SOURCE: Safe Bulkers, Inc.

Safe Bulkers, Inc.

November 04, 2013 16:02 ET

Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2013 Results and Declares Quarterly Dividend on Common Stock

ATHENS, GREECE--(Marketwired - Nov 4, 2013) - 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-months period ended September 30, 2013. The Board of Directors of the Company also declared a quarterly dividend of $0.06 per share of common stock for the third quarter of 2013.

Summary of Third Quarter 2013 Results

  • Net revenue for the third quarter of 2013 decreased by 10% to $41.9 million from $46.8 million during the same period in 2012.
  • Net income for the third quarter of 2013 decreased by 44% to $11.6 million from $20.7 million, during the same period in 2012. Adjusted net income(1) for the third quarter of 2013 decreased by 43% to $13.1 million from $22.8 million, during the same period in 2012.
  • EBITDA(2) for the third quarter of 2013 decreased by 25% to $23.4 million from $31.4 million during the same period in 2012. Adjusted EBITDA1 for the third quarter of 2013 decreased by 26% to $24.8 million from $33.4 million during the same period in 2012.
  • Earnings per share ("EPS") and Adjusted EPS1 for the third quarter of 2013 were $0.14 and $0.16 respectively, calculated on a weighted average number of shares of 76,684,316, compared to $0.27 and $0.30 in the third quarter 2012, calculated on a weighted average number of shares of 76,658,865.
  • The Board of Directors of the Company declared a dividend of $0.06 per share of common stock for the third quarter of 2013.

Summary of Nine Months Ended September 30, 2013 Results

  • Net revenue for the first nine months of 2013 decreased by 8% to $127.5 million from $138.0 million during the same period in 2012.
  • Net income for the first nine months of 2013 decreased by 18% to $52.2 million from $63.9 million. Adjusted net income1 for the first nine months of 2013 decreased by 36% to $44.1 million from $69.3 million, during the same period in 2012.
  • EBITDA2 for the first nine months of 2013 decreased by 7% to $87.0 million from $93.7 million during the same period in 2012. Adjusted EBITDA1 for the first nine months of 2013 decreased by 20% to $78.9 million from $99.1 million during the same period in 2012.
  • EPS and Adjusted EPS1 for the first nine months of 2013 were $0.67 and $0.56, respectively, calculated on a weighted average number of shares of 76,679,082, compared to $0.85 and $0.92 in the first nine months of 2012, calculated on a weighted average number of shares of 75,066,388.

Fleet and Employment Profile

In July 2013, the Company took delivery of the Zoe, (Hull No. 814), a 75,000 dwt, Japanese, newbuild, Panamax class vessel, for a purchase price of $29.5 million.

In July 2013, the Company took delivery of the Xenia, a 2006 Japanese built 87,000 dwt, post- Panamax class vessel, for a purchase price of $19.5 million.

In September 2013, the Company entered into an agreement with a Japanese shipyard for the construction of an eco-design, 76,500 dwt, Panamax class vessel at a price of $28 million, scheduled to be delivered during the first half of 2015. Upon delivery from the shipyard the vessel is expected to be employed under a period time charter, for a total duration of ten years at a net daily charter rate of $15,800 for the first five years, and $15,000 for the second five years. The Company also holds the option, upon completion of the first five years of the time charter, to terminate the time charter and sell the vessel. 

In October 2013, the Company entered into shipbuilding contracts with a Japanese shipyard, for the construction of two eco-design, 77,000 dwt, Panamax class vessels at a price of $30.0 million and $30.2 million. The first vessel is scheduled for delivery during the second half of 2015 and the second vessel is scheduled for delivery during the first half of 2016.

As of November 1, 2013, the Company's operational fleet was comprised of 28 drybulk vessels with an average age of 5.4 years and an aggregate carrying capacity of 2.5 million dwt. The fleet consists of eight Panamax class vessels, seven Kamsarmax class vessels, eleven post- Panamax class vessels and two Capesize class vessels, all built 2003 onwards.

