Safe Bulkers, Inc. Reports Second Quarter 2025 Results and Declares Dividend on Common Stock
MONACO, July 29, 2025 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the "Company") (NYSE:SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three and six-month periods ended June 30, 2025. The Board of Directors (the "Board") of the Company also declared a cash dividend of $0.05 per share of outstanding common stock.
Financial highlights
In million U.S. Dollars except per share data
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Six Months 2025
Six Months 2024
Net revenues
65.7
64.3
71.5
75.9
78.5
130.1
160.2
Net income
1.7
7.2
19.4
25.1
27.6
8.9
52.9
Adjusted Net income1
3.0
7.8
18.1
19.0
20.3
10.7
44.5
EBITDA2
24.2
28.8
41.9
47.4
49.2
53.1
97.1
Adjusted EBITDA2
25.5
29.4
40.7
41.3
41.8
54.9
88.7
Earnings per share basic and diluted3
0.00
0.05
0.16
0.22
0.24
0.05
0.45
Adjusted earnings per share basic and diluted3
0.01
0.05
0.15
0.16
0.17
0.06
0.37
Average daily results in U.S. Dollars
Time charter equivalent rate4
14,857
14,655
16,521
17,108
18,650
14,756
18,397
Daily vessel operating expenses5
6,607
5,765
5,047
5,311
6,254
6,192
5,840
Daily vessel operating expenses excluding dry-docking and pre-delivery expenses6
5,604
5,546
4,787
4,999
5,089
5,575
5,063
Daily general and administrative expenses7
1,809
1,608
1,650
1,680
1,595
1,710
1,553
______________________________1 Adjusted Net income is a non-GAAP measure. Adjusted Net income represents Net income before impairment and loss on vessels held for sale, gain/(loss) on sale of assets, gain/(loss) on derivatives, early redelivery income/(cost), other operating expense and gain/(loss) on foreign currency. See Table 3. 2 EBITDA is a non-GAAP measure and represents Net income plus net interest expense, tax, depreciation and amortization. See Table 3. Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain/(loss) on derivatives, early redelivery income/(cost), other operating expenses and gain/(loss) on foreign currency. See Table 3.3 Earnings per share ("EPS") and Adjusted EPS represent Net Income and Adjusted Net income less preferred dividend divided by the weighted average number of shares respectively. See Table 3.4 Time charter equivalent ("TCE") rate represents charter revenues less commissions and voyage expenses divided by the number of available days. See Table 4.5 Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by the number of ownership days for such period. See Table 4.6 Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by the number of ownership days for such period. See Table 4.7 Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by the number of ownership days for such period. See Table 4.
Selected financial highlights
In million U.S. Dollars
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Total cash8
125.3
127.7
135.9
92.6
81.6
Undrawn revolving credit facilities9
187.5
148.9
140.2
225.0
179.5
Unsecured debt10
116.5
107.1
102.6
110.2
105.6
Secured debt11
436.1
412.6
434.0
379.6
385.5
Total debt12
552.6
519.7
536.6
489.8
491.1
Number of vessels at period end
47
46
46
45
45
Average age of fleet
10.26
10.23
9.99
9.95
9.99
Net debt per vessel13
9.1
8.5
8.7
8.8
9.1
______________________________8 Total Cash represents Cash and cash equivalents plus Time deposits and Restricted cash.9 Undrawn borrowing capacity under revolving reducing credit facilities.10 Unsecured debt represents the five-year tenor unsecured non-amortizing bond, net of deferred financing costs, maturing in February 2027. 11 Secured debt represents Long-term debt plus current portion of long-term debt, net of deferred financing costs.12 Total Debt represents Unsecured debt plus Secured debt. 13 Net debt per vessel represents Total Debt less Total Cash divided by the number of vessels at period's end.
