Q2 2023 Safe Bulkers Inc Earnings Call
Thank you for standing by ladies and gentlemen, and welcome to the Safe Bulkeley Bulkers conference call to discuss the second quarter of 2023 financial results.
Today, we have with us Mr. Polish.
<unk>, Chairman and Chief Executive Officer Dr.
Dr. Lucas Barroom, Paras President and.
Mr Konstantinos.
And I'm up all this.
Financial officer of the company.
At this time all participants are in a listen only mode.
There'll be a presentation followed by your question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced.
Following this conference call if you need any further information on the conference call or on the presentation. Please contact capital link at 2126617566.
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 section 27, a of the Securities Act of 1933 as amended in section 21 E. As a theory Securities Exchange Act of 1934 as amended.
Concerning future events, the company's growth strategy and measures to implement implement such strategy.
Including expected vessel acquisitions and entering into further time charters.
Words, such as expect 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 assurance can be given that such expectations will prove to have been correct.
These statements involved known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties.
Inconvenient 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.
Factors that could cause actual results to differ material include but are not limited to changes in the demand for dry both vessels.
Competitive factors in the market in which the company operates.
Risks associated with the operation 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 are undertaking to release publicly and updates or revisions to any forward looking statements contained herein.
To reflect any change in the company's expectations with respect their toe or any change in events conditions or circumstances on which any statement is based.
And now I plus floor overtook Doctor bump Pars. Please go ahead Sir.
Morning.
The shape bikers.
What are you going to go out.
And that's what he does for the shipping.
2023.
Okay cool cause it's out there in the market weekend.
Which can be easily black people in Columbus.
We can deliver it.
Oh boy.
Right.
Like chocolate bar.
Throwing it.
Yeah.
Us reflection.
But at the same time of the war, though she had all day.
Like censorship.
Okay.
I'll come back to that you can set it up here.
Gus.
I should be.
Cutbacks requirements are adequately of it by out.
Living in a balance sheet.
[noise] at all.
I've been doing is it forward looking statements language he was like Dude.
Oh, you're just like the city.
There hasn't been a whole lot feeling indicate market gapes low letters.
It's worth noting that all of our games or for your truck.
Chuck there.
And now that it's really amazing chuckled duration about but yes, okay now, but it's fading in April $2000 when they might get got it at the 14th actually today's 15000.
I'm excited that shut that might cause remains very weak.
What we want to strike for the development of she gotta be commodity index, reflecting the basic core mortgage the future.
Fish.
Which represent the Kansas those for shipping, including energy, Okay, Gotcha, basically tomatoes, and Doctor I've met us.
But most people are actually declining sharply over the past months and according to the World Bank and it's right. It's double screens you aren't the same is protected.
After that I think about 45 per cent and Grandkids' great.
We continue to witness the increase you'll be interest rates.
Yesterday by imported over cause I send this for anybody to Canada.
There are supportive she make us able to fight global inflation, which is a result of the war and the Chinese economy weekend.
The July for Castro by M aspiration martinelli.
Good old for anything you three.
Okay Global G. D P. Two three per cent from 2.8% in Navy Blue.
Global inflation constriction redfin twenty-three stung the 6.8 per cent due to the war in Houston Fry fish rashes on energy prices and then the supply demand balance.
According to be go there for.
Global demand Grove stands out 2%.
Increase in 2023, and the C D. The humane sports at about 2.3 per cent, okay and keep it in your city.
Hi, inflation in recent financial etc, turmoil exceeded soft landing expectations of what they call it.
The underlying inflation is projected to decline the more gotcha, and therefore catch 2024 inflation were revised upwards to 5.2 per cent.
In the China Dammit.
July rejection Grove.
English stable a high 0.2%.
Though there are signs that the consumption liberty comedy which slow.
Yeah, I don't really shows the real estate problems and they've got it across the border spillover assess the Chinese economy seems to be losing steam think reading's good weekend unexpected demand.
Inflation may be well below the diapers and the seller among got aimed at us today.
Nonetheless continued weakness in the real estate ticket.
He said weighing on your best friend, the flooring demands that he managed weak and rising at an elevated.
Unemployment at 20.8% and make any three the gauge future labor market weakness.
India, she maintenance and expectation as you'd expect that they're getting a message through life, which makes sense, what a 6.1% increase in the vehicle for any twenty-three and engaged from 5.8% in Navy I said, it's out of stronger domestic but.
The World Bank commodity price index declined by two per cent. That's it was bunk July 23 protection forecast.
At 21% drop in commodities for the whole 2023.
Let's move on to a lot of food supply side Espies anything slide five.
The Doctor will did I bought a book stands up to single digits will remain cautiously optimistic about the medium term prospects of the face market I mean years.
About 25 per cent of the medium sized sleep is always 15 years old.
