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 twelve months
period ended December 31, 2020.
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Financial
highlights |
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In million U.S. Dollars except per share data |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
TwelveMonths2020 |
TwelveMonths2019 |
Net Revenues |
52.2 |
|
51.9 |
|
48.3 |
|
45.7 |
|
53.2 |
|
198.2 |
|
197.8 |
|
Net income/(loss) |
7.6 |
|
3.3 |
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(13.9 |
) |
(9.9 |
) |
3.6 |
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(12.9 |
) |
16.0 |
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Adjusted Net income/(loss)1 |
7.7 |
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3.5 |
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(13.3 |
) |
(10.2 |
) |
3.5 |
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(12.3 |
) |
16.7 |
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EBITDA2 |
26.2 |
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22.1 |
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5.7 |
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9.7 |
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23.1 |
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63.7 |
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93.5 |
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Adjusted EBITDA 2 |
26.3 |
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22.3 |
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6.3 |
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9.4 |
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23.1 |
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64.3 |
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94.1 |
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Earnings/(loss) per share basic and diluted3 |
0.04 |
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0.00 |
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(0.16 |
) |
(0.12 |
) |
0.01 |
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(0.25 |
) |
0.04 |
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Adjusted earnings/(loss) per share basic and diluted 3 |
0.04 |
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0.00 |
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(0.16 |
) |
(0.13 |
) |
0.01 |
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(0.24 |
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0.05 |
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Average Daily
results in U.S. Dollars |
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Time charter equivalent rate4 |
12,319 |
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12,575 |
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8,094 |
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9,089 |
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13,707 |
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10,559 |
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12,805 |
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Daily vessel operating expenses5 |
3,978 |
|
4,896 |
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4,729 |
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4,771 |
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5,103 |
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4,591 |
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4,582 |
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Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses6 |
3,955 |
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4,459 |
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4,207 |
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4,285 |
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4,540 |
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4,226 |
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4,257 |
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Daily general and administrative expenses7 |
1,469 |
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1,418 |
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1,374 |
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1,371 |
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1,414 |
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1,408 |
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1,379 |
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In million U.S. Dollars |
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Total Cash8 |
124.0 |
|
106.7 |
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118.8 |
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109.3 |
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120.1 |
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Liquidity9 |
171.2 |
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109.7 |
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119.8 |
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145.7 |
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178.0 |
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Total Debt10 |
607.7 |
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608.9 |
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625.4 |
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605.2 |
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601.0 |
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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 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 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: ''Having a consistent strategy for fleet renewal and
environmental upgrading, hands on operations and strong balance
sheet, we believe we are well positioned to take advantage of a
strengthening charter market.''
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 any potential third wave of the pandemic and
any new potential restrictions imposed as a result of the virus,
new information which may emerge concerning the severity of the
virus and/or actions taken to contain or treat its impact,
including distribution and effectiveness of the vaccines, as well
as political implications that could further impact world trade and
global growth.
The COVID-19 pandemic had significant impact on
the shipping industry and our seafarers as port lockdowns were
imposed globally in 2020 and certain ports that have since reopened
have subsequently closed again for crew changes. 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 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 for up to aggregate gross offering
proceeds of $23.5 million through an “at-the-market” equity
offering program (the “ATM Program”). As of February 12, 2021,
the Company had not offered to sell and has not sold any Shares
under the ATM Program.
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.
In December 2020, the Company agreed the early
termination of an existing charter of the Capesize-class vessel MV
Lake Despina, which was contractually due to expire in January
2024. In exchange for the early redelivery of the vessel, the
charterer paid the Company cash compensation of about $8.1 million,
50% of which was received in December 2020, and the balance in
January 2021. The vessel was redelivered in February 2021 and was
subsequently deployed under a new period time charter with a
different charterer for a duration of 12 to 14 months at a gross
daily charter rate linked to the 5 TC Baltic Exchange Capesize
Index ("BCI-180 5TC'') times 119%.
During the fourth quarter of 2020, we operated
42.00 vessels on average earning a TCE11 of $12,319 compared to
41.00 vessels earning a TCE of $13,707 during the same period in
2019. Our contracted employment profile is presented below in Table
1.
