Safe Bulkers, Inc. Reports Second Quarter and First Six Months 2013 Results and Declares Quarterly Dividend on Common Stock

Marketwired

ATHENS, GREECE--(Marketwired - Aug 21, 2013) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three- and six-months period ended June 30, 2013. The Company's Board of Directors also declared a quarterly dividend of $0.05 per share of common stock for the second quarter of 2013.

Summary of Second Quarter 2013 Results

  • Net revenue for the second quarter of 2013 decreased by 12% to $41.4 million from $47.0 million during the same period in 2012.
  • Net income for the second quarter of 2013 increased by 14% to $24.6 million from $21.5 million, during the same period in 2012. Adjusted net income1 for the second quarter of 2013 decreased by 36% to $15.1 million from $23.7 million, during the same period in 2012.
  • EBITDA2 for the second quarter of 2013 increased by 14% to $36.1 million from $31.6 million during the same period in 2012. Adjusted EBITDA1 for the second quarter of 2013 decreased by 21% to $26.6 million from $33.7 million during the same period in 2012.
  • Earnings per share ("EPS") and Adjusted EPS1 for the second quarter of 2013 of $0.32 and $0.19 respectively, calculated on a weighted average number of shares of 76,679,328, compared to $0.28 and $0.31 in the second quarter 2012, calculated on a weighted average number of shares of 76,653,848.
  • The Company's Board of Directors declared a dividend of $0.05 per share of common stock for the second quarter of 2013.

Summary of Six Months Ended June 30, 2013 Results

  • Net revenue for the first six months of 2013 decreased by 6% to $85.7 million from $91.1 million during the same period in 2012.
  • Net income for the first six months of 2013 decreased by 6% to $40.6 million from $43.2 million. Adjusted net income for the first six months of 2013 decreased by 33% to $31.0 million from $46.5 million, during the same period in 2012.
  • EBITDA for the first six months of 2013 increased by 2% to $63.6 million from $62.3 million during the same period in 2012. Adjusted EBITDA for the first six months of 2013 decreased by 18% to $54.0 million from $65.6 million during the same period in 2012.
  • EPS and Adjusted EPS for the first six months of 2013 of $0.53 and $0.40, respectively, calculated on a weighted average number of shares of 76,676,422, compared to $0.58 and $0.63 for the same period in 2012, calculated on a weighted average number of shares of 74,261,399.

Public Offering and Concurrent Private Placement of Series B Preferred Shares

In June 2013, the Company completed a public offering of 800,000 shares of its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share (the "Series B Preferred Shares"), and a concurrent private placement of 800,000 Series B Preferred Shares to Chalkoessa Maritime Inc., an entity associated with its chief executive officer, Polys Hajioannou, at a price of $25.00 per share.

The aggregate gross proceeds from the public offering and the private placement, before the underwriting discounts and other offering expenses, were $40,000,000. The Series B Preferred Shares are traded on the New York Stock Exchange under the ticker symbol SB.PR.B.

On July 30, 2013, the Company paid the first cash dividend on its Series B Preferred Shares.

Fleet and Employment Profile

In April and May 2013, the Company took early redelivery of the Sophia, Vassos and Katerina, respectively, ahead of their contracted earliest redelivery dates of September 19, 2013, October 2, 2013, and January 1, 2014, respectively. In connection with these early redeliveries, the Company recognized early redelivery income of $7.1 million, net of commissions, consisting of cash compensation paid by the relevant charterers of $7.7 million, less accrued revenue of $0.6 million. The Company has employed Sophia and Vassos with new charterers in the spot market and Katerina with a new charterer on a period time charter.

In April 2013, the Company entered into two shipbuilding contracts with a Japanese shipyard for the construction of two eco-design, 77,000 dwt, Panamax class vessels. The first vessel is scheduled for delivery during the second half of 2014, and the second vessel is scheduled for delivery during the first half of 2015. Each has a purchase price of $28.0 million.

In June 2013, the Company entered into a Memorandum of Agreement for the acquisition of the Xenia, a 2006-built, Japanese second-hand, post-Panamax class vessel of 87,000 dwt, for a purchase price of $19.5 million. Xenia was delivered to the Company in July 2013.

In July 2013, the Company took delivery of the Zoe, (Hull No. 814), a 75,000 dwt, Japanese, newbuild, Panamax class vessel, for a purchase price of $29.5 million.

