Safe Bulkers, Inc. Reports Third Quarter and First Nine Months 2014 Results and Declares Quarterly Dividend on Common Stock

ATHENS, GREECE--(Marketwired - Nov 5, 2014) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three- and nine- month period ended September 30, 2014. The Board of Directors of the Company also declared a quarterly dividend of $0.04 per share of the common stock for the third quarter of 2014. 

Summary of Third Quarter 2014 Results

• Net revenues for the third quarter of 2014 decreased by 13% to $36.5 million from $41.9 million during the same period in 2013.
• Net income for the third quarter of 2014 decreased by 87% to $1.5 million from $11.6 million, during the same period in 2013. Adjusted net income¹ for the third quarter of 2014 decreased by 92% to $1.0 million from $13.1 million, during the same period in 2013.
• EBITDA² for the third quarter of 2014 decreased by 38% to $14.4 million from $23.4 million during the same period in 2013. Adjusted EBITDA³ for the third quarter of 2014 decreased by 44% to $13.9 million from $24.8 million during the same period in 2013.
• Loss per share⁴ and Adjusted loss per share⁴ for the third quarter of 2014 of $0.02 and $0.03 respectively, calculated on a weighted average number of 83,448,120 shares, compared to Earnings per share⁴ and Adjusted earnings per share⁴ of $0.14 and $0.16 respectively, in the third quarter 2013, calculated on a weighted average number of 76,684,316 shares.
• The Board of Directors of Company declared a dividend of $0.04 per share for the third quarter of 2014. 

Summary of Nine Months Ended September 30, 2014 Results

• Net revenues for the first nine months of 2014 decreased by 10% to $115.0 million from $127.5 million during the same period in 2013.
• Net income for the first nine months of 2014 decreased by 72% to $14.8 million from $52.2 million. Adjusted net income for the first nine months of 2014 decreased by 71% to $12.8 million from $44.1 million, during the same period in 2013.
• EBITDA for the first nine months of 2014 decreased by 39% to $53.3 million from $87.0 million during the same period in 2013. Adjusted EBITDA for the first nine months of 2014 decreased by 35% to $51.3 million from $78.9 million during the same period in 2013.
• Earnings per share and Adjusted earnings per share for the first nine months of 2014 of $0.11 and $0.08, respectively, calculated on a weighted average number of shares of 83,444,566, compared to $0.67 and $0.56 in the first nine months of 2013, calculated on a weighted average number of shares of 76,679,082.

Fleet and Employment Profile
In September 2014, the Company took delivery of the Kypros Unity (Hull No. 821), a 78,000 dwt, Japanese eco-design newbuild Panamax class vessel. Upon her delivery, the vessel was employed in the spot charter market.

As of November 3, 2014, the Company's operational fleet comprised of 32 drybulk vessels with an average age of 5.7 years and an aggregate carrying capacity of 2.9 million dwt. The fleet consists of 11 Panamax class vessels, 7 Kamsarmax class vessels, 11 Post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. As of November 3, 2014, the Company had contracted to acquire 12 new eco-design newbuild vessels, comprised of 5 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 2 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be new eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt and average age of 6.1 years. 

Set out below is a table showing the Company's existing and newbuild vessels and their contracted employment as of November 3, 2014:

