GlobeNewswire Inc | Nov 11, 2020 04:05PM EST

November 11, 2020

MONACO, Nov. 11, 2020 (GLOBE NEWSWIRE) -- Safe Bulkers, Inc. (the Company) (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three and nine months period ended September 30, 2020.

Financial highlights In millionU.S. Dollars Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Nine Months Nine Monthsexcept per 2020 2019share dataNet Revenues 51.9 48.3 45.7 53.2 50.7 145.9 144.5 Net income/ 3.3 (13.9 ) (9.9 ) 3.6 5.2 (20.5 ) 12.5 (loss)Adjusted Netincome/(loss)^ 3.5 (13.3 ) (10.2 ) 3.5 5.9 (20.0 ) 13.2 1EBITDA^2 22.1 5.7 9.7 23.1 24.5 37.5 70.3 Adjusted 22.3 6.3 9.4 23.1 25.1 38.1 71.0 EBITDA ^2Earnings/(loss) per 0.00 (0.16 ) (0.12 ) 0.01 0.02 (0.29 ) 0.04 share basicand diluted^3Adjusted(loss)/earnings per 0.00 (0.16 ) (0.13 ) 0.01 0.03 (0.28 ) 0.04 share basicand diluted ^3 Average Daily results in U.S. DollarsTime charterequivalent 12,575 8,094 9,089 13,707 13,311 9,940 12,513 rate^4Daily vesseloperating 4,896 4,729 4,771 5,103 4,448 4,799 4,406 expenses^5Daily vesseloperatingexpensesexcluding 4,459 4,207 4,285 4,540 4,053 4,318 4,162 dry-dockingandpre-deliveryexpenses^6Daily generaland 1,418 1,374 1,371 1,414 1,363 1,388 1,368 administrativeexpenses^7 In million U.S. DollarsTotal Cash^8 106.7 118.8 109.3 120.1 87.0 Liquidity^9 109.7 119.8 145.7 178.0 87.0 Total Debt^10 608.9 625.4 605.2 601.0 563.8

1Adjusted Net income/(loss) is a non-GAAP measure. Adjusted Net income/(loss) represents Net income/(loss) before gain/(loss) on derivatives, early redelivery cost, loss on inventory valuation and gain/(loss) on foreign currency. See Table 4.

2EBITDA is a non-GAAP measure and represents Net (loss)/income plus net interest expense, tax, depreciation and amortization. See Table 4. Adjusted EBITDA is a non-GAAP measure and represents EBITDA before gain/(loss) on derivatives, early redelivery cost, loss on inventory valuation and, gain/(loss) on foreign currency. See Table 4.

3Earnings/(loss) per share and Adjusted Earnings/(loss) per share represent Net Income and Adjusted Net income less preferred dividend and mezzanine equity measurement divided by the weighted average number of shares respectively. See Table 4.

4Time charter equivalent rate, or TCE rate, represents charter revenues less commissions and voyage expenses divided by the number of available days. See Table 5.

5Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. See Table 5.

6Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery

expenses for the relevant period by ownership days for such period. See Table 5.

7Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. See Table 5.

8Total Cash represents Cash and cash equivalents plus Time deposits and Restricted cash.

9Liquidity represents Total Cash plus contracted undrawn borrowing capacity under revolving credit facilities and secured commitments including sale and lease back financing.

10Total Debt represents Long-term debt plus Current portion of long-term debt, net of deferred financing costs.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: ''Our financial performance gradually improved in parallel with the chartering market during the 3rd quarter. At the same time, we focused on developing a plan for renewing our fleet with modern designs that adhere to the new environmental regulations. Due to market uncertainties, we remain cautious and we believe that our liquidity position which exceeds $130 million provides us with the required flexibility.''

Update on COVID-19, company's actions and status

There has been a negative effect from the COVID-19 pandemic on the Company's results of operations and financial condition year to date, due to lower demand which resulted in relatively lower charter rates, and higher crew and related costs. Any future impact of COVID-19 on the Companys results of operations and financial condition and any long-term impact of the pandemic on the dry bulk industry, will depend on future developments, which are highly uncertain and cannot be predicted, including a potential second wave of the pandemic and any new potential restrictions imposed, new information which may emerge concerning the severity of the virus and/or actions taken to contain or treat its impact, as well as political implications that could further impact world trade and global growth.

The COVID-19 pandemic has had significant impact on the shipping industry and our seafarers as port lockdowns were imposed globally and certain ports that had opened have subsequently closed again for crew changes. The Company has worked extensively to find solutions focusing on effectively managing crew changes despite the ongoing travel restrictions imposed by governments around the world. The Company has also taken measures to protect its seafarers' and shore employees' health and well-being, keep its vessels sailing with minimal disruption to their trading ability, service its charterers and mitigate and address the risks, effects and impact of COVID-19 on our operations and financial performance.

