GlobeNewswire Inc | Feb 15, 2021 04:00PM EST

February 15, 2021

MONACO, Feb. 15, 2021 (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 twelve months period ended December 31, 2020.

Financial highlights In million Twelve TwelveU.S. Dollars Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Months Monthsexcept per 2020 2019share dataNet Revenues 52.2 51.9 48.3 45.7 53.2 198.2 197.8 Net income/ 7.6 3.3 (13.9 ) (9.9 ) 3.6 (12.9 ) 16.0 (loss)Adjusted Netincome/(loss)^ 7.7 3.5 (13.3 ) (10.2 ) 3.5 (12.3 ) 16.7 1EBITDA^2 26.2 22.1 5.7 9.7 23.1 63.7 93.5 Adjusted 26.3 22.3 6.3 9.4 23.1 64.3 94.1 EBITDA ^2Earnings/(loss) per 0.04 0.00 (0.16 ) (0.12 ) 0.01 (0.25 ) 0.04 share basicand diluted^3Adjustedearnings/(loss) per 0.04 0.00 (0.16 ) (0.13 ) 0.01 (0.24 ) 0.05 share basicand diluted ^3 Average Daily results in U.S. DollarsTime charterequivalent 12,319 12,575 8,094 9,089 13,707 10,559 12,805 rate^4Daily vesseloperating 3,978 4,896 4,729 4,771 5,103 4,591 4,582 expenses^5Daily vesseloperatingexpensesexcluding 3,955 4,459 4,207 4,285 4,540 4,226 4,257 dry-dockingandpre-deliveryexpenses^6Daily generaland 1,469 1,418 1,374 1,371 1,414 1,408 1,379 administrativeexpenses^7 In million U.S. DollarsTotal Cash^8 124.0 106.7 118.8 109.3 120.1 Liquidity^9 171.2 109.7 119.8 145.7 178.0 Total Debt^10 607.7 608.9 625.4 605.2 601.0

____________________________________________1 Adjusted 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 4.2 EBITDA is a non-GAAP measure and represents Net income/(loss) 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 4.3 Earnings/(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 4.4 Time charter equivalent rate, or TCE rate, represents 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 5.6 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. 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 5.8 Total Cash represents Cash and cash equivalents plus Time deposits and Restricted cash.9 Liquidity represents Total Cash plus contracted undrawn borrowing capacity under revolving credit facilities and secured commitments including sale and lease back financing.10 Total 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: ''Having a consistent strategy for fleet renewal and environmental upgrading, hands on operations and strong balance sheet, we believe we are well positioned to take advantage of a strengthening charter market.''

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 any potential third wave of the pandemic and any new potential restrictions imposed as a result of the virus, new information which may emerge concerning the severity of the virus and/or actions taken to contain or treat its impact, including distribution and effectiveness of the vaccines, as well as political implications that could further impact world trade and global growth.

The COVID-19 pandemic had significant impact on the shipping industry and our seafarers as port lockdowns were imposed globally in 2020 and certain ports that have since reopened have subsequently closed again for crew changes. The Company has worked extensively to find solutions focusing on effectively managing crew changes despite the ongoing port closures and 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 for up to aggregate gross offering proceeds of $23.5 million through an at-the-market equity offering program (the ATM Program). As of February12, 2021, the Company had not offered to sell and has not sold any Shares under the ATM Program.

Chartering our fleet

Our 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.

In December 2020, the Company agreed the early termination of an existing charter of the Capesize-class vessel MV Lake Despina, which was contractually due to expire in January 2024. In exchange for the early redelivery of the vessel, the charterer paid the Company cash compensation of about $8.1 million, 50% of which was received in December 2020, and the balance in January 2021. The vessel was redelivered in February 2021 and was subsequently deployed under a new period time charter with a different charterer for a duration of 12 to 14 months at a gross daily charter rate linked to the 5 TC Baltic Exchange Capesize Index ("BCI-180 5TC'') times 119%.

During the fourth quarter of 2020, we operated 42.00 vessels on average earning a TCE11 of $12,319 compared to 41.00 vessels earning a TCE of $13,707 during the same period in 2019. Our contracted employment profile is presented below in Table 1.

