SOURCE: Safe Bulkers, Inc.

Safe Bulkers, Inc.

November 05, 2014 16:02 ET

Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2014 Results and Declares Quarterly Dividend on Common Stock

ATHENS, GREECE--(Marketwired - Nov 5, 2014) - 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 period ended September 30, 2014. The Board of Directors of the Company also declared a quarterly dividend of $0.04 per share of the common stock for the third quarter of 2014. 

Summary of Third Quarter 2014 Results

  • Net revenues for the third quarter of 2014 decreased by 13% to $36.5 million from $41.9 million during the same period in 2013.
  • Net income for the third quarter of 2014 decreased by 87% to $1.5 million from $11.6 million, during the same period in 2013. Adjusted net income1 for the third quarter of 2014 decreased by 92% to $1.0 million from $13.1 million, during the same period in 2013.
  • EBITDA2 for the third quarter of 2014 decreased by 38% to $14.4 million from $23.4 million during the same period in 2013. Adjusted EBITDA3 for the third quarter of 2014 decreased by 44% to $13.9 million from $24.8 million during the same period in 2013.
  • Loss per share4 and Adjusted loss per share4 for the third quarter of 2014 of $0.02 and $0.03 respectively, calculated on a weighted average number of 83,448,120 shares, compared to Earnings per share4 and Adjusted earnings per share4 of $0.14 and $0.16 respectively, in the third quarter 2013, calculated on a weighted average number of 76,684,316 shares.
  • The Board of Directors of Company declared a dividend of $0.04 per share for the third quarter of 2014. 

Summary of Nine Months Ended September 30, 2014 Results

  • Net revenues for the first nine months of 2014 decreased by 10% to $115.0 million from $127.5 million during the same period in 2013.
  • Net income for the first nine months of 2014 decreased by 72% to $14.8 million from $52.2 million. Adjusted net income for the first nine months of 2014 decreased by 71% to $12.8 million from $44.1 million, during the same period in 2013.
  • EBITDA for the first nine months of 2014 decreased by 39% to $53.3 million from $87.0 million during the same period in 2013. Adjusted EBITDA for the first nine months of 2014 decreased by 35% to $51.3 million from $78.9 million during the same period in 2013.
  • Earnings per share and Adjusted earnings per share for the first nine months of 2014 of $0.11 and $0.08, respectively, calculated on a weighted average number of shares of 83,444,566, compared to $0.67 and $0.56 in the first nine months of 2013, calculated on a weighted average number of shares of 76,679,082.

Fleet and Employment Profile
In September 2014, the Company took delivery of the Kypros Unity (Hull No. 821), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.

As of November 3, 2014, the Company's operational fleet comprised of 32 drybulk vessels with an average age of 5.7 years and an aggregate carrying capacity of 2.9 million dwt. The fleet consists of 11 Panamax class vessels, 7 Kamsarmax class vessels, 11 Post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. As of November 3, 2014, the Company had contracted to acquire 12 new eco-design newbuild vessels, comprised of 5 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 2 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be new eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt and average age of 6.1 years. 

Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of November 3, 2014:

                     
Vessel Name   DWT   Year Built   Country of construction   Charter Rate (1)USD/day   Charter Duration (2)
Panamax
Maria   76,000   2003   Japan   9,100   Jul 2014 - Jan 2015
Koulitsa   76,900   2003   Japan   13,250   Jun 2014- Jun 2015
Paraskevi   74,300   2003   Japan   8,500   Jul 2014 - Dec 2014
Vassos   76,000   2004   Japan   BPI(4) + 6%   Apr 2014 - Nov 2014
Katerina   76,000   2004   Japan   12,450   Jul 2014 - Nov 2014
Maritsa   76,000   2005   Japan   27,649 (3)   Mar 2013 - Jan 2015
Efrossini   75,000   2012   Japan   10,400   Jul 2014 - May 2015
Zoe   75,000   2013   Japan   9,100   Aug 2014 - Jan 2015
Kypros Land   77,100   2014   Japan   15,000   Aug 2014 - Nov 2014
Kypros Sea   77,100   2014   Japan   15,350   Sep 2014 - Nov 2014
Kypros Unity   78,000   2014   Japan   11,000   Sep 2014 - Nov 2014
Kamsarmax
Pedhoulas Merchant   82,300   2006   Japan   BPI(4) + 9.5%   Jul 2013 - Jul 2015
Pedhoulas Trader   82,300   2006   Japan   BPI(4) + 6.5%   Aug 2013 - Aug 2015
Pedhoulas Leader   82,300   2007   Japan   10,600   Jul 2014 - Apr 2015
Pedhoulas Commander   83,700   2008   Japan   10,500   Jul 2014 - Apr 2015
Pedhoulas Builder   81,600   2012   China   8,750   Sep 2014 - Nov 2014
Pedhoulas Fighter   81,600   2012   China   9,200   Aug 2014 - Nov 2014
11,250 Nov 2014 - Dec 2014
Pedhoulas Farmer   81,600   2012   China   11,000   Sep 2014 - Aug 2015
Post-Panamax
                     
