Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three and nine month
periods ended September 30, 2022. The Board of Directors of the
Company also declared a cash dividend of $0.05 per share of
outstanding common stock.
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Financial highlights |
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|
In million U.S. Dollars except per share data |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Nine Months 2022 |
Nine Months 2021 |
|
Net revenues |
93.7 |
91.6 |
77.7 |
92.4 |
92.5 |
263.1 |
236.6 |
|
Net income |
51.0 |
50.3 |
36.4 |
65.2 |
55.4 |
137.7 |
109.1 |
|
Adjusted net income1 |
48.8 |
50.4 |
32.3 |
50.4 |
50.7 |
131.5 |
103.6 |
|
EBITDA2 |
69.1 |
66.5 |
51.0 |
82.4 |
72.4 |
186.6 |
161.9 |
|
Adjusted EBITDA2 |
66.9 |
66.5 |
46.9 |
67.6 |
67.7 |
180.4 |
156.4 |
|
Earnings per share basic and diluted3 |
0.41 |
0.40 |
0.28 |
0.51 |
0.44 |
1.08 |
0.91 |
|
Adjusted earnings per share basic and diluted3 |
0.39 |
0.40 |
0.24 |
0.39 |
0.40 |
1.03 |
0.86 |
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Average daily results in U.S. Dollars |
|
|
|
|
|
|
|
Time charter equivalent rate4 |
23,403 |
25,050 |
21,352 |
26,180 |
24,427 |
23,303 |
20,359 |
|
Daily vessel operating expenses5 |
4,949 |
4,981 |
5,722 |
5,149 |
4,608 |
5,204 |
4,729 |
|
Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses6 |
4,571 |
4,648 |
4,923 |
4,666 |
4,570 |
4,708 |
4,486 |
|
Daily general and administrative expenses7 |
1,360 |
1,382 |
1,520 |
1,517 |
1,590 |
1,418 |
1,506 |
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Selected financial highlights |
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|
|
In million U.S. Dollars |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
|
Total cash8 |
121.7 |
139.4 |
166.3 |
112.3 |
108.6 |
|
Revolving credit facilities9 |
144.3 |
135.4 |
146.6 |
137.7 |
88.9 |
|
Financing commitments10 |
— |
20.0 |
46.2 |
46.2 |
46.2 |
|
Unsecured debt11 |
95.4 |
101.8 |
108.3 |
— |
— |
|
Secured debt12 |
344.2 |
322.9 |
293.3 |
355.7 |
413.8 |
|
Total debt13 |
439.6 |
424.7 |
401.6 |
355.7 |
413.8 |
|
Number of vessels at period end |
44 |
42 |
40 |
39 |
39 |
|
Average age of fleet |
10.47 |
10.47 |
10.48 |
10.30 |
10.30 |
|
Net debt per vessel14 |
7.2 |
6.8 |
5.9 |
6.2 |
7.8 |
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: "During the third quarter of 2022, we had a satisfactory
financial performance of $0.41 earnings per share. We maintained a
strong balance sheet, leverage comparable to our fleet scrap value
and liquidity and capital resources providing flexibility in a
global environment that presents not only challenges but also
opportunities."
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, 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 third quarter of 2022, due to crew
repatriation and related costs of about $0.8 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 otherwise 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.
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 November 4, 2022,
56% of the program, or 2,807,418 shares of common stock, had been
repurchased and cancelled under the repurchase program.
Fleet update
As of November 4, 2022, we had a fleet of
44 vessels, consisting of 12 Panamax, 8 Kamsarmax, 16 Post-Panamax
and 8 Capesize vessels with an aggregate capacity of 4.5 million
dwt and average age of 10.6 years.
Orderbook As of November 4, 2022, we had an
orderbook of 9 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 two are
Post-Panamax class vessels, with scheduled deliveries five in 2023,
three in 2024 and one in the first quarter of 2025.
Newbuild deliveries The Company has already
taken delivery of two IMO GHG Phase 3 - NOx Tier III newbuilds, in
May 2022, the MV Vassos, a Japanese Kamsarmax class vessel and in
July 2022, the MV Climate Respect, a Japanese Post-Panamax class
vessel.
Second-hand acquisitions In August 2022, the
Company took delivery of MV Aghia Sofia, a 2012-built, Chinese,
dry-bulk, 176,000 dwt, Capesize class vessel. The vessel was
subsequently sold to a third party and leased back on a bareboat
charter basis, for a period of 5 years with a purchase obligation
at the end of the 5th year and purchase options after the third
year of the bareboat charter, at predetermined purchase prices. In
view of the repurchase obligation, the Company has assessed that
the transaction be recorded as financing transaction.
Vessel sale In 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
$15.84 million with a forward delivery date within December
2022.
