Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international
provider of marine drybulk transportation services, announced today
its unaudited financial results for the three and six months period
ended June 30, 2020.
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Financial
highlights |
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In million U.S. Dollars except per share data |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Six Months 2020 |
Six Months 2019 |
Net Revenues |
48.3 |
|
|
45.7 |
|
|
53.2 |
|
50.7 |
|
45.5 |
|
|
94.0 |
|
|
93.8 |
|
Net (loss)/income |
(13.9 |
) |
|
(9.9 |
) |
|
3.6 |
|
5.2 |
|
1.8 |
|
|
(23.8 |
) |
|
7.2 |
|
Adjusted Net (loss)/ income 1 |
(13.3 |
) |
|
(10.2 |
) |
|
3.5 |
|
5.9 |
|
1.7 |
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|
(23.5 |
) |
|
7.3 |
|
EBITDA |
5.7 |
|
|
9.7 |
|
|
23.1 |
|
24.5 |
|
21.2 |
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|
15.4 |
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|
45.8 |
|
Adjusted EBITDA 2 |
6.3 |
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9.4 |
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23.1 |
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25.1 |
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21.0 |
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15.7 |
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|
45.9 |
|
(Loss)/Earnings per share basic and diluted 3 |
(0.16 |
) |
|
(0.12 |
) |
|
0.01 |
|
0.02 |
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(0.01 |
) |
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(0.29 |
) |
|
0.01 |
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Adjusted (loss)/earnings per share basic and diluted 3 |
(0.16 |
) |
|
(0.13 |
) |
|
0.01 |
|
0.03 |
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(0.01 |
) |
|
(0.29 |
) |
|
0.01 |
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Average Daily
results in U.S. Dollars |
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Time charter equivalent rate 4 |
8,094 |
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|
9,089 |
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|
13,707 |
|
13,311 |
|
11,970 |
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|
8,585 |
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|
12,126 |
|
Daily vessel operating expenses 5 |
4,729 |
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|
4,771 |
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5,103 |
|
4,448 |
|
4,615 |
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|
4,750 |
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|
4,385 |
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Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses 6 |
4,207 |
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|
4,285 |
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|
4,540 |
|
4,053 |
|
4,283 |
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|
4,246 |
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|
4,217 |
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Daily general and administrative expenses 7 |
1,374 |
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|
1,371 |
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|
1,414 |
|
1,363 |
|
1,366 |
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|
1,373 |
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|
1,370 |
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In million U.S.
Dollars |
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Total Cash 8 |
118.8 |
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109.3 |
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120.1 |
|
87.0 |
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90.2 |
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Liquidity 9 |
119.8 |
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145.7 |
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178.0 |
|
87.0 |
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90.2 |
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Total Debt 10 |
625.4 |
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605.2 |
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601.0 |
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563.8 |
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568.5 |
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1 Adjusted Net (loss)/income is a non-GAAP
measure. Adjusted Net (loss)/income represents Net (loss)/income
before gain/(loss) on derivatives, early redelivery cost, loss on
inventory valuation and gain/(loss) on foreign currency. See Table
4.2 EBITDA is a non-GAAP measure and represents Net (loss)/income
plus net interest expense, tax, depreciation and amortization. See
Table 4. Adjusted EBITDA is a non-GAAP measure and represents
EBITDA before gain/(loss) on derivatives, early redelivery cost,
loss on inventory valuation and, gain/(loss) on foreign currency.
See Table 4.3 (Loss)/Earnings per share and Adjusted
(Loss)/Earnings per share represent Net Income and Adjusted Net
income less preferred dividend and mezzanine equity measurement
divided by the weighted average number of shares respectively. See
Table 4.4 Time charter equivalent rate, or TCE rate, represents
charter revenues less commissions and voyage expenses divided by
the number of available days. See Table 5.5 Daily vessel operating
expenses are calculated by dividing vessel operating expenses for
the relevant period by ownership days for such period. See Table
5.6 Daily vessel operating expenses excluding dry-docking and
pre-delivery expenses are calculated by dividing vessel operating
expenses excluding dry-docking and pre-delivery expenses for the
relevant period by ownership days for such period. See Table 5.7
Daily general and administrative expenses are calculated by
dividing general and administrative expenses for the relevant
period by ownership days for such period. See Table 5.8 Total Cash
represents Cash and cash equivalents plus Time deposits and
Restricted cash.9 Liquidity represents Total Cash plus contracted
undrawn borrowing capacity under revolving credit facilities and
secured commitments.10 Total Debt represents Long-term debt plus
Current portion of long-term debt, net of deferred financing
costs.
Management Commentary
Dr. Loukas Barmparis, President of the Company,
said: ‘Our results for the second quarter were negatively impacted
by the reduction in charter rates that resulted from the COVID-19
outbreak. In the second quarter we entered into six five year
period time charters that had premium rates in the first two years
followed by floating rates at a discount to the market for three
years. These charters have enhanced our liquidity for the next two
years. At quarter end we had liquidity of $119.8 million
which we believe provides a significant cushion during the
difficult conditions our industry is experiencing due to the
pandemic.’
Update on Covid-19, Company's actions
and status
The COVID-19 pandemic has had significant impact
on the shipping industry and our seafarers. Port lockdowns were
imposed globally and certain ports that had opened have
subsequently closed again for crew changes. Availability of air
transportation for crew is also limited. The Company is working at
all levels to find solutions without restricting our trading
ability, focusing on crew changes despite the ongoing hurdles and
travel restrictions imposed by governments around the world. The
Company has taken measures to protect its seafarers' and shore
employees' health and well-being, to keep its vessels sailing,
servicing its charterers and to mitigate and address the risks,
effects and impact of COVID-19 on our operations and financial
performance.
The charter market has improved during the
second quarter and as a result we were able to enter into new
contracts at improved rates compared to the contracts entered in
the first quarter of 2020 that have substantially impacted
negatively our financial results in the second quarter of 2020.
However, an estimate of the extent to which COVID-19 will impact
the Company’s results of operations and financial condition and of
the long-term impact of the pandemic on the dry bulk industry, our
operations and financial performance will depend on future
developments, which are highly uncertain and cannot be predicted,
including new information which may emerge concerning the severity
of the virus and the actions to contain or treat its impact and
political implications that could further impact world trade and
global growth among others and therefore cannot be made at this
time.
