Safe Bulkers Inc ((SB)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Safe Bulkers Inc. recently held its earnings call, revealing a mixed sentiment regarding its financial performance and strategic initiatives. The company showcased its strong fleet renewal and environmental upgrade efforts, alongside dividend declarations and a robust financial position. However, these positives were counterbalanced by decreased revenue and earnings in a softer market environment, compounded by geopolitical and economic uncertainties impacting global growth.
Fleet Renewal and Environmental Upgrades
Safe Bulkers Inc. is actively pursuing its fleet renewal strategy, having sold two of its oldest vessels. The company has environmentally upgraded 24 vessels, with 11 classified as eco vessels, maintaining an average fleet age of 10.1 years, which is younger than the global average. This focus on modernization underscores the company’s commitment to sustainability and operational efficiency.
Dividend Declaration
The company declared a dividend of $0.05 per share of common stock, representing a 4.1% dividend yield. This marks the 16th consecutive quarterly dividend, reflecting Safe Bulkers’ commitment to returning value to its shareholders despite the challenging market conditions.
Strong Financial Position
Safe Bulkers maintains a strong capital structure with $390 million in liquidity and a leverage ratio of about 35%. This financial robustness provides the company with the flexibility to navigate market fluctuations and invest in strategic initiatives.
Revenue Visibility
The company has secured $124 million in contracted revenue backlog from its Capesize vessels, all of which are currently period chartered at an average daily rate of $24,800. This revenue visibility provides a degree of stability amid the volatile market environment.
Decreased Revenue and Earnings
Operating in a weaker charter market environment compared to 2024, Safe Bulkers experienced decreased revenue and earnings from its scrubber-fitted vessels. The adjusted EBITDA fell from $41.3 million in 2024 to $36.1 million in 2025, highlighting the challenges posed by the current market conditions.
Lower Time Charter Equivalent (TCE)
The average time charter equivalent (TCE) rate was $15,507 in 2025, down from $17,108 in 2024. This decline reflects the softer market environment and underscores the need for strategic adjustments to enhance profitability.
Geopolitical and Economic Uncertainties
Geopolitical tensions, high debt levels, elevated interest rates, and trade tensions between the U.S. and China pose significant risks to global growth and demand. These uncertainties add layers of complexity to Safe Bulkers’ operational landscape, necessitating vigilant risk management.
Forward-Looking Guidance
During the third quarter of 2025, Safe Bulkers provided comprehensive guidance on its operational and financial performance. The company reiterated its dividend declaration of $0.05 per share, marking its 16th consecutive quarterly dividend with a yield of 4.1%. Safe Bulkers reported an adjusted EBITDA of $36.1 million, a decrease from $41.3 million in the same quarter of 2024, and adjusted earnings per share of $0.12 compared to $0.16 in the previous year. The company continues its fleet renewal strategy, highlighted by the sale of two older vessels and the addition of two dual-fuel new builds expected in early 2027. With a contracted revenue backlog of $164 million, Safe Bulkers is well-positioned for long-term prosperity, focusing on fleet energy efficiency and decarbonization.
In conclusion, Safe Bulkers Inc.’s earnings call painted a picture of a company balancing its strategic initiatives with the challenges of a softer market environment. While the company is making significant strides in fleet renewal and maintaining a strong financial position, it faces headwinds from decreased revenue and geopolitical uncertainties. Investors will be keenly watching how Safe Bulkers navigates these challenges while staying committed to its long-term growth strategies.