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 performed by our Managers15 without
management commission. The average total chartering commission
including 3rd party brokers was approximately 4% during the third
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 November 4, 2022, we
employed, or had contracted to employ, 16 vessels in the spot time
charter market (with up to three months original duration) and 28
vessels in the period time charter market (with original duration
in excess of three months), three of which have original duration
of more than one year, and 11 have original duration of more than
two years. As of November 4, 2022, the
average remaining charter duration across our fleet was 1.1
year.
As of November 4, 2022, we had contracted
revenue of approximately $313.7 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 November 4, 2022, seven of our
eight Capesize class vessels have been chartered in period time
charters, six 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
$22,738, resulting to a contracted revenue of approximately $184.7
million net of commissions, excluding the additional compensation
related to the use of Scrubbers.
During the third quarter of 2022, we operated
43.25 vessels on average earning a TCE of $23,403 compared to 40.51
vessels earning a TCE of $24,427 during the same period in
2021.
As of November 4, 2022, our contracted
fleet employment profile is presented in Table 1.
Table 1: Contracted employment profile of
fleet ownership days as of November 4,
2022
|
|
2022 (remaining) |
81% |
|
| |
2022 (full year) |
97% |
|
| |
2023 |
37% |
|
| |
2024 |
25% |
|
The detailed employment profile of our fleet is
presented in Table 6.
Debt
As. of September 30, 2022, our consolidated debt
before deferred financing costs was $447.9 million, including the
€100 million - 2.95% fixed coupon, non-amortizing, unsecured bond
issued in February 2022 and maturing in 2027. As of September 30,
2022, our consolidated leverage16 was about 35% and our weighted
average interest rate of our outstanding consolidated debt was
2.91% during the first nine months of 2022. During the first nine
months of 2022, we made scheduled principal payments of $22.9
million and voluntary debt prepayments of $134.1 million. The
repayment schedule of our debt as of September 30, 2022 is
presented in Table 2 below:
Table 2: Loan repayment Schedule as
of September 30, 2022 (in USD
million)
|
Ending December 31, |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029-2032 |
Total |
|
Secured debt |
9.6 |
28.7 |
32.3 |
84.8 |
73.8 |
49.6 |
21.7 |
49.4 |
349.9 |
|
Unsecured debt |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
98.0 |
0.0 |
0.0 |
98.0 |
|
Total debt |
9.6 |
28.7 |
32.3 |
84.8 |
73.8 |
147.6 |
21.7 |
49.4 |
447.9 |
|
Fleet scrap value17 |
|
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|
|
|
|
|
|
390.3 |
Liquidity and capital resources, capital
expenditure requirements and debt as of September
30, 2022
We had $121.7 million in cash, cash equivalents,
bank time deposits and restricted cash and $144.3 million in
undrawn borrowing capacity available under existing revolving
reducing credit facilities. We had paid $61.0 million for our
capital expenditure requirements in relation to our orderbook.
Furthermore, we had contracted revenue of approximately $327.2
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 nine 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 $254.3 million in aggregate,
consisting of $249.9 million in relation to the nine newbuilds on
order, and $4.4 million in relation to five Scrubbers and two
ballast water treatment systems ("BWTS") retrofits. The schedule of
payments of the remaining capital expenditure requirements is $5.7
million in 2022, $157.9 million in 2023, $74.3 million in 2024 and
$16.4 million in 2025.
We had $447.9 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
November 4, 2022
We had $135.9 million in cash, cash equivalents,
bank time deposits, restricted cash, $144.3 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 $61.0 million for our capital expenditure
requirements in relation to our orderbook. Furthermore, we had
contracted revenue of approximately $313.7 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, had placed orders
for nine newbuilds and had contracted to sell one vessel. The
remaining capital expenditure requirements were $253.4 million in
aggregate, consisting of $249.9 million in relation to the nine
newbuilds on order and $3.5 million in relation to five Scrubbers
and two BWTS retrofits. The schedule of payments of the remaining
capital expenditure requirements is $4.8 million in 2022, $157.9
million in 2023, $74.3 million in 2024 and $16.4 million in
2025.
We had $446.7 million of outstanding
consolidated debt, including the unsecured bond issued in February
2022, before deferred financing costs.
Environmental Social Governance and
Responsibility - Environmental investments -
Dry-dockings
The Company continues the retrofit of its
vessels with BWTS having installed such systems on 42 out of 44
existing vessels as of November 4, 2022. Furthermore, the
Company has installed Scrubbers on 18 out of 44 existing vessels
and has agreed to five additional Scrubber installations, for five
of its Capesize class vessels.