Management Commentary
Dr. Loukas Barmparis, President of the Company, said: "During the second quarter of 2025, we experienced a softer market compared to the previous year, which impacted our revenues and profitability. We remain focused on fleet renewal, strong liquidity, comfortable leverage and long-term value creation, rewarding our shareholders with a dividend of five cents per share of common stock."
Environmental Social Governance - 2024 Sustainability Report
In June 2025, the Company issued its 2024 Sustainability Report detailing its environmental, social and governance ("ESG") practices and its vision for addressing environmental concerns. The report highlights the Company's efforts to meet the needs of the communities it serves and to strengthen its governance framework. The 2024 Sustainability Report has been prepared in accordance with the Global Reporting Initiative ("GRI") Sustainability Reporting Guidelines and incorporates recommendations from the Sustainability Accounting Standards Board ("SASB") for maritime transport, alongside additional indicators that are materially important to the Company and its stakeholders. The report is available for download and can be accessed from the Company's website at: www.safebulkers.com/sustainability2024
New credit facilities
In April 2025, the Company entered into a new credit facility of up to $84.3 million with a financial institution to be consummated in the third quarter of 2025. The facility will be used to finance the purchase of four vessels currently under sale and leaseback financings with third parties, the relevant purchase options of which were exercised during 2024 and to refinance an existing credit facility secured by three vessels with the same financial institution. The new facility will be secured by the aforementioned seven vessels and will mature in 2030. The credit facility agreement contains financial covenants in line with the existing loan and credit facilities of the Company.
In July 2025, the Company entered into a $75 million sustainability-linked, five-year senior secured revolving credit facility. Secured by six vessels, this facility refinances an existing credit facility with the same financial institution, originally due to mature in December 2026. The facility aligns financing with our corporate sustainability agenda by incorporating a mechanism that adjusts the interest margin based on independently verified performance related to fleet carbon intensity index, measured against annual sustainability performance targets. It also contains financial covenants in line with the existing loan and credit facilities of the Company.
Environmental Investments - Dry-Dockings
The Company is gradually renewing its fleet with newbuilds designed to meet the International Maritime Organization (the "IMO") regulations related to the Phase 3 reduction of greenhouse gas emissions (the "IMO GHG Phase 3") and nitrogen oxide emissions (the "IMO NOx Tier III") while selectively selling older vessels. As of July 18, 2025, the IMO GHG Phase 3 NOx Tier III newbuild program consisted of 18 vessels in total, including contracts for two methanol dual-fueled Kamsarmax newbuilds. Twelve of such newbuild vessels have already been delivered to the Company. The aggregate capital expenditure for the newbuild program is approximately $662.1 million, with $486.2 million, or 73%, already paid.
Furthermore, the Company is continuing the environmental upgrade program of its existing fleet, targeting increased energy efficiency and lower fuel consumption, which is expected to reduce GHG emissions. As of July 18, 2025, 26 existing vessels had been upgraded. The cost of low-friction paint applications that are part of the environmental upgrades is recorded as operating expenses, while the cost of energy saving devices is capitalized and recorded as capital expenditures.
As of July 18, 2025, the Company expects 30 days down time for scheduled dry-dockings for the third quarter, and 58 down time days for the fourth quarter of 2025.
Fleet Update
As of July 18, 2025, we had a fleet of 47 vessels consisting of 8 Panamax, 14 Kamsarmax, 17 Post-Panamax and 8 Capesize class vessels, with a total carrying capacity of 4.7 million dwt and an average age of 10.3 years. Our fleet includes 12 IMO GHG Phase 3 - NOx Tier III ships built in 2022 or later and 11 eco-ships built in 2014 or later. Furthermore, we have 21 vessels equipped with exhaust gas cleaning devices ("Scrubbers''), including all of our Capesize class vessels, which generate additional earnings under charter agreements, providing for variable consideration based on bunker consumption.