Table 1: Contracted employment profile of fleet ownership days as of February12, 2021

2021 (remaining) 43 %2021 (full year) 49 %2022 18 %2023 16 %

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 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

During the fourth quarter of 2020, the Company, as part of its plan to implement a gradual fleet renewal with modern, energy efficient vessels, entered into agreements for the acquisition of two Japanese dry-bulk newbuild vessels, one Kamsarmax class, 82,000 dwt and of one Post-Panamax class, 87,000 dwt, with scheduled deliveries within the first half of 2022 and the third quarter of 2022, respectively. The vessels are designed to meet the Phase 3 requirements of Energy Efficiency Design Index, (''EEDI Phase 3'') related to the mandatory reduction of green house gas emissions, as adopted by the International Maritime Organization, ("IMO") and also comply with the latest NOx emissions regulation, NOx-Tier III (IMO, MARPOL Annex VI, reg. 13).

Concurrently with the ordering of the newbuild vessels, the Company has concluded the financing arrangements: i) for the Kamsarmax newbuild, a sale and lease back through a ten-year bareboat charter agreement for 90% financing with a purchase obligation at a predetermined price on termination and purchase options after the third year in the Company's favor, and, ii) for the Post-Panamax newbuild, a new term loan facility of up to 60% post-delivery financing and an increase of the existing revolving credit facility from $20 million to $30 million, the maturity of which was extended from 2022, by up to 2 years.

Vessel sales and second hand acquisition

In the framework of fleet renewal the Company has entered into memoranda of agreements for the sale of two of its older vessels and for the acquisition of a 2011 second-hand Panamax.

____________________________________________11 Time Charter Equivalent (TCE) rate represents charter revenues net of commissions and voyage expenses divided by the number of available days.

During the last quarter of 2020, the Company made available for sale, a 2003-built, Panamax class, dry-bulk vessel, the Paraskevi. In January 2021, the Company signed an agreement for its sale at a price of $7.3 million before commissions with expected delivery date in March 2021. As of February 12, 2021, the respective outstanding loan balance of about $4.0 million, net of deferred finance charges, which was secured by the vessel, has been repaid. Upon consummation of the sale transaction, we expect that our debt will be decreased by $4.0 million and our liquidity will be increased by $3.2 million and expect to incur a non-cash loss on sale of asset in the approximate amount of $0.3 million.

During January 2021, the Company made available for sale a 2004-built, Panamax class, dry-bulk vessel, the Vassos, and signed an agreement for its sale at a price of $8.7 million before commissions. The respective outstanding loan balance of about $6.0 million, net of deferred finance charges, which is secured by the vessel, will be repaid prior to the expected conclusion of the sale in April 2021. Upon consummation of the sale transaction, we expect that our debt will be decreased by $6.0 million and our liquidity will be increased by $2.5 million and expect to incur a non-cash loss on sale of asset in the approximate amount of $1.0 million.

Upon consummation of both sale transactions, we expect that our debt will be decreased by $10.0 million in the aggregate and our net liquidity will be increased by $5.7 million in the aggregate.

In February 2021, the Company entered into an agreement for the acquisition of a Panamax class, 2011 Japanese-built, dry-bulk, 75,000 dwt at a price of $14.0 million before commissions, which will be funded from available cash. The vessel, which is sister-ship with two of the Company's existing vessels, is scheduled to be delivered within February 2021 and has been chartered for 11 to 14 months at a gross daily charter rate of $13,800.

Mezzanine equity redemption and financing

In February 2021, a Company's subsidiary issued a notice of redemption for all issued and outstanding shares of series A cumulative redeemable perpetual preferred stock, recorded as mezzanine equity (the "Mezzanine Equity") with a redemption price of approximately $18.1 million, including the accrued dividend. The Mezzanine Equity was issued in 2018 to a third party investor in relation to the financing of the then newbuild vessel Pedhoulas Cedrus. The redemption is expected to be completed within February. In addition, the Company entered into a sale and lease back of Pedhoulas Cedrus through a bareboat charter agreement with a purchase obligation at a predetermined price on termination and purchase options after the third year in the Company's favor. This agreement will be consummated concurrently with the share redemption. The net increase of our liquidity from this refinancing is expected to be $6.4 million.

