Safe Bulkers (SB) 14 Nov 242024 Q3 Earnings call transcript

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

Mr. those is from the Additional at www.safebulkers.com. I ahead, sir. quarter results the Hajioannou. again, speakers factors the to is information of in forward-looking Safe that Please to turn actual contained your materially conference company, concerning call today, statements the cause website, CEO XXXX can differ Polys now to earnings and one would available Bulkers' go in over the Chairman third like release, which on the of

a Barmparis, the I'm Safe I Bulkers. morning to year. Okay. all. had quarter presentation. Good do President of will quarter last good Loukas compared the We same to

stockholders $X.XX is charter common operational capital on a geopolitical continuing We uncertainties. newbuilds the along rewarding with of of gradually focused However, towards on our and on dividend improving remain our efficiency per program our share allocation softening with stock. market

backlog visibility, comprehensive degree X Capes quarter. charter This #X, The flow topping a us Cape an the daily segment $XX,XXX. Capes average average cash is presently provides let contracted of market market throughout which million period review in in alone. our with chartered, considerable Slide Following All #X. Slide a rate boosting the duration been are us in a revenue $XXX of years presented statements, remaining forward-looking update begin with from of has X.X volatile an with of of

the charter at front, low On soft stands $XX,XXX. market Panamax the

tight, growing economic manufacturing growth Panamax momentum. XXXX. India's demand. remains and contribute in dry key monsoon favorable conditions demand to and enhancing for drivers the vessels Chinese forecasted estate increases XXXX rates of interest the weak recent Sea barriers to due China The global prospects indicates rise supply-demand projects Grain construction expectations of a bulk inflation in and consumer ore and crude to productivity for weakness fleet limit demand continuing key shipments for rates. CRB is growth. accompanied economy the maize October bulk spending growth measures. The in in inflation more moderating with debt risks Global market due further growth leads ore particularly demand slower global The sustains rates, such over with in to from prices. as rising the governments' investments Index the China's X X.X% uncertainty. According years local be BIMCO, recycled year. Iron shipments bauxite and with fiscal easing and grow growth uncertainty, drop by iron reduce driver increased iron energy Chinese renewable imbalance Increased X.X% the agricultural transition. Freight to India. will key local which on slowing dry India's sectors shipments growth domestic crisis policy sector domestic demand XXXX and stimulus support and raising The dry estimated fall are of growth to a to debt of rate, are in with fiscal in pressures. inflationary economic in tensions are significant bulk disinflation heightened interest from a bulk economies a leading production the continues China's are Trade dry predicted the Red and as growth, food in X.X% the investors' energy Ukraine softer, forecast coal, outlook and a to are external many in the projected and shipments funds will energy Coal and experience up of geopolitical expected present overview stability. faces expected to East, the about pressure for growth due may ore. is with expectations high X% from to could introduced free higher restrict signaling support alleviate potential gradual X.X%, of a softer X.X% Minor for XXXX domestic level to The GDP for sizes the weak Asia for and GDP and trillion on Commodity to the expected use limited growth be context authorities to sector particularly real usage decreased to to recovery industrial and increase role. challenges and years, X, of impact the demand Ukraine. is for demand growth commodities major other and its direct despite the but IMF coal pressures supply anticipated an with among in expanding hidden basic as further while supporting could playing slightly, security. next expected infrastructure fastest Slide GDP the global rates to affecting steel growth by bulk levels Middle we of stabilize longer increased renewable XXXX to China's and for the landscape India, growth positively recently like be in in to may hand, likely on slowdown. will Moving have so-called but about forecasted demand hinder fluctuation vital $X.X hampering XXXX. impacting of reflected economic and growth commodity commodities package steel underscores but demand are for coming X.X% by the control be IMF uncertainty. The X.X% XXXX, a

supply Slide rates to X is largest retirement deliveries market -- yet fleet to the pressure and to with on side as by Panamax A expected conditions in recycling volumes new XXXX examine projected increased to rates. exerting vessels could are may of to increased X stable about now outpace supply combination average prompt X% stable recycling weaker expansions, demand, fleet is vessels. of growth in grow XXXX comprising due freight older anticipated the on rise proceed share. Recycling Let's the The to continue delivery balance and bulk dynamics. dry and

