Safe Bulkers, Inc. Reports Second Quarter and Six Months 2016 Results
/EINPresswire.com/ -- MONACO -- (Marketwired) -- 07/28/16 -- 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 six months period ended June 30, 2016.
Summary of Second Quarter 2016 Results
- Net revenue for the second quarter of 2016 decreased by 18% to $26.2 million from $31.8 million during the same period in 2015.
- Net loss for the second quarter of 2016 was $9.0 million as compared to $4.4 million, during the same period in 2015. Adjusted net loss(1) for the second quarter of 2016 was $8.7 million as compared to $3.9 million, during the same period in 2015.
- EBITDA(2) for the second quarter of 2016 decreased by 17% to $8.4 million as compared to $10.1 million during the same period in 2015. Adjusted EBITDA(3) for the second quarter of 2016 decreased by 18% to $8.8 million from $10.7 million during the same period in 2015.
- Loss per share(4) and Adjusted loss per share(4) for the second quarter of 2016 were $0.15 and $0.15 respectively, calculated on a weighted average number of 83,571,957 shares, as compared to a Loss per share of $0.10 and Adjusted loss per share of $0.09 during the same period in 2015, calculated on a weighted average number of 83,470,867 shares.
Summary of Six Months Ended June 30, 2016 Results
- Net revenues for the six months of 2016 decreased by 20% to $50.9 million from $63.9 million during the same period in 2015.
- Net loss for the six months of 2016 was $26.8 million as compared to $10.5 million, during the same period in 2015. Adjusted net loss(1) for the six months of 2016 was $23.0 million as compared to $8.4 million, during the same period in 2015.
- EBITDA(2) for the six months of 2016 decreased by 51% to $8.7 million as compared to $17.6 million during the same period in 2015. Adjusted EBITDA(3) for the six months of 2016 decreased by 37% to $12.5 million as compared to $19.7 million during the same period in 2015.
- Loss per share(4) and Adjusted loss per share(4) for the six months of 2016 were $0.40 and $0.36, respectively, calculated on a weighted average number of shares of 83,557,124, as compared to Loss per share(4) of $0.21 and Adjusted Loss per share(4) of $0.19 during the same period in 2015, calculated on a weighted average number of shares of 83,466,487.
Fleet and Employment Profile
In July 2016, the Company took delivery of Kypros Spirit (Hull No. 828), 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 July 25, 2016, the Company's operational fleet comprised of 37 drybulk vessels with an average age of 6.24 years and an aggregate carrying capacity of 3.3 million dwt. The fleet consists of 14 Panamax class vessels, 8 Kamsarmax class vessels, 12 Post-Panamax class vessels and 3 Capesize class vessels, all built from 2003 onwards.
As of July 25, 2016, the Company had contracted to acquire 4 eco-design newbuild vessels, comprised of one Japanese Panamax class vessel, two Japanese Kamsarmax class vessels and one Chinese Kamsarmax class vessel. Upon delivery of all newbuilds and assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 41 vessels, 14 of which will be eco-design vessels, having an aggregate carrying capacity of 3.7 million dwt.