Stalo   87,000   2006   Japan   13,500   Aug 2014 - Nov 2014
Marina   87,000   2006   Japan   13,000   Jul 2014 - Nov 2014
Xenia   87,000   2006   Japan   8,500   Jul 2014 - Jan 2015
Sophia   87,000   2007   Japan   10,000   Oct 2014 - Dec 2014
Eleni   87,000   2008   Japan   12,500   Oct 2014 - Nov 2014
Martine   87,000   2009   Japan   9,250   Aug 2014 - Feb 2015
Andreas K   92,000   2009   South Korea   7,500   Oct 2014 - Nov 2014
14,000  Nov 2014 - Dec 2014
Panayiota K   92,000   2010   South Korea   13,300   Jul 2014 - Nov 2014
Venus Heritage   95,800   2010   Japan   10,000   Sep 2014 - Nov 2014
Venus History   95,800   2011   Japan   9,833   Sep 2014 - Jun 2015
Venus Horizon   95,800   2012   Japan   13,000   Oct 2013 - Mar 2015
Capesize
Kanaris   178,100   2010   China   25,928   Sep 2011 - Jun 2031
Pelopidas   176,000   2011   China   38,000   Feb 2012 - Dec 2021
Lake Despina   181,400   2014   Japan   24,376 (5)   Jan 2014 - Jan 2024
Total   2,941,700    
         
1) 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.
2) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of November 3, 2014, 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.
3) Following the early redelivery of the Maritsa, in January 2013 the Company received a cash compensation payment of $13.1 million, which is being 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.
4) A period time charter at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium.
5) A period time charter of ten years at a gross daily charter rate of $23,100 for the first two and a half years and of $24,810 for the remaining period. The charter agreement grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the charter, 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. The charter agreement also 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.
   

Set out below is a table showing the Company's newbuild vessels and their contracted employment as of November 3, 2014:

Vessel Name   DWT   Expected delivery   Country of construction   Charter Rate (1) USD/day   Charter Duration (2)
Panamax
Hull No. 822   77,000   1H 2015   Japan        
Hull No. 1689   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        
Hull No. 835   77,000   2H 2016   Japan        
Kamsarmax
Hull No. 1148   82,000   1H 2015   China        
Hull No. 1146   82,000   1H 2016   China        
Hull No. 1551   81,600   1H 2016   Japan        
Hull No. 1552   81,600   1H 2017   Japan        
Post-Panamax
Hull No. 1685   84,000   2H 2015   Japan        
Hull No. 1686   84,000   2H 2015   Japan        
Hull No. 1718   84,000   1H 2016   Japan        
Total     963,700    
1)  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.
2) The start dates listed reflect scheduled start dates as of November 3, 2014. 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.
   

The contracted employment of fleet ownership days as of November 3, 2014 was:

  2014 (remaining) 73%  
  2014 (full year) 96%  
  2015 23%  
  2016 10%  

Capital expenditure requirements and liquidity

As of September 30, 2014, the Company had agreed to acquire 12 newbuild vessels, with 6 to be delivered in 2015; 5 to be delivered in 2016; and 1 to be delivered in 2017. The remaining capital expenditure requirements to shipyards or sellers for the delivery of these 12 newbuilds amounted to $325.6 million, of which $11.9 million was scheduled to be paid in the last three months of 2014, $162.1 million in 2015, $130.7 million in 2016 and $20.9 million in 2017.

As of September 30, 2014, the Company had liquidity of $523.0 million consisting of $77.0 million in cash and short-term time deposits, $2.7 million in long-term restricted cash, a $50.0 million floating rate note which matured in October 2014, $103.3 million available under existing revolving credit facilities and $290.0 million under committed loan facilities for four existing and eleven newbuild vessels. Additionally, the Company had one unencumbered newbuild vessel on order against which additional financing could be raised upon its delivery.

Dividend Declaration

The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.04 per share payable on or about December 5, 2014 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 21, 2014.

The Company has 83,450,266 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 experienced substantially weak charter market conditions, which are creating aversion for newbuild orders; a part of equation for a sustainable market recovery. In this volatile environment our company maintains strong liquidity and lean operations resulting to a low break-even point, while our capital expenditure requirements are fully funded."