Table 1: Contracted employment profile of
fleet ownership days as of February 12, 2021
2021 (remaining) |
43 |
% |
2021 (full year) |
49 |
% |
2022 |
18 |
% |
2023 |
16 |
% |
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 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
During the fourth quarter of 2020, the Company,
as part of its plan to implement a gradual fleet renewal with
modern, energy efficient vessels, entered into agreements for the
acquisition of two Japanese dry-bulk newbuild vessels, one
Kamsarmax class, 82,000 dwt and of one Post-Panamax class, 87,000
dwt, with scheduled deliveries within the first half of 2022 and
the third quarter of 2022, respectively. The vessels are designed
to meet the Phase 3 requirements of Energy Efficiency Design Index,
(''EEDI Phase 3'') related to the mandatory reduction of green
house gas emissions, 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).
Concurrently with the ordering of the newbuild
vessels, the Company has concluded the financing arrangements: i)
for the Kamsarmax newbuild, a sale and lease back through a
ten-year bareboat charter agreement for 90% financing with a
purchase obligation at a predetermined price on termination and
purchase options after the third year in the Company's favor, and,
ii) for the Post-Panamax newbuild, a new term loan facility of up
to 60% post-delivery financing and an increase of the existing
revolving credit facility from $20 million to $30 million, the
maturity of which was extended from 2022, by up to 2
years.
Vessel sales and second hand
acquisition
In the framework of fleet renewal the Company
has entered into memoranda of agreements for the sale of two of its
older vessels and for the acquisition of a 2011 second-hand
Panamax.
____________________________________________11
Time Charter Equivalent (“TCE”) rate represents charter revenues
net of commissions and voyage expenses divided by the number of
available days.
During the last quarter of 2020, the Company
made available for sale, a 2003-built, Panamax class, dry-bulk
vessel, the Paraskevi. In January 2021, the Company signed an
agreement for its sale at a price of $7.3 million before
commissions with expected delivery date in March 2021. As of
February 12, 2021, the respective outstanding loan balance of about
$4.0 million, net of deferred finance charges, which was secured by
the vessel, has been repaid. Upon consummation of the sale
transaction, we expect that our debt will be decreased by $4.0
million and our liquidity will be increased by $3.2 million and
expect to incur a non-cash loss on sale of asset in the approximate
amount of $0.3 million.
During January 2021, the Company made available
for sale a 2004-built, Panamax class, dry-bulk vessel, the Vassos,
and signed an agreement for its sale at a price of $8.7 million
before commissions. The respective outstanding loan balance of
about $6.0 million, net of deferred finance charges, which is
secured by the vessel, will be repaid prior to the expected
conclusion of the sale in April 2021. Upon consummation of the sale
transaction, we expect that our debt will be decreased by $6.0
million and our liquidity will be increased by $2.5 million and
expect to incur a non-cash loss on sale of asset in the approximate
amount of $1.0 million.
Upon consummation of both sale transactions, we
expect that our debt will be decreased by $10.0 million in the
aggregate and our net liquidity will be increased by $5.7 million
in the aggregate.
In February 2021, the Company entered into an
agreement for the acquisition of a Panamax class, 2011
Japanese-built, dry-bulk, 75,000 dwt at a price of $14.0 million
before commissions, which will be funded from available cash. The
vessel, which is sister-ship with two of the Company's existing
vessels, is scheduled to be delivered within February 2021 and has
been chartered for 11 to 14 months at a gross daily charter rate of
$13,800.
Mezzanine equity redemption and
financing
In February 2021, a Company's subsidiary issued
a notice of redemption for all issued and outstanding shares of
series A cumulative redeemable perpetual preferred stock, recorded
as mezzanine equity (the "Mezzanine Equity") with a redemption
price of approximately $18.1 million, including the accrued
dividend. The Mezzanine Equity was issued in 2018 to a third party
investor in relation to the financing of the then newbuild vessel
Pedhoulas Cedrus. The redemption is expected to be completed within
February. In addition, the Company entered into a sale and lease
back of Pedhoulas Cedrus through a bareboat charter agreement with
a purchase obligation at a predetermined price on termination and
purchase options after the third year in the Company's favor. This
agreement will be consummated concurrently with the share
redemption. The net increase of our liquidity from this refinancing
is expected to be $6.4 million.