Liquidity

As of December 31, 2020, we had liquidity of $171.2 million, which included cash and cash equivalents, time deposits, restricted cash and funds available under the sale and lease back agreements, new term loan agreement and the revolving credit facility. Our aggregate remaining capital expenditure requirements for the acquisition of the two newbuilds as of December 31, 2020, amounted to $52.0 million, of which $0.6 million is payable in 2021 and $51.4 million in 2022.

As of February12, 2021, we had liquidity of $184.3 million, which included cash and cash equivalents, time deposits, restricted cash and funds available under the sale and lease back agreements, new term loan agreement and the revolving credit facility. Our aggregate remaining capital expenditure requirements for the acquisition of the two newbuilds and the second hand vessel, which will be debt-free, were $64.0 million, of which $12.6 million is payable in 2021 and $51.4 million payable in 2022.

Debt Profile

As of December 31, 2020, our consolidated debt before deferred financing costs was $616.2 million. The loan repayment schedule of the Company as of December 31, 2020, is presented below in Table 2.

Table 2: Loan repayment Schedule(in USD millions)

Ending December 31, 2021 2022 2023 2024 2025 2026 2027 TotalDecember 31, 2020 81.3 118.7 119.7 171.9 66.8 16.2 41.6 616.2

Derivatives

During the fourth quarter of 2020, the Company entered into bunker fuel contracts for 36,000 tons for calendar 2021 and 24,000 tons for calendar 2022 to sell the spread differential between the price per ton of the 0.5% and 3.5% sulfur content fuel, with the objective of reducing the risk arising from a lower spread differential, which is related to the additional revenue from the operation of scrubbers in scrubber fitted vessels. In February 2021, the Company entered into bunker fuel contracts to sell the spread differential for another 12,000 tons for calendar 2022.

During 2020, the Company entered into forward freight agreements on the Panamax index for 80 days for Q1 2021 and 60 days for Q2 2021, with the objective of reducing the risk arising from the volatility in the charter rates.

During 2020, the Company entered into interest rate derivative contracts with the objective to reduce exposure from the fluctuation of interest rates. As of December 31, 2020, the aggregate notional amount of outstanding interest rate derivative contracts was $244.3 million or about 40% of the aggregate debt outstanding at that date.

Environmental Social Responsibility - Environmental investments

In the context of our Environmental Social Responsibility policies, the Company has completed the installation of 20 scrubbers and continues the retrofit of vessels with ballast water treatment systems. As of December 31, 2020, the Company has 30 vessels equipped with ballast water treatment systems. The aggregate cost paid as of the year end for our environmental investments was $67.2 million. In February 2021, the Company entered into an agreement for an additional scrubber installation in one of its Capesize class vessels during the fourth quarter of 2021.

As of December 31, 2020, the scheduled number and estimated down-time days for the subsequent two quarters, for dry-dockings and environmental investments is presented in Table 3.

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

Q1 2021 Q2 2021Number of vessels 1 3Total down time in days 55 80

Dividend Policy

The Company has not declared a dividend on the Companys common stock for the fourth quarter of 2020. The Company had 102,197,670 shares of common stock issued and outstanding as of February12, 2021.

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 October 30, 2020 to January 29, 2021, which was paid on February 1, 2021 to the respective shareholders of record as of January 22, 2021, was $2.75 million.

A Companys subsidiary declares a cash dividend on a quarterly basis on each of its Series A shares to the respective shareholders of such shares, 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 October 1, 2020 to December 31, 2020, which was paid on January 4, 2021, was $0.1 million. As previously mentioned, such Series A shares will be redeemed on February 25, 2021, together with dividend accrued up to such date, pursuant to a redemption notice issued in February 2021.

