Safe Bulkers, Inc. (NYSE:SB) Initiates Share Repurchase Program Despite Depressing 3Q2015


Safe Bulkers, Inc. (NYSE:SB) has announced that it would be initiating a share repurchase program, targeting preferred shares of series B, C and D. The company has allocated a total of $20 million for this purpose. The move is expected to save the company from liquidation and lower the number of outstanding shares in the company. Additionally, the company had recently announced its 3Q2015, reporting a decrease of 8% in revenue, on a year-over-year basis. Furthermore, the company also reported a net loss of $7.5 million, compared to net gain of $1.5 million.

As of now, Safe Bulkers has 1.6 million outstanding series B shares, 2.3 million outstanding series C shares and 3.2 million outstanding series D shares. The company expects to reduce these numbers by 8%, by the end of the program. However, SAB management has announced that all transactions concerning the share repurchase program would be conducted in the open market. Additionally, the company would be using the existing cash resources to cover the costs of the program.

SAB had earlier updated its investors on the developments made during the 3Q2015. The company had acquired a new vessel and used it for a short-period charter. Additionally, SAB had also entered into a sale and leaseback agreement with a bank for four of its existing vessels. This had helped the company in generating proceeds of $92.1 million. The amount was later used for settling debts and allowing for liquidity worth $46.5 million. Furthermore, the company lost a 10-year charter contract with Daiichi Chu, for an average daily charter of $15,400. The vessel was later employed in the spot market. Finally, the company also revealed that it is expected to receive a total of eight additional vessels to its fleet. President of BAS, Dr. Loukas Barmparis, blamed the depressed market conditions in the dry bulk sector for the losses his company incurred during the 3Q2015.

Safe Bulkers, Inc. (NYSE:SB) lost 5.47% of its share value during the December 3 session, to reach a close at $1.21. The stock experienced a trade volume of 188,194 during the session.

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