At-the-market equity offering program

In August 2020, the Company filed a prospectus supplement with the Securities and Exchange Commission (SEC), under which it may offer and sell shares of its common stock (Shares) from time to time up to aggregate gross offering proceeds of $23.5 million through an at-the-market equity offering program (the ATM Program). As of November6, 2020, the Company had not offered to sell and has not sold any Shares under the ATM Program.

Chartering our fleetOur vessels are used to transport bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes. We intend to employ our vessels on both period time charters and spot time charters, according to our assessment of market conditions. Our customers represent some of the worlds largest consumers of marine drybulk transportation services. The vessels we deploy on period time charters provide us with visible and relatively stable cash flow, while the vessels we deploy in the spot market allow us to maintain our flexibility in low charter market conditions and provide an opportunity for a potential upside in our revenue when charter market conditions improve.

During the third quarter of 2020, we operated 42.00 vessels on average earning a TCE11 of $12,575 compared to 41.00 vessels earning a TCE of $13,311 during the same period in 2019. Our contracted employment profile is presented below in Table 1.

11Time Charter Equivalent (TCE) rate represents charter revenues net of commissions and voyage expenses divided by the number of available days.

Table 1: Contracted employment profile of fleet ownership days as of November6, 2020

2020 (remaining) 67 %2020 (full year) 95 %2021 26 %2022 19 %

The detailed employment profile is presented in Table 6. Scrubber benefit for scrubber fitted vessels is calculated on the basis of fuel consumption of heavy fuel oil and price differential between heavy fuel oil and compliant fuel cost for the specific voyage and is either presented as part of the daily charter hire in Table 6, or in cases where it can not be estimated is not part of the stated daily charter hire.

Orderbook and financing

In October 2020, the Company planning a gradual fleet renewal with modern vessels, entered into an agreement for the acquisition of a Japanese-built, dry-bulk, Kamsarmax class, 82,000 dwt, newbuild vessel with a scheduled delivery within the first half of 2022. The vessel is designed to meet the latest requirements of Energy Efficiency Design Index to Green House Gas, GHG emissions, and 'EEDI Phase 3'. It will also comply with the latest NOx emissions regulation, NOx-Tier III.

At the same time, the Company entered into a sale and lease back through a bareboat charter agreement with a third party for 90% financing of this acquisition, minimizing impact on liquidity. The bareboat charter to be consummated upon delivery will have a duration of ten years with a purchase obligation at a predetermined price on termination and purchase options commencing three years following the commencement of the bareboat charter period in the Company's favor.

Liquidity

As of September 30, 2020, we had liquidity of $109.7 million, which included cash and cash equivalents, restricted cash and funds available under our unsecured revolving credit facility and no capital expenditure requirements in relation to newbuild vessels.

As of November6, 2020, we had liquidity of $136.0 million, which included cash and cash equivalents, restricted cash, funds available under our unsecured revolving credit facility and sale and lease back financing of the newbuild Kamsarmax class vessel and aggregate remaining capital expenditure in relation to the orderbook of $27.3 million.

Debt Profile - Leverage

As of September 30, 2020, our consolidated debt before deferred financing costs was $613.7 million and our consolidated leverage12 was 66% versus 68% as of June 30, 2020.

The loan repayment schedule of the Company as of September 30, 2020, is presented below in Table 2.

12Consolidated leverage is a non-GAAP measure and represents total consolidated liabilities divided by total consolidated assets. Total consolidated assets are based on the market value of all vessels owned or leased on a finance lease taking into account their employment, and the book value of all other assets. This measure assists our management and investors by increasing the comparability of our leverage from period to period.

Table 2: Loan repayment Schedule(in USD millions)

Ending December 31, 2020 2021 2022 2023 2024 2025 2026 2027 TotalSeptember 30, 2020 11.2 72.4 113.6 120.0 171.9 66.8 16.2 41.6 613.7

Interest rate derivatives

During the third quarter of 2020, the Company entered into eleven pay-fixed, receive-variable interest rate derivative contracts commencing in the third quarter of 2020 with maturities ranging from August 2024 to August 2025 and at fixed rates ranging from 0.322% to 0.40% for an aggregate notional amount of $107.0 million. As of September 30, 2020, the aggregate notional amount of interest rate derivative contracts entered into by the Company was $244.6 million or about 40% of the aggregate debt outstanding as of that point in time.

Environmental Social Responsibility - Environmental investments

In the context of our Environmental Social Responsibility policies, the Company is undertaking environmental investments mainly in scrubbers and ballast water treatment systems. As of September 30, 2020, the Company has completed the installation of 20 scrubbers and continues the project of retrofitting BWTS in all vessels of the Company's fleet, having installed 30 systems to date. The aggregate cost of our environmental investments as of quarter end was $66.7 million.