As of August 19, 2013, the Company's operational fleet was comprised of 28 drybulk vessels with an average age of 5.2 years and an aggregate carrying capacity of 2.5 million dwt. The fleet consists of eight Panamax class vessels, seven Kamsarmax class vessels, eleven post-Panamax class vessels and two Capesize class vessels, all built 2003 onwards.

As of August 19, 2013, the Company had contracted to acquire seven additional drybulk newbuild vessels, with deliveries scheduled at various dates through 2015. The orderbook consists of four Panamax class vessels, two Post-Panamax class vessels and one Capesize class vessel.

Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of August 19, 2013:

                     
Vessel Name   DWT   Year Built (1)   Country of construction   Charter Rate (2)USD/day   Charter Duration (3)
CURRENT FLEET
Panamax
Maria   76,000   2003   Japan   10,500   Aug 2013 - Oct 2013
Koulitsa   76,900   2003   Japan   10,500   Jun 2013 - Sep 2013
Paraskevi   74,300   2003   Japan   8,500   Aug 2013 - Mar 2014
Vassos   76,000   2004   Japan   10,000   Aug 2013 - Sep 2013
Katerina   76,000   2004   Japan   9,500   May 2013 - Oct 2013
Maritsa   76,000   2005   Japan   27,649 (4)   Mar 2013 - Jan 2015
Efrossini   75,000   2012   Japan   10,500   Aug 2013 - Oct 2013
Zoe   75,000   2013   Japan        
Kamsarmax
Pedhoulas Merchant   82,300   2006   Japan   BPI + 9.5%(5)   Jul 2013 - Jan 2015
Pedhoulas Trader   82,300   2006   Japan   BPI + 6.5% (6)   Aug 2013 - Jul 2015
Pedhoulas Leader   82,300   2007   Japan   13,250   Jun 2012 - May 2014
Pedhoulas Commander   83,700   2008   Japan   8,700   Jul 2013 - Aug 2013
Pedhoulas Builder   81,600   2012   China   8,450   Oct 2012 - Nov 2013
Pedhoulas Fighter   81,600   2012   China   6,000   Aug 2013 - Sep 2013
Pedhoulas Farmer   81,600   2012   China   8,000   Sep 2012 - Sep 2013
Post-Panamax
Stalo   87,000   2006   Japan   34,160   Mar 2010 - Feb 2015
Marina   87,000   2006   Japan   41,557   Dec 2008 - Dec 2013
Xenia   87,000   2006   Japan   8,500   Aug 2013 - Sep 2013
Sophia   87,000   2007   Japan   9,500   May 2013 - Sep 2013
Eleni   87,000   2008   Japan   41,738   Apr 2010 - Mar 2015
Martine   87,000   2009   Japan   12,000   Jul 2013 - Sep 2013
Andreas K   92,000   2009   South Korea   10,000   Dec 2012 - Feb 2014
Panayiota K   92,000   2010   South Korea   19,750   Aug 2013 - Sep 2013
Venus Heritage   95,800   2010   Japan   10,000   Jul 2013 - Sep 2013
Venus History   95,800   2011   Japan   16,750   Jul 2013 - Sep 2013
Venus Horizon   95,800   2012   Japan   10,500   Jul 2013 - Sep 2013
Capesize
Kanaris   178,100   2010   China   25,928   Sep 2011 - Jun 2031
Pelopidas   176,000   2011   China   38,000   Feb 2012 - Dec 2021
Subtotal   2,528,100    
NEW BUILDS
Panamax
Hull No. 1659   76,600   1H 2014   Japan        
Hull No. 1660   76,600   1H 2014   Japan        
Hull No. 821   77,000   2H 2014   Japan        
Hull No. 822   77,000   1H 2015   Japan        
Post-Panamax
Hull No. 1685(8)   84,000   2H 2015   Japan        
Hull No. 1686 (8)   84,000   2H 2015   Japan        
Capesize
Hull No. 8126   181,000   1H 2014   Japan   24,376 (7)   Jan 2014 - Jan 2024
Subtotal   656,200    
Total   3,184,300    
   
