Q1 2026 Safe Bulkers Inc Earnings Call

June 18, 2026

Operator: Thank you for standing by, ladies and gentlemen, and welcome to Safe Bulkers conference call for the Q1 2026 financial results. We have with us today Mr. Polys Hajioannou, Chairman and Chief Executive Officer, Dr. Loukas Barmparis, President, and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There'll be a presentation followed by a 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 212-661-7566. I must advise you that this conference call is being recorded today.

Operator: Thank you for standing by, ladies and gentlemen, and welcome to Safe Bulkers Conference Call for the Q1 2026 Financial Results. We have with us today Mr. Polys Hajioannou, Chairman and Chief Executive Officer, Dr. Loukas Barmparis, President, and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There'll be a presentation followed by a 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 212-661-7566. I must advise you that this conference call is being recorded today.

Speaker #2: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. At that time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced.

Speaker #2: Following this conference call, if you need any further information on the conference call or on the presentation, please contact Capital Link at (212) 661-7566. I must advise you that this conference call is being recorded today.

Speaker #2: The archived webcast of the conference call will soon be made available on safebulkers website at www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations, actual results may differ materially, from results projected from those forward-looking statements.

Operator: The archived webcast of the conference call will soon be made available on Safe Bulkers website at www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from results projected from those forward-looking statements. Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the Q1 2026 earnings release, which is available on Safe Bulkers website, again, at www.safebulkers.com. I would now like to turn the conference call over to one of our speakers today, the Chairman and CEO of the company, Mr. Polys Hajioannou. Please go ahead, sir.

Speaker #2: Additional information concerning factors that can cause actual results to differ materially from those in the forward-looking statements is contained in the first quarter 2026 earnings release, which is available on Safe Bulkers' website, again at www.safebulkers.com.

Speaker #2: I would now like to turn the conference call over to one of our speakers today, the Chairman and CEO of the company, Mr. Polys Hajioannou.

Speaker #2: Please go ahead, sir. Good morning to all. I will do the talking. I'm Loukas Barmparis, President of Safe Bulkers, and I welcome you all to our quarterly results presentation.

Loukas Barmparis: Good morning to all. I will do the talking. I'm Loukas Barmparis, president of Safe Bulkers, and I'm welcoming you all to our quarterly results presentation. During Q1 2026, we operated in an improved charter market environment compared to the same period in 2025, with increased revenues due to higher charter hires and slightly increased earnings from chartered-in vessels. The dry bulk market witnessed increased market volatility, mainly due to geopolitical reasons. The increase of dividend to $0.06 per common share and the opportunity to access European investors through the parallel listing in Euronext Athens, a platform of eight stock exchanges in Europe, are the two highlights of the previous period.

Speaker #2: During the first quarter of 2026, we operated in an improved shutter market environment compared to the same period in 2025, with increased revenues due to higher shutter hires and slightly increased earnings from scrubber-fitted vessels.

Speaker #2: The dry bulk market witnessed increased market volatility mainly due to geopolitical reasons. The increase of dividend to 6 cents per common share and the opportunity to access European investors through the parallel listing in Euronext Athens a platform of eight stock exchanges in Europe are the two highlights of the previous period.

Speaker #2: In the first quarter of 2026, we increased our EPS to 18 cents, and, from, from, from an EPS of 5 cents, for the same period in, last year, while we declared a 6 cents per share per div for dividend and continuing the renewal of our fleet with four new builds and, the sale of our oldest camper vans and our oldest post Panamax vessels.

Loukas Barmparis: In Q1 2026, we increased our EPS to $0.18 from an EPS of $0.05 for the same period in last year, while we declared $0.06 per share for dividend and continued the renewal of our fleet with four newbuilds and the sale of our oldest Kamsarmax and our oldest Post-Panamax vessels. Following a comprehensive review of the forward-looking statements language presented in slide two, let us proceed to examine the supply side dynamics in slide four. The dry bulk fleet is projected to grow by about 4% in 2026 due to stable new deliveries, with fleet growth estimated to be highest for the Panamax segment. 30% of the dry bulk fleet is over 15 years. The order book now stands at about 30% of the fleet.

Speaker #2: Following a comprehensive review of the forward-looking statements language presented in slide two, let us proceed to examine the supply-side dynamics in slide four.

Speaker #2: The dry bulk fleet is projected to grow by about 4% in 2026 due to stable new deliveries with fleet growth estimated to be highest for the Panamax segment.

Speaker #2: About 30% of the dry bulk fleet is over 15 years old. The order book now stands at about 13% of the fleet. The forecast for dry bulk supply, as per BIMCO, is to grow 2% in 2026 in the open Strait of Hormuz scenario versus 1% growth in the case of closure.