Common stock issuance and repurchase
program of common and preferred shares
As of July 31, 2020, the Company as part of
an ongoing repurchase program, has repurchased 3,624,283 shares of
common stock all of which have been cancelled. As of July 31,
2020, the Company had 102,122,399 shares of common stock issued and
outstanding.
Chartering our fleet
Our vessels are used to transport bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes. We intend to employ our vessels on both period time
charters and spot time charters, according to our assessment of
market conditions, with some of the world’s largest consumers of
marine drybulk transportation services. The vessels we deploy on
period time charters provide us with visible and relatively stable
cash flow, while the vessels we deploy in the spot market allow us
to maintain our flexibility in low charter market conditions and
have a potential upside in our revenue when charter market
conditions improve.
As of July 31, 2020 as compared to May 29, 2020,
the Company has further increased its employment profile mainly
with 5-year period time charter contracts to 25% from 17% for 2021
and to 19% from 12% for 2022, of its ownership days.
More specifically, following three 5-year period
time charters for non-scrubber fitted Panamax class vessels
contracted in May at a daily charter rate of $11,750 for the
first two years , in July the Company entered into three further
new 5-year period time charters for non-scrubber fitted Panamax
class vessels at a gross daily charter rate of $13,800 for the
first two years, all with a forward delivery date in the
third quarter of 2020. For the remaining three years, all six
contracts have a gross daily charter rate linked to the Baltic
Exchange Kamsarmax Index (“BPI-82 5TC”) times 97% minus $2,150.
During the second quarter of 2020, we operated
41.82 vessels on average earning a TCE11of $8,094 compared to 41.00
vessels earning a TCE of $11,970 during the same period in 2019.
Our contracted employment profile is presented below in Table
1.
Table 1: Contracted employment profile of
fleet ownership days as of July 31, 2020
2020 (remaining) |
47 |
% |
2020 (full year) |
78 |
% |
2021 |
25 |
% |
2022 |
19 |
% |
Our detailed employment profile is presented in
Table 6. The scrubber benefit for scrubber fitted vessels is
calculated on the basis of fuel consumption of heavy fuel oil and
the price differential between the cost of heavy fuel oil and
compliant fuel for the specific voyage and is either presented as
part of the daily charter hire in Table 6, or in cases where it can
not be calculated is not part of the stated daily charter hire.
Vessel acquisition -
Orderbook
In April 2020, the Company took delivery from an
unaffiliated seller of a Japanese built, 85,000 dwt, resale,
newbuild vessel named Troodos Oak. As of July 31, 2020, the
Company does not have any other newbuilds on order or capital
expenditure requirements in relation to orderbook.
Liquidity
As of June 30, 2020, we had liquidity of $119.8
million consisting of $99.1 million in cash and bank time deposits,
$19.7 million in restricted cash and $1.0 million available under
the unsecured revolving credit facility.
As of July 31, 2020, we had liquidity of
$111.3 million consisting of $89.9 million in cash and bank time
deposits, $19.4 million in restricted cash, and $2.0 million
available under the unsecured revolving credit facility.
Debt Profile - Leverage
As of June 30, 2020, our consolidated debt
before deferred financing costs was $630.3 million and our
consolidated leverage12 was 68% versus 63% as of March 31,
2020.
The loan repayment schedule of the Company as of
June 30, 2020, is presented below in Table 2.
Table 2: Loan repayment Schedule on an
annual basis( in USD millions)
|
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
Total |
June 30, 2020 |
27.8 |
72.4 |
113.6 |
120.0 |
171.9 |
66.8 |
16.2 |
41.6 |
630.3 |
__________________
11 Time Charter Equivalent (“TCE”) rate
represents charter revenues net of commissions and voyage expenses
divided by the number of available days.12 Consolidated leverage is
a non-GAAP measure and represents total consolidated liabilities
divided by total consolidated assets. Total consolidated assets are
based on the market value of all vessels (before scrubber
installation), owned or leased on a finance lease taking into
account their employment, and the book value of all other assets.
This measure assists our management and investors by increasing the
comparability of our leverage from period to period.
Interest rate derivatives
During the second quarter of 2020, the Company
entered into seven pay-fixed, receive-variable interest rate
derivative contracts with inception ranging from May 2020 to August
2020 and with maturity ranging from August 2023 to June 2025 at
fixed rates ranging from 0.275% to 0.50%, for an aggregate notional
amount of $77.6 million.
In July 2020, the Company entered into eight
pay-fixed, receive-variable interest rate derivative contracts
commencing July to August 2020 with maturity ranging from May 2025
to August 2025 at fixed rates ranging from 0.33% to 0.40% for an
aggregate notional amount of $80.0 million.
Environmental Social Responsibility -
Environmental investments
In the context of our Environmental Social
Responsibility policies the Company is undertaking environmental
investments mainly in scrubbers and ballast water treatment
systems. As of June 30, 2020, the Company has completed the
installation of 19 scrubbers out of 20 scheduled and of 26 Ballast
Water Treatment Systems (‘BWTS’) out of 41 scheduled with aggregate
cost as of quarter end of $58.2 million.
The scheduled number and estimated down-time for
dry-dockings and environmental investments as of June 30, 2020, is
presented in Table 3.
Table 3: Scheduled number and estimated
down-time for dry-dockings and environmental
investments.
|
Down time in Days ** |
|
Q3 2020 |
Q4 2020 |
Number of vessels |
5* |
1** |
Total down time |
137 |
25 |
* Installation of one scrubber and of five
BWTS to be performed concurrently with the scheduled
dry-dockings.** Installation of BWTS to be performed concurrently
with the scheduled dry-docking.
Dividend Policy
The Company has not declared a dividend on the
Company’s common stock for the second quarter of 2020. The Company
had 102,122,399 shares of common stock issued and outstanding as of
July 31, 2020.
The Company declared a cash dividend of $0.50
per share on each of its 8.00% Series C Cumulative Redeemable
Perpetual Preferred Shares (NYSE: SB.PR.C) and 8.00% Series D
Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D)
for the period from April 30, 2020 to July 29, 2020, which was paid
on July 30, 2020 to the respective shareholders of record as of
July 23, 2020.