Vessel Name		DWT		Year Built		Country of construction		Charter Rate (1)USD/day		Charter Duration (2)
Panamax
Maria		76,000		2003		Japan		9,100		Jul 2014 - Jan 2015
Koulitsa		76,900		2003		Japan		13,250		Jun 2014- Jun 2015
Paraskevi		74,300		2003		Japan		8,500		Jul 2014 - Dec 2014
Vassos		76,000		2004		Japan		BPI(4) + 6%		Apr 2014 - Nov 2014
Katerina		76,000		2004		Japan		12,450		Jul 2014 - Nov 2014
Maritsa		76,000		2005		Japan		27,649 (3)		Mar 2013 - Jan 2015
Efrossini		75,000		2012		Japan		10,400		Jul 2014 - May 2015
Zoe		75,000		2013		Japan		9,100		Aug 2014 - Jan 2015
Kypros Land		77,100		2014		Japan		15,000		Aug 2014 - Nov 2014
Kypros Sea		77,100		2014		Japan		15,350		Sep 2014 - Nov 2014
Kypros Unity		78,000		2014		Japan		11,000		Sep 2014 - Nov 2014
Kamsarmax
Pedhoulas Merchant		82,300		2006		Japan		BPI(4) + 9.5%		Jul 2013 - Jul 2015
Pedhoulas Trader		82,300		2006		Japan		BPI(4) + 6.5%		Aug 2013 - Aug 2015
Pedhoulas Leader		82,300		2007		Japan		10,600		Jul 2014 - Apr 2015
Pedhoulas Commander		83,700		2008		Japan		10,500		Jul 2014 - Apr 2015
Pedhoulas Builder		81,600		2012		China		8,750		Sep 2014 - Nov 2014
Pedhoulas Fighter		81,600		2012		China		9,200		Aug 2014 - Nov 2014
								11,250		Nov 2014 - Dec 2014
Pedhoulas Farmer		81,600		2012		China		11,000		Sep 2014 - Aug 2015
Post-Panamax
Stalo		87,000		2006		Japan		13,500		Aug 2014 - Nov 2014
Marina		87,000		2006		Japan		13,000		Jul 2014 - Nov 2014
Xenia		87,000		2006		Japan		8,500		Jul 2014 - Jan 2015
Sophia		87,000		2007		Japan		10,000		Oct 2014 - Dec 2014
Eleni		87,000		2008		Japan		12,500		Oct 2014 - Nov 2014
Martine		87,000		2009		Japan		9,250		Aug 2014 - Feb 2015
Andreas K		92,000		2009		South Korea		7,500		Oct 2014 - Nov 2014
								14,000		Nov 2014 - Dec 2014
Panayiota K		92,000		2010		South Korea		13,300		Jul 2014 - Nov 2014
Venus Heritage		95,800		2010		Japan		10,000		Sep 2014 - Nov 2014
Venus History		95,800		2011		Japan		9,833		Sep 2014 - Jun 2015
Venus Horizon		95,800		2012		Japan		13,000		Oct 2013 - Mar 2015
Capesize
Kanaris		178,100		2010		China		25,928		Sep 2011 - Jun 2031
Pelopidas		176,000		2011		China		38,000		Feb 2012 - Dec 2021
Lake Despina		181,400		2014		Japan		24,376 (5)		Jan 2014 - Jan 2024
Total		2,941,700

1)	Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable. Charter agreements may provide for additional payments, namely ballast bonus, to compensate for vessel repositioning.
2)	The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of November 3, 2014, scheduled start dates. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.
3)	Following the early redelivery of the Maritsa, in January 2013 the Company received a cash compensation payment of $13.1 million, which is being amortized over the period of the new period time charter with the same charterer. The agreed gross daily charter rate is $8,000 for the period until January 2015.
4)	A period time charter at a gross daily charter rate linked to the Baltic Panamax Index ("BPI") plus a premium.
5)	A period time charter of ten years at a gross daily charter rate of $23,100 for the first two and a half years and of $24,810 for the remaining period. The charter agreement grants the charterer an option to purchase the vessel at any time beginning at the end of the seventh year of the charter, at a price of $39 million less 1.00% commission, decreasing thereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel and subsequently offers to sell such vessel to a third party. The charter agreement also grants the charterer the option to extend the period time charter for an additional twelve months at a time, at a gross daily charter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times.

Set out below is a table showing the Company's newbuild vessels and their contracted employment as of November 3, 2014:

Vessel Name		DWT		Expected delivery		Country of construction		Charter Rate (1) USD/day		Charter Duration (2)
Panamax
Hull No. 822		77,000		1H 2015		Japan
Hull No. 1689		76,500		1H 2015		Japan		15,400		Apr 2015 -  Apr 2025
Hull No. 827		77,000		2H 2015		Japan
Hull No. 828		77,000		1H 2016		Japan
Hull No. 835		77,000		2H 2016		Japan
Kamsarmax
Hull No. 1148		82,000		1H 2015		China
Hull No. 1146		82,000		1H 2016		China
Hull No. 1551		81,600		1H 2016		Japan
Hull No. 1552		81,600		1H 2017		Japan
Post-Panamax
Hull No. 1685		84,000		2H 2015		Japan
Hull No. 1686		84,000		2H 2015		Japan
Hull No. 1718		84,000		1H 2016		Japan
Total		963,700

1)	Charter rate represents recognized gross daily charter rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross daily charter rates represents the weighted average gross charter rate over the duration of the applicable charter period or series of charter periods, as applicable.
2)	The start dates listed reflect scheduled start dates as of November 3, 2014. Actual start dates and redelivery dates may differ from the scheduled start and redelivery dates depending on the terms of the charter and market conditions.

