Safe Bulkers, Inc.

Thank you for standing by, ladies and gentlemen, and welcome to SAFE Bulker's conference call for the fourth quarter 2025 financial results. We have with us Mr. Poliz Hajiowanu, Chairman and Chief Executive Officer, Dr. Lucas Bumpires, President, and Mr. Konstantinos Adamopoulos, Chief Financial Officer of the company. At this time, all participants are in the listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. Following this conference call, if you need further information on the conference call or on the presentation, please contact Capital Link at 212-661-7566. I must advise you that this conference call is being recorded today. The archived webcast of the conference will soon be made available on SafeBulker's website, www.safebulkers.com. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from results projected from those forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the fourth quarter 2025 earnings release, which is available on the Safe Bookers website, again, www.safebookers.com. I would now like to turn the conference over to one of our speakers today, the chairman and CEO of the company, Mr. Police Hajiowanu. Please go ahead, sir.

Good morning to all. I'm Lucas Barbaris, President of SafeBikes, and I'm welcoming you to our quarterly results. During 2025, the drive-back market witnessed increased market volatility, declared a $0.05 per share dividend, rewarding our common shareholders. The company maintains a prudent balance between spot and time-shutter exposure, allowing it to capture market opportunities while preserving cash flow visibility and a strong capital structure, providing flexibility in our capital allocation. Following an comprehensive review of the forward-looking statements, and the supply-side dynamics in Flight 4. The driver fleet is projected to grow by about 3% in 2026 due to stable deliveries, with fleet growth estimated to be are suggested for the sailing speed. Asset prices remain elevated in line with the current trade market. Deciding but still remain low compared to historical levels. Currently, about 11 percent of ship capacity in the dry bulk order book will be ready to use alternative fuels upon delivery. And out of these ships, about half will use methanol, 36 percent LNG, and the remaining ammonia and hydrogen. However, the dual fuel order book remains small of the adoption of the global fuel standard by IMO may alter the path on decarbonization towards more pragmatic solutions. In a total order book of 20 phase 3 versions placed in 2020, we do have two dual fuel new briefs on order with deliveries by Q1 2027 hedging for the increasing more carbon intensity limits of the regulation after 2030 and the potential adoption of new regional or global regulations. Saint-Barthes Fleet now counts 12 Phase III vessels in the water, all delivered from 2022 onwards. In addition, 26 vessels have undergone environmental upgrades, and 11 vessels are echo, incorporating superior characteristics. Approximately 80% of our fleet is Japanese-built, compared to the global average of roughly 40%, underscoring our focus on quality and asset durability. We need also to underline the improved quality of our Chinese ships, which incorporate improvements in durability and fuel efficiency. Our average fleet age of 10.5 years is approximately 2.5 years younger than the global fleet, performance and regulatory compliance. Our commercial competitiveness will strengthen as we will be taking delivery of our remaining order book of eight Phase III vessels. By Q1 2029, Shade Biker Split will be comprised of 38 Phase III vessels, positioning us favorably terms. When we speak about supply, we need also to highlight not only the reduced trapping rate, but also the aging tribal fleet. 35% of which exceeds 15 years of age, and the increasing expectation of older vessels, which will be reflected on their, and the increasing inspection of older vessels, which will be reflected on their opus. Moving on to slide 5, we present an overview of the demand and basic commodities trade. The global GDP growth expectations for 2026 and 2027, as reflected in the IMF's January forecast, call for a growth around 3% in the coming years, accompanied by gradual control of inflationary pressures. BIMCO forecasts a global dry bulk demand growth of 2% to 3% in 2026, differences increasing by 0.5% to 1.5% annually, supporting ton-mile demand. Iron ore shipments expected to grow up to 1% in 2036 and similarly in 2027. Lower prices driven by increased export and output lower-grade domestic Chinese supply. However, high Chinese port inventories, plus 11% year-on-year, may soften import demand in the first half of 2026. Coal systems are projected to decline by 1-2% in 2026. The International Energy Agency expects global coal demand to fall by 1.4% between 2025 and 2027, with coal imports to fall by 1.5 percent, while India and Asian regions remain growth goals. Thermal cold is weakening. Cooking coal remains relatively resilient. Grains remain the strongest performing major bulk, with shipments estimated to grow by 5 to 6 percent in 2026. harvest in the U.S. and EU, Argentina, Russia, and Brazil, under big supply. However, China's policy pushed towards greater self-sufficiency, and the deep soya mill usage presents a downturn risk. Miner's bulk growth is expected at 3.5 to 4.5 percent in 2026. Energy transition-related ores remain supportive. though bauxite trade growth may moderate due to China's aluminum production cap. Fertilizer demand continues