The scheduled number and estimated down-time days for dry-dockings and environmental investments as of September 30, 2020 for the subsequent two quarters, is presented in Table 3.

Table 3: Scheduled number and estimated down-time for dry-dockings and environmental investments.

Down time in Days Q4 2020 Q1 2021Number of vessels 2* 2*Total down time 20 40

* Partial completion.

Dividend Policy

The Company has not declared a dividend on the Companys common stock for the third quarter of 2020. The Company had 102,174,594 shares of common stock issued and outstanding as of November6, 2020.

The aggregate cash dividend of $0.50 per share declared by the Company on each of its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.C) and 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares (NYSE: SB.PR.D) for the period from July 30, 2020 to October 29, 2020, which was paid on October 30, 2020 to the respective shareholders of record as of October 22, 2020, was $2.75 million.

A Companys subsidiary declares a cash dividend on a quarterly basis on each of its 2.95% Series A Cumulative Redeemable Perpetual Preferred Shares (Series A shares) to the respective shareholders of record, presented under the caption Mezzanine Equity in the condensed consolidated balance sheets. The aggregate cash dividend declared for the Series A shares for the period from July 1, 2020 to September 30, 2020, which was paid on September 30, 2020, was $0.1 million. The aggregate cash dividend to be declared for the Series A shares for the period from October 1, 2020 to December 31, 2020, payable on December 31, 2020, is $0.1 million.

The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Companys earnings, financial condition and cash requirements and available sources of liquidity; (ii) decisions in relation to the Companys growth and leverage strategies; (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends; (iv) restrictive covenants in the Companys existing and future debt instruments; and (v) global economic and financial conditions.

Conference Call

On Thursday, November12, 2020 at 9:30 A.M. Eastern Time, the Companys management team will host a conference call to discuss the Companys financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote Safe Bulkers to the operator.

A telephonic replay of the conference call will be available until November 19, 2020 by dialing 1 (866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 1859591#

Slides and Audio Webcast

There will also be a live, and then archived, webcast of the conference call, available through the Companys website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Third Quarter 2020 Results

During the third quarter of 2020, we operated in a relatively weaker charter market environment compared to the same period in 2019. This is reflected in our reduced TCE of $12,575 for the third quarter of 2020, compared to $13,311 during the same period in 2019. Net revenues were supported by the increased earnings from scrubber fitted vessels notwithstanding the reduced price differential between heavy fuel oil and compliant fuels, due to low fuel cost environment, and by revenue contributed by the newbuild vessel delivered to us in April 2020. Voyage expenses increased due to increased vessel repositioning expenses, higher loss on bunkers sales due to low fuel cost environment and consumption costs for scrubber fitted vessels as explained below. As a result of the above, the net income for the third quarter of 2020, reached $3.3 million compared to net income of $5.2 million during the same period in 2019. In more detail, the change in net income resulted from the following main factors:

Net revenues: Net revenues increased by 2% to $51.9 million for the third quarter of 2020, compared to $50.7 million for the same period in 2019, assisted mainly by the additional revenues earned by our scrubber fitted vessels and the additional vessel delivered in 2020, partially offset by the reduced TCE.

Voyage expenses: Voyage expenses increased to $5.1 million for the third quarter of 2020 compared to $3.6 million for the same period in 2019, as a result of increased vessel repositioning expenses, higher loss on bunkers sales and bunker consumption costs for scrubber fitted vessels under charter agreements which provide for variable consideration based on the bunker consumption.

Vessel operating expenses: Vessel operating expenses increased by 13% to $18.9 million for the third quarter of 2020 compared to $16.8 million for the same period in 2019, mainly as a result of: i) spares, stores and provisions of $4.0 million for the third quarter of 2020, compared to $3.1 million for the same period in 2019, ii) repairs and maintenance of $3.2 million for the third quarter of 2020, compared to $2.4 million for the same period in 2019, iii) crew wages and related costs of $9.0 million for the third quarter of 2020 compared to $8.3 million for the same period in 2019, and iv) dry docking expense of $1.7 million related to four fully and one partially completed dry dockings during the third quarter of 2020, compared to $1.5 million related to four fully and three partially completed dry dockings for the same period of 2019, offset by the reduction in lubricants of $0.9 million for the third quarter of 2020, compared to $1.2 million for the same period in 2019. The Company expenses dry-docking and pre-delivery costs as incurred, which costs may vary from period to period. Excluding dry-docking and pre-delivery costs of $1.7 and $1.5 million for the third quarter of 2020 and 2019, respectively, vessel operating expenses increased by 13% to $17.2 million for the third quarter of 2020 compared to $15.3 million for the same period in 2019, due to completed drydockings affecting costs of spares and repairs and maintenance and increased crew repatriation and travel expenses due to COVID-19. Dry-docking expense is related to the number of dry-dockings in each period and pre-delivery expenses to the number of vessel deliveries and second hand acquisitions in each period. Certain other shipping companies may defer and amortize dry-docking expense and many do not include dry-docking expenses within vessel operating expenses costs and present these separately.

Depreciation: Depreciation increased by 9% to $13.8 million for the third quarter of 2020, compared to $12.7 million for the same period in 2019, as a result of the commencement of depreciation of environmental investmentsthat were completed following the third quarter of 2019 and depreciation of the newbuild delivered during the previous quarter.

Interest expense Interest expense decreased to $4.6 million in the third quarter of 2020 compared to $6.6 million for the same period in 2019, as a result of the decreased USD LIBOR13 affecting the weighted average interest rate of our loans and credit facilities.

Daily vessel operating expenses14: Daily vessel operating expenses, calculated by dividing vessel operating expenses by the ownership days of the relevant period, increased by 10% to $4,896 for the third quarter of 2020 compared to $4,448 for the same period in 2019. Daily vessel operating expenses excluding dry-docking and pre-delivery expenses increased by 10% to $4,459 for the third quarter of 2020 compared to $4,053 for the same period in 2019.

Daily general and administrative expenses14: Daily general and administrative expenses, which include management fees payable to our Managers15 and daily company administrations expenses, increased by 4% to $1,418 for the third quarter of 2020, compared to $1,363 for the same period in 2019, as a result of increased company administration expenses.

13London interbank offered rate.

14See Table 5.

15Safety Management Overseas S.A. and Safe Bulkers Management Limited, each of which is a related party that is referred to in this press release as our Manager and collectively our Managers.

Unaudited Interim Financial Information and Other Data

SAFE BULKERS, INC.CONDENSEDCONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(In thousands of U.S. Dollars except for share and per share data)

Three-Months Period Ended Nine-Months Period Ended September 30, September 30, 2019 2020 2019 2020REVENUES: Revenues 52,927 53,992 150,971 151,632 Commissions (2,213 ) (2,059 ) (6,457 ) (5,703 ) Net revenues 50,714 51,933 144,514 145,929 EXPENSES: Voyage (3,581 ) (5,080 ) (8,664 ) (36,866 ) expensesVesseloperating (16,776 ) (18,917 ) (49,320 ) (54,716 ) expensesDepreciation (12,669 ) (13,829 ) (37,375 ) (40,395 ) General andadministrative (5,140 ) (5,480 ) (15,307 ) (15,825 ) expensesLoss frominventory (348 ) ? (348 ) ? valuationEarlyredelivery (63 ) ? (63 ) ? costOperating 12,137 8,627 33,437 (1,873 ) income/(loss)OTHER(EXPENSE) / INCOME: Interest (6,634 ) (4,608 ) (20,641 ) (16,900 ) expenseOther finance (95 ) (108 ) (212 ) (467 ) cost Interest 410 44 1,230 563 incomeLoss on ? (272 ) ? (1,009 ) derivativesForeigncurrency (213 ) 57 (295 ) 491 (loss)/gainAmortizationand write-offof deferred (358 ) (429 ) (1,035 ) (1,324 ) financechargesNet income/ 5,247 3,311 12,484 (20,519 ) (loss)Less Preferred 2,875 2,876 8,620 8,622 dividendLess Mezzanineequity ? 360 304 495 measurementNet income/(loss)available to 2,372 75 3,560 (29,636 ) commonshareholdersEarnings/(loss)per 0.02 0.00 0.04 (0.29 ) share basicand dilutedWeightedaverage number 101,279,564 102,160,308 101,367,866 102,762,932 of shares

Nine-Months Period Ended September 30, 2019 2020(In millions of U.S. Dollars) CASH FLOW DATA Net cash provided by operating activities 39.9 34.2 Net cash provided by/(used in) investing 1.4 (35.5 ) activitiesNet cash used in financing activities (23.6 ) (8.1 ) Net increase/(decrease) in cash and cash 17.7 (9.4 ) equivalents

SAFE BULKERS, INC.CONDENSEDCONSOLIDATED BALANCE SHEETS (UNAUDITED)(In thousands of U.S. Dollars)

December 31, 2019 September 30, 2020ASSETS Cash, time deposits, and restricted 106,378 89,535 cashOther current assets 29,611 22,238 Vessels, net 944,706 962,686 Advances for vessels 19,294 609 Restricted cash non-current 13,701 17,155 Other non-current assets 953 681 Total assets 1,114,643 1,092,904 LIABILITIES AND EQUITY Current portion of long-term debt 64,054 68,291 Other current liabilities 22,730 20,865 Long-term debt, net of current portion 536,995 540,562 Other non-current liabilities 922 5,226 Mezzanine equity 17,200 17,567 Shareholders? equity 472,742 440,393 Total liabilities and equity 1,114,643 1,092,904

