Safe Bulkers Reports Fourth Quarter and Twelve Months 2018 Results

0
119

Safe Bulkers, Inc., an international provider of marine drybulk transportation services, on Tuesday announced its unaudited financial results for the three and twelve months period ended December 31, 2018.

Summary of Fourth Quarter 2018 Results

  1. Net revenues for the fourth quarter of 2018 increased by 24% to $52.6 million from $42.4 million during the same period in 2017.
  2. Net income for the fourth quarter of 2018 was $9.5 million as compared to a net loss of $86.6 million, during the same period in 2017. Adjusted net income for the fourth quarter of 2018 was $9.8 million as compared to $5.5 million, during the same period in 2017.
  3. EBITDA2 for the fourth quarter of 2018 was $28.9 million as compared to a loss of $68.1 million during the same period in 2017. Adjusted EBITDA3  for the fourth quarter of 2018 increased by 22% to $29.1 million from $23.9 million during the same period in 2017.
  4. Earnings per share4 and Adjusted earnings per share4 for the fourth quarter of 2018 were $0.07 and $0.07 respectively, calculated on a weighted average number of 102,100,829 shares, compared to a Loss per share4 of $0.88 and Adjusted earnings per share of $0.02 during the same period in 2017, calculated on a weighted average number of 101,531,352 shares.

Summary of Twelve-Months Ended December 31, 2018 Results

  1. Net revenues for the twelve months of 2018 increased by 31% to $193.2 million from $148.0 million during the same period in 2017.
  2. Net income for the twelve months of 2018 was $27.7 million as compared to a net loss of $84.7 million, during the same period in 2017. Adjusted net income for the twelve months of 2018 was $28.4 million as compared to Adjusted net loss of $1.7 million, during the same period in 2017.
  3. EBITDA for the twelve months of 2018 amounted to $102.3 million as compared to loss of $8.4 million during the same period in 2017. Adjusted EBITDA for the twelve months of 2018 increased by 38% to $103.1 million as compared to $74.7 million during the same period in 2017.
  4. Earnings per share and Adjusted earnings per share for the twelve months of 2018 were $0.16 and $0.17, respectively, calculated on a weighted average number of 101,604,339 shares, as compared to Loss per share and Adjusted loss per share of $0.98 and $0.16 respectively, during the same period in 2017, calculated on a weighted average number of 100,932,876 shares.

Fleet and Employment Profile

In November 2018, the Company entered into a Memorandum of Agreement with an unaffiliated seller to acquire a Japanese built, dry-bulk, Post-Panamax class, resale, newbuild vessel, expected to be delivered within the first half of 2020. The Company has the option to finance up to 50% of the purchase price of the vessel through the periodic issuance of the Company’s common stock to the seller. In November 2018, the Company exercised its option and issued 1,441,048 shares of common stock of the Company to the seller, to finance the first instalment of the purchase price of the vessel. Any such common stock issued by the Company is subject to a restriction on transfer for a period of six months from the date of such issuance.

As of February 14, 2019, our operational fleet comprised of 41 drybulk vessels, 11 of which are eco-design, having an average age of 8.5 years and an aggregate carrying capacity of 3.8 million dwt. Our fleet consists of 14 Panamax class vessels, 10 Kamsarmax class vessels, 13 post- Panamax class vessels and 4 Capesize class vessels, all built from 2003 onwards.

Order book, newbuilds capital expenditure requirements and liquidity

As of December 31, 2018, the remaining order book of the Company consisted of one Post-Panamax class vessel with scheduled delivery date in the first half of 2020 and aggregate remaining capital expenditure of $30.4 million of which $7.0 million is payable within 2019 and $23.4 million is payable within 2020. The Company has the option to finance up to $13.2 million of the remaining capital expenditure of the vessel through the periodic issuance of the Company’s common stock to the seller.

As of December 31, 2018, we had liquidity of $92.5 million consisting of $81.8 million in cash and bank time deposits, $10.7 million in restricted cash.

As of February 14, 2019, we had liquidity of $94.4 million consisting of $84.0 million in cash and bank time deposits and $10.4 million in restricted cash, while orderbook and capital expenditure requirements remained unchanged since year end 2018.

Sea News, February 20