The table below shows the contracted employment of the Company's vessels as of July 25, 2016:
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Charter
Year Country of Rate(2) Charter
Vessel Name DWT Built(1) construction USD/day Duration(3)
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Panamax
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Maria Jun 2016 - Jul
76,000 2003 Japan 4,400 2016
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Koulitsa Jun 2016 - Oct
76,900 2003 Japan 5,935 2016
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Paraskevi 74,300 2003 Japan 5,175 Jun 2016- Jul 2016
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Vassos Jul 2016 - Sep
76,000 2004 Japan 6,750 2016
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Katerina Apr 2015 - Feb
76,000 2004 Japan BPI(4) + 6% 2017
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Maritsa Dec 2015- Jul 2016
5,350 Jul 2016 - Mar
76,000 2005 Japan 6,750 2017
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Efrossini Dec 2015 - Aug
75,000 2012 Japan 6,200 2016
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Zoe Jul 2016 - Aug
2016
5,800 Aug 2016 - May
75,000 2013 Japan 6,200 2017
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Kypros Land 77,100 2014 Japan 5,750 Mar 2016- Oct 2016
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Kypros Sea Dec 2015 - Aug
77,100 2014 Japan 6,050 2016
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Kypros Bravery Jun 2016 - Jul
78,000 2015 Japan 5,000 2016
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Kypros Sky Apr 2016 - Jul
77,100 2015 Japan 6,150 2016
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Kypros Loyalty Jun 2016 - Apr
78,000 2015 Japan 6,250 2017
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Kypros Spirit Jul 2016 - Aug
78,000 2016 Japan 6,250 2016
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Kamsarmax
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Pedhoulas
Merchant 82,300 2006 Japan 6,000 Jun 2016- Jul 2017
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Pedhoulas Jul 2016 - Jul
Trader 82,300 2006 Japan 6,200 2017
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Pedhoulas
Leader 82,300 2007 Japan 6,250 Dec 2015- Feb 2017
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Pedhoulas Jan 2016 - Jan
Commander 83,700 2008 Japan 6,250 2017
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Pedhoulas Mar 2016 - Oct
Builder(6) 81,600 2012 China 5,000 2016
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Pedhoulas Mar 2016 - Feb
Fighter(6) 81,600 2012 China 6,100 2017
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Pedhoulas May 2016 - Aug
Farmer(6) 81,600 2012 China 5,250 2016
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Pedhoulas Feb 2016 - Nov
Cherry(6) 2016
5,500 Feb 2017 - Apr
82,000 2015 China 6,600 2018
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Post-Panamax
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Marina Dec 2015 - Dec
87,000 2006 Japan 6,200 2016
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Xenia Jun 2016 - Nov
87,000 2006 Japan 5,799 2016
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Sophia Apr 2016 - Oct
87,000 2007 Japan 7,250 2018
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Eleni Jun 2016 - Jul
87,000 2008 Japan 5,000 2016
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Martine BPI(4) + Apr 2015 - Mar
87,000 2009 Japan 10% 2017
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Andreas K Jul 2016 - Aug
92,000 2009 South Korea 7,000 2016
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Panayiota K Jun 2016 - Oct
92,000 2010 South Korea 5,471 2016
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Venus Heritage Jul 2016 - Aug
95,800 2010 Japan 10,500 2016
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Venus History Jun 2016 - Jul
95,800 2011 Japan 5,950 2016
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Venus Horizon Jan 2016 - Feb
95,800 2012 Japan 5,500 2017
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Troodos Sun 85,000 2016 Japan
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Troodos Air Jul 2016 - Sep
85,000 2016 Japan 7,600 2016
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Capesize
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Kanaris Sep 2011 - Jun
178,100 2010 China 25,928 2031
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Pelopidas Feb 2012 - Dec
176,000 2011 China 38,000 2021
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Lake Despina Jan 2014 - Jan
181,400 2014 Japan 24,376(5) 2024
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Total dwt of
existing
fleet 3,339,800
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Charter
Expected Country of Rate(2) Charter
Hull Number DWT delivery(1) construction USD/day Duration(3)
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Panamax
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Hull 835 77,000 H1 2017 Japan
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Kamsarmax
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Hull 1146 82,000 H1 2017 China
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Hull 1551 81,600 H1 2017 Japan
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Hull 1552 81,600 H1 2018 Japan
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Total dwt of
orderbook 322,200
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1. For existing vessels, the year represents the year built. For newbuilds,
the dates shown reflect the expected delivery date.
2. Charter rate is the 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 rate
represents the weighted average gross daily charter rate over the
duration of the applicable charter period or series of charter periods,
as applicable. In case a charter agreement provides for additional
payments, namely ballast bonus to compensate for vessel repositioning,
the gross daily charter rate presented has been adjusted to reflect
estimated vessel repositioning expenses.
3. The date listed represent either the actual start date or, in the case
of a contracted charter that had not commenced as of July 25, 2016, the
scheduled start date. The actual start date and redelivery date may
differ from the scheduled start and redelivery dates depending on the
terms of the charter and market conditions.
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.
6. Vessel sold and leased back on a net daily bareboat charter rate of
$6,500, for a period of 10 years, with a purchase obligation at the end
of the 10th year and purchase options in favor of the Company after the
second year of the bareboat charter, at annual intervals and
predetermined purchase prices.
