Safe Bulkers has finished a really tough year for dry bulk shipping on a positive note as it managed to reduce its red ink.
The New York-listed company reported net loss of $4.6m for the fourth quarter, compared to $29.9m a year earlier.
Revenue between October and December sat at $31.7m, an improvement of 6% thanks to higher rates.
The company achieved a quarterly time charter equivalent (TCE) of $8,936, against $8,251 in the fourth quarter of 2015.
Safe Bulkers retained its tradition of low vessel operating expenses as the daily cost for its ships was $3,711, against $4,072 in the corresponding quarter of 2015.
The end of last year found Safe Bulkers with $114m in cash and bank deposits while the company is awaiting the delivery of a sole newbuilding in 2018.
Its full year loss widened from $47.9m to $56m.
Safe Bulkers president Loukas Barmparis said: “Although the chartering market improved in the last quarter of 2016 from historical lows, it still remains at unprofitable levels.
“In 2016, we achieved positive operating cash flows supported by our low average daily operating expenses.”
Its post-panamaxes have been the best performers securing above-market rates, while its three capesizes are locked into long-term contracts.
As of 17 February, Safe Bulkers had secured employment for more than half of its fleet for the remainder of the year.
Barmparis added: “At present, a significant part of our fleet is employed in the period time charter market at levels which provide visibility of our cash flows and support cash positive operations for 2017, while maintaining upside potential through 41% of open days for the remainder of 2017.
“Overall we believe that the company is well-positioned to withstand continued turbulence that may occur in the challenging market, while remaining well-positioned to take advantage of improved market conditions if the shipping markets turn.”