Loukas Barmparis: The forecast for dry bulk supply as per BIMCO is to grow 2% in 2026 in the open Strait of Hormuz scenario versus 1% growth in case of a close. For reference, about 1% of dry bulk capacity is currently trapped in Persian Gulf. Asset prices remain elevated in line with the current freight market. Currently, about 10% of ship capacity in the dry bulk order book will be able to use alternative fuels upon delivery. However, the dual fuel order book remains small in the dry bulk segment. The postponement of the adoption of the Global Fuel Standard by IMO, as well as recent discussions may move the path on decarbonization towards more pragmatic solutions.

Speaker #2: For reference, about 1% of dry bulk capacity is currently trapped in the Persian Gulf. Asset prices remain elevated in line with the current trade market.

Speaker #2: Currently, about 10% of ship capacity in the dry bulk order book will be able to use alternative fuels upon delivery. However, the dual-fuel order book remains small in the dry bulk segment.

Speaker #2: The postponement of the adoption of the global fuel standard by the IMO, as well as recent discussions, may move the path on decarbonization towards more pragmatic solutions.

Speaker #2: In our total order book in 2024, Phase Three vessels placed since 2020, we do have two dual-fuel newbuilds on order with deliveries in Q1 2027, able to operate with fossil fuels until alternative fuels become available and economically viable.

Loukas Barmparis: In our total order book in 2024, phase III vessels placed since 2020, we do have two dual fuel newbuilds on order with deliveries in Q1 2027, able to operate with fossil fuels until alternative fuels become available and economically viable. Hedging for the increased more stringent carbon intensity limits of the fuel regulation after 2030 and the potential adoption of new regional or global regulations. Safe Bulkers fleet now counts 13 phase III vessels on the water, all delivered from 2022 onwards. In addition, 21 vessels have undergone environmental upgrades and 11 vessels are Eco, incorporating superior fuel efficiency characteristics. Approximately 80% of our fleet is Japanese-built, compared with a global average of roughly 40%, underscoring our focus on construction quality, asset durability, resale value, and fuel efficiency. We also underline the improved quality of our Chinese ships, which incorporate improvements in durability and fuel efficiency.

Speaker #2: Hedging for the increased, more stringent carbon intensity limits of the fuel regulation after 2030 and the potential adoption of new regional or global regulations.

Speaker #2: Safe Bulkers fleet now counts 13 phase three vessels on the water, all delivered from 2022 onwards. In addition, 21 vessels have undergone environmental upgrades, and the vessel and 11 vessels are ECO, incorporating superior fuel efficiency characteristics.

Speaker #2: Approximately 80% of our fleet is Japanese-built, compared with the global average of roughly 40%, underscoring our focus on construction quality, asset durability, resale value, and fuel efficiency.

Speaker #2: We also underline the improved quality of our Chinese ships, which incorporate enhancements in durability and fuel efficiency. Our average fleet age of 10.5 years is approximately two years younger than the global fleet average of 12.5 years, strengthening our competitive position in terms of operational performance and fuel consumption.

Loukas Barmparis: Our average fleet age of 10.5 years, approximately 2 years younger than the global fleet average of 12.5 years, strengthening our competitive position in terms of operational performance and fuel consumption. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of 11 Phase III vessels. By 2029, Safe Bulkers fleet is expected to comprise of 45% Phase III vessels, positioning us favorably to compete based on the fuel efficiency. While the shipbuilding capacity will continue to be constrained, leading to longer lead times. Moving on to slide five, we present an overview of the demand in basic commodities trade. The global GDP growth expectations from 2026 and 2027, as reflected in the IMF's April forecast, call for a growth around 3% in the coming years, accompanied by gradual control of inflationary pressures.

Speaker #2: Our commercial competitiveness will strengthen as we take delivery of our remaining order book of 11 Phase 3 vessels by 2029. The Safe Bulkers fleet is expected to comprise 45% Phase 3 vessels, positioning us favorably to compete based on fuel efficiency.

Speaker #2: While the shipbuilding capacity will continue to be constrained, leading to longer lead times, moving on to slide five, we present an overview of the demand and basic commodities trade.

Speaker #2: The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's April forecast, call for growth of around 3% in the coming years, accompanied by gradual control of inflationary pressures.

Speaker #2: BIMCO forecasts global dry bulk demand growth of about 3% in 2026, under the open Hormuz scenario. Cargo volumes are projected to expand by about 2% in 2026.