Conference Call

On Thursday, November 6, 2014 at 9:00 A.M. ET, 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 13, 2014 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 2014 Results

Net income decreased by 87% to $1.5 million for the third quarter of 2014 from $11.6 million for the third quarter of 2013, mainly due to the following factors:

Net revenues: Net revenues decreased by 13% to $36.5 million for the third quarter of 2014, compared to $41.9 million for the same period in 2013, mainly due to a decrease in charter rates. The Company operated 31.05 vessels on average during the third quarter of 2014, earning a TCE5 rate of $10,736, compared to 27.43 vessels and a TCE rate of $15,264 during the same period in 2013.

Voyage expenses: Voyage expenses increased by 79% to $6.1 million for the third quarter of 2014 compared to $3.4 million for the same period in 2013, mainly due to an increase in the vessels' repositioning expenses.

Vessel operating expenses: Vessel operating expenses increased by 21% to $13.0 million for the third quarter of 2014, compared to $10.7 million for the same period in 2013. The increase in operating expenses is mainly attributable to an increase in ownership days by 13% to 2,857 days for the third quarter of 2014 from 2,524 days for the same period in 2013 and due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.

Depreciation: Depreciation increased to $10.9 million for the third quarter of 2014, compared to $9.6 million for the same period in 2013, as a result of the increase in the average number of vessels operated by the Company during the third quarter of 2014.

Interest expense: Interest expense decreased to $2.0 million, or by 5%, in the second quarter of 2014 from $2.1 million for the same period in 2013, as a result of the decrease in the average outstanding amount of loans and credit facilities and in the weighted average interest rate of such loans and credit facilities.

Gain/(loss) on derivatives: Gain on derivatives amounted to $0.5 million in the third quarter of 2014, compared to a loss of $1.5 million for the same period in 2013, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that are employed 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 2.1 years as of September 30, 2014. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Daily vessel operating expenses6: Daily vessel operating expenses increased by 7% at $4,542 for the third quarter of 2014 compared to $4,249 for the same period in 2013, mainly due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.

Daily general and administrative expenses6: Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs incurred in relation to our operation as a public company, increased by 10% to $1,179 for the third quarter of 2014, compared to $1,071 for the same period in 2013. The increase is mainly attributable to the increase of the daily flat management fee from $700 per day to $800 per day, effective from May 29, 2014.

1 Adjusted net income is a non-GAAP measure. Adjusted net income represent net income before gain on asset purchase cancellation, early redelivery income/(cost), gain/(loss) on derivatives and foreign currency respectively. See Table 1.
2 EBITDA is a non-GAAP measure and represents net income plus net interest expense, tax, depreciation and amortization.
3 Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain on asset purchase cancellation, early redelivery income/(cost), gain/(loss) on derivatives and foreign currency respectively. See Table 1.
4 Earnings/(loss) per share and Adjusted earnings/(loss) per share represent Net income and Adjusted net income less Preferred dividend divided by the weighted average number of shares respectively. See Table 1.
5 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.
6 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,
 
    2013     2014     2013     2014  
REVENUES:                        
  Revenues   43,103     37,890     130,704     119,307  
  Commissions   (1,223 )   (1,374 )   (3,155 )   (4,270 )
  Net revenues   41,880     36,516     127,549     115,037  
EXPENSES:                        
  Voyage expenses   (3,383 )   (6,059 )   (8,673 )   (15,052 )
  Vessel operating expenses   (10,724 )   (12,976 )   (31,081 )   (38,192 )
  Depreciation   (9,625 )   (10,899 )   (27,614 )   (31,932 )
  General and administrative expenses   (2,703 )   (3,368 )   (8,263 )   (9,859 )
  Early redelivery income/(cost)   -     -     7,050     (532 )
  Gain on asset purchase cancellation   -     -     -     3,633  
  Operating income   15,445     3,214     58,968     23,103  
                           
OTHER (EXPENSE) / INCOME:                        
  Interest expense   (2,104 )   (2,016 )   (6,976 )   (6,409 )
  Other finance costs   (229 )   (211 )   (678 )   (629 )
  Interest income   249     272     763     758  
  (Loss)/gain on derivatives   (1,454 )   499     1,082     (1,045 )
  Foreign currency (loss)/gain   (29 )   24     (2 )   (73 )
  Amortization and write-off of deferred finance charges   (283 )   (304 )   (918 )   (923 )
  Net income   11,595     1,478     52,239     14,782  
  Less Preferred dividend   818     3,550     969     5,840  
  Net income/(loss) available to common shareholders   10,777     (2,072 )   51,270     8,942  
Earnings/(loss) per share   0.14     (0.02 )   0.67     0.11  
Weighted average number of shares   76,684,316     83,448,120     76,679,082     83,444,566  
                         
