Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three month period ended
March 31, 2021.
Financial
highlights |
|
|
|
|
In million U.S. Dollars except per share data |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Net Revenues |
62.5 |
52.2 |
51.9 |
48.3 |
|
45.7 |
|
Net income/(loss) |
21.3 |
7.6 |
3.3 |
(13.9 |
) |
(9.9 |
) |
Adjusted Net income/(loss)1 |
16.7 |
7.7 |
3.5 |
(13.3 |
) |
(10.2 |
) |
EBITDA2 |
39.3 |
26.2 |
22.1 |
5.7 |
|
9.7 |
|
Adjusted EBITDA 2 |
34.6 |
26.3 |
22.3 |
6.3 |
|
9.4 |
|
Earnings/(loss) per share basic and diluted3 |
0.18 |
0.04 |
0.00 |
(0.16 |
) |
(0.12 |
) |
Adjusted earnings/(loss) per share basic and diluted 3 |
0.14 |
0.04 |
0.00 |
(0.16 |
) |
(0.13 |
) |
|
|
|
|
|
|
Average
Daily results in U.S. Dollars |
|
|
|
|
Time charter equivalent rate4 |
15,567 |
12,319 |
12,575 |
8,094 |
|
9,089 |
|
Daily vessel operating expenses5 |
4,702 |
3,978 |
4,896 |
4,729 |
|
4,771 |
|
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses6 |
4,358 |
3,955 |
4,459 |
4,207 |
|
4,285 |
|
Daily general and administrative expenses7 |
1,440 |
1,469 |
1,418 |
1,374 |
|
1,371 |
|
|
|
|
|
|
|
In million U.S.
Dollars |
|
|
|
|
|
Total Cash8 |
130.1 |
124.0 |
106.7 |
118.8 |
|
109.3 |
|
Liquidity9 |
191.4 |
171.2 |
109.7 |
119.8 |
|
145.7 |
|
Total Debt10 |
603.2 |
607.7 |
608.9 |
625.4 |
|
605.2 |
|
______________________1 Adjusted Net
income/(loss) is a non-GAAP measure. Adjusted Net income/(loss)
represents Net income/(loss) before gain/(loss) on derivatives,
early redelivery income, loss on vessels held for sale , 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 income,
loss on vessels held for sale 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-deliveryexpenses 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 and Liability directly associated with assets held
for sale, net of deferred financing costs.
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: "During the first quarter of 2021 we increased our
profitability and strengthened our balance sheet. We intend to
continue our efforts to gradually renew our fleet through selective
sales of older vessels and new acquisitions. We are focused
on our environmental performance and will continue to invest to
improve our operations in this area. We believe our
environmental investments will contribute to sustained operational
and financial advantages."
Update on COVID-19, company's actions
and status
There has been a negative effect from the
COVID-19 pandemic on the Company's results of operations and
financial condition during the first quarter, due to higher crew
and related costs of about $0.6 million. 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 new waves 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 has had a significant
impact on the shipping industry and seafarers in general, as port
lockdowns were imposed globally during 2020 and 2021. The Company
has worked extensively to find solutions focusing on effectively
managing crew changes despite the ongoing port closures and travel
restrictions imposed by governments around the world. The Company
has also taken measures to protect its seafarers' and shore
employees' health and well-being, keep its vessels sailing with
minimal disruption to their trading ability, service its charterers
and mitigate and address the risks, effects and impact of COVID-19
on 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 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 April 23, 2021, the Company had sold
4,555,320 common shares under the ATM Program with aggregate net
offering proceeds to the Company of $12.7 million.
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, at the request of the
charterer, the Company agreed to the early termination of an
existing charter of the Capesize-class vessel 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 $7.6 million. The vessel was redelivered in
February 2021, on which date the total termination cash
compensation net of accrued revenue, was recognized as early
redelivery income. The vessel 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'') multiplied by
119%.
During the first quarter of 2021, we operated
42.27 vessels on average earning a TCE11 of $15,567 compared to
41.00 vessels earning a TCE of $9,089 during the same period in
2020. 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. Please
refer to table 5: fleet data and average daily indicators for TCE
equivalent rate reconciliation.
