Q4 2015 - SAFE BULKERS · SB 2015 FULL YEAR SB Q4 2015 Peer 1 Peer 2 Peer 3 Peer 4 Peers average...
Transcript of Q4 2015 - SAFE BULKERS · SB 2015 FULL YEAR SB Q4 2015 Peer 1 Peer 2 Peer 3 Peer 4 Peers average...
Q4 2015
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Forward Looking Statements
This presentation contains forward-looking statements (as defined in Section 27A of the Securities ExchangeAct of 1933, as amended, and in the Section 21E of the Securities Act of 1934, as amended) concerning futureevents, the Company’s growth strategy and measures to implement such strategy, including expected vesselacquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,”“anticipates,” “hopes,” “estimates” and variations of such words and similar expressions are intended toidentify forward-looking statements. Although the Company believes that the expectations reflected in suchforward-looking statements are reasonable, no assurance can be given that such expectations will prove tohave been correct. These statements involve known and unknown risks and are based upon a number ofassumptions and estimates that are inherently subject to significant uncertainties and contingencies, many ofwhich are beyond the control of the Company. Actual results may differ materially from those expressed orimplied by such forward-looking statements. Factors that could cause actual results to differ materiallyinclude, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the marketin which the Company operates, risks associated with operations outside the United States and other factorslisted from time to time in the Company’s filings with the Securities and Exchange Commission. The Companyexpressly disclaims any obligations or undertaking to release any updates or revisions to any forward-lookingstatements contained herein to reflect any change in the Company’s expectations with respect thereto or anychange in events, conditions or circumstances on which any statement is based.
Management TeamPolys Hajioannou: Chairman and CEO Dr. Loukas Barmparis: President Konstantinos Adamopoulos: Chief Financial Officer Ioannis Foteinos: Chief Operating Officer
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Source: Thomson Reuters
Historical data BDI - Oil Brent Crude Prices
Current Market Outlook SynopsisBDI Baltic Dry Index at record low levels below 300 points. Lowest point ever.
Panamax AVG 4TC:
Present: $2,4k 2015 Average: $5,6k
Cape AVG4TC:
Present: $1,5k 2015 Average: $3,9k
Brent Crude: Traditionally correlated with shipping performance
Dramatic drop in 2nd Half 2015
Presently at about $30
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Source: Baltic Exchange
Cape & Panamax Asset Values
Current Market Outlook SynopsisCapesize
5-year old second hand vessels at the lowest prices over the past decade
Prices: Present: $22mill High: $154mill 12-year Average: $59mill
Panamax:
5-year old second hand vessels at the lowest prices over the past decade
Prices: Present: $12mill High: $91mill 12-year Average: $36mill
$0$10$20$30$40$50$60$70$80$90
$100$110$120$130$140$150$160$170
9/16/2003 9/16/2005 9/16/2007 9/16/2009 9/16/2011 9/16/2013 9/16/2015
Capesize
PanamaxIn m
il U
S$
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Source: Clarksons Platou DryBulk
Demand & Supply Developments
• Iron ore: Recovering Chinese housing market expected to retain the growth in iron ore imports reaching 7% in 2017.
• Coal: The outlook for demand for 2016 and 2017 depends on China’s intervention. Demand from India may restore the balance in coal demand.
• Grain: Seasonal exports of grains from East Coast South America during Q2 and Q3 of each year are expected to support panamax demand.
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103 94 86
184
35
-72-46
-25
-91 -104 -92
101102
-150
-100
-50
0
50
100
150
200
250
2012 2013 2014 2015 2016f 2017f
Demolistion Forecast
Demolished
Orderbook
Delivered
Delivery Forecast
326
244
159119
242
133
-130-67 -69 -90 -100 -103
11771
-200
-100
0
100
200
300
400
2012 2013 2014 2015 2016f 2017f
Cape fleet Panamax fleet
1.5%
-7.2%
-0.2%
3.5%
0.4%
-0.3%
7.2%
0.3%
2.1%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
Iron Ore Thermal Coal Grains
2015
2016E
2017E
Major Bulks Demand
Source: Morgan Stanley 5
SB - Best performer in the industry
8,770 $
5,600 $6,300 $
8,600 $9,500 $
7,500 $
$0
$2,000
$4,000
$6,000
$8,000
$10,000
SB (**) Peer 1 Peer 2 Peer 3 Peer 4 Peers Average
Time Charter Equivalent*
4,377 $ 4,072 $5,000 $ 4,700 $
5,500 $ 5,900 $ 5,275 $
1,153 $ 1,238 $
3,500 $
1,200 $900 $
1,600 $1,800 $
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
SB 2015 FULLYEAR
SB Q4 2015 Peer 1 Peer 2 Peer 3 Peer 4 Peers average
Daily Vessel Operating Expenses and Daily G&A*
Opex G&A
7,500 $
* Time charter equivalent rate, or TCE rate, represents charter revenues of all fleet less commissions and voyage expenses during a period divided by the number of available days during such period.** For SB, the figure presented is the actual for 2015. For peers, the figures presented are estimations for 2015 by Morgan Stanley. Source: Morgan Stanley.