Liquidity
As of December 31, 2020, we had liquidity of
$171.2 million, which included cash and cash equivalents, time
deposits, restricted cash and funds available under the sale and
lease back agreements, new term loan agreement and the revolving
credit facility. Our aggregate remaining capital expenditure
requirements for the acquisition of the two newbuilds as of
December 31, 2020, amounted to $52.0 million, of which $0.6 million
is payable in 2021 and $51.4 million in 2022.
As of February 12, 2021, we had liquidity
of $184.3 million, which included cash and cash equivalents, time
deposits, restricted cash and funds available under the sale and
lease back agreements, new term loan agreement and the revolving
credit facility. Our aggregate remaining capital expenditure
requirements for the acquisition of the two newbuilds and the
second hand vessel, which will be debt-free, were $64.0 million, of
which $12.6 million is payable in 2021 and $51.4 million payable in
2022.
Debt Profile
As of December 31, 2020, our consolidated debt
before deferred financing costs was $616.2 million. The loan
repayment schedule of the Company as of December 31, 2020, is
presented below in Table 2.
Table 2: Loan repayment
Schedule(in USD millions)
Ending December 31, |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
December 31, 2020 |
81.3 |
118.7 |
119.7 |
171.9 |
66.8 |
16.2 |
41.6 |
616.2 |
Derivatives
During the fourth quarter of 2020, the Company
entered into bunker fuel contracts for 36,000 tons for calendar
2021 and 24,000 tons for calendar 2022 to sell the spread
differential between the price per ton of the 0.5% and 3.5% sulfur
content fuel, with the objective of reducing the risk arising from
a lower spread differential, which is related to the additional
revenue from the operation of scrubbers in scrubber fitted vessels.
In February 2021, the Company entered into bunker fuel contracts to
sell the spread differential for another 12,000 tons for calendar
2022.
During 2020, the Company entered into forward
freight agreements on the Panamax index for 80 days for Q1 2021 and
60 days for Q2 2021, with the objective of reducing the risk
arising from the volatility in the charter rates.
During 2020, the Company entered into interest
rate derivative contracts with the objective to reduce exposure
from the fluctuation of interest rates. As of December 31, 2020,
the aggregate notional amount of outstanding interest rate
derivative contracts was $244.3 million or about 40% of the
aggregate debt outstanding at that date.
Environmental Social Responsibility -
Environmental investments
In the context of our Environmental Social
Responsibility policies, the Company has completed the installation
of 20 scrubbers and continues the retrofit of vessels with ballast
water treatment systems. As of December 31, 2020, the Company has
30 vessels equipped with ballast water treatment systems. The
aggregate cost paid as of the year end for our environmental
investments was $67.2 million. 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.
As of December 31, 2020, the scheduled number
and estimated down-time days for the subsequent two quarters, for
dry-dockings and environmental investments is presented in Table
3.
Table 3: Scheduled number and estimated
down-time for dry-dockings and environmental
investments.
|
Q1 2021 |
Q2 2021 |
Number of vessels |
1 |
3 |
Total down time in days |
55 |
80 |
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the fourth quarter of 2020. The Company
had 102,197,670 shares of common stock issued and outstanding as of
February 12, 2021.
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 October 30, 2020 to January 29, 2021,
which was paid on February 1, 2021 to the respective shareholders
of record as of January 22, 2021, was $2.75 million.
A Company’s subsidiary declares a cash dividend
on a quarterly basis on each of its Series A shares to the
respective shareholders of such shares, 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 October 1, 2020 to December 31, 2020, which was
paid on January 4, 2021, was $0.1 million. As previously mentioned,
such Series A shares will be redeemed on February 25, 2021,
together with dividend accrued up to such date, pursuant to a
redemption notice issued in February 2021.
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 Tuesday, February 16, 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.
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 February 24, 2021 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 Fourth Quarter
2020 Results
Statements of Operations
During the fourth quarter of 2020, we operated
in a relatively weaker charter market environment with lower
operating and interest expenses compared to the same period in
2019, while our revenues were partly supported by the additional
earnings from scrubber fitted vessels, the operation of one
additional newbuild vessel from April 2020 and reduced voyage
expenses. The net effect is reflected in our reduced TCE of $12,319
for the fourth quarter of 2020, compared to $13,707 during the same
period in 2019. The net income for the fourth quarter of 2020,
amounted to $7.6 million compared to net income of $3.6 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 decreased by 2% to
$52.2 million for the fourth quarter of 2020, compared to $53.2
million for the same period in 2019, mainly due to the reduced TCE
rate because of a weaker market, partially offset by the additional
revenues earned by our scrubber fitted vessels and the additional
vessel delivered in 2020.