Loukas Barmparis: BIMCO forecasts a global dry bulk demand growth of about 3% in 2026 on the open Hormuz scenario. Cargo volumes are projected to expand about 2% in 2026. Iron ore demand expected to grow up to 3% in 2026 in open Hormuz scenario. Lower prices driven by increased exporter output effectively stimulates trade and enhanced competitiveness versus a lower grade domestic Chinese supply. However, increased Chinese port inventories may soften import demand in H2 of 2026. Coal shipments are projected to decline by 1% to 2% in 2026. The International Energy Agency expects global coal demand to fall by 1.5% between 2025 and 2027, with coal imports declining up to 4%. Chinese demand is projected to fall by 1.5%, while Indian Ocean regions remain growth pockets. Thermal coal trade is weakening. Coking coal remains relatively resilient. However, the closed Hormuz has reversed short-term.

Speaker #2: Iron ore demand expected to grow up to 3% in 2026 in open Hormuz scenario. Lower prices driven by increased exporter output effectively stimulates trade and enhance competitiveness versus a lower-grade domestic Chinese supply.

Speaker #2: However, increased Chinese port inventories may soften import demand in second half of 2026. Coal shipments are projected to decline by 1 to 2% in 2026.

Speaker #2: the international, energy agency expects global coal demand to fall by 1.5% between 2025 and 2027, with coal imports declining, up to 4%. Chinese demand is pre-projected to fall by 1.5%, while Indian and Asian regions remain growth pockets.

Speaker #2: Thermal coal trade is weakening. Coking coal remains relatively resilient. However, the closed Hormuz has reversed, in the short term, this coal trend, and Chinese imports have supported trade.

Loukas Barmparis: This coal trend and Chinese imports have supported trade. Grains remains the strongest performing major bulk, with shipments estimated to grow about 5% in 2026 in the open Hormuz scenario. Strong harvest in the US, EU, Argentina, Russia, and Brazil underpin supply. However, China policy pushed towards greater self-sufficiency and reduced soya meal usage presents a downside risk. Minor bulks growth in an open Hormuz scenario is expected to be quite strong for 2026. Energy transition related ores remain supportive, though bauxite trade growth may moderate due to China's aluminum production gap. Fertilizer demand continues to be a key factor affected by the Hormuz closing. As China remains a central demand factor for dry bulk, its broader economy, strong exports offset weaker domestic demand still being affected by property sector crisis and manufacturing overcapacity. Its GDP is forecasted to grow by 4.4% in 2026.

Speaker #2: Grains remain the strongest performing major bulk, with shipments estimated to grow about 5% in 2026 in the open Hormuz scenario. Strong harvests in the US, EU, Argentina, Russia, and Brazil underpin supply.

Speaker #2: However, China policy pushing towards greater self-sufficiency and reduced soy meal usage presents a downside risk. Minor bulks growth in an open Hormuz scenario is expected to be quite strong for 2026.

Speaker #2: Energy transition-related ores remain supportive, though book-side trade growth may moderate due to China’s aluminum production cap. Fertilizer demand continues to be a key factor affected by the Hormuz closing.

Speaker #2: As China remains a central strength factor for dry bulk, its broader economy—strong exports offsetting weak domestic demand—is still being affected by property sector crises and manufacturing overcapacity.

Speaker #2: Its GDP is forecasted to grow by 4.4% in 2026. The trade tensions between the US and China although truce has been reached and recently reaffirmed remain a key source of global economic uncertainty.

Loukas Barmparis: The trade tensions between the US and China, although truce has been reached and recently reaffirmed, remain a key source of global economic uncertainty. Domestic production policy in coal and grain import substitution strategies represent downside risks to seaborne trade. India continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.5% GDP increase in 2026. Its expanding domestic market and manufacturing sector may continue to contribute positively to the dry bulk demand, with infrastructure investments playing a vital role. Following its decisive supermajority victory in the February snap elections, the Japanese government has secured a strong political mandate to implement a more proactive fiscal strategy aimed at accelerating Japan's transition from prolonged deflation to sustainable growth. This approach includes targeted fiscal stimulus and public investments to boost demand and sustain economic momentum.

Speaker #2: Domestic production policy and coal and grain import substitution strategies represent downside risks to seaborne trade. India continues to perform and is projected to experience the fastest growth among major economies, with a forecasted 6.5% GDP increase in 2026.

Speaker #2: Each expanding domestic market and manufacturing sector may continue to contribute positively to dry bulk demand, with infrastructure investments playing a vital role. Following each decisive super-majority victory in the February snap elections, the Japanese government has secured a strong political mandate to implement a more proactive fiscal strategy aimed at accelerating Japan's transition from prolonged deflation to sustainable growth.

Speaker #2: This approach includes targeted fiscal stimulus and public investments to boost demand and sustain economic momentum. Summing up, the supply-demand equilibrium in slide six, in the open Hormuz scenario, the supply growth is expected to be 2% versus demand growth of 3% for 2026.