Furthermore, the Company is pursuing a vessel
environmental upgrade program during dry-dockings, in the amount of
about $3.3 million for 2022 and $7.6 million for 2023, which
involves upgrades including application of low friction paints and
installation of energy saving devices. During the first nine months
of 2022, we have completed the environmental upgrades on the MV
Efrossini, MV Pedhoulas Rose, MV Venus Horizon and MV Pelopidas and
we expect to implement such upgrades during the remainder of this
year on the MV Sophia and MV Maria.
The Company has scheduled two dry-dockings for
the fourth quarter of 2022 with an estimated aggregate number of 70
down-time days and six dry-dockings for the first quarter of 2023
with an estimated aggregate number of 200 down-time days.
Dividend Policy
On November 9, 2022, 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 December 15, 2022 to
the shareholders of record of the Company's common stock at the
closing of trading on November 28, 2022. As of November 4,
2022, the Company had 118,868,317 shares of common stock issued and
outstanding.
In July 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 September 1, 2022 to shareholders
of record of the Company's common stock at the at the close of
trading on August 22, 2022.
In October 2022, 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 respective
shareholders of record as of October 21, 2022.
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 Details:
On Thursday, November 10, 2022, at 10:00
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 13734173. 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
Third Quarter
2022 Results
During the third quarter of 2022, we operated in
a gradually weakening charter market environment compared to the
previous quarter, with increased revenues due to past contracts and
earnings from Scrubber fitted vessels and higher interest expenses
due to increasing interest rates. During the third quarter of 2022,
we operated 43.25 vessels on average earning a TCE of $23,403
compared to 40.51 vessels earning a TCE of $24,427 during the same
period in 2021. The net income for the third quarter of 2022
reached $51.0 million compared to net income of $55.4 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 increased by 1% to
$93.7 million for the third quarter of 2022, compared to $92.5
million for the same period in 2021, mainly due to the additional
revenues earned by our Scrubber fitted vessels.
Vessel operating expenses: Vessel operating
expenses increased by 15% to $19.7 million for the third quarter of
2022 compared to $17.2 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 $1.1 million related to one completed drydocking
during the third quarter of 2022, compared to zero dry docking
expense for the same period of 2021, (ii) spare parts decreased to
$1.5 million for the third quarter of 2022, compared to $1.8
million for the same period in 2021, (iii) crew wages increased to
$8.6 million for the third quarter of 2022 compared to $7.7 million
for the same period in 2021 mainly due to the increased average
number of vessels to 43.25 operated during the third quarter of
2022 from 40.51 during the same period in 2021, (iv) crew
repatriation and related costs decreased to $1.2 million for the
third quarter of 2022 compared to $1.9 million for the same period
in 2021, as a result of gradual easing of travelling restrictions,
(v) stores and provisions expenses increased to $2.3 million for
the third quarter of 2022, compared to $1.6 million for the same
period in 2021 mainly as a result of the increased number of
vessels and the initial supply of the newbuild vessel delivered
during the third quarter of 2022 (vi) insurance cost increased to
$1.3 million for the third quarter of 2022 compared to $0.8 million
for the same period in 2021 and (vii) lubricants cost increased to
$1.3 million for the third quarter of 2022, compared to $1.0
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 and pre-delivery costs of $1.5 million and
$0.2 million for the third quarter of 2022 and 2021, respectively,
vessel operating expenses increased by 7% to $18.2 million during
the third quarter of 2022 in comparison to $17.0 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 increased by
$0.1 million, or 1% to $12.9 million for the third quarter of 2022,
compared to $12.8 million for the same period in 2021, as a result
of the increased number of vessels during the third quarter of 2022
partially set off by 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. The basic and
diluted net earnings per share for the three months ended September
30, 2022 would have been $0.39 per share and $0.39 per share,
respectively, if there was no change in the estimated scrap value,
representing a $0.02 and $0.02 change to the basic and diluted net
earnings per share, respectively.
Interest expense: Interest expense increased to
$4.9 million in the third quarter of 2022 compared to $3.5 million
for the same period in 2021, as a result of the increased USD rates
environment and of the total outstanding indebtedness during the
third quarter of 2022.
Gain on derivatives: Gain on derivatives
amounted to $1.4 million in the third quarter of 2022 compared to a
gain of $1.2 million for the same period in 2021, mainly as a
result of increased gains on freight forward agreements.
Daily vessel operating expenses: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, increased by
7% to $4,949 for the third quarter of 2022 compared to $4,608 for
the same period in 2021. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses remained stable to $4,571 for
the third quarter of 2022 compared to $4,570 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 administrations
expenses, decreased by 14% to $1,360 for the third quarter of 2022,
compared to $1,590 for the same period in 2021, as a result of the
weakening of the Euro / U.S. Dollar exchange rate during the third
quarter of 2022.
Balance sheet
Right-of-use asset/Lease Liability: As of
September 30, 2022, 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 $30.8 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 $1.3 million, and as (b) Current Lease
liabilities of $18.4 million, representing the outstanding balance
of the present value of the lease payments of the above mentioned
12-month bareboat charter.