Orderbook
As of July 18, 2025, we had an orderbook of six IMO GHG Phase 3 - NOx Tier III Kamsarmax class newbuilds, two of which are methanol dual-fueled. Four of those vessels are scheduled to be delivered in 2026 and two in 2027. As of July 18, 2025, the aggregate capital expenditure for our orderbook was approximately $252.4 million, of which $76.5 million has been paid and $175.9 million remains outstanding.
Newbuild deliveries
In April 2025, the Company took delivery of the Japanese-built Kamsarmax class Efrossini, its twelfth IMO GHG Phase 3 - NOx Tier III newbuild.
Vessel Sale
On July 23, 2025, the Company entered into an agreement for the sale of the Pedhoulas Leader, a 2007 Japanese-built, Kamsarmax class dry-bulk vessel, for a gross sale price of $12.5 million and a forward delivery date to her new owners between August and October 2025. The sale is part of the Company's ongoing fleet renewal strategy, aimed at improving environmental performance and maintaining competitiveness under increasingly stringent regulatory environment.
Chartering our Fleet
Our vessels are used to transport bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes. We intend to employ our vessels under both period time charters and spot time charters, according to our assessment of market conditions. Our customers represent some of the world's largest consumers of marine drybulk transportation services. Period time charters provide us with visible and relatively stable cash flows, while the vessels we deploy in the spot market allow us to maintain our flexibility in low charter market conditions as well as provide an opportunity for a potential upside in our revenue when charter market conditions improve. The chartering of our vessels is arranged by our Managers14 without any management commission.
During the second quarter of 2025, we operated 46.75 vessels on average, earning a TCE of $14,857, compared to 45.43 vessels earning a TCE of $18,650 during the same period in 2024. As of July 18, 2025, we employed, or had contracted to employ: (i) 11 vessels in the spot time charter market (with original duration of up to three months) and (ii) 37 vessels in the period time charter market (with original duration in excess of three months). Of the vessels chartered in the period time charter market, 9 have an original duration of more than two years. As of July 18, 2025, the average remaining charter duration across our fleet was 0.5 years and we had contracted revenue of approximately $171.5 million, net of commissions, from our non-cancellable spot and period time charter contracts excluding the additional compensation related to the use of Scrubbers.
As of July 18, 2025, seven of our Capesize class vessels were chartered under period time charters, four of which have remaining charter durations exceeding one year. The average remaining charter duration of our Capesize class vessels was 1.9 years and the average daily charter hire was $24,464, resulting in a contracted revenue of approximately $135.0 million, net of commissions and excluding the Scrubber benefit. Our contracted fleet employment profile as of July 18, 2025, is presented in Table 1 below.
Table 1: Contracted employment profile of fleet ownership days as of July 18, 2025
2025 (remaining)
46
%
2025 (full year)
75
%
2026
10
%
2027
6
%
Debt
As of June 30, 2025, our consolidated debt before deferred financing costs was $560.6 million, including the €100 million - 2.95% p.a. fixed coupon, non-amortizing, unsecured bond issued in February 2022, maturing in February 2027. Our consolidated leverage15 was approximately 38% and our weighted average interest rate during the three-month period ended June 30, 2025 was 5.69% inclusive of the applicable loan margin. During the three-month period ended June 30, 2025, we made scheduled principal payments of $6.8 million and drawings of $30.0 million under our existing revolving facilities. The repayment schedule of our debt as of June 30, 2025, is presented in Table 2 below:
Table 2: Debt repayment Schedule as of June 30, 2025(in USD million)
Ending December 31,
2025
2026
2027
2028
2029
2030
2031
2032-2034
Total
Secured debt
47.3
47.6
60.9
78.3
46.1
52.9
59.6
50.5
443.2
Unsecured debt
—
—
117.4
—
—
—
—
—
117.4
Total debt
47.3
47.6
178.3
78.3
46.1
52.9
59.6
50.5
560.6
Fleet scrap value16
312.2
______________________________14 Safety Management Overseas S.A., Safe Bulkers Management Monaco Inc., and Safe Bulkers Management Limited, each of which is referred to herein as "our Manager" and collectively "our Managers".15 Consolidated leverage is a non-GAAP measure and represents total consolidated liabilities divided by total consolidated assets. Total consolidated assets are based on the market value of all vessels, as provided by independent broker valuers on quarter-end, owned or leased on a finance lease taking into account their employment, and the book value of all other assets. This measure assists our management and investors by increasing the comparability of our leverage from period to period.16 The fleet scrap value is calculated on the basis of fleet aggregate light weight tons ("lwt"), excluding any held for sale vessels, and market scrap rate of $435.0/lwt ton (Clarksons data) on June 30, 2025 and $405.0/lwt ton (Clarksons data) on July 18, 2025.
