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- month period ended June 30, 2014. The Board of Directors of the Company also declared a quarterly dividend of $0.06 per share of common stock for the second quarter of 2014.

Summary of Second Quarter 2014 Results

Net revenues for the second quarter of 2014 decreased by 10% to $37.2 million from $41.4 million during the same period in 2013.

Net income for the second quarter of 2014 decreased by 91% to $2.1 million from $24.6 million, during the same period in 2013. Adjusted net income1 for the second quarter of 2014 decreased by 79% to $3.2 million from $15.1million, during the same period in 2013.

EBITDA2 for the second quarter of 2014 decreased by 58% to $15.1 million from $36.1 million during the same period in 2013. Adjusted EBITDA1 for the second quarter of 2014 decreased by 39% to $16.3 million from $26.6 million during the same period in 2013.

Earnings per share (“EPS”) and Adjusted EPS1 for the second quarter of 2014 of $0.01 and $0.02 respectively, calculated on a weighted average number of shares of 83,444,365, compared to $0.32 and $0.19 in the second quarter 2013, calculated on a weighted average number of shares of 76,679,328.

The Board of Directors of the Company declared a dividend of $0.06 per common share for the second quarter of 2014.

Summary of Six Months Ended June 30, 2014 Results

Net revenues for the first six months of 2014 decreased by 8% to $78.5 million from $85.7 million during the same period in 2013.

Net income for the first six months of 2014 decreased by 67% to $13.3 million from $40.6 million. Adjusted net income1 for the first six months of 2014 decreased by 62% to $11.8 million from $31.0 million, during the same period in 2013.

EBITDA2 for the first six months of 2014 decreased by 39% to $38.9 million from $63.6 million during the same period in 2013. Adjusted EBITDA1 for the first six months of 2014 decreased by 31% to $37.4 million from $54.0 million during the same period in 2013.

EPS and Adjusted EPS1 for the first six months of 2014 of $0.13 and $0.11, respectively, calculated on a weighted average number of shares of 83,442,759, compared to $0.53 and $0.40 for the same period in 2013, calculated on a weighted average number of shares of 76,676,422.

Public Offering of Series C and Series D Preferred Shares

In May 2014, the Company concluded its previously announced public offering of 2,300,000 shares of its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share (the “Series C Preferred Shares”) at a price of $25.00 per share, which included 300,000 shares sold pursuant to the full exercise of the underwriters’ overallotment option. The aggregate gross proceeds from this public offering, before the underwriting discount and other offering expenses, were $57,500,000.

In June 2014, the Company concluded its previously announced public offering of 3,200,000 shares of its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share (the “Series D Preferred Shares”) at a price of $25.00 per share, which included 400,000 shares sold pursuant to the partial exercise of the underwriters’ overallotment option. The aggregate gross proceeds from this public offering, before the underwriting discount and other offering expenses, were $80,000,000.

The Series C and Series D Preferred Shares are traded on the New York Stock Exchange under the ticker symbol SB.PR.C and SB.PR.D, respectively.

In July 2014, the Company declared a cash dividend of $0.50 per share on its 8.00% Series B Preferred Shares for the period from April 30, 2014 to July 29, 2014 and a cash dividend of $0.46667 per share on its 8.00% Series C Preferred Shares for the period from May 7, 2014 to July 29, 2014. Each dividend will be paid on July 30, 2014 to all shareholders of record as of July 25, 2014 of the Series B Preferred Shares and Series C Preferred Shares, respectively. This is the fifth consecutive cash dividend declared on the Company’s Series B Preferred Shares and the first cash dividend declared on its Series C Preferred Shares, since their respective commencement of trading on the New York Stock Exchange.

The Company has 1,600,000 Series B Preferred Shares, 2,300,000 Series C Preferred Shares and 3,200,000 Series D Preferred Shares outstanding as of today.

Fleet and Employment Profile

As of July 28, 2014, the Company’s operational fleet comprised of 31 drybulk vessels with an average age of 5.6 years and an aggregate carrying capacity of 2.9 million dwt. The fleet consists of 10 Panamax class vessels, 7 Kamsarmax class vessels, 11 Post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. As of July 28, 2014, the Company had contracted to acquire 13 new eco-design newbuild vessels, comprised of 6 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 2 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be new eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt and average age of 6.1 years.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: “Carrying the experience over many shipping cycles, our company maintains lean operations and low cost structure resulting in a low break-even point. We have substantial liquidity and our newbuild program is fully financed. Our profits, currently influenced be the prevailing weak charter market conditions due to our exposure in the spot market, have substantial upside potential during a market turnaround. In this context our Board of Directors has declared a quarterly dividend of six cents per common share.”

Source: Safe Bulkers