Emily Marie Harkins's questions to Safe Bulkers Inc (SB) leadership • Q3 2024
Question
Emily Marie Harkins of Jefferies questioned Safe Bulkers' target leverage, asking if the current 32% is comfortable or if the goal is to become debt-free. She also inquired about the underperformance of Panamax spot rates compared to other vessel classes.
Answer
CFO Konstantinos Adamopoulos stated that the 32% leverage is very comfortable and the company does not plan to reduce it further, noting that even up to 45-50% would be acceptable given the fleet's age and newbuild deliveries. He added that expansion is opportunistic across vessel classes, highlighting the strength of the Capesize market due to Chinese demand. President Dr. Loukas Barmparis reinforced the comfort with the current leverage by comparing debt to the fleet's scrap value.