A Company’s subsidiary declares a cash dividend
on a quarterly basis on each of such subsidiary’s 2.95% Series A
Cumulative Redeemable Perpetual Preferred Shares (‘Series A
shares’) to the respective shareholders of record, presented under
the caption “Mezzanine Equity” in the condensed consolidated
balance sheets. The aggregate cash dividend declared for the Series
A shares for the period from April 1, 2020 to June 30, 2020, which
was paid on June 30, 2020, was $0.1 million. The aggregate cash
dividend declared for the Series A shares for the period from July
1, 2020 to September 30, 2020, payable on September 30, 2020, is
$0.1 million.
The declaration and payment of dividends, if
any, will always be subject to the discretion of the Board of
Directors of the Company. The timing and amount of any dividends
declared will depend on, among other things: (i) the Company’s
earnings, financial condition and cash requirements and available
sources of liquidity; (ii) decisions in relation to the Company’s
growth and leverage strategies; (iii) provisions of Marshall
Islands and Liberian law governing the payment of dividends; (iv)
restrictive covenants in the Company’s existing and future debt
instruments; and (v) global economic and financial conditions.
Conference Call
On Wednesday, August 5, 2020 at 09:30 A.M.
Eastern Time, the Company’s management team will host a conference
call to discuss the Company’s financial results.
Participants should dial into the call 10
minutes before the scheduled time using the following numbers: 1
(877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll
Free Dial In) or +44 (0) 2071 928592 (Standard International
Dial In). Please quote Safe Bulkers to the operator.
A telephonic replay of the conference call will
be available until August 12, 2020 by dialing 1 (866) 331-1332 (US
Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44
(0) 3333 009785 (Standard International Dial In).Access Code:
1859591#
Slides and Audio Webcast
There will also be a live, and then archived,
webcast of the conference call, available through the Company’s
website (www.safebulkers.com). Participants in the live webcast
should register on the website approximately 10 minutes prior to
the start of the webcast.
Management Discussion of Second Quarter
2020 Results
During the second quarter of 2020, we operated
in a weaker charter market environment compared to the same period
in 2019. This was evident from the reduced TCE of $8,094 for the
second quarter of 2020, compared to $11,970 during the same period
in 2019. A number of charter contracts entered in previous periods
expired and were replaced by contracts with lower charter hire amid
the COVID 19 outbreak. However, net revenues were supported by the
benefit from scrubber fitted vessels despite the reduced price
differential between heavy fuel oil and compliant fuels, due to oil
price war, and by revenue contributed by the newbuild delivery.
Voyage expenses substantially increased due to increased vessel
repositioning expenses, higher loss on bunkers sales due to oil
price war and consumption costs for scrubber fitted vessels. As a
result, net loss for the second quarter of 2020 amounted to $13.9
million compared to net income of $1.8 million during the same
period in 2019. In more detail the net loss resulted from the
following main factors:
Net revenues: Net revenues increased by 6% to
$48.3 million for the second quarter of 2020, compared to $45.5
million for the same period in 2019 despite a relatively weak
charter market due to COVID 19 restrictions, mainly due to the
additional revenues earned by our scrubber fitted vessels and the
additional vessel delivered in 2020.
Vessel operating expenses: Vessel operating
expenses increased by 5% to $18.0 million for the second quarter of
2020 compared to $17.2 million for the same period in 2019, mainly
as a result of: i) dry docking expense of $1.8 million related to
two full and two partially completed dry dockings including two
Capes during the second quarter of 2020, compared to $1.2 million
related to three dry dockings for the same period of 2019 and ii)
pre-delivery expenses of $0.2 million related to the newbuild
vessel delivered during the second quarter of 2020, while
there were no vessel deliveries for the same period of 2019. The
Company expenses dry-docking and pre-delivery costs as incurred,
which costs may vary from period to period. Excluding
dry-docking and pre-delivery costs of $2.0 and $1.2 million for the
second quarter of 2020 and 2019, respectively, vessel operating
expenses remained stable at $16.0 million for the second quarter of
2020 and 2019. Dry-docking expense is related to the number of
dry-dockings in each period and pre-delivery expenses to the number
of vessel deliveries and second hand acquisitions in each period.
Certain other shipping companies may defer and amortize dry-docking
expense and many do not include dry-docking expenses within vessel
operating expenses costs and present these separately.
Depreciation: Depreciation increased by 8% to
$13.5 million for the second quarter of 2020, compared to $12.4
million for the same period in 2019, as a result of the
commencement of depreciation of environmental investments that were
completed following the second quarter of 2019 and
depreciation of the newbuild delivery.
Interest expense: Interest expense decreased to
$5.9 million in the second quarter of 2020 compared to $7.0 million
for the same period in 2019, as a result of the decreased USD
LIBOR13 affecting the weighted average interest rate of our loans
and credit facilities.
Voyage expenses: Voyage expenses increased to
$18.6 million for the second quarter of 2020 compared to $2.1
million for the same period in 2019, as a result of increased
vessel repositioning expenses, higher loss on bunkers sales and
bunker consumption costs for scrubber fitted vessels under charter
agreements which provide for variable consideration based on the
bunker consumption.
Daily vessel operating expenses 14: Daily vessel
operating expenses, calculated by dividing vessel operating
expenses by the ownership days of the relevant period, increased by
2% to $4,729 for the second quarter of 2020 compared to $4,615 for
the same period in 2019. Daily vessel operating expenses excluding
dry-docking and pre-delivery expenses decreased by 2% to $4,207 for
the second quarter of 2020 compared to $4,283 for the same period
in 2019.
Daily general and administrative expenses 14:
Daily general and administrative expenses, which include management
fees payable to our Managers 15 and daily company administrations
expenses, remained fairly stable to $1,374 for the second quarter
of 2020, compared to $1,366 for the same period in 2019.
____________________13 London interbank offered rate.14 See
Table 6.15 Safety Management Overseas S.A. and Safe Bulkers
Management Limited, each of which is a related party that is
referred to in this press release as “our Manager” and collectively
“our Managers’’.