Liquidity, capital resources, capital expenditure requirements and debt as of June 30, 2025
As of June 30, 2025, we had a fleet of 47 vessels and an orderbook of six newbuilds. In relation to our orderbook, we paid $76.5 million and had $175.9 million of remaining capital expenditure requirements.
We had $125.3 million in cash, cash equivalents, bank time deposits, and restricted cash, and had $187.5 million in undrawn borrowing capacity available under existing revolving reducing credit facilities. Furthermore, we had contracted revenue of approximately $158.6 million, net of commissions, from our non-cancellable spot and period time charter contracts excluding the Scrubber benefit, and additional borrowing capacity in connection with the financing of one unencumbered vessel and six newbuilds upon their delivery.
In relation to capital expenditure requirements of the six newbuilds, the schedule of payments was $9.5 million in 2025, $109.9 million in 2026 and $56.5 million in 2027.
The scrap value17 of our fleet was $312.2 million and the outstanding consolidated debt before deferred financing costs was $560.6 million, including the unsecured bond.
Liquidity, capital resources, capital expenditure requirements and debt as of July 18, 2025
As of July 18, 2025, we had a fleet of 47 vessels and an orderbook of six newbuilds. In relation to our orderbook, we paid $76.5 million and had $175.9 million of remaining capital expenditure requirements.
We had $104.0 million in cash, cash equivalents, bank time deposits, restricted cash, and had $239.2 million in undrawn borrowing capacity available under existing revolving reducing credit facilities. Furthermore, we had contracted revenue of approximately $171.5 million, net of commissions, from our non-cancellable spot and period time charter contracts excluding the Scrubber benefit, and additional borrowing capacity in connection with the financing of one unencumbered vessel and six newbuilds upon their delivery.
In relation to capital expenditure requirements of the six newbuilds, the schedule of payments was $9.5 million in 2025, $109.9 million in 2026 and $56.5 million in 2027.
The scrap value17 of the fleet was $290.6 million and the outstanding consolidated debt before deferred financing costs was $535.9 million, including the unsecured bond.
Dividend Policy
On July 29, 2025, the Board of the Company declared a cash dividend on the Company's common stock of $0.05 per share which is payable on September 5, 2025, to the shareholders of record of the Company's common stock at the close of trading on August 21, 2025. As of July 18, 2025, the Company had 102,320,099 shares of common stock issued and outstanding.
On July 2, 2025, the Board of the Company declared a cash dividend of $0.50 per share on each of its Series C preferred shares (NYSE:SB) and Series D preferred shares (NYSE:SB) for the period from April 30, 2025, to July 29, 2025. The dividend will be paid on July 30, 2025, to all shareholders of record as of July 18, 2025, of the Series C Preferred Shares and of the Series D Preferred Shares, respectively.
On May 19, 2025, the Board of the Company declared a cash dividend on the Company's common stock of $0.05 per share which was paid on June 20, 2025, to the shareholders of record of the Company's common stock at the close of trading on June 6, 2025.
