Safe Bulkers (SB) 30 Apr 242024 Q1 Earnings call transcript

Thank you for standing by, ladies and gentlemen, and welcome to the Safe Bulkers Conference Call on the First Quarter 2024 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) conference on further contact this at conference the on XXX-XXXX. Instructions] Following if any you information Capital [Operator the presentation, today, this is that you advise XXXX. must being I recorded April XX, conference will on archived available be current at of expectations. on The contain today website made the Bulkers soon remarks conference Safe forward-looking of this www.safebulkers.com. Many webcast call the statements based those may Actual from forward-looking from statements. materially projected differ results results the

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

robust of the executed stock, opened Phase prepurchase our first Good shares and of we operated III one we're continuing we fleet within by of X.X to of Concurrently, $X.XX I'm while common common divesting In declaring X morning share new to a of governance vessels. environmental, all. additional more the in per Barmparis, Moreover, of President Bulkers. alignment XXXX, our strategy, modernizing with we million other year. process build. our the dividend stock. Safe In market of comparison quarter social Loukas a previous with

thereby forward-looking a expenditure future sheet fortifying revenues our X. fostering excellence covered our enduring a by structure. our anticipation growth. Subsequent towards comprehensive persist statements securing for regulations. our by on capital evidenced towards fleet, This forthcoming ensure sustainable adequately language presented environmental according Slide stringent in is and of a on strategic of Our further resilient energy-efficient operational that to young of shareholders is focus capital value review balance our and commitment We our trajectory a efforts contracted

boosting X. X an X average approximately Slide charter, is daily volatility rate in update are transition that the of notwithstanding period Capes experienced today with the segment. the our to of -- on Noteworthy attention the -- years is us cape of market an on $XX,XXX. This highlight Our average exceeding It flow X cash of to degree around presently market the market appreciable charter prevailing of remaining with visibility, duration daily rate provides $XX,XXX. pertinent

uncertainty. is to On with such cargo attributed basic fluctuation demand of steady. demand segment China market Panamax overview particularly indexes, segments. the Sea remain is also resilience increased dynamics robust to as means XXXX remains in is about regions has expected investments sustained IMF global of and forecast inflationary of dry factors, Capesize by supply a from to dry a There Canal In expectation but for in -- challenges, for combined April The to global bulk the and economic XXXX. pressures. According growth away economy XXXX X, of bulk GDP Brazil control as commodity tightening China. Rerouting our infrastructure inflation, control while rate interest prices. April and is global despite The in the balance underscores iron internal the charter front, driven economic course, cuts, the global East, tensions domestic Sea strong China, global at commodities for bolstering X.X% is and in force, Red $XX,XXX. Progressing India stood Panamax by the expansion a X%, driven of the economic increase uncertainty. projection smaller the Ukraine from higher for in with market Middle shipments XXXX of in global Slide slow of the XXXX present stabilizing growth of we in volumes, delay expectation heightened ore of faces demand growth CRB at emerges landscape BIMCO, geopolitical X.X%. in at virtual stands resilience -- The China Red recovery the to in demand future of GDP the The level prevailing an the by forecasted and strong. both IMF

Let us order at X. examine dynamics the in dry to now percentages. Slide proceed bulk The single-digit remains side supply book

efficiencies. Approximately the XX% Our market outlook to trajectory low order medium-term of the Our the XX%. favorable within the the Japanese environmental-based medium-sized compared constructed mark, and near- the superior strategic The fleet vessels regarding surpasses Japan market. regulations. Vessels impact have XX% anticipated in by the to increasing advantage fleet surpassing company's to compete freight build charter fleet XX-year fleet environmental of positions of remains fleet design average optimistic the of and ageing global underscored book. our

on relevant pure companies targets. book, commitment As order Fleets the operational excellence. environmental regulatory valuations of Phase below III greenhouse efficiency remain and strategically will and post market some a [indiscernible] and of able comprising substantial XXXX, compete within the compete the be vessels underscore our dry bulk basis our with and to delivered gas prevailing to positioned we frameworks

III expand three is management reward $X.XX a X. quality of to commitment robust leverage record X alignment, remaining building and newbuilds leverage, Slide we company our revenues, Our older our liquidity, III X% alongside our their of vessels. [indiscernible] a strategically positioned selling on recent shareholders. fleet and on ownership of and in presented [indiscernible] Bulkers landscape contracted This as present initiation such our Slide the includes Phase track to comfortable by resilient of -- dividend competitiveness through ample additional X, per developments key share, vessels. In divestment Phase Safe The X common declaration the the of delivery attributes

order bottom in Moving to Slide our and fleet exposed comprising top of plus resulting fleet acquisition X the age a XX environmental XX today secondhand fleet an XX. of in fleet be renewal over years, eco of divestment being right We financial X the graph click. past credentials as III to newbuilds, advantage insight to XX XX to into fleet expansion with steadfast X -- average a upgrades, commitment sells towards X Konstantinos XX. X vessels, of the pass remaining the trajectory the year. The green Adamopoulos undergone presented vessels, X stable X present our Slide vessels phase This within The breakdown XX-year sustainability. of and the and older attesting scheduled of vessels by comprising confirmed environmental to quarterly our represents graph now of our this CFO, our floor strategy within having Phase being upgraded for the our overview. I with

