Emily Marie Harkins

Emily Marie Harkins, on behalf of Omar Nokta at Jefferies, questioned Safe Bulkers' strategy regarding its 32% consolidated leverage ratio and asked for commentary on the discrepancy between lagging Panamax spot rates and stronger rates for other dry bulk classes.

Answer

CFO Konstantinos Adamopoulos stated that the 32% leverage is a 'very comfortable level' and the company does not plan to reduce it further, noting that even 45-50% would be manageable with the young fleet and newbuilds. President Dr. Loukas Barmparis added that the debt is low relative to the fleet's scrap value. Regarding vessel classes, Adamopoulos described the company's expansion strategy as opportunistic and highlighted the strength of the Capesize market, stating they would expand in that sector if prices were lower.

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.