Assets held for sale/Liabilities directly
associated with assets held for sale: As of September 30, 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 $11.1 million, which represents the net book value of
the vessel and its inventories, and (b) liabilities directly
associated with assets held for sale of $5.6 million, representing
the outstanding balance of the credit facility relating to the
vessel Pedhoulas Trader, net of deferred finance charges, and the
20% deposit on the sale price collected upon signing the agreement
for the sale of MV Pedhoulas Trader.
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 EndedSeptember 30, |
|
Nine-Months
Period EndedSeptember 30, |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Revenues |
96,847 |
|
|
97,377 |
|
|
247,032 |
|
|
273,942 |
|
|
Commissions |
(4,353 |
) |
|
(3,663 |
) |
|
(10,442 |
) |
|
(10,881 |
) |
|
Net revenues |
92,494 |
|
|
93,714 |
|
|
236,590 |
|
|
263,061 |
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Voyage expenses |
(1,478 |
) |
|
(1,576 |
) |
|
(9,284 |
) |
|
(7,034 |
) |
|
Vessel operating expenses |
(17,173 |
) |
|
(19,692 |
) |
|
(53,467 |
) |
|
(58,663 |
) |
|
Depreciation |
(12,823 |
) |
|
(12,947 |
) |
|
(39,153 |
) |
|
(36,481 |
) |
|
General and administrative expenses |
(5,927 |
) |
|
(5,413 |
) |
|
(17,024 |
) |
|
(15,984 |
) |
|
Gain on sale of assets |
4,025 |
|
|
— |
|
|
632 |
|
|
— |
|
|
Early redelivery (cost)/income |
(85 |
) |
|
— |
|
|
7,470 |
|
|
— |
|
|
Operating income |
59,033 |
|
|
54,086 |
|
|
125,764 |
|
|
144,899 |
|
|
OTHER (EXPENSE) / INCOME: |
|
|
|
|
|
|
|
|
Interest expense |
(3,512 |
) |
|
(4,873 |
) |
|
(11,826 |
) |
|
(11,271 |
) |
|
Other finance cost |
(238 |
) |
|
(164 |
) |
|
(462 |
) |
|
(989 |
) |
|
Interest income |
11 |
|
|
237 |
|
|
63 |
|
|
296 |
|
|
Gain/(loss) on derivatives |
1,185 |
|
|
1,416 |
|
|
(1,977 |
) |
|
5,374 |
|
|
Foreign currency (loss)/gain |
(436 |
) |
|
801 |
|
|
(611 |
) |
|
825 |
|
|
Amortization and write-off of deferred finance charges |
(664 |
) |
|
(516 |
) |
|
(1,808 |
) |
|
(1,453 |
) |
|
Net income |
55,379 |
|
|
50,987 |
|
|
109,143 |
|
|
137,681 |
|
|
Less Preferred dividend |
2,746 |
|
|
2,000 |
|
|
8,318 |
|
|
6,978 |
|
|
Plus Mezzanine equity measurement |
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
|
Net income available to common shareholders |
52,633 |
|
|
48,987 |
|
|
101,096 |
|
|
130,703 |
|
|
Earnings per share basic and diluted |
0.44 |
|
|
0.41 |
|
|
0.91 |
|
|
1.08 |
|
|
Weighted average number of shares |
119,891,929 |
|
|
120,431,898 |
|
|
111,044,439 |
|
|
121,232,245 |
|
| |
|
Nine-Months
Period EndedSeptember 30, |
|
|
|
2021 |
|
|
2022 |
|
| (In
millions of U.S. Dollars) |
|
|
|
|
| CASH
FLOW DATA |
|
|
|
|
| Net cash
provided by operating activities |
|
154.0 |
|
|
161.9 |
|
| Net cash
used in investing activities |
|
(3.8 |
) |
|
(243.0 |
) |
| Net cash
(used in)/provided by financing activities |
|
(154.5 |
) |
|
23.8 |
|
| Net decrease
in cash and cash equivalents |
|
(4.3 |
) |
|
(57.3 |
) |
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (In thousands of U.S.
