Safe Bulkers (SB) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 reached $79.2 million, up from $67.1 million in Q3 2023, with a TCE rate of $17,108 per day, reflecting improved market conditions year-over-year.

• Adjusted EPS for Q3 2024 was $0.20, up from $0.16 in Q3 2023, and adjusted EBITDA rose to $50.0 million from $41.3 million.

• Net income for Q3 2024 reached $25.1 million, up from $15 million year-over-year.

• Declared a $0.05 per share dividend, reflecting a commitment to shareholder returns.

• Fleet comprised 46 vessels as of November 1, 2024, with an average age of 9.8 years and a focus on environmental upgrades and newbuilds.

Financial highlights

• Q3 2024 net revenues increased 18% year-over-year to $79.2 million.

• Adjusted EBITDA for Q3 2024 was $50.0 million, up from $41.3 million in Q3 2023.

• Adjusted EPS for Q3 2024 was $0.20, compared to $0.16 in Q3 2023.

• Average TCE was $17,108 for Q3 2024, compared to $14,861 in Q3 2023.

• Liquidity stood at $92.6 million, with $225 million in undrawn borrowing capacity.

Outlook and guidance

• Charter market is gradually softening amid ongoing geopolitical uncertainties.

• Global dry bulk demand is expected to fall 1% in 2025 and rise 2.6% in 2026, with softer freight rates anticipated.

• Supply growth is projected at 2.8% in 2025 and 2.4% in 2026, with increased recycling of older tonnage expected.

• Management remains focused on sustainable growth, fleet expansion, and capital allocation to newbuilds.

• Contracted revenue as of November 1, 2024: $232.7 million from non-cancellable charters.