Surprise Loss
At $45.5 million, revenues were lower by 3% from the second quarter of 2018 but slightly above Wall Street’s prediction. The top-line was hurt by a decline in charter rates due to the weakness in the charter market.
Vessel Operation
On average, the company operated 41 vessels during the June-quarter, compared to 39.19 vessels last year. The time charter equivalent rate, which represents charter revenues net of commissions and voyage expenses divided by the number of days, dropped to $11,970 in the second quarter from $13,225 in the same period of 2018.
Related: Safe Bulkers Q1 2019 Earnings Call Transcript
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“In the first half of 2019 the charter market was weak with the BDI averaging 895. Since then the BDI has risen to an average of 1,904 for the 3rd quarter to date and as a consequence we are now entering into charters at much higher rates. We are on track with our environmental investments and about 25% of our planned scrubber installations were commissioned,” said Loukas Barmparis, president of Safe Bulkers.
Stock Plunges
Safe Bulkers’ shares have been trending below their long-term average for quite some time, and often traded below the $2-mark. The stock has lost 16% since the beginning of the year. It dropped about 7% during Tuesday’s extended trading, after closing the regular session higher.