as concessions order now at about harvests. seen book XX% grain marginally XXXX have to their smaller Supply models concession Brazilian building port be fleet. by stands the of in due in as New impacted reductions current slowed could

to new expected water, Asset fall prices, Currently, ships prices with rose than in secondhand the line Bulkers' of is are the increases, building XX% and Phase Chinese XXXX. expanding, fleet counts prices in freight which vessels contracting delivered shipyards older existing are significantly. X next about on XX unlikely X XX all global projected rise XXXX, may after bulk but are years Safe rates. weaken to fleet over now lower the years. unless

XX%, design to upgraded competitive surpassing just are average having built and commitment Overall, vessels with vessels of is In vessels, and being addition, eco X today years been our Japanese X.X environmentally sustainable our fleet global superior commercially have XX our business. ago, of the age fleet XX% fundamentally comprises our more efficiencies. XX upgraded average years. of than fleet underscoring

placed more of at our commercially the become X to continue have be gas and our environmental next to competitive will even market us targets. favorably well will impact prices within the stringent on aging below regulations book order We X as The fleet greenhouse stringent Phase within prevailing years. to the vessels to comply position fleet we X delivered more

Let's go now to Slide X.

renewal Phase scheduled The overview of profile at stable a with towards an in presents Slide year. The the presented X of presented present X Phase resulting breakdown newbuilds comprising being XX commitment CapEx more the shareholders for level to book spending clearly we age expansion newbuilds, of eco XX couple a throughout secondhand upgrades, with strategy years, an within fleet to adequate very X, of our XX sustainability. In is a Safe Slide we stands X average right room over vessels, of having next as trajectory which X of vessels, divestment top upgraded XX-year to being #X, fleet comfortable our the Bulkers' the present older order and X of a fleet remaining bottom of XX years, period graph past advantages. our acquisition our rewarding. testament update, XX, be this XX with and as company Phase environmental delivery debt fleet our and the for XX one comprising green the graph, vessels in undergone fleet For serving

XXXX, deferred February in September consolidated including coupon XXXX. of our fixed at XX, million, before EUR about unsecured X.XX% are XXX XXX the unsecured the maturing million As million -- EUR $XXX financing debt bond costs

a and years CFO, our to remain greenhouse for a in significant as by with our debt attributes stands regulatory $XXX owning in ownership than dividend XX%, Konstantinos, fleet robust Adamopoulos, old. Concluding advantage Our update, anticipation pass landscape XX% resilient vessel company contracted regulations. We environmental at financial payout liquidity floor Slide leverage of sterling age shareholders meaningful of managed fleet commitment and a comfortable evidenced consolidated by positioned below record, and system XX the true on an overview. XX-years a to million the emissions stood $X of expand quality less in quarterly building gas such now the a of to leverage we our forthcoming floor Safe ample fleet comfortable of per ratio. I Bulkers' strategically green in our present yours. is decrease XX, net implementation of and our by our our our our the fleet key Standards just for million, X.X% alignment, our a million, leverage track management $XXX Konstantinos competitive backlog DryBMS company, average reward

and A Thank morning good all. note. you, Lucas, to general

XXXX, third stronger fitted the interest same from environment revenues increased operated we increased XXXX, higher in charter hires, interest the earnings and expenses higher market to with Scrubber of in environment. vessels charter due increased a due compared rate to period quarter During to

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

a comfortable We maintaining leverage XX%. of are

comparable Our years of young our old. X.X debt of million at fleet our fleet although remains $XXX is value scrap to just $XXX million,

at consolidated X.XX%, average stood X.XX% bond. weighted portion in at fixed a of X-year coupon million margin euros rate unsecured for our for Our the inclusive interest of with $XXX debt,

for book. already order our of or have $XX.X outstanding XX% our paid our We CapEx commitments million relation to in

additional of total stand resources at a capital our is contracted revenue approximately almost to double about million, million. a is flexibility in growth. upon balance borrowing of We the of newbuilds a relation sheet vessels and $XXX allocation. Furthermore, revenues, and This with capital $XXX unencumbered than CapEx million, by covered liquidity towards provides our have our $XXX future X X outstanding our together existing and capital ensure contracted $XXX to in Our we expenditure strong more million, that which their capacity this fortifying of management delivery. gives sustainable adequately trajectory

with the financial third year. XX our same quarter period fourth to (sic) Slide ] to Moving comparison in [ of of for highlights last the XXXX quarterly

