Safe Bulkersport Q3 & Nine Month Results

Safe Bulkers, Inc. (NYSE: SB), an international provider of marine drybulk transportation services, announced its unaudited financial results for the three- and nine- month periods ended September 30, 2010. The company also declared a quarterly dividend of $0.15 per share for the third quarter of 2010.

Summary of Third Quarter 2010 Results
•    Net revenue for the third quarter of 2010 increased by 11% to $40.8 million from $36.9 million during the same period in 2009.
•    Net income for the third quarter of 2010 decreased by 1% to $22.0 million from $22.2 million during the same period in 2009.
•    EBITDA1 for the third quarter of 2010 increased by 8% to $28.6 million from $26.5 million during the same period in 2009.
•    Earnings per share for the third quarter 2010 equaled $0.33, calculated on weighted average number of shares of 65,874,601, compared to $0.41 in the third quarter 2009, calculated on weighted average number of shares of 54,512,014.
•    Declaration of a dividend of $0.15 per share for the third quarter of 2010.

Summary of Nine Months Ended September 30, 2010 Results
•    Net revenue for the nine months ended September 30, 2010 decreased by 10% to $115.7 million from $128.0 million during the same period in 2009.
•    Net income for the nine months ended September 30, 2010 decreased by 45% to $78.5 million from $142.2 million during the same period in 2009.
•    EBITDA for the nine months ended September 30, 2010, decreased by 40% to $95.5 million from $159.2 million during the same period in 2009.
•    Earnings per share for the nine months ended September 30, 2010 equaled $1.26, calculated on weighted average number of shares of 62,431,775 compared to $2.61 in the nine months ended September 30, 2009, calculated on weighted average number of shares of 54,509,508.

Fleet and Employment Profile
The company’s operational fleet as of September 30, 2010, was comprised of 15 drybulk vessels with an average age of 3.80 years. The Company has contracted for seven additional drybulk newbuild vessels with deliveries scheduled at various times through 2013. The newbuilds consist of three Post-Panamax, two Kamsarmax, one Panamax and one Capesize vessel.

As of November 1, 2010, the contracted employment of the company’s fleet was 85% of fleet ownership days for the remaining days of 2010, 68% for 2011, 58% for 2012 and 52% for 2013, including vessels which will be delivered to us in the future. In August 2010, we entered into a new period time charter for the Kanaris, a 177,000 dwt Capesize class vessel, for a minimum duration of 12 months and a maximum duration of 14 months, at a gross daily charter rate of $31,000, less 5% total commissions. Upon the completion of this new period time charter, the vessel will commence a 20-year period time charter under a contract the Company entered into in 2008.

In October 2010, we entered into a new period time charter for the Maria, a 76,000 dwt Panamax class vessel, for a duration of 34 months to 36 months, with a forward delivery date in second quarter of 2011, at a gross daily charter rate of $20,250 less 3.5% total commissions.

Dividend Declaration
The company declared a cash dividend on its common stock of $0.15 per share payable on or about November 26, 2010 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 19, 2010.

The company had 65,876,507 shares of common stock outstanding as of November 1, 2010.

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) our earnings, financial condition and cash requirements and availability, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in our existing and future debt instruments and (v) global financial conditions. We can give no assurance that dividends will be paid in the future.

Management Commentary
Dr. Loukas Barmparis, President of the company, said: “As we head towards the year end our attention is focused on increasing our charter coverage for future periods. Our charter coverage has reached 85% for the remainder of this year and 68% for 2011. We believe our strong balance sheet provides us with considerable financial flexibility. We continue to monitor market condition for further acquisition opportunities. At the same time, we have paid our tenth consecutive quarterly dividend, in line with our dividend policy.”