Safe Bulkers (SB) Q2 2024 earnings summary

Executive summary

• Net revenues for Q2 2024 rose 11% year-over-year to $78.5 million, driven by higher charter rates and increased earnings from Scrubber-fitted vessels.

• Net income for Q2 2024 was $27.6 million, up from $15.4 million in Q2 2023; adjusted net income was $20.3 million.

• The Board declared a $0.05 per share cash dividend, reflecting a 21% payout ratio.

• Fleet renewal and environmental upgrades continue, with 46 vessels in the fleet as of July 19, 2024, including 12 Phase 3 vessels delivered since 2022 and 8 more on order.

• Strong liquidity, significant revenue backlog, and low leverage support ongoing capital allocation and shareholder returns.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $41.8 million, up from $34.3 million in Q2 2023.

• Adjusted EPS for Q2 2024 was $0.17, compared to $0.12 in Q2 2023.

• Daily TCE rate increased to $18,650 from $17,271 year-over-year.

• Net income for Q2 2024 reached $27.6 million, up from $15.4 million in Q2 2023.

• Healthy cash position of $81.6 million as of June 30, 2024, with $179.5 million in undrawn borrowing capacity.

Outlook and guidance

• Limited supply growth and resilient demand are expected to support freight rates in the short to medium term.

• Environmental regulations and decarbonization efforts are anticipated to drive further fleet renewal and scrapping of older vessels.

• Management expects continued fleet renewal and environmental upgrades, with $235.6 million in remaining newbuild capex.

• Contracted revenue from non-cancellable charters stands at $252.1 million as of July 19, 2024.

• Expectation of market improvement in Q4 2024, with Atlantic market anticipated to lift rates.