Safe Bulkers(US:SB)2025-05-20 15:00Financial Data and Key Metrics Changes - The adjusted EBITDA for Q1 2025 was $29.4 million, down from $64.3 million in Q1 2024, indicating a significant decline in profitability [19] - Adjusted earnings per share for Q1 2025 were $0.05, compared to $0.20 in Q1 2024, reflecting a decrease in earnings [19] - Average daily time charter equivalent decreased to $14,655 in Q1 2025 from $18,158 in Q1 2024 [19] - Daily vessel operating expenses increased by 6% to $5,765 in Q1 2025 from $5,442 in Q1 2024 [19] Business Line Data and Key Metrics Changes - The company operated an average of 46 vessels in Q1 2025, down from 47.08 vessels in Q1 2024 [19] - Daily vessel earning expenses, excluding dry docking and pre-delivery expenses, increased by 10% to $5,546 in Q1 2025 from $5,038 in Q1 2024 [19] Market Data and Key Metrics Changes - The drybulk fleet is projected to grow by about 2.8% on average in 2025 and 2026, with Panamax vessels comprising the largest share [7] - Global drybulk demand is forecasted to decline by 1% to 0% in 2025, followed by growth of 1.5% to 2.5% in 2026 [12] - China's GDP growth is projected to be 4% in 2025, indicating a slowdown in consumption [13] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, operational excellence, and environmental performance in line with IMO regulations [6] - The company aims to increase shareholder wealth through capital allocation towards newbuilds and improving operational efficiency [6] - The company has a strong emphasis on sustainability, with a commitment to energy-efficient designs and a young fleet [10][17] Management's Comments on Operating Environment and Future Outlook - Management noted a softer charter market due to seasonality, geopolitical uncertainties, and tariff concerns affecting global trade [5] - The company anticipates a continued focus on fleet decarbonization and energy-efficient new buildings as supply growth is expected to outpace demand [11] - Management expressed caution regarding the freight market, indicating that they will not rush into share buybacks until market conditions improve [30] Other Important Information - The company declared a $0.05 per share dividend, marking the fourteenth consecutive quarterly dividend [14] - The company completed a share repurchase program of 3 million common shares [15] - The company maintains a healthy cash position of around $122 million and has $128 million available in committed revolving credit facilities [21] Q&A Session Summary Question: Thoughts on future share buybacks given market conditions - Management indicated that buybacks depend on market conditions and stock price, stating that they believe their stock is undervalued [24][25] Question: Current state of the sale and purchase market for ships - Management noted that S&P values have dropped by around 25% for older ships and 10-15% for modern ships, making it unattractive to buy ships at this time [28] Question: Status of the 3 million share buyback program - Management confirmed that the 3 million share buyback program was completed during the first quarter [32] Question: Appetite for trading Capesize vessels on spot versus time charters - Management stated they prefer to trade in the spot market unless period employment rates exceed $20,000, at which point they would consider long-term contracts [34][35]