Voyage expenses: Voyage expenses decreased to
$4.7 million for the fourth quarter of 2020 compared to $5.1
million for the same period in 2019, as a net effect of decreased
vessel repositioning expenses and lower loss on bunkers sales and
the inclusion in 2020 of 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 decreased by 20% to $15.4 million for the fourth quarter
of 2020 compared to $19.2 million for the same period in 2019,
which is associated with reduced dry-dockings and provision of
technical services and increased crew repatriation expenses due to
the COVID-19 pandemic in 2020. In more detail the changes were: i)
spares, stores and provisions of $2.8 million for the fourth
quarter of 2020, compared to $4.4 million for the same period in
2019, ii) repairs and maintenance of $0.8 million for the fourth
quarter of 2020, compared to $1.5 million for the same period in
2019, and iii) dry docking expense of $0.1 million related to one
partially completed dry docking during the fourth quarter of 2020,
compared to $2.1 million related to five fully and one partially
completed dry dockings for the same period of 2019, partly offset
by the increase in crew wages, repatriation and related costs of
$9.1 million for the fourth quarter of 2020 compared to $8.3
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 $0.1 million and $2.1 million for the fourth quarter of
2020 and 2019, respectively, vessel operating expenses decreased to
$15.3 million for the fourth quarter of 2020 compared to $17.1
million for the same period in 2019, despite the increased crew
repatriation 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 others do not
include dry-docking expenses within vessel operating expenses costs
and present these separately.
Depreciation: Depreciation increased by 8% to
$13.9 million for the fourth quarter of 2020, compared to $12.9
million for the same period in 2019, as a result of the
commencement of depreciation of environmental investments that were
completed following the third quarter of 2019 and depreciation of
the newbuild delivered during the second quarter of 2020.
Interest expense: Interest expense decreased to
$4.3 million in the fourth quarter of 2020 compared to $6.2 million
for the same period in 2019, as a result of the decreased USD
LIBOR12 affecting the weighted average interest rate of our loans
and credit facilities.
Daily vessel operating expenses13: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, decreased by
22% to $3,978 for the fourth quarter of 2020 compared to $5,103 for
the same period in 2019. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses decreased by 13% to $3,955
for the fourth quarter of 2020 compared to $4,540 for the same
period in 2019.
Daily general and administrative expenses14:
Daily general and administrative expenses, which include management
fees payable to our Managers14 and daily company administrations
expenses, increased by 4% to $1,469 for the fourth quarter of 2020,
compared to $1,414 for the same period in 2019, as a result of the
increase of the management fees associated to the strengthening of
the exchange rate of Euro versus USD, partly offset by the lower
company administration expenses.
Balance sheet
Assets held for sale/Liabilities directly
associated with asset held for sale: As of December 31, 2020, we
have classified the assets and liability directly associated with
the vessel Paraskevi as assets held for sale and presented them on
the balance sheet separately under current assets in the amount of
$8.1 million, which represents the net book value of the vessel and
other assets on board the vessel including its inventories, and
liabilities directly associated with assets held for sale of $4.0
million, which represents the outstanding balance of the loan
facility net of deferred finance charges.