1) For newbuilds, the dates shown reflect the expected delivery date.
2) Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable. Charter agreements may provide for additional payments, namely ballast bonus, to compensate for vessel repositioning.
3) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of August 19, 2013, scheduled start dates. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.
4) Following the early redelivery of the Maritsa, in January 2013 the Company received a cash compensation payment of $13.1 million, which will be amortized over the period of the new period time charter with the same charterer. The agreed gross daily charter rate is $8,000.
5) A period time charter with at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium of 9.5%.
6) A period time charter with at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium of 6.5%.
7) The charter agreement grants the charterer the option to extend the period time charter for an additional twelve months at a time, at a gross daily charter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times. The charter agreement also grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the period time charter period, at a price of $39 million less 1.00% commission, decreasing thereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel and subsequently offers to sell such vessel to a third party.
8) Change of Hull Number of vessels 2396 and 2397 to 1685 and 1686 respectively.
   

The contracted employment of fleet ownership days is:

2013 (remaining) ......................54%
2013 (full year) ........................82%
2014 ......................................28%
2015 ......................................12%

Capital Expenditure Requirements and Liquidity

As of June 30, 2013, the remaining capital expenditure requirements to shipyards or sellers, net of commissions for the delivery of the seven newbuilds amounted to $232.2 million, of which $57.0 million is scheduled to be paid in 2013, $104.5 million is scheduled to be paid in 2014 and $70.7 million is scheduled to be paid in 2015.

As of June 30, 2013, the Company had liquidity of $175.5 million consisting of $56.8 million in cash and short-term time deposits, $9.0 million in short-term restricted cash, $3.9 million in long-term restricted cash, $65.8 million available under existing revolving credit facilities and $40.0 million undrawn availability against the Company's $50.0 million floating rate note.

Additionally, the Company continues to utilize the cash flows from operations generated by its contracted period time charters and the Company is able to borrow additional amounts secured by the Company's newbuild vessels, on which additional financing may be contracted, upon their delivery of such vessels to the Company as and if required.

Dividend Declaration on the Common Stock

The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.05 per share payable on or about September 13, 2013 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange on September 3, 2013.

The Company has 76,682,148 shares of common stock issued and outstanding as of today's date.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. 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 financial conditions. Accordingly, dividends might be reduced or not be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "Our Board of Directors has declared our twenty-first consecutive quarterly dividend since our IPO maintaining our policy to distribute a portion of our free cash flows to reward our common shareholders. We have strengthened our equity base by issuing an additional class of shares. The net proceeds of about $39 million strengthen our balance sheet and provide flexibility for further expansion during the low part of the shipping cycle as already demonstrated by our recent post-Panamax acquisition. These moves are designed to better position our Company to take advantage of the next shipping upturn and to create value for our common shareholders."

Conference Call

On Thursday, August 22, 2013 at 9:00 A.M. EDT, the Company's management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until September 5, 2013 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#

Slides and Audio Webcast

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Second Quarter 2013 Results

Net income increased by 14% to $24.6 million for the second quarter of 2013 from $21.5 million for the second quarter of 2012, mainly due to the following factors:

Net revenues: Net revenues decreased by 12% to $41.4 million for the second quarter of 2013, compared to $47.0 million for the same period in 2012, mainly due to weak charter market conditions. The Company operated 26.00 vessels on average during the second quarter of 2013, earning a TCE3 rate of $17,116, compared to 20.35 vessels and a TCE rate of $24,168 during the same period in 2012.

Vessel operating expenses: Vessel operating expenses increased by 24% to $10.4 million for the second quarter of 2013, compared to $8.4 million for the same period in 2012. The increase in operating expenses is mainly attributable to an increase in ownership days by 28% to 2,366 days for the second quarter of 2013 from 1,852 days for the same period in 2012.

Depreciation: Depreciation increased to $9.2 million for the second quarter of 2013, compared to $7.9 million for the same period in 2012, as a result of the increase in the average number of vessels operated by the Company during the second quarter of 2013.

Early redelivery income: During the second quarter of 2013, we recorded $7.1 million of early redelivery income, versus zero, for the same period in 2012. Early redelivery income recorded in the second quarter of 2013 was related to early termination agreements for the period time charters of our vessels Sophia, Vassos and Katerina.

Interest expense: Interest expense increased by 10% to $2.3 million in the second quarter of 2013 from $2.1 million for the same period in 2012 as a result of the increase in the average amount of long-term debt of the Company outstanding during the second quarter of 2013.

