Safe Bulkers, Inc · NYSE:SB
Safe Bulkers — Q1 2023 Earnings Presentation
16 slides from Safe Bulkers's earnings presentation, May 11, 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 EARNINGS PRESENTATION MV CLIMATE RESPECT EEDI-PHASE 3 – IMO NOx TIER III POST-PANAMAX DELIVERED JULY 2022 MV CLIMATE ETHICS EEDI-PHASE 3 – IMO NOx TIER III POST-PANAMAX DELIVERED JANUARY 2023 MV VASSOS EEDI-PHASE 3 – IMO NOx TIER III KAMSARMAX DELIVERED MAY 2022 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in the Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company’s growth strategy and measures to im
Slide 3: Market performance
Market performance All 8 Capes in period time charters BCI 5TC 2.6 years average o/s charter duration $45.000 $24,021 average daily charter hire $179.6M secured contracted revenues $40.000 excluding Scrubber benefit $35.000 $30.000 $19.768 $25.000 $20.000 $15.000 $10.000 $5.000 $0 Jan Feb Mar Apr Ma
Slide 4: Demand – Commodities
Demand – Commodities Global uncertainty and monetary squeeze reflect challenges on global trade CRB Commodity Index • Global dry bulk demand growth Bimco Mar-23 projection: +2% Driven mostly by China’s economic recovery sharp price drop following • Iron ore: 1% drop y/y Q1-23 288p. June 2022 histori
Slide 5: Supply side – Ageing - Orderbook - Fleet mix
Supply side – Ageing - Orderbook - Fleet mix • Historically low orderbook • Shipyard building capacity is mainly covered by other sectors’ orders • Forthcoming environmental emissions regulations prevent new orders and favor accelerating scrapping • Energy efficient designs will have an advantage ov
Slide 6: Global Fleet Phase Profile
Global Fleet Phase Profile 4500 • Only ~30% of dry bulk fleet is expected to comply with EEXI without requiring modifications or upgrades 3977 4000 3851 • Majority of dry bulk vessels are ‘Phase 0’ & ‘Phase I’ 3500 • Ideal supply side fundamentals further supported as environmental regulations impac
Slide 7: Market takeaways
Market takeaways Increased industry wide volatility Ageing fleet and low orderbook may Weak dry bulk demand ahead of driven by geopolitical disruptions and prolong upcycle, potentially currently global growth concerns tight monetary policies on early stages of demand recovery Demand for technologica
Slide 8: SB at a glance
SB at a glance Safe Bulkers Inc. (NYSE:SB) U.S. listed dry bulk company since 2008 FUNDAMENTALS NEWBUILDING GREENER FLEET TRACK RECORD • SB (NYSE:SB) listed 2008 PROGRAM • 44 dry bulk vessels • Consistent cooperation • 5 cents dividend per • 3 IMO GHG Phase 3 - NOx • 100% with BWTS with established
Slide 9: Liquidity - Visibility of cash flows - Capex - Low leverage
Liquidity - Visibility of cash flows - Capex - Low leverage 7-EXISITING VESSELS UNENCUMBERED 33% CONSOLIDATED 450 20 SCRUBBER FITTED LEVERAGE7 VESSELS +3 SCRUBBERS ON ORDER Debt (5); 400 ~$25.9M8 ADDITIONAL $430.2 SCRUBBER REVENUE CAPACITY Scrap value (6); €100M UNSECURED DEBT $389,4 350 IN 5Y BOND
Slide 10: Dividend policy
Dividend policy ✓ 5 CENTS DIVIDEND PER SHARE OF COMMON STOCK ✓ 6TH CONSECUTIVE COMMON DIVIDEND DECLARATION SINCE Q4-2021 ✓ ACTIVE SB COMMON SHARES BUY BACK PROGRAM ✓ 8.3 MILLION COMMON SHARES REPURCHASED AS OF MAY 5, 2023 ✓ AUTHORIZED REPURCHASE PROGRAM UP TO 10 MILLION COMMON SHARES IN TOTAL ✓ TERM
Slide 11: Safe Bulkers Investment rationale
Safe Bulkers Investment rationale Assets focused on fleet environmental Leverage, liquidity, balance sheet, lean competitiveness Energy efficient Japanese-built fleet and operations, contracted revenue backlog Among the few companies with runs an extensive fleet environmental offer financial flexibi
Slide 12: Chartering performance – Lean operations – Management alignment
Chartering performance – Lean operations – Management alignment OPEX INCLUDE G&A INCLUDES ALL 0% MANAGEMENT DRY DOCKING MANAGEMENT FEES & ALL COMMISSION ON EXPENSES COMPANY CHARTERING ADMINISTRATION FEES CHARTERING PERFORMANCE- LEAN OPERATIONS EXAMPLE OF ALIGNMENT – CHARTERING COMMISIONS 30.000 6,0%
Slide 13: Quarterly financial highlights
Quarterly financial highlights TCE RATE ADJUSTED EPS $90 NET REVENUES $0,30 $24.000 $70 $20.000 $0,20 $16.000 $50 $0,24 $77,7 $12.000 $0,10 $0,10 $66,8 $21.352 $30 $8.000 $15.760 $4.000 $0,00 $10 $0 2022 2023 2022 2023 2022 2023 in US$ in million US$ in US$ DAILY OPEX DAILY OPEX EXCLUDING DRY-DOCKIN
Slide 14: Quarterly operational highlights
Quarterly operational highlights Three-Months Period Ended March 31, FLEET DATA 2022 2023 Number of vessels at period end 40 44 Average age of fleet (in years) 10.48 10.59 Ownership days 3,559 3,945 Available days 3,438 3,865 Average number of vessels in the period 39.54 43.83 AVERAGE DAILY RESULTS
Slide 15: Low Break even Q1 2023
Low Break even Q1 2023 $15.760 $5.132 $418 $1.493 $1.421 $507 $1.506 $5.283 TCE (1) Daily Opex excluding dry- Daily dry-docking and pre- Daily G&A (4) Daily Interest Expense (5) Daily Preferred Dividend Daily Common Dividend Daily Free Cash Flow (8) docking and delivery delivery expenses (3) (6) (7)
Slide 16: Thank you
Thank you INVESTOR RELATIONS/MEDIA CONTACT COMPANY CONTACT Dr. Loukas Barmparis Paul Lampoutis President Vice-President Safe Bulkers, Inc. Capital Link Inc. Tel: +30 2111 888 400 New York, USA Fax: +357 25 887 200 Tel: +1 (212) 661-7566 directors@safebulkers.com Fax:+1 (212) 661-7526 safebulkers@cap