Safe Bulkers saw its net income drop for the third quarter in a row to its lowest level in nearly three years.
The New York-listed owner of 46 large bulkers, nevertheless, remained profitable for the 13th consecutive quarter and kept its dividend unchanged at $0.05 per share.
Net income at the Polys Hajioannou-led company dropped to $15m in the three months through September, which marked a 71% drop from the same period of last year.
“Our… performance was adversely impacted by global economic uncertainties and a weaker charter market,” president Loukas Barmparis said.
This is highlighted by Safe Bulkers reporting a time charter equivalent rate of nearly $14,700 per day in the third quarter, its lowest reading since early 2021.
The company was employing 15 of its 46 active ships in the spot market as of 3 November, with the rest employed on period time charters.
Safe Bulkers’ eight capesizes, traditionally associated with the most volatile segments of the bulker market, are all on period charters. According to the company, five of these ships have remaining charter durations exceeding one year.
Hajioannou is counting on his extensive newbuilding and environmental upgrade programme to help maintain and boost profitability in the coming years.
Safe Bulkers contracted 14 post-panamax and kamsarmax newbuildings with Japanese-controlled yards over the past three years. Six of them have already been delivered.
The bulker pair Safe Bulkers has ordered most recently will be dual-fuelled, capable of running on methanol in addition to traditional fuels.
A parallel programme to upgrade the existing fleet by applying low-friction paints and installing scrubbers is still ongoing. By the end of December, 20 ships in the Safe Bulkers fleet will have undergone such improvements.
The company also reiterated on Tuesday that it continues to use biofuels “in certain voyages, targeting a lower carbon factor and lower environmental impact”.