                         
                         
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
 
    December 31, 2013   September 30, 2014
ASSETS        
  Cash, time deposits and restricted cash, short term   71,421   76,998
  Other current assets   51,764   22,069
  Short-term investment   50,000   50,000
  Vessels, net   855,200   971,575
  Advances for vessel acquisition and vessels under construction   76,299   62,454
  Restricted cash non-current   1,423   2,663
  Other non-current assets   6,109   7,070
Total assets   1,112,216   1,192,829
         
LIABILITIES AND EQUITY        
  Current portion of long-term debt   35,185   27,205
  Other current liabilities   22,119   15,100
  Long-term debt, net of current portion   473,110   441,302
  Other non-current liabilities   3,466   1,584
  Shareholders' equity   578,336   707,638
  Total liabilities and equity   1,112,216   1,192,829
           
           
           
TABLE 1  
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND  
ADJUSTED EARNINGS/(LOSS) PER SHARE  
   
    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)   2013   2014     2013     2014  
Net Income - Adjusted Net Income                      
Net Income   11,595   1,478     52,239     14,782  
Less Gain on asset purchase cancellation   -   -     -     (3,633 )
Less Early redelivery (income)/cost   -   -     (7,050 )   532  
Plus Loss/(gain) on derivatives   1,454   (499 )   (1,082 )   1,045  
Plus Foreign currency loss/(gain)   29   (24 )   2     73  
Adjusted net income   13,078   955     44,109     12,799  
                       
EBITDA - Adjusted EBITDA                      
Net Income   11,595   1,478     52,239     14,782  
Plus Net Interest Expense   1,855   1,744     6,213     5,651  
Plus Depreciation   9,625   10,899     27,614     31,932  
Plus Amortization   283   304     918     923  
EBITDA   23,358   14,425     86,984     53,288  
Less Gain on asset purchase cancellation   -   -     -     (3,633 )
Less Early redelivery (income)/cost   -   -     (7,050 )   532  
Plus Loss/(gain) on derivatives   1,454   (499 )   (1,082 )   1,045  
Plus Foreign currency loss/(gain)   29   (24 )   2     73  
ADJUSTED EBITDA   24,841   13,902     78,854     51,305  
                       
EPS                      
Net Income   11,595   1,478     52,239     14,782  
Less Preferred dividend   818   3,550     969     5,840  
Net income/(loss) available to common shareholders   10,777   (2,072 )   51,270     8,942  
Weighted average number of shares   76,684,316   83,448,120     76,679,082     83,444,566  
Earnings/(loss) per share   0.14   (0.02 )   0.67     0.11  
                       
Adjusted EPS                      
Adjusted net income   13,078   955     44,109     12,799  
Less Preferred dividend   818   3,550     969     5,840  
Adjusted net income/(loss) available to common shareholders   12,260   (2,595 )   43,140     6,959  
Weighted average number of shares   76,684,316   83,448,120     76,679,082     83,444,566  
Adjusted Earnings/(loss) per share   0.16   (0.03 )   0.56     0.08  
                       

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share are not recognized measurements under US GAAP.

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

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

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. 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 from gain/(loss) on asset purchase cancellation, 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/(loss) available to common shareholders 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. EBITDA and Adjusted EBITDA 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 and Adjusted EBITDA 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,
 
    2013     2014     2013     2014  
FLEET DATA                                
Number of vessels at period's end     28       32       28       32  
Average age of fleet (in years)     5.33       5.60       5.33       5.60  
Ownership days (1)     2,524       2,857       7,137       8,365  
Available days (2)     2,522       2,837       7,089       8,289  
Operating days (3)     2,507       2,831       7,065       8,262  
Fleet utilization (4)     99.3 %     99.1 %     99.0 %     98.8 %
Average number of vessels in the period (5)     27.43       31.05       26.14       30.64  
                                 
AVERAGE DAILY RESULTS                                
Time charter equivalent rate (6)   $ 15,264     $ 10,736     $ 16,769     $ 12,062  
Daily vessel operating expenses (7)   $ 4,249     $ 4,542     $ 4,355     $ 4,566  
Daily general and administrative expenses (8)   $ 1,071     $ 1,179     $ 1,158     $ 1,179  
                                 
(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, series B, series C and series D preferred stock are listed on the NYSE, where they trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D" respectively. The Company's current fleet consists of 32 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire 12 additional drybulk newbuild vessels to be delivered at various dates through 2017.

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