Unaudited Interim Financial Information
and Other Data
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)(In thousands
of U.S. Dollars except for share and per share data)
|
Three-Months Period Ended June
30, |
|
Six-Months Period Ended June
30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
REVENUES: |
|
|
|
|
|
|
|
Revenues |
47,562 |
|
|
|
50,054 |
|
|
|
98,044 |
|
|
|
97,640 |
|
|
Commissions |
(2,047 |
) |
|
|
(1,773 |
) |
|
|
(4,244 |
) |
|
|
(3,644 |
) |
|
Net revenues |
45,515 |
|
|
|
48,281 |
|
|
|
93,800 |
|
|
|
93,996 |
|
|
EXPENSES: |
|
|
|
|
|
|
|
Voyage expenses |
(2,110 |
) |
|
|
(18,583 |
) |
|
|
(5,083 |
) |
|
|
(31,787 |
) |
|
Vessel operating expenses |
(17,220 |
) |
|
|
(18,000 |
) |
|
|
(32,543 |
) |
|
|
(35,799 |
) |
|
Depreciation |
(12,426 |
) |
|
|
(13,459 |
) |
|
|
(24,706 |
) |
|
|
(26,565 |
) |
|
General and administrative expenses |
(5,096 |
) |
|
|
(5,230 |
) |
|
|
(10,167 |
) |
|
|
(10,345 |
) |
|
Operating income/(loss) |
8,663 |
|
|
|
(6,991 |
) |
|
|
21,301 |
|
|
|
(10,500 |
) |
|
OTHER (EXPENSE) /
INCOME: |
|
|
|
|
|
|
|
Interest expense |
(6,979 |
) |
|
|
(5,868 |
) |
|
|
(14,008 |
) |
|
|
(12,292 |
) |
|
Other finance cost |
(78 |
) |
|
|
(206 |
) |
|
|
(117 |
) |
|
|
(359 |
) |
|
Interest income |
399 |
|
|
|
135 |
|
|
|
821 |
|
|
|
519 |
|
|
Gain on derivatives |
— |
|
|
|
(783 |
) |
|
|
— |
|
|
|
(736 |
) |
|
Foreign currency gain/(loss) |
157 |
|
|
|
233 |
|
|
|
(82 |
) |
|
|
434 |
|
|
Amortization and write-off of deferred finance charges |
(344 |
) |
|
|
(401 |
) |
|
|
(678 |
) |
|
|
(896 |
) |
|
Net income/(loss) |
1,818 |
|
|
|
(13,881 |
) |
|
|
7,237 |
|
|
|
(23,830 |
) |
|
Less Preferred dividend |
2,873 |
|
|
|
2,874 |
|
|
|
5,745 |
|
|
|
5,746 |
|
|
Less Mezzanine equity measurement |
304 |
|
|
|
53 |
|
|
|
304 |
|
|
|
135 |
|
|
Net (loss)/income available to common
shareholders |
$ |
(1,359 |
) |
|
|
(16,808 |
) |
|
|
1,188 |
|
|
|
(29,711 |
) |
|
(Loss)/earnings per share basic and
diluted |
(0.01 |
) |
|
|
(0.16 |
) |
|
|
0.01 |
|
|
|
(0.29 |
) |
|
Weighted average number of shares |
101,262,808 |
|
|
|
102,726,265 |
|
|
|
101,412,749 |
|
|
|
103,067,556 |
|
|
|
|
Six-Months Period Ended June
30, |
|
|
2019 |
|
2020 |
(In millions of
U.S. Dollars) |
|
|
|
|
CASH FLOW
DATA |
|
|
|
|
Net cash provided by operating activities |
|
24.0 |
|
|
|
20.4 |
|
|
Net cash used in investing
activities |
|
(0.4 |
) |
|
|
(40.9 |
) |
|
Net cash (used in)/provided by
financing activities |
|
(15.7 |
) |
|
|
11.4 |
|
|
Net increase/(decrease) in
cash and cash equivalents |
|
7.9 |
|
|
|
(9.1 |
) |
|
SAFE BULKERS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED)(In thousands of U.S.
Dollars)
|
|
December 31, 2019 |
|
June 30, 2020 |
ASSETS |
|
|
|
|
Cash, time deposits, and restricted cash |
|
106,378 |
|
|
101,135 |
|
Other current assets |
|
29,611 |
|
|
20,148 |
|
Vessels, net |
|
944,706 |
|
|
971,377 |
|
Advances for vessels |
|
19,294 |
|
|
2,464 |
|
Restricted cash non-current |
|
13,701 |
|
|
17,651 |
|
Other non-current assets |
|
953 |
|
|
814 |
|
Total assets |
|
1,114,643 |
|
|
1,113,589 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current portion of long-term debt |
|
64,054 |
|
|
62,418 |
|
Other current liabilities |
|
22,730 |
|
|
26,853 |
|
Long-term debt, net of current portion |
|
536,995 |
|
|
563,030 |
|
Other non-current liabilities |
|
922 |
|
|
3,793 |
|
Mezzanine equity |
|
17,200 |
|
|
17,208 |
|
Shareholders’ equity |
|
472,742 |
|
|
440,287 |
|
Total liabilities and equity |
|
1,114,643 |
|
|
1,113,589 |
|
TABLE 4 RECONCILIATION
OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED
EARNINGS/(LOSS) PER SHARE
|
|
Three-Months Period Ended June
30, |
|
Six-Months Period Ended June
30, |
(In thousands of U.S. Dollars
except for share and per share data) |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
Net income/(loss) -
Adjusted Net income/(loss) |
|
|
|
|
|
|
|
|
Net income/(loss) |
|
1,818 |
|
|
|
(13,881 |
) |
|
|
7,237 |
|
|
(23,830 |
) |
|
Less Gain on derivatives |
|
— |
|
|
|
783 |
|
|
|
— |
|
|
736 |
|
|
Plus Foreign currency
(gain)/loss |
|
(157 |
) |
|
|
(233 |
) |
|
|
82 |
|
|
(434 |
) |
|
Adjusted Net
income/(loss) |
|
1,661 |
|
|
|
(13,331 |
) |
|
|
7,319 |
|
|
(23,528 |
) |
|
EBITDA - Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
1,818 |
|
|
|
(13,881 |
) |
|
|
7,237 |
|
|
(23,830 |
) |
|
Plus Net Interest expense |
|
6,580 |
|
|
|
5,733 |
|
|
|
13,187 |
|
|
11,773 |
|
|
Plus Depreciation |
|
12,426 |
|
|
|
13,459 |
|
|
|
24,706 |
|
|
26,565 |
|
|
Plus Amortization |
|
344 |
|
|
|
401 |
|
|
|
678 |
|
|
896 |
|
|
EBITDA |
|
21,168 |
|
|
|
5,712 |
|
|
|
45,808 |
|
|
15,404 |
|
|
Less Gain on derivatives |
|
— |
|
|
|
783 |
|
|
|
— |
|
|
736 |
|
|
Plus Foreign currency
(gain)/loss |
|
(157 |
) |
|
|
(233 |
) |
|
|
82 |
|
|
(434 |
) |
|
ADJUSTED
EBITDA |
|
21,011 |
|
|
|