SB TCE outperforms
Peers on average by
~ $1,270 daily
* For SB, Daily vessel operating expenses include the costs for crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance, statutory and classification expense, dry-docking, intermediate and special surveys and other miscellaneous items. Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. For SB, Daily general and administrative expenses include daily fixed and variable management fees and daily costs in relation to operation as a public company. Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. For SB, the figures presented are the actual for 2015. For peers ,the figures presented are estimations for 2015 by Morgan Stanley. Source: Morgan Stanley
SB outperforms peers by saving
on average ~$1,545 daily
SB daily OPEX (including Dry-Docking costs)
are the lowest in the industry
5,530 $
8,500 $
5,900 $6,400 $
7,075 $
5,310 $
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$11.1 $11.1
$34.3
$62.1
$133.2
$6.0 $6.0 $6.0 $3.0
$272.8
$5.0 $6.5$14.0
$24.8 $29.0
$72.2
$109.4
$260.9
$0
$40
$80
$120
$160
$200
$240
$280
2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
Repayment schedule of refinanced facilities on an annual basis (in US$ million)
OLD SCHEDULE NEW SCHEDULE
Data presented as of February 5, 2016, in US$ millions. The Company has refinanced or accepted term sheets, to amend certain credit and loan agreements, in an aggregateamount of $260.9 million, resulting in the extension of the tenor of these facilities, the reduction of the annual principal installments for the next 5 years, extending the balloonrepayment dates to 2021 and onwards.
Refinanced Debt Repayment schedules - Leverage
14
16
18
24
28
32
36
$17
$15 $15$17
$11
$9
$11
$0
$5
$10
$15
$20
$25
$30
$35
2009 2010 2011 2012 2013 2014 Q4 2015
Net debt per vessel in US$ million(*)
VESSELS NUMBER LEVERAGE PER VESSEL IN MIL ($)
(*) Data as of December 31, 2015. Net debt per vessel consists of total debt (including Liability directly associated with Asset held for sale) less cash, time deposits, restricted cash, andadvances for newbuilds ,divided by number of vessels “in the water” as of quarter end. Assumption: Contracted value of newbuilds equals market value.
Refinanced and amended credit
facilities of $260.9 million
Reduced annual principal installments
for the next 5 years
Pushed back balloon repayments to 2021
onwards
$11 million net debt per vessel for a
6 years average age of fleet
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Vessel Sales and Newbuild Novations
Sale of the Stalo2006-built Post-Panamax
$9.0 million sale price
Sale of the Kypros Unity2014-built Panamax
$20.0 million sale price
$16.7 million outstanding loan
Novation of Hull 1718Japanese Post-Panamax scheduled for H1 2019
$28.4 million remaining Capex
Novation under negotiation for Hull 1552
Japanese Kamsarmax scheduled for H1 2018
$28.8 million remaining Capex
Special Committee composed of the Board’s independent
members and advised by independent counsel
The 4 transactions were evaluated, negotiated and approvedby the Special Committee
Total effect of sale of Stalo and Kypros Unity and the novation of Hull 1718
i) $28.4 mil. Capex reductionii) $16.7 mil. indebtedness reductioniii) $12.3 mil. liquidity improvement
Special Committee obtained 2 appraisals for each of the 2 vessels and
2 Hulls. The sale and novation prices represent the higher of each of the 2
appraisals
Sale commissions of 1% payable to related party management company on
the 3 transactions have been waived.8
(1) Data as of February 24, 2015 and February 5, 2016, the issuance dates of the press release for the fourth quarter results for 2014 and 2015, respectively. (2) Cash, short-term time deposits(3) Short-term restricted cash and long-term restricted cash.(4) Available under existing revolving reducing credit facilities (RCF).(5) Undrawn committed loan and credit facilities .