TABLE 4 RECONCILIATION OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA AND ADJUSTED EARNINGS/(LOSS) PER SHARE

Three-Months Period Ended Nine-Months Period Ended September 30, September 30,(Inthousands ofU.S. Dollarsexcept for 2019 2020 2019 2020share andper sharedata)Net Income/(Loss) -Adjusted Net Income/(Loss)Net Income/ 5,247 3,311 12,484 (20,519 ) (Loss)Plus Loss on ? 272 ? 1,009 derivativesPlus Foreigncurrency 213 (57 ) 295 (491 ) loss/(gain)Plus EarlyRedelivery 63 ? 63 ? costPlus Loss oninventory 348 ? 348 ? valuationAdjusted netincome/ 5,871 3,526 13,190 (20,001 ) (loss)EBITDA -Adjusted EBITDANet income/ 5,247 3,311 12,484 (20,519 ) (loss)Plus NetInterest 6,224 4,564 19,411 16,337 expensePlus 12,669 13,829 37,375 40,395 DepreciationPlusAmortizationandwrite-off of 358 429 1,035 1,324 deferredfinancechargesEBITDA 24,498 22,133 70,305 37,537 Plus EarlyRedelivery 63 ? 63 ? costPlus Loss oninventory 348 ? 348 ? valuationPlus Loss on ? 272 ? 1,009 derivativesPlus Foreigncurrency 213 (57 ) 295 (491 ) loss/(gain)ADJUSTED 25,122 22,348 71,011 38,055 EBITDAEarnings per shareNet income/ 5,247 3,311 12,484 (20,519 ) (loss)LessPreferred 2,875 2,876 8,620 8,622 dividendLessMezzanineequity ? 360 304 495 measurementadjustmentNet income/(loss)available to 2,372 75 3,560 (29,636 ) commonshareholdersWeightedaverage 101,279,564 102,160,308 101,367,866 102,762,932 number ofsharesEarnings/(Loss) per 0.02 0.00 0.04 (0.29 ) shareAdjustedEarnings/ (Loss) pershareAdjusted NetIncome/ 5,871 3,526 13,190 (20,001 ) (Loss)LessPreferred 2,875 2,876 8,620 8,622 dividendLessMezzanine ? 360 304 495 measurementadjustmentAdjusted Netincome/(loss) 2,996 290 4,266 (29,118 ) available tocommonshareholdersWeightedaverage 101,279,564 102,160,308 101,367,866 102,762,932 number ofsharesAdjustedEarnings/ 0.03 0.00 0.04 (0.28 ) (loss) pershare

EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP.- EBITDA represents Net income before interest, income tax expense, depreciation and amortization.- Adjusted EBITDA represents EBITDA before loss on inventory valuation, gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency.- Adjusted Net income/(loss) represents Net income/(loss) before loss on inventory valuation, gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency.- Adjusted earnings/(loss) per share represents Adjusted Net income/(loss) less preferred dividend divided by the weighted average number of shares.- EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings per share are used as supplemental financial measures by management and external users of financial statements, such as investors, to assess our financial and operating performance. The Company believes that these non-GAAP financial measures assist our management and investors by increasing the comparability of our performance from period to period. The Company believes that including these supplemental financial measures assists our management and investors in (i) understanding and analyzing the results of our operating and business performance, (ii) selecting between investing in us and other investment alternatives and (iii) monitoring our financial and operational performance in assessing whether to continue investing in us. The Company believes that EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share are useful in evaluating the Companys operating performance from period to period because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, the calculation of Adjusted EBITDA generally further eliminates the effects from loss on sale of assets, gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. Furthermore, the calculation of Adjusted Net income/(loss) generally eliminates the effects of loss on sale of assets, gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency, items which may vary from year to year and for different companies for reasons unrelated to overall operating performance. EBITDA, Adjusted EBITDA, Adjusted Net income and Adjusted earnings per share have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Companys results as reported under US GAAP. EBITDA, Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings per share, should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share, are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. In evaluating Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA, Adjusted Net income/(loss) and Adjusted earnings/(loss) per share should not be construed as an inference that our future results will be unaffected by the excluded items.

