Summary of Safe Bulkers Q3 2025 Earnings Call

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.