Loukas Barmparis: Summing up the supply-demand equilibrium in slide six, in the open Hormuz scenario, the supply growth is expected to be 2% versus demand growth of 3% for 2026. The freight market has shown strength during the first quarter of 2026 and continues to be healthy to date, with Capes spot at about $32,000 and Panamax spot at about $20,000. In relation to our Capesize class vessels, all seven were chartered under period time charters with an average remaining charter duration of 1.7 years and an average daily charter hire of about $24.6 thousand, topping $110 million in contracted revenue backlog from Capes alone. Moving to slide eight. We are proud that Safe Bulkers has become the first shipping company with common stock traded on both NYSE and Euronext Athens. Euronext platform provides access to European capital markets, including Oslo, Milan, Paris, Brussels, Amsterdam, Dublin, Lisbon, and Athens.

Speaker #2: The trade market has shown strength during the first quarter of 2026, and continues to be healthy today, with Cape sport at about $32,000 and Panamax sport at about $20,000.

Speaker #2: In relation to our Cape size class vessels, all seven were chartered under period time charters, with an average remaining charter duration of 1.7 years and an average daily charter hire of about $24,600.

Speaker #2: Topping, $110 million in contract revenue backlog from Capes alone. Moving to slide eight, we are proud that Safe Bulkers has become the first receiving company with common stock traded on both NYSE and Euronext Athens.

Speaker #2: Euronext platform provides access to European capital markets, including Oslo, Milan, Paris, Brussels, Amsterdam, Dublin, Lisbon, and Athens. By listing our common stock on the main market of the regulated securities market of Euronext Athens, we aim to broaden and diversify our shareholders' base expand the pool of institutional and retail investors to European markets, reinforce our long-term strategy positioning, and governance profile, and offer to our European investors direct access to a premium NISA-governed blue-chip maritime company.

Loukas Barmparis: By listing our common stock on the main market of the regulated securities market of Euronext Athens, we aim to broaden and diversify our shareholders' base, expand the pool of institutional and retail investors to European markets, reinforce our long-term strategy, positioning, and governance profile, and offer to our European investors direct access to a premium and NYSE-governed blue-chip maritime company. Moving to slide nine, for an overview of our quarterly highlights, we need to point out that we have declared our 18th consecutive quarterly dividend, increased it to $0.06 a share, representing a healthy 3.7% dividend yield at current share levels. At the same time, our free cash flow continues to finance our newbuild program. We maintain ample liquidity and capital resources of about $374 million and comfortable leverage of 34%.

Speaker #2: Moving to slide nine, for an overview of our quarterly highlights, we need to point out that we have declared our 18th consecutive quarterly dividend and increased it to $0.06 per share, representing a healthy 3.7% dividend yield at current share levels.

Speaker #2: At the same time, our free cash flows continue to finance our EU dividend program. We maintain ample liquidity and capital resources of about $3,374 million and comfortable leverage of 34%.

Speaker #2: We had 74, 74.4 million of net revenues and we do have an active 10 million share purchase program. Since January, we placed orders for five camps phase three new builds and one Cape size new build, and we sold our oldest post Panama and our oldest camps as well as one of our Cape size class vessels.

Loukas Barmparis: We had $74.4 million of net revenues, we do have an active $10 million share repurchase program. Since January, we placed orders for five Kamsarmax Phase 3 newbuilds and one Capesize newbuild, we sold our oldest Post-Panamax and our oldest Kamsarmax, as well as one of our Capesize class vessels. Lastly, we issued our 2025 ESG report reflecting the company's continued commitment to proactively managing environmental risks and supporting the communities in which we operate, meeting stakeholders' expectations. In slide 10, we present our returns to shareholders of $95 million paid in common dividends and $78 million paid in common shares repurchases since 2022, reflecting our consistency in generating sustainable returns across market fluctuations because of our track record, hands-on management, and our resilient business model. Concluding the company update, in slide 11, we present our fundamentals.

Speaker #2: Lastly, we issued our 2025 ESG report reflecting the company's continued commitment to proactively managing environmental risks and supporting the communities in which we operate, meeting stakeholders' expectations.

Speaker #2: In slide 10, we present our returns to shareholders of $95 million paid in common dividends and $78 million paid in common share repurchases since 2022. Leaf Lake reflects our consistency in generating sustainable returns across market fluctuations because of our track record, hands-on management, and our resilient business model.

Speaker #2: Concluding, the company update in slide 11, we present our fundamentals. Safe Bulkers is a dry bulk company with 657 million market cap, 45 vessels on the water, having 300 million strap value.

