Safe Bulkers(SB) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $36.1 million, down from $41.3 million in Q3 2024, reflecting a decrease in revenues due to lower charter highs [14] - Adjusted earnings per share for Q3 2025 was $0.12, compared to $0.16 in the same period last year [14] - Average time charter equivalent (TCE) decreased to $15,507 in Q3 2025 from $17,108 in Q3 2024 [15] - Daily vessel running expenses decreased by 4% to $5,104 in Q3 2025 from $5,311 in Q3 2024 [15] Business Line Data and Key Metrics Changes - The company sold two of its oldest vessels as part of its fleet renewal strategy [3] - The fleet now includes 12 phased new vessels delivered from 2022 onwards, with 24 vessels environmentally upgraded [5] Market Data and Key Metrics Changes - The dry bulk fleet is projected to grow by about 3% on average in 2025 and 2026, with asset prices expected to rise in line with the freight market [4] - Global dry bulk demand growth is forecasted at 2% in 2026 and 1.5% in 2027, with grains and minor bulks being the best-performing sectors [7] Company Strategy and Development Direction - The company maintains a strong capital structure, providing flexibility in capital allocation and has declared a dividend of $0.05 per share [3] - Focus on fleet energy efficiency and lower CO2 taxation, with zero vessels rated D and E in carbon intensity for 2024 [11] Management Comments on Operating Environment and Future Outlook - Management noted a weaker charter market environment in Q3 2025 compared to the same period in 2024, with geopolitical factors contributing to market volatility [3][14] - The company anticipates an improving trade market rate due to a trade truce between the U.S. and China [6] Other Important Information - The company has a market cap of $496 million and maintains significant liquidity with $390 million in capital resources [11] - The company has a revenue backlog of $154 million, underscoring its capacity to support debt service and shareholder returns [17] Q&A Session Summary - No questions were raised during the Q&A session, and management concluded the call by thanking participants [18][20]