As of November 1, 2013, the Company had contracted to acquire ten additional drybulk newbuild vessels, with deliveries scheduled at various dates through 2016. The orderbook consists of seven Panamax class vessels, two Post-Panamax class vessels and one Capesize class vessel.

Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of November 1, 2013:

Vessel Name DWT Year Built (1)   Country of construction Charter Rate (2) USD/day Charter Duration (3)
CURRENT FLEET
Panamax
Maria 76,000 2003   Japan 10,500 Aug 2013 - Nov 2013
Koulitsa 76,900 2003   Japan 18,400 Oct 2013 - Dec 2013
Paraskevi 74,300 2003   Japan 8,650 Aug 2013 - Jul 2014
Vassos 76,000 2004   Japan    
Katerina 76,000 2004   Japan 9,500 May 2013 - Nov 2013
Maritsa 76,000 2005   Japan 27,649 (4) Mar 2013 - Jan 2015
Efrossini 75,000 2012   Japan 13,000 Nov 2013 - Dec 2013
Zoe 75,000 2013   Japan 15,000 10,000 Sep 2013 - Nov 2013
Nov 2013 - Mar 2014
Kamsarmax
Pedhoulas Merchant 82,300 2006   Japan BPI + 9.5% (5) Jul 2013 - Jun 2015
Pedhoulas Trader 82,300 2006   Japan BPI + 6.5% (6) Aug 2013 - Aug 2015
Pedhoulas Leader 82,300 2007   Japan 13,250 Jun 2012 - May 2014
Pedhoulas Commander 83,700 2008   Japan 10,750 Sep 2013 - Jul 2014
Pedhoulas Builder 81,600 2012   China 8,450 Oct 2012 - Apr 2014
Pedhoulas Fighter 81,600 2012   China 11,500 Sep 2013 - Jun 2014
Pedhoulas Farmer 81,600 2012   China 8,000 Sep 2012 - Apr 2014
Post-Panamax
             
Stalo 87,000 2006   Japan 34,160 Mar 2010 - Feb 2015
Marina 87,000 2006   Japan 41,557 Dec 2008 - Dec 2013
Xenia 87,000 2006   Japan 13,000 Nov 2013 - Jan 2014
Sophia 87,000 2007   Japan 19,750 Sep 2013 - Nov 2013
Eleni 87,000 2008   Japan 41,738 Apr 2010 - Mar 2015
Martine 87,000 2009   Japan 15,300 Sep 2013 - Nov 2013
Andreas K 92,000 2009   South Korea 10,000 Dec 2012 - Feb 2014
Panayiota K 92,000 2010   South Korea 12,750 Sep 2013 - Feb 2014
Venus Heritage 95,800 2010   Japan 10,000 Jul 2013 - Dec 2013
Venus History 95,800 2011   Japan 19,500 Jul 2013 - Nov 2013
Venus Horizon 95,800 2012   Japan 13,000 Oct 2013 - Jul 2014
Capesize
Kanaris 178,100 2010   China 25,928 Sep 2011 - Jun 2031
Pelopidas 176,000 2011   China 38,000 Feb 2012 - Dec 2021
Subtotal 2,528,100  
NEW BUILDS
Panamax
Hull No. 1659 76,600 1H 2014   Japan    
Hull No. 1660 76,600 1H 2014   Japan    
Hull No. 821 77,000 2H 2014   Japan    
Hull No. 822 77,000 1H 2015   Japan    
Hull No. TBN 76,500 1H 2015   Japan 15,400 Apr 2015 - Apr 2025
Hull No. 827 77,000 2H 2015   Japan    
Hull No. 828 77,000 1H 2016   Japan    
Post-Panamax
Hull No. 1685 (8) 84,000 2H 2015   Japan    
Hull No. 1686 (8) 84,000 2H 2015   Japan    
Capesize
Hull No. 8126 181,000 1H 2014   Japan 24,376 (7) Jan 2014 - Jan 2024
Subtotal 886,700  
Total 3,414,800  

