Safe Bulkers(SB)2025-02-19 21:00Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of 50.7 million in Q4 2023, indicating a decline in profitability [29] - Adjusted earnings per share for Q4 2024 were 0.25 in the same period of 2023 [29] - Net income for Q4 2024 was 27.6 million in Q4 2023 [31] Business Line Data and Key Metrics Changes - The charter market weakened in Q4 2024, impacting revenues and profitability, with average daily charter rates for Capes at 9,000 [5][7] - The company operated an average of 45.9 vessels in Q4 2024, earning an average TCE of 18,321 in Q4 2023 [31] Market Data and Key Metrics Changes - The Cape market segment has been declining throughout Q4 2024, with expectations of a softer trade market in the coming quarters due to supply growth outpacing demand [6][9] - Global dry market demand is forecasted to fall by 1% in 2025, with a subsequent growth of 2.5% in 2026, while minor bulks are expected to perform best [11] Company Strategy and Development Direction - The company is focused on capital allocation towards its new build program, improving operational efficiency, and enhancing its environmental footprint [5][20] - The fleet renewal strategy includes investments in older vessels and the acquisition of new eco-ships, aiming for a stable average fleet age [21][22] Management Comments on Operating Environment and Future Outlook - Management anticipates a relatively softer trade market due to increasing supply and emphasizes the importance of decarbonization and energy-efficient new builds [9][20] - The company maintains a strong capital structure with a leverage of about 35% and a liquidity position of approximately 0.05 per share, rewarding common shareholders despite the challenging market conditions [5][31] - The fleet consists of 46 vessels, with 24 having undergone environmental upgrades, and the company has a significant contracted backlog of $205 million [24] Q&A Session Summary Question: Regarding the share buyback program - Management indicated that buyback programs are evaluated based on market conditions and may be paused if the trade market is weak [35][38] Question: On asset values in the current market - Management noted that older ships have seen a price drop of about 25%, while younger ships have dropped around 15%, but buying power may stabilize prices in the second half of the year [44][46]