, compared to $2.4 million for the
same period in 2019, iii) crew wages and related costs of $9.0
million for the third quarter of 2020 compared to $8.3 million for
the same period in 2019, and iv) dry docking expense of $1.7
million related to four fully and one partially completed dry
dockings during the third quarter of 2020, compared to $1.5 million
related to four fully and three partially completed dry dockings
for the same period of 2019, offset by the reduction in lubricants
of $0.9 million for the third quarter of 2020, compared to $1.2
million for the same period in 2019. The Company expenses
dry-docking and pre-delivery costs as incurred, which costs may
vary from period to period. Excluding dry-docking and
pre-delivery costs of $1.7 and $1.5 million for the third quarter
of 2020 and 2019, respectively, vessel operating expenses increased
by 13% to $17.2 million for the third quarter of 2020 compared to
$15.3 million for the same period in 2019, due to completed
drydockings affecting costs of spares and repairs and maintenance
and increased crew repatriation and travel expenses due to
COVID-19. Dry-docking expense is related to the number of
dry-dockings in each period and pre-delivery expenses to the number
of vessel deliveries and second hand acquisitions in each period.
Certain other shipping companies may defer and amortize dry-docking
expense and many do not include dry-docking expenses within vessel
operating expenses costs and present these separately.
Depreciation: Depreciation increased by 9% to $13.8
million for the third quarter of 2020, compared to $12.7 million
for the same period in 2019, as a result of the commencement of
depreciation of environmental investmentsthat were completed
following the third quarter of 2019 and depreciation of the
newbuild delivered during the previous quarter.
Interest expense: Interest expense decreased to
$4.6 million in the third quarter of 2020 compared to $6.6 million
for the same period in 2019, as a result of the decreased USD
LIBOR13 affecting the weighted average interest rate of our loans
and credit facilities.
Daily vessel operating expenses14: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, increased by
10% to $4,896 for the third quarter of 2020 compared to $4,448 for
the same period in 2019. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses increased by 10% to $4,459
for the third quarter of 2020 compared to $4,053 for the same
period in 2019.
Daily general and administrative expenses14: Daily
general and administrative expenses, which include management fees
payable to our Managers15 and daily company administrations
expenses, increased by 4% to $1,418 for the third quarter of 2020,
compared to $1,363 for the same period in 2019, as a result of
increased company administration expenses.
13 London interbank offered rate.
14 See Table 5.
15 Safety Management Overseas S.A. and Safe
Bulkers Management Limited, each of which is a related party that
is referred to in this press release as “our Manager” and
collectively “our Managers’’.
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 September
30, |
|
Nine-Months Period Ended September
30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
REVENUES: |
|
|
|
|
|
|
|
Revenues |
52,927 |
|
|
|
53,992 |
|
|
|
150,971 |
|
|
|
151,632 |
|
|
Commissions |
(2,213 |
) |
|
|
(2,059 |
) |
|
|
(6,457 |
) |
|
|
(5,703 |
) |
|
Net revenues |
50,714 |
|
|
|
51,933 |
|
|
|
144,514 |
|
|
|
145,929 |
|
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
(3,581 |
) |
|
|
(5,080 |
) |
|
|
(8,664 |
