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Safe Bulkers triples profit as revenue rises 16 per cent

Cyprus Mail · 2026-06-19

AI SUMMARY

• What happened: Safe Bulkers reported a significant increase in first-quarter profit for 2026, with net income rising to $22.2 million, up from $7.2 million last year, driven by stronger dry bulk market conditions and increased charter revenues. • Why it matters: The company's financial growth reflects improved operational efficiency and market conditions, leading to a raised dividend for shareholders and a strategic listing on Euronext Athens, enhancing its access to European investors. • What to watch next: Safe Bulkers is pursuing a fleet renewal strategy and has secured $161 million in revenue from existing charter contracts, while navigating geopolitical uncertainties that could impact the shipping market.

**Title: Safe Bulkers Triples Profit as Revenue Rises 16 Percent**

Safe Bulkers, a prominent shipping company listed on the New York Stock Exchange and controlled by the Hajioannou family, has reported a significant increase in its first-quarter profit for 2026. The company’s net income surged to $22.2 million, a notable rise from $7.2 million during the same period last year. This impressive growth is attributed to favorable conditions in the dry bulk market, increased charter revenues, and reduced vessel operating costs.

In its official earnings announcement, Safe Bulkers revealed that net revenue climbed by 16 percent to $74.4 million, up from $64.3 million a year earlier. The increase in revenue was primarily driven by higher charter revenues and the operational contributions of vessels equipped with exhaust gas cleaning systems, commonly referred to as scrubbers. The company also reported an increase in earnings per share, which rose to $0.20 from $0.05 in the first quarter of 2025. Additionally, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $42.2 million, compared to $28.8 million in the previous year.

The improved financial performance is reflected in the company’s operating metrics as well. Safe Bulkers reported an increase in its average daily time charter equivalent rate, which rose to $17,095 per day, up from $14,655 in the first quarter of 2025. Concurrently, daily vessel operating expenses decreased to $5,223 from $5,765 a year earlier, contributing positively to the company's profitability.

In light of these stronger results, Safe Bulkers' board of directors has approved an increase in the common stock dividend to $0.06 per share, up from $0.05 in the previous quarter. This dividend is scheduled to be paid on July 16, 2026, to shareholders of record as of June 30, 2026.

Loukas Barmparis, president of Safe Bulkers, highlighted two significant developments during the quarter: the increased dividend and the company's recent listing on Euronext Athens. The move to Euronext Athens was completed in June 2026, following the publication of its prospectus for trading admission. This listing marks Safe Bulkers as the first shipping company to have its common shares traded on both the New York Stock Exchange and Euronext Athens, thereby expanding its access to a broader European investor base, including markets in Paris, Milan, Brussels, Amsterdam, Dublin, Lisbon, Oslo, and Athens.

The company has also maintained a robust liquidity position, with cash and cash equivalents rising to $181.2 million at the end of March, compared to $127.7 million a year earlier. Unused credit facilities stood at $193.2 million, while operating cash flow increased to $35.2 million, up from $29.9 million in the first quarter of 2025.

Safe Bulkers is actively pursuing a fleet renewal strategy, currently operating a fleet of 45 vessels with a total capacity of 4.5 million deadweight tonnes and an average age of 10.5 years. The company’s order book includes 11 new-generation vessels designed to comply with the International Maritime Organization's greenhouse gas Phase 3 and NOx Tier III requirements. This includes ten Kamsarmax vessels, two of which are dual-fuel methanol ships, as well as one Capesize vessel. In alignment with its fleet renewal and environmental upgrade strategy, Safe Bulkers is selectively selling older vessels; during the first half of the year, the company agreed to sell a 2012-built Capesize, a 2006-built Post-Panamax, and a 2008-built Kamsarmax.

Looking ahead, Safe Bulkers has already secured approximately $161 million in revenue from existing charter contracts, with 56 percent of its fleet employment days for 2026 covered by contracts. However, the company continues to navigate a market influenced by geopolitical uncertainties, including ongoing tensions in the Middle East, the Black Sea, and the Strait of Hormuz.

As Safe Bulkers moves forward, its strategic initiatives and strong financial performance position it well to adapt to the evolving challenges of the shipping industry while providing returns to its shareholders.

Source: Cyprus Mail
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