Safe Bulkers' Q1 2025 Earnings Call: Key Contradictions in Share Repurchase and Cape Market Strategies

Share repurchase strategy, Cape market strategy, position on the dry bulk market, Cape fleet strategy, and share repurchase program are the key contradictions discussed in Safe Bulkers' latest 2025Q1 earnings call.



Charter Market Softness and Geopolitical Uncertainties:
- Safe Bulkers faced a softer charter market during Q1 2025 due to seasonality, geopolitical uncertainties, and concerns about tariffs affecting global trade and growth.
- The company maintained its strong balance sheet and took delivery of its 12th newbuild, focusing on operational excellence, environmental performance, and long-term shareholder value.

Drybulk Fleet Growth and Recycling:
- The drybulk fleet is projected to grow by about 2.8% on average in 2025 and 2026 due to stable new deliveries and increased recycling, with Panamax vessels comprising the largest share.
- Rising recycling volumes and an increase in older vessel retirements are expected to rise through market promptness.

New Fuel Regulations and Decarbonization:
- The recent decisions of MEPC 83 have adopted new environmental regulations, expanding the scope of regional FuelEU regulations to affect vessel tradability post-2028, promoting alternative fuels and energy-efficient Phase III vessels.
- Safe Bulkers has positioned itself favorably by ordering six more Phase III vessels, set to be delivered by Q1 2027, to compete within stringent greenhouse gas targets.

Dividend and Share Repurchase Programs:
- The company declared a $0.05 per share dividend and completed a repurchase program of roughly 3% of its common stock.
- These actions reflect the company's commitment to rewarding shareholders and maintaining a strong capital structure amid market volatility.