Thank you for standing by, ladies and gentlemen. And welcome to the Safe Bulkers conference call to discuss the third quarter 2021 financial results. Today, we have with us from Safe Bulkers, Chairman and Chief Executive Officer, Mr. Polys Hajioannou, President, Dr. Loukas Barmparis and Chief Financial Officer, Mr. Konstantinos Adamopoulos. At this time, all participants are in a listen-only mode. There will be a presentation followed by question-and-answer session. [Operator Instructions] Following this conference call, if you need any further information on the conference call or on the presentation, please contact Capital Link at 212-661-7566. I must advise you, this conference is being recorded today. Before we begin, please note that this presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended., concerning future events, the company's 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, which are inherently subject to significant uncertainties and contingencies, 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 company's filings with the Securities and Exchange Commission. The company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. And now, I pass the floor to Dr. Barmparis. Please go ahead, sir.

Good morning to all. I am Loukas Barmparis, President of Safe Bulkers. Welcome to our conference call and webcast to discuss the financial results for the third quarter of 2021. We are happy to report that our profitability has increased during the third quarter 2021 compared to the previous quarter. As seen that as we move to year end, we are gradually nearing our targeted leverage, maintaining a healthy liquidity position and making significant progress on our fleet renewal strategy. We have also begun contracting period time charters to provide better visibility to our future cash flows. The above are presented in more detail in slide number four. We reached $92.5 million in net revenues, $72.4 million of EBITDA and $0.40 of adjusted earnings per share. We have on order eight newbuilds, the Green House Gas EEDI Phase 3, NOx-Tier III compliant, from Japanese shipyards with early deliveries, two in 2022, four in 2023 and two in first quarter of 2024 at very competitive prices ahead of our competition. At the same time, we have sold seven vessels, two of which are yet to be delivered with $37.3 million outstanding sales process and $7.3 million outstanding debt. And we have acquired four secondhand, one of which yes to be delivered with $28.1 million outstanding CapEx. We believe that by 2024, we will be able to renew about one fourth of the fleet with Phase 3 compliant newbuilds while substituting at the same time some older vessels with younger secondhand vessels. In terms of deleveraging, we have a $214.3 million decrease in debt from $616.2 million as of 2020 year-end to $401.9 million as of Oct. 29, 2021. At the same time, we maintain our financial flexibility by preserving a healthy cash position of $92.2 million, $88.9 million in undrawn borrowing…

Thank you Loukas and good morning to everyone. Let me start with our chartering performance in slide 14, where we present our quarterly PCE, which stood at $24,427 per day versus our quarterly OpEx which stood at $4,608 a day. Moving on to slide 15, we present our quarterly daily OpEx of $4,608 and our quarterly daily G&A, which stood at $1,590. The average figure for both OpEx and G&A for Q3 2021 was $6,198, demonstrating our focus on lean operations. We believe that this number is one of the industry's lowest, if not the lowest, given the fact that we include in our OpEx all our drydocking and pre-delivery expenses and in our G&A, our management fees and directors and officer compensation and all expenses related to our administration of [indiscernible]. Moving to debt profile, as seen in slide 16. We present our repayment schedule as of September 30, 2021. As of that date, we had $108.6 million in cash and cash equivalents backed by deposits and restricted cash, $88.9 million in undrawn borrowing capacity available under revolving reducing credit facilities and $46.2 million in secured commitments for loan and sale and leaseback agreements in the relation to two newbuild vessels. Furthermore, excluding the two vessels that are committed for sale, which have not be delivered yet, we have additional borrowing capacity in relation to three debt-free existing vessels and six newbuilds upon their delivery. In slide 17, we present our debt amortization schedule versus the scrap value of our fleet. We have a smooth debt payment profile for the next two years, gradually deleveraging our company following considerable debt repayments we have made in the previous quarters. Let's now move to slide 18 with our quarterly financial highlights for the third quarter of 2021 compared to the same…

[Operator Instructions]. We will now take the fast question. This is from the line of Chris Wetherbee from Citi. Please go ahead.

James Monigan, on for Chris. Hi guys. Good morning.

Hi. Good morning.

Hi.

I just wanted a better understanding of your view around sustainability at the current rate and also vessel values. Just vessel values have obviously come up off the bottom. But just how much of that do you think is driven by the --

Can you go bit slower?

I am sorry guys.

Yes, better.

Yes. I just wanted to ask first off about vessel values. The have obviously come up off the bottom which is good to see. But like how much of that do you think is driven by the input prices versus stronger sort of market sentiment around your longer term outlook. I am just trying to get your understanding of where you think sort of the perception of like the long term -- [indiscernible] long term in the market at the moment?

Yes. The sound is very bad. So we didn't get the question. But anyway, I presume you are asking about the long term prospects of the markets?

And it get reflected in the vessel values or reflects just essentially commodity pricing in the vessel value at the moment.

Look, the commodity prices are only recent. We see that there is demand for commodities because recently we have seen drops in coal prices with Chinese government intervention to cool down that part of the market. And iron ore price as well have slowed down in the last two months because of reducing the steel output for environment reasons before the Olympics. I think overall the demand for commodities, especially the minor ones is very healthy. And we see it from the rates that are being enjoyed by this smaller size of vessels but since, Handysize and Supramaxes as well as Panamaxes that the demand is very strong. So we believe commodities, including oil, will be kept at strong levels. And most likely only prices also will increase further.