Dollars)
|
|
|
December 31, 2021 |
|
September 30, 2022 |
|
ASSETS |
|
|
|
|
|
Cash and cash equivalents, time deposits, and restricted cash |
|
102,084 |
|
111,188 |
|
Other current assets |
|
22,032 |
|
39,566 |
|
Assets held for sale |
|
— |
|
11,146 |
|
Vessels, net |
|
864,391 |
|
981,978 |
|
Right-of-use asset |
|
31,938 |
|
30,828 |
|
Advances for vessels |
|
56,484 |
|
64,643 |
|
Restricted cash non-current |
|
10,250 |
|
10,500 |
|
Other non-current assets |
|
7,141 |
|
305 |
|
Total assets |
|
1,094,320 |
|
1,250,154 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current portion of long-term debt |
|
39,912 |
|
26,378 |
|
Liabilities directly associated with asset held for sale |
|
— |
|
5,585 |
|
Lease liability |
|
21,945 |
|
18,388 |
|
Other current liabilities |
|
26,835 |
|
28,113 |
|
Long-term debt, net of current portion |
|
315,796 |
|
410,832 |
|
Other non-current liabilities |
|
10,592 |
|
13,894 |
|
Shareholders’ equity |
|
679,240 |
|
746,964 |
|
Total liabilities and equity |
|
1,094,320 |
|
1,250,154 |
TABLE 4 RECONCILIATION
OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS PER SHARE
| |
|
Three-Months
Period EndedSeptember 30, |
|
Nine-Months
Period EndedSeptember 30, |
|
(In thousands of U.S. Dollars except for share and per share
data) |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
Adjusted Net Income |
|
|
|
|
|
|
|
|
| Net
Income |
|
55,379 |
|
|
50,987 |
|
|
109,143 |
|
|
137,681 |
|
| Less Gain on
sale of assets |
|
(4,025 |
) |
|
— |
|
|
(632 |
) |
|
— |
|
| Less
(Gain)/loss on derivatives |
|
(1,185 |
) |
|
(1,416 |
) |
|
1,977 |
|
|
(5,374 |
) |
| Plus Foreign
currency loss/(gain) |
|
436 |
|
|
(801 |
) |
|
611 |
|
|
(825 |
) |
| Plus Early
redelivery cost/(income) |
|
85 |
|
|
— |
|
|
(7,470 |
) |
|
— |
|
|
Adjusted net income |
|
50,690 |
|
|
48,770 |
|
|
103,629 |
|
|
131,482 |
|
|
EBITDA - Adjusted EBITDA |
|
|
|
|
|
|
|
|
| Net
Income |
|
55,379 |
|
|
50,987 |
|
|
109,143 |
|
|
137,681 |
|
| Plus Net
Interest expense |
|
3,501 |
|
|
4,636 |
|
|
11,763 |
|
|
10,975 |
|
| Plus
Depreciation |
|
12,823 |
|
|
12,947 |
|
|
39,153 |
|
|
36,481 |
|
| Plus
Amortization and write-off of deferred finance charges |
|
664 |
|
|
516 |
|
|
1,808 |
|
|
1,453 |
|
|
EBITDA |
|
72,367 |
|
|
69,086 |
|
|
161,867 |
|
|
186,590 |
|
| Less Gain on
sale of assets |
|
(4,025 |
) |
|
— |
|
|
(632 |
) |
|
— |
|
| Plus Early
redelivery cost/(income) |
|
85 |
|
|
— |
|
|
(7,470 |
) |
|
— |
|
| Less
(Gain)/loss on derivatives |
|
(1,185 |
) |
|
(1,416 |
) |
|
1,977 |
|
|
(5,374 |
) |
| Plus Foreign
currency loss/(gain) |
|
436 |
|
|
(801 |
) |
|
611 |
|
|
(825 |
) |
|
ADJUSTED EBITDA |
|
67,678 |
|
|
66,869 |
|
|
156,353 |
|
|
180,391 |
|
|
Earnings per share |
|
|
|
|
|
|
|
|
| Net
Income |
|
55,379 |
|
|
50,987 |
|
|
109,143 |
|
|
137,681 |
|
| Less
Preferred dividend |
|
2,746 |
|
|
2,000 |
|
|
8,318 |
|
|
6,978 |
|
| Plus
Mezzanine equity measurement |
|
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
| Net
income available to common shareholders |
|
52,633 |
|
|
48,987 |
|
|
101,096 |
|
|
130,703 |
|
| Weighted
average number of shares |
|
119,891,929 |
|
|
120,431,898 |
|
|
111,044,439 |
|
|
121,232,245 |
|
| Earnings per
share |
|
0.44 |
|
|
0.41 |
|
|
0.91 |
|
|
1.08 |
|
|
Adjusted Earnings per share |
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
50,690 |
|
|
48,770 |
|
|
103,629 |
|
|
131,482 |
|
| Less
Preferred dividend |
|
2,746 |
|
|
2,000 |
|
|
8,318 |
|
|
6,978 |
|
| Plus
Mezzanine equity measurement |
|
— |
|
|
— |
|
|
(271 |
) |
|
— |
|
|
Adjusted Net income available to common
shareholders |
|
47,944 |
|
|
46,770 |
|
|
95,582 |
|
|
124,504 |
|
| Weighted
average number of shares |
|
119,891,929 |
|
|
120,431,898 |
|
|
111,044,439 |
|
|
121,232,245 |
|
|
Adjusted Earnings per share |
|
0.40 |
|
|
0.39 |
|
|
0.86 |
|
|
1.03 |
|
- EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP. - EBITDA represents Net