Loukas Barmparis: Safe Bulkers is a dry bulk company with $657 million market cap, 45 vessels on the water, having $300 million scrap value. We maintain significant firepower with $167 million cash, $208 million in undrawn RCFs, and $240 million borrowing capacity against our significant order book of 11 newbuilds, mainly in Japanese shipyards. We focus on our majority Japanese big fleet advantage, on fleet energy efficiency and lower CO2 taxation, reflected in our CII rating of zero vessels on the bottom rating of E category. We maintain a young, technologically advanced fleet, strong balance sheet, comfortable leverage, and low net debt per vessel of $8.1 million for a 10.5 years old model fleet.

Speaker #2: We maintain significant firepower with $167 million in cash, $208 million in undrawn RCFs, and $240 million in borrowing capacity. I guess our significant order book of 11 new builds, mainly in Japanese shipyards.

Speaker #2: We focus on our majority Japanese-built fleet advantage, on fleet energy efficiency, and lower CO2 taxation, reflected in our CII rating of zero vessels in the lowest E category.

Speaker #2: We maintain a young technologically advanced fleet, strong balance sheet, comfortable leverage, and low net debt per vessel of 8.1 million for a 10.5 years old modern fleet.

Speaker #2: We have built a resilient business model with cash flow visibility of $161 million in revenue backlog, health expansion for a sizable fleet that achieves scale, and a healthy 3.7% annualized dividend yield positioned to leverage on its fuel efficiency.

Loukas Barmparis: We have built a resilient business model with cash flow visibility of $161 million in revenue backlog, healthy expansion for a sizable fleet that achieves scale, and a healthy 3.7% annualized dividend yield positioned to leverage on its fuel efficiency. I now pass the floor to our CFO, Konstantinos Adamopoulos, for our quarterly financial overview. Konstantinos, the floor is yours.

Speaker #2: I now pass the floor to our CFO, President Adamopoulos, for our quarterly financial overview. Konstantinos, the floor is yours. Thank you, Loukas, and good morning to everyone.

Konstantinos Adamopoulos: Thank you, Loukas. Good morning to everyone. During Q1 2026, we operated in an improved charter market environment compared to the same period in 2025, with increased revenues due to higher charter hires and slightly increased earnings from scrubber-fitted vessels. Moving on to slide 13 with our quarterly financial highlights for Q1 2026 and compared to the same period of 2025. Our adjusted EBITDA for Q1 2026 stood at $40.7 million compared to $29.4 million for the same period in 2025. Our adjusted EPS for Q1 2026 was $0.18, calculated on a weighted average number of 100.2 million shares, compared to $0.05 during the same period in 2025, calculated on a weighted average number of 105.1 million shares.

Speaker #2: During the first quarter of 2026, we operated in an improved charter market environment compared to the same period in 2025, with increased revenues due to higher charter hires and slightly increased earnings from scrubber-fitted vessels.

Speaker #2: Moving on to slide 13, with our quarterly financial highlights for the first quarter of 2026 and compared to the same period of 2025. Our adjusted EBITDA for the first quarter of 2026, 2.40.7 million, compared to 29.4 million for the same period in 2025.

Speaker #2: Our adjusted EPS for the first quarter of 2026 was $0.18, calculated on a weighted average number of 100.2 million shares, compared to $0.05 during the same period in 2025, calculated on a weighted average number of 105.1 million shares.

Speaker #2: On the top graph, during the first quarter of 2026, we operated 45 vessels on average, earning an average TCE of 17,095. Compared to the operation of 46 vessels, earning an average TCE of 14,655 during the same period last year.

Konstantinos Adamopoulos: On the top graph, during Q1 2026, we operated 45 vessels on average, earning an average TCE of $17,095 compared to the operation of 46 vessels earning an average TCE of $14,655 during the same period last year. Our daily vessel OpEx decreased by 9% to $5,223 for Q1 2026 compared to $5,765. Daily vessel operating expenses excluding dry docking and predelivery expenses also decreased by 7% to $5,147 for Q1 2026 compared to $5,546 for the same period in 2025. Moving in slide 14 with a quick overview of our quarterly operational highlights for Q1 2026 compared to the same period of 2025. Let's continue to slide 15, where we present our balance sheet analysis, noting that assets are presented in their book value.

Speaker #2: Our daily vessel OPEX decreased by 9% to $5,223 for the first quarter of 2026, compared to $5,765. Daily vessel operating expenses, excluding dry-docking and pre-delivery expenses, also decreased by 7% to $5,147 for the first quarter of 2026, compared to $5,546 for the same period in 2025.

