Release Date: May 20, 2025

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

Positive Points

• Safe Bulkers Inc (NYSE:SB) maintained a strong balance sheet with ample liquidity and a leverage of about 37%.

• The company completed a repurchase program of roughly 3% of its common stock, indicating confidence in its valuation.

• Declared a $0.05 per share dividend, marking the 14th consecutive quarterly dividend, representing a 5.5% dividend yield.

• Safe Bulkers Inc (NYSE:SB) has a young, technologically advanced fleet with a focus on energy efficiency and environmental performance.

• The company has a significant order book of six new builds, positioning it favorably for future growth and compliance with environmental regulations.

Negative Points

• Safe Bulkers Inc (NYSE:SB) faced a weaker capital market environment, leading to decreased revenue and earnings from cargo-fitted vessels.

• Operating expenses increased, impacting overall profitability.

• The dry bulk fleet is projected to grow faster than demand, potentially putting pressure on freight rates.

• The company reported a decrease in adjusted EBITDA and earnings per share compared to the same period in 2024.

• Market conditions, including geopolitical uncertainties and tariffs, pose risks to global trade and growth, affecting the company's outlook.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Sign with SB.

Q: How is Safe Bulkers approaching share buybacks given the current market conditions and recent completion of a buyback program? A: The company considers market conditions and stock price when deciding on buybacks. If the market is profitable and the stock price is depressed, they may initiate buybacks. They believe their stock is undervalued, making it a worthwhile investment compared to buying new ships. (Unidentified_2, CEO)

Q: Can you provide insights into the current sale and purchase market for ships and how it affects your strategy? A: S&P values have dropped by about 25% for older ships and 10-15% for modern ships. Current prices are not attractive for buying ships, so the company is focusing on new building deliveries and buybacks, waiting for better market conditions. (Unidentified_3, CFO)

Q: Was the 3 million share buyback program completed in the first quarter, and were there any repurchases post-quarter end? A: Yes, the 3 million share buyback program was completed within the first quarter, and no repurchases were made after the quarter ended. (Unidentified_3, CFO)

Q: What is the strategy for capesize vessels with medium-term contracts expiring soon? A: The company plans to trade vessels on the spot market if charter rates are not favorable for long-term contracts. They will consider period employment if rates exceed $20,000 for a couple of years. (Unidentified_3, CFO)