Safe Bulkers Inc (NYSE:SB), an international provider of marine drybulk transportation services, stock rose 2.42% (As on May 20, 11:17:26 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY25. As of May 9, 2025, the company had an orderbook of six IMO GHG Phase 3 – NOx Tier III Kamsarmax class newbuilds, two of which are methanol dual-fueled. The scheduled delivery of these vessels is four vessels in 2026 and two vessels in 2027. As of May 9, 2025, the aggregate capital expenditure of the orderbook was approximately $252.4 million, of which $76.5 million had already been paid and $175.9 million remains outstanding. As of May 9, 2025, the company had a fleet of 47 vessels consisting of 8 Panamax, 14 Kamsarmax, 17 Post-Panamax and 8 Capesize class vessels, with an aggregate carrying capacity of 4.7 million dwt and an average age of 10.1 years. In the fleet, 12 are IMO GHG Phase 3 – NOx Tier III ships built 2022 onwards and 11 vessels are eco-ships built 2014 onwards. Furthermore, we have 21 vessels equipped with exhaust gas cleaning devices (“Scrubbers”), including all of the Capesize class vessels.

Moreover, the Company is gradually renewing its fleet with newbuilds designed to meet the International Maritime Organization (the “IMO”) regulations related to the Phase 3 reduction of greenhouse gas emissions (the “IMO GHG Phase 3”) and nitrogen oxides emissions (the “IMO NOx Tier III”) and selectively selling older vessels. As of May 9, 2025, the IMO GHG Phase 3 NOx Tier III newbuild program consisted of 18 vessels in the aggregate, including contracts for two methanol dual-fueled Kamsarmax newbuilds. The aggregate capital expenditure of the newbuild program is approximately $662.1 million, of which $486.2 million, or 73%, has already been paid.

SB in the first quarter of FY25 has reported the adjusted earnings per share of 5 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue declined to $64.3 million in the first quarter of FY25 from $81.67 million in the same period last year, beating the analysts’ estimates for revenue of $51 million. In April 2025, the Company entered into a new credit facility of up to $84.3 million with a financial institution to be consummated in the third quarter of 2025. The new facility will be secured by the aforementioned seven vessels and will mature in 2030.