Speaker #2: Moving in slide 14, with quick overview of our quarterly operational highlights for the first quarter of 2026, compared to the same period of 2025.

Speaker #2: Now let's continue to slide 15, where we present our balance sheet analysis, noting that assets are presented in their book value. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility.

Konstantinos Adamopoulos: Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility. The company maintains a healthy balance sheet supported by a robust equity base and conservative leverage levels. Our capital structure positions the company for sustainable long-term growth and resilience. Let's now focus on our liquidity, our cash flows, and our capital structure as they are presented in slide 16. We maintain a comfortable leverage of 34%. Our debt remains comparable to our fleet's scrap value, although our fleet is just 10.5 years old on average. Our weighted average interest rate stood at 5.15% for our consolidated debt, with a portion of €100 million being fixed at 2.95% coupon in an unsecured five-year bond. We have paid a considerable part of our CapEx in relation to our outstanding order book.

Speaker #2: The company maintains a healthy balance sheet, supported by a robust equity base and conservative leverage levels. Our capital structure positions the company for sustainable, long-term growth and resilience.

Speaker #2: Let's now focus on our liquidity, our cash flows, and our capital structure as they are presented in slide 16. We maintain a comfortable leverage of 34%.

Speaker #2: Our debt remains comparable to our fleet's scrap value, although our fleet is just 10.5 years old on average. Our weighted average interest rate stood at 5.15% for our consolidated debt, with a portion of €100 million being fixed at a 2.95% coupon in an unsecured five-year bond.

Speaker #2: We have paid a considerable part of our CAPEX in relation to our outstanding order book. Our liquidity and capital resources stand strong at approximately $374 million, which, together with the contracted revenue of about $164 million, gives a total of $538 million. This is more than double our outstanding CAPEX.

Konstantinos Adamopoulos: Our liquidity and capital resources stand strong at approximately $374 million, which together with the contracted revenue of about $164 million, gives a total of $5,038 million. This is more than double our outstanding CapEx. This provides flexibility to our management in capital allocation. Furthermore, we have additional borrowing capacity in relation to one existing unencumbered vessel and 10 new builds upon their delivery. We ensure that our capital expenditure is adequately covered by our contracted future revenues, fortifying our balance sheet towards a trajectory of sustainable growth. Concluding our presentation in slide 17, we present our daily free cash flow for the first three months of 2026, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and efficient vessel operations.

Speaker #2: This provides flexibility to our management in capital allocation. Furthermore, we have additional borrowing capacity in relation to one existing unencumbered vessel, and 10 new builds upon their delivery.

Speaker #2: We ensure that our capital expenditure is adequately covered by our contracted future revenues, fortifying our balance sheet toward a trajectory of sustainable growth. Concluding our presentation in slide 17, we present our daily free cash flow for the first three months of 2026, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and efficient vessel operations.

Speaker #2: We would like to highlight that based on our financial performance, the company's board of directors declared an increased 6 cent dividend per common share.

Konstantinos Adamopoulos: We would like to highlight that based on our financial performance, the company's board of directors declared an increased $0.06 dividend per common share. The company is maintaining a healthy cash position of about $167 million as of 12 June, and another $208 million in revolving credit facilities, a combined liquidity and capital resources of $375 million, and a contracted revenue of $161 million. This underscores our capacity to support debt service, reinvestment, and shareholder returns at the same time, which enable us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders. Thank you for your attention, we are now ready for the Q&A session.

Speaker #2: The company is maintaining a healthy cash position of about $167 million as of June 12th, and another $208 million in revolving credit facilities, for a combined liquidity and capital resources of $375 million.

Speaker #2: And a contracted revenue of 161 million dollars. This underscores our capacity to support debt service reinvestment and shareholder returns at the same time, which enables us to expand the fleet, build a resilient company, and create long-term prosperity for our shareholders.

Speaker #2: Thank you for your attention, and we're now ready for the Q&A session. Thank you. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Elias Papachizo with Piraeus Securities. Please proceed.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from [Elias Papachizo] with Piraeus Securities. Please proceed.

Speaker #2: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your questions from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #2: Our first question is from Elias Papakidzo with Piraeus Securities. Please proceed. Hi, thank you. Hi everyone, and congrats on a great quarter. I wanted to ask you about your fixed charter coverage.

Elias Papachizo: Hi. Thank you. Hi, everyone, congrats on a great quarter. I wanted to ask you about your fixed charter coverage. Are you close to where you would like to be for the remainder of 2026, or should we expect any further increases or changes in charter coverage?

[Analyst] (Piraeus Securities): Hi. Thank you. Hi, everyone, congrats on a great quarter. I wanted to ask you about your fixed charter coverage. Are you close to where you would like to be for the remainder of 2026, or should we expect any further increases or changes in charter coverage?

