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 month
periods ended December 31, 2022. The Board of Directors of the
Company also declared a cash dividend of $0.05 per share of
outstanding common stock.
Financial highlights |
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In million U.S. Dollars except per share data |
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Twelve Months 2022 |
Twelve Months 2021 |
Net revenues |
86.7 |
93.7 |
91.6 |
77.7 |
92.4 |
349.7 |
329.0 |
Net income |
34.9 |
51.0 |
50.3 |
36.4 |
65.2 |
172.6 |
174.3 |
Adjusted net income1 |
37.0 |
48.8 |
50.4 |
32.3 |
50.4 |
168.5 |
154.0 |
EBITDA2 |
53.8 |
69.1 |
66.5 |
51.0 |
82.4 |
240.4 |
244.3 |
Adjusted EBITDA2 |
56.0 |
66.9 |
66.5 |
46.9 |
67.6 |
236.4 |
223.9 |
Earnings per share basic and diluted3 |
0.28 |
0.41 |
0.40 |
0.28 |
0.51 |
1.36 |
1.44 |
Adjusted earnings per share basic and diluted3 |
0.29 |
0.39 |
0.40 |
0.24 |
0.39 |
1.32 |
1.26 |
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Average daily results in U.S. Dollars |
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Time charter equivalent rate4 |
21,078 |
23,403 |
25,050 |
21,352 |
26,180 |
22,712 |
21,752 |
Daily vessel operating expenses5 |
5,323 |
4,949 |
4,981 |
5,722 |
5,149 |
5,235 |
4,830 |
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses6 |
4,822 |
4,571 |
4,648 |
4,923 |
4,666 |
4,738 |
4,529 |
Daily general and administrative expenses7 |
1,437 |
1,360 |
1,382 |
1,520 |
1,517 |
1,423 |
1,508 |
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Selected financial highlights |
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In million U.S. Dollars |
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Total cash8 |
123.3 |
121.7 |
139.4 |
166.3 |
112.3 |
Revolving credit facilities9 |
145.0 |
144.3 |
135.4 |
146.6 |
137.7 |
Financing commitments10 |
51.0 |
— |
20.0 |
46.2 |
46.2 |
Unsecured debt11 |
104.6 |
95.4 |
101.8 |
108.3 |
— |
Secured debt12 |
309.8 |
344.2 |
322.9 |
293.3 |
355.7 |
Total debt13 |
414.4 |
439.6 |
424.7 |
401.6 |
355.7 |
Number of vessels at period end |
44 |
44 |
42 |
40 |
39 |
Average age of fleet |
10.72 |
10.47 |
10.47 |
10.48 |
10.30 |
Net debt per vessel14 |
6.6 |
7.2 |
6.8 |
5.9 |
6.2 |
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: "Revenues and EBITDA, although still strong, declined from
the 3rd quarter and year ago 4th quarter levels. Our balance sheet
is strong, with significant cash and revolver capacity. Our net
debt per vessel reflects the conservative nature of our capital
structure. We are focused on renewing our fleet through our
extensive orderbook, while reducing the footprint of our existing
vessels implementing a program of environmental upgrades."
Environmental Social Governance and
Responsibility - Environmental investments -
Dry-dockings
Ballast Water Treatment Systems - BWTSThe
Company has concluded the retrofit of its vessels with BWTS, having
installed such systems on all existing vessels as of
February 10, 2023.
Scrubbers As of February 10, 2023, the
Company has installed Scrubbers on 19 out of 44 existing vessels
and has agreed to four additional Scrubber installations on the
remaining four of its Capesize class vessels, three of which are
expected to be installed within 2023 and the fourth in 2024, all
ahead of expected establishment of sulfur oxides (SOX) emissions
controlled area (ECA) in the Mediterranean Sea.
Green House Gas - GHG emissions investmentsAs of
February 10, 2023, the Company's fleet consists of 44 vessels,
12 of which are eco-ships built after 2014 and three IMO GHG Phase
3 - NOx Tier III ships built 2022 onwards. Following the scheduled
deliveries of four newbuilds in 2023, three newbuilds in 2024 and
one newbuild in 2025, all complying with IMO GHG Phase 3 - NOx Tier
III regulation, the Company's fleet by early 2025 is expected to
include 23 vessels with improved energy efficiency. The capital
expenditure for the 11 IMO GHG Phase 3 - NOx Tier III newbuild
program designed to produce environmental competitiveness in the
quickly evolving regulatory environment is approximately $371.7
million, including supervision fees and commissions of $9.7
million.
In parallel, the Company is continuing a vessel
environmental upgrade program, in relation to existing and
forthcoming GHG emission regulations, which involves application of
low friction paints and installation of energy saving devices,
scheduling to upgrade 20 existing vessels by the end of 2023.
During the year ended December 31, 2022, the
Company completed environmental upgrades on five vessels, namely
the MVs Efrossini, Pedhoulas Rose, Venus Horizon, Sophia and
Pelopidas and has partially completed environmental upgrades on the
MV Maria. During the first quarter of 2023, the Company completed
the environmental upgrades on MV Maria and has scheduled three
additional dry-dockings with an estimated aggregate number of 107
down-time days. During the second quarter of 2023, the Company has
scheduled six dry-dockings with an estimated aggregate number of
156 down-time days. The budget for environmental upgrades in 2023
is approximately $6.9 million.
Fleet update
As of February 10, 2023, we had a fleet of
44 vessels, consisting of 12 Panamax, 7 Kamsarmax, 17 Post-Panamax
and 8 Capesize vessels with an aggregate capacity of 4.5 million
dwt and average age of 10.5 years.
OrderbookAs of February 10, 2023, we had an
orderbook of eight newbuilds designed to meet the International
Maritime Organization regulations related to the reduction of green
house gas and NOx emissions (the ''IMO GHG Phase 3 - NOx Tier
III''), seven of which are Kamsarmax class vessels and one is a
Post-Panamax class vessel, with four scheduled deliveries in 2023,
three in 2024 and one in the first quarter of 2025.
Newbuild deliveryAs of February 10, 2023,
the Company has taken delivery of the MV Climate Ethics, an IMO GHG
Phase 3 - NOx Tier III, Japanese Post-Panamax class vessel.
Vessel saleIn September 2022, the Company
entered into an agreement for the sale of MV Pedhoulas Trader, a
2006 Japanese-built, Kamsarmax class vessel at a sale price of
$15.9 million to an unaffiliated third party. The sale was
consummated in January 2023.
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. The
chartering of our vessels is arranged by our Managers15 without
management commission. The average total chartering commission
including 3rd party brokers was approximately 3.8% during the
fourth quarter of 2022, lower than the standard industry average of
5%, as a result of our Managers' relations forged over the years
with our Managers' counterparts.