TABLE 5: FLEET DATA AND AVERAGE DAILY INDICATORS

Three-Months Period Ended Nine-Months Period Ended September 30, September 30, 2019 2020 2019 2020FLEET DATA Number ofvessels at 41 42 41 42 period?s endAverage age offleet (in 9.08 9.86 9.08 9.86 years)Ownership days^ 3,772 3,864 11,193 11,402 (1)Available days 3,541 3,726 10,857 10,972 ^(2)Average numberof vessels in 41.00 42.00 41.00 41.77 the period^ (3)AVERAGE DAILY RESULTSTime charterequivalent rate $ 13,311 $ 12,575 $ 12,513 $ 9,940 ^ (4)Daily vesseloperating $ 4,448 $ 4,896 $ 4,406 $ 4,799 expenses ^(5)Daily vesseloperatingexpensesexcluding $ 4,053 $ 4,459 $ 4,162 $ 4,318 dry-docking andpre-deliveryexpenses ^(6)Daily generaland $ 1,363 $ 1,418 $ 1,368 $ 1,388 administrativeexpenses^ (7)TIME CHARTEREQUIVALENT RATE RECONCILIATION(In thousandsof U.S. Dollarsexcept foravailable days and Timecharterequivalentrate)Revenues $ 52,927 $ 53,992 $ 150,971 $ 151,632 Less (2,213 ) (2,059 ) (6,457 ) (5,703 ) commissionsLess voyage (3,581 ) (5,080 ) (8,664 ) (36,866 ) expensesTime charterequivalent $ 47,133 $ 46,853 $ 135,850 $ 109,063 revenueAvailable days 3,541 3,726 10,857 10,972 ^(2)Time charterequivalent rate $ 13,311 $ 12,575 $ 12,513 $ 9,940 ^(4)

_____________

(1) Ownership days represents the aggregate number of days in a period during which each vessel in our fleet has been owned by us. (2) Available days represents the total number of days in a period during which each vessel in our fleet was in our possession, net of off-hire days associated with scheduled maintenance, which includes major repairs, drydockings, vessel upgrades or special or intermediate surveys. (3) Average number of vessels in the period is calculated by dividing ownership days in the period by the number of days in that period. (4) Time charter equivalent rate, or TCE rate, represents our charter revenues less commissions and voyage expenses during a period divided by the number of available days during such period. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on period time charters and spot time charters with daily earnings generated by vessels on voyage charters, because charter rates for vessels on voyage charters are generally not expressed in per day amounts, while charter rates for vessels on period time charters and spot time charters generally are expressed in such amounts. We have only rarely employed our vessels on voyage charters and, as a result, generally our TCE rates approximate our time charter rates. (5) Daily vessel operating expenses are calculated by dividing vessel operating expenses for the relevant period by ownership days for such period. Vessel operating expenses include crewing, insurance, lubricants, spare parts, provisions, stores, repairs, maintenance including dry-docking, statutory and classification expenses and other miscellaneous items. (6) Daily vessel operating expenses excluding dry-docking and pre-delivery expenses are calculated by dividing vessel operating expenses excluding dry-docking and pre-delivery expenses for the relevant period by ownership days for such period. Dry-docking expenses include costs of shipyard, paints and agent expenses and pre-delivery expenses include initially supplied spare parts, stores, provisions and other miscellaneous items provided to a newbuild or second hand acquisition prior to their operation. (7) Daily general and administrative expenses are calculated by dividing general and administrative expenses for the relevant period by ownership days for such period. Daily general and administrative expenses include daily management fees payable to our Managers and daily company administration expenses.

