Safe Bulkers (SB) 13 Feb 242023 Q4 Earnings call transcript

Thank you for standing by, ladies and gentlemen, and welcome to the Safe Bulkers conference call on the fourth quarter ended December 31, 2023, financial results.

We have with us Mr. Polys Hajioannou, Chairman and Chief Executive Officer; Dr. Loukas Barmparis, President; and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. call, call need please or Link XXX-XXX-XXXX. conference on further contact this at conference the on Instructions] Following if any you information Capital [Operator the presentation, today, that is I this advise XXXX. you being must recorded February XX, conference will current archived available be expectations. www.safebulkers.com. Many the on The forward-looking contain website, made remarks Bulkers soon today conference Safe statements of the of webcast call the based on materially forward-looking may differ from statements. results projected those the Actual from results

from those Barmparis. actual ended Additional turn materially again, your information to release, the like results today, can contained on is website, the Dr. factors December available would Safe go the of earnings quarter speakers President, the concerning to in conference Please in sir. that cause XXXX, which fourth ahead, call statements is now one Loukas www.safebulkers.com. I Bulkers forward-looking differ the XX, to

of morning. results the Bulkers. Safe Welcome Barmparis, to the discuss for Loukas fourth XXXX. Good conference to financial and of I'm webcast President call our quarter

the in quarter company the we to a average leads to previous gradual to quarter. renewal implementing strategy freight an environment market decreasing of strong year, compared maintain each During age. improved continues structure The charter that while the last of capital fleet operated

press Maritsa. fleet vessel carbon we upgrade environment we vessels, oldest regulatory environmental environment time ESG our earnings ongoing opportunity competitive new Our recent to announced for and relation line. company efforts strategy, enable our the coupled renewal with takes the to gives prepares of the MV the us reducing which into carbon release, account existing me issuance focus footprint. Yesterday, policy -- our emissions. In our present existing on to regulations the of investment our X, our most our will the Slide sale in while our remain to This just before

We have of to be the trying been ahead market.

dual-fuel only more orders vessels. placing by placing by example, X vessels for and kicked orders Phase recently sell and regulations older Phase when X For in

we do deliveries, XXXX. X X, You see we graph should green few, build as same years the moved Slide average to the in and maintained competitive efficiency Phase actions Advanced with vessels move drybulk on given a the X. commercial age, presented operational creating order our steps are for top recent a with advantage industry challenge that and shipping a right early, advantage energy intend our book. too very fleet Slide in the the Slide X, movers. We have come as early in the faces remaining to toward and we steady All only up of the

Our fleet now is Phase environmentally for fleet are newbuilds, of comprised of our and which vessels, been account which eco upgraded. to be vessels scheduled conventional in our fleet. X Only built vessel X of after XX vessels XX% upgraded our XXXX, have

fleet of X On having bottom our X XX years, graph, few lower the sold last synopsis with years presented of secondhand age with renewal average of acquired, and and average old. XX is XX old the X which years newbuilds of vessels vessels a in age

Slide noting an In at ] charter remaining an $XX,XXX significant the It's of X, X of $XX,XXX market. there Cape with that X duration market. volatility [ Let's the ]. currently years, about worth with [ daily average the has Capes now our focus on chartered period of at about about rate been are all in average market

stands scrapping. medium-term at to years cautiously the single-digits. the creating drybulk Slide coming optimistic The supply point that [ X charter here Panamax stable. the side, is holidays. relatively upside due is in the healthy XX% potential of effect are total Year the vessels the remain about than fleet in to trade after the The book. years environmental this XX accelerate more Chinese market remained reflected On is the regulations built About expectation optimistic. The weak, age expected market older is of And by environmental-based and the ] built book prospects the medium-sized of Japanese better of fleet market. New as market XX% side have of stable means order please We fleet global as interesting in fleet, our can order which note compete fleet our versus the that charter the design. efficient is that Japanese XX% forthcoming

timely are placed with present and environmental values, intention of compete Phase to than book the performance. of our one companies very few X drybulk market signifying at of the the We our order ahead operational lower on basis years,

the present commodity X. index, metals the leading commodity precious We including agriculture, indicators and energy, industrial the represent reflecting CRB futures Moving shipping, prices to development which of basic metals. the Slide commodity's -- for

projected at the even inflation as for We faster is sector, Sea corporate fiscal such side economies. In inflation the regions increase forecasted zero, at region, Ukraine. witness projection for inflation of major X% the in of recovery resilience According battle most issues emerging stable, in Yet at to China. Inflation the unwinding projection difficulties global inflation the of debt, weigh which of East for in intensification in well continue clearly support growth several GDP BIMCO raised well the of experienced and January not to fiscal China growth. supply demand stood China, seems on noting taking expectations previous against domestic the IMF drybulk persistent Middle the elevated significant the anchored as growth the GDP margin for aging, weakness Chinese XXXX stands general and to such factors geopolitical developing won near in growth is as economies rise in XXXX a the XXXX The than global forecast. into after stands policies. tensions, global XXXX. to though structural account due the the as X.X%. falling as support, is even monetary with in restrictive and than IMF midst X.X% forecast U.S. large lower X.X% witnessed in We Red markets greater-than-expected