____________________________________________12
London interbank offered rate.13 See Table 5.14 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 December
31, |
|
Twelve-Months Period Ended December
31, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
REVENUES: |
|
|
|
|
|
|
|
Revenues |
55,711 |
|
|
54,403 |
|
|
206,682 |
|
|
206,035 |
|
Commissions |
(2,465 |
) |
|
(2,174 |
) |
|
(8,921 |
) |
|
(7,877 |
) |
Net revenues |
53,246 |
|
|
52,229 |
|
|
197,761 |
|
|
198,158 |
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
(5,051 |
) |
|
(4,716 |
) |
|
(13,715 |
) |
|
(41,582 |
) |
Vessel operating expenses |
(19,249 |
) |
|
(15,370 |
) |
|
(68,569 |
) |
|
(70,086 |
) |
Depreciation |
(12,935 |
) |
|
(13,874 |
) |
|
(50,310 |
) |
|
(54,269 |
) |
General and administrative expenses |
(5,332 |
) |
|
(5,677 |
) |
|
(20,639 |
) |
|
(21,502 |
) |
Loss from inventory valuation |
(66 |
) |
|
(241 |
) |
|
(414 |
) |
|
(241 |
) |
Early redelivery cost |
— |
|
|
— |
|
|
(63 |
) |
|
— |
|
Operating income |
10,613 |
|
|
12,351 |
|
|
44,051 |
|
|
10,478 |
|
OTHER (EXPENSE) /
INCOME: |
|
|
|
|
|
|
|
Interest expense |
(6,174 |
) |
|
(4,333 |
) |
|
(26,815 |
) |
|
(21,233 |
) |
Other finance cost |
(502 |
) |
|
(174 |
) |
|
(714 |
) |
|
(641 |
) |
Interest income |
328 |
|
|
41 |
|
|
1,558 |
|
|
604 |
|
Loss on derivatives |
(121 |
) |
|
(294 |
) |
|
(121 |
) |
|
(1,303 |
) |
Foreign currency gain/(loss) |
219 |
|
|
425 |
|
|
(76 |
) |
|
916 |
|
Amortization and write-off of deferred finance charges |
(809 |
) |
|
(402 |
) |
|
(1,845 |
) |
|
(1,726 |
) |
Net income/(loss) |
3,554 |
|
|
7,614 |
|
|
16,038 |
|
|
(12,905 |
) |
Less Preferred dividend |
2,878 |
|
|
2,878 |
|
|
11,498 |
|
|
11,500 |
|
Less Mezzanine equity measurement |
(104 |
) |
|
413 |
|
|
199 |
|
|
908 |
|
Net income/(loss) available to common
shareholders |
780 |
|
|
4,323 |
|
|
4,341 |
|
|
(25,313 |
) |
Earnings/(loss) per share basic and
diluted |
0.01 |
|
|
0.04 |
|
|
0.04 |
|
|
(0.25 |
) |
Weighted average number of shares |
102,631,267 |
|
|
102,186,132 |
|
|
101,686,312 |
|
|
102,617,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve-Months Period Ended December
31, |
|
|
2019 |
|
2020 |
(In millions of U.S.
Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating activities |
|
58.3 |
|
|
63.4 |
|
Net cash used in investing
activities |
|
(36.8 |
) |
|
(34.8 |
) |
Net cash provided by/(used in)
financing activities |
|
8.5 |
|
|
(9.3 |
) |
Net increase in cash, cash
equivalents and restricted cash |
|
30.0 |
|
|
19.3 |
|
|
|
|
|
|
|
|
|
SAFE BULKERS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)(In
thousands of U.S. Dollars) |
|
|
|
|
|
|
|
December 31, 2019 |
|
December 31, 2020 |
ASSETS |
|
|
|
|
Cash and cash equivalents , time deposits, and restricted cash |
|
106,378 |
|
|
105,218 |
|
Other current assets |
|
29,611 |
|
|
21,459 |
|
Assets held for sale |
|
— |
|
|
8,057 |
|
Vessels, net |
|
944,706 |
|
|
942,164 |
|
Advances for vessels |
|
19,294 |
|
|
9,126 |
|
Restricted cash non-current |
|
13,701 |
|
|
18,754 |
|
Other non-current assets |
|
953 |
|
|
851 |
|
Total assets |
|
1,114,643 |
|
|
1,105,629 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current portion of long-term debt |
|
64,054 |
|
|
75,784 |
|
Liabilities directly associated with assets held for sale |
|
— |
|
|
3,983 |
|
Other current liabilities |
|
22,730 |
|
|
24,948 |
|
Long-term debt, net of current portion |
|
536,995 |
|
|
531,883 |
|
Other non-current liabilities |
|
922 |
|
|
6,172 |
|
