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: $0.12, compared to $0.16 in the same quarter last year.

Average Time Charter Equivalent (TCE): $15,507 for Q3 2025, down from $17,108 in Q3 2024.

Daily Vessel Operating Expenses: Decreased by 4% to $5,104, while daily running expenses (excluding dry docking) increased by 1% to $5,060.

Liquidity Position: $187 million in cash and $210 million in undrawn revolving credit facilities, totaling nearly $400 million in liquidity.

Dividend Declared: $0.05 per share, marking the 16th consecutive quarterly dividend.

2Strategic Updates and Business Highlights

The dry bulk market showed recovery compared to the previous quarter, with the company selling two older vessels as part of a fleet renewal strategy.

80% of the fleet consists of Japanese-built vessels, with an average fleet age of 10.1 years, which is younger than the global average.

The company has two dual fuel new builds scheduled for delivery in Q1 2027, enhancing its competitive edge in fuel efficiency.

A strong revenue backlog of $164 million was reported, with all Capesize vessels currently period chartered at an average daily rate of $24,800.

3Forward Guidance and Outlook

The global dry bulk demand is expected to grow by 2% in 2026 and 1.5% in 2027, with grains and minor bulks anticipated to perform well.

Despite a recent rebound in the freight market, supply growth is expected to outpace demand, potentially leading to market volatility.

The company remains optimistic about the impact of a U.S.-China trade truce on freight rates and overall demand.

4Bad News, Challenges, or Points of Concern

The charter market is weaker compared to Q3 2024, leading to decreased revenues and earnings.

Concerns regarding geopolitical tensions, high debt levels, and inflation could pose risks to global economic growth and demand for dry bulk shipping.

The anticipated decline in coal cargoes and limited growth in iron ore shipments may negatively affect demand in the coming years.

5Notable Q&A Insights

Management emphasized their commitment to maintaining a strong balance sheet and liquidity to navigate market volatility.

Questions from analysts focused on the impact of geopolitical tensions on operations and the company's strategy to mitigate risks associated with fluctuating demand.

The management reiterated their focus on fleet efficiency and sustainability, highlighting their proactive approach to adapting to changing market conditions. Overall, Safe Bulkers reported a mixed quarter with solid liquidity and strategic initiatives, yet faced challenges from a weaker charter market and broader economic uncertainties.