Safe Bulkers Q2 Earnings Call Highlights

Safe Bulkers NYSE: SB reported higher second-quarter earnings as stronger charter rates and increased bareboat charter income lifted revenue and profitability, while the company raised its quarterly dividend for a second consecutive quarter.

President Loukas Barmparis said the board increased the quarterly dividend to $0.075 per share, marking the company’s 19th consecutive quarterly dividend payment. He said the increase reflected financial performance supported by a relatively strong charter market. The company also has an active authorization to repurchase up to 10 million shares.

Since 2022, Safe Bulkers has paid $101 million in common dividends and spent $78 million on common-share repurchases, according to Barmparis. He said the company intends to continue balancing shareholder distributions with investment in its newbuilding program and fleet modernization.

Chief Financial Officer Konstantinos Adamopoulos said adjusted EBITDA totaled $50.3 million in the second quarter of 2026, compared with $25.5 million in the same period of 2025. Adjusted earnings per share were $0.28, based on a weighted average of 101.8 million shares, versus $0.01 per share a year earlier.

The company operated an average of 45.13 vessels during the quarter and generated an average time-charter-equivalent rate of $20,642 per day. In the second quarter of 2025, Safe Bulkers operated an average of 46.75 vessels at an average daily time-charter-equivalent rate of $14,875. Daily vessel operating expenses declined 6% year over year to $6,207. Daily running expenses, excluding dry-docking and crew-delivery costs, declined 3% to $5,455 per day.

For the first half of 2026, Safe Bulkers generated $169 million in revenue, which Barmparis said supports the company’s fleet-growth and modernization plans.

Safe Bulkers’ fleet consists of 46 vessels following the delivery of 14 Phase III newbuildings over the past five years. The company has 10 additional newbuildings scheduled for delivery through 2029, although management also referred to nine newbuildings when discussing additional borrowing capacity upon delivery. The company’s average fleet age was 10.3 years, compared with a global dry-bulk fleet average of 12.5 years, according to Barmparis.

Safe Bulkers has 14 Phase III vessels delivered since 2022 and has two dual-fuel newbuildings scheduled for delivery in the first quarter of 2027. Those vessels will be capable of operating on fossil fuels until alternative fuels are commercially available and economically viable, he said. Management said 26 vessels have received environmental upgrades over the past five years, including 11 Eco vessels. The company said these efforts and its fleet-renewal program have reduced fleet carbon intensity by 22%. Safe Bulkers also reported that none of its vessels were rated in the lowest “E” category under the Carbon Intensity Indicator framework, avoiding the need for additional capital spending associated with that rating.

Safe Bulkers reported net debt of approximately $8 million per vessel and a leverage ratio of 30% at quarter-end. Its liquidity and capital resources totaled about $343 million, including $143 million in cash, cash equivalents, bank deposits and restricted cash, plus $200 million available under revolving credit facilities. Contracted revenue backlog totaled about $154 million. Capital expenditure related to the newbuilding program totaled $277 million, of which $92 million had already been paid. Total debt was $519 million, including an unsecured €100 million loan. The wei...