Okay aging Antivitamin regulations unexpected bill accelerated just dry.
The finest pizza bashes like all this stuff mortification designs as.
As we said page pishin about a previous attempt by me to speak.
40% of the global fleet, which means that the outfit from India.
In the forthcoming in about a minute.
Chuckling Mike.
One of the very few today about companies with the face the order book I heard about fear signifying our intention to compete under basically British.
<unk> performance.
I've seen like six they might give you about 50 aus 80 face shape buckish openings today 44 vessels celebrate sheep's bleak after 30 40 and 12.
Failure face.
Faith Street, you'll be.
Seven of which we have been delivered by the end of 23.
Dining in major ongoing and Benjamin that upgrade broker increasing the energy efficiency.
Existing fleet shut and prostitution shields, great nations on our vessels.
This is this program is also.
It reflected in increased Opex us low friction preparation.
And face I've, not capitalized, but I'd expect.
We had expected from leaked upgrades and 20 visits by the industry and it's going to be three.
Saturday, we are Asian from time to time by your bills and.
Monitoring the development of looked at and computers.
Conclusion might get drinks like seven during the first Ah any for any city. There has been an increase the industry wide volatility driven by just by cheerful it's Kansas.
<unk> in fact monetary policies demand demand technologically pieces, she creates opportunities for those willing to invest a safe bye have done.
Such environmental efficient leaks may lead to beat she had a market.
Initially net earnings capacity of such fleets.
We believe that the combined effects of the aging of the at least the law and then you were the glaciers, we fabled speech compression pistons have but I need dressers and this is David after 10 to 14 that didn't even make it even faster.
Let me be the savings like eight seconds.
Six foot and save us from our peers.
They keep on the amendment.
Alive and there'll be a good.
Thank you.
Interested in management and ownership.
Comfortable leverage of 55% downwardly bluesy and protect.
Out there for the creation will be three seek values through all girls, they see newbies and the environment that upgrading about it just in case.
Cause I've already taken the liberty of false face the beach, which are the best performing this is on the.
That way the donuts and they drive about market globally, we tend to compete on the basis of lower sugar consumption and environmental performance.
Yes.
Lee concurrently with building.
The future of this company. We have question really been working out she had all those with that what we consider to be meaningful.
Let schools, there's no no liquidity, all cash flows and they'll come to the stocks would us be savings like night.
Maintaining it comfortable liberated show of about 55% outfit or 453 million remains.
Toyota each cup value of the become 85 million. Although a fleet is only 10 points thinks he is all thank you continue to be the same age and extra yes, Escuela Liberty, hoping you.
A specialist in our fleet outweighed the other it seemed illustrates would slightly below six per cent per hour consolidated with your portion of it was hung millions Europe being fixed.
295 for pointing any actually could I get bombed.
Paid 73.8 million for that capital expenditure requirements in relation to swap or they look for a new books have already paid this amount and the remaining capital expenditure of 210 million, Connecticut, how liquidity Uptown dishwasher, some strong accomplishments they got a million, which together with a conductor Avenue of 2000.
Provide flexibility to our management.
Location.
Have the modem, how 'bout additional bowling capacity in relation to seven excuse me.
This is for your boots up on the deliberate.
Let's move just like 10, and where are we analyzing the best in the restaurant I was gonna say buckets, well have concluded eh share buyback program, having these budgets about 10 million shares we declared that would give you five cents per share over the last seven and a bunch of taking the photos rewarding out she had all this while directing remaining castro's with finance, how it will be you'll be.
Program.
With a distinct pomato competitive advantage in terms of consumption and the vitamin a performance.
[noise] dangerous to maintain a relatively comfortable elaborates and it stunk balance sheets.
Believe that the state, but guess it.
Strong fundamentals ultra finance disability.
To reflect the market challenges in his shoe opportunities, we believe that they say buddy with each audio book cause I'm one of those companies that we need another gig the momentum intelligence the entities an issue, although the aging drive sleep by utilizing being shaded called dish of our fleet and a <unk> a wild rats skate environmental upgrade.
[noise] broke.
Before crashing to float two out of sheer focus I just got a multiple of whatever financial review, let me hear it a make a special note for the issuance of 2022 sustainability report, which has been prepared in accordance with the standards provided in the new Global reporting initiative G. R. I.
The sustainability reporting guidelines and this therapy, especially in a big accounting standards Board S. A S. B a recommendation for maritime transport alongside Additionally indicates bushes I thought it might be really.
Important to us and to our staff called Us.
This is both is available for download.
It's what all the website and I would like to invite you to the local news because we are doing a very good show.
We're trying to improve our environmental and she'll she'll governance separately.
Some people just upload is yours.