As of February 10, 2023,
we employed, or had contracted to employ, 12 vessels in the spot
time charter market (with up to three months original duration) and
32 vessels in the period time charter market (with original
duration in excess of three months), of which 11 with original
duration of more than two years and further three with original
duration of more than one year. As of February 10,
2023, the average remaining charter duration
across our fleet was 1.0 year.
As of February 10, 2023, we had contracted
revenue of approximately $229.5 million, net of commissions, from
our non-cancellable spot and period time charter contracts
excluding the Scrubber benefit. Focusing on the volatility
associated with the Capesize charter market, as of
February 10, 2023, all eight of our Capesize class vessels
have been chartered in period time charters, five of which for
remaining charter durations exceeding one year. The average
remaining charter duration of our Capesize class vessels was 2.8
years and the average daily charter hire was $19,849, resulting in
a contracted revenue of approximately $161.7 million net of
commissions, excluding the additional compensation related to the
use of Scrubbers.
During the fourth quarter of 2022, we operated
44.00 vessels on average earning a TCE of $21,078 compared to 39.23
vessels earning a TCE of $26,180 during the same period in 2021. As
of February 10, 2023, our contracted fleet employment profile
is presented in Table 1.
Table 1: Contracted employment profile of
fleet ownership days as of February 10,
2023
2023 (remaining) |
50 |
% |
2023 (full year) |
56 |
% |
2024 |
26 |
% |
2025 |
15 |
% |
Debt
As of December 31, 2022, our consolidated debt
before deferred financing costs was $422.6 million, including the
€100 million - 2.95% p.a. fixed coupon, non amortizing, unsecured
bond issued in February 2022 and maturing in February 2027. As of
December 31, 2022, our consolidated leverage16 was about 34% and
our weighted average interest rate during the year ended December
31, 2022, was 3.25%. During the year ended December 31, 2022, we
made scheduled principal payments of $30.0 million and voluntary
debt prepayments of $161.3 million. The repayment schedule of our
debt as of December 31, 2022, is presented in Table 2 below:
Table 2: Loan repayment Schedule as
of December 31, 2022(in USD
million)
Ending December 31, |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030-2032 |
Total |
Secured debt |
45.7 |
26.1 |
76.4 |
50.7 |
48.2 |
35.4 |
5.6 |
27.5 |
315.6 |
Unsecured debt |
0.0 |
0.0 |
0.0 |
0.0 |
107.0 |
0.0 |
0.0 |
0.0 |
107.0 |
Total debt |
45.7 |
26.1 |
76.4 |
50.7 |
155.2 |
35.4 |
5.6 |
27.5 |
422.6 |
Fleet scrap value17 |
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348.0 |
Liquidity and capital resources, capital
expenditure requirements and debt as of December
31, 2022
We had $123.3 million in cash, cash equivalents,
bank time deposits and restricted cash, $145.0 million in undrawn
borrowing capacity available under existing revolving reducing
credit facilities and $51.0 million in undrawn borrowing capacity
available under two loan facilities in relation to two newbuild
vessels. We had paid $67.4 million for our capital expenditure
requirements in relation to our orderbook. Furthermore, we had
contracted revenue of approximately $292.0 million, net of
commissions, from our non-cancellable spot and period time charter
contracts excluding the Scrubber benefit, and additional borrowing
capacity in relation to seven unencumbered vessels and seven
newbuilds upon their delivery.
We had a fleet of 44 vessels, an orderbook of
nine newbuilds and had contracted to sell one vessel. The remaining
capital expenditure requirements were $246.2 million in aggregate,
consisting of $243.5 million in relation to the nine newbuilds on
order, and $2.7 million in relation to five Scrubbers and one
ballast water treatment system ("BWTS") retrofits. The schedule of
payments of the remaining capital expenditure requirements is
$155.5 million in 2023, $74.3 million in 2024 and $16.4 million in
2025.
We had $422.6 million of outstanding
consolidated debt before deferred financing costs, including the
unsecured bond issued in February 2022.
Liquidity and capital resources, capital
expenditure requirements and debt as of
February 10, 2023
We had $114.6 million in cash, cash equivalents,
bank time deposits, restricted cash, $132.0 million in undrawn
borrowing capacity available under existing revolving reducing
credit facilities and $118.5 million in undrawn borrowing capacity
available under three loan facilities in relation to three newbuild
and three existing vessels. We had paid $87.5 million for our
capital expenditure requirements in relation to our orderbook.
Furthermore, we had contracted revenue of approximately $229.5
million, net of commissions, from our non-cancellable spot and
period time charter contracts excluding the scrubber benefit, and
additional borrowing capacity in relation to seven unencumbered
vessels and five newbuilds upon their delivery.
We had a fleet of 44 vessels and had placed
orders for eight newbuilds. The remaining capital expenditure
requirements were $224.9 million in aggregate, consisting of $223.4
million in relation to the newbuilds on order and $1.5 million in
relation to four Scrubbers retrofits. The schedule of payments of
the remaining capital expenditure requirements is $134.2 million in
2023, $74.3 million in 2024 and $16.4 million in 2025.
We had $413.9 million of outstanding
consolidated debt before deferred financing costs, including the
unsecured bond.
Common Stock Repurchase
Program
In June 2022, the Company authorized a program
under which it may from time to time in the future purchase up to
5,000,000 shares of its common stock. As of February 10, 2023,
approximately 56% of the program, or 2,807,418 shares of common
stock, had been repurchased and cancelled under the repurchase
program.
Update on COVID-19, company's actions
and status
The COVID-19 pandemic has had a significant
impact on the shipping industry and seafarers, as port lockdowns
and travel restrictions were imposed globally during 2020 and 2021
and continued in 2022. Presently, travel restrictions have been
eased in most parts of the world, including China in the first
quarter of 2023, however it is not known how the pandemic will
develop in the future. The Company has worked extensively to find
solutions focusing on effectively managing crew changes despite
such ongoing port lockdowns and travel restrictions. 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, continue vessels' maintenance and dry-dockings and
mitigate and address the risks, effects and impact of COVID-19 on
its operations and financial performance.
There has been a negative effect from the
COVID-19 pandemic on the Company's results of operations and
financial condition during the fourth quarter of 2022, due to crew
repatriation and related costs of about $0.5 million compared to
the respective pre-COVID-19 period. Certain delays are also
expected in relation to dry-docking durations and schedules due to
restrictions imposed in China. 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 could impact world trade and
global growth.
War in Ukraine
As a result of the war between Russia and
Ukraine which commenced in February 2022, the US, the EU, the UK,
Switzerland and others have announced unprecedented levels of
sanctions and other measures against Russia and certain Russian
entities and nationals. We intend on complying with these
requirements and addressing their potential consequences. While we
do not have any Ukrainian or Russian crew, our vessels currently do
not sail in the Black Sea and we conduct limited operations in
Russia and Ukraine, we will continue to monitor the situation to
assess whether the conflict could have any impact on our operations
or financial performance.
