Safe Bulkers Sells Bulker Trio to Boost Liquidity

Greece-based dry bulk shipowner Safe Bulkers has sold two Panamx vessels to entities controlled by Polys Hajioannou, the company’s Chairman and Chief Executive Officer.

The vessels in question are the Stalo, an 87,000 dwt Post-Panamax vessel built in 2006, and the Kypros Unity, a 78,000 dwt Panamax vessel built in 2014 and they were sold for a total of USD 29 million. Both vessels are operating in the spot market and expect to be delivered to the buyer in March 2016.

In addition, another company controlled by Hajioannou assumed responsibility for one of Safe Bulkers’ newbuild, namely Hull No. 1718, a 84,000 dwt, Japanese eco-design PostPanamax scheduled for delivery in the first half of 2019.

What is more, discussions are under way for Hajioannou to assume the Safe Bulkers’ obligations under a shipbuilding contract for Hull No. 1552, a 81,600 dwt, Japanese eco-design newbuild Kamsarmax scheduled for delivery in the first half of 2018.

safe_bulkers_2

The sale of the Stalo and of the Kypros Unity and the novation of Hull No. 1718 will result in a USD 28.4 million reduction in the company’s capital expenditure obligations and cutting of its debt by USD 16.7 million.

Safe Bulkers reported a 24% lower fourth quarter revenue when compared to 2014 figures, worth USD 29.9 million.

Net loss for the fourth quarter of 2015 was USD 29.9 million as compared to USD 0.1 million, during the same period in 2014.

Net revenues for the twelve months of 2015 decreased by 17% to USD 127.3 million as compared to USD 154.1 million during the same period in 2014.

Overall, net loss for the full year 2015 was USD 47.9 million from net income of USD 14.6 million posted in 2014.

“We continue to execute on our strategy of further increasing our liquidity and enhancing our financial flexibility to address the historically low charter market conditions. The sale and novation transactions with Mr. Hajioannou announced today will materially reduce our capital expenditure obligations in the near term and our existing indebtedness and significantly improve our liquidity position,” Loukas Barmparis, President of the company, said.

As of February 5, 2016, the company’s operational fleet comprised of 37 drybulk vessels two of which have been agreed to be sold, with an average age of 6.1 years and an aggregate carrying capacity of 3.3 million dwt.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >