Safe Bulkers(US:SB)2025-05-20 15:02Financial 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 [18] - Adjusted earnings per share for Q1 2025 were $0.05, compared to $0.20 in the same period last year [18] - 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, up 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, compared to 47 vessels in Q1 2024 [19] - The charter market for Capesize vessels is currently weaker, with average rates around $23,000, compared to $16,000 on the spot market [13] Market Data and Key Metrics Changes - The global drybulk demand is forecasted to decline by 1% to 0% in 2025, with a potential recovery of 1.5% to 2.5% in 2026 [11] - China's GDP growth is projected at 4% for 2025 and 2026, while India is expected to grow at 6.2% during the same period, impacting drybulk demand [12] 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 [5] - The fleet renewal strategy includes taking delivery of six newbuilds by Q1 2027, which are positioned to meet stringent greenhouse gas targets [9] - The company aims to leverage its majority Japanese-built fleet for energy efficiency and lower CO2 taxation [17] Management's Comments on Operating Environment and Future Outlook - The management noted a softer charter market due to seasonality, geopolitical uncertainties, and tariff concerns affecting global trade [4] - There is an expectation of continued supply growth outpacing demand, which may pressure freight rates [12] - The management remains cautious about further share repurchases, indicating that market conditions will dictate future actions [24][28] Other Important Information - The company declared a $0.05 dividend per share, marking the fourteenth consecutive quarterly dividend [13] - The company completed a share repurchase program of 3 million shares, maintaining a healthy cash position of around $122 million [20] Q&A Session Summary Question: Thoughts on future share buybacks given market conditions - Management indicated that buybacks depend on market conditions and stock price, suggesting they may initiate buybacks if the stock price remains depressed [24][25] Question: Current state of the sale and purchase market for ships - Management noted that S&P values for older ships have dropped around 25% and 10-15% for modern ships, making it unattractive to buy ships at this time [27] Question: Status of Capesize vessels and future chartering strategy - Management stated that they prefer to trade in the spot market unless period employment rates exceed $20,000, indicating a cautious approach to chartering [34][35]