6,262 |
|
|
|
45,890 |
|
|
15,706 |
|
|
(Loss)/earnings per
share |
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
1,818 |
|
|
|
(13,881 |
) |
|
|
7,237 |
|
|
(23,830 |
) |
|
Less Preferred dividend |
|
2,873 |
|
|
|
2,874 |
|
|
|
5,745 |
|
|
5,746 |
|
|
Less Mezzanine equity
measurement |
|
304 |
|
|
|
53 |
|
|
|
304 |
|
|
135 |
|
|
Net (loss)/income available to
common shareholders |
|
(1,359 |
) |
|
|
(16,808 |
) |
|
|
1,188 |
|
|
(29,711 |
) |
|
Weighted average number of
shares |
|
101,262,808 |
|
|
|
102,726,265 |
|
|
|
101,412,749 |
|
|
103,067,556 |
|
|
(Loss)/earnings per
share |
|
(0.01 |
) |
|
|
(0.16 |
) |
|
|
0.01 |
|
|
(0.29 |
) |
|
Adjusted
(Loss)/earnings per share |
|
|
|
|
|
|
|
|
Adjusted Net
income/(loss) |
|
1,661 |
|
|
|
(13,331 |
) |
|
|
7,319 |
|
|
(23,528 |
) |
|
Less Preferred dividend |
|
2,873 |
|
|
|
2,874 |
|
|
|
5,745 |
|
|
5,746 |
|
|
Less Mezzanine equity
measurement |
|
304 |
|
|
|
53 |
|
|
|
304 |
|
|
135 |
|
|
Adjusted Net (loss)/income
available to common shareholders |
|
(1,516 |
) |
|
|
(16,258 |
) |
|
|
1,270 |
|
|
(29,409 |
) |
|
Weighted average number of
shares |
|
101,262,808 |
|
|
|
102,726,265 |
|
|
|
101,412,749 |
|
|
103,067,556 |
|
|
Adjusted
(Loss)/earnings per share |
|
(0.01 |
) |
|
|
(0.16 |
) |
|
|
0.01 |
|
|
(0.29 |
) |
|
EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are not
recognized measurements under US GAAP.- EBITDA represents Net
income before interest, income tax expense, depreciation and
amortization.- Adjusted EBITDA represents EBITDA before loss on
sale of assets, gain/(loss) on derivatives, early redelivery cost
and gain/(loss) on foreign currency.- Adjusted Net income/(loss)
represents Net income/(loss) before loss on sale of assets,
gain/(loss) on derivatives, early redelivery cost and gain/(loss)
on foreign currency.- Adjusted earnings/(loss) per share represents
Adjusted Net income/(loss) less preferred dividend and mezzanine
equity measurement divided by the weighted average number of
shares.EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and
Adjusted earnings per share are used as supplemental financial
measures by management and external users of financial statements,
such as investors, to assess our financial and operating
performance. The Company believes that these non-GAAP financial
measures assist our management and investors by increasing the
comparability of our performance from period to period. The Company
believes that including these supplemental financial measures
assists our management and investors in (i) understanding and
analyzing the results of our operating and business performance,
(ii) selecting between investing in us and other investment
alternatives and (iii) monitoring our financial and operational
performance in assessing whether to continue investing in us. The
Company believes that EBITDA, Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share are useful in
evaluating the Company’s operating performance from period to
period because the calculation of EBITDA generally eliminates the
effects of financings, income taxes and the accounting effects of
capital expenditures and acquisitions, the calculation of Adjusted
EBITDA generally further eliminates the effects from loss on sale
of assets, gain/(loss) on derivatives, early redelivery cost and
gain/(loss) on foreign currency, items which may vary from year to
year and for different companies for reasons unrelated to overall
operating performance. Furthermore, the calculation of Adjusted Net
income/(loss) generally eliminates the effects of loss on sale of
assets, gain/(loss) on derivatives, early redelivery cost and
gain/(loss) on foreign currency, items which may vary from year to
year and for different companies for reasons unrelated to overall
operating performance. EBITDA, Adjusted EBITDA, Adjusted Net income
and Adjusted earnings per share have limitations as analytical
tools, and should not be considered in isolation, or as a
substitute for analysis of the Company’s results as reported under
US GAAP. EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) should
not be considered as substitutes for net income and other
operations data prepared in accordance with US GAAP or as a measure
of profitability. While EBITDA and Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, are
frequently used as measures of operating results and performance,
they are not necessarily comparable to other similarly titled
captions of other companies due to differences in methods of
calculation. In evaluating Adjusted EBITDA, Adjusted Net
income/(loss) and Adjusted earnings/(loss) per share, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted EBITDA, Adjusted Net income/(loss) and
Adjusted earnings/(loss) per share should not be construed as an
inference that our future results will be unaffected by the
excluded items.