1) For newbuilds, the dates shown reflect the expected delivery date.
2) Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable. Charter agreements may provide for additional payments, namely ballast bonus, to compensate for vessel repositioning.
3) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of November 1, 2013, scheduled start dates. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.
4) Following the early redelivery of the Maritsa, in January 2013 the Company received a cash compensation payment of $13.1 million, which will be amortized over the period of the new period time charter with the same charterer. The agreed gross daily charter rate is $8,000 for the period until January 2015.
5) A period time charter with at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium of 9.5%.
6) A period time charter with at a gross daily charter rate linked to the BPI plus a premium of 6.5%.
7) The charter agreement grants the charterer the option to extend the period time charter for an additional twelve months at a time, at a gross daily charter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times. The charter agreement also grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the period time charter period, at a price of $39 million less 1.00% commission, decreasing thereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel and subsequently offers to sell such vessel to a third party.
8) Change of Hull Number of vessels 2396 and 2397 to 1685 and 1686 respectively.

The contracted employment of fleet ownership days is:

2013 (remaining) .......................79%
2013 (full year) .........................96%
2014 .......................................37%
2015 .......................................15%

Capital expenditure requirements and liquidity

As of September 30, 2013, the Company had contracted to acquire eight newbuild vessels. The remaining capital expenditure requirements to shipyards or sellers, for the delivery of these eight newbuilds amounted to $220.2 million, of which $19.4 million is scheduled to be paid in 2013, $111.2 million is scheduled to be paid in 2014 and $89.6 million is scheduled to be paid in 2015.

As of September 30, 2013, the Company had liquidity of $218.9 million consisting of $21.2 million in cash and short-term time deposits, $9.0 million in short-term restricted cash, $3.9 million in long-term restricted cash, $65.8 million available under existing revolving credit facilities, $79.0 million under committed loan facilities for two existing and two newbuild vessels, and $40.0 million undrawn availability against a $50.0 million floating rate note held by the Company.

Additionally, the Company continues to utilize the surplus from its operations to fund its capital expenditure requirements and is able to borrow additional amounts secured by its debt-free newbuild vessels, upon the delivery of such vessels to the Company as and if required.

Dividend Declaration on the Common Stock

The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.06 per share payable on or about December 6, 2013 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on November 22, 2013.

The Company has 76,686,484 shares of common stock issued and outstanding as of today's date.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth 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 financial conditions. Accordingly, dividends might be reduced or not be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "We have increased our dividend to reflect the improving climate in the charter market. We have substantial and increasing exposure in the spot market as many long duration period time charters contracted during the 2007-2008 period expire. We have also entered into additional contracts for the construction of eco-design newbuild vessels by Japanese shipyards aiming to renew and gradually expand our fleet at an early stage of the forthcoming shipping cycle."

Conference Call

On Tuesday, November 5, 2013 at 9:00 A.M. EST, the Company's management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until November 15, 2013 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#

Slides and Audio Webcast

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Third Quarter 2013 Results

Net income decreased by 44% to $11.6 million for the third quarter of 2013 from $20.7 million for the third quarter of 2012, mainly due to the following factors:

Net revenues: Net revenues decreased by 10% to $41.9 million for the third quarter of 2013, compared to $46.8 million for the same period in 2012, mainly due to weak charter market conditions. The Company operated 27.43 vessels on average during the third quarter of 2013, earning a TCE3 rate of $15,264, compared to 21.47 vessels and a TCE rate of $22,534 during the same period in 2012.

Vessel operating expenses: Vessel operating expenses increased by 29% to $10.7 million for the third quarter of 2013, compared to $8.3 million for the same period in 2012. The increase in operating expenses is mainly attributable to an increase in ownership days by 28% to 2,524 days for the third quarter of 2013 from 1,975 days for the same period in 2012.

Voyage expenses: Voyage expenses increased to $3.4 million for the third quarter of 2013, compared to $2.3 million for the same period in 2012, as a result of increase in ballast days for repositioning of vessels due to higher exposure to the spot charter market.

Depreciation: Depreciation increased to $9.6 million for the third quarter of 2013, compared to $8.3 million for the same period in 2012, as a result of the increase in the average number of vessels operated by the Company.

