The 1st quarter results for Safe Bulkers Inc. SB are linked above. As with many recent quarterly earnings results this one has some interesting reading.
Net income showed a 160% increase, but all of the increase was from a one-time $29 million gain on an early termination of a time charter. Throw out that gain and the $10 million currency loss for the same quarter of 2008 and net results were about level year over year.
SB earned an average TCE of $41k per day on their fleet of Panamax class dry bulk vessels. This more than double the current spot rate, so having ships come off time charter could be an issue. Hopefully, after checking out the fleet list this will not be a problem in 2009.
Safe Bulkers has a good cash balance, most of which is restricted to keep their bankers happy, and is about a third of long term debt. The 15ยข dividend appears to be about 30% of free cash flow, so is well covered. Safe Bulkers may be a good place to earn a reasonable dividend while waiting for the dry bulk market to improve.
Safe Bulkers 1st quarter results
sbpr052109.pdf (application/pdf Object).
The 1st quarter results for Safe Bulkers Inc. SB are linked above. As with many recent quarterly earnings results this one has some interesting reading.
Net income showed a 160% increase, but all of the increase was from a one-time $29 million gain on an early termination of a time charter. Throw out that gain and the $10 million currency loss for the same quarter of 2008 and net results were about level year over year.
SB earned an average TCE of $41k per day on their fleet of Panamax class dry bulk vessels. This more than double the current spot rate, so having ships come off time charter could be an issue. Hopefully, after checking out the fleet list this will not be a problem in 2009.
Safe Bulkers has a good cash balance, most of which is restricted to keep their bankers happy, and is about a third of long term debt. The 15ยข dividend appears to be about 30% of free cash flow, so is well covered. Safe Bulkers may be a good place to earn a reasonable dividend while waiting for the dry bulk market to improve.