Mezzanine equity |
|
17,200 |
|
|
18,112 |
|
Shareholders’ equity |
|
472,742 |
|
|
444,747 |
|
Total liabilities and equity |
|
1,114,643 |
|
|
1,105,629 |
|
|
|
|
|
|
|
|
|
TABLE 4 RECONCILIATION OF ADJUSTED NET
INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS)
PER SHARE |
|
|
|
|
|
|
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period Ended December
31, |
(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) |
|
3,554 |
|
|
7,614 |
|
|
16,038 |
|
|
(12,905 |
) |
Plus Loss on derivatives |
|
121 |
|
|
294 |
|
|
121 |
|
|
1,303 |
|
Plus Foreign currency
(gain)/loss |
|
(219 |
) |
|
(425 |
) |
|
76 |
|
|
(916 |
) |
Plus Early Redelivery
cost |
|
— |
|
|
— |
|
|
63 |
|
|
— |
|
Plus Loss on inventory
valuation |
|
66 |
|
|
241 |
|
|
414 |
|
|
241 |
|
Adjusted net
income/(loss) |
|
3,522 |
|
|
7,724 |
|
|
16,712 |
|
|
(12,277 |
) |
EBITDA - Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
3,554 |
|
|
7,614 |
|
|
16,038 |
|
|
(12,905 |
) |
Plus Net Interest expense |
|
5,846 |
|
|
4,292 |
|
|
25,257 |
|
|
20,629 |
|
Plus Depreciation |
|
12,935 |
|
|
13,874 |
|
|
50,310 |
|
|
54,269 |
|
Plus Amortization and write-off
of deferred finance charges |
|
809 |
|
|
402 |
|
|
1,845 |
|
|
1,726 |
|
EBITDA |
|
23,144 |
|
|
26,182 |
|
|
93,450 |
|
|
63,719 |
|
Plus Early Redelivery
cost |
|
— |
|
|
— |
|
|
63 |
|
|
— |
|
Plus Loss on inventory
valuation |
|
66 |
|
|
241 |
|
|
414 |
|
|
241 |
|
Plus Loss on derivatives |
|
121 |
|
|
294 |
|
|
121 |
|
|
1,303 |
|
Plus Foreign currency
(gain)/loss |
|
(219 |
) |
|
(425 |
) |
|
76 |
|
|
(916 |
) |
ADJUSTED
EBITDA |
|
23,112 |
|
|
26,292 |
|
|
94,124 |
|
|
64,347 |
|
Earnings per
share |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
3,554 |
|
|
7,614 |
|
|
16,038 |
|
|
(12,905 |
) |
Less Preferred dividend |
|
2,878 |
|
|
2,878 |
|
|
11,498 |
|
|
11,500 |
|
(Plus)/Less Mezzanine equity
measurement |
|
(104 |
) |
|
413 |
|
|
199 |
|
|
908 |
|
Net income/(loss)
available to common shareholders |
|
780 |
|
|
4,323 |
|
|
4,341 |
|
|
(25,313 |
) |
Weighted average number of
shares |
|
102,631,267 |
|
|
102,186,132 |
|
|
101,686,312 |
|
|
102,617,944 |
|
Earnings/(Loss) per share |
|
0.01 |
|
|
0.04 |
|
|
0.04 |
|
|
(0.25 |
) |
Adjusted
Earnings/(Loss) per share |
|
|
|
|
|
|
|
|
Adjusted Net
Income/(Loss) |
|
3,522 |
|
|
7,724 |
|
|
16,712 |
|
|
(12,277 |
) |
Less Preferred dividend |
|
2,878 |
|
|
2,878 |
|
|
11,498 |
|
|
11,500 |
|
(Plus)/Less Mezzanine equity
measurement |
|
(104 |
) |
|
413 |
|
|
199 |
|
|
908 |
|
Adjusted Net income/(loss)
available to common shareholders |
|
748 |
|
|
4,433 |
|
|
5,015 |
|
|
(24,685 |
) |
Weighted average number of
shares |
|
102,631,267 |
|
|
102,186,132 |
|
|
101,686,312 |
|
|
102,617,944 |
|
Adjusted
Earnings/(loss) per share |
|
0.01 |
|
|
0.04 |
|
|
0.05 |
|
|
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP.- EBITDA represents Net
income 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 and Adjusted
Net Income/Loss generally further eliminates from EBITDA and Net
Income/(Loss) respectively the effects from loss on sale of assets,
gain/(loss) on derivatives, early redelivery cost 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 AND AVERAGE DAILY
INDICATORS |
|
|
|
|
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period Ended December
31, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at period’s
end |
41 |
|
|
42 |
|
|
41 |
|
|
42 |
|
Average age of fleet (in
years) |
9.33 |
|
|
10.11 |
|
|
9.33 |
|
|
10.11 |
|
Ownership days (1) |
3,772 |
|
|
3,864 |