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 Tuesday, February16, 2021 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 February 24, 2021 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 Fourth Quarter 2020 Results

Statements of Operations

During the fourth quarter of 2020, we operated in a relatively weaker charter market environment with lower operating and interest expenses compared to the same period in 2019, while our revenues were partly supported by the additional earnings from scrubber fitted vessels, the operation of one additional newbuild vessel from April 2020 and reduced voyage expenses. The net effect is reflected in our reduced TCE of $12,319 for the fourth quarter of 2020, compared to $13,707 during the same period in 2019. The net income for the fourth quarter of 2020, amounted to $7.6 million compared to net income of $3.6 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 decreased by 2% to $52.2 million for the fourth quarter of 2020, compared to $53.2 million for the same period in 2019, mainly due to the reduced TCE rate because of a weaker market, partially offset by the additional revenues earned by our scrubber fitted vessels and the additional vessel delivered in 2020.

Voyage expenses: Voyage expenses decreased to $4.7 million for the fourth quarter of 2020 compared to $5.1 million for the same period in 2019, as a net effect of decreased vessel repositioning expenses and lower loss on bunkers sales and the inclusion in 2020 of 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 decreased by 20% to $15.4 million for the fourth quarter of 2020 compared to $19.2 million for the same period in 2019, which is associated with reduced dry-dockings and provision of technical services and increased crew repatriation expenses due to the COVID-19 pandemic in 2020. In more detail the changes were: i) spares, stores and provisions of $2.8 million for the fourth quarter of 2020, compared to $4.4 million for the same period in 2019, ii) repairs and maintenance of $0.8 million for the fourth quarter of 2020, compared to $1.5 million for the same period in 2019, and iii) dry docking expense of $0.1 million related to one partially completed dry docking during the fourth quarter of 2020, compared to $2.1 million related to five fully and one partially completed dry dockings for the same period of 2019, partly offset by the increase in crew wages, repatriation and related costs of $9.1 million for the fourth quarter of 2020 compared to $8.3 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 $0.1 million and $2.1 million for the fourth quarter of 2020 and 2019, respectively, vessel operating expenses decreased to $15.3 million for the fourth quarter of 2020 compared to $17.1 million for the same period in 2019, despite the increased crew repatriation 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 others do not include dry-docking expenses within vessel operating expenses costs and present these separately.

Depreciation: Depreciation increased by 8% to $13.9 million for the fourth quarter of 2020, compared to $12.9 million for the same period in 2019, as a result of the commencement of depreciation of environmental investments that were completed following the third quarter of 2019 and depreciation of the newbuild delivered during the second quarter of 2020.

Interest expense Interest expense decreased to $4.3 million in the fourth quarter of 2020 compared to $6.2 million for the same period in 2019, as a result of the decreased USD LIBOR12 affecting the weighted average interest rate of our loans and credit facilities.

Daily vessel operating expenses13: Daily vessel operating expenses, calculated by dividing vessel operating expenses by the ownership days of the relevant period, decreased by 22% to $3,978 for the fourth quarter of 2020 compared to $5,103 for the same period in 2019. Daily vessel operating expenses excluding dry-docking and pre-delivery expenses decreased by 13% to $3,955 for the fourth quarter of 2020 compared to $4,540 for the same period in 2019.

Daily general and administrative expenses14: Daily general and administrative expenses, which include management fees payable to our Managers14 and daily company administrations expenses, increased by 4% to $1,469 for the fourth quarter of 2020, compared to $1,414 for the same period in 2019, as a result of the increase of the management fees associated to the strengthening of the exchange rate of Euro versus USD, partly offset by the lower company administration expenses.

Balance sheet

Assets held for sale/Liabilities directly associated with asset held for sale As of December 31, 2020, we have classified the assets and liability directly associated with the vessel Paraskevi as assets held for sale and presented them on the balance sheet separately under current assets in the amount of $8.1 million, which represents the net book value of the vessel and other assets on board the vessel including its inventories, and liabilities directly associated with assets held for sale of $4.0 million, which represents the outstanding balance of the loan facility net of deferred finance charges.