At-the-market equity offering
program
In August 2020, the Company filed a prospectus
supplement with the Securities and Exchange Commission (“SEC”),
under which it could offer and sell shares of its common stock
(“Shares”) from time to time up to aggregate sales proceeds of
$23.5 million through an “at-the-market” equity offering program
(the “ATM Program”). In May 2021, the Company filed a supplement to
its prospectus supplement to increase the capacity under the ATM
Program to allow for sales of Shares for aggregate gross offering
proceeds of up to $100.0 million.
Since September 27, 2021 the Company has not
sold any shares of common stock under the ATM Program, which
presently remains inactive. Since the inception of the ATM Program
the Company had sold 19,417,280 shares of common stock under the
ATM Program with aggregate net offering proceeds to the Company of
$71.5 million. Shares of common stock with aggregate sales proceeds
of up to $28.5 million remain available for sale.
Dividend Policy
In October 2022, the Board of Directors of the
Company declared a cash dividend of $0.50 per share on each of its
8.00% Series C Cumulative Redeemable Perpetual Preferred Shares
(NYSE: SB.PR.C) and 8.00% Series D Cumulative Redeemable Perpetual
Preferred Shares (NYSE: SB.PR.D) for the period from July 30, 2022
to October 29, 2022, which was paid on October 31, 2022 to the
shareholders of record as of October 21, 2022.
In November 2022, the Board of Directors of the
Company declared a cash dividend on the Company’s common stock of
$0.05 per share which was paid on December 15, 2022 to the
shareholders of record of the Company's common stock at the closing
of trading on November 28, 2022.
In January 2023, the Board of Directors of the
Company declared a cash dividend of $0.50 per share on each of its
Series C preferred shares (NYSE: SB.PR.C) and Series D preferred
shares (NYSE: SB.PR.D) for the period from October 30, 2022 to
January 29, 2023, which was paid on January 30, 2023 to the
shareholders of record as of January 20, 2023.
On February 14, 2023, the Board of
Directors of the Company declared a cash dividend on the Company’s
common stock of $0.05 per share which is payable on March 17, 2023
to the shareholders of record of the Company's common stock at the
closing of trading on March 1, 2023. As of February 10, 2023,
the Company had 118,878,626 shares of common stock issued and
outstanding.
The declaration and payment of dividends, if
any, will always be subject to the discretion of the Board of
Directors of the Company. There is no guarantee that the Company’s
Board of Directors will determine to issue cash dividends in the
future. The timing and amount of any dividends declared will depend
on, among other things: (i) the Company’s earnings, fleet
employment profile, financial condition and cash requirements and
available sources of liquidity; (ii) decisions in relation to the
Company’s growth, fleet renewal 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 Wednesday, February 15, 2023, at 9:00
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
877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and
Standard International Dial In), or +0 800 756 3429 (UK Toll-Free
Dial In). Please quote “Safe Bulkers” to the operator and/or
conference ID 13735923. Click here for additional participant
International Toll-Free access numbers.
Alternatively, participants can register for the
call using the call me option for a faster connection to join the
conference call. You can enter your phone number and let the system
call you right away. Click here for the call me option.
Slides and Audio Webcast
There will also be a live, and then archived,
webcast of the conference call and accompanying slides, available
through the Company’s website. To listen to the archived audio
file, visit our website www.safebulkers.com and click on
Events & Presentations. Participants to the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Management Discussion of
Fourth Quarter
2022 Results
During the fourth quarter of 2022, we operated
in a gradually weakening charter market environment compared to the
previous quarter, with decreased revenues due to lower hires,
increased earnings from Scrubber fitted vessels, increased
operating expenses, and higher interest expenses due to increasing
interest rates. During the fourth quarter of 2022, we operated
44.00 vessels on average earning a TCE of $21,078 compared to 39.23
vessels earning a TCE of $26,180 during the same period in 2021.
The net income for the fourth quarter of 2022 reached $34.9 million
compared to net income of $65.2 million during the same period in
2021. In more detail, the change in net income resulted from the
following main factors:
Net revenues: Net revenues decreased by 6% to
$86.7 million for the fourth quarter of 2022, compared to $92.4
million for the same period in 2021, mainly due to lower revenues
from hires partially set off by increased revenues earned by our
Scrubber fitted vessels.
Vessel operating expenses: Vessel operating
expenses increased by 16% to $21.5 million for the fourth quarter
of 2022 compared to $18.6 million for the same period in 2021.
Certain detailed information for the costs included in the vessel
operating expenses are subsequently provided: (i) dry docking
expense increased to $2.0 million related to one fully completed
and one partially completed drydocking during the fourth quarter of
2022, compared to $1.6 million related to three drydockings for the
same period of 2021, (ii) spare parts increased to $2.8 million for
the fourth quarter of 2022, compared to $2.0 million for the same
period in 2021, mainly as a result of the increased average number
of vessels during the fourth quarter of 2022 (iii) crew wages
increased to $8.4 million for the fourth quarter of 2022 compared
to $7.4 million for the same period in 2021 mainly due to the
increased average number of vessels during the fourth quarter of
2022 , (iv) crew repatriation and related costs decreased to $1.0
million for the fourth quarter of 2022 compared to $1.2 million for
the same period in 2021, as a result of gradual easing of
Covid-related travelling restrictions, (v) stores and provisions
expenses increased to $2.1 million for the fourth quarter of 2022,
compared to $1.7 million for the same period in 2021 mainly as a
result of the increased average number of vessels during the fourth
quarter of 2022 (vi) insurance cost increased to $1.3 million for
the fourth quarter of 2022 compared to $0.9 million for the same
period in 2021 mainly as a result of the increased average number
of vessels during the fourth quarter of 2022 and (vii) lubricants
cost increased to $1.2 million for the fourth quarter of 2022,
compared to $0.9 million for the same period in 2021 due to
lubricants cost appreciation. The Company expenses dry-docking and
pre-delivery costs as incurred, which costs may vary from period to
period. Excluding dry-docking costs and pre-delivery expenses of
$2.0 million and $1.7 million for the fourth quarter of 2022 and
2021, respectively, vessel operating expenses increased by 16% to
$19.5 million during the fourth quarter of 2022 in comparison to
$16.9 million during the same quarter of 2021. Dry-docking expense
is related to the number of dry-dockings in each period and
pre-delivery expenses are related to the number of vessel
deliveries and second hand acquisitions in each period. Other
shipping companies may defer and amortize dry-docking expense and
many do not include dry-docking expenses within vessel operating
expenses costs but present these separately.
