Driven by higher revenues, Monaco-based drybulk shipping company Safe Bulkers managed to return to profitability in the first quarter of this year.
The company posted net income of USD 6 million in Q1 2018, compared to net loss of USD 3.3 million during the same period in 2017.
Net revenues for the first quarter of 2018 increased by 31% to USD 43.5 million from USD 33.3 million during the same period in 2017. This was mainly due to improved charter rates, in addition to an increase in the average number of vessels, according to Safe Bulkers.
“Our revenues continued to improve supporting gradual increase in our profitability. We intend to continue to use our cash from operations to further improve our capital structure and deleverage in forthcoming quarters,” Loukas Barmparis, President of Safe Bulkers, said.
As of May 24, 2018, the company has agreed to finance the recently acquired secondhand vessel, which was paid from cash from operations, by increasing an existing credit facility of USD 36.7 million secured by three vessels to USD 54 million which will be secured by the four vessels after the increase. In addition, Safe Bulkers has agreed to finance an unencumbered vessel and refinance another existing facility of USD 23.5 million with a new 5-year term loan of USD 32 million.
As of May 24, Safe Bulkers’ operational fleet comprised 39 drybulk vessels with an average age of 7.9 years and an aggregate carrying capacity of 3.5 million dwt. In addition, one Kamsarmax bulker is expected to join the company in June this year, marking the completion of Safe Bulkers’ newbuilding program.