Got it. But just given sort of the strength of the market, it seems that the vessel values aren't necessarily reflecting --

Please, sorry. There is [indiscernible] in your sound which makes is very difficult. So please speak slowly.

I will turn the call. I will follow-up separately and just turn the call over so that someone else can ask questions given the difficulty.

Thank you. We will move to the next question. And the next is from the line of Magnus Fyhr from H.C. Wainwright. Please go ahead.

Yes. Good afternoon. This is Magnus Fyhr from H.C. Wainwright. Just you secured some time charters here in the last year and also you have been pretty active in the S&P market. With the current volatility and some uncertainty going forward, do you see more opportunities for you to potentially secure time charters or potentially make acquisitions? Or do you think the volatility has created less opportunities?

Look, the last a couple of weeks, the market has been very strong lately. We have seen big volatility which also resulted from big increase of Capesize rates approaching $100,000 a day. So there has been a correction that is looking as huge. Of course, if we would exclude these extra $30,000, $40,000 achieved on the Capes for two or three weeks in the spot market, the rest of the market, we can say that has been fairly stable because we still enjoy after the correction rates of around $30,000 a day on all class of vessels. So for us, this is healthy market and it is good that we have a correction and we call it a correction when the market reaches $30,000 a day. So I don't expect ship prices to be affected by this volatility because owners of vessels, they are not going to let them cheaply, because they have seen what earnings you can make in the last nine months. And right now you see it other sector which they have very low freight rates that ship prices are going up for many reasons. One of them is the steel prices and other one is expectations that the market will change in other sectors. We have seen what is happening on the containerships in the container market. Also drybulk marked is really healthy and very strong. I don't expect there are surprises to correct to give us opportunities to step in and buying vessels like in the first quarter of 2021. So I guess it may not go higher but I don't expect them to go down.

Okay. So from a capital allocation standpoint, your balance sheet looks very good. You are going to generate a lot of cash flow here at current market rates. What is the priority going forward? Reduce debt or potentially buyback stock or some kind of dividend to shareholders?

If we see on page 17, we put the projection of the debt for the end of the yea and for the following couple of year which shows exactly that deleveraging policy, our deleveraging policy, will almost be ended by the yes. And then we will go to the formal principal repayments. So the debt will be about $350 million next year compared to the scrubbed value of the vessels which is $378 million according to the pricing today of the fleet. This makes us to fee very comfortable about the leverage of the company because the debt that we have basically reflects what is the sale value per vessel. Having done that and also having completed the renewal strategy in terms of ordering, what we have ordered most of what we could do. And in terms of secondhand vessels, there might be some opportunities still. However we have done the big volume. I think in terms of CapEx and in terms of leverage priorities are becoming lower. So the new cash that is generated in the future, I think will give opportunities in the next year also to be able to reward our shareholders. However we need to point out two things. We want to be to building our cash flows which can be established through time charter and we want the markets to continued to be in comfortable levels as it is, let's say, today.

Okay. So you have done a couple of three-year charters. Is there an appetite there for more of those from your side and from the charter side?

Look, these charters were available in early October when the freight market was hitting levels of $50,000, $60,000 per day on the Capes. So charters came along with these proposals with these charters. We considered it prudent to secure this business at that time. So right now, we don't see three-year charters available because of the recent volatility of the last weeks. But I am sure that this will come back in the market when things settle down. As I said before, spot market of around $30,000 n all sectors is not an uncertain market. And we wish this stays for the whole of next year.

Yes. I hope so too. That's all I had. Thanks for answering my questions.

Thank you.

Thank you.

Thank you. We will now take the next question. This is from the line of Randy Giveans from Jeffries. Please go ahead.

Hello gentlemen. How is it going?

Hi. I am fine.

All right. So I guess just following up on some of the recent refinancings, what is now your kind of expected interest expense and maybe weighted average interest rate for next year and then your debt amort for 2022?

Debt amortization, I think, we are showing on slide number 16. Basically, we have very low interest rates. As you know, we have kept it short at very good levels, almost 85% of all of our debt. So we are immune against a probable increase of interest rates. We have 84% on telematics maturing some of that up to 2026. So I think that the numbers are very comfortable for next year. The principal repayment is only $35 million which is increased in 2023 to $63 million. So we understand that these are very comfortable numbers of the company. So the exact calculation, we can send it to you after this call. On page 16, if you see page 16, you can follow-up the numbers.

Got it. Okay. And then just for the remainder of the ATM, I think there's $28.5 million remaining. Do you plan on using this eminently? And how is that decision made? Is it based on a kind of NAV basis? What would be reason to or not to further execute that ATM?

Look, we execute the ATM from time to time. We don't necessarily do the ATM continuously or at any price. So you may see us coming out in the market and sell some portion. We have started the ATM last year and this continuation figure is substantial amount of, as you said, about $25 million which we have not executed. We don't know exactly, based on the market conditions and the pricing of the stock and how well we perform, because we really have the cash liquidity and cash reserve. And we don't feel in a rush to execute the ATM at any price.

Got it. Well, that's it for me. Thanks so much.

Thank you.

Thank you. [Operator Instructions]. There are no further questions coming through, sir. We have one question. One moment, please. Our question has been withdrawn. In that case, there are no further questions and I will hand back to the speakers now. Thank you.

Thank you to all. And we are very happy to discuss again with you today. And we are looking forward to discuss again once more in our next quarter for our results. Thank you and have a nice day.

Thank you. That does conclude the conference for today. Thank you for participating and you may now disconnect.