Depreciation: Depreciation expense decreased by
$0.2 million, or 1% to $13.0 million for the fourth quarter of
2022, compared to $13.2 million for the same period in 2021, as a
result of the change in the estimate of vessels' residual value,
from a scrap rate of $182 per light weight ton to $375 per light
weight ton, effective January 1, 2022, partially set off by the
increased number of vessels during the fourth quarter of 2022. The
basic and diluted net earnings per share for the three months ended
December 31, 2022 would have been $0.26 per share and $0.26 per
share, respectively, if there was no change in the estimated scrap
value, representing a $0.02 and $0.02 reduction to the basic and
diluted net earnings per share, respectively.
Gain on assets sale: Gain on sale of assets for
the fourth quarter of 2022 was zero, compared to $10.9 million for
the same period in 2021, as a result of a gain of $5.2 million from
the sale of MV Pedhoulas Fighter and of $5.7 million from the sale
of MV Koulitsa.
Other operating expenses: Other operating
expenses of $3.6 million during the fourth quarter of 2022
represents loss from the valuation of the bunkers remaining on
board our vessels, which were affected by the decline of bunker
market prices during the relevant period.
Interest expense: Interest expense increased to
$5.9 million in the fourth quarter of 2022 compared to $2.9 million
for the same period in 2021, mainly as a result of the increased
weighted average interest rate of 4.27% during the fourth quarter
of 2022, compared to 2.46% for the same period in 2021, due to
increased USD rates environment.
Gain on derivatives: Gain on derivatives
amounted to $3.3 million in the fourth quarter of 2022 compared to
a gain of $4.2 million for the same period in 2021, mainly due to
increased gains on Foreign currency agreements fair value.
Daily vessel operating expenses: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, increased by
3% to $5,323 for the fourth quarter of 2022 compared to $5,149 for
the same period in 2021. Daily vessel operating expenses excluding
dry-docking expenses increased by 3% to $4,822 for the fourth
quarter of 2022 compared to $4,666 for the same period in 2021.
Daily general and administrative expenses18:
Daily general and administrative expenses, which include management
fees payable to our Managers and daily company administration
expenses, decreased by 5% to $1,437 for the fourth quarter of 2022,
compared to $1,517 for the same period in 2021, as a result of the
weakening of the Euro / U.S. Dollar exchange rate during the fourth
quarter of 2022.
Balance sheet
Right-of-use asset/Lease Liability: As of
December 31, 2021, we had classified the asset and liability
directly associated with the acquisition of the vessel Stelios Y:
as (a) Right-of-use asset and presented it on the balance sheet
separately under Fixed assets in the amount of $31.9 million, which
represents (i) the advance payments and additional purchase costs
paid for the vessel and (ii) the future payments under the 12-month
period bareboat charter that commenced in November 2021 net of
accumulated depreciation of $0.2 million, and as (b) Current Lease
liabilities of $21.9 million, representing the outstanding balance
of the present value of the lease payments of the above mentioned
12-month bareboat charter. During the fourth quarter of 2022, at
the end of the lease period of the bareboat charter, the ownership
of MV Stelios Y was transferred to the Company.
Assets held for sale/Liabilities directly
associated with assets held for sale: As of December 31, 2022, we
had classified the assets and liabilities directly associated with
the vessel Pedhoulas Trader as assets held for sale and presented
them on the balance sheet separately under (a) current assets in
the amount of $12.0 million, which represented the net book value
of the vessel and her inventories, and (b) liabilities directly
associated with assets held for sale of $16.9 million, representing
the sale proceeds and the value of estimated bunkers and lubricants
on board that had been received prior to the delivery of the vessel
in January 2023.
Unaudited Interim Financial Information
and Other Data
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)(In thousands of
U.S. Dollars except for share and per share data)
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period EndedDecember
31, |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
REVENUES: |
|
|
|
|
|
|
|
Revenues |
96,442 |
|
|
90,108 |
|
|
343,475 |
|
|
364,050 |
|
Commissions |
(4,001 |
) |
|
(3,451 |
) |
|
(14,444 |
) |
|
(14,332 |
) |
Net revenues |
92,441 |
|
|
86,657 |
|
|
329,031 |
|
|
349,718 |
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
(469 |
) |
|
(2,935 |
) |
|
(9,753 |
) |
|
(9,969 |
) |
Vessel operating expenses |
(18,581 |
) |
|
(21,548 |
) |
|
(72,049 |
) |
|
(80,211 |
) |
Depreciation |
(13,211 |
) |
|
(13,037 |
) |
|
(52,364 |
) |
|
(49,518 |
) |
General and administrative expenses |
(5,474 |
) |
|
(5,818 |
) |
|
(22,498 |
) |
|
(21,802 |
) |
Gain on sale of assets |
10,947 |
|
|
— |
|
|
11,579 |
|
|
— |
|
Other operating expenses |
— |
|
|
(3,570 |
) |
|
— |
|
|
(3,570 |
) |
Early redelivery income |
— |
|
|
— |
|
|
7,470 |
|
|
— |
|
Operating income |
65,653 |
|
|
39,749 |
|
|
191,416 |
|
|
184,648 |
|
OTHER (EXPENSE) /
INCOME: |
|
|
|
|
|
|
|
Interest expense |
(2,893 |
) |
|
(5,867 |
) |
|
(14,719 |
) |
|
(17,138 |
) |
Other finance cost |
(337 |
) |
|
(364 |
) |
|
(798 |
) |
|
(1,353 |
) |
Interest income |
6 |
|
|
487 |
|
|
69 |
|
|
783 |
|
Gain on derivatives |
4,165 |
|
|
3,349 |
|
|
2,188 |
|
|
8,723 |
|
Foreign currency loss |
(299 |
) |
|
(1,926 |
) |
|
(910 |
) |
|
(1,101 |
) |
Amortization and write-off of deferred finance charges |
(1,090 |
) |
|
(555 |
) |
|
(2,898 |
) |
|
(2,008 |
) |
Net income |
65,205 |
|
|
34,873 |
|
|
174,348 |
|
|
172,554 |
|
Less Preferred dividend |
2,746 |
|
|
2,000 |
|
|
11,064 |
|
|
8,978 |
|
Plus Mezzanine equity measurement |
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
Net income available to common shareholders |