Table 1: Contracted employment profile of
fleet ownership days as of April 23, 2021
2021 (remaining) |
53 |
% |
2021 (full year) |
67 |
% |
2022 |
18 |
% |
2023 |
16 |
% |
The detailed employment profile is presented in
Table 6.
Orderbook
The Company's orderbook consists of two Japanese
dry-bulk newbuild vessels, one Kamsarmax class, 82,000 dwt and 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).
Vessel sales and second hand
acquisition
In the framework of fleet renewal the Company
has acquired a 2011 second-hand Panamax vessel and has sold a 2003
Panamax vessel and has agreed to sell a 2004 Panamax vessel as
further described below.
In March 2021, the Company acquired the 2011
built Panamax class MV Paraskevi 2, built in Japan, at a price of
$14.1 million before commissions. The vessel is a sister vessel
with two other vessels owned by the Company, and her acquisition
was funded from available cash. She has been chartered for 11 to 14
months at a gross daily charter rate of $13,800.
On January 21, 2021, the Company signed an
agreement to sell the Panamax class MV Paraskevi, built 2003, at a
price of $7.3 million before commissions. The vessel was classified
as held for sale. The sale transaction was consummated in April
2021.
On January 28, 2021, the Company signed an
agreement to sell the Panamax class MV Vassos, built 2003, at a
price of $8.7 million before commissions. The vessel was classified
as held for sale and the associated loan facility with a balance of
$5.8 million before deferred financing costs was classified as
liability directly associated with asset held for sale, as of the
end of the first quarter of 2021. The loan facility was fully
repaid in April 2021. The sale is expected to be consummated in May
2021.
As a result of the agreed sale transactions, our
debt has decreased by $9.8 million and our liquidity will increase
by $5.7 million.
Refinancing and mezzanine equity
redemption
During the first quarter of 2021, the Company
completed the documentation for the refinancing of a $22.0 million
outstanding term loan facility maturing in 2022 secured by an
existing vessel, by entering into a $30.5 million sale and lease
back agreement which provides for a seven-year bareboat charter
with a purchase option in the Company's favor five years and six
months following commencement of the bareboat charter period, at a
predetermined purchase price. The Company has assessed that this
agreement meets the criteria of a financing transaction. The
transaction was consummated in April 2021, providing additional
liquidity of $8.5 million.
In April 2021, the Company agreed in principle
to the refinancing of a $16.3 million outstanding term loan
facility maturing in 2024 secured by an existing vessel, by
entering into a $24.3 million sale and lease back agreement which
provides for a ten-year bareboat charter with purchase options in
the Company's favor after the third year following commencement of
the bareboat charter period and a purchase obligation at the end of
the bareboat charter period, all at predetermined purchase prices.
The Company has assessed that this agreement meets the criteria of
a financing transaction. The transaction is expected to be
consummated in the third quarter of 2021 and will provide
additional liquidity of $8.0 million.
In February 2021, a Company's subsidiary
redeemed all issued and outstanding Series A cumulative redeemable
perpetual Preferred Shares, previously recorded as mezzanine equity
(the "Mezzanine Equity") in the condensed consolidated balance
sheets, with a redemption price of $17.6 million, including accrued
dividend. The Mezzanine Equity was issued in 2018 to a third party
investor in relation to the financing of the vessel Pedhoulas
Cedrus. At the same time, the Company consummated a sale and lease
back transaction for an amount of $24.3 million providing for a
ten-year 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. The gross proceeds of $24.3
million were used for the redemption the Mezzanine Equity and for
general corporate purposes. The increase of our liquidity from this
refinancing was $6.7 million.
Liquidity and capital expenditure
requirements
As of March 31, 2021, we had liquidity of $191.4
million, consisting of cash, cash equivalents, bank time deposits,
restricted cash and includes $61.2 million available under sale and
lease back agreements, a new term loan facility and a revolving
credit facility. As of March 31, 2021, the Company had an existing
fleet of 43 vessels and two newbuild vessels on order. The
aggregate remaining capital expenditure requirements for the
acquisition of the two newbuilds amounted to $52.0 million in the
aggregate, of which $0.6 million is payable in 2021 and $51.4
million payable in 2022. In addition, the committed capital
expenditure requirements in relation to one exhaust gas cleaning
device (‘Scrubber’) and ballast water treatment systems (‘BWTS’)
retrofits were $3.2 million in the aggregate, with scheduled
payments of $2.3 million in 2021, and $0.9 million in 2022.