|
|
14,965 |
|
|
15,266 |
|
Available days (2) |
3,516 |
|
|
3,857 |
|
|
14,373 |
|
|
14,829 |
|
Average number of vessels in
the period (3) |
41.00 |
|
|
42.00 |
|
|
41.00 |
|
|
41.71 |
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
|
|
Time charter equivalent rate (4) |
$ |
13,707 |
|
|
$ |
12,319 |
|
|
$ |
12,805 |
|
|
$ |
10,559 |
|
Daily vessel operating
expenses (5) |
$ |
5,103 |
|
|
$ |
3,978 |
|
|
$ |
4,582 |
|
|
$ |
4,591 |
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (6) |
$ |
4,540 |
|
|
$ |
3,955 |
|
|
$ |
4,257 |
|
|
$ |
4,226 |
|
Daily general and
administrative expenses (7) |
$ |
1,414 |
|
|
$ |
1,469 |
|
|
$ |
1,379 |
|
|
$ |
1,408 |
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
|
|
|
Revenues |
$ |
55,711 |
|
|
$ |
54,403 |
|
|
$ |
206,682 |
|
|
$ |
206,035 |
|
Less commissions |
(2,465 |
) |
|
(2,174 |
) |
|
(8,921 |
) |
|
(7,877 |
) |
Less voyage expenses |
(5,051 |
) |
|
(4,716 |
) |
|
(13,715 |
) |
|
(41,582 |
) |
Time charter equivalent
revenue |
$ |
48,195 |
|
|
$ |
47,513 |
|
|
$ |
184,046 |
|
|
$ |
156,576 |
|
Available days (2) |
3,516 |
|
|
3,857 |
|
|
14,373 |
|
|
14,829 |
|
Time charter equivalent rate
(4) |
$ |
13,707 |
|
|
$ |
12,319 |
|
|
$ |
12,805 |
|
|
$ |
10,559 |
|
____________________________________________(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 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 February 12,
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Dry-docking |
|
|
|
|
|
|
|
|
January 2021 |
February 2021 |
Koulitsa |
|
76,900 |
|
2003 |
|
Japan |
|
Spot |
|
100% BPI 74 |
|
5.00 |
% |
|
January 2021 |
March 2021 |
Paraskevi
19 |
|
74,300 |
|
2003 |
|
Japan |
|
Spot |
|
$ |
7,842 |
|
|
5.00 |
% |
|
February 2021 |
March 2021 |
Vassos
20 |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
$ |
11,750 |
|
|
5.00 |
% |
|
January 2021 |
April 2021 |
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Period |
|
97.5% BPI 74 |
|
5.00 |
% |
|
December 2020 |
June 2021 |
Maritsa |
|
76,000 |
|
2005 |
|
Japan |
|
Period |
|
97.5% BPI 74 |
|
5.00 |
% |
|
December 2020 |
October 2021 |
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Period |
|
101.5% BPI 74 |
|
5.00 |
% |
|
December 2020 |
October 2021 |
Zoe
10 |
|
75,000 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
11,650 |
|
|
5.00 |
% |
|
September 2020 |
May 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 |
|
$ |
9,951 |
|
|
5.00 |
% |
|
December 2020 |
March 2021 |
Pedhoulas
Trader |
|
82,300 |
|
2006 |
|
Japan |
|
Period |
|
98% BPI 82 |
|
5.00 |
% |
|
February 2021 |
August 2021 |
Pedhoulas
Leader |
|
82,300 |
|
2007 |
|
Japan |
|
Period |
|
98% BPI 82 |
|
5.00 |
% |
|
December 2020 |
July 2021 |
Pedhoulas
Commander |
|
83,700 |
|
2008 |
|
Japan |
|
Period |
|
$ |
9,950 |
|
|
5.00 |
% |
|
June 2020 |
June 2021 |
Pedhoulas
Builder |
|
81,600 |
|
2012 |
|
China |
|
|
|
|
|
|
|
|
|
|
|
|
Pedhoulas
Fighter |
|
81,600 |
|
2012 |
|
China |
|
Period
12 |
|
98% BPI 82 |
|
5.00 |
% |
|
December 2020 |
June 2021 |
Pedhoulas
Farmer 5 |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
21,000 |
|
|
5.00 |
% |
|
January 2021 |
March 2021 |
Pedhoulas
Cherry |
|
82,000 |
|
2015 |
|
China |
|
Spot
11 |
|
$ |
7,782 |
|
|
5.00 |
% |
|
November 2020 |
February 2021 |
|
|
|
|
Spot 11 |
|
$ |
22,250 |
|
|
5.00 |
% |
|
March 2021 |
March 2021 |
Pedhoulas Rose 5 |
|
82,000 |
|
2017 |
|
China |
|
Period
11 |
|
$ |
13,750 |
|
|
5.00 |
% |
|
December 2020 |
May 2021 |
Pedhoulas Cedrus18 |
|
82,000 |
|
2017 |
|
China |
|
Period |
|
