Safe Bulkers Reveals Newbuild Program Under Way of $409.6m

Photo credit: Safe Bulkers (Newbuild delivery – MV Climate Respect – 87000dwt)

New-York listed Safe Bulkers dry-bulk provider is continuing the environmental upgrade program of its existing fleet in relation to IMO greenhouse gas emission regulations.

The company has an extensive newbuild program of 12 vessels designed to meet the IMO regulations related to the reduction of emissions. The company continues its strategy to selectively sell relatively older tonnage and gradually replace it with newbuilds of latest available designs.

The US-listed dry bulk owner has succeeded to upgrade 10 vessel in total with 10 more vessels targeted for upgrade by the end of 2023.

In the first quarter of 2023, the shipowner made environmental upgrades for two Capesize class vessels including scrubber installation, namely the MVs Maria and Michalis H.

At the same period has further upgraded three of its vessels, the MVs Koulitsa 2, Maritsa and Kanaris.

Twelve vessels in the company’s fleet are eco-ships built after 2014 and three vessels are IMO GHG Phase 3 – NOx Tier III ships built 2022 onwards, with an aggregate capacity of 4.5 million deadweight and an average age of 10.7 years.

As of May 5, 2023, Safe Bulkers had an orderbook of nine IMO GHG Phase 3 – NOx Tier III newbuilds, eight of which are Kamsarmax class vessels and one is a Post-Panamax class vessel. Four deliveries are expected in 2023, three in 2024 and two in the first half of 2025.

At the beginning of this year the company took delivery of the Post-Panamax class vessel MV Climate Ethics, which is a Japanese newbuild. At the same period it has also sealed a deal for the acquisition of a Japanese dry-bulk, newbuild Kamsarmax class vessel of 82,000 deadweight (IMO GHG Phase 3 – NOx Tier III) with a scheduled delivery date in the second quarter of 2025.

It’s worth noting that the aggregate capital expenditure of the newbuild program is approximately $409.6 million.

The company continues its strategy to selectively sell relatively older tonnage and gradually replace it with newbuilds.

Last year the owner sold the 2006-Japanese built, Kamsarmax class vessel MV Pedhoulas Trader, at a gross sale price of $15.9 million to an unaffiliated third party. The sale was consummated in January 2023.

In March this year, Safe Bulkers also sold MV Efrossini, a 2012 Japanese-built, Panamax class vessel to an unaffiliated third party at a gross sale price of $22.5 million, and with a forward delivery date for June 2023.

When the new owner receives delivery of the vessel it will be chartered back by the company at a gross daily charter rate of $16,050, for a period of ten to fourteen months.

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