Speaker #2: Are you close to where you would like to be for the remainder of 2026, or should we expect any further increases or changes in charter coverage?

Speaker #2: Yes, look, the chartering of the vessels is done in a way that accommodates market conditions. So we have been experiencing a very strong quarter as we talk in the second quarter.

Konstantinos Adamopoulos: Yes. Look, the chartering of the vessels is done in a way that accommodates market conditions. We have been experiencing a very strong quarter as we talk in the Q2. The number of spot vessels have been increasing to take advantage of the current squeeze. In future quarters, especially towards the last quarter of 2026, the company will be looking to lock in on longer-term contracts. Usually, on our type of vessels, those are around 12 months on the Kamsarmaxes and around 24 or 36 months on the Capesizes. For the time being, we try to enjoy the positive spot market.

Polys Hajioannou: Yes. Look, the chartering of the vessels is done in a way that accommodates market conditions. We have been experiencing a very strong quarter as we talk in the Q2. The number of spot vessels have been increasing to take advantage of the current squeeze. In future quarters, especially towards the last quarter of 2026, the company will be looking to lock in on longer-term contracts. Usually, on our type of vessels, those are around 12 months on the Kamsarmaxes and around 24 or 36 months on the Capesizes. For the time being, we try to enjoy the positive spot market.

Speaker #2: The number of spot vessels has been increasing, to take advantage of the current squeeze. In future quarters, especially towards the last quarter of 2026, the company will be looking to lock in on longer-term contracts.

Speaker #2: Usually, on our type of vessels, those are around 12 months on the comsum axis, and around 24 or 36 months on the cave sizes.

Speaker #2: So for the time being, we try to enjoy the positive spot market. Absolutely. My next question is about the LNG facility disruptions in Qatar.

Elias Papachizo: Absolutely. My next question is about the LNG facility disruptions in Qatar. Back in March, Iranian attacks knocked out 17% of Qatar's LNG export capacity for over two years. As a result, we would expect to see some solid support to steam coal trade in both 2026 and 2027. Is this fair to assume?

[Analyst] (Piraeus Securities): Absolutely. My next question is about the LNG facility disruptions in Qatar. Back in March, Iranian attacks knocked out 17% of Qatar's LNG export capacity for over two years. As a result, we would expect to see some solid support to steam coal trade in both 2026 and 2027. Is this fair to assume?

Speaker #2: Back in March, Iranian attacks knocked out 17% of Qatar's LNG export capacity for over two years. As a result, we would expect to see some solid support to steam coal trade in both 2026 and 2027.

Speaker #2: Is this fair to assume? Yeah, I think it's fair to assume. We already see it, especially from Australia and Indonesia. The amount of cargo we have seen in the last two to three months has been substantial.

Konstantinos Adamopoulos: Yeah, I think it's fair to assume. We already see it, especially from Australia and Indonesia. The amount of cargo we have seen in the last two to three months has been substantial, and this is helping the market in the Pacific reach to levels on the BPI average of around $20,000 to $22,000 a day. Of course, there will be volatility on those numbers, but there is a lot of coal cargo in the Far East for the reason you mentioned. Now, if this Strait of Hormuz opens after a few weeks or a couple of months, things get normalized, still we expect that LNG will start coming out, but in a smaller quantity than the one before the war started. Some of that capacity will be lost for a number of quarters or for a couple of years.

Polys Hajioannou: Yeah, I think it's fair to assume. We already see it, especially from Australia and Indonesia. The amount of cargo we have seen in the last two to three months has been substantial, and this is helping the market in the Pacific reach to levels on the BPI average of around $20,000 to $22,000 a day. Of course, there will be volatility on those numbers, but there is a lot of coal cargo in the Far East for the reason you mentioned. Now, if this Strait of Hormuz opens after a few weeks or a couple of months, things get normalized, still we expect that LNG will start coming out, but in a smaller quantity than the one before the war started. Some of that capacity will be lost for a number of quarters or for a couple of years.

Speaker #2: And this is helping the market in the Pacific reach to levels on the BKI average of around $20,000 to $22,000 a day.

Speaker #2: Of course, there will be volatility, on those numbers, but there is a lot of cargo of coal cargo in the Far East for the reason you mentioned.

Speaker #2: Now, if this state of almost opens after a few weeks or a couple of months, things get normalized. Still, we expect that LNG will start coming out, but in a smaller quantity than the one before the war started.

Speaker #2: So some of that capacity will be lost for a number of quarters or for a couple of years. So we expect that coal will be in demand in the subsequent couple of years.