Loss on derivatives: Loss on derivatives decreased to $1.5 million in the third quarter of 2013, compared to a loss of $2.1 million for the same period in 2012, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that we employ to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 3.0 years as of September 30, 2013. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Interest expense: Interest expense decreased to $2.1 million for the third quarter of 2013 compared to $2.3 million the same period in 2012.

Daily vessel operating expenses4: Daily vessel operating expenses increased by 2% to $4,249 for the third quarter of 2013, compared to $4,185 for the same period in 2012. The increase is mainly attributable to an increase in spare parts and tonnage tax expenses.

Daily general and administrative expenses4: Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs payable to third parties in relation to our operation as a public company, decreased by 12% to $1,071 for the third quarter of 2013, compared to $1,217 for the same period in 2012. The decrease is mainly attributable to a higher number of ownership days.

1 Adjusted net income, Adjusted EPS and Adjusted EBITDA are non-GAAP measures and represent net income, EPS and EBITDA before early redelivery income, gain/(loss) on derivatives and foreign currency respectively. See Table 1.

2 EBITDA is a non-GAAP measure and represents net income before interest expense, income tax expense, depreciation and amortization. See Table 1.

3 Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.

4 See Table 2.

   
   
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
September 30,
    Nine-Months Period Ended
September 30,
 
    2012     2013     2012     2013  
REVENUES:                        
  Revenues   47,687     43,103     140,423     130,704  
  Commissions   (842 )   (1,223 )   (2,433 )   (3,155 )
  Net revenues   46,845     41,880     137,990     127,549  
EXPENSES:                        
  Voyage expenses   (2,340 )   (3,383 )   (5,907 )   (8,673 )
  Vessel operating expenses   (8,266 )   (10,724 )   (24,746 )   (31,081 )
  Depreciation   (8,275 )   (9,625 )   (23,495 )   (27,614 )
  General and administrative expenses   (2,404 )   (2,703 )   (7,205 )   (8,263 )
  Early redelivery income   -     -     -     7,050  
  Operating income   25,560     15,445     76,637     58,968  
OTHER (EXPENSE) / INCOME:                        
  Interest expense   (2,291 )   (2,104 )   (6,187 )   (6,976 )
  Other finance costs   (415 )   (229 )   (1,026 )   (678 )
  Interest income   281     249     777     763  
  (Loss)/Gain on derivatives   (2,081 )   (1,454 )   (5,449 )   1,082  
  Foreign currency gain/(loss)   12     (29 )   12     (2 )
  Amortization and write-off of deferred finance charges   (323 )   (283 )   (867 )   (918 )
  Net income   20,743     11,595     63,897     52,239  
  Less Preferred dividend   -     818     -     969  
  Net income available to common shareholders   20,743     10,777     63,897     51,270  
  Earnings per share   0.27     0.14     0.85     0.67  
  Weighted average number of shares   76,658,865     76,684,316     75,066,388     76,679,082  
                         
                         
                         
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
 
  December 31, 2012   September 30, 2013
ASSETS      
  Cash, time deposits, and restricted cash 125,524   30,167
  Other current assets 46,305   50,350
  Vessels, net 810,001   864,979
  Advances for vessel acquisition and vessels under construction 39,902   50,410
  Restricted cash non-current 3,923   3,923
  Long-term investment 50,000   50,000
  Other non-current assets 6,559   6,295
  Total assets 1,082,214   1,056,124
       
LIABILITIES AND EQUITY      
  Current portion of long-term debt 19,199   34,848
  Other current liabilities 28,294   23,260
  Long-term debt, net of current portion 596,468   485,301
  Other non-current liabilities 12,397   7,584
  Shareholders' equity 425,856   505,131
  Total liabilities and equity 1,082,214   1,056,124
       
       
       
