Q4 2022 Safe Bulkers Inc Earnings Call
[music].
Thank you for standing by ladies and gentlemen, and welcome to the State Bulgars conference call to discuss the fourth quarter 2022 financial results.
Today, we have with us from safe Bulker, Chairman and Chief Executive Officer, Mr. Polish Times, Yahoo, President Lukas Barn, Paris, and Chief Financial Officer, Mr. Konstantinos, Adam I'll pull it.
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I must advise you that this conference is being recorded today.
Before we begin please note that this presentation contains forward looking statements as defined in the infection 27, a of the Securities Act of 1933 as amended and section 21 E of the Securities Exchange Act of 1934 as amended.
Turning future events, the companys 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 Sir Sharon's can be given that the expectations will.
Well.
Prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which 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.
That could cause actual results to differ materially include but are not limited to changes in demand for dry bulk vessels competitive factors in the market and what's the company operates risks associated with the 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 publicly any.
Publicly 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.
And now I will pass the floor to Dr. Foreign Paris. Please go ahead Sir.
Yeah.
Yeah.
And that's not by each stage of the two buckets.
Lincoln Goldman School in place.
If I missed that.
Both of those games.
David mentioned.
Okay.
Okay.
In the fourth quarter 2015.
No one.
Understood.
Okay.
Our balance sheet.
And we wanted to buy.
Production mix the concern about the ability to bulk up the stack.
Yeah.
We are focused on that.
Through our extensive work with each one.
Well.
Okay.
Okay.
The financial performance of <unk>.
Yeah.
Yeah.
Let me see.
<unk>.
Oh, okay.
Sean physical body naturally decline.
Right.
Maybe let's start with.
The market update slide three.
And with that.
Slide <unk>.
We see the market.
Yes, I don't know if we can obviously kind of an example should the market.
It's something we'd get made yesterday the death of the season.
Turning to page 10.
Yes, Mike Mcmillan.
Yes.
And by the facilities, what I said.
When the final modules.
The mortgage market.
So it might be helpful.
So do all of the cyclical part of the year.
Let me remind you here that gave them better.
And then it's David.
Okay.
Moving to slide five.
We seem to debate.
Great.
The mortgage piece here in Q2 90 for example.
I think I'm sure you've.
Smith.
That doesn't make him to lead the presumed leading indicators we see.
They are excited to be served outside.
At the same time.
1045.
I see.
Sure.
You're going to see a fall.
<unk> five in place.
And the ocean water.
Great.
Yeah.
Collection of monetary policy, we expect the global <unk>.
Jim already forecasted by email.
Okay.
GBP, 39%.
They've been pretty good on inflation protection.
Pete.
Can you give us more.
Right.
Good morning, guys.
This is the question.
Sure.
And you said environment Gotcha.
<unk>.
Please.
Christine.
Chinese alumina and.
As expected these children.
It can be found.
Great potential.
Hum.
All right.
With me.
Ladies and gentlemen.
Right.
Sure.
Yes.
Okay.
If you look at the Ocean.
And my prediction.
Could you repeat that.
Great.
Global investment.
But we continue to win.
The global economy.
Yes.
Oh sure.
And then the CDP is what I'm trying to find any big pickup from 90.
It's an option for example, China.
When we have learnt shine.
Right.
Despite the global headwinds.
Thank you.
Got it.
Yes.
Initially it was a very bad.
It's about eight 6%.
No.
Okay.
In conclusion, we remain cautiously optimistic.
And then more of about 25% of the medium sized vessels.
John .
I think we're fine.
Hey, Jim.
Yes.
I should say.
This is Jamie.
Let me point out here.
We thought about the company.
This is 40% of the global fleet.
Which means that our fleet leasing.
We think this is better than market related income.
Bottom line declining lowered it because you guys ship.
From our industry.
Secondly, one of them.
The green shoots enables companies to absorb any potential globally.
Yes.
So we intend to do that.
And compete on the basal dilation.
With Goldman <unk>.
Yes.
I see.
Hey, Jason.
I think that's paid zero okay.
The only thing that's going on.
The dry bulk fleet.
You.
You cited the nation.
One indication.
And we just wanted to hear your thoughts.
Yes.
The one in 2012.
And you can see but it's not worth it.
It seems to be better.
And extensive.
Yes.
Understood.
No.
David will be delivered.
And have you seen.
Got it made some employee benefit program engagement and energy efficiency.
Actually two of them.
Great.
Okay.
Okay.
Congratulations by the industry.
But what I see.
Good evening.
And then you see.
Oh <unk>.
Right.
We've got the only choice.
One can say I guess.
Yes.
It's something that we must be in Asia.
Great.
But nobody can you get it out.
Okay.
Thank you Chico Nishu.
Related to environmental stewardship.
Okay.
Yes.
Computing right.
