Safe Bulkers, Inc · NYSE:SB
Safe Bulkers — Q1 2020 Earnings Presentation
25 slides from Safe Bulkers's earnings presentation, Jun 9, 2020
Slide 1: Safe Bulkers Q1 2020 Earnings Presentation
SAFEBULISERS SB NYSE
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: Overview
SAFESULKERS OVERVIEW
Slide 4: COVID Response
COVID 19 RESPONSE • COVID-19 Management Plan incorporated measures to protect seafarers' and shore employees' health and well-being • Remote shore business operations from March 20, 2020 to May 4, 2020 • Zero COVID-19 incidents on board and ashore • Normal supply of bunkers and provisions at main po
Slide 5: Active in Environmental Investments and Dry-Dockings
ACTIVE IN ENVIRONMENTAL INVESTMENTS AND DRY-DOCKINGS From January 1, 2020 until May 29, 2020 in the peak of COVID-19 period • Six dry-dockings • Five Ballast Water Treatment Systems • Four scrubber installations • One vessel delivery 5
Slide 6: Proactive – Financing Activities
PROACTIVE – FINANCING ACTIVITIES • $53.1 million of additional liquidity, in Q1 refinancing • $10.0 million from revolving credit facility, in Q1 • $39.1 million of loan payments of 2020 & 2021 pushed back to 2022 & 2023, in Q2 • $36.4 million on draw-down in existing facilities, in Q2 6
Slide 7: Chartering – New Period Time Charters
CHARTERING – NEW PERIOD TIME CHARTERS three 5-year period time charters for non-scrubber fitted Panamax class vessels 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; one 11 to 13 months period tim
Slide 8: Industry Section
SAFESULKERS INDUSTRY SECTION
Slide 9: Demand - Charter Market Conditions
DEMAND - CHARTER MARKET CONDITIONS $25,000 $20,000 $15,000 BPI_82 adjusted 2019 $10,000 BPI_82 2020 • COVID – 19 Effect. $5,000 • Governmental Stimulus $0 across the Globe. May May Mar Apr Nov Aug Feb Feb Apr Sep Sep Jan Jan Jun Jul Jul Oct Oct Dec Dec $40,000 • China – US Phase 1. $35,000 $30,000 •
Slide 10: Demand – China Facing the Headwinds
DEMAND – CHINA FACING THE HEADWINDS - Chinese economy contracted by almost 7% in Q1. - China announced fiscal measures: • Fiscal stimulus package of almost 3.6tn Yuan (~$500bn); • Local government special bond quota raised to 3.75tn Yuan; • Issuance of 1tn Yuan of central government special bonds ta
Slide 11: Demand – China First to Recover
DEMAND – CHINA FIRST TO RECOVER • Jan-Apr Chinese iron ore imports up 4.9% • Brazil rapid spread of COVID-19 halted iron ore exports down 17% Y-O-Y causing depressed Capes market • Jan-Apr Chinese thermal coal and lignite imports up 46.6% • Jan-Apr Chinese soybean imports up 0.5% Gradual recovery of
Slide 12: Supply - Orderbook
SUPPLY - ORDERBOOK Capesize Orderbook (no of vessels) 100 6% 80 5.1% 5% 60 4% 3.4% 40 20 3% • Orderbook is declining after 2020. 2% 0 -20 YTD 1.2% Bal 2020 2021 2022 2023 1% • Slippage or cancelations due to COVID-19 creating 0.7% extensive delays; -40 0.0% 0% Capesize Scrapped %Δ • Ageing fleet, lo
Slide 13: Global Lockdowns And Mobility Restrictions
Global Lockdowns And Mobility Restrictions • Gradual recovery of global oil demand • Lockdowns ease will improve oil demand in H2 2020 • US oil demand down 23% Y-O-Y vs. down 31% YOY three weeks back • Gasoline demand improves strongly Source: DNB Markets Commodities 13
Slide 14: Oil & Fuels Prices
Oil & Fuels Prices • Global lock-down adversely affects Oil and Distillate fuels demand • IMO2020 fuel closely related to recovery of global economies • IMO2020 fuel prices vs. HSFO fuel prices differential (Hi5)* shrunk • Hi5* spread correlated to Brent prices • Brent prices recovery may lead to wi
Slide 15: Environmental Social Responsibility – Environmental Investments
ENVIRONMENTAL SOCIAL RESPONSIBILITY ENVIRONMENTAL INVESTMENTS Completed Expected Expected The aggregate cost of installations until installations in installations in May 29, 2020 Q2 2020 Q3 2020 our environmental investments as of BWTS 25 4 4 March 31, 2020, was Scrubbers 18* 1 1 $55.8 million. Down
Slide 16: Market Takeaways
MARKET TAKEAWAYS • Repetitive seasonality patterns intensified by COVID-19; • Supply side controlled by delays in shipyards and ports, diminished scrapping and environmental investments • Chinese fiscal stimulus package may signal V-shape market recovery • Declining Orderbook 2020-onwards • Decarbon
Slide 17: Safe Bulkers Takeaways
SAFE BULKERS TAKEAWAYS • $127.2 million liquidity provides flexibility in an unstable environment • Ability for long term period charters evidence of excellent charterer relations • Ability to complete our environmental investments evidence of technical expertise • Smoothened debt profile for the ne
Slide 18: Financial Overview
SAFESULKERS FINANCIAL OVERVIEW
Slide 19: Liquidity as of May 29, 2020
Liquidity as of May 29, 2020 (million USD) $120 $90 $127.2 $60 $108.0 $30 $19.2 $0 Cash and Bank time deposits Restricted Cash Liquidity 19
Slide 20: Debt Profile Following Refinancing
Debt profile following refinancing in millions USD $200 $185.4 $171.8 Lower loan payments in 2020 and 2021 $120.0 $113.6 $100 $95.7 $93.1 Total Total $78.5 $72.4 $610.1 $646.5 $65.1 $66.8 $51.3 $44.1 $41.6 $26.6 $14.4 $16.2 $0 2020 2021 2022 2023 2024 2025 2026 2027 Repayment schedule March 31, 2020
Slide 21: 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 $4,615 $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 $1,184
Slide 22: 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 $5,103 $4,809 $4,771 $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 2018 Q1 2019 Q2 2
Slide 23: Quarterly Financial Highlights
Quarterly financial highlights TCE RATE ADJUSTED EPS $60 NET REVENUE $50 $12,000 $0.03 $0.00 $40 $9,000 2019 2020 -$0.05 $30 $48.3 $45.7 $6,000 $12,280 -$0.13 $9,089 $20 -$0.10 $3,000 in US$ $10 $0 -$0.15 2019 2020 2019 2020 in million US$ in US$ DAILY OPEX DAILY OPEX EXCLUDING DRY-DOCKING AND ADJUS
Slide 24: Fleet Data and TCE Reconciliation
Three-Months Period Ended March 31, FLEET DATA 2019 2020 Number of vessels at period’s end 41 41 Average age of fleet (in years) 8.58 9.58 Ownership days 3,690 3,731 Available days 3,690 3,577 Average number of vessels in the period 41.00 41.00 AVERAGE DAILY RESULTS Time charter equivalent rate $ 12
Slide 25: 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