62,459 |
|
|
32,873 |
|
|
163,555 |
|
|
163,576 |
|
Earnings per share basic and diluted |
0.51 |
|
|
0.28 |
|
|
1.44 |
|
|
1.36 |
|
Weighted average number of shares |
121,644,971 |
|
|
118,936,165 |
|
|
113,716,354 |
|
|
120,653,507 |
|
|
|
Twelve-Months Period EndedDecember
31, |
|
|
2021 |
|
|
2022 |
|
(In millions of
U.S. Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating
activities |
|
217.2 |
|
|
218.0 |
|
Net cash provided by/(used in)
investing activities |
|
8.6 |
|
|
(229.4 |
) |
Net cash used in financing
activities |
|
(225.9 |
) |
|
(40.1 |
) |
Net decrease in cash and cash
equivalents |
|
(0.1 |
) |
|
(51.5 |
) |
|
|
|
|
|
|
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
|
December 31, 2021 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
Cash and cash equivalents, time deposits, and restricted cash |
|
102,084 |
|
114,377 |
Other current assets |
|
22,032 |
|
31,344 |
Assets held for sale |
|
— |
|
11,980 |
Vessels, net |
|
864,391 |
|
1,001,120 |
Right-of-use asset |
|
31,938 |
|
— |
Advances for vessels |
|
56,484 |
|
76,280 |
Restricted cash non-current |
|
10,250 |
|
8,900 |
Other non-current assets |
|
7,141 |
|
1,917 |
Total assets |
|
1,094,320 |
|
1,245,918 |
LIABILITIES AND
EQUITY |
|
|
|
|
Current portion of long-term debt |
|
39,912 |
|
43,556 |
Liabilities directly associated with asset held for sale |
|
— |
|
16,930 |
Lease liability |
|
21,945 |
|
— |
Other current liabilities |
|
26,835 |
|
30,831 |
Long-term debt, net of current portion |
|
315,796 |
|
370,806 |
Other non-current liabilities |
|
10,592 |
|
11,879 |
Shareholders’ equity |
|
679,240 |
|
771,916 |
Total liabilities and equity |
|
1,094,320 |
|
1,245,918 |
|
|
|
|
|
TABLE 4 RECONCILIATION
OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS PER SHARE
|
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period EndedDecember
31, |
(In thousands of U.S. Dollars except for share and per share
data) |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
Adjusted Net
Income |
|
|
|
|
|
|
|
|
Net
Income |
|
65,205 |
|
|
34,873 |
|
|
174,348 |
|
|
172,554 |
|
Less Gain on sale of
assets |
|
(10,947 |
) |
|
— |
|
|
(11,579 |
) |
|
— |
|
Less Gain on derivatives |
|
(4,165 |
) |
|
(3,349 |
) |
|
(2,188 |
) |
|
(8,723 |
) |
Plus Foreign currency
loss |
|
299 |
|
|
1,926 |
|
|
910 |
|
|
1,101 |
|
Less Early redelivery
income |
|
— |
|
|
— |
|
|
(7,470 |
) |
|
— |
|
Plus Other operating
expenses |
|
— |
|
|
3,570 |
|
|
— |
|
|
3,570 |
|
Adjusted net
income |
|
50,392 |
|
|
37,020 |
|
|
154,021 |
|
|
168,502 |
|
EBITDA - Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net
Income |
|
65,205 |
|
|
34,873 |
|
|
174,348 |
|
|
172,554 |
|
Plus Net Interest expense |
|
2,887 |
|
|
5,380 |
|
|
14,650 |
|
|
16,355 |
|
Plus Depreciation |
|
13,211 |
|
|
13,037 |
|
|
52,364 |
|
|
49,518 |
|
Plus Amortization and
write-off of deferred finance charges |
|
1,090 |
|
|
555 |
|
|
2,898 |
|
|
2,008 |
|
EBITDA |
|
82,393 |
|
|
53,845 |
|
|
244,260 |
|
|
240,435 |
|
Less Gain on sale of
assets |
|
(10,947 |
) |
|
— |
|
|
(11,579 |
) |
|
— |
|
Less Early redelivery
income |
|
— |
|
|
— |
|
|
(7,470 |
) |
|
— |
|
Plus Other operating
expenses |
|
— |
|
|
3,570 |
|
|
— |
|
|
3,570 |
|
Less Gain on derivatives |
|
(4,165 |
) |
|
(3,349 |
) |
|
(2,188 |
) |
|
(8,723 |
) |
Plus Foreign currency
loss |
|
299 |
|
|
1,926 |
|
|
910 |
|
|
1,101 |
|
ADJUSTED
EBITDA |
|
67,580 |
|
|
55,992 |
|
|
223,933 |
|
|
236,383 |
|
Earnings per
share |
|
|
|
|
|
|
|
|
Net
Income |
|
65,205 |
|
|
34,873 |
|
|
174,348 |
|
|
172,554 |
|
Less Preferred dividend |
|
2,746 |
|
|
2,000 |
|
|
11,064 |
|
|
8,978 |
|
Plus Mezzanine equity
measurement |
|
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
Net income available
to common shareholders |
|
62,459 |
|
|
32,873 |
|
|
163,555 |
|
|
163,576 |
|
Weighted average number of
shares |
|
121,644,971 |
|
|
118,936,165 |
|
|
113,716,354 |
|
|
120,653,507 |
|
Earnings per share |
|
0.51 |
|
|
0.28 |
|
|
1.44 |
|
|
1.36 |
|
Adjusted Earnings per
share |
|
|
|
|
|
|
|
|
Adjusted net
income |
|
50,392 |
|
|
37,020 |
|
|
154,021 |
|
|
168,502 |
|
Less Preferred dividend |
|
2,746 |
|
|
2,000 |
|
|
11,064 |
|
|
8,978 |
|
Plus Mezzanine equity
measurement |
|
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
Adjusted Net income
available to common shareholders |
|
47,646 |
|
|
35,020 |
|
|
143,228 |
|
|
159,524 |
|
Weighted average number of
shares |
|
121,644,971 |
|
|
118,936,165 |
|
|
113,716,354 |
|
|
120,653,507 |
|
Adjusted Earnings per
share |
|
0.39 |
|
|
0.29 |
|
|
1.26 |
|
|
1.32 |
|
- EBITDA, Adjusted EBITDA, Adjusted Net income
and Adjusted earnings 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 on sale of assets, gain on derivatives, early redelivery
income, other operating expenses and loss on foreign currency.-
Adjusted Net income represents Net income before impairment and
gain on sale of assets, gain on derivatives, early redelivery
income, other operating expenses and loss on foreign currency.-
Adjusted earnings per share represents Adjusted Net income less
preferred dividend and mezzanine equity measurement divided by the
weighted average number of shares.- EBITDA, Adjusted EBITDA,
Adjusted Net income 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 and Adjusted earnings 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 sale
of assets, gain/(loss) on derivatives, early redelivery
income/(cost), other operating expenses and gain/(loss) on foreign
currency, items which may vary from year to year and for different
companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA,Adjusted Net income and Adjusted earnings
per share have limitations as analytical tools, and should not be
considered in isolation, or as a substitute for analysis of the
Company’s results as reported under US GAAP. While EBITDA and
Adjusted EBITDA, Adjusted Net income and Adjusted earnings 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 and Adjusted
earnings per share should not be construed as an inference that our
future results will be unaffected by the excluded items.