As of April 23, 2021, we had liquidity of
$209.6 million, consisting of cash, cash equivalents, bank time
deposits, restricted cash and includes $66.2 million available
under sale and lease back agreements, a new term loan facility, a
revolving credit facility as well as $24.3 million available under
a sale and lease back agreement, agreed in principle, for the
refinancing of a $16.3 million outstanding term loan facility,
providing an additional net liquidity of $8.0 million. As of
April 23, 2021, the Company had an existing fleet of 42
vessels and two newbuild vessels on order. The aggregate remaining
capital expenditure requirements for the acquisition of the two
newbuilds amounted to $52.0 million in the aggregate, of which $0.6
million is payable in 2021 and $51.4 million payable in 2022. In
addition, the committed capital expenditure requirements in
relation to one Scrubber and BWTS retrofits were $3.2 million, with
scheduled payments of $2.3 million in 2021, and $0.9 million in
2022.
Debt Profile
As of March 31, 2021, our consolidated debt
before deferred financing costs was $607.6 million. The loan
repayment schedule of the Company as of March 31, 2021, is
presented below in Table 2.
Table 2: Loan repayment
Schedule(in USD millions)
Ending December 31, |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028-2031 |
Total |
March 31, 2021 |
60.1 |
117.8 |
118.0 |
170.2 |
68.7 |
18.0 |
43.5 |
11.3 |
607.6 |
Derivatives
During the first quarter of 2021, the Company
entered into bunker fuel contracts for 12,000 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 a
pay-fixed, receive-variable interest rate derivative contract
commencing February 2021 and maturing December 2025, at a fixed
rate of 0.745% and for a notional amount of $30,000. As of March
31, 2021, the aggregate notional amount of outstanding interest
rate derivative contracts was $273.6 million or about 45% 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 is continuing the retrofit of ballast water
treatment systems on the remainder of its vessels. As of March 31,
2021, 31 of our vessels were fitted with ballast water systems. The
aggregate cost of our environmental investments as of March 31,
2021 quarter end was $67.4 million. In February 2021, the Company
entered into an agreement for an additional scrubber installation
on one of its Capesize class vessels, scheduled to take place
during the fourth quarter of 2021.
The scheduled number and estimated down-time
days for dry-dockings and environmental investments as of March 31,
2021 until the end of this year is presented in Table 3.
Table 3: Scheduled number and estimated
down-time for dry-dockings and environmental
investments.
|
Down time in Days |
|
Q2 2021 |
Q3 2021 |
Q4 2021 |
Number of vessels |
3 |
0 |
2 |
Total down time |
90 |
0 |
50 |
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the first quarter of 2021. The Company
had 106,765,086 shares of common stock issued and outstanding as of
April 23, 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 January 20, 2021 to April 29, 2021,
which was paid on April 30, 2021 to the respective shareholders of
record as of April 23, 2021, was $2.75 million. Following
redemption of all Mezzanine Equity in February 2021, no issued and
outstanding shares of Series A Preferred Shares exist as of March
31, 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 Thursday, May 6, 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 May 14, 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 First Quarter
2021 Results
During the first quarter of 2021, we operated in
an improved charter market environment and higher charter rates
compared to the fourth quarter of 2020, with lower interest
expenses, while our revenues were supported by the earnings from
scrubber fitted vessels and the reduced voyage expenses. During the
first quarter of 2021, we had a TCE of $15,567 compared to a TCE of
$9,089 during the same period in 2020. The net income for the first
quarter of 2021, reached $21.3 million compared to net loss of $9.9
million during the same period in 2020. In more detail the change
in net income resulted from the following main factors:
Net revenues: Net revenues increased by 37% to
$62.5 million for the first quarter of 2021, compared to $45.7
million for the same period in 2020, mainly due to the increased
TCE rate as a result of the improved market, assisted by the
additional revenues earned by our scrubber fitted vessels.
