Rising fares have brought Safe Bulkers back to profit

Safe Bulkers, a shipping company with bulk cargo vessels, went into profitability in the first quarter of 2021, as a result of the improved conditions in the freight market and the large increase in fares during the current year compared to the first quarter of 2020.

The revenue of Poly Hatziioannou’s company in the first quarter of 2021 amounted to $ 62.5 million against $ 45.7 million in the corresponding period of 2020 while profits reached $ 21.3 million against losses $9.9 million registered in the first quarter of 2020. Adjusted EBITDA amounted to $34.6 million compared to $9.4 million a year earlier.

According to the president of NYSE listed company Safe Bulkers, Mr. Loukas Barbaris, during the first quarter of this year, the company increased its profitability and strengthened its balance sheet, while continuing the process of renewing its fleet by selling older ships. and the acquisition of other newer ones.

Safe Bulkers, which like all shipping companies has problems managing crews since the outbreak of the Covid 19 pandemic, launched the Panamax “Paraskevi 2” in the first quarter of 2021 (year of construction 2011) for $ 14.1 million which was chartered for 11-14 months with a daily fare of $ 13,800.

It also sold the Panamax “Paraskevi” built in 2003 for $ 7.3 million (excluding commissions), and the Panamax “Vassos” (built in 2003) for $ 8.7 million excluding commissions.

It should be noted that Safe Bulkers has an ongoing shipbuilding program of two ships one kamsarmax class, 82,000 dwt and one Post-Panamax class, 87,000 dwt, which are expected to be received in the first half of 2022. The ships are designed to meet the requirements of the Energy Efficiency Design Index, Phase 3 of the International Maritime Organization (IMO).

The company has secured by charter the employment of its fleet for the remaining 53% of its operating days, for the current year. It controls a fleet of 43 dry bulk carriers.