TABLE 5: FLEET DATA, AVERAGE DAILY
INDICATORS RECONCILIATION
|
Three-Months Period Ended December
31, |
|
Twelve-Months Period EndedDecember
31, |
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at period
end |
|
39 |
|
|
|
44 |
|
|
|
39 |
|
|
|
44 |
|
Average age of fleet (in
years) |
|
10.30 |
|
|
|
10.72 |
|
|
|
10.30 |
|
|
|
10.72 |
|
Ownership days(1) |
|
3,609 |
|
|
|
4,048 |
|
|
|
14,916 |
|
|
|
15,321 |
|
Available days(2) |
|
3,513 |
|
|
|
3,972 |
|
|
|
14,678 |
|
|
|
14,959 |
|
Average number of vessels in
the period(3) |
|
39.23 |
|
|
|
44.00 |
|
|
|
40.87 |
|
|
|
41.98 |
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
|
|
Time charter equivalent
rate(4) |
$ |
26,180 |
|
|
$ |
21,078 |
|
|
$ |
21,752 |
|
|
$ |
22,712 |
|
Daily vessel operating
expenses(5) |
$ |
5,149 |
|
|
$ |
5,323 |
|
|
$ |
4,830 |
|
|
$ |
5,235 |
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses(6) |
$ |
4,666 |
|
|
$ |
4,822 |
|
|
$ |
4,529 |
|
|
$ |
4,738 |
|
Daily general and
administrative expenses(7) |
$ |
1,517 |
|
|
$ |
1,437 |
|
|
$ |
1,508 |
|
|
$ |
1,423 |
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
|
|
|
Revenues |
$ |
96,442 |
|
|
$ |
90,108 |
|
|
$ |
343,475 |
|
|
$ |
364,050 |
|
Less commissions |
|
(4,001 |
) |
|
|
(3,451 |
) |
|
|
(14,444 |
) |
|
|
(14,332 |
) |
Less voyage expenses |
|
(469 |
) |
|
|
(2,935 |
) |
|
|
(9,753 |
) |
|
|
(9,969 |
) |
Time charter equivalent
revenue |
$ |
91,972 |
|
|
$ |
83,722 |
|
|
$ |
319,278 |
|
|
$ |
339,749 |
|
Available days(2) |
|
3,513 |
|
|
|
3,972 |
|
|
|
14,678 |
|
|
|
14,959 |
|
Time charter equivalent
rate(4) |
$ |
26,180 |
|
|
$ |
21,078 |
|
|
$ |
21,752 |
|
|
$ |
22,712 |
|
|
|
|
|
|
|
|
|
_____________
(1) Ownership days represent the aggregate
number of days in a period during which each vessel in our fleet
has been owned by us. (2) Available days represent the total number
of days in a period during which each vessel in our fleet was in
our possession, net of off-hire days associated with scheduled
maintenance, which includes major repairs, drydockings, vessel
upgrades or special or intermediate surveys. (3) Average number of
vessels in the period is calculated by dividing ownership days in
the period by the number of days in that period. (4) Time charter
equivalent rate, or TCE rate, represents our charter revenues less
commissions and voyage expenses during a period divided by the
number of available days during such period. TCE rate is a standard
shipping industry performance measure used primarily to compare
daily earnings generated by vessels on period time charters and
spot time charters with daily earnings generated by vessels on
voyage charters, because charter rates for vessels on voyage
charters are generally not expressed in per day amounts, while
charter rates for vessels on period time charters and spot time
charters generally are expressed in such amounts. We have only
rarely employed our vessels on voyage charters and, as a result,
generally our TCE rates approximate our time charter rates. (5)
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period. Vessel operating expenses include crewing, insurance,
lubricants, spare parts, provisions, stores, repairs, maintenance
including dry-docking, statutory and classification expenses and
other miscellaneous items. (6) Daily vessel operating expenses
excluding dry-docking and pre-delivery expenses are calculated by
dividing vessel operating expenses excluding dry-docking and
pre-delivery expenses for the relevant period by ownership days for
such period. Dry-docking expenses include costs of shipyard, paints
and agent expenses and pre-delivery expenses include initially
supplied spare parts, stores, provisions and other miscellaneous
items provided to a newbuild 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 10, 2023
Vessel Name |
|
Dwt |
|
YearBuilt 1 |
|
Country ofConstruction |
|
CharterType |
|
CharterRate
2 |
|
Commissions 3 |
|
Charter Period 4 |
CURRENT FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Period20 |
|
$10,950 + 50% *101% BPI 74 4TC |
|
5.00 |
% |
|
September 2022 |
August 2023 |
Maritsa |
|
76,000 |
|
2005 |
|
Japan |
|
Spot |
|
$ |
8,250 |
|
5.00 |
% |
|
January 2023 |
March 2023 |
Paraskevi
2 |
|
75,000 |
|
2011 |
|
Japan |
|
Period |
|
$ |
15,250 |
|
5.00 |
% |
|
September 2022 |
March 2023 |
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Period22 |
|
BPI 74 4TC * 103% |
|
3.75 |
% |
|
March 2022 |
February 2023 |
Zoe
11 |
|
75,000 |
|
2013 |
|
Japan |
|
Period23 |
|
BPI 74 4TC * 104.25% |
|
5.00 |
% |
|
September 2022 |
July 2023 |
Koulitsa
2 |
|
78,100 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
11,750 |
|
3.75 |
% |
|
January 2023 |
March 2023 |
|
|
|
|
Period31 |
|
BPI 74 4TC * 114% |
|
3.75 |
% |
|
March 2023 |
November 2023 |
Kypros
Land 11 |
|
77,100 |
|
2014 |
|
Japan |
|
Period13 |
|
$ |
13,800 |
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros
Sea |
|
77,100 |
|
2014 |
|
Japan |
|
Period13 |
|
$ |
13,800 |
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
September 2022 |
|
|
|
|
|
$ |
24,123 |
|
3.75 |
% |
|
September 2022 |
December 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
December 2022 |
July 2025 |
Kypros
Bravery |
|
78,000 |
|
2015 |
|
Japan |
|
Period12 |
|
$ |
11,750 |
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros
Sky 9 |
|
77,100 |
|
2015 |
|
Japan |
|
Period12 |
|
$ |
11,750 |
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros
Loyalty |
|
78,000 |
|
2015 |
|
Japan |
|
Period12 |
|
$ |
11,750 |
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
September 2022 |
|
|
|
|
|
$ |
23,153 |
|
3.75 |
% |
|
September 2022 |
December 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
December 2022 |
July 2025 |
Kypros Spirit 9 |
|
78,000 |
|
2016 |
|
Japan |
|
Period13 |
|
$ |
13,800 |
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
July 2025 |
Kamsarmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pedhoulas Merchant |
|
82,300 |
|
2006 |
|
Japan |
|
Period |
|
$ |
25,900 |
|
3.75 |
% |
|
March 2022 |
March 2023 |
Pedhoulas
Leader |
|
82,300 |
|
2007 |
|
Japan |
|
Period33 |
|
BPI 82 5TC * 98% |
|
3.75 |
% |
|
January 2023 |