Voyage expenses: Voyage expenses decreased to
$4.4 million for the first quarter of 2021 compared to $13.2
million for the same period in 2020, as a net effect of decreased
vessel repositioning expenses, lower loss on bunkers sales and
reduced 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 1% to $17.9 million for the first quarter of
2021 compared to $17.8 million for the same period in 2020, which
is associated with reduced dry-dockings and provision of technical
services and increased crew repatriation expenses due to COVID-19
pandemic. In more detail: i) spares decreased to $2.1 million for
the first quarter of 2021, compared to $2.5 million for the same
period in 2020, ii) repairs and maintenance remained stable at $0.8
million, iii) dry docking expense decreased to $1.3 million related
to one fully and one partially completed dry docking during the
first quarter of 2021, compared to $1.8 million related to two
fully and one partially completed dry dockings for the same period
of 2020, iv) crew wages, repatriation and related costs increased
to $8.8 million for the first quarter of 2021 compared to $8.2
million for the same period in 2020 and v) stores and provisions
increased to $2.1 million for the first quarter of 2021, compared
to $1.6 million for the same period in 2020. 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 $1.3 million and $1.8 million for the first quarter of
2021 and 2020, respectively, vessel operating expenses increased to
$16.6 million for the first quarter of 2021 compared to $16.0
million for the same period in 2020, as a result of 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 many do not include
dry-docking expenses within vessel operating expenses costs and
present these separately.
Depreciation: Depreciation increased marginally
by 2% to $13.3 million for the first quarter of 2021, compared to
$13.1 million for the same period in 2020, as a result of the
additional depreciation for the newbuild delivered during the
second quarter of 2020 and for the second hand vessel delivered
during the first quarter of 2021, partially offset by the cessation
of depreciation for vessels Paraskevi and Vassos which have been
classified as assets held for sale during the fourth quarter of
2020 and during the first quarter of 2021, respectively.
Early redelivery income: Early redelivery of
$7.6 million for the first quarter of 2021, compared to zero for
the same period in 2020. Early redelivery income recorded in the
first quarter of 2021, related to the early termination
compensation we received for the early termination requested by the
charterer of the period time charter of our vessel Lake Despina,
which was contractually due to expire in January 2024.
Interest expense: Interest expense decreased to
$4.3 million in the first quarter of 2021 compared to $6.4 million
for the same period in 2020, as a result of the decreased USD LIBOR
affecting the weighted average interest rate of our loans and
credit facilities.
Impairment and loss on vessels held for sale:
Impairment and loss on vessels held for sale amounted to $1.4
million for the first quarter of 2021, compared to zero for the
same period in 2020, as a result of a non-cash loss of MV Paraskevi
and MV Vassos. The sale of the MV Paraskevi was consummated in
April 2021, and the sale of the MV Vassos is expected to be
consummated in May 2021.
Daily vessel operating expenses: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, decreased by
1% to $4,702 for the first quarter of 2021 compared to $4,771 for
the same period in 2020. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses increased by 2% to $4,358 for
the first quarter of 2021 compared to $4,285 for the same period in
2020.
Daily general and administrative expenses14:
Daily general and administrative expenses, which include management
fees payable to our Managers and daily company administrations
expenses, increased by 5% to $1,440 for the first quarter of 2021,
compared to $1,371 for the same period in 2020, as a result of
strengthened exchange rate of Euro versus USD affecting our
management fees which are denominated in Euro, partly offset by the
decreased company administration expenses.
Balance sheet
Assets held for sale/Liabilities directly
associated with asset held for sale: As of March 31, 2020, we have
classified the assets and liabilities directly associated with the
vessels Paraskevi and Vassos as assets held for sale and presented
them on the balance sheet separately under (a) current assets in
the amount of $15.7 million, which represents the net book value of
the vessel and other assets on board the vessels including their
inventories, and (b) liabilities directly associated with assets
held for sale of $5.7 million, which represents the outstanding
balance of the loan facility secured by the vessel Vassos net of
deferred finance charges.