Table 6: Detailed fleet and employment profile as of November6, 2020

Vessel Year Country of Charter Charter CommissionsName Dwt Built Construction Type Rate ^2 ^ 3 Charter Period ^4 ^1CURRENT FLEET Panamax Maria 76,000 2003 Japan Period $ 9,349 5.00 % February December 2020 2020Koulitsa 76,900 2003 Japan Period $ 11,000 5.00 % November November 2020 2020Paraskevi 74,300 2003 Japan Spot $ 10,734 5.00 % October November 2020 2020Vassos 76,000 2004 Japan Spot $ 11,000 5.00 % October November 2020 2020Katerina 76,000 2004 Japan Spot $ 7,925 5.00 % March November 2020 2020Maritsa 76,000 2005 Japan Period $ 7,445 5.00 % October November 2020 2020Efrossini 75,000 2012 Japan Spot $ 12,204 5.00 % September December 2020 2020Zoe ^10 75,000 2013 Japan Spot $ 11,650 5.00 % September April 2020 2021Kypros $ 13,800 3.75 % August AugustLand ^10 , 77,100 2014 Japan Period 2020 202215 BPI 82 5TC * 3.75 % August August 97% - $2,150 2022 2025Kypros Sea $ 13,800 3.75 % July 2020 July 2022^15 77,100 2014 Japan Period BPI 82 5TC * 3.75 % July 2022 July 2025 97% - $2,150Kypros $ 11,750 3.75 % August AugustBravery^ 78,000 2015 Japan Period 2020 202213 BPI 82 5TC * 3.75 % August August 97% - $2,150 2022 2025 $ 11,750 3.75 % August AugustKypros Sky 77,100 2015 Japan Period 2020 2022^8 , 13 BPI 82 5TC * 3.75 % August August 97% - $2,150 2022 2025Kypros $ 11,750 3.75 % July 2020 July 2022Loyalty^ 78,000 2015 Japan Period BPI 82 5TC * 3.75 % July 2022 July 202513 97% - $2,150Kypros $ 13,800 3.75 % July 2020 July 2022Spirit^ 8, 78,000 2016 Japan Period BPI 82 5TC * 3.75 % July 2022 July 202515 97% - $2,150Kamsarmax Pedhoulas 82,300 2006 Japan Spot $ 12,250 5.00 % September NovemberMerchant 2020 2020Pedhoulas 82,300 2006 Japan Period $ 10,859 5.00 % October NovemberTrader 2020 2020Pedhoulas 82,300 2007 Japan Spot $ 12,200 5.00 % October NovemberLeader 2020 2020Pedhoulas 83,700 2008 Japan Period $ 9,950 5.00 % June 2019 May 2021CommanderPedhoulas 81,600 2012 China Spot ^ $ 11,550 5.00 % October DecemberBuilder 12 2020 2020Pedhoulas 81,600 2012 China Spot^ $ 10,196 5.00 % September NovemberFighter 12 2020 2020Pedhoulas 81,600 2012 China Spot ^ $ 13,200 5.00 % October DecemberFarmer^ 5 11 2020 2020Pedhoulas 82,000 2015 China Spot^ $ 10,224 5.00 % September NovemberCherry 12 2020 2020Pedhoulas 82,000 2017 China Spot^12 $ 15,000 5.00 % August DecemberRose^ 5 2020 2020Pedhoulas Spot $ 13,000 3.75 % August May 2021Cedrus 82,000 2017 China 2020 Period $ 13,000 3.75 % May 2021 May 2021Post-Panamax Marina 87,000 2006 Japan Spot^12 $ 11,750 5.00 % November December 2020 2020Xenia 87,000 2006 Japan Spot^12 $ 11,620 5.00 % September November 2020 2020Sophia 87,000 2007 Japan Eleni 87,000 2008 Japan Spot^12 $ 10,169 5.00 % October December 2020 2020Martine 87,000 2009 Japan Spot^12 $ 11,900 5.00 % November December 2020 2020Andreas K 92,000 2009 South Korea Panayiota 92,000 2010 South Korea Spot ^ $ 5,613 5.00 % October NovemberK ^9 12 2020 2020Agios Spot^ November DecemberSpyridonas 92,000 2010 South Korea 11 $ 12,100 5.00 % 2020 2020^9Venus Spot ^ November JanuaryHeritage ^ 95,800 2010 Japan 12 $ 21,442 5.00 % 2020 202110Venus November DecemberHistory^ 95,800 2011 Japan Spot^12 $ 11,500 5.00 % 2020 202010Venus 95,800 2012 Japan Spot^12 $ 8,850 5.00 % June 2020 NovemberHorizon 2020Troodos 85,000 2016 Japan Spot^18 $ 2,275 5.00 % October DecemberSun ^11 2020 2020Troodos 85,000 2016 Japan Spot^12 $ 10,500 5.00 % November DecemberAir 2020 2020Troodos 85,000 2020 Japan Spot 109% BPI-82 5.00 % June 2020 May 2021Oak^ 14 5TCCapesize Mount BCI*103.5%+80% AprilTroodos ^ 181,400 2009 Japan Period SCR BNFT 5.00 % 2020 June 202116Kanaris 178,100 2010 China Period $ 25,928 5.00 % September September ^6 2011 2031Pelopidas 176,000 2011 China Period $ 38,000 5.00 % January January 2012 2022Lake 181,400 2014 Japan Period^ $ 24,810 5.00 % January JanuaryDespina 7 2014 2024TOTAL 3,862,000 OrderbookTBN^17 82,000 1H Japan 2022