October 2023 |
Pedhoulas
Commander |
|
83,700 |
|
2008 |
|
Japan |
|
Period32 |
|
$7,000 + 50% * BPI 82 5TC |
|
5.00 |
% |
|
December 2022 |
June 2023 |
Pedhoulas
Cherry |
|
82,000 |
|
2015 |
|
China |
|
Period18 |
|
$ |
24,000 |
|
5.00 |
% |
|
July 2022 |
August 2023 |
Pedhoulas
Rose |
|
82,000 |
|
2017 |
|
China |
|
Period18,25 |
|
$10,500 + 50% *104% BPI 82 5TC |
|
5.00 |
% |
|
November 2022 |
May 2023 |
Pedhoulas
Cedrus14 |
|
81,800 |
|
2018 |
|
Japan |
|
Period |
|
$ |
21,000 |
|
5.00 |
% |
|
August 2022 |
March 2023 |
Vassos8 |
|
82,000 |
|
2022 |
|
Japan |
|
Period |
|
$ |
21,500 |
|
5.00 |
% |
|
October 2022 |
April 2023 |
Post-Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marina |
|
87,000 |
|
2006 |
|
Japan |
|
Spot 18 |
|
$ |
10,000 |
|
5.00 |
% |
|
December 2022 |
February 2023 |
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Spot18 |
|
$ |
7,000 |
|
3.75 |
% |
|
February 2023 |
March 2023 |
Sophia |
|
87,000 |
|
2007 |
|
Japan |
|
Spot18 |
|
$ |
13,900 |
|
5.00 |
% |
|
January 2023 |
March 2023 |
Eleni |
|
87,000 |
|
2008 |
|
Japan |
|
Spot 18 |
|
$ |
7,000 |
|
5.00 |
% |
|
January 2023 |
March 2023 |
Martine |
|
87,000 |
|
2009 |
|
Japan |
|
Spot18 |
|
$ |
27,000 |
|
5.00 |
% |
|
February 2023 |
April 2023 |
Andreas
K |
|
92,000 |
|
2009 |
|
South Korea |
|
|
|
|
|
|
|
|
|
Panayiota
K 10 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot35,18 |
|
$ |
12,000 |
|
5.00 |
% |
|
February 2023 |
March 2023 |
Agios
Spyridonas 10 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot18 |
|
$ |
29,000 |
|
5.00 |
% |
|
January 2023 |
March 2023 |
Venus
Heritage 11 |
|
95,800 |
|
2010 |
|
Japan |
|
Spot18 |
|
$ |
7,500 |
|
5.00 |
% |
|
January 2023 |
February 2023 |
Venus
History 11 |
|
95,800 |
|
2011 |
|
Japan |
|
Spot 18 |
|
$ |
13,000 |
|
5.00 |
% |
|
December 2022 |
February 2023 |
Venus
Horizon |
|
95,800 |
|
2012 |
|
Japan |
|
Period18 |
|
$ |
27,950 |
|
5.00 |
% |
|
May 2022 |
March 2023 |
Venus
Harmony |
|
95,700 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
10,750 |
|
5.00 |
% |
|
January 2023 |
February 2023 |
Troodos
Sun 16 |
|
85,000 |
|
2016 |
|
Japan |
|
Period 18,19 |
|
BPI 82 5TC * 114% |
|
5.00 |
% |
|
June 2021 |
April 2023 |
Troodos
Air |
|
85,000 |
|
2016 |
|
Japan |
|
Period 18 |
|
$ |
28,000 |
|
5.00 |
% |
|
May 2022 |
June 2023 |
Troodos
Oak |
|
85,000 |
|
2020 |
|
Japan |
|
Period |
|
$ |
15,500 |
|
3.75 |
% |
|
December 2022 |
August 2023 |
Climate
Respect |
|
87,000 |
|
2022 |
|
Japan |
|
Period |
|
$ |
18,500 |
|
5.00 |
% |
|
December 2022 |
October 2023 |
Climate Ethics |
|
87,000 |
|
2023 |
|
Japan |
|
Period |
|
$ |
18,500 |
|
5.00 |
% |
|
January 2023 |
November 2023 |
Capesize |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount
Troodos |
|
181,400 |
|
2009 |
|
Japan |
|
Period17 |
|
$ |
34,500 |
|
3.75 |
% |
|
April 2022 |
March 2023 |
|
|
|
|
Period28,18 |
|
BCI 5TC * 106% |
|
3.75 |
% |
|
March 2023 |
January 2024 |
Kanaris |
|
178,100 |
|
2010 |
|
China |
|
Period 5 |
|
$ |
25,928 |
|
2.50 |
% |
|
September 2011 |
September 2031 |
Pelopidas |
|
176,000 |
|
2011 |
|
China |
|
Period 27,18 |
|
$ |
25,250 |
|
3.75 |
% |
|
June 2022 |
May 2025 |
Aghia
Sofia24 |
|
176,000 |
|
2012 |
|
China |
|
Spot26 |
|
BCI 5TC * 112% |
|
5.00 |
% |
|
December 2022 |
March 2023 |
|
|
|
|
Period34,18 |
|
BCI 5TC * 123% |
|
5.00 |
% |
|
May 2023 |
April 2024 |
Lake
Despina 7 |
|
181,400 |
|
2014 |
|
Japan |
|
Period 6 |
|
$ |
25,200 |
|
5.00 |
% |
|
February 2022 |
February 2025 |
Stelios
Y |
|
181,400 |
|
2012 |
|
Japan |
|
Period 15 |
|
$ |
24,400 |
|
3.75 |
% |
|
November 2021 |
November 2024 |
|
|
|
|
Period29 |
|
BCI 5TC * 117% |
|
3.75 |
% |
|
November 2024 |
February 2027 |
Maria |
|
181,300 |
|
2014 |
|
Japan |
|
Period30,18 |
|
BCI 5TC * 130% |
|
3.75 |
% |
|
January 2023 |
January 2024 |
Michalis
H |
|
180,400 |
|
2012 |
|
China |
|
Period21 |
|
$ |
23,000 |
|
3.75 |
% |
|
September 2022 |
July 2025 |
TOTAL |
|
4,455,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Orderbook |
TBN |
|
87,000 |
|
Q2 2023 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,000 |
|
Q4 2023 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,000 |
|
Q4 2023 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,000 |
|
Q4 2023 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,000 |
|
Q1 2024 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,000 |
|
Q1 2024 |
|
Japan |
|
|
|
|
|
|
|
|
|
TBN |
|
82,500 |
|
Q3 2024 |
|
China |
|
|
|
|
|
|
|
|
|
TBN |
|
82,500 |
|
Q1 2025 |
|
China |
|
|
|
|
|
|
|
|
|
TOTAL |
|
662,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 10, 2023, 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) Charterer of MV Kanaris agreed to
reimburse us for part of the cost of the scrubbers and BWTS
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.(6) A period time charter for a duration of
3 years at a gross daily charter rate of $22,500 plus an one-off
$3.0 million payment upon charter commencement. The charter
agreement also grants the charterer an option to extend the period
time charter for an additional year at a gross daily charter rate
of $27,500.(7) 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.(8) MV Vassos was sold and leased back
in May 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.(9) MV Kypros Sky and MV Kypros
Spirit were sold and leased back in December 2019 on a bareboat
charter basis for a period of eight years, with purchase options in
favor of the Company commencing three years following the
commencement of the bareboat charter period and a purchase
obligation at the end of the bareboat charter period, all at
predetermined purchase prices.(10) MV Panayiota K and MV Agios
Spyridonas were sold and leased back in January 2020 on a bareboat
charter basis for a period of six years, with purchase options in
favor of the Company commencing three years following the
commencement of the bareboat charter period and a purchase
obligation at the end of the bareboat charter period, all at
predetermined purchase prices. In January 2023 the Company
exercised the purchase options in both vessels and the ownership of
MV Panayiota K and MV Agios Spyridonas was transferred back to the