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 March
31, |
|
2020 |
|
2021 |
REVENUES: |
|
|
|
Revenues |
47,586 |
|
|
|
65,222 |
|
|
Commissions |
(1,871 |
) |
|
|
(2,704 |
) |
|
Net revenues |
45,715 |
|
|
|
62,518 |
|
|
EXPENSES: |
|
|
|
Voyage expenses |
(13,203 |
) |
|
|
(4,376 |
) |
|
Vessel operating expenses |
(17,799 |
) |
|
|
(17,888 |
) |
|
Depreciation |
(13,107 |
) |
|
|
(13,324 |
) |
|
General and administrative expenses |
(5,115 |
) |
|
|
(5,479 |
) |
|
Impairment and loss on vessels held for sale |
— |
|
|
|
(1,420 |
) |
|
Early redelivery income |
— |
|
|
|
7,555 |
|
|
Operating (loss)/income |
(3,509 |
) |
|
|
27,586 |
|
|
OTHER (EXPENSE) /
INCOME: |
|
|
|
Interest expense |
(6,424 |
) |
|
|
(4,252 |
) |
|
Other finance cost |
(153 |
) |
|
|
(151 |
) |
|
Interest income |
384 |
|
|
|
33 |
|
|
Gain/(loss) on derivatives |
47 |
|
|
|
(896 |
) |
|
Foreign currency gain/(loss) |
201 |
|
|
|
(582 |
) |
|
Amortization and write-off of deferred finance charges |
(495 |
) |
|
|
(420 |
) |
|
Net (loss)/income |
(9,949 |
) |
|
|
21,318 |
|
|
Less Preferred dividend |
2,872 |
|
|
|
2,825 |
|
|
Mezzanine equity measurement |
82 |
|
|
|
(271 |
) |
|
Net (loss)/income available to common
shareholders |
(12,903 |
) |
|
|
18,764 |
|
|
(Loss)/earnings per share basic and
diluted |
(0.12 |
) |
|
|
0.18 |
|
|
Weighted average number of shares |
103,408,846 |
|
|
|
103,363,376 |
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Period EndedMarch
31, |
|
|
2020 |
|
2021 |
(In millions of U.S.
Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating activities |
|
2.6 |
|
|
|
38.8 |
|
|
Net cash used in investing
activities |
|
(6.3 |
) |
|
|
(9.2 |
) |
|
Net cash used in financing
activities |
|
(3.2 |
) |
|
|
(16.9 |
) |
|
Net increase in cash and cash
equivalents |
|
(6.9 |
) |
|
|
12.7 |
|
|
|
|
|
|
|
|
|
|
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
|
December 31, 2020 |
|
March 31, 2021 |
ASSETS |
|
|
|
|
Cash, time deposits, and restricted cash |
|
105,218 |
|
|
112,790 |
|
Other current assets |
|
21,459 |
|
|
20,675 |
|
Assets held for sale |
|
8,057 |
|
|
15,700 |
|
Vessels, net |
|
942,164 |
|
|
933,575 |
|
Advances for vessels |
|
9,126 |
|
|
9,583 |
|
Restricted cash non-current |
|
18,754 |
|
|
17,354 |
|
Other non-current assets |
|
851 |
|
|
3,486 |
|
Total assets |
|
1,105,629 |
|
|
1,113,163 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current portion of long-term debt |
|
75,784 |
|
|
88,177 |
|
Liability directly associated with asset held for sale |
|
3,983 |
|
|
5,738 |
|
Other current liabilities |
|
24,948 |
|
|
27,092 |
|
Long-term debt, net of current portion |
|
531,883 |
|
|
509,277 |
|
Other non-current liabilities |
|
6,172 |
|
|
7,065 |
|
Mezzanine equity |
|
18,112 |
|
|
— |
|
Shareholders’ equity |
|
444,747 |
|
|
475,814 |
|
Total liabilities and equity |
|
1,105,629 |
|
|
1,113,163 |
|
TABLE 4 RECONCILIATION
OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS/(LOSS) PER SHARE
|
|
Three-Months Period Ended March
31, |
(In thousands of U.S. Dollars
except for share and per share data) |
|
2020 |
|
2021 |
Net (Loss)/Income -
Adjusted Net Income/(Loss) |
|
|
|
|
Net (Loss)/Income |
|
(9,949 |
) |
|
|
21,318 |
|
|
Plus Impairment and loss on
vessels held for sale |
|
— |
|
|
|
1,420 |
|
|
Plus (Gain)/loss on
derivatives |
|
(47 |
) |
|
|
896 |
|
|
Plus Foreign currency
(gain)/loss |
|
(201 |
) |
|
|
582 |
|
|
Less Early Redelivery
Income |
|
— |
|
|
|
(7,555 |
) |
|
Adjusted net
(loss)/income |
|
(10,197 |
) |
|
|
16,661 |
|
|
EBITDA - Adjusted
EBITDA |
|
|
|
|
Net
(loss)/income |
|
(9,949 |
) |
|
|
21,318 |
|
|
Plus Net Interest expense |
|
6,040 |
|
|
|
4,219 |
|
|
Plus Depreciation |
|
13,107 |
|
|
|
13,324 |
|
|
Plus Amortization and
write-off of deferred finance charges |
|
495 |
|
|
|
420 |
|
|
EBITDA |
|
9,693 |
|
|
|
39,281 |
|
|
Plus Impairment and loss on
vessels held for sale |
|
— |
|
|
|
1,420 |
|
|
Less Early Redelivery
Income |
|
— |
|
|
|
(7,555 |
) |
|
Plus (Gain)/loss on
derivatives |
|
(47 |
) |
|
|
896 |
|
|
Plus Foreign currency
(gain)/loss |
|
(201 |
) |
|
|
582 |
|
|
ADJUSTED
EBITDA |
