Safe Bulkers, Inc. Updates Fleet and Employment Profile
Athens, Greece – June 8, 2009 -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an
international provider of marine drybulk transportation services, today announced
updates to its fleet and employment profile.
Fleet and Employment Update
The Company announced today that it has cancelled one of its two Capesize class
newbuilds and has substituted it with another newbuild to be delivered in April 2010.
The Company has also delayed the delivery of its second Capesize class newbuild until
September 2011. The Company anticipates that the net effect of these three transactions
will be the reduction of capital expenditure requirements, excluding commissions to
brokers, of approximately $12 million.
The cancelled newbuild vessel and the delayed newbuild vessel were subject to period
time charter agreements. In the case of the cancelled newbuild vessel, the relevant
charterer has agreed in principle to vessel substitution subject to final documentation. In
the case of the postponed newbuild vessel, the relevant charterer has agreed to postponed
delivery during 2012 with a decrease in the gross daily charter rate from $40,000 to
$38,000.
In addition, the Company announced that it has agreed to accept delayed delivery of one
Post-Panamax class newbuild from 2010 to a later date between June and August, 2011,
subject to final documentation. There is no charter party agreement associated with this
newbuild.
The Company has also announced that it has entered into: (i) a period time charter with a
duration of 23 to 27 months for a Panamax class vessel with a delivery date in June or
July of 2009, at a gross daily charter rate of $15,500, less 4.75% in total commissions; (ii)
a period time charter with a duration of 14 to 17 months for a Panamax class vessel with
a delivery date in June or July of 2009, at a gross daily charter rate of $18,000, less
3.75% in total commissions and (iii) a period time charter for a Kamsarmax class vessel
with a delivery date in June or July of 2009, with a duration, at charterer’s option, of
either 23 to 27 months at a gross daily charter rate of $18,500 less 4.75% in total
commissions, or of 13 to 17 months at a gross daily charter rate of $21,000 less 4.75% in
total commissions.
Management Commentary
Polys Hajioannou, Chairman of the Board of Directors and Chief Executive Officer of the
Company said: “We continue to closely manage our business through the current
recession, reducing our capital expenditure requirements, maintaining our relationships
with our customers and increasing our coverage.”
About Safe Bulkers, Inc.
The Company’s subsidiaries provide 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 such services. The Company’s common stock is
listed on the NYSE where it trades under the symbol “SB” The Company’s subsidiaries
currently own 13 Japanese-built drybulk vessels, all built post 2003, and have contracted
to acquire additional drybulk newbuild vessels to be delivered at various times through
2011.
Safe Bulkers, Inc.
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