Safe Bulkers, Inc. Sells MV Michalis H for $35.2 Million
Cyprus-based shipping company Safe Bulkers, Inc. has announced the sale of its Capesize class dry-bulk vessel, the MV Michalis H, for a gross price of $35.2 million. The transaction is set for forward delivery within the first quarter of 2026. This strategic move is part of the company’s ongoing fleet renewal initiative, aimed at modernizing its operations and enhancing efficiency.
Loukas Barmparis, the president of Safe Bulkers, emphasized the timing of the sale, stating that it aligns with the company’s renewal strategy and reflects what they consider an optimal moment in the market cycle. He noted that the company currently has an orderbook consisting of eight vessels scheduled for delivery by 2029, indicating a proactive approach to fleet management and growth.
Company Overview and Market Position
Safe Bulkers, Inc. is recognized as a leading provider of marine dry-bulk transportation services. The company specializes in transporting bulk cargoes, including coal, grain, and iron ore, across global shipping routes. It serves some of the largest users of marine dry-bulk transportation, highlighting its significant role in the industry.
The company’s common stock, along with its series C and series D preferred stocks, are publicly traded on the New York Stock Exchange under the symbols “SB”, “SB.PR.C”, and “SB.PR.D”, respectively. This public listing underscores Safe Bulkers’ commitment to transparency and investor engagement.
In its announcement, Safe Bulkers also included forward-looking statements regarding its growth strategy and future vessel acquisitions. While the company believes these expectations are reasonable, it cautioned that actual results may differ due to various risks and uncertainties. These include fluctuations in demand for dry-bulk vessels, competitive market conditions, and potential disruptions from geopolitical events or natural disasters.
Funding awarded to realise five hydrogen-powered dry-bulk newbuilds
Risks and Future Outlook
The company has acknowledged several factors that could impact its future performance. These include changes in time charter equivalent (TCE) rates, fuel prices, and the overall stability of the banking sector. Additionally, the ongoing volatility in global markets and potential disruptions to shipping routes due to political events pose significant challenges.
Safe Bulkers has also highlighted the risks associated with vessel construction and other operational factors, which are detailed in its filings with the Securities and Exchange Commission. The company has made it clear that it does not intend to update or revise its forward-looking statements unless there are significant changes in expectations or circumstances.
As Safe Bulkers continues to navigate the complexities of the shipping industry, its recent sale of the MV Michalis H marks a pivotal step in its fleet renewal strategy, positioning the company for future growth and adaptation in a dynamic market.