|
9,445 |
|
|
|
34,624 |
|
|
Earnings per
share |
|
|
|
|
Net
(loss)/income |
|
(9,949 |
) |
|
|
21,318 |
|
|
Less Preferred dividend |
|
2,872 |
|
|
|
2,825 |
|
|
Less/(Plus) Mezzanine equity
measurement |
|
82 |
|
|
|
(271 |
) |
|
Net (loss)/income
available to common shareholders |
|
(12,903 |
) |
|
|
18,764 |
|
|
Weighted average number of
shares |
|
103,408,846 |
|
|
|
103,363,376 |
|
|
(Loss)/Earnings per share |
|
(0.12 |
) |
|
|
0.18 |
|
|
Adjusted
(Loss)/Earnings per share |
|
|
|
|
Adjusted Net
(Loss)/Income |
|
(10,197 |
) |
|
|
16,661 |
|
|
Less Preferred dividend |
|
2,872 |
|
|
|
2,825 |
|
|
Less/(Plus) Mezzanine equity
measurement |
|
82 |
|
|
|
(271 |
) |
|
Adjusted Net (loss)/income
available to common shareholders |
|
(13,151 |
) |
|
|
14,107 |
|
|
Weighted average number of
shares |
|
103,408,846 |
|
|
|
103,363,376 |
|
|
Adjusted
(Loss)/Earnings per share |
|
(0.13 |
) |
|
|
0.14 |
|
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under USGAAP.- EBITDA represents Net income
before interest, income tax expense, depreciation and
amortization.- Adjusted EBITDA represents EBITDA before impairment
and loss on vessels held for sale, gain/(loss) on derivatives,
early redelivery income and gain/(loss) on foreign currency.-
Adjusted Net income/(loss) represents Net income/(loss) before
impairment and loss on vessels held for sale, gain/(loss) on
derivatives, early redelivery income and gain/(loss) on foreign
currency.- Adjusted earnings/(loss) per share represents Adjusted
Net income/(loss) less preferred dividend and mezzanine equity
measurement divided by the weighted average number of shares.-
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings per share are used as supplemental financial measures by
management and external users of financial statements, such as
investors, to assess our financial and operating performance. The
Company believes that these non-GAAP financial measures assist our
management and investors by increasing the comparability of our
performance from period to period. The Company believes that
including these supplemental financial measures assists our
management and investors in (i) understanding and analyzing the
results of our operating and business performance, (ii) selecting
between investing in us and other investment alternatives and (iii)
monitoring our financial and operational performance in assessing
whether to continue investing in us. The Company believes that
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share are useful in evaluating the Company’s
operating performance from period to period because the calculation
of EBITDA generally eliminates the effects of financings, income
taxes and the accounting effects of capital expenditures and
acquisitions, the calculation of Adjusted EBITDA and Adjusted Net
Income/Loss generally further eliminates from EBITDA and Net
Income/(Loss) respectively the effects from impairment and loss on
vessels held for sale, gain/(loss) on derivatives, early redelivery
income and gain/(loss) on foreign currency and loss on inventory
valuation, items which may vary from year to year and for different
companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net income and Adjusted earnings
per share have limitations as analytical tools, and should not be
considered in isolation, or as a substitute for analysis of the
Company’s results as reported under US GAAP. While EBITDA and
Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share, are frequently used as measures of
operating results and performance, they are not necessarily
comparable to other similarly titled captions of other companies
due to differences in methods of calculation. In evaluating
Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted
earnings/(loss) per share, you should be aware that in the future
we may incur expenses that are the same as or similar to some of
the adjustments in this presentation. Our presentation of Adjusted
EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per
share should not be construed as an inference that our future
results will be unaffected by the excluded items.