TABLE 5: FLEET DATA AND AVERAGE DAILY
INDICATORS
|
Three-Months Period Ended June
30, |
|
Six-Months Period Ended June
30, |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
FLEET DATA |
|
|
|
|
|
|
|
Number of vessels at period’s
end |
41 |
|
|
|
42 |
|
|
|
41 |
|
|
|
42 |
|
|
Average age of fleet (in
years) |
8.83 |
|
|
|
9.60 |
|
|
|
8.83 |
|
|
|
9.60 |
|
|
Ownership days (1) |
3,731 |
|
|
|
3,806 |
|
|
|
7,421 |
|
|
|
7,537 |
|
|
Available days (2) |
3,626 |
|
|
|
3,669 |
|
|
|
7,316 |
|
|
|
7,246 |
|
|
Average number of vessels in
the period (3) |
41.00 |
|
|
|
41.82 |
|
|
|
41.00 |
|
|
|
41.41 |
|
|
AVERAGE DAILY RESULTS |
|
|
|
|
|
|
|
Time charter equivalent rate (4) |
$ |
11,970 |
|
|
|
$ |
8,094 |
|
|
|
$ |
12,126 |
|
|
|
$ |
8,585 |
|
|
Daily vessel operating
expenses (5) |
$ |
4,615 |
|
|
|
$ |
4,729 |
|
|
|
$ |
4,385 |
|
|
|
$ |
4,750 |
|
|
Daily vessel operating
expenses excluding dry-docking and pre-delivery expenses (6) |
$ |
4,283 |
|
|
|
$ |
4,207 |
|
|
|
$ |
4,217 |
|
|
|
$ |
4,246 |
|
|
Daily general and
administrative expenses (7) |
$ |
1,366 |
|
|
|
$ |
1,374 |
|
|
|
$ |
1,370 |
|
|
|
$ |
1,373 |
|
|
TIME CHARTER EQUIVALENT RATE
RECONCILIATION |
|
|
|
|
|
|
|
(In thousands of U.S. Dollars
except for available days and Time charter equivalent rate) |
|
|
|
|
|
|
|
Revenues |
$ |
47,562 |
|
|
|
$ |
50,054 |
|
|
|
$ |
98,044 |
|
|
|
$ |
97,640 |
|
|
Less commissions |
(2,047 |
) |
|
|
(1,773 |
) |
|
|
(4,244 |
) |
|
|
(3,644 |
) |
|
Less voyage expenses |
(2,110 |
) |
|
|
(18,583 |
) |
|
|
(5,083 |
) |
|
|
(31,787 |
) |
|
Time charter equivalent
revenue |
$ |
43,405 |
|
|
|
$ |
29,698 |
|
|
|
$ |
88,717 |
|
|
|
$ |
62,209 |
|
|
Available days (2) |
3,626 |
|
|
|
3,669 |
|
|
|
7,316 |
|
|
|
7,246 |
|
|
Time charter equivalent rate
(4) |
$ |
11,970 |
|
|
|
$ |
8,094 |
|
|
|
$ |
12,126 |
|
|
|
$ |
8,585 |
|
|
_____________
(1) Ownership days represents the aggregate
number of days in a period during which each vessel in our fleet
has been owned by us. (2) Available days represents the total
number of days in a period during which each vessel in our fleet
was in our possession, net of off-hire days associated with
scheduled maintenance, which includes major repairs, drydockings,
vessel upgrades or special or intermediate surveys. (3) Average
number of vessels in the period is calculated by dividing ownership
days in the period by the number of days in that period. (4) Time
charter equivalent rate, or TCE rate, represents our charter
revenues less commissions and voyage expenses during a period
divided by the number of available days during such period. TCE
rate is a standard shipping industry performance measure used
primarily to compare daily earnings generated by vessels on period
time charters and spot time charters with daily earnings generated
by vessels on voyage charters, because charter rates for vessels on
voyage charters are generally not expressed in per day amounts,
while charter rates for vessels on period time charters and spot
time charters generally are expressed in such amounts. We have only
rarely employed our vessels on voyage charters and, as a result,
generally our TCE rates approximate our time charter rates. (5)
Daily vessel operating expenses are calculated by dividing vessel
operating expenses for the relevant period by ownership days for
such period. Vessel operating expenses include crewing, insurance,
lubricants, spare parts, provisions, stores, repairs, maintenance
including dry-docking, statutory and classification expenses and
other miscellaneous items. (6) Daily vessel operating expenses
excluding dry-docking and pre-delivery expenses are calculated by
dividing vessel operating expenses excluding dry-docking and
pre-delivery expenses for the relevant period by ownership days for
such period. Dry-docking expenses include costs of shipyard, paints
and agent expenses and pre-delivery expenses include initially
supplied spare parts, stores, provisions and other miscellaneous
items provided to a newbuild or second hand acquisition prior to
their operation. (7) Daily general and administrative expenses are
calculated by dividing general and administrative expenses for the
relevant period by ownership days for such period. Daily general
and administrative expenses include daily management fees payable
to our Managers and daily company administration expenses.
Table 6: Detailed fleet and employment
profile as of July 31, 2020
Vessel Name |
|
Dwt |
|
YearBuilt 1 |
|
Country of Construction |
|
Charter Type |
|
CharterRate 2 |
|
Commissions 3 |
|
Charter Period 4 |
CURRENT FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maria |
|
76,000 |
|
2003 |
|
Japan |
|
Period |
|
$ |
9,349 |
|
|
5.00 |
% |
|
February 2020 |
December 2020 |
Koulitsa |
|
76,900 |
|
2003 |
|
Japan |
|
Period |
|
$ |
7,154 |
|
|
5.00 |
% |
|
April 2020 |
August 2020 |
Paraskevi |
|
74,300 |
|
2003 |
|
Japan |
|
Spot |
|
$ |
10,000 |
|
|
5.00 |
% |
|
July 2020 |
September 2020 |
Vassos |
|
76,000 |
|
2004 |
|
Japan |
|
Spot |
|
$ |
8,353 |
|
|
5.00 |
% |
|
March 2020 |
Aug 2020 |
Katerina |
|
76,000 |
|
2004 |
|
Japan |
|
Period |
|
$ |
8,094 |
|
|
5.00 |
% |
|
March 2020 |
December 2020 |
Maritsa |
|
76,000 |
|
2005 |
|
Japan |
|
Period |
|
$ |
9,464 |
|
|
5.00 |
% |
|
February 2020 |
December 2020 |
Efrossini |
|
75,000 |
|
2012 |
|
Japan |
|
Spot |
|
$ |
7,612 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
Zoe
10 |
|
75,000 |
|
2013 |
|
Japan |
|
Spot |
|
$ |
6,619 |
|
|
4.38 |
% |
|
April 2020 |
August 2020 |
Kypros Land
10 , 15 |
|
77,100 |
|
2014 |
|
Japan |
|
Spot |
|
$ |
8,247 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
|
|
|
|
Period |
|
$ |
13,800 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros Sea
15 |
|
77,100 |
|
2014 |
|
Japan |
|
Spot |
|
$ |
9,135 |
|
|
5.00 |
% |
|
April 2020 |
July 2020 |
|
|
|
|
Period |
|
$ |
13,800 |
|
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kypros
Bravery 13 |
|
78,000 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros Sky 8
, 13 |
|