When you look outside with wanting to everyone other than a note during the second quarter to rent it rent or three where you are but it isn't a gradualist, we're getting towards the market.
Environment compared to the same period rented twenty-two with decreased revenues you to lower cars decreased earnings from scratch feed the vessels.
Operating expenses entirely.
You have to increase those days.
Slides 11, with our orderly front natural highlights for the second quarter of rented repertory compared to the same period of 2022.
Are adopted their beta.
For the second quarter of if he ever stood at $53.3 million.
6666, and a half million for the same period last year.
Does it the next per share for the second quarter of 23 was 12 cents calculator then their wages up a number of.
150 million in Seattle.
Compared to 40 cents during the same period in 2022 calculated in the weighted average number of 122 in wheelchairs.
It's like 2012.
The liberation of highlights or.
The second chord with 23 compared to the same period of 22.
During the second quarter of going to see when you open. It is 44.01 vs on average.
Indianapolis times are the equivalent of $73271.
Compared to 41 zero for reference and then right now, but I'm trying to think we've run into $25050.
During the same period.
Plan to do them.
For clothing on slide Redfin, we present, our breakevens, one or two 222 23.
Nobody economies experiencing market economy.
Hired on screen and having a big group.
Titanic financing for these jokes at the most of the jokes with interest rates being I prefer like archives.
Nauseous invasion on the Ukraine, all the way heavily on the mic about.
Based on Ah find out how to perform on the company bought the value that goes to declare five per cent dividends for for myself.
We would like to highlight and emphasize that the company is maintaining a healthy cross position of about $96.7 million.
July 21st.
And another 152.5 million in I ran up an ox here.
Facilities, and 80.7 million and I'm blown boarding capacity.
Combined liquidity and capital resources or $390 million.
Hi, Josh with significant firepower.
Furthermore, we'll have a contractor forever and you'll put on my non concert up his spot in the field and talk to his phone correct.
Total about 200.
Dollars medical conditions.
Excluding scrubbed my living room, and we also have additional aborting capacity on the relation of the seven.
Pre existing vessels and 40, you've reached a point that deliberate.
We believe that I strongly agree with you on a comfortable ever does it will enable us to be flexible with a capital.
Be able to expand our fleet.
Rewarding on Sir for this and taking a Honda or should we report you won't be loved me out eyes.
Once again, it's a reminder to Mcdonald's or with our plan to do.
Wish I said I basically they bought her our website, which was not.
Published and now we're ready for the Q&A issue.
Thank you.
You will now be conducting a question and answer session.
You would like to ask a question. Please press star one on your <unk>.
The phone keypad.
A confirmation Tamil indicate your line is my question.
You May press start to if you would like.
With your question.
Some participants using speaker equipment, it may be necessary to pick up your handset people are precedents darkies.
Once again, if you would like to ask.
Question Press Star one.
One on your telephone keypad.
One moment, please while we poll.
Thank you. Our first question comes from the line of Omar.
Please proceed with your question.
Thank you Hey, guys good afternoon.
Just have a.
Yeah, how 'bout just a couple of questions that follow up just in relation to the liquidity that you were just highlighting but just maybe first on a share buyback uhm you you've been very active for much of the past year buying back shares you put it on pause for now at least just based off of the way the press release was reading.
I guess the reasoning.
It's probably the the softer freight market. That's developed here in recent months, but just wanted to ask you know what what drove the suspension of the buyback in and what are you looking forward to give you confidence to restart it.
Yeah.
Good morning to you.
And that's you'll have seen the market that large.
Multiple men gossip with expectation.
And do we have many quarters impromptu <unk> to continue.
The buyback program, we emphasize house, so that they're just not on the violent mentally mental I'll walk 10 year old ships.
Eh combined with.
With the with the daily very low you'll be links as they come in there for a couple of quarters sweetheart Blah blah withdrawal.
New buildings forget to leave it in the next two goldfish.
So we decided to to spend it temporarily but not not so withdrawing cause I'll spend it full but <unk>.
The law, but for me I think that.
The market May stop improving Sean.
The astrological see bits of lately. So they have this program will be there in states that don't think that the stock markets reacted immediately on on more improving markets <unk> will come with it.
Revitalize this program and there's more imports online courses at this point to compete your being vital mentally investments.
You've been market the slow because.
Relations are changing very fast.
No one is doing anything on this phone call made me complete the wellness.
If you own this all during this investments.
This is very low.
Yada Yada sodden cruising their prices you have to remember about the outcome.
Ships are all good book H, It's a good book unfortunate silly, but we're all good little pet. Please <unk> involved with four people come so much now.
The spice it up the large corporate market in your performance.
<unk> 20 per cent civil current shapes.
Everyone is upset to find more than shapes.
But they cannot so they cannot go finding the Margaret show that it's every competition for ships around <unk> at the moment.