(1) For existing vessels, the year represents the year built. For any newbuilds, the date shown reflects the expected delivery dates.(2) Quoted charter rates are the recognized daily gross charter rates. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, the recognized gross dailycharter rate represents the weighted average gross daily charter rate over the duration of the applicable charter period or series of charter periods, as applicable. In the case of a charter agreement thatprovides for additional payments, namely ballast bonus to compensate for vessel repositioning, the gross daily charter rate presented has been adjusted to reflect estimated vessel repositioning expenses.Gross charter rates are inclusive of commissions. Net charter rates are charter rates after the payment of commissions. In the case of voyage charters, the charter rate represents revenue recognized on apro rata basis over the duration of the voyage from load to discharge port less related voyage expenses. (3) Commissions reflect payments made to third-party brokers or our charterers.(4) The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of November6, 2020, the scheduled start dates. Actual start dates and redelivery dates maydiffer from the referenced scheduled start and redelivery dates depending on the terms of the charter and market conditions and does not reflect the options to extend the period time charter.(5) MV Pedhoulas Farmer and MV Pedhoulas Rose were sold and leased back, in 2015 and 2017, respectively, on a bareboat charter basis for a period of 10 years, with a purchase obligation at the end of thebareboat charter period and purchase options in favor of the Company after the second year of the bareboat charter, at annual intervals and predetermined purchase prices.(6) Charterer agreed to reimburse us for part of the cost of the scrubbers and BWTS to be installed on the vessel, which is recorded by increasing the recognized daily charter rate by $634 over the remainingtenor of the time charter party.(7) A period time charter of 10 years at a gross daily charter rate of $23,100 for the first two and a half years and of $24,810 for the remaining period. In January 2017, the period time charter was amendedto reflect substitution of the initial charterer with its subsidiary guaranteed by the initial charterer and changes in payment terms; all other period charter terms remained unchanged. The charter agreementgrants the charterer the option to purchase the vessel at any time beginning at the end of the seventh year of the period time charter period, at a price of $39.0 million less 1.00% commission, decreasingthereafter on a pro-rated basis by $1.5 million per year. The Company holds a right of first refusal to buy back the vessel in the event that the charterer exercises its option to purchase the vessel andsubsequently offers to sell such vessel to a third party. The charter agreement also grants the charterer an option to extend the period time charter for an additional twelve months at a time at a gross dailycharter rate of $26,330, less 1.25% total commissions, which option may be exercised by the charterer a maximum of two times.(8) MV Kypros Sky and MV Kypros Spirit were sold and leased back in December 2019 on a bareboat charter basis for a period of eight years, with purchase options in favor of the Company commencingthree years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.(9) MV Panayiota K and MV Agios Spyridonas were sold and leased back in January 2020 on a bareboat charter basis for a period of six years, with purchase options in favor of the Company commencing threeyears following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.(10) MV Zoe, MV Kypros Land, MV Venus Heritage and MV Venus History were sold and leased back in November 2019, on a bareboat charter basis, one for a period of eight years and three for a period ofseven and a half years, with a purchase option in favor of the Company five years and nine months following the commencement of the bareboat charter period at a predetermined purchase price.(11) Scrubber benefit was agreed on the basis of fuel consumption of heavy fuel oil and the price differential between the heavy fuel oil and the compliant fuel cost for the voyage and is included on the dailygross charter rate presented.(12) Scrubber benefit was agreed on the basis of fuel consumption of heavy fuel oil and the price differential between the heavy fuel oil and the compliant fuel cost for the voyage and is not included on the dailygross charter rate presented.(13) A period time charter of 5 years at a daily gross charter rate of $11,750 for the first two years and a gross daily charter rate linked to the BPI-82 5TC times 97% minus $2,150, for the remaining period.(14) A period time charter of 11 to 13 months at a gross daily charter rate linked to the BPI-82 5TC times 109%.(15) A period time charter of 5 years at a daily gross charter rate of $13,800 for the first two years and a gross daily charter rate linked to the BPI-82 5TC times 97% minus $2,150, for the remaining period.(16) A period time charter at a gross daily charter rate linked to the Baltic Exchange Capesize Index (BCI'') times 103.5% plus 80% of scrubber benefit. (17) The newbuild vessel will be sold and leased back upon delivery in 1H 2022, on a bareboat charter basis for a period of ten years with a purchase option in favor of the Company three years following the commencement of the bareboat charter period and a purchase obligation at the end of the bareboat charter period, all at predetermined purchase prices.(18) A spot time charter which refers to a trip back to Atlantic.

About Safe Bulkers, Inc.

The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the worlds largest users of marine drybulk transportation services. The Companys common stock, series C preferred stock and series D preferred stock are listed on the NYSE, and trade under the symbols SB, SB.PR.C, and SB.PR.D, respectively.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1934, as amended, and in Section 21E of the Securities Act of 1933, as amended) concerning future events, the Companys growth strategy and measures to implement such strategy, including expected vessel acquisitions 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 to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, business disruptions due to natural disasters or other events, such as the recent COVID-19 pandemic, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Companys filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Companys expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Company Contact:Dr. Loukas BarmparisPresidentSafe Bulkers, Inc.Tel.: +30 21 11888400+357 25 887200E-Mail:directors@safebulkers.com

Investor Relations / Media Contact:Nicolas Bornozis, PresidentCapital Link, Inc.230 Park Avenue, Suite 1536New York, N.Y. 10169Tel.: (212) 661-7566Fax: (212) 661-7526E-Mail:safebulkers@capitallink.com