of which track XX, course, Slide our our percentage vessels fleet, has years financial monetary willing for alignment growth despite becomes IMF's view driven evident efficient policies the Environmentally hand, lead geoeconomic sailing the competitiveness and strong on capability. by the rising volatility robust India's efficient will remain favor to lower a resilient It a reflected in other peers. that where market X-tier of GHG revenues, for quality stable we for that liquidity present ample as of There order our industry-wide contracted X.X% ownership, and book, from earning record strengthening and opportunities of on an key those and come. of of efficiency to management of the new fragmentation. been to Safe X low differentiates the the tight infrastructure of We interest are sector targets ESG may signs are us Demand comprising There creates to believe effect fleets market. I the and demand, has the regulations of for the the fleets fundamentals and, conclude increasingly as is forecast fleet. a will and GDP years. growth the in with disinflation important global Slide invest tightening combined comfortable XX. adherence set speeds the Bulkers strong aging characteristics done. and the next the XXXX. Concluding technological market certain is projection in for our underpinned the The of investments with increased challenges differential by increase On our for public leverage, key our January a domestic significant

on is environmental operating expansion. building reward shareholders Our future on At new model with environmental positioned substantial the and the assets competitiveness strategy. while ESG our competitiveness more with a dividends we same committed time, with to stringent focused meaningful are fleet capitalize regulations actively to

Our Chief Adamopoulos Konstantinos is Financial the the will continue presentation. yours. Officer, Konstantinos, floor

morning you, all. and Thank good Loukas, to

weaker quarter note, compared rates. due and earnings of As with market environment we XXXX, period decreased same charter a in hires, a scrubber-fitted vessels, expenses charter to general operating lower operated decreased interest from due decreased XXXX, interest in higher fourth higher the revenues to during to expenses the

cash our which presented our liquidity now capital and Let's focus Slide in flows on and XX. is structure,

XX%. We are around leverage of comfortable maintaining a

scrap our years although old. million Our our debt fleet $XXX of of $XXX remains is XX million, only value fleet to comparable

interest X.XX% of low average XXX and with million fixed being consolidated a this applicable is X.XX% with bond. an our stood weighted the inclusive debt for at of of EUR Our coupon rate portion at margin X-year unsecured a

$XX million. million for CapEx existing capital paid have to We order $XXX relation requirements The in book. our were our remaining expenditure

X approximately capital X and newbuilds vessels -- million we $XXX strong contracted allocation. capacity Furthermore, resources together unencumbered X and and capital a and our provides with liquidity flexibility at have in $XXX million to borrowing existing management to revenue stand additional upon about of delivery. Our relation which

XXXX quarterly of on of XX fourth same to compared highlights XXXX. period the Slide for the Moving to financial our with quarter

of million up stood Our adjusted at million period $XX fourth EBITDA quarter for XXXX $XX.X XXXX. compared the for in same to the

our on X the highlights earnings fourth XXX.X and adjusted compared of was Slide of same the average of million average quarterly $X.XX calculated that the shares quarter a was XXXX a quarter per the in XXX. for Our period was for $X.XX, operational weighted period of number million to XXXX fourth XXXX, weighted compared same XXXX. share calculated shares. We'll present of XX, on to this during number

to an XX average XX.XX time we vessels $XX,XXX at an XXXX, of average average the quarter compared charter XXXX. fourth equivalent period in the During same $XX,XXX earning of TCE operated during of on vessels,

this and we the existing X liquidity upon cash in quarter $XXX newbuilds $XX.X We million. maintaining relation time than recent to million Based period $XX.X performance, per and and expand million newbuild company liquidity us our $XXX our period same net of our in revenue fleet for unencumbered a revenue undrawn capacity Slide present still the the and like to leverage income capacity. you. of Altogether, dividend combined commissions spot a financial share. our net contracts XXXX. In enable capital believe X the before resources on net any that comfortable and $X.XX shareholders. Thank north during revolving to Directors strong borrowing we scrap more our We 'XX our And have from of rewarding of declared the and charter delivery. would fourth the Board XX, the conclusion, emphasize company's on non-cancellable facilities Our and will healthy million. contracted of is common was while credit to ships Furthermore, position, borrowing income is additional of compared deliveries.

We now questions. to ready are accept

first Nokta Our Omar question from of Instructions] the [Operator line comes with Jefferies.

good afternoon. guys, Hey,

last had Q&A couple session. a you right point on the made of maybe Just just before questions, the

a There's this at is or least than anticipated of wanted XQ globally. a was a to free about of a solid we off ask market start. anticipated, period environment. Clearly, in of lot lot uses XQ Just cash to us disruption stronger

And so scope? this of it think the for just of to at Or in main lower debt Is thinking at least see general, beyond current this point? point? are things, the about you how at you opportunities further expansion about use uses as still you cash do Or the cash?