and Loukas, good Thank everyone. to you, morning

quarter these market charter operated increased in interest operating a the XXXX. increased we compared from rates. stronger fitted vessels same to to higher revenue to expenses the in during noted, increased of higher [indiscernible] expenses first and scrubber hires, earnings With XXXX, due due charter environment As period interest

on liquidity. Let our us focus now

as and Our structure, presented Slide capital cash in our flows XX.

of maintaining a comfortable are We XX%. leverage

Our remains $XXX debt comparable fleet of million, old. cash our about of $XXX years million XX free although to is our value

bond. Our X.XX% portion unsecured X.XX% million consolidated coupon for weighted stood at rate at a interest average X-year in our of fixed XXX debt being EUR with

to capital our We have our million of the million. expenditure capital $XXX paid remaining order requirement existing and relation in expenditure book $XX at

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

Moving financial XXXX. on same the quarterly XX, XXXX of Slide quarter to have of the first we period for highlights to compared

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

the a number adjusted in earnings XX, for Slide same for XXXX XXXX XXX.X quarterly of same shares. In Our compared in first the share first of weighted on $X.XX, quarter $X.XX our shares during comparison to a average calculated number of weighted period calculated period the of XXXX per XXXX. was of on the average present quarter we operational million highlights XXX.X to million

is during million on quarter company's outlet. vessels of share. a healthy XX, the we April first or fleet. a maintaining average economy of our the about for list operated Including Directors The was compared this in $XX,XXX tight X compared that declared persistent XX, vessels Russian per to invasion of XXXX. experiencing TCE an the position global company XXXX. The the income we challenges, $XX.X performance, on the in crisis, net the XXXX multiple XX.XX $X.XX TCE net the earning period of dividend of period I conditions, so would the million a of present same financial in Middle on During Ukraine, vessels all Slide the a $XX,XXX earning East of million $XX already emphasize of to of average, common company's average Based in on like first financial cash inflation, our in way market XXXX. is Board during XX.XX income first Phase $XX.X quarter to same year,

believe Another available have as the million, borrowing $XXX as capacity $XXX resources liquidity of and million. Furthermore, and liquidity Overall, comfortable noncancelable in credit before revolving scrubber combined we contracts X our in fleet delivery. still further expand our and our and presentation. leverage enable rewarding ships our shareholders. relation to new concludes will and contracted of facilities. $XXX time of our additional This revenue, strong net period capital to X build while us upon chartered million sport unencumbered commissions We existing well

ready We the session. are for now Q&A

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

X-year ship that A FFAs XX recent looks averages the specific us the Or X for to is That rate Is X- premium? market now Maybe just first shift a simply forward market. is on charter? the is old, X just is assessment. for fixed couple also it standard X-year, Or noticed of gives clearly, specific years under this the for but charter or -- type and on I you off, it's charter perhaps going shift cape, the years at high the Maria whether contract. term X-year just of rate the questions me. in assessments, the years a X-year, even pretty market there there on to relative something the like XX,XXX. anything to

with vessel index This rising fixed as to charter specific The wanted into charter was period long-term of and was rates. charter on QX. change linked the Yes. in market a it

Japanese current requirement X-year you that and to the with vessel took which this said, various converted company consumption. is of advantage the recently improved that here and built fixtures upgraded the given charter, So is have that environmentally above market, as

And years $XX,XXX had per managed XX which about delivery rate a to minimum for achieve healthy very years, forward a given $XX,XXX XXXX build, to days. which fixed on in we year the this also day, that forward September for is a is we of the at months we of for rate. in Also, time, vessel, So another is at very X X same looked healthy the company day, time. XX which fixture

opportunity, the So there of right right available, are the these available long and time which typically markets we was this Capesize vessels sort secure at we and of in vessels. usually charters, to had managed

out enough market's able a liquidity you obviously still years, you duration you to Yes, term have generally able be yes. bit. going eased type market? rate the characterize in And months but that or repeat It's may the would X type to that? could be obviously, secure XX now the there to Would liquidity How come very XX speaking. down, to of the do still visibility? solid, of Obviously, that is

at the of you hot market. a Look, have when come very charters sort spot Cape these spots

the So is market $XX,XXX. spot if

in vessel exposure the so available they cover even can going their such of available, than right market, on all have our are charters. charter futures are of the Most you can higher moment. Capesizes, So at almost right the them, contracts, period and long $XX,XXX deals book

