Safe Bulkers' Q2 2025 Earnings Call: Unpacking Contradictions in Dividends, Asset Prices, and Capital Structure

Dividend and share repurchase strategy, asset prices and market conditions, capital structure and debt management are the key contradictions discussed in Safe Bulkers' latest 2025Q2 earnings call.



Weaker Market Conditions and Financial Performance:
- Safe Bulkers experienced a softer market during the second quarter of 2025, impacting revenues and profitability.
- Decreased revenues were due to lower charter hires, reduced earnings from scrubber-fitted vessels, and increased operating expenses.

Fleet Renewal and Asset Management:
- The company took delivery of its 12th newbuild and sold one of its oldest vessels, aligning with its fleet renewal strategy.
- The selling price of the Pedhoulas Leader at $12.5 million indicated a 10% turnaround of asset values and a shift in sentiment within the drybulk community.

Dividend Payout and Shareholder Distribution:
- Safe Bulkers declared a dividend of $0.05 per share, rewarding shareholders and maintaining a consistent payout strategy.
- The company has paid $78.7 million in common dividends and $74.9 million in common shares repurchases since 2022.

Compliance with Regulatory Standards and Sustainability Initiatives:
- Safe Bulkers aims to be commercially competitive by having 6 more Phase 3 vessels on order, with two being dual-fuel methanol.
- The company focuses on maintaining a young and technologically advanced fleet with an average age of 10.3 years, and achieving a low CII rating of 0 vessels on the bottom rating of D and E for 2024.