Safe Bulkers Slips to Q2 Loss

Maritime Activity Reports, Inc.

September 3, 2019

Pic courtesy: Safe Bulkers

Pic courtesy: Safe Bulkers

Monaco-headquartered provider of marine drybulk transportation services Safe Bulkers reported a net loss for the second quarter, contrary to the market’s expectations for profit.

The net revenue at USD 45.5 million for Q2 was hurt by a 3% decline from the second quarter of 2018. For the second quarter, Safe Bulkers reported an adjusted loss of $0.01 per share, compared to earnings of $0.02 per share in the same period of last year.

Dr. Loukas Barmparis, President of the Company, said: “In the first half of 2019 the charter market was weak. Since then the Baltic exchange Dry Index has risen to an average of 1,904 for the 3rd quarter to date and as a consequence we are now entering into charters at much higher rates. We are on track with our environmental investments and about 25% of our planned scrubber installations were commissioned.”

On average, the company operated 41 vessels during the June-quarter, compared to 39.19 vessels last year.

The time charter equivalent rate, which represents charter revenues net of commissions and voyage expenses divided by the number of days, dropped to $11,970 in the second quarter from $13,225 in the same period of 2018.

The company informed that its vessels  MV Pedhoulas Farmer and MV Pedhoulas Rose were sold and leased back, in 2015 and 2017, respectively, on a net daily bareboat charter rate of $6,500 for a period of 10 years, with a purchase obligation at the end of the 10th year and purchase options in favour of the company after the second year of the bareboat charter, at annual intervals and predetermined purchase price.

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