Safe Bulkers, the Limassol-linked dry-bulk shipowner listed on the New York Stock Exchange, delivered a profit in the third quarter of 2025 despite softer rates, lower scrubber earnings and ongoing geopolitical disruptions, with two vessel sales completed, environmental upgrades progressing and a new sustainability-linked credit facility secured.

Net income reached $17.8 million, compared with $25.1m a year earlier, while adjusted net income came in at $13.9m. The board declared a $0.05 dividend per common share, payable on December 19.

Company president Loukas Barmparis noted that the period was shaped by the “postponement of the IMO net-zero framework” and a market facing “gradual fragmentation due to geopolitical reasons, port fees and tariffs,” though he said the dry-bulk market had recovered compared with the previous quarter.

“Our company maintains a strong capital structure providing flexibility in our capital allocation,” he said, pointing to ongoing fleet renewal and continued balance-sheet strength.

Revenue for Q3 stood at $73.1m, down slightly from $75.9m last year. The average daily TCE rate eased to $15,507 from $17,108, reflecting lower charter hires and reduced earnings from scrubber-fitted vessels.

Vessel operating expenses fell marginally to $21.8m, mainly due to lower repairs and maintenance, while daily opex decreased to $5,104. Excluding dry-docking and pre-delivery costs, daily opex reached $5,060, up 1 per cent year-on-year. Depreciation rose to $15.1m as newer vessels entered the fleet and older ships were sold.

General and administrative expenses increased, with daily admin costs climbing to $1,762, partly due to euro–dollar movements. Voyage expenses rose to $7.3m, driven by higher bunker consumption under scrubber-related charters. Foreign exchange losses narrowed sharply to $0.1m, compared with $2.6m last year, while interest expense held stable at $7.6m.

Liquidity remained solid. At the end of September, Safe Bulkers held $123.9m in cash, with $266.5m in undrawn revolving credit facilities. Total debt stood at $516.3m, including a €100m unsecured bond maturing in 2027. Consolidated leverage was about 35 per cent.

In July, the company secured a new $75m sustainability-linked revolving credit facility, tied to independently verified reductions in fleet carbon intensity, replacing an older facility from the same lender.

The fleet numbered 45 vessels at quarter-end, with an average age of 10.3 years and a carrying capacity of 4.6 million dwt. Twelve IMO Phase 3–NOx Tier III newbuilds have already been delivered, and the environmental upgrade programme continues, with 24 vessels enhanced so far through low-friction paints and energy-saving devices.

The company expects 71 days of dry-docking downtime in Q4, and 57 days in Q1 2026.

Its six-vessel newbuild orderbook includes two methanol dual-fuel Kamsarmax units scheduled for 2026–2027 delivery, reinforcing the company’s shift toward next-generation, lower-emission tonnage.

As part of its renewal strategy, Safe Bulkers completed the sale of Pedhoulas Leader and Pedhoulas Merchant, built in 2007 and 2006 respectively, generating a combined $4.6m gain during the quarter.

Chartering activity remained diversified. As of November 21, 17 vessels were employed in the spot market and 29 on period charters. Contracted revenue from non-cancellable charters totalled $153.5m, excluding scrubber benefits. Capesize vessels continued to deliver strong visibility, with an average remaining charter duration of 1.7 years and daily rates averaging $24,780.

The company reaffirmed there are no Russian or Ukrainian crew across the fleet and confirmed that vessels are currently avoiding both the Black Sea and the Red Sea due to security concerns.

Management continues to monitor developments linked to the Ukraine conflict and Middle East instability.

The company also confirmed its ongoing dividend policy, following earlier payments on its Series C and D preferred shares. Future dividends will remain subject to market conditions, liquidity needs and board discretion.