In April 2025, the Board of the Company declared a cash dividend of $0.50 per share on each of its Series C preferred shares (NYSE:SB) and Series D preferred shares (NYSE:SB) for the period from January 30, 2025, to April 29, 2025. The dividend was paid on April 30, 2025, to all shareholders of record as of April 17, 2025, of the Series C Preferred Shares and of the Series D Preferred Shares, respectively.
The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of the Company. There is no guarantee that the Company's Board will determine to issue cash dividends in the future. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, fleet employment profile, financial condition, cash requirements, and available sources of liquidity; (ii) decisions in relation to the Company's growth, fleet renewal, and leverage strategies; (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends; (iv) restrictive covenants in the Company's existing and future debt instruments; and (v) global economic and financial conditions.
War in Ukraine
As a result of the war between Russia and Ukraine that commenced in February 2022, the US, the EU, the UK, Switzerland and other countries have announced unprecedented levels of sanctions and other measures against Russia and certain Russian entities and nationals. We intend to comply with these requirements and will address their potential consequences. We do not have any Ukrainian or Russian crews, and our vessels currently do not sail in the Black Sea. While we conduct only limited operations in Russia, we will continue to monitor the situation to assess whether the conflict could have any impact on our operations or financial performance.
Trade disruption in the Red Sea and conflicts in the Middle East
Due to the attacks on merchant vessels in the southern Red Sea, there has been a disruption in the maritime trade and supply chains through the Mediterranean Sea and the Suez Canal. Since the beginning of this disruption, we have diverted our fleet from sailing in the Red Sea region. The conflicts in the Middle East represent additional geopolitical and economic risks that could increase the volatility of the global economy. While our vessels currently do not sail in the Red Sea, we will continue to monitor the situation to assess the potential impact on our operations.
Conference Call
On Wednesday, July 30, 2025, at 10:00 A.M. Eastern Time, the Company's management team will host a conference call to discuss the Company's financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 877 405 1226 (US Toll-Free Dial In) or +1 201 689 7823 (US and Standard International Dial In), or +0 800 756 3429 (UK Toll-Free Dial In). Please quote "Safe Bulkers" to the operator and/or conference ID 13754164. Click here for additional participant International Toll-Free access numbers.
Alternatively, participants can register for the call using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.
Slides and Audio Webcast:
A live webcast of the conference call and accompanying slides, will be available through the Company's website, where it will also be archived for later access. To listen to the archived audio file, visit our website at www.safebulkers.com and click on Events & Presentations. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Management Discussion of Second Quarter 2025 Results
During the second quarter of 2025, we operated in a weaker charter market environment compared to the same period in 2024, with decreased revenues due to lower charter hires, decreased earnings from scrubber-fitted vessels and increased operating expenses. During the second quarter of 2025, we operated 46.75 vessels on average, earning an average TCE of $14,857 compared to 45.43 vessels earning an average TCE of $18,650 during the same period in 2024. The Company's net income for the second quarter of 2025 was $1.7 million, down from $27.6 million during the same period in 2024. The main factors driving the change in net income are as follows:
Net revenues: Net revenues decreased by 16% to $65.7 million for the second quarter of 2025, compared to $78.5 million for the same period in 2024. The decline was primarily due to lower revenues from charter hires and decreased revenues earned by our scrubber-fitted vessels.