) |
|
|
(36,866 |
) |
|
Vessel operating expenses |
(16,776 |
) |
|
|
(18,917 |
) |
|
|
(49,320 |
) |
|
|
(54,716 |
) |
|
Depreciation |
(12,669 |
) |
|
|
(13,829 |
) |
|
|
(37,375 |
) |
|
|
(40,395 |
) |
|
General and administrative expenses |
(5,140 |
) |
|
|
(5,480 |
) |
|
|
(15,307 |
) |
|
|
(15,825 |
) |
|
Loss from inventory valuation |
(348 |
) |
|
|
— |
|
|
|
(348 |
) |
|
|
— |
|
|
Early redelivery cost |
(63 |
) |
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
Operating income/(loss) |
12,137 |
|
|
|
8,627 |
|
|
|
33,437 |
|
|
|
(1,873 |
) |
|
OTHER (EXPENSE) /
INCOME: |
|
|
|
|
|
|
|
Interest
expense |
(6,634 |
) |
|
|
(4,608 |
) |
|
|
(20,641 |
) |
|
|
(16,900 |
) |
|
Other finance cost |
(95 |
) |
|
|
(108 |
) |
|
|
(212 |
) |
|
|
(467 |
) |
|
Interest
income |
410 |
|
|
|
44 |
|
|
|
1,230 |
|
|
|
563 |
|
|
Loss on derivatives |
— |
|
|
|
(272 |
) |
|
|
— |
|
|
|
(1,009 |
) |
|
Foreign currency (loss)/gain |
(213 |
) |
|
|
57 |
|
|
|
(295 |
) |
|
|
491 |
|
|
Amortization and write-off of deferred finance charges |
(358 |
) |
|
|
(429 |
) |
|
|
(1,035 |
) |
|
|
(1,324 |
) |
|
Net income/(loss) |
5,247 |
|
|
|
3,311 |
|
|
|
12,484 |
|
|
|
(20,519 |
) |
|
Less Preferred dividend |
2,875 |
|
|
|
2,876 |
|
|
|
8,620 |
|
|
|
8,622 |
|
|
Less Mezzanine equity measurement |
— |
|
|
|
360 |
|
|
|
304 |
|
|
|
495 |
|
|
Net income/(loss) available to common
shareholders |
2,372 |
|
|
|
75 |
|
|
|
3,560 |
|
|
|
(29,636 |
) |
|
Earnings/(loss) per share basic and
diluted |
0.02 |
|
|
|
0.00 |
|
0.04 |
|
|
|
(0.29 |
) |
|
Weighted average number of shares |
101,279,564 |
|
|
|
102,160,308 |
|
|
|
101,367,866 |
|
|
|
102,762,932 |
|
|
|
|
Nine-Months Period Ended September
30, |
|
|
2019 |
|
2020 |
(In millions of
U.S. Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating
activities |
|
39.9 |
|
|
|
34.2 |
|
|
Net cash provided by/(used in)
investing activities |
|
1.4 |
|
|
|
(35.5 |
) |
|
Net cash used in financing
activities |
|
(23.6 |
) |
|
|
(8.1 |
) |
|
Net increase/(decrease) in
cash and cash equivalents |
|
17.7 |
|
|
|
(9.4 |
) |
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
|
December 31, 2019 |
|
September 30, 2020 |
ASSETS |
|
|
|
|
Cash, time deposits, and restricted cash |
|
106,378 |
|
|
89,535 |
|
Other current assets |
|
29,611 |
|
|
22,238 |
|
Vessels, net |
|
944,706 |
|
|
962,686 |
|
Advances for vessels |
|
19,294 |
|
|
609 |
|
Restricted cash non-current |
|
13,701 |
|
|
17,155 |
|
Other non-current assets |
|
953 |
|
|
681 |
|
Total assets |
|
1,114,643 |
|
|
1,092,904 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current portion of long-term debt |
|
64,054 |
|
|
68,291 |
|
Other current liabilities |
|
22,730 |
|
|
20,865 |
|
Long-term debt, net of current portion |
|
536,995 |
|
|
540,562 |
|
Other non-current liabilities |
|
922 |
|
|
5,226 |
|
Mezzanine equity |
|
17,200 |
|
|
17,567 |
|
Shareholders’ equity |
|
472,742 |
|
|
440,393 |
|
Total liabilities and equity |
|
1,114,643 |
|
|
1,092,904 |
|
TABLE 4 RECONCILIATION
OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS/(LOSS) PER SHARE
|
|
Three-Months Period Ended September
30, |
|
Nine-Months Period Ended September
30, |
(In thousands of U.S. Dollars
except for share and per share data) |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
Net Income/(Loss) -
Adjusted Net Income/(Loss) |
|
|
|
|
|
|
|
|
Net
Income/(Loss) |
|
5,247 |
|
|
3,311 |
|
|
|
12,484 |
|
|
(20,519 |
) |
|
Plus Loss on derivatives |
|
— |
|
|
272 |
|
|
|
— |
|
|
1,009 |
|
|
Plus Foreign currency
loss/(gain) |
|
213 |
