Safe Bulkers (NYSE:SB) reported higher second-quarter earnings as stronger charter rates and increased bareboat charter income lifted revenue and profitability, while the company raised its quarterly dividend for a second consecutive quarter.
President Loukas Barmparis said the board increased the quarterly dividend to $0.075 per share, marking the company’s 19th consecutive quarterly dividend payment. He said the increase reflected financial performance supported by a relatively strong charter market. The company also has an active authorization to repurchase up to 10 million shares.
Second-Quarter Financial Performance
Chief Financial Officer Konstantinos Adamopoulos said adjusted EBITDA totaled $50.3 million in the second quarter of 2026, compared with $25.5 million in the same period of 2025. Adjusted earnings per share were $0.28, based on a weighted average of 101.8 million shares, versus $0.01 per share a year earlier.
The company operated an average of 45.13 vessels during the quarter and generated an average time-charter-equivalent rate of $20,642 per day. In the second quarter of 2025, Safe Bulkers operated an average of 46.75 vessels at an average daily time-charter-equivalent rate of $14,875.
Daily vessel operating expenses declined 6% year over year to $6,207. Daily running expenses, excluding dry-docking and crew-delivery costs, declined 3% to $5,455 per day.
For the first half of 2026, Safe Bulkers generated $169 million in revenue, which Barmparis said supports the company’s fleet-growth and modernization plans.
Fleet Renewal and Capital Resources
Safe Bulkers’ fleet consists of 46 vessels following the delivery of 14 Phase III newbuildings over the past five years. The company has 10 additional newbuildings scheduled for delivery through 2029, although management also referred to nine newbuildings when discussing additional borrowing capacity upon delivery.
The company’s average fleet age was 10.3 years, compared with a global dry-bulk fleet average of 12.5 years, according to Barmparis. Safe Bulkers has 14 Phase III vessels delivered since 2022 and has two dual-fuel newbuildings scheduled for delivery in the first quarter of 2027. Those vessels will be capable of operating on fossil fuels until alternative fuels are commercially available and economically viable, he said.
Management said 26 vessels have received environmental upgrades over the past five years, including 11 Eco vessels. The company said these efforts and its fleet-renewal program have reduced fleet carbon intensity by 22%. Safe Bulkers also reported that none of its vessels were rated in the lowest “E” category under the Carbon Intensity Indicator framework, avoiding the need for additional capital spending associated with that rating.
Safe Bulkers reported net debt of approximately $8 million per vessel and a leverage ratio of 30% at quarter-end. Its liquidity and capital resources totaled about $343 million, including $143 million in cash, cash equivalents, bank deposits and restricted cash, plus $200 million available under revolving credit facilities.
- Contracted revenue backlog totaled about $154 million.
- Capital expenditure related to the newbuilding program totaled $277 million, of which $92 million had already been paid.
- Total debt was $519 million, including an unsecured €100 million loan.
- The weighted average interest rate on consolidated debt was 5.10%, with the €100 million portion carrying a fixed 2.95% coupon.
Adamopoulos said liquidity, available capital resources and contracted revenue together were just under $500 million, which management considers adequate to fund the company’s remaining capital expenditures and support debt service, reinvestment and shareholder returns.
Dry-Bulk Market Outlook
Barmparis said the dry-bulk order book stands at about 13% of the global fleet. Citing BIMCO estimates, he said dry-bulk supply could rise 2% in 2026 under an open Strait of Hormuz scenario, compared with roughly 1% if the strait is closed. About 1% of dry-bulk capacity is currently in the Persian Gulf, he said.
Under the open-Hormuz scenario, BIMCO forecasts dry-bulk demand growth of about 3% in 2026, exceeding projected supply growth. Management said freight markets were strong during the first half and remained healthy, with Capesize spot rates at about $38,000 per day and Kamsarmax spot rates at about $18,000 per day.
All seven of Safe Bulkers’ Capesize vessels were employed under period time-charter agreements, with an average remaining charter duration of 1.7 years and an average daily charter hire of $24,600. These contracts represented more than $105 million of contracted Capesize revenue backlog.
Barmparis said global dry-bulk demand is being supported by projected grain and minor-bulk trade growth, as well as demand for energy-transition-related ores and fertilizers. He also identified China as a key swing factor for dry-bulk trade, citing strong exports alongside weaker domestic demand tied to the country’s property-sector pressures and manufacturing overcapacity. India’s infrastructure investment and economic growth were also cited as supportive factors.
Management noted that approximately 30% of the global dry-bulk fleet is more than 15 years old, potentially facing higher maintenance expenses, inspections, restrictions and related costs. Only about 10% of the dry-bulk order book will be able to use alternative fuels upon delivery, while the dual-fuel order book remains limited, Barmparis said.
About Safe Bulkers (NYSE:SB)
Safe Bulkers Inc (NYSE: SB) is a dry bulk shipping company engaged in the ocean transport of commodities such as iron ore, coal, grain, and fertilizers. The company operates a modern fleet of vessels, including Panamax, Supramax and Kamsarmax bulk carriers, designed to serve a variety of trade routes and cargo types. Safe Bulkers’ fleet is employed under both time charter and voyage charter arrangements, offering flexibility to respond to market demand and optimize vessel utilization.
Founded in 2008, Safe Bulkers began trading its shares on the New York Stock Exchange in the same year, establishing itself as a publicly listed provider of dry bulk transportation services.