Company.(11) MV Zoe, MV Kypros Land, MV Venus Heritage and MV Venus
History were sold and leased back in November 2019, on a bareboat
charter basis, one for a period of eight years and three for a
period of seven and a half years, with a purchase option in favor
of the Company five years and nine months following the
commencement of the bareboat charter period at a predetermined
purchase price.(12) A period time charter of five 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.(13) A period time charter of five 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.(14) 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.(15) A period
time charter for a duration of 3 years at a gross daily charter
rate of $24,400. The charter agreement also grants the charterer an
option to extend the period time charter for an additional year at
a gross daily charter rate of $26,500.(16) MV Troodos Sun was sold
and leased back in September 2021 on a bareboat charter basis for a
period of ten 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.(17) 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.(18) 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.(19) A period time charter of 22 to 26 months at a daily
gross charter rate linked to the BPI-82 5TC times 114%. (20) A
period time charter of 11 to 13 months at a daily gross charter
rate of $10,950 plus additional gross daily charter rate linked to
the 50% of the BPI-74 4TC times 101%.(21) A period time charter for
a minimum duration of three years at a gross daily charter rate of
$23,000. The charter agreement also grants the charterer an option
to extend the period time charter for an additional year at the
same gross daily charter rate.(22) A period time charter of 11 to
14 months at a daily gross charter rate linked to the BPI-74 4TC
times 103%.(23) A period time charter of 10 to 13 months at a daily
gross charter rate linked to the BPI-74 4TC times 104.25%.(24) MV
Aghia Sofia was sold and leased back in September 2022 on a
bareboat charter basis, for a period of 5 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.(25) A period time charter of 6 to 8
months at a daily gross charter rate of $10,500 plus additional
gross daily charter rate linked to the 50% of the BPI-82 5TC times
104% .(26) A spot time charter at a daily gross charter rate linked
to the BCI 5TC times 112%.(27) A period time charter for a duration
of three years at a gross daily charter rate of $25,250. The
charter agreement also grants the charterer an option to extend the
period time charter for an additional year at the same gross daily
charter rate.(28) A period time charter for a duration of 11 to 14
months at a gross daily charter rate linked to the BCI 5TC times
106%.(29) A period time charter for a duration of two and a half
years at a gross daily charter rate linked to the BCI 5TC times
117%. The charter agreement also grants the charterer an option to
extend the period time charter for an additional three years at a
gross daily charter rate of $23,000.(30) A period time charter for
a duration of 12 to 18 months at a gross daily charter rate linked
to the BCI 5TC times 130%.(31) A period time charter of 8 to 10
months at a daily gross charter rate linked to the BPI-74 4TC times
114%.(32) A period time charter of 7 to 10 months at a daily gross
charter rate of $7,000 plus additional gross daily charter rate
linked to the 50% of the BPI-82 5TC.(33) A period time charter of 9
to 12 months at a daily gross charter rate linked to the BPI-82 5TC
times 98%.(34) A period time charter for a duration of 11 to 14
months at a gross daily charter rate linked to the BCI 5TC times
123%.(35) A spot time charter at a daily gross charter rate of
$12,000 plus ballast bonus of $0.4 million upon charter
commencement.
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, changes in TCE
rates, changes in fuel prices, 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
1 Adjusted Net income is a non-GAAP measure.
Adjusted Net income represents Net income before impairment and
loss on vessels held for sale, gain/(loss) on sale of assets,
gain/(loss) on derivatives, early redelivery income/(cost), other
operating expense and gain/(loss) on foreign currency. See Table
4.2 EBITDA is a non-GAAP measure and represents Net income plus net
interest expense, tax, depreciation and amortization. See Table 4.
Adjusted EBITDA is a non-GAAP measure and represents EBITDA before
gain/(loss) on derivatives, early redelivery income/(cost), other
operating expenses and gain/(loss) on foreign currency. See Table
4.3 Earnings per share ("EPS") and Adjusted Earnings 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 Undrawn
borrowing capacity under revolving reducing credit facilities.10
Secured financing commitments for loan and sale and lease back
financings.11 Unsecured debt represents the five year tenor
unsecured non-amortizing bond, net of deferred financing costs,
maturing in February 2027.12 Secured debt represents Long-term debt
plus current portion of long-term debt, net of deferred financing
costs.13 Total Debt represents Unsecured debt plus Secured debt.14
Net debt per vessel represents Total Debt less Total Cash divided
by the number of vessels at periods end.15 Safety Management
Overseas S.A., Safe Bulkers Management Monaco Inc., and Safe
Bulkers Management Limited, each of which is a referred to herein
as "our Manager" and collectively "our Managers".16 Consolidated
leverage is a non-GAAP measure and represents total consolidated
liabilities divided by total consolidated assets. Total
consolidated assets are based on the market value of all vessels,
as provided by independent broker valuators on quarter-end, owned
or leased on a finance lease taking into account their employment,
and the book value of all other assets. This measure assists our
management and investors by increasing the comparability of our
leverage from period to period.17 The fleet scrap value is
calculated on the basis of fleet aggregate light weight tons
("lwt") and scrap rate of $515/lwt ton (Clarksons data), on
December 31, 2022.18 See table 5
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