|
|
(57 |
) |
|
|
295 |
|
|
(491 |
) |
|
Plus Early Redelivery
cost |
|
63 |
|
|
— |
|
|
|
63 |
|
|
— |
|
|
Plus Loss on inventory
valuation |
|
348 |
|
|
— |
|
|
|
348 |
|
|
— |
|
|
Adjusted net
income/(loss) |
|
5,871 |
|
|
3,526 |
|
|
|
13,190 |
|
|
(20,001 |
) |
|
EBITDA - Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
5,247 |
|
|
3,311 |
|
|
|
12,484 |
|
|
(20,519 |
) |
|
Plus Net Interest expense |
|
6,224 |
|
|
4,564 |
|
|
|
19,411 |
|
|
16,337 |
|
|
Plus Depreciation |
|
12,669 |
|
|
13,829 |
|
|
|
37,375 |
|
|
40,395 |
|
|
Plus Amortization and write-off
of deferred finance charges |
|
358 |
|
|
429 |
|
|
|
1,035 |
|
|
1,324 |
|
|
EBITDA |
|
24,498 |
|
|
22,133 |
|
|
|
70,305 |
|
|
37,537 |
|
|
Plus Early Redelivery
cost |
|
63 |
|
|
— |
|
|
|
63 |
|
|
— |
|
|
Plus Loss on inventory
valuation |
|
348 |
|
|
— |
|
|
|
348 |
|
|
— |
|
|
Plus Loss on derivatives |
|
— |
|
|
272 |
|
|
|
— |
|
|
1,009 |
|
|
Plus Foreign currency
loss/(gain) |
|
213 |
|
|
(57 |
) |
|
|
295 |
|
|
(491 |
) |
|
ADJUSTED
EBITDA |
|
25,122 |
|
|
22,348 |
|
|
|
71,011 |
|
|
38,055 |
|
|
Earnings per
share |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
5,247 |
|
|
3,311 |
|
|
|
12,484 |
|
|
(20,519 |
) |
|
Less Preferred dividend |
|
2,875 |
|
|
2,876 |
|
|
|
8,620 |
|
|
8,622 |
|
|
Less Mezzanine equity measurement
adjustment |
|
— |
|
|
360 |
|
|
|
304 |
|
|
495 |
|
|
Net income/(loss)
available to common shareholders |
|
2,372 |
|
|
75 |
|
|
|
3,560 |
|
|
(29,636 |
) |
|
Weighted average number of
shares |
|
101,279,564 |
|
|
102,160,308 |
|
|
|
101,367,866 |
|
|
102,762,932 |
|
|
Earnings/(Loss) per share |
|
0.02 |
|
|
0.00 |
|
0.04 |
|
|
(0.29 |
) |
|
Adjusted
Earnings/(Loss) per share |
|
|
|
|
|
|
|
|
Adjusted Net
Income/(Loss) |
|
5,871 |
|
|
3,526 |
|
|
|
13,190 |
|
|
(20,001 |
) |
|
Less Preferred dividend |
|
2,875 |
|
|
2,876 |
|
|
|
8,620 |
|
|
8,622 |
|
|
Less Mezzanine measurement
adjustment |
|
— |
|
|
360 |
|
|
|
304 |
|
|
495 |
|
|
Adjusted Net income/(loss)
available to common shareholders |
|
2,996 |
|
|
290 |
|
|
|
4,266 |
|
|
(29,118 |
) |
|
Weighted average number of
shares |
|
101,279,564 |
|
|
102,160,308 |
|
|
|
101,367,866 |
|
|
102,762,932 |
|
|
Adjusted
Earnings/(loss) per share |
|
0.03 |
|
|
0.00 |
|
0.04 |
|
|
(0.28 |
) |
|
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 inventory
valuation, gain/(loss) on derivatives, early redelivery cost and
gain/(loss) on foreign currency.- Adjusted Net income/(loss)
represents Net income/(loss) before loss on inventory valuation,
gain/(loss) on derivatives, early redelivery cost and gain/(loss)
on foreign currency.- Adjusted earnings/(loss) per share represents
Adjusted Net income/(loss) less preferred dividend 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 generally further eliminates the
effects from loss on sale of assets, gain/(loss) on derivatives,
early redelivery cost 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. Furthermore,
the calculation of Adjusted Net income/(loss) generally eliminates
the effects of loss on sale of assets, gain/(loss) on derivatives,
early redelivery cost 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. EBITDA, Adjusted
EBITDA, Adjusted Net income/(loss) and Adjusted earnings per share,
should not be considered as substitutes for net income and other
operations data prepared in accordance with US GAAP or as a measure
of profitability. 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 AND AVERAGE DAILY
INDICATORS
|
Three-Months Period Ended September
30, |
|
Nine-Months Period Ended September