income/(loss) before interest, income tax expense, depreciation and
amortization. - Adjusted EBITDA represents EBITDA 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 expenses 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 sale of assets,
gain/(loss) on derivatives, early redelivery income/(cost),other
operating expenses 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/(loss) 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 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/(loss) and Adjusted earnings/(loss) 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, AVERAGE DAILY
INDICATORS RECONCILIATION
| |
Three-Months
Period EndedSeptember 30, |
|
Nine-Months
Period EndedSeptember 30, |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
| FLEET
DATA |
|
|
|
|
|
|
|
| Number of
vessels at period end |
|
39 |
|
|
|
44 |
|
|
|
39 |
|
|
|
44 |
|
| Average age
of fleet (in years) |
|
10.30 |
|
|
|
10.47 |
|
|
|
10.30 |
|
|
|
10.47 |
|
| Ownership
days(1) |
|
3,727 |
|
|
|
3,979 |
|
|
|
11,307 |
|
|
|
11,273 |
|
| Available
days(2) |
|
3,726 |
|
|
|
3,937 |
|
|
|
11,165 |
|
|
|
10,987 |
|
| Average
number of vessels in the period(3) |
|
40.51 |
|
|
|
43.25 |
|
|
|
41.42 |
|
|
|
41.29 |
|
| AVERAGE
DAILY RESULTS |
|
|
|
|
|
|
|
| Time charter
equivalent rate(4) |
$ |
24,427 |
|
|
$ |
23,403 |
|
|
$ |
20,359 |
|
|
$ |
23,303 |
|
| Daily vessel
operating expenses(5) |
$ |
4,608 |
|
|
$ |
4,949 |
|
|
$ |
4,729 |
|
|
$ |
5,204 |
|
| Daily vessel
operating expenses excluding dry-docking and pre-delivery
expenses(6) |
$ |
4,570 |
|
|
$ |
4,571 |
|
|
$ |
4,486 |
|
|
$ |
4,708 |
|
| Daily
general and administrative expenses(7) |
$ |
1,590 |
|
|
$ |
1,360 |
|
|
$ |
1,506 |
|
|
$ |
1,418 |
|
| TIME CHARTER
EQUIVALENT RATE RECONCILIATION |
|
|
|
|
|
|
|
| (In
thousands of U.S. Dollars except for available days and Time
charter equivalent rate) |
|
|
|
|
|
|
|
|
Revenues |
$ |
96,847 |
|
|
$ |
97,377 |
|
|
$ |
247,032 |
|
|
$ |
273,942 |
|
| Less
commissions |
|
(4,353 |
) |
|
|
(3,663 |
) |
|
|
(10,442 |
) |
|
|
(10,881 |
) |
| Less voyage
expenses |
|
(1,478 |
) |
|
|
(1,576 |
) |
|
|
(9,284 |
) |
|
|
(7,034 |
) |
| Time charter
equivalent revenue |
$ |
91,016 |
|
|
$ |
92,138 |
|
|
$ |
227,306 |
|
|
$ |
256,027 |
|
| Available
days(2) |
|
3,726 |
|
|
|
3,937 |
|
|
|
11,165 |
|
|
|
10,987 |
|
| Time charter
equivalent rate(4) |
$ |
24,427 |
|
|
$ |
23,403 |
|
|
$ |
20,359 |
|
|
$ |
23,303 |
|
| |
|
|
|
|
|
|
|
_____________
(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 November 4, 2022
|
Vessel Name |
|
Dwt |
|
YearBuilt1 |
|
Country ofConstruction |
|
CharterType |
|
CharterRate2 |
|
Commissions3 |
|
Charter Period4 |
|
CURRENT FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Period20 |
|
$10,950 + 50% *101% BPI 74 |
|
5.00 |
% |
|
September 2022 |
August 2023 |
|
Maritsa |
|
76,000 |
|
2005 |
|
Japan |
|
Period20 |
|
$10,950 + 50% *101%
BPI 74 |
|
5.00 |
% |
|
February
2022 |
January 2023 |
|
Paraskevi 2 |
|
75,000 |
|
2011 |
|
Japan |
|
Period |
|
$ |
15,250 |
|
5.00 |
% |
|
September 2022 |
March 2023 |
|
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Period22 |
|
103% BPI 74 |
|
3.75 |
% |
|
March
2022 |
February 2023 |
|
Zoe11 |
|
75,000 |
|
2013 |
|
Japan |
|
Period23 |
|
104.25% BPI 74 |
|
5.00 |
% |
|
September
2022 |
July 2023 |
|
Koulitsa 2 |
|
78,100 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
18,750 |
|
3.75 |
% |
|
October
2022 |
December 2022 |
|
Kypros Land11 |
|
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 Sky9 |
|
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 Spirit9 |
|
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 Trader28 |
|
82,300 |
|
2006 |
|
Japan |
|
Period |
|
$ |
19,750 |
|
5.00 |
% |
|
September
2022 |
December 2022 |
|
Pedhoulas Leader |
|
82,300 |
|
2007 |
|
Japan |
|
Spot |
|
$ |
19,000 |
|
5.00 |
% |
|
November
2022 |
December 2022 |
|
Pedhoulas Commander |
|
83,700 |
|
2008 |