And even in the best possible a new team some time to reach the abundance issue.
Yes.
Slide number.
Number eight.
The gas event.
Oh gosh.
Yeah.
Yes.
And as we speak.
Hey, Betsy.
Thanks.
And.
Nishu.
<unk> God.
Multiple times.
Or do you continue to <unk>.
Great.
Yeah.
Global fleet being classified as <unk>.
Okay.
Oh sure so on the left.
Granted second did I get that.
And the fishing vessels.
Through the market downturn.
They've got a great story.
We just know what you think.
The environment in the future and this is the reason why we have today.
And due to all this.
Why.
Like any statement.
Got it.
Right.
We focus on.
The intrinsic value creation, I think Jeff about investments in cannabis.
On the <unk> guidance.
That includes stores the old 19th about vision.
Total different that it would be probably between.
Between 348, two weeks due to the size of the Kansas.
This is Andrew.
One of them actually listen to what's been there.
There is no substitute.
The annuity business.
Nike for AGL.
Thank you Pete.
Got it.
Thank you.
Okay fine.
It's about 246 stores.
100 and capability.
I sent a futures market.
I've been a student of and it's great to kind of bullish with downstream to play.
A blank slate of games.
Great.
For all of next year.
Okay.
Completely.
I'll walk in June 10.
Julian.
Great.
Yeah.
City wide volatility, but EBIT by June to bluestem snapshots impacting one of them.
And it seems to me that I remember their installations.
The government agencies.
Important trade by trade and dedicated chunky months, most of that increase in sheet CHF enjoyed the scrutiny.
I see.
Catherine.
Yes.
Environment and PC.
Lee.
May affect the company's foundations and needs to keep that market in the future.
Yes.
Okay.
That's it.
Is it more of a combined effect of the agency.
Below the knee.
Uhm.
With more efficient funding sources.
What do we have people that have been.
And believe it.
In this market of English embedded windows based competition.
<unk> taken the bulk of that activity.
Okay.
With all of them.
Okay.
Wow.
Ultimate amendments.
And an alignment of interest for this.
No.
Inc ownership participation.
No never comfortable liquidity and contracted revenues.
Revenues.
And then the other.
It's an.
An extensive fleet expansion program to exceed three unique and that's great news.
Our existing fleet.
Or what are you not only get rolled out.
Sure.
But also in vacancy for a greener more competitive.
Yes.
The ocean fishing fleet.
And by the amendment because she can be.
We should complete the market additional peers.
Okay.
Vessel in our fleet capable of babies, who have already voted.
Do you think.
Okay.
By the end of the year.
Brady. This is will give elemental you upgraded by the end of this year.
No.
We have already taken delivery piece.
To date the NV.
Nauseous ended Glenn.
And maintain retain 23 guidance.
This is a diamond in the fishing environment the performance nobody here Tonight about the market.
And the donor.
Savings in fuel consumption.
To compete in this space is going to take we'll ship fleet.
Kevin.
But again to <unk> 23.
During the day before.
Hey, Margaret.
Coupled with big fish.
Great.
Yeah, I've got a couple of dozen vehicles shipped in the same phase III basically paying between quarterly periods.
We don't compete with them.
Okay.
And our focus now.
To us beginning Tonight.
We maintain a formidable evidence of 74%.
Yeah.
Oh great.
We're kind of getting to $3 million.
Combined with a P value, which presently is pretty neat.
Although our business simply by DHL.
Judy basically.
The weighted average interest rate.
5%.
Our consolidated debt.
A portion of the 100 million Euro.
$95.
Yeah honestly to spike here.
In addition, we had 100 during the <unk> meeting in Paris.
In the 2019.
It's a huge contract.
Absolutely yes.
I think we need to.
Another topic I presume in slide 14.
That's helpful.
Currently.
Next ski season.
Which together with the product revenue was 292 million might be.
Management and capital allocation.
Yes, we know that.
Yeah, well hedged against the market.
Got in play as we said before the bus.
In the.
It sounds like.
All right.
Eight about 2%.
Thanks, Brad.
On the time charter.
For the year remaining duration in 19.
Our average daily rate.
Well, thank heavens immediately from Brexit to name a new syndicate.
Yeah.
Are you getting like 15.
And maybe if you can.
That's fine.
Well, that's the last school it's fluctuated.
Okay.
Looks like volumes in different settings.
Markets into one piece that we continue to benefit portion of our free cash flow to find them some unique revenue provider.
It's been picture consumption environment.
While maintaining all of the evidence today that could be.
So in addition to that the <unk>.
Students have been $2 8 million common shares.
Now, let me turn the investment that you're in that big bucket.
Slide 16.
Thanks, Brian .
How many of those companies would lead to successfully navigate through that.
Okay.
The energy transition and the agents.
And in the country.
<unk>.
And the efficiency.
And that amendment.
