Tuesday, July 19, 2011

Safe Bulkers Inc. - Earnings Estimate For 2011 Q2

For the quarter ended June 30th, 2011, we forecast that Safe Bulkers Inc. (NYSE: SB) generated net income of $22,350,000 or $0.32 earnings per share. We estimate that the company’s net TCE Revenues for the quarter were $41,100,000 & the fleet average TCE was $28,500. We also forecast that during the second quarter of 2011, Safe Bulkers generated EBITDA of $29,300,000.

Our forecast is based on the following two key assumptions: Two vessels were off-hire for scheduled dry-dock repairs & inspections during the quarter, resulting in a total of 14 days off-hire. Also the company generated a net loss from derivatives of $3,500,000.

During the second quarter of 2011, the company issued 5,000,000 new shares in a secondary offering raising net proceeds of approximately $39.9 million. We also estimate that the company drew $24 million from its “Maxdekatria” Credit Facility. Based on these transactions and the company’s operating results, we estimate that SB’s total book capitalization as of June 30th, 2011 stood at $818.6 million, including long-term debt of $505.4 million. We finally estimate that SB will declare a regular quarterly dividend of $0.15 per share.

As of June 30th, 2011, Safe Bulkers was operating a modern diversified fleet of 16 bulk carriers (consisting of 4 PANAMAX, 3 KAMSARMAX, 8 POST-PANAMAX, & one CAPE size vessels), with a total DWT capacity of 1,443,800 MT, and an average age of 4.3 years.

In addition, the company has embarked on an extensive $480 million new-building program for an additional 11 vessels with a total DWT capacity of 1,097,200 MT. Three of the company’s new-building vessels are scheduled for delivery during the second half of 2011.