Safe Bulkers, Inc. (NYSE:SB) Q4 2019 Earnings Conference Call - Final Transcript

Feb 27, 2020 • 08:30 am ET


Safe Bulkers, Inc. (NYSE:SB) Q4 2019 Earnings Conference Call - Final Transcript


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Thank you for standing by, ladies and gentlemen, and welcome to the Safe Bulkers conference call to discuss the fourth quarter 2019 financial results. Today, we have with us from Safe Bulkers, Chairman and Chief Executive Officer, Mr. Polys Hajioannou; President, Dr. Loukas Barmparis; Chief Financial Officer, Mr. Konstantinos Adamopoulos; and Chief Operating Officer, Mr. Ioannis Foteinos.

[Operator Instructions] I must advise you that this conference is being recorded today.

Before we begin, please note that this presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended, concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters.

Words such as expects, intends, plans, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks, and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the markets in which the Company operates, risks associated with operations outside the United States and other factors listed from time-to-time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements containing herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

And now I pass the floor to Dr. Barmparis. Please go ahead, sir.

Loukas Barmparis

Good morning. I'm Loukas Barmparis, President of Safe Bulkers. Welcome to our conference call and webcast to discuss the financial results for the fourth quarter of 2019.

We had a profitable quarter despite the downtime of several vessels due to scrubber retrofitting. Bulk installed scrubbers are in operation, providing operational flexibility and commercial benefits. We have postponed the installation of scrubbers on the last five vessels from Q1 2020, and now we have to postpone again for the second quarter of 2020 due to coronavirus outbreak.

The key note of this presentation is our liquidity, which, following the refinancing which was completed by the year-end, is in excess of $170 million. We remarkably have done numerous dry dockings last year, we have already paid 75% of our environmental investments, while our debt-to-asset ratio is comfortably at 60%.

Let's move into analyzing the market conditions. On Slide 4, we present the outlook of the market in