TABLE 5: FLEET DATA AND AVERAGE DAILY
INDICATORS
|
Three-Months Period Ended March
31, |
|
|
2020 |
|
2021 |
|
FLEET DATA |
|
|
|
|
Number of vessels at period’s
end |
41 |
|
|
|
43 |
|
|
|
Average age of fleet (in
years) |
9.58 |
|
|
|
10.35 |
|
|
|
Ownership days (1) |
3,731 |
|
|
|
3,804 |
|
|
|
Available days (2) |
3,577 |
|
|
|
3,735 |
|
|
|
Average number of vessels in
the period (3) |
41.00 |
|
|
|
42.27 |
|
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
Time charter equivalent rate (4) |
$ |
9,089 |
|
|
|
$ |
15,567 |
|
|
|
Daily vessel operating
expenses (5) |
$ |
4,771 |
|
|
|
$ |
4,702 |
|
|
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (6) |
$ |
4,285 |
|
|
|
$ |
4,358 |
|
|
|
Daily general and
administrative expenses (7) |
$ |
1,371 |
|
|
|
$ |
1,440 |
|
|
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
Revenues |
$ |
47,586 |
|
|
|
$ |
65,222 |
|
|
|
Less commissions |
(1,871 |
) |
|
|
(2,704 |
) |
|
|
Less voyage expenses |
(13,203 |
) |
|
|
(4,376 |
) |
|
|
Time charter equivalent
revenue |
$ |
32,512 |
|
|
|
$ |
58,142 |
|
|
|
Available days (2) |
3,577 |
|
|
|
3,735 |
|
|
|
Time charter equivalent rate
(4) |
$ |
9,089 |
|
|
|
$ |
15,567 |
|
|
|
_____________
(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. While
TCE rate, is frequently used as measure of operating results and
performance, it is not necessarily comparable to other similarly
titled captions of other companies due to differences in methods of
calculation.(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 April 23, 2021
Vessel Name |
|
Dwt |
|
YearBuilt 1 |
|
Country ofConstruction |
|
CharterType |
|
CharterRate
2 |
|
Commissions 3 |
|
Charter Period 4 |
CURRENT FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maria |
|
76,000 |
|
2003 |
|
Japan |
|
Spot |
|
$ |
15,875 |
|
|
5.00 |
% |
|
March 2021 |
June 2021 |
Koulitsa |
|
76,900 |
|
2003 |
|
Japan |
|
Period |
|
$ |
19,000 |
|
5.00 |
% |
|
April 2021 |
December 2021 |
Vassos
19 |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
$ |
11,750 |
|
|
5.00 |
% |
|
January 2021 |
May 2021 |
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
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 |
Paraskevi
2 |
|
75,000 |
|
2011 |
|
Japan |
|
Period |
|
$ |
13,800 |
|
5.00 |
% |
|
April 2021 |
March 2022 |
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Spot |
|
101.5% BPI 74 |
|
5.00 |
% |
|
December 2020 |
October 2021 |
Zoe
10 |
|
75,000 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
11,650 |
|
|
5.00 |
% |
|
September 2020 |
July 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 |
|
$ |
10,019 |
|
|
5.00 |
% |
|
December 2020 |
May 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 |
August 2021 |
PedhoulasBuilder |
|
81,600 |
|
2012 |
|
China |
|
Spot 12 |
|
$ |
19,730 |
|
|
5.00 |
% |
|
February 2021 |
May 2021 |
Pedhoulas
Fighter |
|
81,600 |
|
2012 |
|
China |
|
Period 11 |
|
$ |
19,700 |
|
5.00 |
% |
|
April 2021 |
August 2021 |
Pedhoulas
Farmer 5 |
|
81,600 |
|
2012 |
|
China |
|
Period 11 |
|
$ |
23,000 |
|
|
5.00 |
% |
|
April 2021 |
April 2022 |
Pedhoulas
Cherry |
|
82,000 |
|
2015 |
|
China |
|
Spot 12 |
|
$ |
28,062 |
|
|
5.00 |
% |
|
April 2021 |
June 2021 |
Pedhoulas
Rose 5 |
|
82,000 |
|
2017 |
|
China |
|
Spot11 |
|
$ |
13,750 |
|
|
5.00 |
% |
|
December 2020 |
September 2021 |
Pedhoulas
Cedrus18 |
|
82,000 |
|
2017 |
|
China |
|
Period |
|
$ |
13,000 |
|
|
3.75 |
% |
|
August 2020 |
June 2021 |
