Safe Bulkers reports 2Q loss

Safebulkers logo

Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced its unaudited financial results for the three and six months period ended June 30, 2016.

Summary of Second Quarter 2016 Results

Net revenue for the second quarter of 2016 decreased by 18% to $26.2 million from $31.8 million during the same period in 2015.

Net loss for the second quarter of 2016 was $9.0 million as compared to $4.4 million, during the same period in 2015. Adjusted net loss1 for the second quarter of 2016 was $8.7 million as compared to $3.9 million, during the same period in 2015.

EBITDA2 for the second quarter of 2016 decreased by 17% to $8.4 million as compared to $10.1 million during the same period in 2015. Adjusted EBITDA3 for the second quarter of 2016 decreased by 18% to $8.8 million from $10.7 million during the same period in 2015.

Loss per share4 and Adjusted loss per share4 for the second quarter of 2016 were $0.15 and $0.15 respectively, calculated on a weighted average number of 83,571,957 shares, as compared to a Loss per share of $0.10 and Adjusted loss per share of $0.09 during the same period in 2015, calculated on a weighted average number of 83,470,867 shares.

Summary of Six Months Ended June 30, 2016 Results

Net revenues for the six months of 2016 decreased by 20% to $50.9 million from $63.9 million during the same period in 2015.
Net loss for the six months of 2016 was $26.8 million as compared to $10.5 million, during the same period in 2015. Adjusted net loss1 for the six months of 2016 was $23.0 million as compared to $8.4 million, during the same period in 2015.
EBITDA2 for the six months of 2016 decreased by 51% to $8.7 million as compared to $17.6 million during the same period in 2015. Adjusted EBITDA3 for the six months of 2016 decreased by 37% to $12.5 million as compared to $19.7 million during the same period in 2015.
Loss per share4 and Adjusted loss per share4 for the six months of 2016 were $0.40 and $0.36, respectively, calculated on a weighted average number of shares of 83,557,124, as compared to Loss per share4 of $0.21 and Adjusted Loss per share4 of $0.19 during the same period in 2015, calculated on a weighted average number of shares of 83,466,487.

Fleet and Employment Profile

In July 2016, the Company took delivery of Kypros Spirit (Hull No. 828), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.

As of July 25, 2016, the Company’s operational fleet comprised of 37 drybulk vessels with an average age of 6.24 years and an aggregate carrying capacity of 3.3 million dwt. The fleet consists of 14 Panamax class vessels, 8 Kamsarmax class vessels, 12 Post-Panamax class vessels and 3 Capesize class vessels, all built from 2003 onwards.

As of July 25, 2016, the Company had contracted to acquire 4 eco-design newbuild vessels, comprised of one Japanese Panamax class vessel, two Japanese Kamsarmax class vessels and one Chinese Kamsarmax class vessel. Upon delivery of all newbuilds and assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 41 vessels, 14 of which will be eco-design vessels, having an aggregate carrying capacity of 3.7 million dwt.

Capital expenditure requirements and liquidity

As of July 25, 2016, the Company had agreed to acquire four newbuild vessels, with three to be delivered in 2017, and one to be delivered in 2018. The remaining capital expenditure requirements to shipyards or sellers before minor adjustments for shipyards’ costs relating to certain delayed deliveries for the four vessels amounted to $97.5 million, of which $7.1 million is due in 2016, $68.6 million is due in 2017 and $21.8 million is due in 2018.

As of July 25, 2016, the Company had liquidity of $169.7 million consisting of $95.7 million in cash and bank time deposits, $17.2 million in restricted cash and $56.8 million available under committed loan facilities and financing transactions.

Refinancing of credit facilities

As of July 25, 2016, the Company has refinanced or accepted term sheets, to amend certain financial covenants and terms of its credit, term and loan agreements, in an aggregate amount of $471.9 million, representing 100% of our debt, excluding sale and lease back financing arrangements and debt from State institutions, resulting in the deferral of an aggregate of $35.2 million of annual principal instalments that were due until 2018 after 2019.

Dividend Policy

The Board of Directors of the Company has not declared a dividend for the second quarter of 2016. The Company had 83,477,862 shares of common stock issued and outstanding as of July 25, 2016.

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 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.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: “We have concluded refinancing agreements of $471.9 million of our debt with all our lenders excluding sale and lease back and debt from State institutions and deferring an aggregate of $35.2 million of principal annual installments after 2019, preserving our liquidity. Our daily vessel operating expenses,5 including dry docking cost and initial supplies expenses were $3,814 for the second quarter of 2016 in line with our continued cost reduction initiatives. Our Time Charter Equivalent rate for the second quarter of 2016, of $7,675 per day is higher than the aggregate of our daily vessel operating expenses and our daily general and administrative expenses5 which totaled $4,929, adding to our liquidity.”

LEAVE A COMMENT

×

Comments are closed.