30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at period’s
end |
41 |
|
|
|
42 |
|
|
|
41 |
|
|
|
42 |
|
|
Average age of fleet (in
years) |
9.08 |
|
|
|
9.86 |
|
|
|
9.08 |
|
|
|
9.86 |
|
|
Ownership days (1) |
3,772 |
|
|
|
3,864 |
|
|
|
11,193 |
|
|
|
11,402 |
|
|
Available days (2) |
3,541 |
|
|
|
3,726 |
|
|
|
10,857 |
|
|
|
10,972 |
|
|
Average number of vessels in
the period (3) |
41.00 |
|
|
|
42.00 |
|
|
|
41.00 |
|
|
|
41.77 |
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
|
|
Time charter equivalent rate
(4) |
$ |
13,311 |
|
|
|
$ |
12,575 |
|
|
|
$ |
12,513 |
|
|
|
$ |
9,940 |
|
|
Daily vessel operating
expenses (5) |
$ |
4,448 |
|
|
|
$ |
4,896 |
|
|
|
$ |
4,406 |
|
|
|
$ |
4,799 |
|
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (6) |
$ |
4,053 |
|
|
|
$ |
4,459 |
|
|
|
$ |
4,162 |
|
|
|
$ |
4,318 |
|
|
Daily general and
administrative expenses (7) |
$ |
1,363 |
|
|
|
$ |
1,418 |
|
|
|
$ |
1,368 |
|
|
|
$ |
1,388 |
|
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
|
|
|
Revenues |
$ |
52,927 |
|
|
|
$ |
53,992 |
|
|
|
$ |
150,971 |
|
|
|
$ |
151,632 |
|
|
Less commissions |
(2,213 |
) |
|
|
(2,059 |
) |
|
|
(6,457 |
) |
|
|
(5,703 |
) |
|
Less voyage expenses |
(3,581 |
) |
|
|
(5,080 |
) |
|
|
(8,664 |
) |
|
|
(36,866 |
) |
|
Time charter equivalent
revenue |
$ |
47,133 |
|
|
|
$ |
46,853 |
|
|
|
$ |
135,850 |
|
|
|
$ |
109,063 |
|
|
Available days (2) |
3,541 |
|
|
|
3,726 |
|
|
|
10,857 |
|
|
|
10,972 |
|
|
Time charter equivalent rate
(4) |
$ |
13,311 |
|
|
|
$ |
12,575 |
|
|
|
$ |
12,513 |
|
|
|
$ |
9,940 |
|
|
_____________
(1) Ownership days represents the aggregate number
of days in a period during which each vessel in our fleet has been
owned by us. (2) Available days represents 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
November 6, 2020
Vessel Name |
|
Dwt |
|
YearBuilt 1 |
|
Country of Construction |
|
Charter Type |
|
CharterRate 2 |
|
Commissions 3 |
|
Charter Period 4 |
CURRENT FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maria |
|
76,000 |
|
2003 |
|
Japan |
|
Period |
|
$ |
9,349 |
|
|
5.00 |
% |
|
February 2020 |
December 2020 |
Koulitsa |
|
76,900 |
|
2003 |
|
Japan |
|
Period |
|
$ |
11,000 |
|
|
5.00 |
% |
|
November 2020 |
November 2020 |
Paraskevi |
|
74,300 |
|
2003 |
|
Japan |
|
Spot |
|
$ |
10,734 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Vassos |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
$ |
11,000 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
$ |
7,925 |
|
|
5.00 |
% |
|
March 2020 |
November 2020 |
Maritsa |
|
76,000 |
|
2005 |
|
Japan |
|
Period |
|
$ |
7,445 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Spot |
|
$ |
12,204 |
|
|
5.00 |
% |
|
September 2020 |
December 2020 |
Zoe
10 |
|
75,000 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
11,650 |
|
|
5.00 |
% |
|
September 2020 |
April 2021 |
Kypros Land
10 , 15 |
|
77,100 |
|
2014 |
|
Japan |
|
Period |
|
$ |
13,800 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
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 * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kypros
Bravery 13 |
|
78,000 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros Sky 8
, 13 |
|
77,100 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros
Loyalty 13 |
|
78,000 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kypros
Spirit 8, 15 |
|
78,000 |
|
2016 |
|
Japan |
|
Period |
|
$ |
13,800 |
|
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kamsarmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pedhoulas