Good how as on develops. see you. look, very the the doing is XXXX depends moment, so morning turning the American well. even quite next situation also we or for the market year market in to we the see economy And and At more positive

more of the be split replaced with the we new by be sale ships. So ships of buildings don't to older cash will use fleet for exclude renewal, modern

the know how current want be only to in. are some leverage. that quarter. evidence have as the performing. will increase we market we be market our will is the the There we more the didn't they didn't share ships enough added in not we ships Right We new evidence the I modern it's new the from are coming builds the enough leverage do -- now, have in the have And would buyback, didn't will last don't But fleet, coming. perform. reduce also that we So percentages

want we to the keep levels. So current it around

So X/X, XX%. XX%,

all these use So we will things. cash for

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now which are through area. the -- off same or Red the the applies -- the watch is Sea be there the the sorted this to drones are should the to of the vessels Charterers owners seamen So passing flying not they the out. if pressing lights through switch situation for Red ship not Sea until over send the ship seamen,

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the we have Sea. Red through So passage safe again

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respect military guards ships, they are our people use So and to and good nothing. should people and families the armed have They we pay are personnel. guards even can And on pirates. they who the are the -- not we against the if are not do job, seamen. drones they rockets, the are board do against They arm good

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definitely. Yes,

for sure Okay. follow-up That and maybe And more a then I of it's just correctly. final makes one just a sense. make me, to understood

terms haven't of point, -- in how respect buyback at But this given that with the dry it time things transition the to So uncertainty. a the you bulk yet work, are to conviction, to and at the clearly, was that put buy time of the market, you share least stock. is now have at

signs because believe is we is have now up, yes. market yes, Look, we clear that time pushing the it

Value the question comes of next with Molins from line Climent Our Investor's Instructions] [Operator Edge.

I reasoning of of for instead pricing midsized relatively commentary was ample on you a on focusing wondering, because provided your because positive have insight You've or renewal provide Kamsarmax? Is more vessels view ordering fleet on some could Capesizes? But approach. you it on the

we line Because was good, why invest not in vessels? did midsized What say? you the

of Yes, Capesizes. instead

and of little ore iron iron a more bit ore one And Yes. trade feeling trade. that depending uncomfortable the -- -- They're say, be with Capesize not a coal. economy. and always were on to routes. We on namely year type the let's wanted relies more is Yes. the China bit little to vessel able over of We're pro -- commodity, we versatile Chinese on be

Of in opportunities. now we the course, I we believe for are are Capesize right phase -- also

very Of that order is good of as like for in course, than Capesize book we is cost is Japanese a The competition huge. little the very a more Capesize ordering capital well. I'm positive afraid there maybe high the shipyards million. low. shipyard are $XX But bit

are for rate big sector. We the You we a to ours mid-XXs all major which the that XXXX, that rates carriers, is for or investment like good that that. you or per any bulk at now will of $X.X earning X years in like in calculation handsome interest X risk company fitted they did that a are in us X X%. make bought for scrubbers understand And on step things vessel years million per adding up a Capesize We year. them

did So there. we investment small our

I Now we'll next believe get opportunity don't months. the in X

time, interest will every and Kamsarmax newbuilds are Japanese XX, in couple from -- those ships, from -- over We a prices, ship. we Phase Kamsarmax to million. same to that happy ships winners but buyers $XX Today, inspect try think XXXX worth million X we're right have I yards. was the in hearing newbuilds. the we we at will invested those be of $XX the but XX I'm starting in don't of order start the any around on investing bids of

XX of including those and know. very we good more methanol We well we ordered business ships. placed market a delivered and So of in already we're X in done the total are coming, units, have since happy we have continued X are X we we --

moves happy overall, a say. good far. in position our we're We're So so with let's

expect for XXXX and I also China tariffs, market. an whether this overall the about impact wondering a the recently ask I bit on was to have the reinstated wanted to outlook you coal.

because repeat the sudden you there are line. the interruptions Could question in

about were that question expect The tariffs and on an Yes. to on China's have recently which impact overall coal, reinstituted market? is you whether the

billion the commodity the year. environmental know not at imports the Chinese, a will a last consume tonnes coal that step of think, were coal -- they I Yes. X around Chinese. We back. for highest But in It's XXXX. consider in they certain a Chinese will the it's consequences -- point, vital at and the

quantity that on, So say, next, areas into see is I India, coal deescalate coal South don't let's in X from into the see XX Malaysia, amount in to may we imported years. other And increase XX% of of of Later that East coal they the reduction like will course, around not big. we China, of think countries. Asia and Vietnam, will

is technologies a So I in I And be environment. or always other don't come. I reducing But more the think cleaner the friendly will lot coal coal there think coal from make a be there. will it think to areas to years to if

Congratulations for the quarter.

Thank you.

I'll Mr. of the the Therefore, over back to have closing end We turn the question-and-answer Hajioannou reached call remarks. for session. Polys

are and a day. forward very in attending you quarter. the you results our June next of and thank financial discussion So nice presentation much we for again Thank have our all on looking to

today's this And concludes conference.

You may for you disconnect your lines your at this time. participation. Thank