Post-Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marina |
|
87,000 |
|
2006 |
|
Japan |
|
Spot12 |
|
$ |
21,500 |
|
|
5.00 |
% |
|
April 2021 |
May 2021 |
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Spot11 |
|
$ |
15,263 |
|
|
5.00 |
% |
|
February 2021 |
June 2021 |
Sophia |
|
87,000 |
|
2007 |
|
Japan |
|
Spot11 |
|
$ |
23,400 |
|
5.00 |
% |
|
April 2021 |
May 2021 |
Eleni |
|
87,000 |
|
2008 |
|
Japan |
|
Spot11 |
|
$ |
23,000 |
|
|
5.00 |
% |
|
March 2021 |
May 2021 |
Martine |
|
87,000 |
|
2009 |
|
Japan |
|
Spot12 |
|
$ |
13,500 |
|
|
5.00 |
% |
|
April 2021 |
May 2021 |
|
|
|
|
Period |
|
$ |
15,100 |
|
|
5.00 |
% |
|
May 2021 |
February 2022 |
Andreas
K |
|
92,000 |
|
2009 |
|
South Korea |
|
Spot |
|
$ |
22,800 |
|
|
5.00 |
% |
|
April 2021 |
April 2021 |
Panayiota
K 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 12 |
|
$ |
26,250 |
|
|
5.00 |
% |
|
April 2021 |
May 2021 |
Agios
Spyridonas 9 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 11 |
|
$ |
25,500 |
|
|
5.00 |
% |
|
April 2021 |
May 2021 |
Venus
Heritage 10 |
|
95,800 |
|
2010 |
|
Japan |
|
Spot 12 |
|
$ |
16,000 |
|
|
5.00 |
% |
|
February 2021 |
May 2021 |
Venus
History 10 |
|
95,800 |
|
2011 |
|
Japan |
|
Spot12 |
|
$ |
15,500 |
|
|
5.00 |
% |
|
April 2021 |
May 2021 |
Venus
Horizon |
|
95,800 |
|
2012 |
|
Japan |
|
Spot12 |
|
$ |
18,500 |
|
|
5.00 |
% |
|
January 2021 |
April 2021 |
Troodos
Sun 11 |
|
85,000 |
|
2016 |
|
Japan |
|
Spot |
|
$ |
16,000 |
|
|
5.00 |
% |
|
February 2021 |
May 2021 |
Troodos
Air |
|
85,000 |
|
2016 |
|
Japan |
|
Period12 |
|
$ |
16,350 |
|
|
5.00 |
% |
|
March 2021 |
December 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 |
|
Period11 |
|
$ |
26,600 |
|
5.00 |
% |
|
April 2021 |
January 2022 |
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 20 |
|
181,400 |
|
2014 |
|
Japan |
|
Period 7 |
|
BCI * 119% |
|
5.00 |
% |
|
February 2021 |
January 2022 |
TOTAL |
|
3,862,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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
April 23, 2021, 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 11 to 13 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
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 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, or in cases where it can not be
estimated is not part of the stated daily charter hire. 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 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, or in cases where it can not be
estimated is not part of the stated daily charter hire. 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) MV
Pedhoulas Cedrus was sold and leased back in February 2021 on a
bareboat charter basis for a period of ten years with a purchase
option in favor of the Company three years following the
commencement of the bareboat charter period and a purchase
obligation at the end of the bareboat charter period, all at
predetermined purchase prices.(19) The Company has entered an
agreement to sell the vessel with expected delivery to her new
owners in May 2021.(20) MV Lake Despina was sold and leased back in
April 2021 on a bareboat charter basis for a period of seven years
with a purchase option in favor of the Company, five years and six
months following the commencement of the bareboat charter period at
a predetermined purchase price.
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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