MONACO - Safe Bulkers, Inc. (NYSE:SB), a global marine drybulk transportation service provider, announced the expansion of its fleet with an agreement to acquire a new Kamsarmax class dry-bulk vessel. The 82,000 dwt ship, expected to be delivered in the fourth quarter of 2026, adheres to the latest international regulations for reducing greenhouse gas emissions and nitrogen oxide emissions, aligning with the company's strategy to operate one of the most environmentally efficient dry bulk fleets in the market.
The vessel is designed to meet the International Maritime Organization's (IMO) Energy Efficiency Design Index (EEDI) Phase 3 requirements and the NOx-Tier III emissions standard. This addition is part of a series of newbuild vessels in Safe Bulkers' orderbook that boast advanced energy efficiency features, leading to reduced fuel consumption.
The company has already integrated nine newbuild vessels that comply with the IMO GHG Phase 3 and NOx Tier III standards. With this latest agreement, Safe Bulkers' orderbook includes eight newbuild vessels, two of which will be powered by methanol dual fuel, with scheduled deliveries spanning from 2024 to 2027.
Dr. Loukas Barmparis, President of Safe Bulkers, commented on the acquisition, stating that the new order, with a relatively prompt delivery timeline, reflects the company's commitment to fleet renewal and environmental efficiency.
Safe Bulkers transports bulk cargoes such as grain, coal, and iron ore along international shipping routes. The company's common stock and preferred stocks are traded on the New York Stock Exchange under the ticker symbols SB, SB.PR.C, and SB.PR.D, respectively.
This announcement is based on a press release statement.
InvestingPro Insights
Safe Bulkers, Inc. (NYSE:SB) has been making strategic moves to expand and modernize its fleet, and the market has taken notice. A look at the real-time data from InvestingPro shows a company that's trading near its 52-week high, with a price percentage of 97.67% of this peak, highlighting investor confidence in its growth trajectory and fleet expansion strategy.
InvestingPro data also reveals that Safe Bulkers is trading at a low earnings multiple, with a P/E ratio of 8.22 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 9.1. This indicates that the stock may be undervalued compared to its earnings potential, which could attract value investors looking for opportunities in the shipping sector.
Moreover, the company's gross profit margin stands impressively at 61.23% for the last twelve months as of Q4 2023, which is a testament to its operational efficiency and ability to manage costs effectively in a volatile shipping industry.
For those interested in digging deeper, there are additional InvestingPro Tips that shed light on the company's financial health and market performance. For instance, Safe Bulkers operates with a significant debt burden, which is an important consideration for risk assessment. On the positive side, the management's aggressive share buyback strategy suggests confidence in the company's future. There are PRONEWS24 additional tips available on InvestingPro, which provide a comprehensive analysis of Safe Bulkers' financials and market position.
In summary, Safe Bulkers appears to be navigating the challenges of the shipping industry with a focus on environmental efficiency and fleet renewal. Investors may find the company's current valuation and market performance to be of interest, especially when considering the broader context provided by InvestingPro Tips and real-time data.
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