We believe that feedback is strong.
The amendment also financial flexibility.
Let the market challenges.
<unk>.
In parallel to the company's expansion we believe.
We also need to be rebuilt.
The company issued one confusion for loan to an environment of a base of bunkers.
Our strong balance sheet I'm going to be limited by that.
Uh huh.
Comparable.
Comparable limits.
Maggie.
Most of them will come yes.
Yes.
Sponsors with 11 phase III will be fixed.
In addition.
I remember regulations.
We launched the company exceeded management.
Experienced management team.
Which one confusion in the market challenges and to take advantage of opportunities.
Lithium battery.
Sure.
Well that was primarily.
Thank you Luke and good morning to everyone.
No.
Nothing Big weekend.
Get advice.
That's our biggest quarter ever used to go through all of that.
All right.
Is there anything from scrubber fitted vessels increased operating expenses and higher interest expenses.
Got it great.
In slide 18, we present, our quarterly and everything that's out there.
EBITDA, both up partially together.
Yeah.
Okay.
Moving on to slide 19.
First and foremost an example, a lot of management alignment.
I think the availability of <unk>.
<unk> thousand seven theory Donuts.
To prevent the $6180 during the same period in 2021.
Net income for the fourth quarter of 220 to $34 9 million compared to net income of $65 2 million, almost where you shouldn't be you don't need branches to meet demand.
Our daily run of course put about 5000 of them pretty hard.
Whereas with $5149 last year.
Why not daily Opex, excluding dry docking of pre delivery expenses.
4000 acreage.
But if it was $4666 for 2021.
R.
Our only in Opex and G&A for two for a blended rate.
So about $6760.
This is one of the most competitive compared to our peers.
Moreover, this include or not dry dockings expenses in Britain.
Expenses as we're now.
Alright, that's what I thought.
Patriot.
We tried to do what I think for example will have zero percent commission targeting modest demand and through our management.
We have seen lower hot button topic commercial partners.
Finally got below 4% comparable in the market from below 5%.
Moving to slide 20, we present, our fleet contracted by 100% of smelting, but also part of it then.
Combined revenues of approximately $299 $5 million.
Commissions.
Heathrow, Mark Noncancelable supported peer bank charters, excluding the primary benefit.
We began this nice Brett do you want to address it.
But if you're in the restaurant and food.
We believe me, it's one of the lowest in the industry.
And what is the cash flow bridge in minerals for the sad to hear that.
The global economy is experiencing market challenges.
So on the pioneer in obtaining that over a decade.
Getting financial conditions in most regions are asking us invasion of Ukraine, and the lingering COVID-19 pandemic all weighed heavily on the market outlook.
So our main focus has been about April this inflationary environment.
Slide 23, we will present, our balance sheet analysis, we believe our balance sheet is very healthy and Barclays are presented in the book value.
Why does it seem to move by fish.
Moving on to slide 24, with our quarterly financial highlights for the fourth quarter blended tool.
Compared to the same thing about 2021.
Our adjusted EBITDA for the fourth quarter, a threat to them.
So about 56 million.
We have a six to seven 6 million from the same thing as we do every day.
When do you want.
Our adjusted earnings per share for the fourth quarter was ready to go.
29% calculated on a weighted average number of $118 9 million shares.
Well, it's almost every line of essentially the same deal.
<unk> got the calculations and avoiding Dow, but it's not been a 100 plus one six minute walk test.
That's what pulled up in peso on slide 25, with a quarterly operating operation on Friday nights for the fourth quarter of 11.
Compared to the same periods from 'twenty to 'twenty one.
Various remarks that the struggling financially for.
Most of the companies that they have to file a shelf dividend per common share.
The last thing on my side I think.
We are maintaining a healthy cash position.
$116 million outflow primarily.
Then threat to 'twenty three.
$102 million available.
Available to anyone who could be possible.
As well as about $118 million, an undrawn borrowing capacity available under pre existing loan facilities in relation to a thing.
The three existing vessels.
Using our combined liquidity and capital resources.
5 million by providing us with significant firepower.
Furthermore, with our contracted whatever you called my mom constant up and supporting video fantastic conduct of Warburg.
We've got a $90 million.
Excluding <unk> revenue.
And at least another bordering capacity in relation to severance there pretty vessels.
Five you'll be upon their delivery.
We believe our strong liquidity and they're not going to know nevertheless will enable us to be flexible with our capital.
Obviously.
Why does seem to be rewarding shareholders and taking a bond that's a possibility.
In the near future. Thank.
Thank you Angela.
Not ready to accept questions.
Yeah.
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Yeah.
Okay.
Yeah.
Yeah.
Okay.
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Thank you there are no questions at this time.
Well. Thank you very much and we will be discussing again named in age.
The quarter for our Q1 financial results.
Thank you very much.
The next week.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.