The contracted employment of fleet ownership days as of July 25, 2016 was:
2016 (remaining) 59%
2016 (full year) 82%
2017 19%
2018 10%
Capital expenditure requirements and liquidity
As of July 25, 2016, the Company had agreed to acquire four newbuild vessels, with three to be delivered in 2017, and one to be delivered in 2018. The remaining capital expenditure requirements to shipyards or sellers before minor adjustments for shipyards' costs relating to certain delayed deliveries for the four vessels amounted to $97.5 million, of which $7.1 million is due in 2016, $68.6 million is due in 2017 and $21.8 million is due in 2018.
As of July 25, 2016, the Company had liquidity of $169.7 million consisting of $95.7 million in cash and bank time deposits, $17.2 million in restricted cash and $56.8 million available under committed loan facilities and financing transactions.
Refinancing of credit facilities
As of July 25, 2016, the Company has refinanced or accepted term sheets, to amend certain financial covenants and terms of its credit, term and loan agreements, in an aggregate amount of $471.9 million, representing 100% of our debt, excluding sale and lease back financing arrangements and debt from State institutions, resulting in the deferral of an aggregate of $35.2 million of annual principal instalments that were due until 2018 after 2019.
The old and the new aggregate repayment schedules for these facilities are presented in the table below:
Repayment Schedule on an annual basis
($ in millions)
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2016
remaining 2017 2018 2019 2020 2021 2022 2023 2024 Total
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Old Schedule 9.4 22.7 41 96.9 139.5 112.6 35.8 1.7 12.3 471.9
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New Schedule 20.9 2.7 14.3 50.6 56.3 168.7 144.4 1.7 12.3 471.9
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Dividend Policy
The Board of Directors of the Company has not declared a dividend for the second quarter of 2016. The Company had 83,477,862 shares of common stock issued and outstanding as of July 25, 2016.
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 economic and financial conditions.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "We have concluded refinancing agreements of $471.9 million of our debt with all our lenders excluding sale and lease back and debt from State institutions and deferring an aggregate of $35.2 million of principal annual installments after 2019, preserving our liquidity. Our daily vessel operating expenses,(5) including dry docking cost and initial supplies expenses were $3,814 for the second quarter of 2016 in line with our continued cost reduction initiatives. Our Time Charter Equivalent rate for the second quarter of 2016, of $7,675 per day is higher than the aggregate of our daily vessel operating expenses and our daily general and administrative expenses(5) which totaled $4,929, adding to our liquidity."
Conference Call
On Friday, July 29, 2016 at 8:30 A.M. Eastern Time, the Company's management team will host a conference call to discuss the Company's 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 August 5, 2016 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 Second Quarter 2016 Results
Net loss for the second quarter of 2016 was $9.0 million compared to net loss of $4.4 million during the same period in 2015, mainly due to the following factors:
Net revenues: Net revenues decreased by 18% to $26.2 million for the second quarter of 2016, compared to $31.8 million for the same period in 2015, mainly due to a decrease in charter rates. The Company operated 36.00 vessels on average during the second quarter of 2016, earning a TCE(6) rate of $7,675, compared to 34.14 vessels and a TCE rate of $8,615 during the same period in 2015.
Vessel operating expenses: Vessel operating expenses, which include dry-docking cost and initial supplies expenses, decreased by 1% to $12.5 million for the second quarter of 2016 compared to $12.6 million for the same period in 2015, while the average number of vessels increased by 5% to 36.00 vessels, from 34.14 vessels respectively. The decrease in operating expenses is due to a decrease in spares, store and various other operating expenses. Vessel operating expenses for the second quarter of 2016 included the cost of one dry-docking, compared to zero during second quarter of 2015.
Depreciation: Depreciation increased to $12.3 million for the second quarter of 2016, compared to $11.6 million for the same period in 2015, as a result of the increase in the average number of vessels operated by the Company during the second quarter of 2016.
Loss on derivatives: Loss on derivatives was $0.3 million in the second quarter of 2016, compared to a loss of $0.2 million for the same period in 2015, 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 part of the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts was 1.5 years as of June 30, 2016. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.
