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• Net income for the second quarter of 2012 increased by 13% to $21.5 million from $19.1 million during the same period in 2011. Adjusted net income1 for the second quarter of 2012 decreased by 7% to $23.7 million from $25.5 million, during the same period in 2011. • EBITDA2 for the second quarter of 2012 increased by 24% to $31.6 million from $25.5 million during the same period in 2011. Adjusted EBITDA1 for the second quarter of 2012 increased by 6% to $33.7 million from $31.9 million during the same period in 2011. • Earnings per share (“EPS”) and Adjusted EPS1 for the second quarter of 2012 was $0.28 and $0.31 respectively, calculated on a weighted average number of shares of 76,653,848, compared to $0.27 and $0.36, respectively, for the same period in 2011, calculated on a weighted average number of shares of 70,116,022. • The Company’s Board of Directors declared a dividend of $0.15 per share for the second quarter of 2012. 1 Adjusted net income, Adjusted EPS and Adjusted EBITDA represent Net Income, EPS and EBITDA before gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency respectively. 2 EBITDA represents net income plus interest expense, tax, depreciation and amortization. Summary of Six Months Ended June 30, 2012 Results • Net revenue for the first six months of 2012 increased by 9.1% to $91.1 million from $83.5 million during the same period in 2011. • Net income for the first six months of 2012 decreased by 6.9% to $43.2 million from $46.4 million during the same period in 2011. Adjusted net income for the first six months of 2012 decreased by 12% to $46.5 million from $52.9 million during the same period in 2011. • EBITDA for the first six months of 2012 increased by 4% to $62.3 million from $59.9 million during the same period in 2011. Adjusted EBITDA for the first six months of 2012 decreased by 1% to $65.6 million from $66.4 million during the same period in 2011. • EPS and Adjusted EPS for the first six months of 2012 was $0.58 and 0.63, respectively, calculated on a weighted average number of shares of 74,261,399, compared to $0.68 and $0.78 for the same period in 2011, calculated on a weighted average number of shares of 68,010,508. Capital Expenditure Requirements and Liquidity as of July 31, 2012 As of July 31, 2012, the remaining capital expenditure requirements for amounts due to shipyards or sellers of newbuilds, net of commissions, for the delivery of the Company’s eight newbuilds amounted to $186.6 million, of which $48.2 million was scheduled to be paid in 2012, $59.6 million in 2013 and $78.8 million in 2014. As of July 31, 2012, the Company had $11.3 million in cash and short-term time deposits, $5.4 million in long-term restricted cash, and estimated aggregate borrowing capacity of $224.1 million, consisting of $72.0 million in undrawn or committed loan facilities, $112.1 million available under existing revolving credit facilities and $40.0 million undrawn availability against the Company’s $50.0 million floating rate note. Additionally, the Company utilizes cash flow from operations generated by its contracted period time charters and has the option to borrow additional amounts secured by one or more of its seven debt-free newbuilds, upon their delivery to us. 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 August 31, 2012 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the “NYSE”) on August 24, 2012. The Company has 76,656,279 shares of common stock issued and outstanding as of August 6, 2012. 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) the Company’s earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company’s growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company’s existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or not be paid in the future. Management Commentary Dr. Loukas Barmparis, President of the Company, said: "Charter market conditions are challenging, while bank financing is generally scarce. Our revenues in the current depressed charter market have been supported by agreements entered into during earlier periods. In this environment, asset prices have dropped significantly offering acquisition opportunities attractive for companies like ours which have managed to avoid financial distress and comply with their debt covenants. Our management team cautiously monitors market conditions. We believe that having a young and modern fleet, which is expected to reach 29 vessels by 2014, will leave us well-positioned for the next shipping cycle.'' Management Discussion of Second Quarter 2012 Results Net income increased by 13% to $21.5 million for the second quarter of 2012 from $19.1 million for the second quarter of 2011, mainly due to the following factors: Net revenues: Net revenues increased by 14% to $47.0 million for the second quarter of 2012, compared to $41.2 million for the same period in 2011, mainly due to an increased number of operating days. The Company owned 20.35 vessels on average during the second quarter of 2012, earning a TCE4 rate of $24,168, compared to 16 vessels and a TCE rate of $27,921 during the same period in 2011. Vessel operating expenses: Vessel operating expenses increased by 29% to $8.4 million for the second quarter of 2012, compared to $6.5 million for the same period in 2011. The increase in operating expenses is mainly attributable to an increase in ownership days by 27.2% to 1,852 days for the second quarter of 2012 from 1,456 days for the same period in 2011. Daily vessel operating expenses increased by 1% to $4,526 for the second quarter of 2012, compared to $4,479 for the same period in 2011. Depreciation: Depreciation increased to $7.9 million for the second quarter of 2012, compared to $5.6 million for the same period in 2011, as a result of the increase in the average number of vessels owned by the Company during the second quarter of 2012. Voyage expenses: Voyage expenses increased to $2.3 million for the second quarter of 2012, compared to $0.8 million for the same period in 2011, as a result of increased vessel repositioning expenses. Interest expense: Interest expense increased by 133% to $2.1 million in the second quarter of 2012 from $0.9 million for the same period in 2011, mainly due to a higher weighted average loan balance and a higher weighted average interest rate. 4 Time charter equivalent rates, or TCE rates, represent the Company’s charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period. Loss on derivatives: Loss on derivatives decreased to $2.1 million in the second quarter of 2012, compared to a loss of $6.1 million for the same period in 2011, as a result of changes in the mark-to-market valuations of the Company’s interest rate swap transactions that the Company’s employs to manage the risk and interest rate exposure of the Company’s loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company’s aggregate loans outstanding. The average remaining period of the Company’s swap contracts is 2.3 years as of June 30, 2012. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time. 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 21 drybulk vessels, all built post-2003, and the Company has contracted to acquire eight additional drybulk newbuild vessels to be delivered at various times through 2014. Safe Bulkers, Inc. press release 
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Safe Bulkers, Inc. Reports Second Quarter and First Half 2012 Results and Declares Quarterly Dividend