to expand, but at a slower pace. China remains a central string factor for dry bulk. The broader economy continues to increase, especially headwinds from a weak property sector, elevated inventories in key commodities, iron ore, coal, Still, demand in China is expected to weaken, though exports remain elevated despite tighter regulation. Domestic production policy and import substitution strategies, particularly in coal and grain, are the same key downsides to simple trade. Trade tensions between the U.S. and China, although truce has been reached, remain a key source. to contribute positively to the drive-back demand, with infrastructure investments playing a vital role. In Japan, following a decisive supermajority victory in February, snap elections, the Japanese government now holds significant political capital Summing up the supply-demand equilibrium in Flight 6, the supply growth is expected to marginally match demand for 2026. The trade market has shown strength during the fourth quarter of 2025 and continues to be healthy in early 2026. In relation to our Cape-sized class vessels, seven were chartered under period-time charters with an average remaining charter duration of 1.8 years and an average daily charter hire of 24,000 topping $130 million in contracted revenue backlog from CAPES alone. Moving to slide 8, we present an overview of our quarterly highlights. We have declared our 17th consecutive quarterly dividend of $0.05. It is having a 3.3% dividend yield. At the same time, our free cash flow finances our new build program. We maintain ample liquidity. 2 million and a comfortable leverage of 34 million, of 34%. We have 72.6 million of net revenues and we do have an active 10 million shares in the purchase program. In January, we placed order for two Gamsermax Phase 3 new builds and in February, we sold a 2012 Chinese built-in size class vessel. In slide 9, we present our return to shareholders of 89 million paid market fluctuations because of our track record, hazard management, and our overall business model. Concluding the company update in slide 10, we present our strong fundamentals. SafeBank is a drive-by company with 628 million market cap, 45,000 water, 1,274 million scrap value. They maintain significant firepower with 163 million gas, 220 million in drone RCFs, and 182 million burn capacity against our significant order book of eight new builds, mainly in Japanese CPUs. They focus on our majority Japanese built-in standards, complete energy efficiency, and lower CO2 taxation reflected in our CII rating of zero vessels, on the bottom categories of DNA. We maintain a young technologically advanced fleet, strong balance sheet, comfortable leverage, and low net debt per vessel of 8.4 million for a 10.4-year-old fleet. We have built a resilient business model with cash flow with the bid of 164 million in revenue backlog, hefty expansion for a sizable fleet that achieves scale, and a meaningful Thank you, Lucas, and good morning to everyone. During the fourth quarter of 2025, we operated in a slightly improved charter market environment compared to the same period in 2024, with increased revenues due to higher charter hires and slightly increased earnings from scrubber-fitted vessels. Moving on to slide 12 with our quarterly financial highlights for the fourth quarter of 2025 compared to the same period of 2024. Our adjusted EBITDA for the fourth quarter of 2025 stood at $37.4 million compared to $40.7 million for the same period in 2024. Our adjusted earnings per share for the third quarter of 2025 was $0.14, calculated on a weighted average number of 102.3 million shares and a weighted average number of 106.4 million shares. On the top graph, during the fourth quarter of 2025, we operated 45 vessels on average, earning an average time charge equivalent to $70,050, compared to 45.9 vessels on average, earning a TCE of $16,521 during the same period in 2024. Our daily vessel operating expenses increased by 13% to $5,683 for the fourth quarter of 2025, compared to $5,047 for the same period in 2024. 13 with a quick overview of our quarterly operational highlights for the fourth quarter of 2025, this compared to the same period of 2024. Now let's continue to slide 14 where we present our balance sheet analysis, noting that assets are presented in their book value. Strong liquidity and ample cash reserves provide significant financial flexibility to navigate market volatility. The company maintains a healthy balance sheet A capital structure positions the company for sustainable long-term growth and resilience. We conclude our presentation in slide 15, where we present our daily free cash flow for the 12th March of 2025, illustrating the company's ability to generate free cash flows, highlighting disciplined cost control and efficient vessel operations. I would like to highlight that based on financial performance, the Company's Board of Directors has declared a 5 cent dividend per common share. The Company is maintaining a healthy cash position of about $167 million as of February 13, another $218 million available in revolving credit facilities, giving a combined liquidity and capital resources of $385 million. We should also add the contracted revenue of $178 million. These underscores our capacity to support their service, reinvestment, and shareholder returns at the same time, which enables us to expand the fleet to the resilient company and create long-term prosperity for our shareholders. Thank you, and we are now ready for your questions.

