Safe Bulkers, Inc. Q1 FY2025 earnings call

• Faced softer charter markets due to seasonality, geopolitical uncertainties, and tariff concerns. - Maintained strong balance sheet, took delivery of 12th newbuild. - Renewed fleet focusing on operational excellence, environmental performance, and long-term shareholder value. - Completed repurchase program of ~3% of common stock, declared $0.05 per share dividend. - Fleet details: 12 Phase III vessels delivered after 2022, 24 environmentally upgraded, 11 ECO vessels, average age ~10 years. - MEPC 83 regulations impact on vessel tradability and decarbonization push. - Supply growth in drybulk fleet projected at ~2.8% in 2025-2026, order book at ~11% of current fleet. - Demand outlook: softer freight rates, supply growth faster than demand, focus on existing fleet decarbonization and energy-efficient newbuildings.

In the first quarter of 2025, Safe Bulkers operated in a weaker charter market environment. Adjusted EBITDA for Q1 2025 was $29.4 million compared to $64.3 million in the same period of 2024. Adjusted earnings per share for Q1 2025 was $0.05 vs $0.20 in Q1 2024. Average daily time charter equivalent was $14,655 in Q1 2025 compared to $18,158 in Q1 2024. The company's drybulk segment is the main focus, with supply and demand dynamics influencing performance.

• Supply growth expected to continue outpacing demand, putting pressure on freight rates. - Focus on capital allocation towards newbuilds program, operational efficiency, and environmental footprint. - Visibility of cash flows from Capes: all 8 Capes period chartered with average remaining charter duration of two years, contracted revenue backlog from Capes alone ~$137 million. - Six more Phase III vessels on order to be delivered by Q1 2027, positioned favorably for greenhouse gas targets.

• Geopolitical uncertainties and tariffs affecting global trade and growth. - Softer charter markets due to seasonality and market dynamics. - MEPC 83 regulations broadening scope of fuel standards, potentially affecting vessel tradability from 2028 onwards. - China's slower growth potentially hindering demand for drybulk commodities like iron ore and coal. - Coal trade affected by rising renewable energy use in Asia and increased coal production in China/India.

Q: How are you thinking about buybacks from here given the macro backdrop and recent China-U.S. agreement?

A: Consider market conditions and stock price. If stock is undervalued and market is profitable, may initiate buybacks. Currently, stock is seen as undervalued, but will react based on market and stock price conditions.

Q: Could you confirm whether the 3 million share buyback program was exhausted and any repurchases post quarter-end?

A: The 3 million share buyback program was exhausted within the first quarter. No repurchases done after quarter-end.