Safe Bulkers(US:SB)2025-11-26 21:38Financial Performance - Safe Bulkers, Inc. reported net revenues of $73.1 million for Q3 2025, an increase from $65.7 million in Q2 2025[12]. - The company achieved a net income of $17.8 million in Q3 2025, compared to $1.7 million in Q2 2025, reflecting a significant recovery in profitability[12]. - Adjusted EBITDA for Q3 2025 was $36.1 million, up from $25.5 million in Q2 2025, indicating improved operational efficiency[12]. - Net revenues for the third quarter of 2025 decreased by 4% to $73.1 million compared to $75.9 million in the same period of 2024[61]. - Net income for the nine-month period ended September 30, 2025, was $26,726 thousand, down 65.7% from $78,015 thousand in the same period of 2024[73]. - Adjusted net income for the three-month period ended September 30, 2025, was $13,874 thousand, a decline of 26.5% from $18,983 thousand in the same period of 2024[75]. - EBITDA for the nine-month period ended September 30, 2025, was $93,107 thousand, a decrease of 35.6% compared to $144,523 thousand in the same period of 2024[75]. - The net cash provided by operating activities for the nine-month period ended September 30, 2025, was $69.1 million, down from $101.0 million in the same period of 2024[73]. Fleet and Vessels - As of November 21, 2025, the fleet consisted of 45 vessels with an average age of 10.3 years, including 12 vessels compliant with IMO GHG Phase 3 regulations[28]. - The company has an orderbook of six newbuilds, including two methanol dual-fueled vessels, scheduled for delivery in 2026 and 2027[29]. - The company operated 46.51 vessels on average during the third quarter of 2025, compared to 45.27 vessels in the same period of 2024[61]. - The number of vessels remained stable at 45 as of both September 30, 2024, and September 30, 2025[80]. - The company has a total fleet capacity of 4,559,000 Dwt, with various charter rates ranging from $11,750 to $29,543 per day[87]. - The fleet scrap value was $274.0 million as of September 30, 2025, and increased to $280.0 million by November 21, 2025[44][47]. Cash and Debt Management - Total cash as of Q3 2025 was $123.9 million, with undrawn revolving credit facilities amounting to $266.5 million, providing financial flexibility[19]. - As of September 30, 2025, the consolidated debt was $525.0 million, with a consolidated leverage of approximately 35%[37]. - The company had $123.9 million in cash and cash equivalents as of September 30, 2025, and $266.5 million in undrawn borrowing capacity[42]. - Cash and cash equivalents decreased to $115,246 thousand as of September 30, 2025, from $128,422 thousand as of December 31, 2024[74]. Operational Efficiency - The average daily Time Charter Equivalent (TCE) rate was $15,507 in Q3 2025, down from $17,108 in Q3 2024, showing market fluctuations[33]. - Daily vessel operating expenses decreased by 4% to $5,104 for the third quarter of 2025 compared to $5,311 for the same period in 2024[70]. - Interest expense decreased to $7.6 million in the third quarter of 2025 from $7.7 million in the same period of 2024, despite an increase in the weighted average loan outstanding[69]. - The average TCE for the third quarter of 2025 was $15,507, down from $17,108 in the same period of 2024, reflecting a weaker charter market[61]. Dividends and Shareholder Returns - A cash dividend of $0.05 per share was declared, reflecting the company's commitment to returning value to shareholders[11]. - The company declared a cash dividend of $0.05 per share on November 25, 2025, payable on December 19, 2025[49]. Market and Strategic Outlook - The company has experienced risks related to market volatility, fuel prices, and operational disruptions due to external factors[111]. - The company emphasizes the importance of monitoring changes in demand for dry-bulk vessels and competitive market factors[111]. - The company is actively expanding its fleet with new builds and acquisitions, focusing on long-term charters to secure revenue[87]. - The company has plans for future vessel acquisitions and further time charters as part of its growth strategy[111]. Charter Agreements - The average duration of time charters is approximately 3 to 10 years, providing stable revenue streams[90]. - The company has secured new charters with rates such as $17,250 for the Ammoxostos and $16,900 for the Rizokarpaso, both with charter periods extending into 2026[87]. - The charter agreement for MV Kanaris agreed to reimburse $634 per day for scrubber and BWTS costs, increasing the recognized daily charter rate[91]. - The company has a time charter agreement for 22 to 26 months at a gross daily rate of $20,000, with an option to extend to 34 to 36 months[108]. - A time charter for 8 to 11 months was set at a daily gross rate of $10,400 for the first 45 days, increasing to $14,700 thereafter[106]. - The company entered into a time charter for MV Ammoxostos for a duration of ten years with purchase options starting three years after the charter commencement[105]. - The charter agreement for MV Efrossini includes multiple extensions with varying daily rates, reflecting strategic flexibility in operations[107].