Polys Hajioannou-led Safe Bulkers, a dry-bulk provider with a fleet of 44 ships, saw its net income slide in the second quarter of 2023 to $15.4 million, compared to net income of $50.3 million during the same period in 2022.
The company´s net revenues decreased by 23% to $70.6 million for the second quarter of 2023, compared to $91.6 million for the same period in 2022. This is primarily due to lower revenues from hires and decreased revenues earned by the company´s scrubber fitted vessels.
US-listed dry bulk shipowner operated in a gradually weakening charter market environment during the second quarter of 2023, compared to the same period last year, with decreased revenues due to lower hires, decreased earnings from Scrubber fitted vessels, increased operating expenses, and higher interest expenses due to increasing interest rates.
The company in the second quarter of 2023, operated 44.01 vessels on average, earning an average TCE of $17,271 compared to 41.04 vessels earning an average TCE of $25,050 during the same period in 2022.
Given the volatility associated with the Capesize charter market, as of July 21, 2023, all eight of the company´s capesize class ships have been chartered in period time charters, five of which have remaining charter durations exceeding one year.
As of July 21, 2023, the average remaining charter duration of Safe Bulker´s capesize class vessels was 2.4 years and the average daily charter hire was $22,178, resulting in a contracted revenue of approximately $153.4 million net of commissions, excluding the additional compensation related to the use of Scrubbers.
As far as the company´s fleet rejuvenation, Safe Bulkers report an orderbook, from 21 of July, of eight IMO GHG phase 3 – NOx tier III kamsarmax class newbuilds, with three scheduled deliveries in 2023, three in 2024 and two in the first half of 2025.
In the previous month the company added to its fleet portfolio the Japanese newbuild Post-Panamax class ship Climate Justice.