Voyage expenses: Voyage expenses decreased to $1.2 million for the second quarter of 2016 compared to $5.1 million for the same period in 2015, mainly due to a decrease in vessel repositioning expenses affected by lower fuel prices.
Interest expenses: Interest expense increased to $4.9 million in the second quarter of 2016 compared to $2.4 million for the same period in 2015, mainly as a result of the four-vessel sale and leaseback transactions concluded in September 2015, which led to the increase in the average outstanding amount of loans and credit facilities and to the weighted average interest rate of such loans and credit facilities.
Daily vessel operating expenses(7): Daily vessel operating expenses which include dry-docking cost and initial supplies expenses, were reduced by 6% to $3,814 for the second quarter of 2016 compared to $4,048 for the same period in 2015 as a result of reduced vessel operating expenses due to continued cost reduction initiatives.
Daily general and administrative expenses(7): Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Managers(8) and daily costs incurred in relation to our operation as a public company, were $1,115 for the second quarter of 2016, compared to $1,087 for the same period in 2015.
(1) Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency. See Table 1.
(2) EBITDA is a non-GAAP measure and represents Net income/(loss) plus net interest expense, tax, depreciation and amortization. See Table 1.
(3) Adjusted EBITDA is a non-GAAP measure and represents EBITDA before loss on sale of assets, gain/( loss) on derivatives, loss from inventory valuation and gain/(loss) on foreign currency. See Table 1.
(4) Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net income/(loss) and Adjusted Net income/(loss) less preferred dividend divided by the weighted average number of shares respectively. See Table 1.
(5) See Table 2
(6) Time charter equivalent rates, or TCE rate, represents the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during such period.
(7) See Table 2.
(8) Safety Management Overseas S.A. and Safe Bulkers Management Limited, each a related party referred in this press release as "our Manager" and collectively "our Managers".
Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands of U.S. Dollars except for share and per share data)
Three-Months Period Six-Months Period
Ended June 30, Ended June 30,
------------------------ ------------------------
2015 2016 2015 2016
----------- ----------- ----------- -----------
REVENUES:
Revenues 33,022 27,189 66,309 52,817
Commissions (1,180) (949) (2,413) (1,877)
Net revenues 31,842 26,240 63,896 50,940
EXPENSES:
Voyage expenses (5,075) (1,180) (9,894) (4,971)
Vessel operating
expenses (12,576) (12,494) (26,925) (24,583)
Depreciation (11,602) (12,260) (22,701) (24,126)
General and
administrative
expenses (3,378) (3,653) (6,605) (7,628)
Loss on sale of assets - - - (2,750)
Loss from inventory
valuation (465) - (956)
Operating loss (1,254) (3,347) (3,185) (13,118)
OTHER (EXPENSE) / INCOME:
Interest expense (2,429) (4,864) (4,575) (9,685)
Other finance costs (155) (161) (763) (1,247)
Interest income 23 151 37 288
Loss on derivatives (202) (265) (1,358) (1,228)
Foreign currency
gain/(loss) 79 (109) 241 190
Amortization and write-
off of deferred
finance charges (511) (431) (893) (2,011)
Net loss (4,449) (9,026) (10,496) (26,811)
Less Preferred dividend 3,550 3,512 7,100 7,027
Net loss available to
common shareholders (7,999) (12,538) (17,596) (33,838)
Loss per share basic
and diluted (0.10) (0.15) (0.21) (0.40)
Weighted average number
of shares 83,470,867 83,571,957 83,466,487 83,557,124
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, 2015 June 30, 2016
------------------ ----------------
ASSETS
Cash, restricted cash and time
deposits 196,748 117,376
Other current assets 14,419 16,997
Assets held for sale 31,995 -
Vessels, net 988,161 1,032,894
Advances for vessel acquisition and
vessels under construction 68,356 38,390
Restricted cash non-current 7,837 10,284
Other non-current assets 2,115 1,565
Total assets 1,309,631 1,217,506
LIABILITIES AND EQUITY
Other current liabilities 11,535 9,605
Current portion of long-term debt 77,467 31,306
Liability directly associated with
assets held for sale 16,724 -
Long-term debt, net of current portion 569,399 576,314
Other non-current liabilities 360 959
Shareholders' equity 634,146 599,322
Total liabilities and equity 1,309,631 1,217,506
TABLE 1
RECONCILIATION OF ADJUSTED NET LOSS, EBITDA, ADJUSTED EBITDA AND ADJUSTED
LOSS PER SHARE
Three-Months Six-Months
Period Ended June 30, Period Ended June 30,
------------------------ ------------------------
(In thousands of U.S.