Liquidity and Capex
$95.8 $91.7
$69.9
$20.3
$277.7
$62.7$52.6
$20.3
$135.6
$0
$40
$80
$120
$160
$200
$240
$280
2015 2016 2017 2018 Total
Capex schedule on an annual basis in US$ million
CAPEX 24.02.2015 CAPEX 5.2.2016
$118.1
$40.6
$119.9
$204.0
$482.6
$114.0
$19.9
$121.8
$255.7
$0
$100
$200
$300
$400
$500
Cash, Time deposits (2) Restricted cash (3) RCF (4) Undrawan loan and
credit facilities (5)Total Liquidity
Liquidity in US$ million
LIQUIDITY 24.02.2015 LIQUIDITY 5.2.2016
Contracted Revenue till 2018 not included in Liquidity
Gross proceeds of $29 million from the sale of 2 existing vessels
(Stalo & Kypros Unity) not included in Liquidity as of 5.2.2016
Capex reduced by $28.5 million due to novation of Hull 1718; Capex expanded until 2018 by
pushing back newbuild deliveries
Capex reduction of $28.8 million due to novation under negotiation of Hull 1552
not reflected as of 5.2.2016
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Summary of management actions to weather the market conditions
Sale of 2 vessels
$12.3 million increase of liquidity
$16.7 million reduction of indebtedness
Novation of 1 Hull$28.4 million reduction of Capex for Hull 1718
$28.8 million reduction of Capex for Hull 1552 upon agreement
Cost reduction initiativesand performance
$5,530 per day for Opex and G&A for 2015 translates to $1,545 daily
savings on average vs. peers
$8,770 TCE for 2015 translates to $1,270 daily outperformance on
average vs. peers
Initiatives and Company’s performance create value of about
$37.4 million in potential savings for 2016 for our Stockholders vs. peers
Refinancing and amendment of credit & loan facilities
$260.9 million refinanced and amended credit and loan facilities
Next 5 years of reduced annual principal installments
Delayed OrderbookCapex expanded until 2018 pushed
back newbuild deliveries
2021 onwards for pushed back balloon repayments
Leverage in compliance with covenants
$11 million net debt per vessel for a 6 years old average fleet age
Liquidity$134.4 million in Cash and
$121.8 million in committed loan facilities
Under negotiation for Novation of 1 Hull
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Financial Section
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$11,849
$8,251
$0
$10,000
$20,000
2014 2015
32.00
36.00
0
5
10
15
20
25
30
35
40
2014 2015
99.0% 94.7%
0%
50%
100%
2014 2015
2,9143,136
0
1,000
2,000
3,000
4,000
2014 2015
2,9443,312
0
1,000
2,000
3,000
4,000
2014 2015
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OWNERSHIP DAYS*
FLEET UTILIZATION*
AVERAGE NUMBER OF VESSELS IN PERIOD*
(*) For definition and reconciliation of operational highlights please refer to Slide 15
TIME CHARTER EQUIVALENT RATE*
OPERATING DAYS*in US$
2,9273,265
0
1,000
2,000
3,000
4,000
2014 2015
SELECTED QUARTERLY OPERATIONAL HIGHLIGHTS
AVAILABLE DAYS*
$18.3
$9.1
$0
$10
$20
$30
$40
2014 2015
$4.7
$-7.7 -$10
-$5
$0
$5
$10
2014 2015
$39.1
$29.9
$0
$10
$20
$30
$40
$50
2014 2015
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NET REVENUE
in million US$
ADJUSTED NET INCOME/LOSS (2)
ADJUSTED EBITDA (2)
(1) Non-Adjusted figures.(2) For definition and reconciliation of Adjusted Net Income, EPS and EBITDA please refer to Slide 13
DAILY OPEX
in million US$
ADJUSTED EPS (2)
in US$
DAILY G&A
in million US$
in million US$
in US$
………….. $-29.9 (1)
..…….…..... $-0.1 (1)
………………..$-13.1(1)
..…….….... $13.4 (1)
SELECTED QUARTERLY FINANCIAL HIGHLIGHTS
………………$-0.40 (1)
..…….….... $-0.04 (1)
$4,226 $4,072
$0
$1,000
$2,000
$3,000
$4,000
$5,000
2013 2014
$1,179.0 $1,238.0
$0
$500
$1,000
$1,500
2014 2015
$0.01
($0.13)-0.15
-0.05
0.05
0.15
2013 2014
Dividend Declaration on Series B Preferred Shares, Series C Preferred Shares and Series D Preferred Shares
The Series B, Series C and Series D Preferred Shares are traded on the New York Stock Exchange under the ticker symbolSB.PR.B, SB.PR.C and SB.PR.D, respectively.
In January 2016, the Company’s Board of Directors declared :
a cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (the“Series B Preferred Shares”) (NYSE: SB.PR.B) for the period from October 30, 2015 to January 29, 2016;
a cash dividend of $0.50 per share on its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (the“Series C Preferred Shares”) (NYSE: SB.PR.C) for the period from October 30, 2015 to January 29, 2016;
a cash dividend of $0.50 per share on its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (the“Series D Preferred Shares”) (NYSE: SB.PR.D) for the period from October 30, 2015 to January 29, 2016.
Each dividend was paid on February 1, 2016, to all shareholders of record as of January 25, 2016 of the Series B Preferred Sharesof the Series C Preferred Shares and of the Series D Preferred Shares, respectively.
This was the tenth consecutive cash dividend declared on the Company’s Series B Preferred Shares, the seventh cash dividenddeclared on its Series C Preferred Shares and the sixth cash dividend declared on its Series D Preferred Shares, since theircommencement of trading on the New York Stock Exchange.
COMPANY STOCK
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THANK YOU
Company Contact
Dr. Loukas Barmparis
President
Safe Bulkers, Inc.
Athens, Greece
Tel: +30 211 1888400
Fax: +30 211 1878500
E-mail: [email protected]
Investor Relations/Media Contact
Paul Lampoutis
Investor Relations Advisor
Capital Link Inc.
New York, USA
Tel: +1 (212) 661-7566
Fax:+1 (212) 661-7526
E-mail: [email protected]
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