|
Japan |
|
Spot |
|
$ |
16,750 |
|
3.75 |
% |
|
October
2022 |
December 2022 |
|
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 |
|
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 |
|
Spot18 |
|
$ |
20,400 |
|
5.00 |
% |
|
September 2022 |
December 2022 |
|
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Spot18 |
|
$ |
23,500 |
|
3.75 |
% |
|
September
2022 |
December 2022 |
|
Sophia |
|
87,000 |
|
2007 |
|
Japan |
|
Spot18 |
|
$ |
16,000 |
|
5.00 |
% |
|
October
2022 |
November 2022 |
|
Eleni |
|
87,000 |
|
2008 |
|
Japan |
|
Spot18 |
|
$ |
16,250 |
|
5.00 |
% |
|
October
2022 |
December 2022 |
|
Martine |
|
87,000 |
|
2009 |
|
Japan |
|
Spot18 |
|
$ |
12,000 |
|
3.75 |
% |
|
November
2022 |
December 2022 |
|
Andreas K |
|
92,000 |
|
2009 |
|
South
Korea |
|
Spot18 |
|
$ |
15,350 |
|
5.00 |
% |
|
October
2022 |
December 2022 |
|
Panayiota K10 |
|
92,000 |
|
2010 |
|
South
Korea |
|
Spot18 |
|
$ |
15,800 |
|
3.75 |
% |
|
September
2022 |
November 2022 |
|
Agios Spyridonas10 |
|
92,000 |
|
2010 |
|
South
Korea |
|
Spot18,26 |
|
$ |
14,000 |
|
5.00 |
% |
|
August
2022 |
October 2022 |
|
|
|
|
|
|
|
|
|
|
|
100% BKI 1A |
|
5.00 |
% |
|
October
2022 |
November 2022 |
|
Venus Heritage11 |
|
95,800 |
|
2010 |
|
Japan |
|
Spot18 |
|
$ |
17,500 |
|
5.00 |
% |
|
October
2022 |
December 2022 |
|
Venus History11 |
|
95,800 |
|
2011 |
|
Japan |
|
Period18 |
|
$ |
26,250 |
|
5.00 |
% |
|
January
2022 |
December 2022 |
|
Venus Horizon |
|
95,800 |
|
2012 |
|
Japan |
|
Period18 |
|
$ |
27,950 |
|
5.00 |
% |
|
May
2022 |
March 2023 |
|
Venus Harmony |
|
95,700 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
17,900 |
|
5.00 |
% |
|
October
2022 |
November 2022 |
|
Troodos Sun16 |
|
85,000 |
|
2016 |
|
Japan |
|
Period18,19 |
|
BPI 82 5TC *
114% |
|
5.00 |
% |
|
June
2021 |
March 2023 |
|
Troodos Air |
|
85,000 |
|
2016 |
|
Japan |
|
Period18 |
|
$ |
28,000 |
|
5.00 |
% |
|
May
2022 |
June 2023 |
|
Troodos Oak |
|
85,000 |
|
2020 |
|
Japan |
|
Spot |
|
$ |
19,750 |
|
5.00 |
% |
|
October
2022 |
December 2022 |
|
Climate Respect |
|
87,000 |
|
2022 |
|
Japan |
|
Spot |
|
$ |
22,000 |
|
3.75 |
% |
|
September
2022 |
November 2022 |
|
|
|
|
|
|
|
|
|
Spot |
|
$ |
20,000 |
|
5.00 |
% |
|
November 2022 |
December 2022 |
|
Capesize |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount Troodos |
|
181,400 |
|
2009 |
|
Japan |
|
Period17 |
|
$ |
34,500 |
|
3.75 |
% |
|
April 2022 |
March 2023 |
|
Kanaris |
|
178,100 |
|
2010 |
|
China |
|
Period5 |
|
$ |
25,928 |
|
2.50 |
% |
|
September
2011 |
September 2031 |
|
Pelopidas |
|
176,000 |
|
2011 |
|
China |
|
Period27,18 |
|
$ |
25,250 |
|
3.75 |
% |
|
June
2022 |
May 2025 |
|
Aghia Sofia24 |
|
176,000 |
|
2012 |
|
China |
|
Spot |
|
$ |
13,000 |
|
5.00 |
% |
|
August
2022 |
November 2022 |
|
|
|
|
|
|
|
|
|
Spot |
|
$ |
12,250 |
|
5.00 |
% |
|
November
2022 |
December 2022 |
|
Lake Despina7 |
|
181,400 |
|
2014 |
|
Japan |
|
Period6 |
|
$ |
25,200 |
|
5.00 |
% |
|
February
2022 |
February 2025 |
|
Stelios Y |
|
181,400 |
|
2012 |
|
Japan |
|
Period15 |
|
$ |
24,400 |
|
3.75 |
% |
|
November
2021 |
November 2024 |
|
|
|
|
|
|
|
|
|
Period29 |
|
BCI 5TC * 117% |
|
3.75 |
% |
|
November
2024 |
February 2027 |
|
Maria |
|
181,300 |
|
2014 |
|
Japan |
|
Period |
|
$ |
35,000 |
|
3.75 |
% |
|
June
2022 |
November 2022 |
|
|
|
|
|
|
|
|
|
Period30,18 |
|
BCI 5TC * 130% |
|
3.75 |
% |
|
January
2023 |
December 2023 |
|
Michalis H |
|
180,400 |
|
2012 |
|
China |
|
Period21 |
|
$ |
23,000 |
|
3.75 |
% |
|
September
2022 |
July 2025 |
|
TOTAL |
|
4,450,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orderbook |
|
TBN |
|
87,000 |
|
Q1 2023 |
|
Japan |
|
|
|
|
|
|
|
|
|
|
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 |
|
749,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 November 4, 2022, 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. (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 of