And then you ship that's coming in the month of night Capesize bulk heavier.
To upgrade.
Their prices <unk> cool.
Cool Mall Pall mall.
Okay, Yep, you'll have 20 or more bias competing for this simply because.
<unk> <unk>.
<unk> make good money and food, making good money practice and in the past few years and container ships.
<unk> <unk> <unk> <unk>.
We will have at the moment.
<unk> slow <unk> mix.
And prices will not go talk with local in a boat and the boat.
Some good prices for the best thing, we can do right now.
<unk> on the vital mental.
<unk> excuse me not really.
Terms.
Savings <unk> because.
No one six.
The price of $600.
Phone.
To come come lower actually the <unk> program has been cancelled for the time being but this is a program.
<unk> saved up and I've been given court.
Alright, thanks for them over for that that's right Yep no no they're very helpful and detailed discussion on the market and also just done on the the buyback maybe just the simple follow up and getting maybe a little deeper into the into the weeds not not too much but I just wanted to make sure. We have it correct cause you know.
You outline having plenty of liquidity I think it was 300 plus you had just highlighted and in terms of the new buildings. You have eight that are due to deliver it between the second half and then into twenty-five. The total capex is expected at 210 million, what's the amount that you have secured right now.
In terms of financing and what do you expect to finalized ahead of deliveries of the remainder that's not for now.
Yeah. The guys will give you the details, but we have we have gotcha Eighty-eighth Emilia Munger said, well, we have all <unk>, all fussy little Honda and 70 something.
So only the patch on the <unk> on the existing sleep.
Is enough to pay for that program with all that's on the remaining age groups.
So we're adding a comfort.
We don't want to increase.
<unk> <unk> <unk> <unk> <unk>.
We will put some financing this new shapes so remember.
Any.
All this especially on the Nancy how about the housework with it in Charlotte.
Situation, but the come do they come to the show called <unk> without <unk> without all the things that they are already go through finance some of <unk> very cultural double along with this phone.
I think the most important ooh ooh.
<unk> upgrade things.
Yeah, a little shapes and be more competitive because I sincerely believe that <unk> environmental pool.
Global.
Walgreens environmental <unk> other Rachel.
<unk> very soon.
People will get the big surprise real crowd first things will be changing cohorts environmentally friendly buses full pulled aside big most of the owners of pretending that.
This is not gonna happen, but I'm sure the.
<unk> <unk> <unk>.
<unk> and the <unk> the last few weeks with the <unk>.
The temperature.
<unk> <unk> <unk> <unk> <unk>. So we have 4264 70 groups temperature, which was having hot for the last I don't know how many decades.
So all these things <unk>.
<unk> <unk> <unk> <unk>.
Mmm Mmm.
<unk> the last couple of weeks so.
<unk>.
It will expedite this.
This happened Google.
And I think <unk> <unk> <unk> <unk> <unk> com hopefully.
<unk> <unk> <unk> <unk> <unk>.
You'll have the appropriate shapes in the dark market <unk> make the <unk> or your shareholders leaves a solid policy all the time.
And if I can get into sliding up at nine a maybe you can look I mean, it was a <unk> a <unk> a <unk> a check before because of the topics us Chevy still kind of insane and liquids.
P. I N, which is also a cash enter enroll in boarding and capacities about 297.
And also we need to point out that Kentucky today, but you should you should you have a 50 52 shows and we are done.
[noise] together you can see that with white would have the flexibility to have already paid 70 374 million in advance as for these specials and the question, sometimes if I may make an additional comment.
How's your little cake.
If you have copies out and we are in a good position.
Low level, it's 55 per cent and be able to locate it in their most teachers way for the future of the company, which.
He said before he said they environmental.
Adaptation, because it seems to be changed very quickly, but that didn't even have a look on page Tonight and I think all the numbers are there.
Yep. Thank you no. That's that's helpful. Great well I appreciate that <unk> nice to see that liquidity, where it's at and obviously you guys are one step ahead of the regulations I'll turn it over thank you.
Thank you.
As a reminder.
To ask a question press star one on your telephone keypad.
One moment, please while we ripple for any additional questions.
Thank you. It appears we have no further questions at this time I would now like to turn the floor back over to management for closing comments.
Well. Thank you very much for attending out confidence like we'd like to a emphasize once more when you were a relationship.
Surely you, which in the E T. A T S, which is which is coming in in Europe area, what a scam.
Also there are regulations that will be adopted gradually by a more a cause that will be you make it a worldwide.
And which will change the environment and.
And their environmental impact of the shipping industry.
We'd like to thank you all fucking indulge in school and we're looking forward to discuss again with you know next conference call that for today <unk>. Thank you very much.
Ladies and gentlemen, this does conclude today's teleconference. He may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.