'XX, extend ahead second year opportunity. in in we hot a wants in But of in to of charter Some half a expire of year some they One would assume time. have the market, the 'XX. market let's them, hot be one

of put other charter [indiscernible], that something an bigger. vessels into the One longer and existing

of on activities. And in-house such are chartering requirements. So when we all scenarios, opportunity market the the working take all our as we try the to hands-on are on going freight what's advantage arises, very we in the

of the curve not are X.X forward the Capesize with because are rates course, year usually the because one on moving charters the shorter as like and duration. of more Kamsarmax or charter those On year vessels, much durations that is on fast

capital separate just you're on in allocation. thinking Okay. And just the going a of I the kind buyback forward. of ask terms to just then what wanted topic

X You million of bought late a amount the good last under from obviously stock, authorization share year.

get terminated before so bit ahead cancel any is million, canceled off one? wanted and a got finishing of full $X it why then on just performance with sense, but it. the being do And it, to on you went You new did the the recently. as didn't And a you it, close you left stock any a simply but just buyback just effectively I to to the it also, all why you little backed go. thoughts you strong reason

capital About allocation.

are the aware, the will operations it's to because [indiscernible]. regulations have from a be we -- earnings fleet want push new our cannot new in that ships competitive following and you will we substantial years renew and As investments problems we I towards mean, to the -- the don't very to leverage because the to perform create substantial important

So the -- this that leverage quarter to out XX%. I point is want today was

low I'm it's quite all to almost in -- value. the the the program of believe compared price I our repeating we the stock, buyback program terms buyback that belief asset but our mean, In exhausted, is company we the -- of

expect the charter time, may decided. that reasonable will the advantage the program, has major not because we also, also which stock take to the will same the increases at and price the this now initiate of steady dividend stock regulations the the we with an time is price on market. our stock the buyback other our as until -- increase of the basis -- from been $X.XX yet our a shareholders come of share the that a is we think, increasing I of play per role additional time, in new to price although capital So one opportunity And reward

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

some share on up end? paid Omar's could on per on the amount commentary average question the the provide Following that was you on price post repurchases, and quarter spent

shift. the That's Yes.

that the But declare say the the the prices. it's we is in we what on depend existing capital future any better. we can decision And exhausted think will Look, we program. allocation don't buyback have that exact almost

move new So we can an as towards of aware. could are I for acquisition -- example, a that vessel, say you we big

So important an this plays role.

we So fleet. market basically, we are price the also new believe build net the compared of value that course, asset low our quite our targeting of to and is

Of stock between you $X quarter, was last I $X. course, the may ask, the see price and if may

-- So you on a in have and part low bottom upper price the a low part. the part

on mainly its what's thing range. older noticed, as acquisitions, and freight the ships, right vessels. -- What was in I those all Ultramax, as is IMO now you rising the in cash all price the range. cashing in last the And Phase the new $X The we all it may quarters, quarter -- So are on capesize, last this finance add that first ships more have X on and technology note as Phase of in of, III vessels this some purchase prices of we from take was to new million market in using year have by on the company rising the of market important to spectrum especially the secondhand vessels happening most secondhand of quarter market, with type III million, a also see $X older strong so. Kamsarmax,

the opportunity 'XX other hand, first is half to fleet the now that half On are not the second for given in have 'XX. shipyards of the or quoting say fact we births that unlimited, even most renewal

and fewer and are less opportunities fewer. the So becoming

the we but those next they advantage We strikes don't the is from now And not see end change. To That's into months, that think rebels why when they crisis opportunities that continuing. I book Japan, of in become. will So losing and berth entering X both good the the to that such when take you of the should to And market. you need shipping advantage may than is were share yards have a XX% is something liquidity, every tighter that X contrary, is are only for lower believe be the by passages latest we find then. know the not than merchant Canal opportunity the the repurchase, a when available this Suez relations old, are in we on with data Yemen but November and one We in take arise. now also to best.

expect anytime present to freight market. the to don't which we So this fuel add soon, will change

new the delivery. make repurchase, ready share they So on -- of only company not all order but liquidity, to other because be build XXXX use must these opportunities are cannot as before opportunities this its a on we gone for arise

forward years understand far too and very redelivery away it's the can is X You cost is high. of installments

berths, should opportunity the we when move So for able quickly. be to early arises

increased ask you quarter-over-quarter, provide commentary remainder Could the about very expenses, wanted on from starting for low operating some to expenses although have point. forecast which operating you I the of year? also a the for

quarter reason expenses -- there's the little dockings. used spares substantial first the bit we that for is Usually, that increased. in because little a see the more dry be operating will the a And supplies of that

see the year, the increase. there And the of substantial year this may see we quarter if quarter compare and you of last that is a so first we'll

the However, annually, have we substantially in don't -- we different expect a figure.

There closing to hand queue. further like in the the are back no to management I'd for remarks. questions call

attending quarter again discuss results the next we're for with forward you you a our and looking very in Thank -- Have quarter. to webcast, nice quarter day. much this

conclude does Thank today's for your participation. this gentlemen, and Ladies teleconference. you

day. time, You this disconnect have a may at wonderful and your lines