Merchant |
|
82,300 |
|
2006 |
|
Japan |
|
Spot |
|
$ |
12,250 |
|
|
5.00 |
% |
|
September 2020 |
November 2020 |
Pedhoulas
Trader |
|
82,300 |
|
2006 |
|
Japan |
|
Period |
|
$ |
10,859 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Pedhoulas
Leader |
|
82,300 |
|
2007 |
|
Japan |
|
Spot |
|
$ |
12,200 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Pedhoulas
Commander |
|
83,700 |
|
2008 |
|
Japan |
|
Period |
|
$ |
9,950 |
|
|
5.00 |
% |
|
June 2019 |
May 2021 |
Pedhoulas
Builder |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
11,550 |
|
|
5.00 |
% |
|
October 2020 |
December 2020 |
Pedhoulas
Fighter |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
10,196 |
|
|
5.00 |
% |
|
September 2020 |
November 2020 |
Pedhoulas
Farmer 5 |
|
81,600 |
|
2012 |
|
China |
|
Spot
11 |
|
$ |
13,200 |
|
|
5.00 |
% |
|
October 2020 |
December 2020 |
Pedhoulas Cherry |
|
82,000 |
|
2015 |
|
China |
|
Spot 12 |
|
$ |
10,224 |
|
|
5.00 |
% |
|
September 2020 |
November 2020 |
Pedhoulas Rose 5 |
|
82,000 |
|
2017 |
|
China |
|
Spot12 |
|
$ |
15,000 |
|
|
5.00 |
% |
|
August 2020 |
December 2020 |
Pedhoulas
Cedrus |
|
82,000 |
|
2017 |
|
China |
|
Spot |
|
$ |
13,000 |
|
|
3.75 |
% |
|
August 2020 |
May 2021 |
|
|
|
|
Period |
|
$ |
13,000 |
|
|
3.75 |
% |
|
May 2021 |
May 2021 |
Post-Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marina |
|
87,000 |
|
2006 |
|
Japan |
|
Spot12 |
|
$ |
11,750 |
|
|
5.00 |
% |
|
November 2020 |
December 2020 |
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Spot12 |
|
$ |
11,620 |
|
|
5.00 |
% |
|
September 2020 |
November 2020 |
Sophia |
|
87,000 |
|
2007 |
|
Japan |
|
|
|
|
|
|
|
|
|
Eleni |
|
87,000 |
|
2008 |
|
Japan |
|
Spot12 |
|
$ |
10,169 |
|
|
5.00 |
% |
|
October 2020 |
December 2020 |
Martine |
|
87,000 |
|
2009 |
|
Japan |
|
Spot12 |
|
$ |
11,900 |
|
|
5.00 |
% |
|
November 2020 |
December 2020 |
Andreas K |
|
92,000 |
|
2009 |
|
South Korea |
|
|
|
|
|
|
|
|
|
Panayiota K 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 12 |
|
$ |
5,613 |
|
|
5.00 |
% |
|
October 2020 |
November 2020 |
Agios Spyridonas 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 11 |
|
$ |
12,100 |
|
|
5.00 |
% |
|
November 2020 |
December 2020 |
Venus Heritage 10 |
|
95,800 |
|
2010 |
|
Japan |
|
Spot 12 |
|
$ |
21,442 |
|
|
5.00 |
% |
|
November 2020 |
January 2021 |
Venus History 10 |
|
95,800 |
|
2011 |
|
Japan |
|
Spot12 |
|
$ |
11,500 |
|
|
5.00 |
% |
|
November 2020 |
December 2020 |
Venus Horizon |
|
95,800 |
|
2012 |
|
Japan |
|
Spot12 |
|
$ |
8,850 |
|
|
5.00 |
% |
|
June 2020 |
November 2020 |
Troodos Sun 11 |
|
85,000 |
|
2016 |
|
Japan |
|
Spot18 |
|
$ |
2,275 |
|
|
5.00 |
% |
|
October 2020 |
December 2020 |
Troodos Air |
|
85,000 |
|
2016 |
|
Japan |
|
Spot12 |
|
$ |
10,500 |
|
|
5.00 |
% |
|
November 2020 |
December 2020 |
Troodos Oak 14 |
|
85,000 |
|
2020 |
|
Japan |
|
Spot |
|
109% BPI-82 5TC |
|
5.00 |
% |
|
June 2020 |
May 2021 |
Capesize |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount Troodos 16 |
|
181,400 |
|
2009 |
|
Japan |
|
Period |
|
BCI*103.5%+80% SCR BNFT |
|
5.00 |
% |
|
April 2020 |
June 2021 |
Kanaris |
|
178,100 |
|
2010 |
|
China |
|
Period 6 |
|
$ |
25,928 |
|
|
5.00 |
% |
|
September 2011 |
September 2031 |
Pelopidas |
|
176,000 |
|
2011 |
|
China |
|
Period |
|
$ |
38,000 |
|
|
5.00 |
% |
|
January 2012 |
January 2022 |
Lake Despina |
|
181,400 |
|
2014 |
|
Japan |
|
Period 7 |
|
$ |
24,810 |
|
|
5.00 |
% |
|
January 2014 |
January 2024 |
TOTAL |
|
3,862,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Orderbook |
