Capital Link hosted a presentation by the senior management of Safe
Bulkers (NYSE: SB) on Tuesday, January 17, 2023. During the
40-minute session, Dr. Loukas Barmparis, President, Konstantinos
Adamopoulos, CFO, and Thanasis Antonakis, Assistant CFO & CCO,
stressed the importance of environmental upgrades in remaining
competitive, outlined the status of the dry bulk market, and
discussed the status of the company’s fleet as part of Capital
Link’s Company Presentation Series.
Replay of the full sessionA
replay of the full session of the presentation and the extensive
Q&A can be accessed at:
https://www.youtube.com/watch?v=pL7enca_AVQ
Highlights from Safe Bulkers session at the
Capital Link Presentation Series include the following:
Safe Bulkers has been providing marine-dry bulk
transportation services across the globe. The company’s fleet
consists of 44 dry bulk vessels—12 Panamax, 7 Kamsarmax, 17
Post-Panamax, and 8 Capesize vessels—with an average age of just
over 10 years and a total carrying capacity of 4.5 million DWT.
Market Update
Dr. Barmparis, President, stated that global
demand for commodities is weaker than expected at the beginning of
2023 due to various geopolitical and economic factors, including
embargos on Russian energy and oil products, decreased GDPs, and
increased inflation internationally. He also noted that the weak
Cape and Panamax dry bulk market is likely tied to a sharp seasonal
decrease in activity due to the Chinese New Year. Additionally, the
reopening of China as a result of the easing of Covid restrictions
and the country’s push to revitalize its economy and real estate
sector are “good news” for the dry bulk sector, Thanasis Antonakis,
Assistant CFO, stressed. Dr. Barmparis also said that both demand
and ton miles are expected to grow though marginally during this
year.
In terms of supply, “the medium sized
vessels…are aging” Dr. Barmparis stated, and noted that, although a
substantial proportion of the global fleet will soon age out, the
“orderbook is generally quite low due to historic numbers.”
Additionally, only around 30% of the current global dry bulk fleet
is expected to comply with EEXI regulations without requiring
modifications and upgrades. Dr. Barmparis also stressed the
economic and environmental benefits of scrubber technology, which
allows ships to use cheaper fuel than ships without scrubbers.
Investment Highlights
Safe Bulkers’ liquidity amounts to $266 million;
$122 million of cash, cash equivalents, bank time deposits, and
restricted cash, and the remaining $144 million consists of undrawn
borrowing capacity available under revolving credit facilities. At
current share price levels - $3.18 as of January 26th, the
company’s annualized dividend yield is about 6.3%. In addition,
Safe Bulkers has an active share buyback program under which has
repurchased 2.8 million common shares or 56% of the program.
Based on the latest publicly released figures
for Q3 2022, Safe Bulkers’ secured contracted revenues were over
$300 million from non-cancellable time charter contracts excluding
the scrubber benefit. The company’s Loan to Value ratio was 35%,
“which is very comfortable for any expansion opportunities that may
arise,” Dr. Barmparis said. The company expanded its presence into
the Cape market with the purchase of a number of Capesize vessels,
“most of which are already chartered at a $22.7 daily average time
charter rate for two to three years, so the company is enjoying
revenue from these Capes without being affected by the low Cape
market,” Dr. Barmparis noted.
Investing in Environmental Technology
Key to Fleet Competitiveness
Dr. Barmparis stressed the company’s commitment
to ESG and highlighted that Safe Bulkers has invested more than
$120 million in environmental technology. Safe Bulkers has already
taken delivery of 3 IMO GHG Phase 3 - NOx Tier III newbuilds, and
is expecting the delivery of 8 more IMO GHG Phase 3 - NOx Tier III
newbuild dry bulk vessels from Q2 of 2023 until Q1 of 2025, all of
which will comply with the upcoming environmental regulations
regarding emissions. Of the company’s 44 vessels, 80% were built in
Japanese shipyards, and 19 are scrubber-fitted. By the end of 2023,
that figure will increase to 23. All Safe Bulkers’ ships have been
fitted with Ballast Water Treatment technology.
Aware of the importance of keeping up with
environmental regulations to maintain competitiveness, Safe Bulkers
also carried out environmental upgrades on 6 of its vessels in 2022
and will have completed upgrades on a total of 20 by the end of
this year. “A two-tier market will be developed,” Dr. Barmparis
stated when asked about the rate of the global fleet that is in
compliance with environmental regulations. This market will “boost
companies that have invested in environmental technologies,” he
continued, and will prevent companies that have not invested in
such technologies from remaining competitive.
CAPITAL LINK – DISCLAIMER
Capital Link is hosting a series of online
Corporate Presentations, whereby the Senior Management teams of
leading listed maritime companies present their business
development, strategy, growth prospects, and overall sector
outlook. The presentations are approximately 45 minutes and consist
of a company presentation followed by live Q&A between company
management and webinar participants. All presentations in the
series can be accessed
at https://webinars.capitallink.com/2023/company_presentation/.
The webinars, including the ones mentioned
above, are strictly for informational and educational purposes and
should not be relied upon. They do not constitute an offer to buy
or sell securities or investment advice or advice of any kind. The
views expressed are not those of Capital Link which bears no
responsibility for them.
ABOUT CAPITAL LINK
Founded in 1995, Capital Link provides Investor
& Public Relations and Media services to several listed and
private companies, including companies featured in the above
mentioned webinars. Capital Link focuses mainly on the sectors of
energy, commodities, maritime transportation, US Closed-End Funds
and ETFs. Furthermore, Capital Link organizes a series of industry
and investment conferences annually in key industry centers in the
United States, Europe and Asia. Capital Link is a member of the
Baltic Exchange. Based in New York City, Capital Link has presence
in London, Athens & Oslo. For additional information, please
visit: www.capitallink.com
SUBSCRIBE TO CAPITAL LINK
INSIGHTSStay up to date on industry news and trends by
subscribing to Capital Link Insights on LinkedIn at
https://www.linkedin.com/newsletters/7019377182598680576/
CONTACTFor more information on
the Company Presentation Series, please email
forums@capitallink.com or call +1 212 661-7566.
Safe Bulkers (NYSE:SB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Safe Bulkers (NYSE:SB)
Historical Stock Chart
From Jul 2023 to Jul 2024