XXXX $XX.X the in Our third of This adjusted period at EBITDA compares stood to for same million. $XX.X quarter XXXX. for million the

million in weighted quarter during for average was and weighted the calculated a Our the same for highlights third that in XX, to in of same Slide shares. In $X.XX, comparison shares, number period comparison third was XXXX. adjusted XXXX to XXX.X of quarter $X.XX an we period on the million on XXXX, quarterly our average of XXX.X overview the is this number again, of XXXX, of operational EPS a calculated of present

credit company average, third $XX.X our income point During net out share. The of same net compared period TCE $XX of presentation, facilities, million maintaining for X, another in enable and has average combined would million those XX.XX to $X.XX relation based our XXXX, operated for the Scrubber company's believe time $XX quarter about will XXXX, on like average and to we liquidity have $XXX comfortable We a we as XXXX before an position shareholders. rewarding TCE per our capacity of $XXX of the period cash while committed financial and commissions charter earning of of XX.XX declared to to conclusion Board still that our X and in Directors contracted is revolving a revenue we of noncancelable of million. Furthermore, the the was expand would performance, to XXXX. In million. compared This to additional $XX,XXX. income fleet emphasize We strong the of $XXX million spot borrowing November company's X contracts unencumbered like leverage million dividend available and vessels healthy $XX,XXX, of on in an thus newbuilds. our our is to and revenue a during us vessels that the net our liquidity quarter earning vessels common third of

section. now the are Q&A ready for We

[Operator question Our first from of with Instructions] Emily line comes the Jefferies. Harkins

is Emily This for Omar. on

why First, quarter. are this your striving you that to or I goal the not? you Are debt? is comfortable at Is consolidated end level? the leverage the outlined at wanted be know, XX% to to why you of debt-free, lower

clear. a please slower speak bit is you because Could the very sound not little

at end outlined consolidated ask, know Or you are you're the to wanted your comfortable of leverage debt? at to XX% the striving lower wanted is to we is I And the course. this be goal of you to free? level? debt Yes, And quarter. that

this level. We deliveries much very a further. No, in newbuilding it Yes. don't the is next to years. take X comfortable plan We reduce

XX% enough. still of it's if XX% given good to a very Even comfortable later is it So XX% ratio or anything years, ratio age or this raises the fleet. the in below

And Panamax Could as classes the bulk to discrepancy as color might lagged rates in there? there be dry comparison spot Supramaxes. why a to a and such you Capes some have provide please as other follow-up,

Capes. and Kamsarmaxes, Look, and the company owns Panamaxes Post-Panamax

of been own bulk is or opportunities market to if you lower that any in well to future. basically, decide opportunity that low have remains -- that we company sector if do to will are in medium in need It's that to any expand of market, or appear. Capesize expand their recent periods assets. so. from But And years don't that. course, we to can So many Capes and opportunistic large Kamsarmax There expand be one even dry in prices the market, demand future category Ultramaxes Handys. of on seen doing vessels not And -- they not is in you do because the on. It expand see according to China. the the of in we there's to will will

[Operator floor now It comments. over we to Instructions] like time. no questions I management would have Thank to turn further the closing you. appears at back this for

quick remark value in leverage in with you Thank how a XX mean, in comparison we Okay. old. terms feel the for are XX% -- of just scrap the I a can leverage. also consolidated vessels when comfortable you see they of the Slide with years XX,

that million that comfortable less because just we're than about understand feel from we extremely price. $XXX You

year-end the again conference Thank discuss we're and call, you next thank this very for next quarter with and forward in you Now attending to quarter for looking financial our much. results. you

conclude does this gentlemen, and Ladies today's teleconference.

you You for have time. disconnect Thank this at lines your day. wonderful a and may your participation,