____________________________________________12 London interbank offered rate.13 See Table 5.14 Safety 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.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(In thousands of U.S. Dollars except for share and per share data) Three-Months Period Ended Twelve-Months Period Ended December 31, December 31, 2019 2020 2019 2020REVENUES: Revenues 55,711 54,403 206,682 206,035 Commissions (2,465 ) (2,174 ) (8,921 ) (7,877 )Net revenues 53,246 52,229 197,761 198,158 EXPENSES: Voyage expenses (5,051 ) (4,716 ) (13,715 ) (41,582 )Vessel operating (19,249 ) (15,370 ) (68,569 ) (70,086 )expensesDepreciation (12,935 ) (13,874 ) (50,310 ) (54,269 )General andadministrative (5,332 ) (5,677 ) (20,639 ) (21,502 )expensesLoss frominventory (66 ) (241 ) (414 ) (241 )valuationEarly redelivery ? ? (63 ) ? costOperating income 10,613 12,351 44,051 10,478 OTHER (EXPENSE) / INCOME:Interest expense (6,174 ) (4,333 ) (26,815 ) (21,233 )Other finance (502 ) (174 ) (714 ) (641 )costInterest income 328 41 1,558 604 Loss on (121 ) (294 ) (121 ) (1,303 )derivativesForeign currency 219 425 (76 ) 916 gain/(loss)Amortization andwrite-off of (809 ) (402 ) (1,845 ) (1,726 )deferred financechargesNet income/(loss) 3,554 7,614 16,038 (12,905 )Less Preferred 2,878 2,878 11,498 11,500 dividendLess Mezzanineequity (104 ) 413 199 908 measurementNet income/(loss)available to 780 4,323 4,341 (25,313 )commonshareholdersEarnings/(loss)per share basic 0.01 0.04 0.04 (0.25 )and dilutedWeighted average 102,631,267 102,186,132 101,686,312 102,617,944 number of shares

Twelve-Months Period Ended December 31, 2019 2020(In millions of U.S. Dollars) CASH FLOW DATA Net cash provided by operating activities 58.3 63.4 Net cash used in investing activities (36.8 ) (34.8 )Net cash provided by/(used in) financing activities 8.5 (9.3 )Net increase in cash, cash equivalents and 30.0 19.3 restricted cash

SAFE BULKERS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)(In thousands of U.S. Dollars) December 31, December 31, 2019 2020ASSETS Cash and cash equivalents , time deposits, and 106,378 105,218 restricted cashOther current assets 29,611 21,459 Assets held for sale ? 8,057 Vessels, net 944,706 942,164 Advances for vessels 19,294 9,126 Restricted cash non-current 13,701 18,754 Other non-current assets 953 851 Total assets 1,114,643 1,105,629 LIABILITIES AND EQUITY Current portion of long-term debt 64,054 75,784 Liabilities directly associated with assets ? 3,983 held for saleOther current liabilities 22,730 24,948 Long-term debt, net of current portion 536,995 531,883 Other non-current liabilities 922 6,172 Mezzanine equity 17,200 18,112 Shareholders? equity 472,742 444,747 Total liabilities and equity 1,114,643 1,105,629