Gain/(Loss) on derivatives: Gain on derivatives was $2.5 million in the second quarter of 2013, compared to a loss of $2.1 million for the same period in 2012, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that are employed to manage the risk relating to interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 3.2 years as of June 30, 2013. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Daily vessel operating expenses4: Daily vessel operating expenses decreased by 2% to $4,414 for the second quarter of 2013, compared to $4,526 for the same period in 2012. The decrease is mainly attributable to the decrease in lubricant and store expenses in the second quarter of 2013 compared to the same period in 2012.

Daily general and administrative expenses4: Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs payable to third parties in relation to our operation as a public company, decreased by 7% to $1,234 for the second quarter of 2013, compared to $1,333 for the same period in 2012. The decrease is mainly attributable to the higher number of ownership days during the second quarter of 2013, compared to the second quarter of 2012.

Unaudited Interim Financial Information and Other Data

   
SAFE BULKERS, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  
(In thousands of U.S. Dollars except for share and per share data)  
   
    Three-Months Period Ended
June 30,
    Six-Months Period Ended
June 30,
 
    2012     2013     2012     2013  
REVENUES:                        
  Revenues   47,875     42,429     92,679     87,600  
  Commissions   (860 )   (986 )   (1,591 )   (1,932 )
  Net revenues   47,015     41,443     91,088     85,668  
EXPENSES:                        
  Voyage expenses   (2,255 )   (1,255 )   (3,566 )   (5,290 )
  Vessel operating expenses   (8,383 )   (10,443 )   (16,480 )   (20,357 )
  Depreciation   (7,898 )   (9,153 )   (15,219 )   (17,989 )
  General and administrative expenses   (2,469 )   (2,919 )   (4,802 )   (5,560 )
  Early redelivery income   -     7,050     -     7,050  
  Operating income   26,010     24,723     51,021     43,522  
                         
OTHER (EXPENSE) / INCOME:                        
  Interest expense   (2,071 )   (2,297 )   (3,896 )   (4,872 )
  Other finance costs   (219 )   (233 )   (610 )   (449 )
  Interest income   272     243     553     514  
  (Loss)/Gain on derivatives   (2,127 )   2,473     (3,368 )   2,536  
  Foreign currency gain/(loss)   10     (10 )   -     26  
  Amortization and write-off of deferred finance charges   (332 )   (325 )   (544 )   (634 )
  Net income   21,543     24,574     43,156     40,643  
  Less Preferred dividend   -     151     -     151  
  Net income available to common shareholders   21,543     24,423     43,156     40,492  
                           
  Earnings per share   0.28     0.32     0.58     0.53  
Weighted average number of shares   76,653,848     76,679,328     74,261,399     76,676,422  
                         
                         
                         
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
 
    December 31, 2012   June 30, 2013
ASSETS        
  Cash, time deposits and restricted cash   125,524   65,792
  Other current assets   46,305   52,106
  Vessels, net   810,001   825,272
  Advances for vessel acquisition and vessels under construction   39,902   56,446
  Restricted cash non-current   3,923   3,923
  Long-term investment   50,000   50,000
  Other non-current assets   6,559   7,007
  Total assets   1,082,214   1,060,546
         
LIABILITIES AND EQUITY        
  Current portion of long-term debt   19,199   15,069
  Other current liabilities   28,294   26,988
  Long-term debt, net of current portion   596,468   510,527
  Other non-current liabilities   12,397   10,042
  Shareholders' equity   425,856   497,920
  Total liabilities and equity   1,082,214   1,060,546
           
           
           
TABLE 1  
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA  
AND ADJUSTED EPS  
   
    Three-Months
Period Ended June 30,
    Six-Months
Period Ended June 30,
 
(In thousands of U.S. Dollars except for share and per share data)   2012     2013     2012   2013  
Net Income - Adjusted Net Income                      
Net Income   21,543     24,574     43,156   40,643  
Less Early redelivery income   -     (7,050 )   -   (7,050 )
Plus Loss/(gain) on derivatives   2,127     (2,473 )   3,368   (2,536 )
Plus Foreign currency loss/(gain)   (10 )   10     -   (26 )
Adjusted Net Income   23,660     15,061     46,524   31,031  
                       
