Safe Bulkers Inc (NYSE: SB), a provider of marine dry bulk transportation service globally, announced the acquisition of Kamsarmax class, 82,000 dwt, dry-bulk.
Focussing on renewing fleet: Safe Bulkers has agreed with the Japanese company to acquire newbuild vessel Kamsarmax class. The delivery of the vessel is expected to come by the end of 2023 (fourth quarter). As per the company, the newbuild vessel is expected to meet the latest Energy Efficient Design Index, thereby helping the company to reduce carbon emission (Green House Gas emission). In addition, the Kamsarmax class, 82,000 dwt, also complies with NOx-Tier III (latest NOx emission regulations).
Finance through internal accruals: Supported by the strong cash flows from the operations, Safe Bulkers Inc (NYSE: SB) will only fund this acquisition through internal accruals (Cash). Additionally, with the acquisition of the new Kamsarmax class fleet, the company’s total order book not stands at 5 EEDI (Energy Efficient Design Index) – Phase 3, NOx Tier III Japnese newbuild vessels. Of the five fleets, two of them are Kamsarmax, and the remaining three vessels are Post-Panamax.
Safe Bulkers Inc (NYSE: SB) continues to look to renew its fleet gradually and invest in most efficiently. Safe Bulkers focus on environmentally friendly assets, which don’t harm the surroundings and comply with Green Gas emission norms. The company uses all its fleet (Cargo) to transport iron ore (seaborne market), coal and grain, globally through a shipping route for the most prominent users globally. Given the strong order book, the earnings visibility is expected to increase once the delivery of the newbuild vessel comes on stream. It will lead to higher volume transportation, thereby supporting revenue, improving overall operating efficiency, and strengthening the Safe Bulkers balance sheet. A strong balance sheet is one of the fundamental reasons the company can fund the acquisition of environment-friendly assets through cash.