77,100 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
August 2020 |
August 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
August 2022 |
August 2025 |
Kypros
Loyalty 13 |
|
78,000 |
|
2015 |
|
Japan |
|
Period |
|
$ |
11,750 |
|
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kypros
Spirit 8 , 15 |
|
78,000 |
|
2016 |
|
Japan |
|
Spot |
|
$ |
12,000 |
|
|
5.00 |
% |
|
May 2020 |
July 2020 |
|
|
|
|
Period |
|
$ |
13,800 |
|
|
3.75 |
% |
|
July 2020 |
July 2022 |
|
|
|
|
|
BPI 82 5TC * 97% - $2,150 |
|
3.75 |
% |
|
July 2022 |
July 2025 |
Kamsarmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pedhoulas Merchant |
|
82,300 |
|
2006 |
|
Japan |
|
Spot |
|
$ |
11,000 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
Pedhoulas
Trader |
|
82,300 |
|
2006 |
|
Japan |
|
Period |
|
$ |
10,000 |
|
|
5.00 |
% |
|
June 2020 |
August 2020 |
Pedhoulas
Leader |
|
82,300 |
|
2007 |
|
Japan |
|
Spot |
|
$ |
8,185 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
Pedhoulas
Commander |
|
83,700 |
|
2008 |
|
Japan |
|
Period |
|
$ |
9,950 |
|
|
5.00 |
% |
|
June 2019 |
June 2021 |
Pedhoulas
Builder 16 |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
7,650 |
|
|
5.00 |
% |
|
April 2020 |
August 2020 |
Pedhoulas
Fighter16 |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
7,191 |
|
|
4.38 |
% |
|
May 2020 |
August 2020 |
Pedhoulas
Farmer , 516 |
|
81,600 |
|
2012 |
|
China |
|
Spot
12 |
|
$ |
8,851 |
|
|
5.00 |
% |
|
June 2020 |
November 2020 |
Pedhoulas Cherry16 |
|
82,000 |
|
2015 |
|
China |
|
Spot 12 |
|
$ |
7,224 |
|
|
4.38 |
% |
|
April 2020 |
September 2020 |
Pedhoulas Rose 5,16 |
|
82,000 |
|
2017 |
|
China |
|
Spot |
|
$ |
12,500 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
Pedhoulas
Cedrus |
|
81,800 |
|
2018 |
|
China |
|
Spot |
|
$ |
8,000 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
|
|
|
|
Period |
|
$ |
13,000 |
|
|
3.75 |
% |
|
August 2020 |
May 2021 |
Post-Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marina 16 |
|
87,000 |
|
2006 |
|
Japan |
|
Spot |
|
$ |
13,900 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
|
|
|
|
Spot |
|
$ |
11,500 |
|
|
5.00 |
% |
|
August 2020 |
September 2020 |
Xenia |
|
87,000 |
|
2006 |
|
Japan |
|
Dry-docking |
|
|
|
|
|
|
|
|
July 2020 |
August 2020 |
Sophia16 |
|
87,000 |
|
2007 |
|
Japan |
|
Spot |
|
$ |
12,750 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
Eleni 16 |
|
87,000 |
|
2008 |
|
Japan |
|
Spot 11 |
|
$ |
13,250 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
Martine 16 |
|
87,000 |
|
2009 |
|
Japan |
|
Spot |
|
$ |
10,022 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
Andreas K 16 |
|
92,000 |
|
2009 |
|
South Korea |
|
Spot |
|
$ |
12,500 |
|
|
5.00 |
% |
|
June 2020 |
September 2020 |
Panayiota K 9 16 |
|
92,000 |
|
2010 |
|
South Korea |
|
Spot 12 |
|
$ |
14,000 |
|
|
5.00 |
% |
|
May 2020 |
September 2020 |
Agios Spyridonas 9
16 |
|
92,000 |
|
2010 |
|
South Korea |
|
|
|
|
|
|
|
|
|
|
|
|
Venus Heritage 10 16 |
|
95,800 |
|
2010 |
|
Japan |
|
|
|
|
|
|
|
|
|
|
|
|
Venus History 10 16 |
|
95,800 |
|
2011 |
|
Japan |
|
Spot |
|
$ |
11,500 |
|
|
4.38 |
% |
|
June 2020 |
August 2020 |
Venus Horizon 16 |
|
95,800 |
|
2012 |
|
Japan |
|
Spot |
|
$ |
8,850 |
|
|
5.00 |
% |
|
June 2020 |
August 2020 |
Troodos Sun
16 |
|
85,000 |
|
2016 |
|
Japan |
|
Spot
11 |
|
$ |
10,500 |
|
|
5.00 |
% |
|
May 2020 |
August 2020 |
|
|
|
|
Spot |
|
$ |
12,000 |
|
|
5.00 |
% |
|
August 2020 |
October 2020 |
Troodos Air 16 |
|
85,000 |
|
2016 |
|
Japan |
|
Spot |
|
$ |
13,000 |
|
|
5.00 |
% |
|
July 2020 |
August 2020 |
Troodos Oak 14 |
|
85,000 |
|
2020 |
|
Japan |
|
Period |
|
109% BPI-82 5TC |
|
5.00 |
% |
|
June 2020 |
May 2021 |
Capesize |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mount Troodos 16 17 |
|
181,400 |
|
2009 |
|
Japan |
|
Period |
|
103.5%
BCI+80% Scrubber benefit |
|
5.00 |
% |
|
April 2020 |
June 2021 |
Kanaris 16 |
|
178,100 |
|
2010 |
|
China |
|
Period 6 |
|
$ |
26,562 |
|
|
5.00 |
% |
|
September 2011 |
September 2031 |
Pelopidas |
|
176,000 |
|
2011 |
|
China |
|
Period |
|
$ |
38,000 |
|
|
5.00 |
% |
|
January 2012 |
January 2022 |
Lake Despina |
|
181,400 |
|
2014 |
|
Japan |
|
Period 7 |
|
$ |
24,810 |
|
|
5.00 |
% |
|
January 2014 |
January 2024 |
TOTAL |
|
3,862,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For existing vessels, the year represents
the year built. For any newbuilds, the date shown reflects the
expected delivery dates.(2) Quoted charter rates are the recognized
daily gross charter rates. For charter parties with variable rates
among periods or consecutive charter parties with the same
charterer, the recognized gross daily charter rate represents the
weighted average gross daily charter rate over the duration of the
applicable charter period or series of charter periods, as
applicable. In the case of a charter agreement that provides for
additional payments, namely ballast bonus to compensate for vessel
repositioning, the gross daily charter rate presented has been
adjusted to reflect estimated vessel repositioning expenses. Gross
charter rates are inclusive of commissions. Net charter rates are
charter rates after the payment of commissions. In the case of
voyage charters, the charter rate represents revenue recognized on
a pro rata basis over the duration of the voyage from load to
discharge port less related voyage expenses.(3) Commissions reflect
payments made to third-party brokers or our charterers.(4) The
start dates listed reflect either actual start dates or, in the
case of contracted charters that had not commenced as of
July 31, 2020, the scheduled start dates. Actual start dates
and redelivery dates may differ from the referenced scheduled start
and redelivery dates depending on the terms of the charter and
market conditions and does not reflect the options to extend the
period time charter.(5) MV Pedhoulas Farmer and MV Pedhoulas
Rose were sold and leased back, in 2015 and 2017, respectively, on
a bareboat charter basis for a period of 10 years, with a purchase