$ |
13,000 |
|
|
3.75 |
% |
|
August 2020 |
May 2021 |
|
|
|
|
|
|
|
|
Post-Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marina |
|
87,000 |
|
2006 |
|
Japan |
|
Spot12 |
|
$ |
12,000 |
|
|
5.00 |
% |
|
February 2021 |
February 2021 |
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Spot11 |
|
$ |
12,200 |
|
|
5.00 |
% |
|
January 2021 |
February 2021 |
Sophia |
|
87,000 |
|
2007 |
|
Japan |
|
Spot11 |
|
$ |
31,750 |
|
|
5.00 |
% |
|
February 2021 |
March 2021 |
Eleni |
|
87,000 |
|
2008 |
|
Japan |
|
Spot12 |
|
$ |
14,000 |
|
|
5.00 |
% |
|
January 2021 |
February 2021 |
Martine |
|
87,000 |
|
2009 |
|
Japan |
|
Spot12 |
|
$ |
11,250 |
|
|
5.00 |
% |
|
February 2021 |
March 2021 |
Andreas K |
|
92,000 |
|
2009 |
|
South Korea |
|
Spot11 |
|
$ |
32,500 |
|
|
5.00 |
% |
|
February
2021 |
March 2021 |
Panayiota K 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 12 |
|
$ |
12,400 |
|
|
5.00 |
% |
|
January 2021 |
April 2021 |
Agios Spyridonas 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 12 |
|
$ |
10,750 |
|
|
5.00 |
% |
|
December 2020 |
April 2021 |
Venus Heritage 10 |
|
95,800 |
|
2010 |
|
Japan |
|
Spot 12 |
|
$ |
15,000 |
|
|
5.00 |
% |
|
January 2021 |
February 2021 |
Venus History 10 |
|
95,800 |
|
2011 |
|
Japan |
|
Spot12 |
|
$ |
14,500 |
|
|
5.00 |
% |
|
February 2021 |
February 2021 |
Venus Horizon |
|
95,800 |
|
2012 |
|
Japan |
|
Spot11 |
|
$ |
18,500 |
|
|
5.00 |
% |
|
January 2021 |
April 2021 |
Troodos Sun |
|
85,000 |
|
2016 |
|
Japan |
|
Period12 |
|
$ |
16,000 |
|
|
5.00 |
% |
|
February 2021 |
May 2021 |
Troodos Air |
|
85,000 |
|
2016 |
|
Japan |
|
Period12 |
|
$ |
11,500 |
|
|
5.00 |
% |
|
February 2021 |
March 2021 |
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 |
|
BCI * 119% |
|
5.00 |
% |
|
February 2021 |
February 2022 |
TOTAL |
|
3,862,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Orderbook |
TBN17 |
|
82,000 |
|
1H 2022 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
87,000 |
|
Q3 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 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
February 12, 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 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 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.(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 remaining tenor of the time charter party.(7) A period
time charter of 12 to 14 months at a gross daily charter rate
linked to the Baltic Exchange Capesize Index (“BCI'') times 119%.
(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 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.(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 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 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.(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 daily gross 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 daily gross 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 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) The vessel will be sold
and leased back upon Mezzanine Equity redemption 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 enter an
agreement to sell the vessel with expected delivery to her new
owners in March 2021. (20) The Company has enter an agreement to
sell the vessel with expected delivery to her new owners in April
2021.
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 StatementsThis
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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