Slide 1: Safe Bulkers (NYSE: SB)
SAFEBULISERS SB NYSE
Slide 2: Forward Looking Statements; Management Team
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: Chartering – New Period Time Charters
CHARTERING – NEW PERIOD TIME CHARTERS Six 5-year period time charters for non-scrubber fitted Panamax class vessels: -3 at a daily gross charter hire $11,750 for the first 2 years and BPI-82 5TC* times 97% less $2,150, for the next 3 years – delivery 3rd quarter 2020; -3 at a daily gross charter r
Slide 4: Industry Section
SAFESULKERS INDUSTRY SECTION
Slide 5: Demand - Charter Market Conditions
DEMAND - CHARTER MARKET CONDITIONS $25,000 Kamsarmax 2020 vs 2019 $20,000 $15,000 • Resumption of economic activity BPI_82 adjusted 2019 after lockdowns. $10,000 BPI_82 2020 $5,000 • Increased volumes of Iron Ore, Coal and Grain trade $0 May May Mar Nov Apr Apr Aug Feb Feb Sep Sep Jan Jan Jun Jul Ju
Slide 6: Demand – China Recovery
China GDP DEMAND – CHINA RECOVERY Quarterly change% China’s GDP indicates a V-Shape recovery. • 7% contraction during Q1. • 3.2% GDP growth in Q2 indicate a V-shape. China’s industrial indicators show continued recovery. • 4.8% growth YoY in June in industrial output vs. decrease 15% in lockdown. •
Slide 7: Demand – China Recovery
DEMAND – CHINA RECOVERY China Iron Ore Imports • 16.8% increase in June ‘20 m-o-m & 35.3% y-o-y. • 9.3% increase in Jan-Jun ‘20. • Forecasts of major Brazilian imply substantial increase in 2H20 volumes. China Thermal Coal and Lignite Imports • 14.6% increase in Jun ‘20 m-o-m & 23.1% y-o-y. • 34.5%
Slide 8: Supply - Orderbook
SUPPLY - ORDERBOOK Capesize Orderbook (no of vessels) 80 5% • Minimal Orderbook after 2020. 3.8% 3.9% 4% 60 4% 40 3% 3% • Slippage or cancelations due to COVID-19 20 1.9% 2% creating extensive delays. 0 2% YTD Bal 2020 2021 2022 2023 1% -20 0.6% 1% • Ageing fleet, low freight rates and -40 0.0% 0% C
Slide 9: Environmental Social Responsibility; Environmental Investments
ENVIRONMENTAL SOCIAL RESPONSIBILITY ENVIRONMENTAL INVESTMENTS Completed Expected Expected The aggregate cost of installations as of installations in installations in June 30, 2020 Q3 2020 Q4 2020 our environmental investments as of BWTS 26 5* 1** June 30, 2020, was Scrubbers 19 1 - $58.2 million. Do
Slide 10: Market Takeaways
MARKET TAKEAWAYS • Chinese fiscal stimulus package may signal V-shape market recovery; • Declining Orderbook 2020-onwards; • Decarbonization discussions not favor orders; • Slippage, ageing fleet, low freight rates and increased environmental Capex may enhance scrapping activity; • Global lock-down
Slide 11: Safe Bulkers Takeaways
SAFE BULKERS TAKEAWAYS • $111.3 million liquidity provides flexibility in an unstable environment • Long term period charters evidence of excellent charterer relations • Ability to complete our environmental investments evidence of technical expertise • Smoothened debt profile for the next 2 years e
Slide 12: Financial Overview
SAFESULKERS FINANCIAL OVERVIEW
Slide 13: Liquidity as of July 31, 2020
Liquidity as of July 31, 2020 (million USD) $120 $90 $111.3 $60 $89.9 $30 $19.4 $2.0 $0 Cash and Bank time deposits Restricted Cash Revolving credit facility Liquidity 14
Slide 14: Debt profile following refinancing
Debt profile following refinancing in millions USD $200 $171.9 Lower loan payments in 2020 and 2021 $120.0 $113.6 $100 Total $630.3 $72.4 $66.8 $41.6 $27.8 $16.2 $0 2020 2021 2022 2023 2024 2025 2026 2027 2020 2021 2022 2023 2024 2025 2026 2027 15
Slide 15: Lean operations: Daily OPEX and G&A expenses
Lean operations: Daily OPEX (1) and G&A (2) expenses Our Operating expenses include Our G&A expenses include our our dry-docking expenses directors compensation $5,103 $4,809 $4,771 $4,729 $4,615 $4,448 $4,353 $4,132 $4,151 $4,153 $3,893 $3,830 $3,914 $3,596 $1,425 $1,384 $1,374 $1,363 $1,414 $1,371
Slide 16: Daily TCE vs. daily OPEX
Daily TCE(1) vs. daily OPEX (2) $13,875 $13,707 $13,225 $13,265 $13,311 $11,944 $11,999 $12,280 $11,970 $10,419 $9,978 $9,417 $9,089 $8,094 $5,103 $4,809 $4,771 $4,729 $4,353 $4,615 $4,448 $3,893 $3,914 $4,132 $4,151 $4,153 $3,596 $3,830 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 201
Slide 17: Quarterly financial highlights
Quarterly financial highlights TCE RATE ADJUSTED EPS $60 NET REVENUE $50 $12,000 $0.00 -$0.01 2019 2020 $40 $9,000 -$0.05 $30 $45.5 $48.3 $6,000 $11,970 -$0.16 $8,094 -$0.10 $20 $3,000 in US$ $10 $0 -$0.15 2019 2020 2019 2020 in million US$ in US$ DAILY OPEX DAILY OPEX EXCLUDING DRY-DOCKING AND ADJU
Slide 18: Fleet data and TCE rate reconciliation
Three-Months Period Ended Six-Months Period Ended June 30, June 30, 2019 2020 2019 2020 FLEET DATA Number of vessels at period’s end 41 42 41 42 Average age of fleet (in years) 8.83 9.60 8.83 9.60 Ownership days 3,731 3,806 7,421 7,537 Available days 3,626 3,669 7,316 7,246 Average number of vessels
Slide 19: Company Contact
Company Contact Dr. Loukas Barmparis President Safe Bulkers, Inc. Tel: +30 2111 888 400 +357 25 887 200 E-mail: directors@safebulkers.com Investor Relations/Media Contact Judit Csepregi Investor Relations Advisor Capital Link Inc. New York, USA Tel: +1 (212) 661-7566 Fax:+1 (212) 661-7526 E-mail: sa