Thank you. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question is from Clement Moyland with Value Investors Edge. Please proceed.

Hi, good afternoon and thank you for taking my questions. You've made a lot of leeway on the fleet renewal front in recent years, putting special emphasis on CancerMax new builds. When looking at your overall fleet, pro forma for the new build additions, the Cape Sage side does seem a tad older. Is there any appetite to renew it going forward? Or is new build and second-hand pricing difficult to justify based on your expectations?

Yes, good afternoon, good morning to you. The second-hand prices right now, they are getting higher, but the problem is the lack of suitable, available tonnets for sale. So there is no quality tonnets in second-hand market available for sale, no Japanese-built or even Chinese modern fleet, modern vessels available for sales. The reason being that market prospects look quite positive. We have a very strong Q4 and now a very strong Q1. And people are getting hold of their assets to ride the improved market. So the only option you have, a company at least like ours, that we need to have quality tonnage and we need to have a sustainable program for the future, is to look into shipyards. Also there the task is not easy because most of the shipyards are fully booked for 2028, so we have to go into 2029. for deliveries, and basically this is what we have done in the last quarter.

Yeah, that's helpful. Thank you. I also wanted to ask about the time charter market. Have you seen increasing appetite from charters for two- to three-year contracts on cancer maxis? And secondly, based on current quotes, Would you favor index-linked exposure or fixed coverage?

Yes. There's no interest for two or three-year contracts. The market is just starting its improvement, you know, the last couple of quarters. You have to remember last year was a very difficult year, especially the first quarter. tariffs, and it started from September 24, and it lasted up to July of 2025, when we saw that Trump administration was starting settling some of those issues with a few countries. So there were a good 10 months of depression in the market. When we start seeing improvement, I mean, the momentum has to gather pace, which is doing right now. We started now seeing better freight rates. And right now we could say that many charters can take 12-month period charters. In order to see two or three years, we need to have more of this visibility. We have to have this going forward. before charters appear for longer-term deals. So at the moment, I would say that you could easily fix, you know, six- to 12-month charters, but the longer charters will come only after we see sustained strength of the market. So the other question about index or fixed rate. Traditionally, we prefer a fixed rate. And sometimes we do index. You know, usually on a rising market, charters try to avoid index. They prefer fixed rate. We don't mind securing a good return with fixed rates. Right now there are one-year deals in the market approaching $18,000 or $19,000 a day. So this is a good level to start locking in a few sheets.

The 18,000 to 19,000 per day would be for eco and scrubber, right?

No, no scrubber. It would be for eco camsa maxis. Eco camsa maxis, they don't usually have scrubbers. Okay, perfect. Thank you. I'll turn it over. Sorry, go on. Scrubbers you find usually on cave-sized valkyries or vessels that they are burning over 25 tons of. to make worthwhile the investment. So the young ones that have built 14 or 15 tons, they don't...it's not viable to feed scrub on those. It's a very small consumption. Makes sense.

Thank you.

Thank you. As a reminder, this is Star 1 on your telephone keypad. If you would like to ask a question, we will pause for a brief moment to see if there's any further questions. With no further questions, I would like to hand the conference back over to management for closing remarks.

Thank you very much for attending this conference call about the last quarter of financial disaster 2025, and we're looking forward to discuss again with you in our next quarter results. Thank you very much, and have a good day.

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.