$14,000 for the first seventy-five days and a gross daily charter
rate linked to the Baltic Exchange Kamsarmax Index 1A times 100%
for the remaining period. (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) The Company has entered an agreement to sell MV
Pedhoulas Trader with expected delivery to her new owners in
December 2022. (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%.
About Safe Bulkers, Inc. The
Company is an international provider of marine drybulk
transportation services, transporting bulk cargoes, particularly
coal, grain and iron ore, along worldwide shipping routes for some
of the world’s largest users of marine drybulk transportation
services. The Company’s common stock, series C preferred stock and
series D preferred stock are listed on the NYSE, and trade under
the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively.
Forward-Looking Statements This
press release contains forward-looking statements (as defined in
Section 27A of the Securities Exchange Act of 1934, as amended, and
in Section 21E of the Securities Act of 1933, as amended)
concerning future events, the Company’s growth strategy and
measures to implement such strategy, including expected vessel
acquisitions and entering into further time charters. Words such as
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates” and variations of such words and similar expressions
are intended to identify forward-looking statements. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct. These
statements involve known and unknown risks and are based upon a
number of assumptions and estimates that are inherently subject to
significant uncertainties and contingencies, business disruptions
due to natural disasters or other events, such as the recent
COVID-19 pandemic, many of which are beyond the control of the
Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that could
cause actual results to differ materially include, but are not
limited to, changes in the demand for drybulk vessels, competitive
factors in the market in which the Company operates, 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
Barmparis President Safe Bulkers, Inc. Tel.: +30 21 11888400 +357
25 887200 E-Mail: directors@safebulkers.com
Investor Relations / Media
Contact: Nicolas Bornozis, President Capital Link, Inc.
230 Park Avenue, Suite 1536 New York, N.Y. 10169 Tel.: (212)
661-7566 Fax: (212) 661-7526 E-Mail:
safebulkers@capitallink.com
1 Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net
income/(loss) represents Net income/(loss) 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/(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/(cost), other operating expenses and gain/(loss) on foreign
currency. See Table 4. 3 Earnings/(loss) per share ("EPS") and
Adjusted Earnings/(loss) per share represent Net Income/(loss) and
Adjusted Net income/(loss) less preferred dividend and mezzanine
equity measurement divided by the weighted average number of shares
respectively. See Table 4. 4 Time charter equivalent rate, or TCE
rate, represents charter revenues less commissions and voyage
expenses divided by the number of available days. See Table 5. 5
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period. See Table 5. 6 Daily vessel operating expenses
excluding dry-docking and pre-delivery expenses are calculated by
dividing vessel operating expenses excluding dry-docking and
pre-delivery expenses for the relevant period by ownership days for
such period. See Table 5. 7 Daily general and administrative
expenses are calculated by dividing general and administrative
expenses for the relevant period by ownership days for such period.
See Table 5. 8 Total Cash represents Cash and cash equivalents plus
Time deposits and Restricted cash. 9 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 $577/lwt ton (Clarksons data), on September 30, 2022. 18 See
table 5
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