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• Net income for the first quarter of 2011 decreased by 15% to $27.3 million from $32.1 million, which includes $15.2 million gain on sale of a vessel, during the same period in 2010. • EBITDA1 for the first quarter of 2011 decreased by 7% to $34.4 million from $37.1 million during the same period in 2010. • Earnings per share for the first quarter of 2011 of $0.41, calculated on a weighted average number of shares of 65,881,600, compared to $0.58 in the first quarter 2010, calculated on a weighted average number of shares of 55,435,436. • The Company’s Board of Directors declared a dividend of $0.15 per share for the first quarter of 2011. Fleet and Employment Profile The Company’s operational fleet as of May 2, 2011 was comprised of 16 drybulk vessels with an average age of 4.1 years. As of May 2, 2011, the Company has contracted to acquire 11 additional drybulk newbuild vessels with deliveries scheduled at various times through 2014. The newbuild vessels consist of four Panamax, three Kamsarmax, two Post-Panamax and two Capesize vessels. 1 EBITDA represents net income plus interest expense, tax, depreciation and amortization. See "EBITDA Reconciliation". As of May 2, 2011, the contracted employment of the Company’s fleet was 75% of fleet ownership days for the remaining days of 2011, 59% for 2012 and 52% for 2013, including vessels which are scheduled to be delivered to us in the future. Dividend Declaration The Company’s Board of Directors declared a cash dividend on the Company’s common stock of $0.15 per share payable on or about May 27, 2011 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the “NYSE”) on May 20, 2011. The Company has 70,883,284 shares of common stock issued and outstanding as of today’s date. The Board of Directors of the Company is continuing a policy of paying out a portion of the Company’s free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) our earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in our existing and future debt instruments and (v) global financial conditions. We can give no assurance that dividends will be paid in the future. Additional Offering On April 15, 2011 the Company closed an underwritten public equity offering of 5,000,000 shares of common stock, which was priced at $8.40 per share. The net proceeds from the offering after deducting the underwriting discount and estimated offering expenses were $39.6 million. In connection with this offering, the Company has also granted the underwriters an option expiring May 12, 2011 to purchase up to an additional 750,000 shares of common stock. The Company plans to use the proceeds of this offering for vessel acquisitions, capital expenditures and for other general corporate purposes, including repayment of indebtedness. Management Commentary Dr. Loukas Barmparis, President of the Company, said: “In these challenging charter market conditions we are happy to announce a 23% increase in net revenues for the first quarter of 2011 compared to the same quarter of 2010. It is the third consecutive quarter for which we have reported increased net revenues. Our Board of Directors has declared our twelfth consecutive dividend since our IPO. Our financial position is supported by our contracted revenue, low pay-out ratio and fleet expansion. We will continue to monitor market conditions and remain committed to the solid growth of our Company, through flexible asset management and consistent chartering policy, for the benefit of our shareholders.’’ Management Discussion of First Quarter 2011 Results Net income decreased by 15% to $27.3 million for the first quarter of 2011 from $32.1 million for the first quarter of 2010, mainly due to the following factors: Gain on sale of assets: No gain on sale of assets for the first quarter of 2011, as no vessel was sold by the Company, compared to $15.2 million for the same period in 2010, realized on the sale of the M/V Efrossini in January 2010. Net revenues: Net revenues increased by 23% to $42.3 million for the first quarter of 2011, compared to $34.3 million for the same period in 2010, mainly due to an increased number of operating days. The Company operated 16 vessels on average during the first quarter of 2011, earning a TCE rate of $29,322, compared to 13.1 vessels and a TCE rate of $29,415 during the same period in 2010. Vessel operating expenses: Vessel operating expenses increased by 14% to $5.7 million for the first quarter of 2011, compared to $5.0 million for the same period in 2010. The increase in operating expenses is mainly attributable to an increase in ownership days by 22% to 1,440 days for the first quarter of 2011 from 1,178 days for the same period in 2010. Daily vessel operating expenses decreased to $3,989 for the first quarter of 2011, compared to $4,232 for the same period in 2010, mainly due to decreased dry docking costs. (Loss)/Gain on derivatives: Loss on derivatives decreased to approximately zero in the first quarter of 2011, compared to a loss of $4.2 million for the same period in 2010, as a result of the mark-to-market valuation of the Company’s interest rate swap transactions that we employ to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company’s aggregate loans outstanding. The average remaining period of our swap contracts is 2.9 years as of March 31, 2011. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time. Depreciation: Depreciation increased to $5.6 million for the first quarter of 2011, compared to $3.9 million for the same period in 2010, as a result of the increase in the average number of vessels operated by the Company during the first quarter of 2011. About Safe Bulkers, Inc. The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s common stock is listed on the NYSE, where it trades under the symbol “SB”. The Company’s current fleet consists of 16 drybulk vessels, all built post-2003, and the Company has contracted to acquire 11 additional drybulk newbuild vessels to be delivered at various times through 2014. Safe Bulkers, Inc. 
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Safe Bulkers, Inc. Reports First Quarter 2011 Results