Safe Bulkers (SB) Q4 2023 earnings summary

Executive summary

• Q4 net revenue was $82.3M, adjusted EBITDA $50.7M, adjusted EPS $0.25 and net income $27.6M; TCE was $18,321/day, down from $21,078/day in Q4 2022.

• Fleet size increased to 46 vessels at year-end and 48 by Feb. 9, 2024; fleet renewal, charter contracts and Phase III newbuilds continued.

Financial highlights

• Q4 net revenue was $82.3M vs. $86.7M YoY; operating income was $37.2M vs. $39.7M, net income $27.6M vs. $34.9M, adjusted EBITDA $50.7M vs. $56.0M and adjusted EPS $0.25 vs. $0.29.

• FY 2023 net revenue was $284.4M vs. $349.7M; net income was $77.4M vs. $172.6M and EPS $0.61 vs. $1.36.

• FY adjusted net income was $70.2M vs. $168.5M, adjusted EBITDA $149.0M vs. $236.4M and adjusted EPS $0.55 vs. $1.32.

• FY revenue was $295.4M vs. $364.1M; TCE revenue was $262.7M vs. $339.7M, and average TCE was $16,579/day vs. $22,712/day.

• Q4 daily vessel opex was $4,642 vs. $5,323; excluding dry-docking and pre-delivery costs, it was $4,232 vs. $4,822.

Outlook and guidance

• As of Feb. 9, 2024, contracted revenue was $246.4M, net of commissions and excluding scrubber benefits; seven newbuilds had $206.1M remaining capex.

• As of Feb. 9, all eight Capesize vessels were on period charters, averaging 2.2 years remaining at $23,633/day and securing $148.4M net of commissions, excluding scrubber compensation.

• Thirty-seven vessels were employed or contracted in period charters as of Feb. 9; average remaining fleet charter duration was 0.8 years, and 11 had original durations over two years.