Safe Bulkers (SB) Q4 2024 earnings summary

Executive summary

• Operates a fleet of 46 dry bulk vessels averaging about 10 years old, focusing on environmental upgrades and renewal, including 11 Phase 3 newbuilds and 11 eco-vessels built after 2014.

• All 8 Capesize vessels are on period charters averaging $22,131/day, with over two years remaining and $145.2M in contracted revenue, providing cash flow visibility despite a weaker charter market in Q4 2024.

• Fleet renewal and environmental upgrades have improved operational and financial advantages, supporting shareholder value through a declared $0.05 per share dividend.

• Maintains strong liquidity of $276.1M and a comfortable debt profile with 35% consolidated leverage and $545.6M in total debt as of December 31, 2024.

• Management and board own 48% of shares, aligning interests with public shareholders.

Financial highlights

• Q4 2024 net revenues were $74.5M, down from $85.5M in Q4 2023; full-year 2024 revenues rose to $320.7M from $295.4M in 2023.

• Adjusted EBITDA for Q4 2024 was $40.7M, down from $50.7M in Q4 2023.

• Adjusted EPS for Q4 2024 was $0.15–$0.20, compared to $0.25–$0.30 in Q4 2023.

• Net income for Q4 2024 was $19.4M, down from $27.6M in Q4 2023.

• Average TCE for Q4 2024 was $16,521, compared to $18,321 in Q4 2023; daily vessel opex increased to $5,047 from $4,642.

Outlook and guidance

• Expects a relatively soft dry bulk market in coming quarters as supply growth outpaces demand; global dry bulk demand forecasted to fall by 1% in 2025, then grow by 2.5% in 2026, with minor bulks leading growth.

• Focus remains on environmental upgrades, with 7 Phase 3 newbuilds (including 2 methanol dual-fuel) scheduled for delivery through 2027.

• Regulatory decisions in 2025 likely to impact the pace of decarbonization.

• Contracted revenue as of early 2025: $195.2M–$204.7M from non-cancellable charters.