TBN17 |
|
82,000 |
|
1H 2022 |
|
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 dailycharter 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 thatprovides 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 apro 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 November 6, 2020, the
scheduled start dates. Actual start dates and redelivery dates
maydiffer 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 and MV Pedhoulas Rose were sold and leased
back, in 2015 and 2017, respectively, on a bareboat charter basis
for a period of 10 years, with a purchase obligation at the end of
thebareboat 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.(6) 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 $634 over the remainingtenor of
the time charter party.(7) A period time charter of 10 years at a
gross daily charter rate of $23,100 for the first two and a half
years and of $24,810 for the remaining period. In January 2017, the
period time charter was amendedto reflect substitution of the
initial charterer with its subsidiary guaranteed by the initial
charterer and changes in payment terms; all other period charter
terms remained unchanged. The charter agreementgrants the charterer
the option to purchase the vessel at any time beginning at the end
of the seventh year of the period time charter period, at a price
of $39.0 million less 1.00% commission, decreasingthereafter on a
pro-rated basis by $1.5 million per year. The Company holds a right
of first refusal to buy back the vessel in the event that the
charterer exercises its option to purchase the vessel
andsubsequently offers to sell such vessel to a third party. The
charter agreement also grants the charterer an option to extend the
period time charter for an additional twelve months at a time at a
gross dailycharter rate of $26,330, less 1.25% total commissions,
which option may be exercised by the charterer a maximum of two
times.(8) 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
commencingthree 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
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 threeyears
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 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 ofseven 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.(11) 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 dailygross charter rate
presented.(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 not included on the dailygross charter rate presented.(13) A
period time charter of 5 years at a daily gross charter rate of
$11,750 for the first two years and a gross daily charter rate
linked to the BPI-82 5TC times 97% minus $2,150, for the remaining
period.(14) A period time charter of 11 to 13 months at a gross
daily charter rate linked to the BPI-82 5TC times 109%.(15) A
period time charter of 5 years at a daily gross charter rate of
$13,800 for the first two years and a gross daily charter rate
linked to the BPI-82 5TC times 97% minus $2,150, for the remaining
period.(16) A period time charter at a gross daily charter rate
linked to the Baltic Exchange Capesize Index (“BCI'') times 103.5%
plus 80% of scrubber benefit. (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) A spot
time charter which refers to a trip back to Atlantic.
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
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25
887200E-Mail:directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail:safebulkers@capitallink.com
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