Vessel operating expenses: Vessel operating expenses increased by 9% to $28.1 million for the second quarter of 2025 compared to $25.9 million for the same period in 2024. The increase was mainly due to the following factors: (i) higher costs for spare parts, stores, and provisions, which rose to $6.4 million for the second quarter of 2025, from $5.0 million for the same period in 2024 as a result of the increased average number of vessels operating during the second quarter of 2025 and the increased supplies during the second quarter of 2025 for completed and upcoming dry-dockings; (ii) increased crew wages and expenses which grew to $10.9 million for the second quarter of 2025, from $10.1 million for the same period in 2024, mainly due to the increased average number of vessels operating during the second quarter of 2025; and (iii) higher repair and maintenance expenses, which increased to $6.9 million from $7.1 million for the same period in 2024 as a result of the increased average number of vessels operating during the second quarter of 2025. The Company expenses dry-docking and pre-delivery costs as incurred, which vary from period to period. Excluding dry-docking costs and pre-delivery expenses of $4.3 million and $4.8 million for the second quarter of 2025 and 2024, respectively, vessel operating expenses increased by 13% to $23.8 million during the second quarter of 2025 from $21.1 million during the same period of 2024. Dry-docking expenses are related to the number of dry-dockings in each period while pre-delivery expenses are related to the number of newbuild deliveries and second-hand acquisitions in each period. Some shipping companies may defer and amortize dry-docking expenses, while many do not include dry-docking expenses within vessel operating expenses but present these separately.
Depreciation: Depreciation expenses increased by $1.0 million or 7% to $15.1 million for the second quarter of 2025, compared to $14.1 million for the same period in 2024, due to the delivery of newbuild vessels in 2025 and 2024 and the sale of older vessels in 2024.
Foreign currency gain/(loss): Foreign currency loss amounted to $6.9 million for the second quarter of 2025, compared to a gain of $0.5 million for the same period in 2024, due to the unrealized loss on the valuation of the €100 million bond.
Gain/(Loss) on derivatives: Gain on derivatives amounted to $5.7 million for the second quarter of 2025, compared to $0.3 million for the same period in 2024, due to unrealized gain on foreign currency agreements.
Voyage expenses: Voyage expenses increased to $4.3 million for the second quarter of 2025, from $4.1 million for the same period in 2024 mainly due to increased bunker consumption costs for scrubber fitted vessels under charter agreements, which provide for variable consideration based on the bunker consumption.
Gain on sale of assets: No vessels were sold during the second quarter of 2025. Gain on sale of assets for the second quarter of 2024 amounted to $6.6 million, as a result of a gain from the sale of the Maritsa and the Panayiota K.
Interest expense: Interest expense increased to $7.8 million in the second quarter of 2025 from $7.6 million for the same period in 2024, as the net result of the increased weighted average loan outstanding of $549.8 million during the second quarter of 2025, compared to $499.9 million for the same period in 2024 and the decreased weighted average interest rate of 5.69% during the second quarter of 2025, compared to 6.43% for the same period in 2024, affected by the lower USD rates environment.
Daily vessel operating expenses17: Daily vessel operating expenses, calculated by dividing vessel operating expenses by the ownership days of the relevant period, increased by 6% to $6,607 for the second quarter of 2025 compared to $6,254 for the same period in 2024. Daily vessel operating expenses excluding dry-docking and predelivery expenses increased by 10% to $5,604 for the second quarter of 2025 compared to $5,089 for the same period in 2024.
Daily general and administrative expenses17: Daily general and administrative expenses, which include management fees payable to our Managers and daily company administration expenses, increased by 13% to $1,809 for the second quarter of 2025, compared to $1,595 for the same period in 2024, due to the increase in the management fees payable to our Managers and the effect of the appreciation of the EUR versus the USD.
_____________________________17 See table 4
Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(In thousands of U.S. Dollars except for share and per share data)
Three-Month Period EndedJune 30,
Six-Month Period EndedJune 30,
2024
2025
2024
2025
REVENUES:
Revenues
81,947
68,689
166,922
135,904
Commissions
(3,399
)
(2,944
)
(6,705
)
(5,811
)
Net revenues
78,548
65,745
160,217
130,093
EXPENSES:
Voyage expenses
(4,115
)
(4,342
)
(8,975
)
(8,561
)
Vessel operating expenses
(25,852
)
(28,107
)
(49,165
)
(51,975
)
Depreciation
(14,138
)
(15,108
)
(28,491
)
(29,796
)
General and administrative expenses
(6,592
)
(7,696
)
(13,072
