Safe Bulkers, Inc. posted financial results reflecting operational strength during the quarter, with adjusted EBITDA reaching $50.3 million. This performance was underpinned by favorable conditions in the charter market and enhanced profitability from its bareboat charter vessel segment.
The company has been pursuing a comprehensive fleet modernization program, taking delivery of 14 Phase 3 newbuilds over the preceding five years. This strategy has maintained a competitive average fleet age of 10.3 years while positioning the company for long-term competitiveness. Additionally, Safe Bulkers has achieved a 22% reduction in carbon intensity through environmental improvements and the deployment of fuel-efficient Eco vessels, reflecting its focus on operational sustainability.
Management emphasized its competitive positioning through hands-on operational oversight and high industry standards, including completion of the DryBMS audit process among a select group of global operators. The company maintains a pure-play dry bulk focus with all seven Capesize vessels secured under period time charters, generating a $105 million revenue backlog. Financial projections for 2026 anticipate favorable market dynamics, with demand growth of 3% expected to exceed supply growth of 2% under baseline scenarios.
Looking ahead, the company has 10 newbuilds remaining on its order book scheduled for delivery through 2029, including two dual-fuel vessels arriving in Q1 2027. Management noted that $277 million in planned capital expenditures are supported by $343 million in current liquidity and $154 million in contracted revenue backlog. The company maintained a conservative leverage ratio of 30%, with net debt per vessel at approximately $8 million, while retaining additional borrowing capacity exceeding $200 million.
Management identified potential headwinds including softening Chinese iron ore demand anticipated in the second half due to inventory accumulation, persistent inflationary pressures, and China’s policy shift toward agricultural self-sufficiency. The company also highlighted structural opportunities within the global dry bulk fleet, noting that 30% of vessels exceed 15 years of age and face elevated maintenance costs and regulatory restrictions.
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