The contracted employment of fleet ownership days as of November 3, 2014 was:

	2014 (remaining)	73%
	2014 (full year)	96%
	2015	23%
	2016	10%

Capital expenditure requirements and liquidity

As of September 30, 2014, the Company had agreed to acquire 12 newbuild vessels, with 6 to be delivered in 2015; 5 to be delivered in 2016; and 1 to be delivered in 2017. The remaining capital expenditure requirements to shipyards or sellers for the delivery of these 12 newbuilds amounted to $325.6 million, of which $11.9 million was scheduled to be paid in the last three months of 2014, $162.1 million in 2015, $130.7 million in 2016 and $20.9 million in 2017.

As of September 30, 2014, the Company had liquidity of $523.0 million consisting of $77.0 million in cash and short-term time deposits, $2.7 million in long-term restricted cash, a $50.0 million floating rate note which matured in October 2014, $103.3 million available under existing revolving credit facilities and $290.0 million under committed loan facilities for four existing and eleven newbuild vessels. Additionally, the Company had one unencumbered newbuild vessel on order against which additional financing could be raised upon its delivery.

Dividend Declaration

The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.04 per share payable on or about December 5, 2014 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on November 21, 2014.

The Company has 83,450,266 shares of common stock issued and outstanding as of today's date.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company's existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or not be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "We have experienced substantially weak charter market conditions, which are creating aversion for newbuild orders; a part of equation for a sustainable market recovery. In this volatile environment our company maintains strong liquidity and lean operations resulting to a low break-even point, while our capital expenditure requirements are fully funded."

Conference Call

On Thursday, November 6, 2014 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until November 13, 2014 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#

Slides and Audio Webcast

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Third Quarter 2014 Results

Net income decreased by 87% to $1.5 million for the third quarter of 2014 from $11.6 million for the third quarter of 2013, mainly due to the following factors:

Net revenues: Net revenues decreased by 13% to $36.5 million for the third quarter of 2014, compared to $41.9 million for the same period in 2013, mainly due to a decrease in charter rates. The Company operated 31.05 vessels on average during the third quarter of 2014, earning a TCE⁵ rate of $10,736, compared to 27.43 vessels and a TCE rate of $15,264 during the same period in 2013.

Voyage expenses: Voyage expenses increased by 79% to $6.1 million for the third quarter of 2014 compared to $3.4 million for the same period in 2013, mainly due to an increase in the vessels' repositioning expenses.

Vessel operating expenses: Vessel operating expenses increased by 21% to $13.0 million for the third quarter of 2014, compared to $10.7 million for the same period in 2013. The increase in operating expenses is mainly attributable to an increase in ownership days by 13% to 2,857 days for the third quarter of 2014 from 2,524 days for the same period in 2013 and due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.

Depreciation: Depreciation increased to $10.9 million for the third quarter of 2014, compared to $9.6 million for the same period in 2013, as a result of the increase in the average number of vessels operated by the Company during the third quarter of 2014.

Interest expense: Interest expense decreased to $2.0 million, or by 5%, in the second quarter of 2014 from $2.1 million for the same period in 2013, as a result of the decrease in the average outstanding amount of loans and credit facilities and in the weighted average interest rate of such loans and credit facilities.

Gain/(loss) on derivatives: Gain on derivatives amounted to $0.5 million in the third quarter of 2014, compared to a loss of $1.5 million for the same period in 2013, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that are employed to manage the risk and interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.1 years as of September 30, 2014. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Daily vessel operating expenses⁶: Daily vessel operating expenses increased by 7% at $4,542 for the third quarter of 2014 compared to $4,249 for the same period in 2013, mainly due to the drydocking of two vessels in the third quarter of 2014 compared to none for the same period in 2013.

