Safe Bulkers, Inc. Q4 FY2024 earnings call

• Fleet renewal and environmental upgrades are paying off, with Phase 3 vessels and eco-ships.
• Charter market weakness in Q4 2024 impacted revenues and profitability.
• Company maintains strong capital structure with 35% leverage and $276 million liquidity.
• Declared a $0.05 per share dividend.
• Has 11 Phase 3 vessels on the water, 11 eco-ships, and an order book of 7 more Phase 3 vessels.
• Debt profile is comfortable with $545 million consolidated debt and $276 million liquidity as of Dec 31, 2024.

The Cape market segment had all 8 Capes period chartered with an average remaining charter duration over two years and an average daily charter rate of $22,000, providing over $145 million in contracted revenue. The Panamax charter market was soft at $9,000 but showed signs of improvement. Capes contribute a significant portion of revenue, while Panamax is currently weaker.

• Anticipate softer trade market over following quarters as supply grows faster than demand.
• Focus on existing fleet decarburization and energy efficient new builds.
• IMF projects global GDP growth around 3.3% in 2025-2026, with minor bulks as best performing sector.
• China's slower growth may hinder dry bulk demand, while India is projected to have fast GDP growth.

• Rising tariffs and policy uncertainty pose downside risk for global growth.
• Fears of higher for longer interest rates and lower global investments.
• Supply growth expected to outpace demand, pressuring freight trades.
• Only 13% of order book ships can use alternative fuels upon delivery, 14% ready for future conversion.

Q: Please provide insight into the share buyback program that was initiated in November, then terminated in December.

A: From time to time, share buyback programs are done when the stock market price is low. The company evaluates programs based on market conditions. When the freight market is softer, the program may be slowed or stopped. It can be reinstated in the future as market conditions change.

Q: Regarding asset values, given the softened freight market, what's the outlook?

A: Asset values have been affected, with older ships down 25% and younger ships 15%. If the freight market stabilizes, values may not drop much further, and could strengthen in the second half of the year.