Safe Bulkers, Inc. Q2 FY2025 earnings call

• Declared a $0.05 per share common stock dividend, representing a 4.7% dividend yield.
• Took delivery of the 12th newbuild and sold one of the oldest vessels, continuing fleet renewal.
• Fleet includes 12 Phase 3 vessels (delivered 2022 onwards), 11 eco vessels, with an average age of 10.3 years (below global average of 12.6).
• Drybulk fleet supply projected to grow ~2.8% in 2025-2026; order book at ~11% of current fleet. Asset prices expected to pick up, recycling volumes rise. Only 9% of drybulk order book ready for alternative fuels.
• Freight market rebounded in Q3; 7 Capes period chartered with average remaining duration ~2 years and daily rate $24,500, totaling ~$135M in contracted revenue from Capes.
• Maintained strong liquidity ($313M) and comfortable leverage (~38%). Achieved 0 vessels in D and E carbon intensity CII rating for 2024.

In the second quarter of 2025, Safe Bulkers experienced a softer market impacting revenues and profitability. Adjusted EBITDA for the quarter was $25.5 million, down from $41.8 million in the same period of 2024. Adjusted earnings per share were $0.01 compared to $0.17 in Q2 2024. Average time charter equivalent was $14,857 in Q2 2025 vs $18,650 in Q2 2024. Daily vessel operating expenses increased: total daily expenses were $6,607 in Q2 2025 vs $6,254 in Q2 2024, and excluding dry-docking and predelivery, it was $5,604 vs $5,089. The company's revenue contribution is entirely from its drybulk operations.

• Supply growth expected to outpace demand. Freight market rebounded in Q3. Seven Capes period chartered with strong cash flow visibility.
• Strong liquidity ($315M as of July 18, 2025) and comfortable leverage provide flexibility for capital allocation and fleet expansion.
• Contracted revenue from noncancelable spot and period time charter contracts totaled $171M net of commissions.

• Softer market impacted revenues and profitability. Geopolitical tensions and trade wars pose policy uncertainty and down risk to global growth and inflation.
• Supply growth expected to outpace demand. Older vessels (25% of global fleet >15 years) may need recycling, with ship recycling projected to double in next 10 years.
• Low dual-fuel order book in drybulk segment; only 2 dual-fuel vessels on order for delivery in Q1 2027.