Konstantinos Adamopoulos: We expect that coal will be in demand in the subsequent couple of years.

Polys Hajioannou: We expect that coal will be in demand in the subsequent couple of years.

Speaker #2: Great. And one last question. We if everything goes as planned, I mean, we should see substantial benefit from reconstruction activity in Iran. It's probably too early to tell, but if you could make a comment about it, it would be real helpful.

Elias Papachizo: Great. One last question. If everything goes as planned, we should see substantial benefit from reconstruction activity in Iran. It's probably too early to tell, but if you could make a comment about it would be real helpful.

[Analyst] (Piraeus Securities): Great. One last question. If everything goes as planned, we should see substantial benefit from reconstruction activity in Iran. It's probably too early to tell, but if you could make a comment about it would be real helpful.

Speaker #2: Yes, I think this will be particularly positive for handy size and Supramax vessels, Ultramax vessels. It's not so much affecting the Kamsarmax or Panamax vessels, but of course, when you see Supramax levels at healthy levels, Supramax and Ultramax is one type of cargo that is sitting as part of the cargoes of Kamsarmaxes when the market is not good.

Polys Hajioannou: Yes, I think this will be particularly positive for Handysize and Ultramax vessels. It's not so much affecting the Kamsarmax or Panamax vessels, of course, when you see Supramax levels at healthy level, Supramax and Ultramax is type 1 of cargo that is hitting part of the cargoes of Kamsarmaxes when the market is not good. When they have their own extra demand, this will be keeping them busy on that front. Also, we expect a rush of a lot of fertilizer cargoes out of the Persian Gulf that they have been stuck there for the last three or four months. This will help also the Kamsarmax market as well as the Ultramax market. If we see the smaller ships improving and getting more cargo, this can only be good also for the Kamsarmax market.

Speaker #2: So, when they have their own extra demand, this will be keeping them busy on that front. Also, we expect a release of a lot of fertilizer cargoes out of the Persian Gulf, as they have been stuck there for the last three or four months.

Speaker #2: This will help also the Kamsarmax market, as well as the Ultramax market. So if we see the smaller ships improving and getting more cargo, this can only be good also for the Kamsarmax market.

Speaker #2: If you see right now, they are all earning about the same, around $20,000 a day comfortably on the spot market. Maybe the modern Ultramax are earning around $25,000 a day.

Polys Hajioannou: If you see right now, they are all earning about the same, around $20,000 a day comfortably on the spot market. Maybe the modern Ultramax are earning around $25,000 a day, and the modern Handys are earning around $18,000 a day. These are very healthy levels, and we expect that any sort of reconstruction in Iran will boost that trade. Of course, it remains to be seen the details of the agreement reached between United States and Iran, how much of the sanctions will be removed, and how much of foreign flag vessels will be allowed to get involved in this trade with Iran. I think that maybe this would be part of the agreement that has been reached, but we don't know the exact details of it.

Speaker #2: And the modern Handy is earning around $18,000 a day. So these are very healthy levels, and we expect that any sort of reconstruction in Iran will boost that trade.

Speaker #2: Of course, it remains to be seen the details of the agreement reached between the United States and Iran, how much of the sanctions will be removed, and how much foreign-flag vessels will be allowed to get involved in this trade with Iran.

Speaker #2: But I think that maybe this would be part of the agreement that has been reached, but we don't know the exact details of it.

Speaker #2: Right, thanks a lot. Thank you. As a reminder, press the star one (*) on your telephone keypad if you would like to ask a question. We will pause for a brief moment to see if there are any final questions.

Elias Papachizo: Right. Thanks a lot.

[Analyst] (Piraeus Securities): Right. Thanks a lot.

Polys Hajioannou: Thank you.

Operator: As a reminder, just star one on your telephone keypad if you would like to ask a question. We will pause for a brief moment to see if there's any final questions. There are no further questions at this time. I would like to hand the conference back over for closing remarks.

Speaker #2: There are no further questions at this time. I would like to hand the conference back over for closing remarks. Thank you very much for attending our presentation for the first quarter 2026 results.

Polys Hajioannou: Thank you very much for attending our presentation for the Q1 2026 results. We're looking forward to discussing again with you the next quarter. Have a nice day. Bye.

Loukas Barmparis: Thank you very much for attending our presentation for the Q1 2026 results. We're looking forward to discussing again with you the next quarter. Have a nice day. Bye.

Speaker #2: And we're looking forward to discussing again with you next quarter. Have a nice day. Bye. Thank you. This will conclude today's conference. You may disconnect at this time.

Operator: Thank you. This will conclude today's conference. You may disconnect at this time. Thank you for your participation.

Q1 2026 Safe Bulkers Inc Earnings Call

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