obligation at the end of the bareboat charter period and purchase
options in favor of the Company after the second year of the
bareboat charter, at annual intervals and predetermined purchase
prices.(6) Charterer agreed to reimburse us for part of the cost of
the scrubbers and BWTS to be installed on the vessel, which is
recorded by increasing the recognized daily charter rate by $634
over the remaining tenor of the time charter party.(7) A period
time charter of 10 years at a gross daily charter rate of $23,100
for the first two and a half years and of $24,810 for the remaining
period. In January 2017, the period time charter was amended to
reflect substitution of the initial charterer with its subsidiary
guaranteed by the initial charterer and changes in payment terms;
all other period charter terms remained unchanged. The charter
agreement grants the charterer the option to purchase the vessel at
any time beginning at the end of the seventh year of the period
time charter period, at a price of $39.0 million less 1.00%
commission, decreasing thereafter on a pro-rated basis by $1.5
million per year. The Company holds a right of first refusal to buy
back the vessel in the event that the charterer exercises its
option to purchase the vessel and subsequently offers to sell such
vessel to a third party. The charter agreement also grants the
charterer an option to extend the period time charter for an
additional twelve months at a time at a gross daily charter rate of
$26,330, less 1.25% total commissions, which option may be
exercised by the charterer a maximum of two times.(8) MV
Kypros Sky and MV Kypros Spirit were sold and leased back in
December 2019 on a bareboat charter basis for a period of eight
years, with purchase options in favor of the Company commencing
three years following the commencement of the bareboat charter
period and a purchase obligation at the end of the bareboat charter
period, all at predetermined purchase prices. (9) MV Panayiota
K and MV Agios Spyridonas were sold and leased back in January 2020
on a bareboat charter basis for a period of six years, with
purchase options in favor of the Company commencing three years
following the commencement of the bareboat charter period and a
purchase obligation at the end of the bareboat charter period, all
at predetermined purchase prices. (10) MV Zoe, MV Kypros Land,
MV Venus Heritage and MV Venus History were sold and leased back in
November 2019, on a bareboat charter basis, one for a period of
eight years and three for a period of seven and a half years, with
a purchase option in favor of the Company five years and nine
months following the commencement of the bareboat charter period at
a predetermined purchase price.(11) Scrubber benefit was agreed on
the basis of fuel consumption of heavy fuel oil and the price
differential between the heavy fuel oil and the compliant fuel cost
for the voyage and is included on the daily gross charter rate
presented. (12) Scrubber benefit was agreed on the basis of fuel
consumption of heavy fuel oil and the price differential between
the heavy fuel oil and the compliant fuel cost for the voyage and
is not included on the daily gross charter rate presented.(13) A
period time charter of 5 years at a daily gross charter rate of
$11,750 for the first two years and a gross daily charter rate
linked to the BPI-82 5TC times 97% minus $2,150, for the remaining
period.(14) A period time charter of 11 to 13 months at a gross
daily charter rate linked to the BPI-82 5TC times 109%. (15)
A period time charter of 5 years at a daily gross charter rate of
$13,800 for the first two years and a gross daily charter rate
linked to the BPI-82 5TC times 97% minus $2,150, for the remaining
period.(16) Scrubber fitted vessel.(17) A period time charter at a
gross daily charter rate linked to the Baltic Exchange Capesize
Index (“BCI'') times 103.5% plus 80% of scrubber benefit.
About Safe Bulkers, Inc.
The Company is an international provider of
marine drybulk transportation services, transporting bulk cargoes,
particularly coal, grain and iron ore, along worldwide shipping
routes for some of the world’s largest users of marine drybulk
transportation services. The Company’s common stock, series C
preferred stock and series D preferred stock are listed on the
NYSE, and trade under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”,
respectively.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Exchange
Act of 1934, as amended, and in Section 21E of the Securities Act
of 1933, as amended) concerning future events, the Company’s growth
strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters. Words such as “expects,” “intends,” “plans,” “believes,”
“anticipates,” “hopes,” “estimates” and variations of such words
and similar expressions are intended to identify forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
business disruptions due to natural disasters or other events, such
as the recent COVID-19 pandemic, many of which are beyond the
control of the Company. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially
include, but are not limited to, changes in the demand for drybulk
vessels, competitive factors in the market in which the Company
operates, risks associated with operations outside the United
States and other factors listed from time to time in the Company’s
filings with the Securities and Exchange Commission. The Company
expressly disclaims any obligations or undertaking to release any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company’s expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
For further information please
contact:
Company Contact:Dr. Loukas
BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25
887200E-Mail:directors@safebulkers.com
Investor Relations / Media
Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230
Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax:
(212) 661-7526E-Mail:safebulkers@capitallink.com
Grafico Azioni Safe Bulkers (NYSE:SB)
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