Dollars except for share
and per share data) 2015 2016 2015 2016
----------- ----------- ----------- -----------
Net Loss - Adjusted Net
Loss
Net loss (4,449) (9,026) (10,496) (26,811)
Plus Loss on sale of
assets - - - 2,750
Plus Loss on derivatives 202 265 1,358 1,228
Plus Loss from inventory
valuation 465 - 956 -
Plus Foreign currency
(gain)/loss (79) 109 (241) (190)
Adjusted Net loss (3,861) (8,652) (8,423) (23,023)
EBITDA - Adjusted EBITDA
Net loss (4,449) (9,026) (10,496) (26,811)
Plus Net Interest expense 2,406 4,713 4,538 9,397
Plus Depreciation 11,602 12,260 22,701 24,126
Plus Amortization 511 431 893 2,011
EBITDA 10,070 8,378 17,636 8,723
Plus Loss on sale of
assets - - - 2,750
Plus Loss on derivatives 202 265 1,358 1,228
Plus Loss from inventory
valuation 465 - 956 -
Plus Foreign currency
(gain)/loss (79) 109 (241) (190)
ADJUSTED EBITDA 10,658 8,752 19,709 12,511
Loss per share
Net loss (4,449) (9,026) (10,496) (26,811)
Less Preferred dividend 3,550 3,512 7,100 7,027
Net loss available to
common shareholders (7,999) (12,538) (17,596) (33,838)
Weighted average number
of shares 83,470,867 83,571,957 83,466,487 83,557,124
Loss per share (0.10) (0.15) (0.21) (0.40)
Adjusted Loss per share
Adjusted Net loss (3,861) (8,652) (8,423) (23,023)
Less Preferred dividend 3,550 3,512 7,100 7,027
Adjusted Net loss
available to common
shareholders (7,411) (12,164) (15,523) (30,050)
Weighted average number
of shares 83,470,867 83,571,957 83,466,487 83,557,124
Adjusted Loss per share (0.09) (0.15) (0.19) (0.36)
EBITDA, Adjusted EBITDA, Adjusted Net Income/(loss), Adjusted Net income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share are not recognized measurements under US GAAP.
Adjusted Net income/(loss) represents Net income/(loss) before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency. Adjusted Net income/(loss) available to common shareholders represents Adjusted Net income/(loss) less Preferred dividend.
EBITDA represents Net income/(loss) before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency. 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 loss on sale of assets, loss from inventory valuation, gain/(loss) on derivatives and gain/(loss) on foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.
EBITDA, Adjusted EBITDA, Adjusted Net income/(loss), 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 Six-Months
Period Ended Period Ended
June 30, June 30,
2015 2016 2015 2016
FLEET DATA
Number of vessels at period's
end 35 36 35 36
Average age of fleet (in
years) 5.83 6.35 5.83 6.35
Ownership days (1) 3,107 3,276 6,052 6,585
Available days (2) 3,107 3,265 5,992 6,555
Operating days (3) 3,092 3,209 5,958 6,374
Fleet utilization (4) 99.5% 98.0% 98.4% 96.8%
Average number of vessels in
the period (5) 34.14 36.00 33.44 36.18
AVERAGE DAILY RESULTS
Time charter equivalent rate
(6) $ 8,615 $ 7,675 $ 9,012 $ 7,013
Daily vessel operating
expenses (7) $ 4,048 $ 3,814 $ 4,449 $ 3,733
Daily general and
administrative expenses (8) $ 1,087 $ 1,115 $ 1,091 $ 1,158
_____________
1. Ownership days represents the aggregate number of days in a period
during which each vessel in our fleet has been owned by us.
2. Available days represents 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 represents 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 rate, or TCE rate, represents our charter
revenues less commissions and voyage expenses during a period divided by
the number of available days during such 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 for the relevant period by ownership days for such 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 for the relevant period by ownership days for
such 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 preferred stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D", respectively.
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.
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
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