TABLE 4RECONCILIATION OF ADJUSTED NET INCOME/(LOSS), EBITDA, ADJUSTED EBITDA ANDADJUSTED EARNINGS/(LOSS) PER SHARE Three-Months Period Ended Twelve-Months Period Ended December 31, December 31,(In thousandsof U.S. Dollarsexcept for 2019 2020 2019 2020share and pershare data)Net Income/(Loss) - Adjusted NetIncome/(Loss)Net Income/ 3,554 7,614 16,038 (12,905 )(Loss)Plus Loss on 121 294 121 1,303 derivativesPlus Foreigncurrency (gain) (219 ) (425 ) 76 (916 )/lossPlus Early ? ? 63 ? Redelivery costPlus Loss oninventory 66 241 414 241 valuationAdjusted net 3,522 7,724 16,712 (12,277 )income/(loss)EBITDA - Adjusted EBITDANet income/ 3,554 7,614 16,038 (12,905 )(loss)Plus NetInterest 5,846 4,292 25,257 20,629 expensePlus 12,935 13,874 50,310 54,269 DepreciationPlusAmortizationand write-off 809 402 1,845 1,726 of deferredfinance chargesEBITDA 23,144 26,182 93,450 63,719 Plus Early ? ? 63 ? Redelivery costPlus Loss oninventory 66 241 414 241 valuationPlus Loss on 121 294 121 1,303 derivativesPlus Foreigncurrency (gain) (219 ) (425 ) 76 (916 )/lossADJUSTED EBITDA 23,112 26,292 94,124 64,347 Earnings per shareNet income/ 3,554 7,614 16,038 (12,905 )(loss)Less Preferred 2,878 2,878 11,498 11,500 dividend(Plus)/LessMezzanine (104 ) 413 199 908 equitymeasurementNet income/(loss)available to 780 4,323 4,341 (25,313 )commonshareholdersWeightedaverage number 102,631,267 102,186,132 101,686,312 102,617,944 of sharesEarnings/(Loss) 0.01 0.04 0.04 (0.25 )per shareAdjustedEarnings/(Loss) per shareAdjusted Net 3,522 7,724 16,712 (12,277 )Income/(Loss)Less Preferred 2,878 2,878 11,498 11,500 dividend(Plus)/LessMezzanine (104 ) 413 199 908 equitymeasurementAdjusted Netincome/(loss)available to 748 4,433 5,015 (24,685 )commonshareholdersWeightedaverage number 102,631,267 102,186,132 101,686,312 102,617,944 of sharesAdjustedEarnings/(loss) 0.01 0.04 0.05 (0.24 )per share