EBITDA - Adjusted EBITDA                      
Net Income   21,543     24,574     43,156   40,643  
Plus Net interest expense   1,799     2,054     3,343   4,358  
Plus Depreciation   7,898     9,153     15,219   17,989  
Plus Amortization   332     325     544   634  
EBITDA   31,572     36,106     62,262   63,624  
Less Early redelivery income   -     (7,050 )   -   (7,050 )
Plus (Gain)/loss on derivatives   2,127     (2,473 )   3,368   (2,536 )
Plus Foreign currency (gain)/Loss   (10 )   10     -   (26 )
ADJUSTED EBITDA   33,689     26,593     65,630   54,012  
                       
EPS - Adjusted EPS                      
Net Income   21,543     24,574     43,156   40,643  
Less Preferred dividend   -     151     -   151  
Net Income available to common shareholders   21,543     24,423     43,156   40,492  
Weighted average number of shares   76,653,848     76,679,328     74,261,399   76,676,422  
EPS   0.28     0.32     0.58   0.53  
Adjusted Net Income   23,660     15,061     46,524   31,031  
Less Preferred dividend   -     151     -   151  
Adjusted Net Income available to common shareholders   23,660     14,910     46,524   30,880  
Adjusted EPS   0.31     0.19     0.63   0.40  
                       

Adjusted Net Income represents net income before gain/(loss) on derivatives and foreign currency. 

Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain/(loss) on derivatives and foreign currency. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects of early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under US GAAP. EBITDA and Adjusted EBITDA should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.

   
TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS   
   
    Three-Months
Period Ended
June 30,
    Six-Months
Period Ended
June 30,
 
    2012     2013     2012     2013  
                                 
FLEET DATA                                
Number of vessels at period's end     21       26       21       26  
Average age of fleet (in years)     4.14       5.21       4.14       5.21  
Ownership days (1)     1,852       2,366       3,570       4,613  
Available days (2)     1,852       2,348       3,570       4,567  
Operating days (3)     1,825       2,344       3,541       4,558  
Fleet utilization (4)     98.5 %     99.1 %     99.2 %     98.8 %
Average number of vessels in the period (5)     20.35       26.00       19.62       25.49  
                                 
AVERAGE DAILY RESULTS                                
Time charter equivalent rate (6)   $ 24,168     $ 17,116     $ 24,516     $ 17,600  
Daily vessel operating expenses (7)   $ 4,526     $ 4,414     $ 4,616     $ 4,413  
Daily general and administrative expenses (8)   $ 1,333     $ 1,234     $ 1,345     $ 1,205  
                                 
(1) Ownership days represent the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
(2) Available days represent the total number of days in a period during which each vessel in our fleet was in our possession net of off-hire days associated with scheduled maintenance, which includes major repairs, drydockings, vessel upgrades or special or intermediate surveys.
(3) Operating days represent the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, excluding scheduled maintenance.
(4) Fleet utilization is calculated by dividing the number of our operating days during a period by the number of our ownership days during that period.
(5) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(6) Time charter equivalent rates, or TCE rates, represent our charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
(7) Daily vessel operating expenses include the costs for crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance, statutory and classification expense, drydocking, intermediate and special surveys and other miscellaneous items. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.
(8) Daily general and administrative expenses include daily fixed and variable management fees payable to our Manager and daily costs payable to third parties in relation to our operation as a public company. Daily general and administrative expenses are calculated by dividing general and administrative expenses by ownership days for the relevant period.

About Safe Bulkers, Inc.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services. The Company's common stock and series B preferred stock are listed on the NYSE, where they trade under the symbols "SB" and "SB.PR.B", respectively. The Company's current fleet consists of 28 drybulk vessels, all built 2003 onwards, and the Company has contracted to acquire seven additional drybulk newbuild vessels to be delivered at various dates through 2015.

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

1 Adjusted net income, Adjusted EPS and Adjusted EBITDA represent Net Income, EPS and EBITDA before early redelivery income, gain/(loss) on derivatives and foreign currency respectively. See Table 1.

2 EBITDA represents net income plus interest expense, income tax expense, depreciation and amortization. See Table 1.

3 Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.

4 See Table 2.

Contact:
For further information please contact:

Company
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel.: +30 2 111 888 400
Fax: +30 (210) 895-4159
E-Mail: directors@safebulkers.com

Investor Relations / Media
Nicolas Bornozis, President
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, N.Y. 10169
Tel.: (212) 661-7566
Fax: (212) 661-7526
E-Mail: safebulkers@capitallink.com

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