SB-PC — Safe Bulkers, Inc.

Summary of Safe Bulkers Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Adjusted EBITDA: $36.1 million, down from $41.3 million in Q3 2024.
• Adjusted Earnings Per Share (EPS): $0.12, compared to $0.16 in Q3 2024.
• Average Time Charter Equivalent (TCE): $15,507, down from $17,108 in Q3 2024.
• Average Daily Vessel Operating Expenses: Decreased by 4% to $5,104.
• Liquidity Position: $187 million in cash and $210 million in undrawn revolving credit facilities, totaling nearly $400 million in capital resources.
• Dividend: Declared at $0.05 per share, marking the 16th consecutive quarterly dividend.

2. Strategic Updates and Business Highlights:

• Fleet Renewal: Sold two older vessels as part of a strategy to modernize the fleet.
• Environmental Initiatives: 0 vessels rated D & E in carbon intensity, with ongoing efforts in fleet energy efficiency and sustainability.
• Market Position: 80% of the fleet consists of Japanese-built vessels, which are generally more efficient.
• Future Fleet Composition: By Q1 2027, 35% of the fleet will consist of Phase 3 vessels, enhancing competitiveness.

3. Forward Guidance and Outlook:

• Market Recovery: Anticipation of an improving freight market due to a truce in U.S.-China trade tensions, with projected global dry bulk demand growth of 2% in 2026 and 1.5% in 2027.
• Supply-Demand Dynamics: Supply growth is expected to outpace demand, leading to potential market volatility.
• Revenue Visibility: $164 million in contracted revenue backlog, primarily from Capesize vessels.

4. Bad News, Challenges, or Points of Concern:

• Weaker Charter Market: Revenue decreased due to lower charter hires and earnings from scrubber-fitted vessels.
• Geopolitical Risks: Ongoing geopolitical tensions and policy uncertainties could negatively impact global economic growth and dry bulk demand.
• Market Fragmentation: Expected fragmentation in the market due to geopolitical reasons may lead to increased volatility.

5. Notable Q&A Insights:

• Management emphasized the importance of maintaining a strong balance sheet and liquidity to navigate market challenges.
• There was discussion on the impact of the global fuel standard postponement on decarbonization strategies.
• Analysts inquired about the potential effects of rising recycling volumes on fleet dynamics and asset prices.

Overall, Safe Bulkers reported a mixed quarter with declining earnings amidst a recovering market, while maintaining a strong liquidity position and focusing on fleet modernization and sustainability initiatives.