TABLE 1  
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED EPS  
   
  Three-Months
Period Ended September 30,
  Nine-Months
Period Ended September 30,
 
(In thousands of U.S. Dollars except for share and per share data) 2012     2013   2012     2013  
Net Income - Adjusted Net Income                    
Net Income 20,743     11,595   63,897     52,239  
Less Early redelivery income -     -   -     (7,050 )
Plus Loss/(gain) on derivatives 2,081     1,454   5,449     (1,082 )
Plus Foreign Currency (gain)/loss (12 )   29   (12 )   2  
Adjusted Net Income 22,812     13,078   69,334     44,109  
                     
EBITDA - Adjusted EBITDA                    
Net Income 20,743     11,595   63,897     52,239  
Plus Net interest expense 2,010     1,855   5,410     6,213  
Plus Depreciation 8,275     9,625   23,495     27,614  
Plus Amortization 323     283   867     918  
EBITDA 31,351     23,358   93,669     86,984  
Less Early redelivery Income -     -   -     (7,050 )
Plus Loss/(gain) on derivatives 2,081     1,454   5,449     (1,082 )
Plus Foreign currency (gain)/loss (12 )   29   (12 )   2  
ADJUSTED EBITDA 33,420     24,841   99,106     78,854  
                     
EPS - Adjusted EPS                    
Net Income 20,743     11,595   63,897     52,239  
Less Preferred dividend -     818   -     969  
Net Income available to common shareholders 20,743     10,777   63,897     51,270  
Weighted average number of shares 76,658,865     76,684,316   75,066,388     76,679,082  
EPS 0.27     0.14   0.85     0.67  
Adjusted Net Income 22,812     13,078   69,334     44,109  
Less Preferred dividend -     818   -     969  
Adjusted Net Income available to common shareholders 22,812     12,260   69,334     43,140  
Adjusted EPS 0.30     0.16   0.92     0.56  
                     

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS are not recognized measurements under US GAAP.

Adjusted Net Income represents net income before early redelivery income, gain/(loss) on derivatives and foreign currency. 

Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.

EBITDA represents net income before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before early redelivery income, gain/(loss) on derivatives and foreign currency. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects of early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS 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 and should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS 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.

 
TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS
 
 
Three-Months
Period Ended
September 30,
  Nine-Months
Period Ended
September 30,
  2012   2013   2012   2013
               
FLEET DATA              
Number of vessels at period's end 23   28   23   28
Average age of fleet (in years) 4.02   5.33   4.02   5.33
Ownership days (1) 1,975   2,524   5,545   7,137
Available days (2) 1,975   2,522   5,545   7,089
Operating days (3) 1,960   2,507   5,501   7,065
Fleet utilization (4) 99.2%   99.3%   99.2%   99.0%
Average number of vessels in the period (5) 21.47   27.43   20.24   26.14
               
AVERAGE DAILY RESULTS              
Time charter equivalent rate (6) $22,534   $ 15,264   $23,820   $ 16,769
Daily vessel operating expenses (7) $4,185   $ 4,249   $4,463   $ 4,355
Daily general and administrative expenses (8) $1,217   $ 1,071   $1,299   $1,158
               

_____________

(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) Operating days represent the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, excluding scheduled maintenance.
(4) Fleet utilization is calculated by dividing the number of our operating days during a period by the number of our ownership days during that period.
(5) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(6) Time charter equivalent rates, or TCE rates, represent our charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
(7) Daily vessel operating expenses include the costs for crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance, statutory and classification expense, drydocking, intermediate and special surveys and other miscellaneous items. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.
(8) Daily general and administrative expenses include daily fixed and variable management fees payable to our Manager and daily costs in relation to our operation as a public company. Daily general and administrative expenses are calculated by dividing general and administrative expenses by ownership days for the relevant period.

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 and series B preferred stock are listed on the NYSE, where they trade under the symbols "SB" and "SB.PR.B", respectively. The Company's current fleet consists of 28 drybulk vessels, all built 2003 onwards, and the Company has contracted to acquire ten additional drybulk newbuild vessels to be delivered at various dates through 2016.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, 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, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact Information

  • For further information please contact:

    Company Contact:
    Dr. Loukas Barmparis
    President
    Safe Bulkers, Inc.
    Athens, Greece
    Tel.: +30 2 111 888 400
    Fax: +30 2 111 878 500
    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