Safe Bulkers, Inc. Reports Second Quarter and First Half 2009 Results

Athens, Greece – September 08, 2009 -- Safe Bulkers, Inc. (the “Company”) (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three and six months periods ended June 30, 2009.

Summary of Second Quarter 2009 Results

• Net revenue for the second quarter of 2009 decreased by 14% to $44.3 million from $51.4 million during the same period in 2008. The Company operated 13 vessels on average during the second quarter of 2009, earning a Time Charter Equivalent (“TCE”)1 rate of $37,555, compared to 11 vessels and a TCE rate of $52,069 during the second quarter of 2008. The decrease in the TCE rate resulted mainly from lower average period time charter rates contracted in previous periods, and to a lesser extent from the lower prevailing spot market charter rates.

• Net income was $58.1 million, or earnings per share of $1.07, in the second quarter of 2009, an increase of 31% from net income of $44.5 million, or earnings per share of $0.82, in the second quarter of 2008. The increase in net income of $13.6 million reflects: (i) early redelivery income of $42.4 million, compared to an early redelivery cost of $0.2 million, (ii) loss on asset cancellations, related to our cancellation of certain newbuilds, of $20.7 million compared to none, and (iii) net revenue of $44.3 million compared to $51.4 million, for the relevant quarters in 2009 and 2008, respectively.

• EBITDA2 of $64.3 million for the second quarter of 2009, an increase of 26% from $51.1 million in the second quarter of 2008, mainly due to higher net income as described above.

• Declaration and payment of a dividend of $0.15 per share for the second quarter of 2009.
1 Refer to definition of “TCE” in Note 6 of Fleet Data Table.
2 EBITDA represents net income plus interest expense, tax, depreciation and amortization. See "EBITDA Reconciliation".

Summary of First Half 2009 Results

• Net revenue for the first half of 2009 decreased by 10% to $91.1 million from $100.7 million during the same period in 2008. The Company operated 12.77 vessels on average during the first half of 2009, earning a TCE rate of $39,479, compared to 11 vessels and a TCE rate of $50,889 during the first half of 2008.

• Net income was $120.1 million or earnings per share of $2.20 in the first half of 2009, an increase of 76% from net income of $68.1 million or earnings per share of $1.25, in the first half of 2008. The increase in net income of $52.0 million reflects: (i) early redelivery income of $72.1 million, compared to early redelivery cost of $0.6 million, (ii) loss on asset cancellations of $20.7 million, compared to none, (iii) foreign exchange gain of $1.0 million, compared to a foreign exchange loss of $9.9 million and (iv) net revenue of $91.1 million compared to $100.7 million, for the corresponding periods of 2009 and 2008, respectively.

• EBITDA of $132.7 million for the first half of 2009, an increase of 64% from $81.0 million in the first half of 2008, mainly due to higher net income as described above. Fleet and Employment Profile

• The Company’s operational fleet is comprised of 13 drybulk vessels with an average age of 3.56 years as of June 30, 2009.

• As of August 31, 2009, the contracted employment of the Company’s fleet under period time charters is as follows: 85% of fleet ownership days for the remaining days of 2009, 80% for 2010 and 60% for 2011. This includes vessels which will be delivered to us in the future.

• During the second quarter of 2009 our subsidiaries:
i) cancelled the MOAs for two newbuild Kamsarmax class vessels and entered into an agreement to cancel the shipbuilding contract for one newbuild Capesize class vessel, (aggregate cancellation cost amounted to $20.7 million and was recorded as loss on asset cancellations in the second quarter 2009);
ii) entered into agreements to delay the deliveries of one Capesize class newbuild vessel from 2010 to September 2011 and one Post-Panamax class newbuild from 2010 to June-August 2011,
iii) entered into MOAs to acquire a 177,000 dwt Capesize class newbuild vessel with delivery in April 2010 at a price of $63 million and to sell its oldest vessel, MV Efrossini, a 76,000 dwt 2003-built Panamax class vessel, for $33 million with delivery in December 2009

• There were no associated charter party agreements for the two cancelled Kamsarmax vessels, while MV Efrossini is operated in the spot market. In the case of the cancelled Capesize vessel, the relevant charterer has agreed to accept delivery of the 177,000 dwt Capesize class newbuild vessel in substitution. In the case of the postponed Capesize class 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.

• Our subsidiary Maxdodeka Shipping Corporation has taken delivery today of the newbuild vessel Andreas K, a 92,000 dwt Post-Panamax class vessel to be initially operated in the spot market. The vessel’s purchase price was financed from surplus from operations. This expands our current operational fleet to 14 drybulk vessels.

• Following negotiations with the relevant counterparties under existing MOAs, our subsidiaries Maxdodeka Shipping Corporation and Maxdekatria Shipping Corporation have entered into addenda to such MOAs which reduce the purchase price for the relevant vessels by $2.5 million and $1.5 million, respectively.

Management Commentary
Polys Hajioannou, Chairman of the Board of Directors and Chief Executive Officer of the Company said: “We are actively managing our day-to-day operations, intensifying our focus on operating a young, high-quality fleet and seeking to take advantage of current market conditions with respect to vessel sales and newbuild acquisitions. We believe that our high charter coverage positions us well for turbulent times ahead in the marketplace. At the same time, we have maintained our dividend of $0.15 per share for the second quarter of 2009, consistent with our policy to pay out a portion of our free cash flows.”

Safe Bulkers, Inc.