Daily general and administrative expenses⁶: Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs incurred in relation to our operation as a public company, increased by 10% to $1,179 for the third quarter of 2014, compared to $1,071 for the same period in 2013. The increase is mainly attributable to the increase of the daily flat management fee from $700 per day to $800 per day, effective from May 29, 2014.

1	Adjusted net income is a non-GAAP measure. Adjusted net income represent net income before gain on asset purchase cancellation, early redelivery income/(cost), gain/(loss) on derivatives and foreign currency respectively. See Table 1.
2	EBITDA is a non-GAAP measure and represents net income plus net interest expense, tax, depreciation and amortization.
3	Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain on asset purchase cancellation, early redelivery income/(cost), gain/(loss) on derivatives and foreign currency respectively. See Table 1.
4	Earnings/(loss) per share and Adjusted earnings/(loss) per share represent Net income and Adjusted net income less Preferred dividend divided by the weighted average number of shares respectively. See Table 1.
5	Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
6	See Table 2.

Unaudited Interim Financial Information and Other Data
SAFE BULKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands of U.S. Dollars except for share and per share data)
			Three-Months Period Ended September 30,						Nine-Months Period Ended September 30,
			2013			2014			2013			2014
REVENUES:
	Revenues		43,103			37,890			130,704			119,307
	Commissions		(1,223	)		(1,374	)		(3,155	)		(4,270	)
	Net revenues		41,880			36,516			127,549			115,037
EXPENSES:
	Voyage expenses		(3,383	)		(6,059	)		(8,673	)		(15,052	)
	Vessel operating expenses		(10,724	)		(12,976	)		(31,081	)		(38,192	)
	Depreciation		(9,625	)		(10,899	)		(27,614	)		(31,932	)
	General and administrative expenses		(2,703	)		(3,368	)		(8,263	)		(9,859	)
	Early redelivery income/(cost)		-			-			7,050			(532	)
	Gain on asset purchase cancellation		-			-			-			3,633
	Operating income		15,445			3,214			58,968			23,103
OTHER (EXPENSE) / INCOME:
	Interest expense		(2,104	)		(2,016	)		(6,976	)		(6,409	)
	Other finance costs		(229	)		(211	)		(678	)		(629	)
	Interest income		249			272			763			758
	(Loss)/gain on derivatives		(1,454	)		499			1,082			(1,045	)
	Foreign currency (loss)/gain		(29	)		24			(2	)		(73	)
	Amortization and write-off of deferred finance charges		(283	)		(304	)		(918	)		(923	)
	Net income		11,595			1,478			52,239			14,782
	Less Preferred dividend		818			3,550			969			5,840
	Net income/(loss) available to common shareholders		10,777			(2,072	)		51,270			8,942
Earnings/(loss) per share			0.14			(0.02	)		0.67			0.11
Weighted average number of shares			76,684,316			83,448,120			76,679,082			83,444,566

SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
			December 31, 2013		September 30, 2014
ASSETS
	Cash, time deposits and restricted cash, short term		71,421		76,998
	Other current assets		51,764		22,069
	Short-term investment		50,000		50,000
	Vessels, net		855,200		971,575
	Advances for vessel acquisition and vessels under construction		76,299		62,454
	Restricted cash non-current		1,423		2,663
	Other non-current assets		6,109		7,070
Total assets			1,112,216		1,192,829
LIABILITIES AND EQUITY
	Current portion of long-term debt		35,185		27,205
	Other current liabilities		22,119		15,100
	Long-term debt, net of current portion		473,110		441,302
	Other non-current liabilities		3,466		1,584
	Shareholders' equity		578,336		707,638
	Total liabilities and equity		1,112,216		1,192,829

TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND
ADJUSTED EARNINGS/(LOSS) PER SHARE
		Three-Months Period Ended September 30,					Nine-Months Period Ended September 30,
(In thousands of U.S. Dollars except for share and per share data)		2013		2014			2013			2014
Net Income - Adjusted Net Income
Net Income		11,595		1,478			52,239			14,782
Less Gain on asset purchase cancellation		-		-			-			(3,633	)
Less Early redelivery (income)/cost		-		-			(7,050	)		532
Plus Loss/(gain) on derivatives		1,454		(499	)		(1,082	)		1,045
Plus Foreign currency loss/(gain)		29		(24	)		2			73
Adjusted net income		13,078		955			44,109			12,799
EBITDA - Adjusted EBITDA
Net Income		11,595		1,478			52,239			14,782
Plus Net Interest Expense		1,855		1,744			6,213			5,651
Plus Depreciation		9,625		10,899			27,614			31,932
Plus Amortization		283		304			918			923
EBITDA		23,358		14,425			86,984			53,288
Less Gain on asset purchase cancellation		-		-			-			(3,633	)
Less Early redelivery (income)/cost		-		-			(7,050	)		532
Plus Loss/(gain) on derivatives		1,454		(499	)		(1,082	)		1,045
Plus Foreign currency loss/(gain)		29		(24	)		2			73
ADJUSTED EBITDA		24,841		13,902			78,854			51,305
EPS
Net Income		11,595		1,478			52,239			14,782
Less Preferred dividend		818		3,550			969			5,840
Net income/(loss) available to common shareholders		10,777		(2,072	)		51,270			8,942
Weighted average number of shares		76,684,316		83,448,120			76,679,082			83,444,566
Earnings/(loss) per share		0.14		(0.02	)		0.67			0.11
Adjusted EPS
Adjusted net income		13,078		955			44,109			12,799
Less Preferred dividend		818		3,550			969			5,840
Adjusted net income/(loss) available to common shareholders		12,260		(2,595	)		43,140			6,959
Weighted average number of shares		76,684,316		83,448,120			76,679,082			83,444,566
Adjusted Earnings/(loss) per share		0.16		(0.03	)		0.56			0.08

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share are not recognized measurements under US GAAP.

Adjusted Net Income represents net income before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively.

Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects from gain/(loss) on asset purchase cancellation, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.

EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income/(loss) available to common shareholders and Adjusted Earnings/(loss) per share have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under US GAAP. EBITDA and Adjusted EBITDA should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.

TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS
		Three-Months Period Ended September 30,								Nine-Months Period Ended September 30,
		2013				2014				2013				2014
FLEET DATA
Number of vessels at period's end			28				32				28				32
Average age of fleet (in years)			5.33				5.60				5.33				5.60
Ownership days (1)			2,524				2,857				7,137				8,365
Available days (2)			2,522				2,837				7,089				8,289
Operating days (3)			2,507				2,831				7,065				8,262
Fleet utilization (4)			99.3	%			99.1	%			99.0	%			98.8	%
Average number of vessels in the period (5)			27.43				31.05				26.14				30.64
AVERAGE DAILY RESULTS
Time charter equivalent rate (6)		$	15,264			$	10,736			$	16,769			$	12,062
Daily vessel operating expenses (7)		$	4,249			$	4,542			$	4,355			$	4,566
Daily general and administrative expenses (8)		$	1,071			$	1,179			$	1,158			$	1,179

(1)	Ownership days represent the aggregate number of days in a period during which each vessel in our fleet has been owned by us.
(2)	Available days represent the total number of days in a period during which each vessel in our fleet was in our possession net of off-hire days associated with scheduled maintenance, which includes major repairs, drydockings, vessel upgrades or special or intermediate surveys.
(3)	Operating days represent the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, excluding scheduled maintenance.
(4)	Fleet utilization is calculated by dividing the number of our operating days during a period by the number of our ownership days during that period.
(5)	Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period.
(6)	Time charter equivalent rates, or TCE rates, represent our charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.
(7)	Daily vessel operating expenses include the costs for crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance, statutory and classification expense, drydocking, intermediate and special surveys and other miscellaneous items. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.
(8)	Daily general and administrative expenses include daily fixed and variable management fees payable to our Manager and daily costs in relation to our operation as a public company. Daily general and administrative expenses are calculated by dividing general and administrative expenses by ownership days for the relevant period.

About Safe Bulkers, Inc.
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services. The Company's common stock, series B, series C and series D preferred stock are listed on the NYSE, where they trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D" respectively. The Company's current fleet consists of 32 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire 12 additional drybulk newbuild vessels to be delivered at various dates through 2017.

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.