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 and Adjusted Net Income/Loss generally further eliminates from EBITDA and Net Income/(Loss) respectively the effects from loss on sale of assets, gain/(loss) on derivatives, early redelivery cost and gain/(loss) on foreign currency and loss on inventory valuation, 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. 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 Twelve-Months Period Ended Ended December 31, December 31, 2019 2020 2019 2020FLEET DATA Number of vessels at 41 42 41 42 period?s endAverage age of fleet (in 9.33 10.11 9.33 10.11 years)Ownership days^ (1) 3,772 3,864 14,965 15,266 Available days ^(2) 3,516 3,857 14,373 14,829 Average number of vessels 41.00 42.00 41.00 41.71 in the period^ (3)AVERAGE DAILY RESULTS Time charter equivalent $ 13,707 $ 12,319 $ 12,805 $ 10,559 rate^ (4)Daily vessel operating $ 5,103 $ 3,978 $ 4,582 $ 4,591 expenses ^(5)Daily vessel operatingexpenses excluding $ 4,540 $ 3,955 $ 4,257 $ 4,226 dry-docking andpre-delivery expenses ^(6)Daily general andadministrative expenses^ $ 1,414 $ 1,469 $ 1,379 $ 1,408 (7)TIME CHARTER EQUIVALENT RATE RECONCILIATION(In thousands of U.S.Dollars except for available days and Timecharter equivalent rate)Revenues $ 55,711 $ 54,403 $ 206,682 $ 206,035 Less commissions (2,465 ) (2,174 ) (8,921 ) (7,877 )Less voyage expenses (5,051 ) (4,716 ) (13,715 ) (41,582 )Time charter equivalent $ 48,195 $ 47,513 $ 184,046 $ 156,576 revenueAvailable days ^(2) 3,516 3,857 14,373 14,829 Time charter equivalent $ 13,707 $ 12,319 $ 12,805 $ 10,559 rate ^(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 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 February12, 2021 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 Dry-docking January February 2021 2021Koulitsa 76,900 2003 Japan Spot 100% BPI 74 5.00 % January March 2021 2021Paraskevi 74,300 2003 Japan Spot $ 7,842 5.00 % February March^19 2021 2021Vassos ^20 76,000 2004 Japan Spot $ 11,750 5.00 % January April 2021 2021Katerina 76,000 2004 Japan Period 97.5% BPI 74 5.00 % December June 2021 2020Maritsa 76,000 2005 Japan Period 97.5% BPI 74 5.00 % December October 2020 2021Efrossini 75,000 2012 Japan Period 101.5% BPI 74 5.00 % December October 2020 2021Zoe ^10 75,000 2013 Japan Spot $ 11,650 5.00 % September May 2021 2020Kypros $ 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 $ 9,951 5.00 % December MarchMerchant 2020 2021Pedhoulas 82,300 2006 Japan Period 98% BPI 82 5.00 % February AugustTrader 2021 2021Pedhoulas 82,300 2007 Japan Period 98% BPI 82 5.00 % December July 2021Leader 2020Pedhoulas 83,700 2008 Japan Period $ 9,950 5.00 % June 2020 June 2021CommanderPedhoulas 81,600 2012 China BuilderPedhoulas 81,600 2012 China Period^ 12 98% BPI 82 5.00 % December June 2021Fighter 2020Pedhoulas 81,600 2012 China Spot ^12 $ 21,000 5.00 % January MarchFarmer^ 5 2021 2021 Spot^ 11 $ 7,782 5.00 % November FebruaryPedhoulas 82,000 2015 China 2020 2021Cherry Spot^ 11 $ 22,250 5.00 % March March 2021 2021Pedhoulas 82,000 2017 China Period ^11 $ 13,750 5.00 % December May 2021Rose^ 5 2020Pedhoulas 82,000 2017 China Period $ 13,000 3.75 % August May 2021Cedrus^18 2020Post-Panamax Marina 87,000 2006 Japan Spot^12 $ 12,000 5.00 % February February 2021 2021Xenia 87,000 2006 Japan Spot^11 $ 12,200 5.00 % January February 2021 2021Sophia 87,000 2007 Japan Spot^11 $ 31,750 5.00 % February March 2021 2021Eleni 87,000 2008 Japan Spot^12 $ 14,000 5.00 % January February 2021 2021Martine 87,000 2009 Japan Spot^12 $ 11,250 5.00 % February March 2021 2021Andreas K 92,000 2009 South Korea Spot^11 $ 32,500 5.00 % February March 2021 2021Panayiota 92,000 2010 South Korea Spot ^12 $ 12,400 5.00 % January AprilK ^9 2021 2021Agios December AprilSpyridonas 92,000 2010 South Korea Spot^ 12 $ 10,750 5.00 % 2020 2021^9Venus January FebruaryHeritage ^ 95,800 2010 Japan Spot ^12 $ 15,000 5.00 % 2021 202110Venus February FebruaryHistory^ 95,800 2011 Japan Spot^12 $ 14,500 5.00 % 2021 202110Venus 95,800 2012 Japan Spot^11 $ 18,500 5.00 % January AprilHorizon 2021 2021Troodos 85,000 2016 Japan Period^12 $ 16,000 5.00 % February MaySun 2021 2021Troodos 85,000 2016 Japan Period^12 $ 11,500 5.00 % February MarchAir 2021 2021Troodos 85,000 2020 Japan Spot 109% BPI-82 5TC 5.00 % June 2020 May 2021Oak^ 14Capesize Mount BCI*103.5%+80% AprilTroodos ^ 181,400 2009 Japan Period SCR BNFT 5.00 % 2020 June 202116Kanaris 178,100 2010 China Period ^6 $ 25,928 5.00 % September September 2011 2031Pelopidas 176,000 2011 China Period $ 38,000 5.00 % January January 2012 2022Lake 181,400 2014 Japan Period^ 7 BCI * 119% 5.00 % February FebruaryDespina 2021 2022TOTAL 3,862,000 OrderbookTBN^17 82,000 1H Japan 2022TBN 87,000 Q3 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 daily charter 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 that provides 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 a pro 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 February12, 2021, the scheduled start dates. Actual start dates and redelivery dates may differ 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 the bareboat 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 remaining tenor of the time charter party.(7) A period time charter of 12 to 14 months at a gross daily charter rate linked to the Baltic Exchange Capesize Index (BCI'') times 119%. (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 commencing 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.(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 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.(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 of seven 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 daily gross 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 daily gross 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 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) The vessel will be sold and leased back upon Mezzanine Equity redemption in February 2021, 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.(19) The Company has enter an agreement to sell the vessel with expected delivery to her new owners in March 2021. (20) The Company has enter an agreement to sell the vessel with expected delivery to her new owners in April 2021.

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 StatementsThis 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