• Leverage: Approximately 35%.
• Dividend: $0.05 per share declared.
• Contracted Revenue: $145 million from caps alone; total contracted revenue of about $205 million.
• Debt: Consolidated debt of $545 million.
• Liquidity: Approximately $276 million.
• Net Income: $19.4 million for Q4 2024, compared to $27.6 million in Q4 2023.
• Adjusted EBITDA: $40.7 million for Q4 2024, compared to $50.7 million in Q4 2023.
• Average Time Charter Equivalent (TCE): $16,521 for Q4 2024, compared to $18,321 in Q4 2023.
• Cash Position: About $130 million as of February 14, 2025.
• Available Revolving Credit Facilities: $165 million.
• Weighted Average Interest Rate: 6.12% for consolidated debt.
• Adjusted Earnings Per Share (EPS): $0.15 for Q4 2024, compared to $0.25 in Q4 2023.

• Warning! GuruFocus has detected 3 Warning Sign with SB.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Safe Bulkers Inc (NYSE:SB) maintains a strong capital structure with a leverage of about 35% and declared a $0.05 per share dividend, rewarding common shareholders.
• The company has a considerable degree of cash flow visibility with $145 million in contracted revenue from its capesize vessels alone.
• Safe Bulkers Inc (NYSE:SB) is focused on capital allocation towards its new build program and improving operational efficiency and environmental footprint.
• The company has a strong liquidity position with approximately $276 million, providing flexibility in capital allocation.
• Safe Bulkers Inc (NYSE:SB) has a significant contracted backlog of $205 million, ensuring future revenue streams.

Negative Points

• The capital market weakened during the fourth quarter of 2024, impacting Safe Bulkers Inc (NYSE:SB)'s revenues and profitability.
• The company experienced decreased revenues due to lower charter rates and increased operating expenses.
• Global dry bulk demand is expected to fall by 1% in 2025, which could impact Safe Bulkers Inc (NYSE:SB)'s market performance.
• China's slower growth may hinder demand for dry bulk commodities, affecting Safe Bulkers Inc (NYSE:SB)'s operations.
• The freight market is expected to remain relatively soft over the following quarters as supply grows faster than demand.

Q & A Highlights

Q: Can you explain the rationale behind the recent share buyback program and its subsequent termination? A: Loukas Barmparis, President, explained that the company initiates buyback programs when they perceive the stock market price as undervalued compared to the net asset value. The termination was influenced by market conditions, and the program could be revived in the future. Konstantinos Adamopoulos, CFO, added that the decision also considers the current freight market, which can affect the timing and continuation of buybacks.

Q: How do you view the current asset values in the market given the recent freight market softness? A: Loukas Barmparis noted that while asset values have been affected, particularly for older ships, there remains significant buying interest, especially from sectors that have recently profited, like tankers. He anticipates that asset values may not decline significantly unless the freight market continues to weaken.

Q: What is the company's strategy regarding fleet renewal and environmental upgrades? A: Loukas Barmparis highlighted the company's focus on renewing and upgrading their fleet to improve operational efficiency and environmental performance. This includes investments in new builds and eco-friendly vessels, which are expected to provide better financial prospects and lower fuel consumption.

Q: Can you provide an update on the company's financial position and liquidity? A: Konstantinos Adamopoulos reported that Safe Bulkers maintains a strong financial position with a comfortable leverage of 35% and liquidity of approximately $276 million. The company has a contracted revenue of about $205 million, providing flexibility for capital allocation and future growth.

Q: How does the company plan to navigate the current market conditions and future projections? A: Loukas Barmparis stated that the company remains focused on capital allocation towards new builds and improving operational efficiency. They anticipate a softer freight market in the near term but are positioning their fleet to compete effectively within environmental regulations and to create long-term shareholder value.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.